gauteng province · in other words, once the gic is in operation, investors will knock on only one...

ECONOMIC DEVELOPMENT REPUBLIC OF SOUTH AFRICA

GAUTENG PrOVINCE

Gauteng Department of Economic DevelopmentVote 3

In terms of the Public Finance Management Act, Rule 9.4 (1) of the Gauteng Legislature Standing Rules

PR171/2013 ISBN: 978-0-621-41953-5

AFCON – African Cup of NationsAIDC – Automotive Industry Development CentreAIS – Automotive Investment SchemesALLS – Automated Liquor Licensing SystemAPDP – Automotive Production Development ProgrammesASP – Automotive Supplier ParkAWESOME – Alternative Waste to EnergyBBBEE – Broad-Based Black Economic EmpowermentBBC – Buy Back CentreCAP – Co-operative Assistance ProgrammeCoJ – City of JoburgCONHILL – Constitution HillCSIR – Council for Scientific and Industrial ResearchDDI – Domestic Direct InvestmentDOC – Department of Communicationsdti – Department of Trade and IndustryECO – Environmental Control OfficerEEIA – Existing Environmental Impact AssessmentEIAs – Environmental Impact AssessmentsEMDP – Emerging Management Development ProgrammeEOI – Expression of Interest FAB LAB – Fabrication LaboratoryFDI – Foreign Direct InvestmentGAP – Gauteng Accelerator ProgrammeGCR – Global City RegionGDARD – Gauteng Department of Agriculture and Rural DevelopmentGDED – Gauteng Department of Economic DevelopmentGDF – Gauteng Department of FinanceGDID – Gauteng Department of Infrastructure DevelopmentGDRT – Gauteng Department of Roads and TransportGEDA – Gauteng Economic Development Agency GEGDS – Gauteng Employment, Growth and Development StrategyGEP – Gauteng Enterprise PropellerGFA – Gauteng Funding Agency GGB – Gauteng Gambling BoardGGDA – Gauteng Growth and Development AgencyGIC – Gauteng Investment CentreGIPF – Gauteng Industrial Policy FrameworkGPG – Gauteng Provincial Government

HET – Heritage, Education and TourismIBC – Integrated Business ServicesICT – Information and Communications TechnologyIDZ – IDZ Development CompanyIDZ DEVCO– Industrial Development ZoneIEDS – Integrated Economic Development ServicesILO – International Labour OrganisationIMF – International Monetary FundIPAP – Industrial Policy Action PlansITES – Institute of Technical Education ServicesIWEX – Industrial Waste Exchange ProgrammeJCSA – Jewellery Council of South AfricaLPG – Liquid Petroleum GasMBPDP – Master Blue Print Development PlanMFMA – Municipal Finance Management ActMoU – Memorandum of UnderstandingMTEF – Medium Term Expenditure FrameworkNGOs – Non Governmental OrganisationNGP – New Growth PathNPW – National Department of Public WorksNSA – Nissan South Africa (PTY) LtdPAIA – Promotion of Access to Information ActPAJA – Promotion of Administrative Justice ActPFMA – Public Finance Management ActPPP – Private Public Partnership PPPFA – Preferential Procurement Policy Financial ActRFP – Request for ProposalRFQ – Request for QuotationSAPS – South African Police ServiceSCD – Supply Chain DevelopmentSCM – Supply Chain ManagementSIPF – Shared Industrial Production FacilitySMMEs – Small Medium and Micro EnterprisesSMS – Senior Management ServicesSPDC – Supplier Park Development CompanyTIH – The Innovation HubTIHMC – The Innovation Hub Management CompanyVIC – Visitor Information CentreVUT – Vaal University of Technology

LIST OF ABBREVIATIONS

2 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | ANNUAL REPORT 2012/13

SECTION 1: EXECUTIVE SUMMARY

1.1 Foreword

1.2 Overview of department’s performance by the HOD

SECTION 2: DEPARTMENTAL OVERVIEW

2.1 Mandate of the department

2.2 Public entities for which the MEC is responsible:

2.3 Constitutional, national and provincial legislative mandates

2.4 Good governance and legislative responsibilities national, provincial and

local government

SECTION 3: ORGANISATIONAL SYSTEMS AND RESOURCES AGAINST THE DELIVERY OF SERVICES3.1 Voted funds

3.2 Aim of the vote

3.3 Vision, mission and strategic goals

3.4 Core functions of the department

3.5 Organisation of the department

SECTION 4: REPORT ON THE PERFORMANCE OF PROGRAMMES AGAINST THE APPROVED PLANS4.1 Programme 1: Administration

4.2 Programme 2: Integrated economic development services

4.3 Programme 3: Trade and sector development

4.4 Programme 4: Business regulations and governance

4.5 Programme 5: Economic planning

SECTION 5: DED FINANCIAL REPORTING

SECTION 6: LIQUOR BOARD FINANCIAL REPORTING

SECTION 7: HUMAN RESOURCE OVERSIGHT REPORT

SECTION 8: OUTLOOK FOR THE COMING YEAR

SECTION 9: OTHER INFORMATION

9.1 Legislation produced and administered by the department

9.2 References/sources used accounting for the success rates/failures of the department

9.3 Access to information

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3GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | ANNUAL REPORT 2012/13

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GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | EXECUTIVE SUMMARY


1.1 FOrEWOrD

According to the 2013 Mid-year estimates, Gauteng remains the most populous province in South Africa. The estimates indicate that our population has increased from 23,7% of the national proportion as stipulated in Census 2011 to 24% in 2013.

This increase in our population places a heavy burden on our shoulders as government. The late Gauteng MEC for Economic Development, Nkosiphendule Kolisile, was fully cognizant of the pressures that this reality presented. Sensible of these challenges, the Gauteng Department of Economic Development, under the leadership of the late MEC Kolisile set out to achieve the following broad objectives:

Promoting trade and investment; Developing strategic economic infrastructure; Driving the re-industrialisation of the economy to support the

growth of labour intensive industries; Building an innovative and knowledge-based economy; and Strengthening green economy interventions to support

sustainable economic growth and development.

These priorities are indicative of the Gauteng Provincial Government’s commitment to overcoming the triple challenges of poverty, unemployment and inequality through the large-scale creation of decent work opportunities, enhancing the inclusivity of the Gauteng economy and propelling the province into a globally competitive CityRegion.

Although these are testing times for the global economy, Gauteng’s position as a leader of growth, employment and development in South Africa remains unparalleled.

With the exception of agriculture, Gauteng contributes the highest percentage share in almost all sectors of the South African economy including manufacturing, construction, trade, finance and mining.

Over and above this, Gauteng’s 34.5% contribution to South Africa’s GDP is second to none in the country. Gauteng also ranks high as an economic force in the African continent.

The size and performance of Gauteng’s economy is also linked to the province’s good record of service delivery and its ability to attract investment and create jobs on a massive scale.

Gauteng’s ability to cater for the biggest concentration of people in the entire country gives full expression to our belief that “dynamite comes in small packages”.

Nonetheless, we are fully cognizant of the fact that Gauteng’s status as South Africa’s biggest economy is not preordained. As a province, we should work tirelessly to maintain this position.

The Gauteng Investment Centre (GIC) is a cardinal element of our strategy to lure investors to the province. The GIC will have the following responsibilities:

Reduce the cost and time associated with doing business in Gauteng; Produce an electronic opportunity atlas for investors who wish

to plough their resources in various regions of the province; Be an information portal for investors who wish to take

advantage of some of the incentives that are on offer; and Harness the export readiness of Gauteng based businesses.

In other words, once the GIC is in operation, investors will knock on only one door to address all their needs instead of being sent from pillar to post, costing them valuable time and resources.

In the same vein, the key to maintaining Gauteng’s position as a preferred destination for investment lies in the generation of increased inward investment and the simultaneous promotion of export opportunities for Gauteng based businesses.

The Gauteng Growth and Development Agency (GGDA) is an important lever to our job creation machinery.

We have the task to ensure that efforts aimed at facilitating investment, especially in labour intensive sectors, are accelerated.

In view of this, the GGDA facilitated several foreign and direct investments in various sectors including steel beneficiation, auto components manufacturing, and food processing and pulp and paper manufacturing.

Small businesses are a critical element of our job creation, wealth sharing and poverty alleviation strategies. The support provided by the Gauteng Enterprise Propeller (GEP) to assist small businesses and cooperatives is important for creating new jobs in our economy and protecting existing ones.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT EXECUTIVE SUMMARY

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Attention for the 2013/14 financial year will also be firmly on intensifying GEP’s efforts towards creating market linkages for small businesses and cooperatives through partnerships as well as exhibitions and expos. Work on non-financial interventions such as business development support, mentorship, training and incubation must also continue.

By the same token our economic interventions must also cast the net wider to cater for the informal sector. Our definition of an inclusive economy is one that seeks to address informal traders, who are among the most marginalised workers in the province.

Equally important is the crisis of youth unemployment. Our youth employment strategy rests on four pillars: youth entrepreneurship development and training; township enterprise hubs; youth placement and skills development. During the 2013/2014 financial year, the department will focus on increasing the number of Township Enterprise Hubs.

These hubs will provide shared manufacturing facilities, training, incubation and support for small businesses.

We will also work tirelessly and accelerate youth placement and skills training for young people in a variety of fields.

Gauteng’s economy must grow and garner enough strength to provide jobs and sustainable livelihoods to millions and millions of people who call this province their home.

This is the stern reality that we must always bear in mind and use as a compass as we navigate the governance terrain.

We must also be mindful that lofty plans that are not accompanied by committed action will remain only paper tigers.

Implementation ultimately determines the extent of our reach in breaking down the frontiers of poverty, empowering communities and building a better life for all.

We must, true to the spirit of the late MEC Kolisile, continue to be advocates of a growing and inclusive economy that creates decent jobs and sustainable livelihoods for the people of Gauteng.

Mxolisi Eric Xayiya,Member of the Executive Council: Economic Development


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1.2 OVErVIEW OF DEPArTMENT’S PErFOrMANCE BY THE ACTING HOD

It is my pleasure to present the 2012/13 Annual Report of the activities of the Gauteng Department of Economic Development.

The Department’s mandate and goal remains constant, to cultivate and foster a favourable economic environment that creates sustainable jobs and promote rapid economic growth to address the triple challenge of poverty, joblessness and inequality. In the year under review the Department did not deviate from its core business, albeit, not without challenges.

Budget

The Department capitalised on the financial controls foundation firmly put in place in spending 99.9% of its allocated budget, of the R874.4m allocated, R873.4m was spent. Proper and supervised spending in line with the Public Finance Management Act, 1999 was towards planned priorities and prescribed needs.

Mergers

In the course of this financial year the Department concluded the merger of Blue IQ Investment Holdings and the Gauteng Economic Development Agency into the Gauteng Growth and Development Agency. This is a significant milestone to advance and enable focused economic development. The merger of the Cradle of Humankind and Dinokeng was also realised presenting the Department the opportunity to strengthen tourism development in the province. Furthermore and in line with the Provincial Executive Committee’s commendation, the Gauteng Film Commission was migrated to the Department of Sports, Recreation, Arts and Culture.

Sustainable Job Creation

In the domain of job creation, the Department directly and indirectly generated a substantial number of jobs in various industries including the motor industry and funding of Small Medium and Micro Enterprises (SMMEs) and Co-operatives through its Agencies. The unyielding commitment from business, to a great extent, amplified the Department’s efforts to respond to sustainable job creation in the province. The Department continues to device and implement ground breaking programmes to transform the economic landscape in the province.

Skills Development

The last few years were punctuated by the global economic recession and uncertainty that saw a major shift in desirable skills. In response to these challenges and while mindful of the long term impact in terms of sustainable job creation, the Department facilitated various scarce and critical skills development programmes to equip aspirant entrepreneurs and job seekers.

In the year under review, the Department oversaw a number of tailored training programmes including financial and non-financial interventions, mentoring and business development support benefiting the youth, women and people living with disabilities.

Moreover, these programmes enabled the Department to facilitate the placement of young people who received work readiness training into permanent and temporary jobs.

In spite of the resurgence of economic instability in European financial markets, the Department is confident and optimistic that the acquisition of scarce and critical skills will foster long-term growth for the province.

Township Enterprise Hubs

The Automotive Industry Development Agency (AIDC) is overseeing the development of the Winterveldt Enterprise Hub, which commenced in the last quarter of the year under review. The Department planned to establish at least six enterprise hubs, regrettably due to funding constraints the additional five will be built in the new Medium Term Expenditure Framework.

The hubs will be the central point for communities to access training, business support and mentoring, a direct response to the call to resuscitate township-based businesses. Despite financial constrains that punctuated some of the Department’s activities, the Department is making strides towards attaining the objectives duly assigned to it.

Intergovernmental Structures and Relations

Collaborating and joint planning cannot be overemphasised particularly in calamitous economic times, in this regard, the Department held bilateral meetings with the City of Johannesburg, Tshwane, Ekurhuleni Metro and the West Rand District, to advance and strengthen the desired Smart City model. The Department has since signed a Memorandum of Understanding (MoU) with Ekurhuleni Metro, and will finalise the rest in the new financial year.


The MoUs serve as a guiding framework for identified joint projects to be undertaken to ensure an integrated and inclusive plan of action.

This model will be extended to State-Owned Entities in the new financial year to maximise government’s efforts in addressing the triple challenges of poverty, unemployment and inequality.

Business Partnerships

The Department, in an endeavour to advocate for sustainable economic growth, engaged and worked with a number of business organisations through mutually beneficial partnerships towards implementing some of its projects and programmes. In conclusion, I would like to extend my sincere appreciation to the senior management team for their dedication and leading their respective teams in delivering the phenomenal work of the Department. The CEOs of Agencies worked tirelessly and brought considerable insight to propel the ideals of an equitable economy for the people of the province. I am grateful to MEC Nkosiphendule Kolisile whose boundless energy and optimism; constant and unrelenting guidance is highly valued.

Finally, I would like to extend my sincere appreciation to all our stakeholders for their support in enabling the Department to change the lives of ordinary citizens of Gauteng.

Albert Chanee, Acting Head of Department: Economic Development


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GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | DEPARTMENTAL OVERVIEW


2.1 MANDATE OF THE DEPArTMENT

The mandate of the Gauteng Department of Economic Development is to facilitate, promote economic growth and development in the province, with a targeted commitment to focus on enhancing inclusivity of the economy, while not neglecting to improve its competitiveness.

2.2 PUBLIC ENTITIES FOr WHICH THE MEC IS rESPONSIBLE:

Gauteng Enterprise Propeller Gauteng Gambling Board Gauteng Growth and Development Agency Gauteng Tourism Authority, Cradle of Humankind and Dinokeng

Merger of Entities

In the financial year under review the Blue IQ Investment Holdings and Gauteng Economic Development Agency (GEDA) were merged to establish the Gauteng Growth and Development Agency (GGDA). The merger followed the approval of the amendment of Blue IQ Investment Holdings (Proprietary) Limited Amendment Act, 2012 by the Gauteng Provincial Legislature. The mandate of GGDA is to:

Enable economic development that is focussed on creating sustainable jobs; To drive provincial growth and domestic products, employment

rates and also to Support development of key sectors of the economy in line with

established economic and industrial policies of the province.

The Department initiated a process to merge the Dinokeng and Cradle of Humankind into the Gauteng Tourism Authority. The merger was motivated by firstly the realisation that the two trading entities; namely. Dinokeng and Cradle of Humankind have reached concluding phase since they were established. The Dinokeng has been launched while the Cradle of Humankind has been operating for sometime. Secondly, the merger will afford the Department an opportunity to promote tourism development through the consolidation of tourism offerings in the province.

In the financial year under review the Gauteng Film Commission was migrated from the Department of Economic Development to the Department of Sports, Recreation, Arts and Culture following the Provincial Executive Committee decision to align the development and growth of the Creative Industries in the province.

Trading Entity

The Gauteng Liquor Board

2.3 CONSTITUTIONAL, NATIONAL AND PrOVINCIAL LEGISLATIVE MANDATES

In terms of Schedule 4 (Part A) of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), provinces have concurrent legislative competence with the National Government in respect of, inter alia, urban and rural development. Schedule 4 (Part B) provides for provincial and national legislatures to have concurrent legislative competence in respect of local government matters such as municipal planning. In terms of Schedule 5 (Part A), provinces have exclusive legislative competence over provincial planning. Section 154 provides that the national and the provincial governments, by legislative and other measures, must support and strengthen the capacity of municipalities to manage their own affairs, to exercise their powers and to perform their functions.

The South African Constitution requires that all spheres of the government work together to address poverty, underdevelopment, marginalisation of individuals and communities and other legacies of apartheid and discrimination.

There are certain related and relevant acts and policies in addition to the Constitution that provide the provincial government with its mandate and specifically guide the Gauteng Department of Economic Development as it executes its mandate.

These selected Acts and Policies are listed below and are in the sections on national and provincial legislations: Public Finance Management Act (PFMA), 1999 Promotion of Access to Information Act, (PAIA) 2000 Employment Equity Act, 1998 National Records and Service Act, 1996 Promotion of Administrative Justice Act (PAJA) (No 3),

2000 Batho Pele Principles

National Legislative Mandate

Credit Agreements Act, 1980 Business Act, 1991 Public Service Act, 1994 Public Service Regulation, 2001 Sale and Service Matters Amendment Act, 1995 Skills Development Act, 1998 World Heritage Convention Act, 1999 Administration of Justice Act, 2000 Preferential Procurement Policy Framework Act, 2000 Municipal Finance Management Act (MFMA), 2004 Convention Concerning the Protection of the World Cultural and

Natural Heritage (adopted by the General Conference UNESCO on 16 November 1972 and by the RSA on 10 July 1997) National Environmental Management:

Protected Areas Act, 2003 Local Government: Municipal Systems Act, 2000

(Act No. 32 of 2000)

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Less Formal Township Establishment Act, 1991 (Act No. 113 of 1991) Development Facilitation Act, 1995 (Act No. 67 of 1995)

Provincial Legislative Mandate

Gauteng Gambling Act, 1995, 1996, 2001 Gauteng Unfair Business Practices Act, 1996 Gauteng Tourism Act, 2001 Gauteng Liquor Act, 2003 Intergovernmental Fiscal Relations Act, 1997 Town Planning and Townships Ordinance, 1986

(Ordinance 15 of 1986) Gauteng Removal of Restrictions Act, 1996

(Act No. 3 of 1996) Sales and Service Matters Amendment Act, 1995 Municipal Systems Act, 2000 Broad Based Black Economic Empowerment Act, 2003 Companies Act, 1973, as amended 2009 Building Regulations Act, 1995 Intergovernmental Relations Framework Act, 2005

(Act No. 13 of 2005)

Provincial Policy Imperatives and Priorities

2009-2014 Election Manifesto Medium Term Strategic Framework (MTSF) Global City Region (GCR) Perspective:

The GCR aims at building Gauteng’s future as that of an integrated and globally competitive region where the economic activities of different parts of the province complement each other in consolidating it as an economic hub of Africa and an internationally recognised global city region. Gauteng Employment, Growth and Development

Strategy (GEGDS): The strategy is a comprehensive document that incorporates the election manifesto, policies and strategies. It identifies areas and sectors that should be prioritised to propel socio-economic growth and development in the province. It outlines specific provincial commitments to attain National government’s goal of halving unemployment by 2014.

Key Policy Developments

In the financial year under review, the Department continued to align with national government policies and strategies outlined hereunder with the aim to develop the new industrial path trajectory:

The New Growth Path (NGP), which is meant to redirect the country towards high growth trajectory underpinned by job creation. The NGP has identified key job drivers that must be stimulated in order to move the country towards the stated objective.

The Special Economic Zone Policy and Bill, which is a departure from the current Industrial Development Zone Framework, which had a narrow focus on export oriented production. The Policy is meant to be the vehicle for industrial interventions in the regions by providing an environment that will reduce the cost of doing business thereby enhancing the competitive advantage of regions. The National Procurement Regulations, which came into effect

on the 7th December 2011, seeks to foster change in procurement practices within South Africa. The change in procurement behaviour would ensure that Small, Medium and Micro Enterprise’s (SMME’s), especially those from the historically disadvantaged, and the manufacturing sector at large would receive favourable consideration when producing certain types of products, which have been designated.

The Gauteng Provincial Government developed and approved the Gauteng Employment Growth and Development Strategy (GEGDS) 2009-2014 in 2010. The strategy identified employment as the key focus area of the GEGDS with the aim to alleviate poverty and ensure equitable economic growth. The provincial departments aligned all their policies and strategies with an element of creating jobs in response to this strategy and where necessary, redesigned to directly target employment creation. To expedite the implementation of programmes and projects, it was necessary to align all the three spheres of government and work in collaboration with their implementing agencies.

In the period under review, a number of supporting strategies aligned to the NGP, the Industrial Policy Action Plans (IPAP2) and Gauteng Industrial Policy Framework (GIPF) were reviewed and developed, this include among other existing policy frameworks:

The Gauteng Trade and Investment Gateway Strategy: The strategy is meant to enhance Gauteng as the factory for exported goods and services for Southern Africa and the rest of the African continent. It means that Gauteng becomes a platform for investors who want to produce for the bigger African markets, given its advantage in productive infrastructure, financial hub, centre for Research and Development.

This strategy is a guide to Gauteng Growth and Development Agency on its trade and investment promotional activities in the African continent.

The National Electric Vehicle Strategy 2011: The Department reviewed for the Department of Trade and Industry on the critical success factors that must be in place for this sub-sector to take off. The Cooperative Strategy of 2009: The Department has also reviewed the strategy to measure the impact of interventions by government in the cooperatives sector with the view to shape the plans as per the needs of the sector. The review makes recommendations that if adhered to, can improve the performance of the cooperatives and increase the impact of the interventions by government institutions.


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Key actors Function

Branch /Chief Directorate /Directorate

Monitored by Mechanism

Member of Executive Council

Executive authority of the Department

Political accountability to the Legislature and public

Policy direction and provide strategic leadership

Appeals authority

Inter-governmental collaboration

Premier/ Executive Council/ Legislature

Strategic and budget prioritiesAnnual reportsBudget speech

2.4 GOOD GOVErNANCE AND LEGISLATIVE rESPONSIBILITIES

2.4.1 Intergovernmental Structures and Relations

During the 2012/13 financial year, the Department held both Technical and Political IGR Committee meetings in each quarter of the financial year. Over and above the Technical and the Political Committee meetings, bilateral meetings were held with the following municipalities:

City of Johannesburg; City of Tshwane Metropolitan Municipalities; West Rand District (including its Local Municipalities); and Ekurhuleni Metropolitan Municipalities.

The outcome of these bilateral engagements was to identify areas of collaboration that would culminate to a Memorandum of Understanding (MoU) with each municipality. A MoU with Ekurhuleni Metropolitan has been finalised and signed. All other outstanding MoU with other municipalities still have to be finalised. The MoU’s will serve as a guiding framework within which the implementation of the projects or programmes that would have been identified will be undertaken.

The Department will continue with both the technical and political engagements to forge partnerships with all metropolitan and two district municipalities in Gauteng. The primary objective would be to ensure that an integrated and inclusive joint programme of action will be drawn from all the cooperative agreements and agreed upon with a view of developing a number of implementing protocols.

2.4.2 Stakeholders

The following are spheres of government, parastatals and organisations that the Department work with:

National, Provincial and Local Government; Organised Labour; Big Businesses; State Owned Enterprises; Small, Medium and Micro Enterprises, and Cooperatives; Non Government Organisations; and Local Communities.

2.4.3 Monitoring Mechanisms and Implementation of the Mandate


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Key actors Function

Branch /Chief Directorate /Directorate

Monitored by Mechanism

Head of Department The Accounting Officer of the Department

Head of administration.

Performs functions in terms of existing legislation

Ensure implementation of policies

Provides strategic direction, technical advice, support and expertise

Administration

Integrated economic development services

Trade and sector development

Business regulation and governance

Economic planning

MEC/Auditor- General/ Legislature/ Treasury

DED Strategic Plan. Budget Statement 1,2,3 Monthly financial reportsQuarterly reviewsAuditor-General’s reportsAnnual Performance PlanPerformance Agreement

Strategic Planning and Monitoring and Evaluation

Provide strategic support to the HOD and functional areas in the Department.

Chief Director: Corporate Strategy and Performance Management

Head of Department Strategic and budget prioritiesMonthly reportsQuarterly reportsAnnual reportsBudget Speech

Financial Management Ensure effective financial management and performance of the Department in compliance with applicable laws and regulations.

Chief Financial Officer Head of Department Strategic Plan Budgets Statement 1, 2,3Monthly financial reportQuarterly Reviews and annual reportAuditor-General reports

Economic Planning and Development

To provide thought leadership to all aspects of economics and continue to project conceptualisation, design, funding, implementation and quality assurance within the Department.

Deputy- Director -General Economic Planning and Development

Head of Department Strategic PlanBudgets Statement 1, 2,3Monthly financial reportQuarterly reviewsAnnual Performance PlansAuditor-General reportsPerformance Agreement

Corporate Services To provide effective leadership, management and administrative support services to the Departmental programmes

Deputy- Director -General Corporate Service

Head of Department Strategic PlanBudgets Statement 1, 2,3.Quarterly ReviewsAuditor-General reports Performance Agreement

Business Regulations and Governance

To ensure effective and efficient corporate governance, legal compliance and implementation of projects by Agencies; Liquor and Consumer Affairs Units and the relevant communication thereof to a variety of stakeholders.

Deputy-Director General: GovernanceChief Director: Consumer Affairs and Business ComplianceChief Director: Liquor Affairs Division

Head of Department Strategic PlanBudgets Statement 1, 2,3Monthly financial reportQuarterly reviewsAnnual reportAuditor-General reportsPerformance agreements


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GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | ORGANISATIONAL

SYSTEMS AND RESOURCES AGAINST THE DELIVERY OF SERVICES


3.1 VOTED FUNDS

3.2 AIM OF THE VOTE

In delivering on its mandate and responding to the outcomes-based approach, the aim of the Gauteng Department of Economic Development (DED) is to lead, facilitate and manage sustainable job creation and inclusive economic growth and development in the Gauteng City Region.

3.3 VISION, MISSION AND STrATEGIC GOALS

Vision

In delivering on its statement of purpose reflected above, the Department set for itself the following vision: Sustainable job creation and inclusive economic development in an integrated and globally competitive City Region.

Mission

The Department will be an activist, interventionist and developmentally focused Department contributing to an inclusive and growing economy in Gauteng by:

Providing thought leadership to inform the economic development agenda; Mobilising stakeholders to partner with for economic growth

and development;

Creating an enabling regulatory environment and stimulating business practices that promote inclusive economic growth; Enhancing the competitive advantage of key sectors of the

economy; Promoting and attracting trade and investment to the economy; Directing investment into strategic economic infrastructure; and Proactively linking communities to economic opportunities.

Strategic Goals

The Department’s response to the provincial outcomes-based approach and consideration of the environment, informs the Department’s Strategic Goals which are revised as follows:

Provide integrated economic and development planning which informs spatially referenced regional and local economic development; and contributes to the development of Gauteng into a globally competitive city region; Facilitate the implementation of strategic programmes that will

stimulate the brand, competitiveness and social transformation of Gauteng, enhance trade and export promotion and the attraction of investment; and result in the creation of decent jobs, increased tourism, and a greener economy; Promote an efficient, equitable and socially responsible business

environment; Act as an economic intelligence nerve-centre to inform strategic

decision making and targeted sector development strategies; and Promote public accountability and achieve high standards of

corporate governance and efficient resource utilisation.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENTORGANISATIONAL SYSTEMS AND RESOURCES AGAINST THE DELIVERY OF SERVICES

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AppropriationMain Appropriation

Adjusted Appropriation

Actual Amount Spent

Over/Under Expenditure

Administration 108,283 127,625 129,864 277

Integrated Economic Development 247,632 196,623 196,458 2,165

Trade and Sector Development 455,411 451,947 452,110 0

Business Regulations and Governance 66,337 66,745 66,732 10

Economic Planning 34,345 31,472 28,205 751

Department of Economic Development: Total

912,008 874,412 873,372 1,040

Responsible Minister Mr Nkosiphendule KolisileMEC for Economic Development

Administering Department Department of Economic Development

Accounting Officer Mr Albert ChaneeActing Head of Department for Economic Development


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3.4 COrE FUNCTIONS

The Department is tasked with ensuring that the right environmental framework and initiatives are put in place to foster economic growth and job creation in the province, and thereby push back the boundaries of poverty.

The core functions of the Department are modelled around four core Programmes which are:

Integrated Economic Development Services (IEDS); Trade and Industry Development; Business Regulation and Governance; and Economic Planning.

3.5 OrGANISATION OF THE DEPArTMENT

AGENCIES– GGB– GEP

– GGDA– GTA AND

COH/D

ECONOMIC AND DEVELOPMENTAL

PLANNING

CORPORATE SERVICES

GOVERNANCEAND BUSINESSREGULATIONS

OFFICE OF THE MEC

PUBLIC PRIVATE

PARTNERSHIP UNIT

OFFICE OF THE HOD

SPECIAL PROJECTS


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GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | PERFORMANCE OF PROGRAMMES AGAINST THE APPROVED PLANS


4.1 PrOGrAMME 1: ADMINISTrATION

The purpose of this programme is to provide effective leadership and strategic management and support in accordance with legislation, regulations, and policies; and ensure appropriate support services to all other programmes.

In this regard, the programme should effectively and efficiently manage and direct the activities of the MEC, manage and direct the Departmental transversal administrative programmes that give leadership to the Department, provide an effective financial management function, ensure the implementation of risk management and provide a strategic support function.

4.1.1 Financial Management

In the financial year under review, the Department spent 99.9% of the appropriated R874.4m budget.

The year to-date achievement was realised due to proper spending in accordance with planned priorities and prescribed needs, monthly spending analysis drawn-up; and continuous interaction with programmes and sub-programmes on their spending trends and how to address identified discrepancies which results in over and under spending of the allocated budget.

On average, the Department reduced 30 days payment of suppliers to 14,5 days. The internal daily payment monitoring tracking system and centralisation of invoice submission enabled the Department to achieve this target. The Provincial Treasury was constantly engaged to ensure that there were sufficient funds to enable payment of suppliers within the prescribed period.

The Department resolved 95,2% of Auditor-General findings, the outstanding finding is the Disaster Recovery Plan.

The Department was unable to implement Disaster Recovery Plan by 31 March 2013 due to budgetary constraints. However, the Chief Information Officer was granted approval to implement a fail-over site no later than June 2013.

4.1.1.2 Human Resource Management and Development

By end of the financial year, the Department reduced the vacancy rate to 26%; this equates to 33 employees that were appointed. These appointments were in addition to the existing staff establishment whilst the Department transit from the old to the new organisational structure.

A total of 17 out of 19 advertised SMS positions had been filled. By the end of the financial year, women in Senior Management Services (SMS) employment positions were at 35% against planned target of 50%. The target was not met due to the attrition rate of female employees and delays in the uploading of the new structure to PERSAL. The Department will earmark female employees to be recruited and fill the remaining advertised SMS positions in the 2013/14 financial year.

The Department’s collaborative efforts with organisations for People with Disabilities contributed to the attainment of cumulative 2.5% employment of People with Disabilities against the set target of 2%. As part of the skills development initiative to capacitate employees with disabilities at elementary level, the Department has through Emerging Management Development Programme (EMDP) trained 4 employees with disabilities and were appointed as administration clerks for a period of 12 months. This process will enable employees to gather and develop the necessary skills in ensuring growth and succession.

In providing continued support to this targeted group, the Department has put measures in place to ensure their retention and development within the staff establishment.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENTPERFORMANCE OF PROGRAMMES AGAINST THE APPROVED PLANS

SECT

ION 04



SECT

ION 04


TAB

LE 1

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N

FOr

FIN

AN

CIA

L M

AN

AG

EMEN

T SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Fina

ncia

l acc

ount

abili

ty a

nd c

ompl

ianc

e w

ith p

resc

ribed

fin

ancia

l reg

ulat

ions

and

gui

delin

es.

Perc

enta

ge o

f re

solv

ed a

udit

findi

ngs

–10

095

,2Pa

rtial

ly Ac

hiev

edTh

e De

partm

ent c

ould

not

reso

lve

findi

ng o

n di

sast

er

reco

very

. Sys

tem

s an

d co

ntro

ls ha

ve b

een

put i

n pl

ace

to

ensu

re th

at th

is fin

ding

do

not a

rise

in th

e ne

xt p

erio

d.

Fina

ncia

l acc

ount

abili

ty a

nd c

ompl

ianc

e w

ith p

resc

ribed

fin

ancia

l reg

ulat

ions

and

gui

delin

es.

Varia

nce

betw

een

budg

et &

act

ual

expe

nditu

re

3,76

50,

1Ac

hiev

edTa

rget

ach

ieve

d th

roug

h pr

oper

mon

itorin

g of

the

budg

et

vers

us e

xpen

ditu

re. P

rogr

amm

e m

anag

ers

wer

e ad

vise

d ab

out t

heir

spen

ding

tren

ds a

nd a

ctio

n ta

ken

if th

ere

wer

e ea

rly w

arni

ngs

of o

ver o

r und

er s

pend

ing

the

budg

et.

Fina

ncia

l acc

ount

abili

ty a

nd c

ompl

ianc

e w

ith p

resc

ribed

fin

ancia

l reg

ulat

ions

and

gui

delin

es.

Aver

age

days

fo

r pay

men

t of

serv

ice p

rovi

ders

(G

PC re

port)

–30

15Ac

hiev

edTa

rget

ach

ieve

d th

roug

h im

plem

enta

tion

of a

pay

men

t-tra

ckin

g sh

eet t

o as

sist i

n m

onito

ring

the

supp

lier

paym

ents

. The

re is

a d

edica

ted

offic

ial t

hat i

s m

onito

ring

the

paym

ent s

heet

on

a da

ily b

asis.


TAB

LE 1

.2: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

HU

MA

N r

ESO

Ur

CES

M

AN

AG

EMEN

T A

ND

DEV

ELO

PMEN

T SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Empl

oym

ent e

quity

targ

ets

achi

eved

.Pe

rcen

tage

of

wom

en in

Sen

ior

Man

agem

ent

Posit

ions

with

in

DED

–50

35Pa

rtial

ly Ac

hiev

edTh

e up

load

ing

of th

e ne

w s

truct

ure

in P

ERSA

L de

laye

d th

e re

crui

tmen

t driv

e fo

r SM

S po

sitio

ns a

s su

ch th

e re

crui

tmen

t pro

cess

for w

omen

SM

S m

embe

rs c

ould

no

t be

com

preh

ensiv

ely

cond

ucte

d. Th

e De

partm

ent w

ill

earm

ark

fem

ale

empl

oyee

s to

be

recr

uite

d an

d fil

l the

re

mai

ning

adv

ertis

ed S

MS

posit

ions

in th

e ne

w fi

nanc

ial

year

.

Empl

oym

ent e

quity

targ

ets

achi

eved

.Pe

rcen

tage

of

peop

le w

ith

Disa

bilit

ies

in

DED

empl

oym

ent

–2

2,5

Achi

eved

Partn

erin

g w

ith o

rgan

isatio

ns o

f per

sons

with

disa

bilit

ies

enab

led

the

Depa

rtmen

t to

achi

eve

this

targ

et.

Empl

oym

ent e

quity

targ

ets

achi

eved

.Va

canc

y ra

te–

1026

Not

Ach

ieve

dTh

e ta

rget

was

not

met

due

to th

e at

tritio

n ra

te o

f fem

ale

empl

oyee

s an

d de

lays

in th

e up

load

ing

of th

e ne

w

stru

ctur

e to

PER

SAL.

It is

env

isage

d th

at th

e up

load

ing

on P

ERSA

L an

d im

plem

enta

tion

of th

e ne

w s

truct

ure

will

un

lock

this

bloc

kage

.


4.2 PrOGrAMME 2: INTEGrATED ECONOMIC DEVELOPMENT SErVICES

The purpose of this programme is to ensure thought leadership and facilitation as well as the development of the province into a competitive global city with a distinctive African identity. The programme’s objective is to interpret the Gauteng space; provide development direction and create a system that delivers streamlined professional development planning services for all development investment in Gauteng; thereby ensuring that the development objectives of the Gauteng Global City Region are achieved. In this regard, the programme provides leadership in integrated development and spatial planning, the implementation of a uniform land use management system, fast tracked land development, the provision of development planning information, and support to municipalities to ensure credible and integrated development planning policies.

4.2.1 Youth Employment Programme

Township Enterprise Hubs

The planned annual target of establishing six Township Enterprise Hubs in identified locations was not realised due to funding constraints. However, the construction of one of the hubs, Winterveldt Township Enterprise Hub, has commenced and is to serve as a pilot that will be used as benchmark in rolling out other hubs in the new MTEF.

The Winterveldt Township Enterprise Hub project was awarded to the Automotive Industry Development Centre (AIDC) towards the end of January 2013 for implementation. AIDC completed the design and conceptual development of an automotive enterprise development hub, as well as an arts and culture enterprise model, and secured approval from City of Tshwane by end of the financial year.

AIDC secured agreements with the specific industry partners to provide support for the supply of paints and abrasives parts together with a take-away facility. Drafted building plans, commenced the actual refurbishment construction as per the designed specifications, and completed the open tender process for the variety of technical training equipment required for the Hub.

Youth Placement (Matriculates and Graduates NCV Level 4)

The Gauteng Youth Programme Management Office has established a walk-in centre whereby unemployed youth between the ages of 18-24 years cohort are recruited to register as participants in the placement programme. An on-going outreach programme that has been set-up at Community level supports this placement programme. Mobilisation is done through Economic Development Facilitators in liaison with Municipal officials throughout all 5 Regions.

A total of 3 439 young people have registered with the Programme whilst over 1 270 have received work-readiness training.

The Programme has placed over 60 young people in permanent and temporary jobs. The Department will continue engagements to partner with the private sector towards placing more candidates that have registered with the Programme.

The Department signed agreements with key strategic partners during 2012/13 financial year. This will assist to ensure that candidates are absorbed and placed in employment opportunities. Engagements to partner with the private sector are on going, thus more candidates that have registered with the Programme will be placed in job opportunities during the next financial year.

4.2.2 Regional and Local Economic Development

In the financial year under review, the Department in collaboration with metropolitan and district municipalities in Gauteng has accelerated efforts towards the successful completion of a number of regional and local economic development ongoing initiatives which are at different stages of completion. In some instances the final completion of the initiatives are aligned to the financial year end of municipalities in June.

The progress towards the completion can be reported as follows:

The Mohlakeng Shared Industrial Production Facility (SIPF) in the West Rand District was completed for delivery on the 31st March 2013. With regard to the Mohlakeng Buy-Back Centre (BBC), environmental impact assessments (EIAs) were conducted, an operating licence was granted and a partial structure was erected. A youth cooperative was awarded the contract of running the BBC upon completion.


SECT

ION 04


Two projects sites were selected in the Sedibeng District for the installation of Bio-digesters. Energy usage audits at the two sites were completed. A service provider for the installation was appointed. The site of the Sedibeng Science Park was confirmed as the project site for the Fabrication Laboratory (Fab Lab). A business case and project plan have been developed. Negotiations with Council for Scientific and Industrial Research (CSIR), and Vaal University of Technology (VUT) as strategic partners are at advanced stage towards the finalisation of co-operation agreements.

A Fab Lab in Tokoza was completed for delivery in the reporting period. Refurbishment works on the SIPF existing building in Tembisa are at an advanced stage. Operating machinery have been purchased. Construction is underway on the adjacent portion of the land. Work on the final completion of the Tembisa buy-back centre are at an advanced stage. Bailing machines have been purchased and a cooperative has been awarded the contract to operate the buy-back centre.

The Department through the Political IGR collaborative efforts has signed a cooperative agreement with the City of Ekurhuleni with specific deliverables on programmes and initiatives to be undertaken in the region. The Department will continue with these political engagements to forge partnerships particularly with the remaining two metropolitan and two district municipalities in Gauteng. The primary objective would be to ensure that an integrated and inclusive joint programme of action would be drawn from all the cooperative agreements and agreed upon with a view of developing a number of implementing protocols.

4.2.3 Gauteng Enterprise Propeller

As part of contributing towards its end of term target of supporting 30 000 SMMEs by 2014, the Gauteng Enterprise Propeller (GEP) has in the financial year under review assisted a total of 2 649 SMMEs and a total of 783 Co-operatives. These businesses were assisted through a range of tailored financial and non-financial interventions such as Mentoring; Business Development Support; Training and Loans.

A total of 2 649 SMMEs (i.e. 2 445 existing and 204 new) and 783 Co-operatives (i.e. 659 existing and 124 new) were assisted through strict adherence to the Catch-up plan after quarter one targets were missed. Of the 2 649 SMME supported, 237 were supported financially through the Captive Fund, Micro-Finance and the use of partnerships, such as the one with MODE for Disabled Entrepreneurs as well as the MAFISA Fund programme. The remaining 2 412 SMME were assisted with non-financial support.

Of the total 783 Co-operatives that were supported, 60 were assisted financially through the Co-operative Assistance Programme (CAP) as well as loans and through efficient deployment of internal resources and consistent adherence to business plan, which included the use of partnership funds such as MAFISA. One hundred and twenty four (124) Co-operatives were successfully developed and supported through a consistent adherence to the Catch-up plan after quarter one targets were missed. Partnerships with the City of Joburg (CoJ) and its Entities, City Power and Joburg Water also assisted.

A total of 554 Co-operatives were assisted with non-financial support. This includes the customised Co-ops Training programme as well as the Co-op Incubation programme.

By end of the financial year, the Gauteng Enterprise Propeller through direct implementation of its programmes created 1 344 permanent jobs by funding of SMMEs and Co-ops, also sustained a total of 3 392 jobs through the various non-financial interventions that led to the sustainability of those enterprises. The cumulative number of SMMEs and Coops supported in the financial year under review is 33 437 against the 2014 end of term planned target.


SECT

ION 04


TAB

LE 2

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

YO

UTH

EM

PLO

YM

ENT

SUB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Yout

h em

ploy

men

t pro

gram

mes

impl

emen

ted

Num

ber o

f To

wns

hip

Ente

rpris

e Hu

bs

esta

blish

ed

–6

0N

ot A

chie

ved

The

plan

ned

targ

et o

f est

ablis

hing

six

Tow

nshi

p En

terp

rise

Hubs

in id

entifi

ed lo

catio

ns c

ould

not

be

real

ised

due

to fu

ndin

g co

nstra

ints

and

the

cons

truct

ion

of W

inte

rvel

dt To

wns

hip

Ente

rpris

e Hu

b w

as id

entifi

ed to

be

a p

ilot t

hat w

ill b

e us

ed a

s be

nchm

ark

in ro

lling

out

ot

her h

ubs

in th

e ne

w fi

nanc

ial y

ear.

Sust

aina

ble

empl

oym

ent c

reat

ion

Dire

ct p

erm

anen

t jo

b cr

eate

d vi

a DE

D pr

ogra

mm

es

02

484

16N

ot A

chie

ved

A to

tal o

f 3 4

39 y

oung

peo

ple

have

regi

ster

ed w

ith th

e Pr

ogra

mm

e w

hilst

ove

r 1 2

70 h

ave

rece

ived

wor

k-re

adin

ess

train

ing.

The

Pro

gram

me

has

plac

ed o

ver

60 y

oung

peo

ple

in p

erm

anen

t and

tem

pora

ry jo

bs.

Sust

aina

ble

empl

oym

ent c

reat

ion

Dire

ct te

mpo

rary

jo

b cr

eate

d vi

a DE

D pr

ogra

mm

es

01

516

44N

ot A

chie

ved

The

Depa

rtmen

t will

con

tinue

eng

agem

ents

with

th

e pr

ivate

sec

tor t

o pa

rtner

tow

ards

pla

cing

mor

e ca

ndid

ates

that

hav

e re

gist

ered

with

the

Prog

ram

me.


TAB

LE 2

.2: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

rEG

ION

AL

AN

D L

OC

AL

ECO

NO

MIC

DEV

ELO

PMEN

T SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

LED

proj

ects

est

ablis

hed

and

supp

orte

dN

umbe

r of

econ

omic

deve

lopm

ent

proj

ects

su

ppor

ted

at

loca

l and

regi

onal

le

vels

–5

1N

ot A

chie

ved

Proj

ects

sup

porte

d ar

e w

ork-

in-p

rogr

ess

at d

iffer

ent

stag

es o

f com

plet

ion.

Fin

al c

ompl

etio

n of

the

proj

ects

su

ppor

ted

is al

igne

d to

and

hin

ges

on th

e fin

ancia

l yea

r-en

d of

mun

icipa

litie

s.

LED

proj

ects

est

ablis

hed

and

supp

orte

dN

umbe

r of

capa

city

build

ing

inte

rven

tions

to

mun

icipa

litie

s

–2

1N

ot A

chie

ved

The

Depa

rtmen

t thr

ough

the

Polit

ical I

GR

colla

bora

tive

effo

rts w

ith th

e M

unici

palit

ies

has

agre

ed to

wor

k jo

intly

in fu

ture

on

the

capa

city

build

ing

prog

ram

me

and

iden

tify

the

criti

cal n

eeds

for t

he s

ucce

ss o

f the

se

initi

ativ

es.

The

enga

gem

ents

are

on

goin

g fo

r agr

eed

prog

ram

mes

to

find

exp

ress

ion

in th

e M

unici

palit

ies

IDP’

s an

d st

rate

gic

plan

s. Th

is is

to e

nsur

e th

at D

epar

tmen

tal

plan

ned

targ

ets

on re

gion

al a

nd lo

cal e

cono

mic

deve

lopm

ent a

re re

alize

d.

LED

proj

ects

est

ablis

hed

and

supp

orte

dN

umbe

r of L

ED

stak

ehol

ders

ta

ken

thro

ugh

capa

city

build

ing

prog

ram

mes

per

an

num

–50

0N

ot A

chie

ved

The

Depa

rtmen

t def

erre

d th

e ca

pacit

y bu

ildin

g pr

ogra

mm

e pe

ndin

g as

certa

inin

g th

e im

pact

and

val

ue-

for-m

oney

of t

he p

rogr

amm

e. Th

e co

ncep

t of d

eplo

ying

Econ

omic

Deve

lopm

ent F

acili

ties

to s

trugg

ling

smal

l m

unici

palit

ies

was

intro

duce

d fo

r pilo

ting

as p

art o

f de

velo

ping

a c

ompr

ehen

sive

capa

city

build

ing

LED

proj

ects

est

ablis

hed

and

supp

orte

dN

umbe

r of L

ED

Stra

tegi

es a

ligne

d to

PG

DS a

nd

othe

r spa

tial

deve

lopm

ent

plan

s

–1

0N

ot A

chie

ved

The

Depa

rtmen

t rec

eive

d tw

o re

ques

ts fo

r LED

stra

tegi

es

assis

tanc

e fro

m S

edib

eng

Dist

rict M

unici

palit

y’s lo

cal

mun

icipa

litie

s, Le

sedi

and

Mid

Vaal

. The

se re

ques

ts w

ere

defe

rred

to th

e ne

xt fi

nanc

ial y

ear d

ue to

bud

geta

ry

cons

train

ts.


TAB

LE 2

.3: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

ENTE

rPr

ISE

PrO

PELL

Er S

UB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

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SECTION 04


4.3 PrOGrAMME 3: TrADE AND SECTOr DEVELOPMENT

The Trade and Industry programme is responsible for the stimulation of economic growth through industry development, trade and investment promotion, and translating economic policies into implementable strategies.

The programme’s objective is to support the facilitation of trade, export promotion and to attract investment, by developing implementation strategies for the positioning of the industrial sector as a key contributor to economic growth and development; and to facilitate the implementation of strategic programmes that will stimulate the competitiveness of priority sectors. In this regard, the programme provides guidance and support from the GDED to its agencies through the development of costed implementation strategies and exploring opportunities for greater collaboration, thereby ensuring that the economic development objectives of the Gauteng Global City Region are realised.

4.3.1 Gauteng Growth and Development Agency (GGDA)

Freight and Logistics

The Tambo Springs Inland Port project which is a freight transport and logistics focused development on 1 500 ha of land south of Vosloosrus, close to the N3 highway was successfully handed over to the Department of Roads and Transport during the financial year under review.

GGDA continues to work with GDED and GDRT as part of the handover process. The handover report was prepared by GDED and submitted to GDRT. However; it was agreed the GGDA and GDED must complete the feasibility study currently being conducted on the site identified by Mogale City before handing over the project to GDRT. GGDA and GDED had started a process to apply for funding from Gauteng Funding Agency (GFA) to conduct the feasibility study. GFA granted the funding in October 2012. The condition attached to the funding was that GFA would appoint the professional team. This was done in December 2012. The project work commenced in January 2013. The team is completing the study in May 2013, therefore the process of handing over the project report to GDRT will commence.

The IDZ Development Company (IDZ Devco)

The Industrial Development Zone (IDZ) Devco was established by virtue of the Blue IQ Act but remained a shelf company until the operator licences for the IDZ was granted to BIQ by the Department of Trade and Industry in December 2010. The vision for the ORTIA-IDZ is to contribute towards the transformation, development and growth of post-minerals extraction processing and beneficiation industry sectors.

To contribute to the creation of an export-orientated growth centre, this will take advantage of the ORTIA as the primary air transportation hub in South Africa.

The IDZ development is within the Ekurhuleni Metro and it is intrinsically intertwined with the Aerotropolis project that is spearheaded by Ekurhuleni Metro.

The IDZ framework would give impetus to the Aerotropolis and would improve the value proposition. To maximise synergies of these initiatives the GDED has initiated discussions with the Metro and a Memorandum of Understanding (MoU) is in the process of being finalised.

The JMP Commercial Case was presented to the IDZ DEVCO Board and approved for submission to GDED in July 2012. The HOD accepted the commercial case and it was then submitted to National Treasury in August 2012 to register the project as a Private Public Partnership (PPP).

The commercial case was further submitted to the dti for funding application. A letter of confirmation for support was received from the dti to fund the bulk infrastructure. An agreement must be entered between the Department and dti to detail the responsibilities, the grant flow, and the conditions on the Operator Permit have to be executed.

The outcomes of the commercial case recommended that the first phase of the ORTIA IDZ JMP, be procured using the PPP approach, as regulated on Treasury Regulation 16. The commercial case further conducted a stakeholder analysis of key government institutions and through various engagements, the stakeholder model was further refined. Further to the commercial case the GGDA appointed Jewellery Council of South Africa (JCSA) to develop a concept paper which maps out the project framework to be adopted for implementation of the skills development initiative as support to JMP development.

The IDZ steering committee meeting was held in February 2013. National Treasury concurred with the members of the steering committee that Expression of Interest/Request for Quotation (EOI/RFQ) should be issued to market. The IDZ DEVCO is in the process of appointing the procurement advisor to ensure that the document put out to market is competitively packaged to attract the targeted investors. The advisor will offer technical know-how during the tender planning (RFQ/RFP) process. Simultaneous to the Procurement Phase, will be the development of the bulk infrastructure. An Environmental Impact Assessment was conducted for the 6.1ha land. A Record of Decision was then issued by the Gauteng Department of Agriculture and Rural Development. The IDZ DEVCO has since contracted the Environmental Control Officer (ECO).

Skill development component is part of the overall project plan for the implementation of the Jewellery Manufacturing Precinct. To this end, the IDZ Devco has together with the Jewellery Council SA and tertiary institutions like the University of Johannesburg developed and finalised a 3-year training programme for young jewellery designers. The course content was finalised in the 2012/13 and the first 15-student intake is expected to occur in 2013/14.


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ION 04


Trade and Investment

Four of the planned seven missions were successfully undertaken to the Democratic Republic of Congo, Zanzibar, Mozambique and Nigeria. Mission to Angola and South Sudan did not take place. Mission to South Sudan was cancelled due to an incoming delegation from that country led by the Deputy Minister of Finance.

Seven missions to the rest of the world were undertaken to Italy, Netherlands, Turkey, Singapore, Portugal, Prague and India.

Nine FDIs (9) were successfully facilitated, six of which were new FDIs and three being existing FDIs that were assisted to expand operations. FDIs facilitated ranged from investments in the following sectors: Steel beneficiation, auto components manufacturing, and food processing, ICT and pulp and paper manufacturing. A total of Seventeen (17) domestic investments were facilitated during the year under review. Of these, eleven (11) are DDIs directly facilitated and six (6) are DDIs assisted to expand operations. DDIs facilitated ranged from investments in the following sectors: Property Development, ICT and BPO, Tourism, Agriculture, Fashion Industry and the Energy Industry.

Overall, 2 441 permanent and 2 229 temporary jobs were created through the DDIs and FDIs facilitated against the planned target of 3 700 jobs.

The Innovation Hub (TIH)

TIH is managed by The Innovation Hub Management Company (Pty) Ltd (TIHMC), a subsidiary of the GGDA, an agency of the Gauteng Department of Economic Development.

TIH’s role in the provincial innovation eco-system is to be a catalyst for innovation and a key knowledge economy driver, in line with the Gauteng Growth and Development Strategy. Key focus areas are information and communications technology (ICT), biotechnology, renewable energies and low carbon economy technologies (green economy).

The Maxum programme incubated six companies in the Main incubation programme and 22 pre-incubatees were in the programme. Training of 259 SMEs was also undertaken in the Maxum programme. Two companies in incubation, Matayo Biofuels and Phambili Energy reached some key milestones in the commercialisation of their products. Collaboration agreements with the CSIR and EgoliBio were signed in the year under review.

The CoachLab programme was run successfully during the year, with plans for expansion in the North West University Vaal Triangle Campus achieved. A total of 31 learners graduated from the programme and an additional 30 learners participated in the TIHMC internship programme run in partnership with MICT-SETA. CoachLab recruited SITA to partner with for development of 60 interns for the 2013/2014 programme.

In its first year of operation, the Climate Innovation Centre supported 12 SMEs with business advisory services and of these SMEs three were supported with funding. The mLab programme supported 13 mobile developers. The start-up support programme launched this year supported six entrepreneurs with funding. An agreement with GEP was also signed to assist with leveraging additional funding in the new financial year.

The Open Innovation Solutions Exchange platform received tremendous success in its first year of operations.

Six partners from both public and private sectors posted challenges to which over 200 solutions were posted. The platform also served as a space to showcase technologies from SMEs.

TIHMC enterprise and sector development competitions, Gauteng Innovation Competition and Gauteng Accelerator Programme, GAP- Biosciences showcased 7 enterprises for further development and incubations.

TIHMC continues to implement programmes to support the Gauteng Green Economy Strategy. The Moringa Oleifera project in Winterveldt has planted 76 hectares of Moringa and a Nursery was developed as a business opportunity.


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ION 04


The Eco-schools programme continued to motivate students in schools to support greening initiatives. The Medical Waste Treatment facility commercial case was developed to aid with the establishment of the pilot facility.

The infrastructure enabler of the Science Park has recorded some achievements. The Bubble tree transactions was finalised thus allowing TIHMC to undertake further internal and external bulk infrastructure projects in the future. GDARD and TIHMC agreed to collaborate and establish the Gauteng Biotechnology Park jointly.

Automotive Industry Development Centre

The AIDC, a subsidiary of the GGDA, delivers on projects within its key focus areas of Supply Chain Development (SCD) or Logistics, Supplier Development or Enterprise Development and Skills Development and Training.

Overall, the AIDC realised the achievement of providing training to 2,060 individuals. Furthermore this, the AIDC also created 1,112 jobs via a host of various projects and programmes. Through a care selection process administered by the AIDC, a pilot group of 30 black female youth were sent to the Motherson Sharjah Plant to gain experience in the automotive industry.

The Mentorship Programme for body shop repairers is a three-year long training programme aimed at mainstreaming informal panel beaters into the main economy. The project aims to up skill informal repairers to the point where they can access opportunities especially through the insurance industry. Forty (40) mentees continued with the programme in 2012/13. A “Youth Skills and Technical Training Programme” has in 2012/13 trained 51 artisans as welders, boilermakers, fitters and diesel mechanics.

As part of the overall strategy to promote exports from Gauteng, the GGDA’s focus of the furniture sector in 2012/13 resulted in the formal training of 32 furniture designers and craftsman. The initial target on the programme was thirty (30).

AIDC’s BBBEE Automotive Incubation Facility has successfully established six new businesses and transferred business and related skills from mentors to Incubatees who are now being developed and to graduate from the Incubator and become contributing members to the automotive industry. The seventh entrepreneur is in the food industry supplying the canteen services to the 200 employees within the Incubator and the supply of catering services for events and meetings.

Nissan South Africa (PTY) Ltd (NSA) made a request to the Gauteng Provincial Government, through Department of Economic Development, for an investment of R200 million which would give NSA a better chance of winning the bid to manufacture the new pick up vehicle in 2014.

During the financial year, the AIDC commenced with the construction and refurbishment of Gauteng’s first Automotive Training Academy. A sod turning ceremony was held on the 14 November 2012 with the MEC in attendance. This training facility will be fully operational during the 2013/14 financial year and aims to address the skills shortage within the automotive sector.

During the 2012/13 financial year, the AIDC added to its existing fleet of 270 mini-bus taxis which were already converted to operate dually on Liquid Petroleum Gas (LPG). The AIDC converted a further 85 taxis to add to this fleet which has resulted in a total number of taxis being 355.

The Gauteng’s Overseas Youth Development Programme is done in close collaboration with one of the world’s largest automotive component manufacturer, Mothersons. The placement period is for a minimum period of 2 years and the AIDC will continue to select and screen for candidates to be despatched over the 2013/14 financial year. Upon return and completion of their programme, the AIDC will ensure that it strives to facilitate employment opportunities for these highly skilled individuals.

The Supplier Park Development Company (SPDC)

SPDC has successfully attracted and developed facilities for Tier 1 supplier operating from the Rosslyn Automotive Supplier Park (ASP). The DTI’s Automotive Production Development Programme’s (APDP) automotive investment scheme’s (AIS) programme is specifically aimed increasing local content to an average of 70% in all vehicles assembled in the country by 2020. In order to reach these levels of local content it is accepted that the biggest impact can be made through increasing the depth of local manufacturing to lower tier suppliers.

This would necessitate that either new manufacturers are developed or current manufacturers brought into the industry to supply to generally foreign owned Tier 1 companies.

ASP has submitted a request to Group strategy and planning for the development of smaller size factories (500 – 1000m2) specifically to cater for the above need. The design tender adjudication process has been completed and letters of appointment have been issued to the recommended consultants. There is a requirement for infrastructure investment of around R1.5 billion for this.


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ION 04


Several projects of the SPDC have been placed on hold due to possible synergies that may arise during the Newco process, i.e. the merger of the AIDC with SPDC as from 1 April 2013. Many of these SPDC projects will be more efficiently managed once the Newco has been established, subject to adequate funding.

Alternative Waste to Energy (AWESOME)

An alternate waste to energy facility (AWESOME) was to be built on approximately 8ha of land at Zesfontein, Ekurhuleni using mass burn incineration technology to dispose of waste and create electricity and other bi-products. During the period under review GGDA engaged with the Ekurhuleni Metropolitan Municipality to identify a suitable site. The GGDA is now considering handing over this project over to Green PMO at DED.

The Constitution Hill (ConHill)

The Constitution Hill Development Company was primarily established to manage the maintenance and profiling of the site as a cultural heritage attraction, hence contributing to the regeneration of the inner-city. In addition to overseeing the physical construction work, ConHill was established and charged with setting up the appropriate management arrangements to ensure the delivery of Heritage, Education, and Tourism (“HET”) programmes, key functions that would realise the overall vision for the site, and contribute to the revitalisation of the inner-city.

The site has a number of purposes including housing the Constitutional Court; the site also plays an educational role focusing on educating on Constitutionalism, Human Rights, and Democracy. There is office space for a number of strategically selected tenants such as NGOs, Chapter Nine Organisation, and organisations that are active in the Human Rights space.

In commemorating National Heritage day, Constitution Hill hosted various activities which took place from the were aimed at catalysing national dialogue focused on issues of heritage and culture while exploring the role of sites of memory in democratic South Africa. Constitution Hill widened its Annual Debating Tournament aimed at schools in and around Johannesburg and hosted 40 schools, which were capacitated with debating skills, knowledge on the Bill of Rights. This was a growth from the 24 schools, which participated in the Tournament the previous year. To mark the 16th Anniversary of the Signing of the South African Constitution, Constitution Hill hosted a robust Seminar on the 16th December, which included discussants from various sectors and a panel of experts to reflect on gains made thus far and challenges faced in a democratic South Africa.

Constitution Hill launched the Constitution Week Campaign to mark the coming into effect of the Constitution, which was on the 4th February 1994. Constitution Hill hosted workshops commemorating Constitution Week from 4th February 2013 to 8th February 2013.

The educational workshops are organised in partnership with the ConCourt Trust. The focus of these workshops is to bring learners from disadvantaged schools from in and around Johannesburg to ConHill, to learn and raise awareness about the Constitution, the Bill of Rights and Democracy.

Constitution Hill made notable strides during 2012/13 with the Heritage, Education and Tourism (HET) Programme hosting 48 events on site, aimed at promoting issues of Nation Building, Social Cohesion and contributing towards Tourism Development.

The Venue hire and Marketing Departments has made significant improvement in generating publicity and solititing interest in the use of the facilities, in comparison to the 4th quarter of the last financial year, there has been an increase of 113% in venue hire income. The HET programme facilitated the Bill of Rights workshops for 2000 learners from schools in and around Johannesburg.

The Gauteng Growth and Development Agency, across all programmes implemented in the financial year under review has directly created a total of 4 670 jobs. Of these jobs, 2 229 and 2 441 are temporary and permanent jobs respectively.

4.3.2 Gauteng Tourism Authority, Cradle of Humankind World Heritage Site and Dinokeng Projects

The key achievements for the financial year under review included the finalisation of the Visitor Information Centre (VIC) project at the OR Tambo International Airport. This follows the successful conclusion of a Memorandum of Understanding between the Gauteng Tourism Authority, the Airports Company of South Africa and the National Department of Tourism that sought to ensure a smooth rollout of the National Tourism Information Gateway Strategy.

In the financial year under review the board approved the Provincial Sales and Marketing Strategy, which includes the plan to promote Gauteng as a globally competitive tourism destination. The niche marketing opportunities focusing on two market segments, namely Medical Tourism and shopping tourism, were included in the aforesaid Strategy. Consequently, these two niche marketing opportunities will no longer have standalone Strategies as originally conceptualised.

There has been no progress on the establishment of the Craft Emporium, for which a Business Case was developed and submitted to the Jobs Fund Office at the beginning of the financial year.


SECT

ION 04GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

PERFORMANCE OF PROGRAMMES AGAINST THE APPROVED PLANS


That was mainly due to the fact that this project was not funded from the very beginning and no funding received either from the Jobs Fund Office. The organisation has since taken a strategic decision not to pursue this project; which if the funding had been successfully secured would have been executed in close cooperation with the Department of Sport, Recreation and Culture under the auspices of their creative industries project.

In the financial year under review, contracts for the upgrading of the Maropeng Interpretation Centre were finalised and preliminary work undertaken. Work on the external infrastructure upgrade, which was earlier split from the Sterkfontein and Maropeng exhibition upgrade, has also been finalised. There were legal challenges that were encountered relating to the poor quality workmanship by the service provider.

Subsequently a panel of experts was appointed in September 2012 to oversee implementation of Phase 2 of the exhibition upgrade and a separate process is underway for the infrastructure upgrades of the external environment at Maropeng.

While considerable progress has been made over the last quarter in terms of developing a Transfer Guideline Protocol for the Ga-Rankuwa Hotel School, the project is still behind the established target. In coordination with the Economic Planning unit at DED, the Ga-Rankuwa Hotel School Infrastructure roll-out plan was developed. This is aimed at regenerating the school to global standards.

The plan identifies a list of infrastructure requirements for the school to be modelled as the best in terms of hospitality skills development. It has been used as a guide for procuring the machinery and equipment for the school. An interim task team is in place and meetings are being held bi-weekly to fast track the pace of execution.

In respect to job creation, 400 tourism safety monitors were employed in the Cradle of Humankind World Heritage Site and Dinokeng areas during the financial year.

The ‘Working for Fire’ project, the management of the Dinokeng Game Reserve and the fossil casting projects in the Cradle of Humankind World Heritage Site and Dinokeng areas also resulted in an additional 123 jobs being created over the year. Of this total, the Working for Fire project in the Cradle created 25 jobs, Dinokeng working for fire 50 jobs, Dinokeng Game Reserve 36 jobs and in the fossil casting project 12 jobs.

The current processes on tourism jobs in the province reflect only permanent jobs. Different processes have been discussed to record temporary jobs but it must be appreciated that the numbers will not be exhaustive as not all value chain players that offer temporary jobs will necessarily provide their inputs. Therefore, these will largely be reported through cooperation with partners that have closer working relationships with the agency. To demonstrate the point, it has been agreed for instance that events sponsored or supported by any other means by the agency will incorporate in the non-negotiable deliverables reports on jobs created. Inopportunely, the sector shed over 1 500 jobs consistent with the prevailing economic conditions in the country.

The Agency has directly created a total of 6 108 jobs. Of these jobs, 6 172 temporary and 36 are permanent respectively.

4.3.3 ICT Programme Management Office

Technical and Services Model Design

Geotechnical, Land Survey, Topographical and base utilities services have resumed and will be totally concluded in the new financial year and form an integral part of the Master Blue Print Development Plan (MBPDP). Existing Environmental Impact Assessment (EIA) reports have been reviewed and commented on accordingly, while new EIAs will be performed on the National Department of Public Works (NPW) land once transferral has been completed from NPW to GDID and or its nominee.

The Urban Designs for both Nasrec Precinct and The Innovation Hub having been completed, Traffic Impact Studies have resumed for both areas.

A detailed infrastructure costing has been concluded for the construction, services, utilities and bulk infrastructure. This costing will be followed by an updated costing upon the conclusion of the ICT infrastructure designs, which were awaiting the finalisation of the Urban Designs. ICT Infrastructure design and costing will be concluded in the next financial year.

This costing forms part of the Gauteng Smart City commercial model and funding models. Major delays to the ICT infrastructure designs have been caused by a lack of information access on the Integrated Business Services (IBC) infrastructure Architecture from the Department of Communications (DOC), thus not fully knowing the extent and design of existing infrastructure within the Nasrec Precinct. The Department has engaged Telkom who are the owners of the infrastructure and a technical team has been established between the two Departments to ensure that DED has access to all the required information as well future rollout plans.

Real Estate and Commercial Feasibility Study

This phase is 90% completed with the development product mix already concluded for both Nasrec Precinct and TIH. The allocations of Residential, Commercial, Industrial and Retail developments has been concluded and costed respectively. Presales will resume upon the conclusion of the MBPDP. A study of the Real Estate surrounding both Nasrec Precinct and TIH is underway (i.e. 90% complete) and will be reflected in a Real Estate Study report as part of the MBPDP. There have been unforeseen delays in finalising the 28ha of land from the National Department of Public Work. Once this has been concluded 100% of this phase will be completed.

Industrial Model Design

Core infrastructure design relating to construction has been 90% concluded. Transport infrastructure relating to Buses, Rail and Mono Rail are 50% completed and will be completed in the next financial year.


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ION 04


With the Gauteng Smart City placing much emphasis on Green, alternative transport to personalised transport are critical to the planned development, and as such will be costed and are already included in the Urban Design framework. Documentation relating to the submission of the Township Establishment of the Nasrec Precinct and extension of TIH has been prepared but cannot be concluded until land transfer matters between the NPW and GPG, through the GDED or its nominee, have been concluded.

As the Gauteng Smart City team, we will continuously engage with the dti SEZ team for information sharing in the development of the MBPDP to ensure full compliance to the SEZ licence agreement and award for the Gauteng Smart City.

A detailed business plan consisting of governance, operating, commercial and funding models has been developed. This model was awaiting the conclusion of the Urban Design and Infrastructure Design so as to accurately dictate the needed operability and funding models. The business plan takes into account extensive benchmarking with international and local IDZs and Trade Zones to ensure alignment to local and international standards and expectations.

The target on industrial model design was not achieved due to delays in the transfer of land. The Department will consult with the Department of Public Works to unlock the blockages for completing land transfer.

Master Planning

This process has commenced and aims to consolidate and integrates all sections of the MBPDP into a single and fully integrated Gauteng Smart City MBPDP inclusive of all requirements and supporting documentation. All processes and their conclusion thereto, will support the Master Planning phase.

Science and manufacturing hubs and Smart Cities play an important role in facilitating technological product flows and innovation. They attract foreign direct investment; unleash spurs of technological innovation directly contributing to meaningful skills development while ensuring much needed sustainable jobs.

The Gauteng Smart City will allow the GPG to convert Gauteng into a manufacturing capital of the continent, and create a new export market for ICT. In order to achieve the above, endorsement and intimate participation by all stakeholders, especially the GDED as the project owners and sponsors, is of critical importance. The entire success of this project lies in the hands of the stakeholders, led by the GDED. As an international show-piece, consistent participation by the GDED’s leadership is required to guarantee unprecedented success of the Gauteng Smart City.

While the Gauteng Smart City’s MBPDP will become the development “bible” for the planned development, the delivery thereto requires assistance and intervention from all spheres of government.


SECT




A situational analysis on ICT training programme has been completed with Institute of Technical Education Services (ITEES) a Singapore based company. Furthermore the company has submitted recommendation to build a training centre, which will focus on training engineers and IT skills as they are in demand.

Training

The Department managed to train 1 200 people against the set target of 3 000 during 2012/13 financial year. This was due to lack of funding and guaranteed placement for trained candidates impacted negatively towards achieving this target.

The Department signed agreements with key strategic partners during 2012/13 financial year. This will assist with the training budget as well as ensuring that trained candidates are absorbed and placed in employment opportunities.

4.3.4 Green Economy Programme Management Office

Industrial Waste Exchange Programme (IWEX)

Industrial Waste Exchange Programme (IWEX) is meant to create a platform for Industries to exchange their waste material or by-products. The Sedibeng Municipality developed a business plan for IWEX and requested financial support from the Department to pilot this initiative.

The Green PMO examined the business plan and a decision to sponsor this initiative was taken. In the year under review, the Department was unable to appoint a service provider for the Industrial Waste Exchange (IWEX) due to submissions from potential candidates not meeting the minimum criteria. The Request for Proposal (RFP) was published twice and there were no suitable companies with relevant skills and expertise to implement this programme within the Gauteng Province. This programme will be implemented in the new financial year.

Medical Waste Treatment Facility

Medical Waste Treatment Facility is a medium term plan outcome. The intention is to establish a facility that will treat healthcare waste produced by public institutions by using cleaner technologies.

Healthcare waste management has been identified as one of the priority issues in the National Waste Management Strategy and the Gauteng Provincial Government (GPG) acknowledges that proper management of health care waste has important social consequences and can be utilised to achieve some socio-economic objectives.

The Department has managed to conduct and conclude a feasibility study towards the establishment of this facility during the financial year under review. This project will be handed over to the Department of Health for implementation during 2013/14 financial year.

The Department has not achieved the planned annual target to operationalise medical waste treatment facility due to delays in the

appointment of a Green PMO and late take off of the project in the financial year under review. The feasibility study has been completed.

The Deployment of Gas Infrastructure

The deployment of Gas Infrastructure is another important initiative related to alternative energy solutions for the Province. However, the investment in gas infrastructure was independently implemented by some stakeholders with limited or no collaboration. The Department intends to conduct a research so as to understand the existence of this infrastructure in the Province particularly for household utilisation. Unfortunately, due to financial constraints this target was not achieved.

Waste to Energy Plant

Waste to energy plant and conversion of sewer treatment facilities is seen as viable alternative energy option and is highly supported in the Province through various strategies. The project scope has been broadened from the initial focus on Sedibeng Municipality to include West Rand Municipality. This process has caused delays towards achieving this target. However, work has commenced as the feasibility study has been funded by the Gauteng Funding Agency (GFA) to be concluded during 2013/14 financial year.

The appointment of service provider was delayed as the procurement process only commenced during quarter three of the financial year and this process is handled by GFA as the project sponsor.

The Green Programme Office will strengthen its coordination, monitoring and evaluation efforts, build on collaboration with all the spheres of government and mobilise required finances through the private sector to accelerate the implementation of Green Programmes within the Province.


SECT

ION 04


TAB

LE 3

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

Gr

OW

TH

AN

D D

EVEL

OPM

ENT

AG

ENC

Y S

UB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Stra

tegi

c ec

onom

ic in

frast

ruct

ure

stim

ulat

ing

empl

oym

ent-l

ed g

row

th a

nd d

evel

opm

ent

Perc

enta

ge

com

plet

ion

of

Tam

bo S

prin

gs

Inla

nd P

ort

–30

-N

ot A

pplic

able

The

proj

ect w

as h

ande

d ov

er to

the

Gau

teng

Dep

artm

ent

of Tr

ansp

ort.

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Cum

ulat

ive

num

ber o

f Cr

afts

men

and

de

signe

rs tr

aine

d

–30

32Ac

hiev

edAv

aila

bilit

y of

bud

get a

nd a

dher

ence

to th

e SL

A en

sure

d th

at th

e pr

ojec

t unf

old

as p

lann

ed.

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Num

ber o

f fu

rnitu

re S

MM

E’S

supp

orte

d w

ith

expo

rt m

arke

ting

–50

50Ac

hiev

edTe

n G

aute

ng F

urni

ture

man

ufac

ture

rs w

ere

supp

orte

d w

ith e

xpor

t mar

ketin

g by

par

ticip

atin

g at

DEC

ORE

X in

Au

gust

201

2 an

d th

e ba

lanc

e of

20

com

pani

es w

ere

prov

ided

with

sup

port

at th

e HO

MEM

AKER

S EX

PO,

whi

ch to

ok p

lace

in F

eb 2

013.

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Perc

enta

ge

esta

blish

men

t of

Niss

an S

imul

atio

n pr

ojec

t

–10

010

0Ac

hiev

edAd

here

nce

to G

aute

ng tr

aini

ng a

cade

my

Phas

e1:

Clas

sroo

m b

uild

ing

in li

ne w

ith th

e pr

ojec

t tim

efra

mes

.

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Num

ber o

f be

nefic

iarie

s fro

m Y

outh

re

skill

ing

and

tech

nica

l tra

inin

g pr

ogra

mm

e

–20

51Ac

hiev

edSu

cces

sful

neg

otia

tions

with

the

serv

ice p

rovi

der t

o lo

wer

th

e pr

ices.

The

Depa

rtmen

t man

aged

to s

urpa

ss th

e pl

anne

d ta

rget

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Num

ber o

f be

nefic

iarie

s fro

m M

ento

rshi

p pr

ogra

mm

e fo

r bo

dy re

pair

shop

s

–70

40N

ot A

chie

ved

The

annu

al ta

rget

was

not

met

, as

targ

eted

ben

eficia

ries

coul

d no

t be

reac

hed.

How

ever

, the

AID

C w

as a

ble

to

extra

ct th

e be

st o

ppor

tuni

ties

for t

he in

form

al s

ecto

r en

trepr

eneu

rs re

sulti

ng in

trai

ning

of 6

3 tra

inee

s on

te

chni

cal i

ssue

s.



TAB

LE 3

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

Gr

OW

THA

ND

DEV

ELO

PMEN

T A

GEN

CY

SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Num

ber o

f peo

ple

empl

oyed

via

FO

RD T

6 SM

ME

Incu

bato

r

–40

40Ac

hiev

edTa

rget

ach

ieve

d du

e to

incr

ease

d de

man

d at

FO

RD. T

he

exist

ing

pool

of S

MM

Es e

nabl

ed A

IDC

to re

spon

d to

the

incr

ease

d de

man

d.

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Num

ber o

f peo

ple

train

ed a

t FO

RD

SIM

ULAT

OR

and

Trai

ning

Aca

dem

y

–88

02

060

Achi

eved

The

exce

ss n

umbe

r of p

eopl

e tra

ined

was

due

to

incr

ease

d pr

oduc

tion

dem

and

at F

ord

Re-In

dust

rialis

atio

n to

sup

port

the

grow

th o

f lab

our-

inte

nsiv

e in

dust

ries

Num

ber o

f st

uden

ts

parti

cipat

ing

in

Duba

i stu

dent

s tra

inin

g

–10

030

Not

Ach

ieve

dTh

e pl

acem

ent o

f the

stu

dent

s fo

r the

Dub

ai tr

aini

ng

was

del

ayed

in th

e ye

ar u

nder

revi

ew d

ue to

a c

hang

e in

th

e pl

acem

ent s

trate

gy o

f Mot

hers

on. M

othe

rson

will

be

enga

ged

in th

e fir

st q

uarte

r of 2

013/

14 to

fast

trac

k th

e pl

acem

ent o

f the

stu

dent

s.

Stra

tegi

c ec

onom

ic in

frast

ruct

ure

stim

ulat

ing

empl

oym

ent-l

ed g

row

th a

nd d

evel

opm

ent

Perc

enta

ge

com

plet

ion

of Je

wel

lery

M

anuf

actu

ring

Prec

inct

– 5

030

Not

Ach

ieve

dTh

e De

partm

ent h

as n

ot a

chie

ved

plan

ned

targ

et d

ue

to a

num

ber o

f cha

lleng

es re

latin

g to

the

acqu

isitio

n of

la

nd a

nd th

e pe

ndin

g ch

ange

s in

the

SEZ

requ

irem

ents

ne

cess

itate

d a

revi

ew o

f the

orig

inal

pla

n.

Stra

tegi

c ec

onom

ic in

frast

ruct

ure

stim

ulat

ing

empl

oym

ent-l

ed g

row

th a

nd d

evel

opm

ent

Num

ber o

f st

uden

ts

grad

uatin

g fro

m

JMP

train

ing

–10

15Ac

hiev

edTa

rget

ach

ieve

d th

roug

h pl

acem

ent o

f adv

erts

in th

e m

edia

, the

GG

DA w

as a

ble

to e

stab

lish

a po

ol o

f sui

tabl

e ca

ndid

ates

.

Stra

tegi

c ec

onom

ic in

frast

ruct

ure

stim

ulat

ing

empl

oym

ent-l

ed g

row

th a

nd d

evel

opm

ent

Perc

enta

ge

com

plet

ion

of

Wes

t Ran

d Fr

eigh

t and

Lo

gist

ics H

ub

–30

-N

ot A

pplic

able

The

proj

ect w

as h

ande

d ov

er to

the

Gau

teng

Dep

artm

ent

of Tr

ansp

ort.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Num

ber o

f co

mpa

nies

in

incu

batio

n

–8

9Ac

hiev

edTa

rget

ach

ieve

d du

e to

the

acce

ptan

ce o

f com

pani

es

from

the

MLa

b pi

pelin

e an

d G

aute

ng in

nova

tion

com

petit

ion

into

the

incu

batio

n pr

ogra

mm

e.

SECTION 04


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04TA

BLE

3.1

: Pr

OV

INC

IAL

TAr

GET

S Fr

OM

201

2/13

AN

NU

AL

PEr

FOr

MA

NC

E PL

AN

FO

r G

AU

TEN

G G

rO

WTH

A

ND

DEV

ELO

PMEN

T A

GEN

CY

SU

B-P

rO

Gr

AM

ME

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Num

ber o

f new

de

velo

pers

su

ppor

ted

to

com

mer

cialis

e th

eir i

nnov

atio

ns

–10

13Ac

hiev

edTh

e an

nual

targ

et w

as a

chie

ved

due

to th

e po

pula

rity

of

the

Mla

b pr

ogra

mm

e an

d its

nat

ural

attr

actio

n of

new

en

trepr

eneu

rs w

ith g

ood

idea

s.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Num

ber

of S

MM

E’s

(Ent

repr

eneu

rs)

incu

bate

d vi

a G

aute

ng

Inno

vatio

n Co

mpe

titio

n

–7

7 Ac

hiev

edTh

e De

partm

ent m

anag

ed to

ach

ieve

the

plan

ned

targ

et

as re

sult

of th

e G

aute

ng In

nova

tion

Com

petit

ion

whi

ch

allo

wed

iden

tifica

tion

of s

uita

ble

com

pani

es.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Num

ber o

f in

nova

tions

co

mm

ercia

lised

di

rect

ed a

t im

prov

ing

serv

ice d

eliv

ery

(Inno

vatio

n Hu

b Ex

chan

ge)

–5

0N

ot A

chie

ved

The

annu

al ta

rget

was

not

ach

ieve

d du

e to

the

pend

ing

final

izatio

n of

inno

vatio

ns fo

r com

mer

cialis

atio

n.

How

ever

, the

re a

re F

ive

(5) l

ette

rs o

f int

ent t

o co

mm

ercia

lise

inno

vatio

ns in

the

2013

/201

4 fin

ancia

l ye

ar.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Num

ber o

f co

mpa

nies

in p

re-

incu

batio

n

–26

22Pa

rtial

ly Ac

hiev

edTa

rget

not

ach

ieve

d du

e to

app

licat

ions

not

mee

ting

the

requ

ired

entry

crit

eria

and

as

such

cou

ld n

ot b

e ac

cept

ed

into

the

prog

ram

me.

A d

edica

ted

recr

uitm

ent d

rive

for

pre-

incu

bate

es w

ill b

e ex

ecut

ed in

201

3/14

fina

ncia

l ye

ar.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

com

plet

ion

of C

limat

e In

nova

tion

Cent

re

–10

010

0Ac

hiev

edTh

e pr

ojec

t was

suc

cess

fully

con

clude

d du

e to

the

close

r w

orki

ng re

latio

nshi

p be

twee

n TI

H, th

e W

orld

Ban

k an

d Pr

ojec

t Im

plem

ento

rs.


TAB

LE 3

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

Gr

OW

TH

AN

D D

EVEL

OPM

ENT

AG

ENC

Y S

UB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

com

plet

ion

of

Phar

ma

Park

–30

5N

ot A

chie

ved

The

Depa

rtmen

t was

una

ble

to a

chie

ve th

e pl

anne

d ta

rget

sin

ce th

e Ph

arm

a Pa

rk p

roje

ct w

as a

band

oned

and

w

ill b

e al

igne

d w

ith th

e Bi

oScie

nce

proj

ect i

nitia

tive.

Gre

en E

cono

my

inte

rven

tions

to s

uppo

rt su

stai

nabl

e ec

onom

ic gr

owth

and

dev

elop

men

tN

umbe

r of

Hect

ares

of

Mor

inga

pl

anta

tion

–40

41Ac

hiev

edTh

e an

nual

targ

et w

as a

chie

ved

follo

win

g th

e em

ploy

men

t of a

dditi

onal

tem

pora

ry w

orke

rs e

mpl

oyed

to

fina

lise

plan

ting

on th

e 41

hec

tare

s pl

ante

d du

ring

the

year

und

er re

view

.

Gre

en E

cono

my

inte

rven

tions

to s

uppo

rt su

stai

nabl

e ec

onom

ic gr

owth

and

dev

elop

men

tPe

rcen

tage

es

tabl

ishm

ent o

f AW

ESO

ME

plan

t

–20

10N

ot A

chie

ved

Appo

intm

ent o

f ser

vice

pro

vide

r del

ayed

as

the

proc

urem

ent p

roce

ss c

omm

ence

d du

ring

quar

ter 3

of t

he

finan

cial y

ear a

nd th

is pr

oces

s is

hand

led

by G

FA, a

s th

ey

are

the

proj

ect s

pons

ors.

Th

is pr

ojec

t has

bee

n in

clude

d in

the

2013

/ 201

4 an

nual

pl

an a

nd th

e of

fice

is pl

anni

ng to

fina

lise

the

deliv

erab

les

with

in 6

mon

ths

of a

ppoi

ntin

g th

e se

rvice

pro

vide

r.

Trad

e an

d In

vest

men

t Pro

mot

ion

Num

ber o

f ta

rget

ed F

DI

inve

stm

ents

di

rect

ly fa

cilita

ted

36

6Ac

hiev

edTh

e De

partm

ent m

anag

ed to

ach

ieve

its

annu

al ta

rget

an

d th

is w

as d

ue to

the

appr

oval

of l

icenc

es fo

r pro

ject

s, se

curin

g of

sui

tabl

e la

nd a

nd a

vaila

bilit

y of

bul

k se

rvice

s

Trad

e an

d In

vest

men

t Pro

mot

ion

Num

ber o

f ta

rget

ed G

aute

ng

led

miss

ions

to

Afric

a fa

cilita

ted

–13

4N

ot A

chie

ved

Targ

et n

ot a

chie

ved

due

to th

e fa

ct th

at th

e pr

ojec

t was

de

pend

able

on

spon

sors

hip

by d

ti.

Trad

e an

d In

vest

men

t Pro

mot

ion

Num

ber o

f ta

rget

ed D

DI

inve

stm

ents

di

rect

ly fa

cilita

ted

57

11Ac

hiev

edDD

Is fa

cilita

ted

inve

stm

ents

in th

e fo

llow

ing

sect

ors:

Prop

erty

Dev

elop

men

t, IC

T an

d BP

O, To

urism

, Agr

icultu

re,

Fash

ion

Indu

stry

and

the

Ener

gy In

dust

ry

SECTION 04


SECTION 04TA

BLE

3.1

: Pr

OV

INC

IAL

TAr

GET

S Fr

OM

201

2/13

AN

NU

AL

PEr

FOr

MA

NC

E PL

AN

FO

r G

AU

TEN

G G

rO

WTH

A

ND

DEV

ELO

PMEN

T A

GEN

CY

SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Trad

e an

d In

vest

men

t Pro

mot

ion

Num

ber o

f en

terp

rises

su

ppor

ted

to b

e ex

port

read

y pe

r an

num

190

1 00

011

9N

ot A

chie

ved

The

plan

ned

targ

et w

as n

ot a

chie

ved

as a

resu

lt of

the

late

pro

ject

sig

n of

f, Id

entifi

catio

n an

d th

e ap

poin

tmen

t of

the

serv

ice p

rovi

der f

or c

ondu

ctin

g th

e tra

inin

g.

Sust

aina

ble

empl

oym

ent c

reat

ion

Dire

ct p

erm

anen

t jo

b cr

eate

d vi

a DE

D pr

ogra

mm

es

2 25

03

123

2 44

1N

ot A

chie

ved

Som

e of

the

proj

ects

, whi

ch w

ere

in th

e pi

pelin

e, c

ould

no

t com

e to

frui

tion

in th

e fo

urth

qua

rter o

f the

yea

r un

der r

evie

w. P

roje

ct s

pons

ors

will

be

enga

ged

for

com

mitm

ent o

n jo

b cr

eatio

n in

the

first

qua

rter o

f the

20

13/1

4 fin

ancia

l yea

r.

Sust

aina

ble

empl

oym

ent c

reat

ion

Dire

ct te

mpo

rary

jo

b cr

eate

d vi

a DE

D pr

ogra

mm

es

1 87

81

344

2 22

9Ac

hiev

edTh

e co

ntra

ctor

app

oint

ed to

upg

rade

the

wat

er s

yste

m a

t SP

DC m

anag

ed to

em

ploy

mor

e pe

ople

than

pla

nned

.


TAB

LE 3

.2: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

TO

Ur

ISM

A

GEN

CY,

Cr

AD

LE O

F H

UM

AN

KIN

D A

ND

DIN

OK

ENG

SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Tour

ism s

ecto

r dev

elop

men

t to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

rege

nera

tion

of

Ga-

Rank

uwa

Hote

l Sch

ool

–70

40N

ot A

chie

ved

The

trans

fer o

f the

Hot

el S

choo

l fro

m N

orth

Wes

t Pr

ovin

ce to

Gau

teng

is s

till o

utst

andi

ng d

ue to

bud

geta

ry

cons

train

ts. H

owev

er, a

n in

terim

task

team

is in

pla

ce a

nd

mee

tings

are

bei

ng h

eld

bi-w

eekl

y to

fast

-trac

k th

e pa

ce

of th

is pr

ojec

t.

In a

dditi

on m

onth

ly m

eetin

gs a

re b

eing

hel

d w

ith th

e N

orth

Wes

t Pro

vinc

e to

ens

ure

a sm

ooth

tran

sfer

of t

he

inst

itutio

n.

Tour

ism s

ecto

r dev

elop

men

t to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

upgr

ade

of

Mar

open

g To

urism

in

frast

ruct

ure

–10

030

Not

Ach

ieve

dTh

e ta

rget

cou

ld n

ot b

e m

et d

ue to

oth

er o

utst

andi

ng

lega

litie

s, w

hich

are

sta

lling

pro

gres

s of

the

proj

ect,

whi

ch in

clude

s th

e te

rmin

atio

n of

the

cont

ract

of t

he

serv

ice p

rovi

der f

or th

e up

grad

e of

the

exhi

bitio

ns a

t St

erkf

onte

in a

nd M

arop

eng

due

to p

oor q

ualit

y w

ork

cond

ucte

d.

Tour

ism s

ecto

r dev

elop

men

t to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Num

ber o

f loc

al

com

mun

ity

mem

bers

em

ploy

ed a

s sa

fety

mon

itors

an

nual

ly

–40

040

0Ac

hiev

ed40

0 to

urism

saf

ety

mon

itors

wer

e em

ploy

ed in

the

Crad

le

of H

uman

kind

Wor

ld H

erita

ge S

ite a

nd D

inok

eng

area

s.

The

proj

ect w

as a

suc

cess

.

Tour

ism s

ecto

r dev

elop

men

t to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

com

plet

ion

of

VIC

proj

ect

–10

010

0Ac

hiev

edTh

e pr

ojec

t was

ach

ieve

d w

hich

inclu

des

the

final

izatio

n of

the

Visit

or In

form

atio

n Ce

ntre

(VIC

) pro

ject

at O

R Ta

mbo

Inte

rnat

iona

l Airp

ort.

Sust

aina

ble

empl

oym

ent c

reat

ion

Dire

ct p

erm

anen

t jo

bs c

reat

ed v

ia

DED

prog

ram

mes

370

6 53

536

Not

Ach

ieve

dTh

e ta

rget

was

not

ach

ieve

d du

e to

lack

of c

apac

ity a

nd

syst

ems

to c

olle

ct th

e re

quire

d da

ta in

tern

ally.

The

actu

al

curre

nt d

ata

inclu

ded

is pu

rely

for t

he d

irect

jobs

cre

ated

in

the

Crad

le o

f Hum

anki

nd W

orld

Her

itage

Site

and

Di

noke

ng a

reas

. Th

ere

will

be

enga

gem

ent w

ith S

tats

SA

to e

stab

lish

the

right

tool

s to

col

lect

the

prov

incia

l dat

a.

SECTION 04


SECTION 04TA

BLE

3.2

: Pr

OV

INC

IAL

TAr

GET

S Fr

OM

201

2/13

AN

NU

AL

PEr

FOr

MA

NC

E PL

AN

FO

r G

AU

TEN

G T

OU

rIS

M

AG

ENC

Y, C

rA

DLE

OF

HU

MA

NK

IND

AN

D D

INO

KEN

G S

UB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Sust

aina

ble

empl

oym

ent c

reat

ion

Dire

ct Te

mpo

rary

jo

bs c

reat

ed v

ia

DED

prog

ram

mes

–1

705

6 17

2N

ot A

chie

ved

The

targ

et w

as n

ot a

chie

ved

due

to la

ck o

f cap

acity

and

sy

stem

s to

col

lect

the

requ

ired

data

inte

rnal

ly. Th

e ac

tual

cu

rrent

dat

a in

clude

d is

pure

ly fo

r the

dire

ct jo

bs c

reat

ed

in th

e Cr

adle

of H

uman

kind

Wor

ld H

erita

ge S

ite a

nd

Dino

keng

are

as.

Ther

e w

ill b

e en

gage

men

t with

Sta

ts S

A to

est

ablis

h th

e rig

ht to

ols

to c

olle

ct th

e pr

ovin

cial d

ata.


TAB

LE3.

3: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

ICT

PrO

Gr

AM

ME

MA

NA

GEM

ENT

OFF

ICE

SUB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

com

plet

ion

of

indu

stria

l mod

el

desig

n

–10

090

Parti

ally

Achi

eved

The

targ

et w

as n

ot a

chie

ved

due

to d

elay

s in

the

trans

fer

of la

nd. T

he D

epar

tmen

t will

con

sult

with

the

Depa

rtmen

t of

Pub

lic W

orks

to u

nloc

k th

e bl

ocka

ges

for c

ompl

etin

g la

nd tr

ansf

er.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

com

plet

ion

of re

al

esta

te c

omm

ercia

l fe

asib

ility

stu

dy

–10

090

Parti

ally

Achi

eved

The

targ

et w

as n

ot a

chie

ved

due

to d

elay

s in

the

trans

fer

of la

nd. T

he D

epar

tmen

t will

con

sult

with

the

Depa

rtmen

t of

Pub

lic W

orks

to u

nloc

k th

e bl

ocka

ges

for c

ompl

etin

g la

nd tr

ansf

er.

Build

ing

an in

nova

tion

and

know

ledg

e-ba

sed

econ

omy

to

driv

e co

mpe

titiv

enes

s an

d ec

onom

ic gr

owth

Perc

enta

ge

com

plet

ion

of

serv

ice m

odel

de

sign

–10

010

0Ac

hiev

edTh

e De

partm

ent h

as m

anag

ed to

ach

ieve

the

plan

ned

targ

et; a

lthou

gh th

ere

are

maj

or d

elay

s to

the

ICT

infra

stru

ctur

e de

signs

that

hav

e be

en c

ause

d by

lack

of

info

rmat

ion

acce

ss o

n th

e IB

C in

frast

ruct

ure

Arch

itect

ure

form

the

DOC,

thus

not

fully

kno

win

g th

e ex

tent

and

de

sign

of e

xist

ing

infra

stru

ctur

e w

ithin

the

Nas

rec

Prec

inct

.

The

Depa

rtmen

t has

eng

aged

Telk

om w

ho a

re th

e ow

ners

of t

he in

frast

ruct

ure

and

a te

chni

cal t

eam

has

be

en e

stab

lishe

d be

twee

n th

e tw

o De

partm

ents

to

ensu

re th

at w

e ac

cess

to a

ll th

e re

quire

d in

form

atio

n as

w

ell f

utur

e ro

llout

pla

ns.

SECTION 04


TAB

LE 3

.4: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

Gr

EEN

Pr

OG

rA

MM

E M

AN

AG

EMEN

T O

FFIC

E SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Gre

en E

cono

my

inte

rven

tions

to s

uppo

rt su

stai

nabl

e ec

onom

ic gr

owth

and

dev

elop

men

t%

Im

plem

enta

tion

of IW

EX

–10

040

Not

Ach

ieve

dTh

e ta

rget

was

not

ach

ieve

d du

e to

the

diffi

culty

to

acqu

ire s

ervi

ces

of s

kille

d co

nsul

tant

s to

impl

emen

t the

pr

ojec

t.

Gre

en E

cono

my

inte

rven

tions

to s

uppo

rt su

stai

nabl

e ec

onom

ic gr

owth

and

dev

elop

men

tO

pera

tiona

l pilo

t m

edica

l was

te

treat

men

t fac

ility

–30

9N

ot A

chie

ved

Targ

et n

ot a

chie

ved

due

to d

elay

s in

the

appo

intm

ent o

f a

Gre

en P

MO

and

late

take

-off

of th

e pr

ojec

t in

the

year

un

der r

evie

w. T

he fe

asib

ility

stu

dy h

as b

een

com

plet

ed.

Gre

en E

cono

my

inte

rven

tions

to s

uppo

rt su

stai

nabl

e ec

onom

ic gr

owth

and

dev

elop

men

t%

Dep

loym

ent o

f G

as In

frast

ruct

ure

–20

8N

ot A

chie

ved

The

plan

ned

targ

et w

as n

ot a

chie

ved

due

to d

elay

s in

ap

poin

tmen

t of s

ervi

ce p

rovi

der.

Gre

en E

cono

my

inte

rven

tions

to s

uppo

rt su

stai

nabl

e ec

onom

ic gr

owth

and

dev

elop

men

t%

Com

plet

ion

of

was

te to

ene

rgy

plan

ts

–30

10N

ot A

chie

ved

Appo

intm

ent o

f ser

vice

pro

vide

r del

ayed

as

the

proc

urem

ent p

roce

ss c

omm

ence

d du

ring

quar

ter 3

of t

he

finan

cial y

ear a

nd th

is pr

oces

s is

hand

led

by G

FA a

s th

ey

are

the

proj

ect s

pons

ors.


4.4 PrOGrAMME 4: BUSINESS rEGULATIONS AND GOVErNANCE

The purpose of the programme is to enhance transparency, greater integrity and accountability by providing leadership in effectual enterprise governance.

The programme objective is to lobby against and address barriers in the broader business environment which inhibit business development, implement and promote measures that ensure the rights and interest of all consumers, promote and maintain an effective and efficient accountability of Agencies through effectual governance, regulation and compliance. Furthermore monitor and evaluate the impact of the Broad-Based Black Economic Empowerment (BBBEE).

In this regard, the programme will enhance the association of the Department with its agencies on issues of policy implementation and delivery as well as support functions. It will ensure effective and efficient corporate governance; and the implementation of projects by the agencies; monitor and evaluate the impact of the BBBEE and manage Consumer Affairs issues through the following internal controls:

Legislative framework; Administrative infrastructure; Meeting deadlines in terms of reporting; Qualified staff and committed leadership; Consumer Act and Consumer Court; Political Support; Management Support; and Agencies specialised focus and skills

4.4.1 Liquor Regulation

In the financial year under review, the Department received 3 546 applications which were above the annual target of 1 863. Although the target is demand driven and thereby not within the Department’s control, this target was exceeded due to education and awareness workshops and blitz which were conducted to ensure Compliance and Enforcement. Furthermore, this could also be attributed to proper management and implementation of Liquor System for occasional permit applications which were to be lodged remotely and increased as a result of African Cup of Nations (AFCON) which was held between months of January and February 2013 in the country; and the illegal traders whose businesses were closed down and advised to apply for authentic licenses.

The Department issued a total of 1 685 licenses, 120 applications received and prepared for Board’s consideration as well as the compilation of conversion database for the last three years and reconciliation.

The Department conducted a total of 2 735 proactive inspections against the planned target of 1 800. This achievement could be attributed to joint operations conducted with other law enforcement agencies, adequate tools of trade allocated to Inspectorate unit and internal capacity to execute duties.

A total of 1 604 licences were issued against a planned target of 1 000. This was realised due to the receiving of correct completed applications, most applicants complying with the requirements of the Act and other applicants, which were granted licenses on conditions imposed by the Board.

A total of 1 953 pre-inspections were conducted against 800 planned targets. The target was exceeded due to the appointment of a separate group of inspectors which concentrated mainly on this assignment. This achievement could be attributed to adequate tools of trade allocated to Inspectorate unit and human capacity to execute duties.

The Board considered a total of 89% of applications received within a prescribed turn-around times of 90 days. This was due to the appointment of additional Board members and all Board meetings were held as scheduled to process applications within the prescribed turnaround time and three meetings had taken place per week.

The Department managed to conduct a total of 4 785 inspections against a planned target of 2 600. Of the total, 2 735, 1 953 and 97, were achievement derived from proactive, pre-, and post- inspections respectively. The target was achieved because most applications submitted to the Board were complete and the proposed premises complied with the requirements of the licenses applied for. There were few applications that required this type of inspection to be conducted and therefore, majority of licenses were granted by the Board without conditions.

Total revenue of R23 million was achieved against the planned target of R40 million. The target of R40 million was not informed by any plan and baseline due to unavailability of a credible database to make predictions and justify the set target.

The Liquor Administration, Financial Management with the assistance of Information Technology is in the process of creating a Liquor Database, which will in future be used for revenue collection projections. This will assist the Department to make sound projections in future.

Education and awareness workshops were successfully implemented as planned. This was due to the secondment of personnel from Consumer Affairs, budget availability and joint efforts with other GPG Departments and external Liquor Stakeholders. However, research has revealed that there were increasing patterns of under age drinking by school going minors. Therefore, the Department will need to consult with Gauteng Department of Education so as to consider incorporate liquor awareness studies and its effects in the schools syllabus.

4.4.2 Gambling and Betting

In the financial year under review, the Gauteng Gambling Board achieved all its targets except one relating to the licensing of new enterprises. The Board has, since May 2012, been headed by the Administrator. In terms of Section 18C of the Gauteng Gambling Act, No.4 of 1995, as amended; the Administrator has all the necessary powers except for approval or revocation of licenses. Consequently, licenses could be issued for the applicable period.


SECT

ION 04


Provisional revenue collection has shown an increase from the previous year’s R701m to R772m exceeding the tax budget by 10,13%.

There has been an increase in achievement of the following targets: Planned raids due to the increased availability of members of the

South African Police Services (SAPS) and information on illegal gambling; and Resolution of punter disputes due to the cooperation and

assistance by the Bookmakers Association.

Further, the Board as part of corporate social investment strategy aimed at alleviating poverty and socio economic challenges in the community provided financial grants to sixteen community organisations to an amount of R9 234 million.

4.4.3 Consumer Protection

The Department received a total of 1 828 complaints against a planned target of 1 815. Although this function is demand driven and the Department does not have direct control, the target was exceeded mainly as a result of aggressive marketing of consumer rights and public awareness conducted.

A total of 1 774 complaints were resolved against a planned target of 1 633. The target was achieved due to the appointment of an investigator which has increased capacity to resolve complaints received. During the current financial year, a total of 91 education and awareness workshops were conducted against a planned target of 70 due to the appointment of additional three education officers.

The Department has also extended its outreach programmes to the West Rand and Bronkhorstspruit in northern Tshwane. Joint workshops with funeral industry Federations and faith-based organisations were conducted. The campaign was heightened during the commemoration of World Consumer Rights Day at Merafong which attracted approximately 5 000 consumers.

4.4.4 Broad Based Black Economic Empowerment

In the financial year under review, the Department engaged a total of 23 target groups on existing economic opportunities within government against a planned target of 16 through education and awareness opportunities. The planned target was exceeded due to designation of sectors by the dti and the Gauteng Strategic Procurement Framework Policy 2012 which became effective on the 1st December 2012 and presented economic opportunities available in the Province and this was shared with the public.

A total of 41 specific interventions were held against a planned target of 16. The planned target was exceeded due to Section 9 of the new PPPFA / B-BBEE Regulations (2011) which became effective in December 2011 that had put emphasis on Local Content and local manufacturing. This led to the Department having to conduct specific interventions to officials and suppliers within Clothing, Textile, and Footwear and leather industry to enable them to understand it and its implication thereof to tender evaluations and businesses.

GPG Departments spent 68.99% against 75% planned target on the compliance Preferential Procurement in the financial year under review. The non attainment of targets was due to the fact that the demand forecasting was not effective and spending did not occurred in accordance with budget allocations in the different entities. Another factor is that the potential supplier base had been constantly changing but the vendor database had not been updated on regular basis.

The Department will effectively monitor and evaluate compliance on implementation of BBBEE targets to ensure that GPG Departments make every effort towards attaining these targets. It will also develop a new approach so as to work effectively with Women, PwDs and Youth in order to attain the Preferential Procurement Targets. DED will work closely with GDF (Vendor Management Unit) to ensure that the suppliers’ BEE/B-BBEE status is credible and up to date. GPG database should provide a true reflection of the companies that are doing business or trading with.

The table above provides the total GPG procurement spend for the year under review on companies owned by targeted groups (HDI’s, Women, Youth and PwD’s). The province continue not to meet HDI target, however, registered a great improvements in that target by obtaining 68.99%, followed by female with 22.37% spend. The least share spent is on youth and PwD’s with 9.84% and 0.10% respectively.

It is therefore, recommended that GPG Departments exert more effort to ensure that the B-BBEE targets are met specifically preferential procurement spend on Youth and PwD owned companies.

GPG Department should identify, prioritise and select specific negotiable spend projects with the largest potential impact on transformation and achievement of procurement targets and development objectives.


SECT




4.4.5 Agency Oversight

In the year under review the Department enhanced the oversight function over Departmental agencies. A number of initiatives were introduced for that purpose including the strengthening of reporting regularity and mechanisms; reporting platforms and feedback. This has led to improved accountability on the performance of the Department and its agencies in terms of the existing strategies and business plans.


SECT

ION 04

The below table indicates the total GPG Preferential Procurement Spend for the year under review

Company ownership % Set Targets % Spend: April-March 2012/13

HDI’s 75% 68.99%

Female 30% 22.37%

Youth 10% 9.84%

PwD’s 5% 0.10%

Below is a breakdown for GPG Departmental Preferential Procurement spend for the year under review

120.00%

100.00%

80.00%

60.00%

40.00%

20.00%

0.00%

70.39% 78.56% 65.38% 66.12% 103.53% 21.90% 65.16% 55.49% 70.21% 69.18% 84.32% 58.93% 74.94% 58.14% 68.99%

35.03% 25.27% 13.74% 27.48% 9.01% 1.83% 18.15% 23.99% 27.99% 18.26% 36.61% 15.52% 34.69% 22.81% 22.37%

14.83% 10.31% 6.83% 11.84% 0.41% 0.57% 9.61% 11.33% 13.53% 7.36% 27.10% 5.51% 17.24% 21.86% 9.84%

0.03% 0.01% 0.02% 0.06% 0.00% 0.00% 2.91% 0.06% 0.01% 0.02% 4.10% 0.01% 0.48% 0.01% 0.10%

HDI %

Women %

Youth %

PwD %

Ag

ricu

ltu

rean

d R

ura

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evel

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t

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ity

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ty

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elo

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ent

Infr

astr

uct

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Dev

elo

pm

ent

Soci

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evel

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ove

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ent

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on

Fin

ance

Gau

ten

gFu

nd

Offi

ce

Offi

ce f

or

the

Prem

ier

Pub

lic T

ran

spo

rt,

Ro

ads

and

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rts,

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ult

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SECT




TAB

LE 4

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

LIq

UO

r r

EGU

LATI

ON

SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Num

ber o

f lic

ense

s iss

ued

per a

nnum

522

1 00

01

631

Achi

eved

This

coul

d be

attr

ibut

ed to

an

aver

age

of 4

Boa

rd s

ittin

g pe

r wee

k, w

hich

hap

pene

d in

201

2/13

fina

ncia

l yea

r.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Num

ber o

f Aw

aren

ess

and

Educ

atio

n Pr

ogra

mm

es p

er

annu

m

171

8012

9Ac

hiev

edTa

rget

ach

ieve

d du

e to

the

avai

labi

lity

of E

duca

tion

and

Awar

enes

s m

ater

ial,

thre

e ed

ucat

ion

prac

titio

ners

w

ho re

info

rced

the

exist

ing

team

and

add

ition

al h

uman

ca

pacit

y pr

ovid

ed b

y th

ree

inte

rns.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Num

ber o

f ap

plica

tions

re

ceiv

ed p

er

annu

m

2 35

41

863

3 54

6Ac

hiev

edTh

is ac

hiev

emen

t was

due

to w

orks

hops

, inf

orm

atio

n se

ssio

ns th

at w

ere

cond

ucte

d an

d th

e co

mpl

ianc

e an

d en

forc

emen

t blit

z, w

hich

wer

e co

nduc

ted

by C

ompl

ianc

e su

b-un

it.

A siz

eabl

e nu

mbe

r of i

llega

l tra

ders

wer

e sh

ut d

own

and

that

com

pelle

d th

em to

app

ly fo

r lice

nses

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Reve

nue

colle

ctio

n pe

r an

num

24 0

00 0

0040

000

000

23 0

14 6

58N

ot A

chie

ved

Unav

aila

bilit

y of

a c

redi

ble

data

base

to m

ake

pred

ictio

ns

and

just

ify th

e se

t tar

get.

The

Liqu

or A

dmin

istra

tion,

Fi

nanc

ial M

anag

emen

t with

the

assis

tanc

e of

IT is

in

the

proc

ess

of c

reat

ing

a Li

quor

Dat

abas

e, w

hich

will

in

futu

re b

e us

ed fo

r rev

enue

col

lect

ion

proj

ectio

ns. T

his

will

ass

ist th

e De

partm

ent t

o m

ake

soun

d pr

ojec

tions

in

futu

re.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

% o

f app

licat

ions

re

ceiv

ed th

at

are

proc

esse

d in

pr

escr

ibed

turn

-ar

ound

tim

es (9

0 da

ys)

–50

48Pa

rtial

ly Ac

hiev

edTh

e De

partm

ent p

roce

ssed

561

lice

nses

aga

inst

63

1rec

eive

d in

this

finan

cial y

ear. T

his

coul

d be

attr

ibut

ed

to a

n av

erag

e of

4 B

oard

sitt

ings

per

wee

k, w

hich

ha

ppen

ed in

201

2/20

13 fi

nanc

ial y

ear. T

he D

epar

tmen

t re

ceiv

ed 3

546

lice

nse

appl

icatio

ns a

nd 1

689

wer

e pr

oces

sed

with

in th

e pr

escr

ibed

turn

-aro

und

time

of 9

0 da

ys.


TAB

LE 4

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

LIq

UO

r r

EGU

LATI

ON

SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Num

ber o

f pr

oact

ive

insp

ectio

ns p

er

annu

m

–1

800

2 73

5Ac

hiev

edTh

is ac

hiev

emen

t cou

ld b

e at

tribu

ted

to a

dequ

ate

tool

s of

trad

e al

loca

ted

to In

spec

tora

te u

nit a

nd h

uman

ca

pacit

y to

exe

cute

dut

ies.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Num

ber o

f pre

-in

spec

tions

co

nduc

ted

per

annu

m

1 44

01

863

1 95

3Ac

hiev

edTh

e ta

rget

was

ach

ieve

d be

caus

e m

ost a

pplic

atio

ns

subm

itted

to th

e Bo

ard

wer

e co

mpl

ete

and

the

prop

osed

pr

emise

s co

mpl

ied

with

the

requ

irem

ents

of t

he li

cens

es

appl

ied

for. T

here

wer

e fe

w a

pplic

atio

ns th

at re

quire

d th

is ty

pe o

f ins

pect

ion

to b

e co

nduc

ted

and

ther

efor

e th

e Bo

ard

with

out c

ondi

tions

gra

nted

maj

ority

of l

icens

es.

This

achi

evem

ent c

ould

be

attri

bute

d to

ade

quat

e to

ols

of tr

ade

allo

cate

d to

Insp

ecto

rate

uni

t and

hum

an

capa

city

to e

xecu

te d

utie

s.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

liquo

r ind

ustry

, en

surin

g et

hica

l bus

ines

s pr

actic

e an

d em

pow

ered

st

akeh

olde

rs

Num

ber o

f in

spec

tions

co

nduc

ted

per

annu

m

155

2 60

04

785

Achi

eved

The

Depa

rtmen

t man

aged

to c

ondu

ct a

tota

l of 4

785

in

spec

tions

by

the

end

of th

e fo

urth

qua

rter.

Of t

he to

tal,

2 73

5, 1

953

and

97,

wer

e ac

hiev

emen

t der

ived

from

pr

oact

ive,

pre

-, an

d po

st- i

nspe

ctio

ns re

spec

tivel

y.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Num

ber o

f peo

ple

reac

hed

thro

ugh

awar

enes

s pr

ogra

mm

es p

er

annu

m

4 50

0 00

05

000

000

11 7

15 0

92Ac

hiev

edTh

is w

as d

ue to

med

ia c

ampa

igns

und

erta

ken

durin

g th

e ye

ar u

nder

revi

ew.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

1% o

f rev

enue

co

llect

ed

dire

cted

at s

ocia

l re

spon

sibili

ty

prog

ram

mes

im

plem

ente

d pe

r an

num

–40

0 00

023

0 14

6N

ot A

chie

ved

Targ

et n

ot a

chie

ved

due

to G

LB S

ocia

l Res

pons

ibili

ty P

lan

that

has

not

bee

n im

plem

ente

d. Th

e De

partm

ent w

ill

ensu

re th

at id

entifi

ed p

rogr

amm

es in

the

impl

emen

tatio

n pl

an a

re s

uppo

rted

in th

e ne

w fi

nanc

ial y

ear.

SECTION 04


TAB

LE 4

.1: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

LIq

UO

r r

EGU

LATI

ON

SU

B-P

rO

Gr

AM

ME

TAB

LE 4

.2: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

G

AM

BLI

NG

BO

Ar

D S

UB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Num

ber o

f soc

ial

resp

onsib

ility

pr

ogra

mm

es

cond

ucte

d pe

r an

num

–1

0N

ot A

chie

ved

Targ

et n

ot a

chie

ved

due

to G

LB S

ocia

l Res

pons

ibili

ty P

lan

that

has

not

bee

n im

plem

ente

d. Th

e De

partm

ent w

ill

ensu

re th

at id

entifi

ed p

rogr

amm

es in

the

impl

emen

tatio

n pl

an a

re s

uppo

rted

in th

e ne

w fi

nanc

ial y

ear.

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Tax

rand

val

ue o

f re

venu

e co

llect

ion

per a

nnum

701

300

000

709

000

000

772

000

000

Achi

eved

The

syst

em u

sed

by th

e Ag

ency

to c

olle

ct re

venu

e is

effic

ient

and

the

proc

ess

is al

way

s st

rictly

adh

ered

to

ensu

ring

that

reve

nue

due

is al

way

s ac

coun

ted

for.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Rand

val

ue o

f lic

ense

fee

and

othe

r rev

enue

co

llect

ed p

er

annu

m

127

300

000

103

000

000

108

460

000

Achi

eved

Levi

es c

olle

cted

hav

e in

crea

sed

cons

ider

ably

due

to th

e po

pula

rity

of s

port

betti

ng; h

ence

the

targ

et is

sur

pass

ed

by a

ppro

xim

atel

y 5%

.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

% o

f gam

blin

g lic

ense

s iss

ued

(app

rove

d) p

er

annu

m

–10

0 6

7 N

ot A

chie

ved

In th

e ye

ar u

nder

revi

ew, t

he B

oard

rece

ived

167

3 lic

ense

ap

plica

tions

and

112

0 lic

ense

s w

ere

issue

d. H

owev

er,

the

plan

ned

targ

et w

as n

ot a

chie

ved

beca

use

since

May

20

12, t

he A

dmin

istra

tor w

ho a

ccor

ding

to th

e G

aute

ng

Gam

blin

g Ac

t can

not a

ppro

ve o

r rev

oke

licen

ses,

head

s th

e Bo

ard;

hen

ce n

o lic

ense

s re

latin

g to

new

ent

ities

co

uld

be is

sued

in th

e pe

riod

unde

r rev

iew

.


TAB

LE 4

.2: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

GA

UTE

NG

G

AM

BLI

NG

BO

Ar

D S

UB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

% c

ompl

aint

s re

solv

ed p

er

annu

m

7565

89

Achi

eved

The

Boar

d ha

s m

aint

aine

d a

good

wor

king

rela

tions

hip

with

the

Book

mak

ers A

ssoc

iatio

n, w

hich

ass

isted

in

reso

lvin

g th

e pu

nter

s di

sput

es; a

s a

resu

lt th

e ta

rget

is

over

ach

ieve

d.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Num

ber o

f co

mpl

ianc

e au

dits

con

duct

ed

on g

ambl

ing

licen

sees

per

an

num

156

114

142

Achi

eved

Ther

e w

as c

oope

ratio

n fro

m li

cens

ees

and

the

info

rmat

ion

was

sub

mitt

ed ti

meo

usly.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

% P

lann

ed ra

ids

cond

ucte

d pe

r an

num

167

100

411

Achi

eved

Targ

et a

chie

ved

as a

resu

lt of

goo

d w

orki

ng re

latio

nshi

p be

twee

n G

GB

and

the

law

enf

orce

men

t Age

ncie

s e.

g.

SAPS

.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Num

ber o

f aw

aren

ess

prog

ram

mes

co

nduc

ted

per

annu

m

–5

14Ac

hiev

edTh

e ta

rget

was

ach

ieve

d as

a re

sult

of g

ood

coop

erat

ion

betw

een

the

Gam

blin

g Bo

ard

and

othe

r ent

ities

like

the

Nat

iona

l Res

pons

ible

Gam

blin

g Pr

ogra

mm

e.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Num

ber o

f soc

ial

resp

onsib

ility

pr

ogra

mm

es

cond

ucte

d pe

r an

num

–2

16Ac

hiev

edAn

una

ntici

pate

d hi

gh v

olum

e of

app

licat

ions

wer

e re

ceiv

ed fo

r soc

ial r

espo

nsib

ility

pro

gram

me

as a

resu

lt,

the

targ

et w

as s

urpa

ssed

.

Effe

ctiv

e go

vern

ance

and

regu

latio

n of

the

gam

blin

g in

dust

ry, e

nsur

ing

ethi

cal b

usin

ess

prac

tice

and

empo

wer

ed s

take

hold

ers.

Num

ber o

f in

spec

tions

co

nduc

ted

per

annu

m

5454

230

Achi

eved

Targ

et a

chie

ved

due

to u

npla

nned

insp

ectio

ns c

ondu

cted

w

hile

wai

ting

for o

nlin

e co

nnec

tivity

boo

kmak

ers

to

oper

ate.

SECTION 04


TAB

LE 4

.3: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

CO

NSU

MEr

Pr

OTE

CTI

ON

SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e re

gula

tion

for i

ncre

ased

leve

ls of

con

sum

er

prot

ectio

nN

umbe

r of

com

plai

nts

rece

ived

per

an

num

–1

815

1 82

8Ac

hiev

edTa

rget

ach

ieve

d du

e to

the

heig

hten

ed a

war

enes

s cr

eate

d th

roug

h m

edia

cam

paig

n du

ring

Wor

ld C

onsu

mer

Ri

ghts

Day

.

Effe

ctiv

e re

gula

tion

for i

ncre

ased

leve

ls of

con

sum

er

prot

ectio

nN

umbe

r of

Cons

umer

Co

mpl

aint

s re

solv

ed p

er

annu

m

2716

1 63

31

774

Achi

eved

Targ

et a

chie

ved

thro

ugh

build

ing

bette

r rel

atio

nshi

ps

with

sta

keho

lder

s to

ens

ure

the

fast

er re

solu

tion

of

com

plai

nts.

Effe

ctiv

e re

gula

tion

for i

ncre

ased

leve

ls of

con

sum

er

prot

ectio

nN

umbe

r of

cons

umer

aw

aren

ess

and

educ

atio

n pr

ogra

mm

es

(wor

ksho

ps)

cond

ucte

d

6970

91Ac

hiev

edTa

rget

ach

ieve

d th

roug

h ad

here

nce

to a

war

enes

s an

d ed

ucat

ion

plan

and

cre

atin

g aw

aren

ess

abou

t the

ex

isten

ce o

f an

offic

e an

d co

nsum

ers

serv

ices

with

in

DED.

The

high

light

was

an

even

t hos

ted

by th

e DE

D to

ce

lebr

ate

Wor

ld C

onsu

mer

Rig

hts

Day,

whi

ch w

as h

eld

in M

eraf

ong

in M

arch

201

3 w

here

app

roxi

mat

ely

five

thou

sand

con

sum

ers

in th

e ar

ea a

nd b

eyon

d at

tend

ed.


TAB

LE 4

.4: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

Br

OA

D B

ASE

D

BLA

CK

EC

ON

OM

IC E

MPO

WEr

MEN

T SU

B-P

rO

Gr

AM

ME

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Effe

ctiv

e re

gula

tion

and

mon

itorin

g of

the

impl

emen

tatio

n of

the

GPG

BBB

EE S

trate

gy%

Com

plia

nce

to G

PG B

BBEE

Pr

efer

entia

l Pr

ocur

emen

t ta

rget

s pe

r an

num

43,3

7068

.99

Parti

ally

Achi

eved

Mism

atch

bet

wee

n sp

endi

ng a

nd p

lann

ed b

udge

t w

ithin

GPG

Dep

artm

ents

. The

pot

entia

l sup

plie

r bas

e is

cons

tant

ly ch

angi

ng, b

ut th

e ve

ndor

dat

abas

e is

not

alw

ays

upda

ted

com

preh

ensiv

ely

or re

gula

rly e

noug

h to

ca

ptur

e th

ese

chan

ges,

resu

lting

in v

endo

r det

ails

ofte

n be

ing

out-d

ated

or l

acki

ng.

The

Depa

rtmen

t will

effe

ctiv

ely

mon

itor a

nd e

valu

ate

com

plia

nce

and

the

atta

inm

ent o

f B-B

BEE

Stra

tegy

Targ

et

in th

e Pr

ovin

ce, D

ED w

ill c

ontin

ue c

ondu

ctin

g Ed

ucat

ion

and

Awar

enes

s se

ssio

ns.

Effe

ctiv

e re

gula

tion

and

mon

itorin

g of

the

impl

emen

tatio

n of

the

GPG

BBB

EE S

trate

gyN

umbe

r of t

arge

t gr

oups

spe

cific

oppo

rtuni

ties

iden

tified

–16

23Ac

hiev

edTa

rget

ach

ieve

d du

e to

des

igna

tion

of s

ecto

rs b

y th

e dt

i and

the

Gau

teng

Stra

tegi

c Pr

ocur

emen

t Fra

mew

ork

Polic

y 20

12. T

his

beca

me

effe

ctiv

e on

the

1st D

ecem

ber

2012

and

eco

nom

ic op

portu

nitie

s av

aila

ble

in th

e Pr

ovin

ce, w

hich

nee

ded

to b

e sh

ared

with

the

SMM

E’s

and

Coop

erat

ives

.

Effe

ctiv

e re

gula

tion

and

mon

itorin

g of

the

impl

emen

tatio

n of

the

GPG

BBB

EE S

trate

gyN

umbe

r of t

arge

t gr

oups

spe

cific

inte

rven

tions

–16

41Ac

hiev

edTh

is w

as re

alise

d du

e to

the

desig

natio

n of

sec

tors

by

the

dti w

hich

was

pro

mul

gate

d an

d be

cam

e ef

fect

ive

on th

e 1s

t Dec

embe

r 201

2 an

d th

e ed

ucat

ion

and

awar

enes

s ca

mpa

igns

on

loca

l con

tent

cal

cula

tion

crite

ria c

ondu

cted

fo

r bot

h in

tern

al G

PG a

nd e

xter

nal P

rivat

e/Ci

vil s

ecto

r st

akeh

olde

rs.

The

aim

was

to e

nsur

e th

ere

is a

com

mon

und

erst

andi

ng

of h

ow lo

cal c

onte

nt w

ill b

e ca

lcula

ted

and

the

impl

icatio

ns th

ereo

f in

the

bidd

ing

and

tend

erin

g pr

oces

s.

SECTION 04


TAB

LE 4

.5: P

rO

VIN

CIA

L TA

rG

ETS

FrO

M 2

012/

13 A

NN

UA

L PE

rFO

rM

AN

CE

PLA

N F

Or

AG

ENC

Y O

VEr

SIG

HT

SUB

-Pr

OG

rA

MM

E

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

PERF

ORM

ANCE

OF

PRO

GRA

MM

ES A

GAI

NST

THE

APP

ROVE

D PL

ANS

SECTION 04

Stra

tegi

c O

bjec

tive

Perf

orm

ance

In

dica

tor

2011

/12

Act

ual

2012

/13

Targ

et20

12/1

3 A

nnua

l A

ctua

lA

nnua

l Tar

get

Ass

essm

ent

Com

men

ts o

n en

ablin

g co

ndit

ions

and

/or

reas

ons

for

devi

atio

ns

Enha

nced

inte

grat

ion

and

acco

unta

bilit

y th

roug

h ef

fect

ive

and

effic

ient

pla

nnin

g an

d ov

ersig

ht, a

nd c

ompl

ianc

e to

co

rpor

ate

gove

rnan

ce p

rincip

les.

Num

ber

of a

genc

y pe

rform

ance

re

ports

rece

ived

an

d an

alys

ed

2424

16N

ot A

chie

ved

Targ

et n

ot a

chie

ved

due

to re

duct

ion

of a

genc

ies

from

six

to

four

and

all

four

age

ncie

s re

ports

wer

e re

ceiv

ed a

nd

anal

ysed

.


4.5 PrOGrAMME 5: ECONOMIC PLANNING

The programme purpose is to provide economic thought leadership that ensures a synthesised, aligned and integrated economic agenda for the Gauteng Global City Region.

The programme objective is to develop provincial economic policies and strategies, conduct economic research, contribute to the creation of knowledge economy and determine the effectiveness and impact of provincial policy objectives and strategies.

In this regard, the programme will inform evidence based policy decision making, ensure sound analytical reporting, focus on the achievement of intended impact, and promote a more informed understanding of the economic agenda.

4.5.1 Economic Planning

Strategic Competitiveness

The Department developed two sector programmes, namely Gauteng Skills for the Economy and the Gauteng Mineral Beneficiation Programme. The former was developed through a partnership with Gauteng City Region Academy, industry and Sector Education and Training Authorities and the latter is a conceptual Framework on how Gauteng can implement the Jewellery Manufacturing Precinct based on international benchmarking.

The Department also developed Gauteng Furniture Skills Development and SMME/Cooperative Incubation Programme which aimed at mobilising 50 youth from Gauteng’s five municipalities to be trained for furniture skills (Wood work and Upholstery) and thereafter divided to form ten cooperatives. This programme intends to incubate youth for a period of two years benefitting from public procurement spending on office and school furniture as well as the broader furniture market.

The Gauteng Trade and Investment Gateway Strategy which is meant to enhance Gauteng as the factory for exported goods and services for Southern Africa and the rest of the African continent was also developed. It means that Gauteng becomes a platform for investors who want to produce goods and services for the bigger African market, given its advantage in productive infrastructure, financial hub, and centre for Research and Development. This strategy is a guide for Gauteng Growth and Development Agency on its trade and investment promotional activities in the African continent. The National Electric Vehicle Strategy 2011 for the Department of Trade and Industry and the analyses of the critical success factors that must be in place for this sub-sector to take off was also reviewed.

Monitoring and Evaluation

The Department compiled an evaluation report looking at the Gauteng Tooling Initiative in terms of the performance on the Tooling Artisan Skills training, which started during the fall of 2010.

This is a three-and-half year programme aimed at training 280 tooling artisan in Gauteng and their graduation is to take place in June 2014.

The Department also compiled a monitoring report on the implementation of the Foundry Training programme, in which 20 students will be enlisted for training in September 2013, was developed. This forms part of the plan to train 60 foundry practitioners in the next three years, with 20 enlisted on yearly basis.

Economic Research

The Department conducted two research studies, namely, “The Decent Work Deficit amongst Farm Workers in Gauteng. This research outcome will assist GDED and other governmental partners to engage the farming sector to improve the basic condition of employment. The second report was on Productivity Issues, constrains and improvements for Small Micro and Medium scale enterprises in Gauteng Province. On the number of research initiatives supported, a report on the state of freight industry in Gauteng was produced. This study is a benchmark on the costs of doing business in light of major infrastructure projects that are being undertaken in the province to ease the costs of delivery of freight and logistics.

The second research study is the “Identification of Skills Requirements for SMMEs, Cooperatives and the Informal Economy”. The study will assist the government to align its non-financial support (business support) with the requirements of SMMEs and Cooperatives. In addition, a study on the “Role of Information and Communication Technology (ICT) in economic growth/development was developed for developing countries. This was a benchmark study in support of the Gauteng Smart City Special Economic Zone.

The study on the hospitality industry, which measured decent work indicators according to the International Labour Organisation (ILO), was developed. The hospitality industry is one of the labour absorbing sectors made up of a few large enterprises and a number SMMEs, mostly exploiting workers rights. This study seeks to understand the working conditions in the hospitality industry in Gauteng and how the Department of Economic Development in conjunction with other spheres of government and non-governmental organisations can work together in improving working conditions of workers.

In addition, another study was also finalised by the Department on measuring cross border trade on Gauteng based firms. The study focuses on SMMEs and big companies and aimed at understanding the nature of cross-border retail activities as it benefits Gauteng businesses. A province-wide survey covering the broader informal economy sector was conducted. This includes the state of the cooperatives, SMME’s, hawkers etc. The study will assist in developing a deeper understanding of the informal sector and also in shaping the Department’s approach to the sector.

The study also forms an integral part of the inclusive economy agenda and has been conducted alongside other studies that intend to intervene in the critical areas of the informal economy.


SECT

ION 04


A benchmarking study that has been conducted strengthens the Gauteng’s approach to the informal economy and to learn the best practices from other emerging economies. The studies will assist in the forth coming workshop on the informal economy and the summit later in May 2013.

Knowledge Management

The Department compiled a report that analysed Gauteng as an economic hub of the African continent. The report made an analysis of Gauteng Economy in terms of sectors that contribute to the economy and benchmarked it with the other five bigger economies in Africa.

Another economic intelligence report was compiled on Employment/Wage subsidy, which was a benchmarking report on countries with similar programmes. The report found that the adoption of such policy to alleviate high youth unemployment is not a panacea for the problem of youth unemployment. The 3rd economic intelligence report developed was on South Africa’s Electric Vehicle.

The study is about benchmarking the electric vehicle market and measure whether South Africa does have the critical success factors for the sector to be viable. Annual Economic Review, which evaluated the performance of the economy at global, national and provincial level on macroeconomic indicators: GDP, Employment, inflation and international trade and providing an outlook of the economy for years ahead was developed.

Furthermore, an economic intelligence report analysing inequality in South Africa as well as the interventions to reduce the levels of inequality was developed. This was a comparative study with Brazil, which had the highest inequality by 1994 similar to South Africa. The report shows that while Brazil has over the years managed to reduce the inequality, the South Africa’ situation has worsened over the years.

Economic Policy and Planning

Gauteng Manufacturing Survey and the Ekandustria Adjacent Land Business Case were conducted. The Survey was conducted in-house with the support from Executive Management. The Suikerbosrand Nature Reserve Turnaround Strategy was also developed.

The strategy aimed at enhancing its current activities that consist of four elements, namely, Eco tourism, cultural heritage, water ways and camping. The strategy also seeks to introduce additional activities that will encourage people to spend more money and bed nights at Suikerbosrand in order to improve demand for service offerings and ensuring sustainability of the facility. The most fundamental element of the strategy is the review of the current governance structure which is very complicated and serves as a barrier to unlocking the growth and development of Suikerbosrand.

The Ga-Rankuwa Hotel School Infrastructure roll-out plan was developed. This is aimed at regenerating the school to global standards.

The plan identifies a list of infrastructure required for the school to be modelled as the best in terms of hospitality skills development. It has been used as a guide for procuring the machinery and equipment for the school.

The Cooperative Strategy of 2009 was reviewed. It was done to measure the impact of interventions by government in the cooperatives sector with the view to shape the plans as per the needs of the sector. The review makes recommendations that if adhered to can improve the performance of the cooperatives and increase the impact of the interventions by government institutions.

The establishment of research chairs, internal capacity of experienced researchers and policy developers from the graduate trainee programme enabled the Department to achieve set targets.


SECT

ION 04


TAB

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SECTION 04GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENTPERFORMANCE OF PROGRAMMES AGAINST THE APPROVED PLANS


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PLAN

S


SECT

ION 05

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | VOTE 3

ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2013


TABLE OF CONTENTS

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | VOTE 3ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013

SECT

ION 05

REPORT OF THE AUDIT COMMITTEE

REPORT OF THE ACCOUNTING OFFICER

REPORT OF THE AUDITOR-GENERAL

APPROPRIATION STATEMENT

NOTES TO THE APPROPRIATION STATEMENT

STATEMENT OF FINANCIAL PERFORMANCE

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN NET ASSETS

CASH FLOW STATEMENT

ACCOUNTING POLICIES

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

DISCLOSURES NOTES TO THE ANNUAL FINANCIAL STATEMENTS

ANNEXURES

69

71

78

80

94

96

97

98

99

100

104

113

122


GAUTENG PrOVINCIAL GOVErNMENTRepoRt of the Audit Committee – ClusteR 1

Department of Economic Development

We are pleased to present our report for the financial year ended 31 March 2013.

The Audit Committee consists of the external members listed hereunder and is required to meet a minimum of at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings for Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General Report.

Name of Member Number of Meetings Attended Vishnu Naicker (Chairperson) 05Tshidi Molala (Member) 05Wayne Poggenpoel (Member) 04

Audit Committee Member Mr. Wayne Poggenpoel did not attend one meeting since he was appointed after the first quarter reporting period. However, all meetings were quorate.

Executive Members:

in terms of the GPG Audit Committee Charter, the Officials listed hereunder are obliged to attend the meetings of the Audit Committee:

Compulsory Attendees Number of Meetings Attended

Khulu Radebe (Head of Department) 01Albert Chanee (Acting Head of Department) 04 Preston Mabena (Chief Financial Officer) 04Oupa Tshule (Chief Risk Officer) 03

During the financial year under review, Mr. Khulu Radebe has been put on suspension as the Head of Department and Mr. Albert Chanee was appointed to act in the capacity of the Head of Department. Therefore, the Audit Committee is satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter.

The Members of the Audit Committee met with the Senior Management of the Department and Internal Audit, collectively to address risks and challenges facing the Departments. A number of in-committee meetings were held to address control weaknesses and conflicts with the Department.

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) of the PFMA and Treasury Regulation 3.1.13.

The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control

The Audit Committee has observed that the overall control environment has continued to improve during the year under review. However, there are still some concerns with the level of internal controls within the Department where evidence of lapses of effective monitoring and enforcement by Management were observed.

During the year under review, several deficiencies in the system of internal control and deviations were reported by the Auditor-General South Africa. In certain instances, the matters reported previously have not been fully and satisfactorily addressed.

The Quality of in Year Management and Monthly / Quarterly Reports Submitted in Terms of the PFMA and the Division of Revenue Act

The Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer of the Department during the year under review, in compliance with the statutory reporting framework.

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 concurs with and accepts the Auditor-General’s conclusions on the Annual Financial Statements, and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General.

Internal Audit

The Audit Committee is satisfied that the Internal Audit plans addresses a clear alignment with the major risks, adequate information systems coverage, a good balance between different categories of audits, i.e. risk-based, mandatory, performance and follow-up audits and involvement and support by Management of the plans.

The Audit Committee has noted considerable improvement in the communication between the Executive Management, the Auditor-General and the Internal Audit Function, which has strengthened the Corporate Governance initiatives.


SECT

ION 05


The Audit Committee wishes to stress that in order for the Internal Audit Function to operate at optimal level as expected by the Audit Committee, it requires more capacity and skills.

Risk Management

Progress on Departmental risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee is satisfied that the actual management of risk is receiving attention, although there are areas that still require improvement. Management must take responsibility for the managing of risk in their respective areas of work. This area will be closely monitored during 2013/14 financial year.

Forensic Investigations

The Audit Committee is not satisfied that the forensic investigations are properly reported with age-analysis of all reported issues indicated. Details of results in respect of investigations conducted as a result of calls through the fraud hotline were not provided to the Committee.

One-on-One Meetings with the Accounting Officer

The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues.

One-on-One Meetings with the Executive Authority

The Audit Committee has met with the Executive Authority for the Department to apprise him on the performance of the Department.

Evaluation of the Annual Report

The Committee has: - Reviewed and discussed the financial statements; Reviewed the accounting policies and practices; and Reviewed and discussed with Management the annual financial

statements financial statements and performance information included in the Annual Report.

The monitoring of the Department’s performance is a key function of Executive Management of the Department. The Committee has no direct line responsibility for the Department’s performance measurement. However, the Committee has ensured, principally through the internal audit function, that the systems of performance measurement and reporting, as well as the systems of internal control that underpin the performance management framework of the Department, remain robust and are addressed routinely in the audit plans. The Committee also obtained assurance from Management and Internal Audit that the Department’s performance management system adequately and effectively report appropriate and relevant information.

The Committee has accepted the responsibility to ensure adequate reporting on performance information and the policies and that the procedures are of a standard acceptable to the Department.

The Committee’s mandate and charter has been altered to acknowledge this responsibility. The Committee has taken note of the Performance Information Report which compares the actual performance of the organization against the approved Business Plan for the financial year, the strategic objectives, key performance indicators and targets set.

Conclusion

The Committee concurs in general with the conclusions of the Auditor-General on the Annual Financial Report of the Department for the year ended 31st March 2013.

The Committee has once again taken note of the concerns of the Auditor-General and accepts that there is further room for improvement in the areas of human resources, procurement and contract management. As in previous years the Audit Committee will ensure that the internal audit plan addresses these issues and will monitor the implementation of the recommendations contained in the Auditor-General’s Report. The Committee will continue to monitor and ensure that the internal control environment for the public entities under the jurisdiction of this department is improved upon.

I would like to thank all members of the Committee for their contribution and the professional way in which meetings were conducted. The Committee wishes to express its sincere appreciation to the Department for the progress made this year and the manner in which the Department engaged with the Committee.

Mr Vishnu Naicker,Chairperson of the Audit Committee31 July 2013


SECT

ION 05



SECT

ION 05

rEPOrT OF THE ACCOUNTING OFFICErfoR the YeAR eNded 31 mARCh 2013

1. General Review of the State of Financial Affairs

The Department has managed to spend 99.9% of R874.4m allocated budget for 2012/13 and the actual expenditure is R873.4m

The year to-date achievement was realised due to proper spending in accordance with planned priorities and prescribed needs, monthly spending analysis drawn-up; and continuous interaction with programmes/sub-programmes on their spending trends and how to address identified discrepancies which results in over and under spending of the allocated budget.

On average, the Department reduced 30 days payment of suppliers to 14,5 days. The achievement realised is due to internal daily payment monitoring tracking system, which was put in place and centralisation of invoice submission. The Provincial Treasury was constantly engaged to ensure that there were sufficient funds to enable payment of suppliers within the prescribed days.

Important Policy Decisions and Strategic Issues Facing the Department

During the period under review, the national sphere of government developed the National Development Plan, NDP (2030), which the long-term plan for the country to create employment, growth the economy inclusively and reduce poverty. At a provincial level, the NDP it aligns with the G2055.

During the period under review, the national sphere of government developed the National Development Plan, NDP (2030), which the long-term plan for the country to create employment, growth the economy inclusively and reduce poverty. At a provincial level, the NDP it aligns with the G2055.

Through the Gauteng Employment, Growth and Development Strategy, which is the short-term plan (2009-2014 and aligned to the National Growth Path), Gauteng Department of Economic Development (GDED) is mandated to achieve the following objectives: Job creation; Development of skills for the economy in line with the Gauteng

Master Skills Plan; Enterprise development; Export and investment promotion; and Reducing the costs of doing business through productive

infrastructure planning and facilitating the ease of doing business in partnership with other sector departments, agencies and the private sector.

It must be said that GDED was faced with the challenges to achieve many of these objectives of given its resource limitations as well as well as unfavourable economic climate.

Furthermore, the department has only been in existence for the past four year, and as a result, the current period of mandate was dominated by policy and strategy development in all the functional areas thus laying the foundation for implementation in the next term (2014-2019).

In review of the current mandate (GEGDS 2009-2014), GDED will ensure that its resources are prioritized for the implementation of the plans in the new mandate and increase its capacity to deliver thus why there was a need to restructure the department and Gauteng Growth and Development Agency with the view of strengthening the human resources capacity to deliver on the mandate.

In the period under review, number of supporting strategies aligned to the NGP, the Industrial Policy Action Plans (IPAPs 1-3) and Gauteng Industrial Policy Framework (GIPF) were reviewed and developed, this include among others, the following:

The Gauteng as an Africa’s Gateway for Trade and Investment Strategy: The strategy is meant to enhance Gauteng as the factory for manufacturing goods and provide services for Southern Africa and the rest of the African continent. It is a value proposition for Gauteng to becomes a platform for investors who want to produce for the bigger African markets, given its advantage in productive infrastructure, financial hub, centre for Research and Development. This strategy is a guide to Gauteng Growth and Development Agency on its trade and investment promotional activities in the African continent. This strategy will be merged with the overall Gauteng Trade and Investment Strategy for submission to EXCO in Financial Year 2013/14.

The National Electric Vehicle Strategy 2011: The Department reviewed this strategy for the Department of Trade and Industry on the critical success factors that must be in place for this sub-sector to take off. Using benchmarking with countries that had a success with the manufacturing and intake of electric vehicles, GDED made recommendation to the dti to address issues ranging from funding, charging infrastructure and pricing to offset the challenges that hamper the manufacturing of electric vehicle in South Africa.

The Cooperative Strategy of 2009: The Department has also reviewed the strategy to measure the impact of interventions by government in the cooperatives sector with the view to shape the plans as per the needs of the sector. The review makes recommendations that if adhered to can improve the performance of the cooperatives and increase the impact of the interventions by government institutions.

Significant Events that have Taken Place During the Year

The department has formed partnership with industry to train 60 Foundry students for over three years (20 students per year) at Ekurhuleni East College, in Kwa-Thema. Furthermore, GDED has developed the Furniture skills development and SMME Incubation programme. Through the programme, 50 students have been enlisted with Furntech, and it runs for a period of three years, with 2012/13 for training at the remainder two years for SMME incubation, which will result in the creation of 10 Cooperatives comprising those trained.


The cooperatives will benefit from Gauteng procurement on furniture as well as the bigger national market estimated at R10 billion.

Major Projects that have Taken Place During the Year

In the 2012/13 financial year, the Department planned and implemented projects aimed to achieve the Gauteng Employment Growth and Development Strategy’s (GEGDS) goals and objectives that are linked to leadership and accountability of Provincial Outcome 4 on “Decent employment through inclusive growth”. The Department embarked on various major projects focusing and aligned to its five year strategic planning objectives:

The Youth Employment Programme in which six Township Enterprise Hubs (TEH) were expected to be established in indentified economically depressed regions of the province could not be realised due to budgetary constraints. The construction of Winterveldt hub in North East of Tshwane is underway and will be used as a pilot and lessons learned be applied in the rolling out of other planned hub in the new financial year. On enterprise development, the joint partnership with the City of Joburg and its entities such as the City Power and Joburg Water has assisted in increased number of SMMEs and Cooperatives to be financially and non-financially supported. The financial assistance was through the Captive fund, Micro-Finance, partnership with MODE for the Disabled Entrepreneurs, Mafisa Fund and Co-operative Assistance Programme (CAP).

The strategic economic infrastructure initiatives aimed at stimulating employment-led growth and development were undertaken in the year under review. This entails freight and logistics projects such as the completion of Tambo Springs, Vaal Logistic and West Rand Inland hubs which were later in the year handed over to the Department of Roads and Transport after their feasibility studies are finalised. The completion of the Jewellery Manufacturing Precinct is at an advance stage and intense negotiations are underway with relevant stakeholders to finalise the acquisition of earmarked land and to align with the Special Economic Zone (SEZ) requirements that could change the original plan. A suitable pool of candidates with required scares skills were recruited for the JMP training in the year under review.

The Department is engaged in implementation of re-industrialisation projects aimed at supporting the growth of labour-intensive industries and this was undertaken in joint partnership with Nissan SA and the grant agreement which was approved by DBSA jobs fund for the establishment of the Nissan Simulator and training academy. In the same breath, the FORD T6 SMME Incubator managed to increase its employment numbers in the year under review due to demand expansion, which led to high production capacity requirement.

The Youth Skills and Technical Training Programme which will increase required skilled personnel in the automotive industry, has recruited a significant number of youth to be trained as artisans in the field of boilers makers, welders, fitters and diesel mechanics.

In building an innovative and knowledge based economy that will drive competitiveness and economic growth, the Department committed resources for the development of the Gauteng Smart City which the culminated into years of planning and thinking about the positioning of the Gauteng Province as the globally competitive city region in the ICT sector. It is destined to play an important role in the socio economic development in the Province and global economy.

It is also appropriate to state that one of the distinct advantages of the Gauteng Smart City is that it has been endorsed as one of the 10 Special Economic Zone by the dti, a factor that will make it particularly attractive to foreign direct investment. This will encourage new firm formation and stands to be a positive foreign exchange injector into the economy.

The Department has managed to show great stride in the development of the Master Blue Print that will encompass the real estate commercial viability, industrial and service design models. The major challenges to pull this project off the ground are in the form of delays in land transfers and infrastructure designed that are still to be being finalised.

The implementation of the Provincial Green Strategic Programme, which came as, an intervention to support economic growth and development emerged with Industrial Waste Exchange (IWEX), medical waste treatment pilot, gas infrastructure and waste to energy plant projects. These pivotal green economy projects could not take-off due to delays in the appointment of a Green PMO and procurement process, which commenced late in the third quarter of the year under review.

On the tourism front, the Department continues to drive support and development of the sector through the engagement with the North West Province on the transfer of the Ga-Rankuwa Hotel School to Gauteng. Currently the project transfer guideline protocol has been established.

Other achievements could be attributed to the finalisation of the Visitor Information Centre (VIC) at OR Tambo International Airport in collaboration with Airport Company South Africa (ACSA) and National Department of Tourism; preliminary work that has begin for the upgrading of Maropeng Interpretation Centre; and the Working on Fire, the management of Dinokeng and the fossils casting project which has recorded increased job creation figures at the end of March 2013.


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Spending Trends

The department’s spending trend is as follows:

Year Budget* Actual Under/(Over) Spent Percentage under/(Over)

R R R %

2008/09 913,167 825,830 87,337 9.6

2009/10 875,719 820,173 55,546 6.3

2010/11 1,087,082 1,064,582 22,500 2.1

2011/12 822,573 787,002 35,571 4.3

2012/13 874,412 873,372 1,040 0.1

*Adjusted budget voted

Virements

An amount of R2, 5m was taken to programme 1 due to the accruals from previous financial year that has resulted into an overspending. Savings were identified in programme 5 due to the austerity measures that were introduced by doing most of the consultant work internally; partnerships were formed with departmental entities by using available resources to carry some of the projects. The virements are not yet approved by the Provincial Treasury.

2. Service Rendered by the Department

Services rendered by the Department are detailed in the Performance Information Report.

2.1 Policy

The department does not charge tariffs for goods sold and/or services rendered.

2.2 Free Services

The department does not render any free services.

2.3 Inventories

The Department keeps no material stocks. Minimal consumables purchased during the year for stationery and other food supplies are expensed immediately.

3. Capacity Constraints

A number of vacancies across the department hampered delivery in some instances. These pressures still exist and have in some instances hampered the departments’ ability to respond effectively with regards to the execution of its mandate. To this end the department initiated a process of filling critical vacancies in the department. This process has assisted in ensuring that capacity is directed to areas in most need.

Furthermore, the new departmental structure has been approved in November 2012 and will cater for additional required staff and skills in the 2013/14 financial year when it is implemented and focus placed on filling critical funded posts.

4. Utilisation of Donor Funds

The department did not utilise any donor funding during the financial year.

5. Trading Entities and Public Entities

The Provincial Public Entities listed below are under the ownership control of the Gauteng Department of Economic Development:



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Nature of Entity Name of Entity

Development Finance Gauteng Economic Development Agency

Gauteng Enterprise Propeller

Blue IQ Investment Holdings (Pty) Ltd

Regulatory Body Gauteng Gambling Board

Gauteng Tourism Authority

Gauteng Liquor Board

Special Project Cradle of Humankind World Heritage Site

Dinokeng

Each of these entities prepares their individual Annual Report.

6. Organisations to whom Transfer Payments have been made

The transfer payments made towards entities are reflected in the department’s Annual Financial Statements in Annexures 1E and 1F. These entities are:

Gauteng Economic Development Agency Gauteng Tourism Agency Gauteng Enterprise Propeller Gauteng Liquor Board Blue IQ Investment Holding (Pty) Ltd Cradle of Humankind World Heritage Site Dinokeng

7. Public Private Partnerships (PPP)

The Department has entered into a partnership with the National Tooling Initiative for the establishment of the Gauteng Tooling Initiative (GTI), which will be housed in a section 21 vehicle. The purpose of the GTI is to revive and enhance the Tool, Die and MoUlding industry, which is vital for the manufacturing sector in the province.

8. Corporate Governance Arrangements

With a view to improve and strengthen corporate processes pertaining to strategic planning, financial management and performance oversight, the following processes were initiated:

The DED and its agencies complies strictly with the National Treasury Framework on strategic planning A framework on financial planning and management has been

finalised. The Monitoring and Evaluation Framework for the DED Group

has been finalised.

The approach to monitoring financial and non-financial performance has been strengthened. An internal planning calendar has been designed to assist the

department with day to day operations including compliance and regulatory obligations.

The Departmental Acquisition Council (DAC) has been operational throughout the year and regular meetings are held. Treasury regulations and practice notes were enforced.

8.1 Risk Management Approach

The Department’s risk management approach is aligned with the Provincial Treasury’s Risk Management Framework. A Strategic Risk Assessment workshop, attended by the Department’s Senior Management, was convened during the year under review. Action plans to address risks identified were developed and implemented.

The Risk and Audit Management Committee (RAMC) facilitates the resolution of audit findings raised by Auditor-General (AG) and Gauteng Audit Services (GAS). All audit matters raised by AG in the 2011/12 audits were addressed by the Department. The Department also addressed audit matters raised by GAS. The RAMC comprises heads of all business units. The committee met monthly, with members providing progress reports.

8.2 Fraud Prevention Policies

A fraud risk assessment workshop was held to update the Fraud Prevention Plan during the year under review. Progress on implementation of fraud prevention strategies was tracked throughout the year.

The Department is a member of the Provincial Anti-Corruption Co-ordinating Committee. Matters referred by the National Anti-Corruption Hotline are duly investigated.



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8.3 Audit Cluster Committee

The audit committee serves a cluster of departments and provides oversight mainly on audit, performance and financial management issues. During the year under review, the committee also focused on departments’ risk management activities, with specific reference to the top ten risks. The audit committee approved the department’s 3 year rolling Internal Audit Plan.

8.4 Internal Audit

Gauteng Audit Services (GAS), a unit within the Department of Finance provides internal audit services to the Department and other provincial departments. GAS provides assurance on the Department’s effectiveness and efficiency of internal controls, governance and risk management processes. During the year under review, GAS completed its Annual Audit Plan.

The Risk and Audit Management Committee (RAMC) was instrumental in facilitating the implementation of GAS recommendations emanating from audits performed in the last three years. Significant progress has been achieved in this regard. GAS is invited to all RAMC meetings in the 2012/13 financial year. They will present new findings and assist with the tracking thereof.

8.5 Processes to Minimise Conflict of Interest

In line with the requirements of the Department of Public Service and Administration, the Department requires its senior managers to disclose their financial interests on an annual basis. All SMS members have signed the financial disclosure forms and all Departmental Acquisition Committee (DAC) members sign the declaration of interest register in every meeting.

8.6 Implementation of the Code of Conduct

The code of conduct is available and forms part of the employment contract for each staff member.

8.7 Safety, Health and Environmental Issues

The Department has nominated OHS representatives. The Department follows the OHS Act guidelines as well as the OHS policy. OHS is reported on as a regular feature in the departmental internal newsletter.

9. Discontinued Activities/Activities to be Discontinued

The Gauteng Provincial Government (GPG) concern about the issue of the high level of unemployment, especially among the youth led to the development of the Gauteng Youth Employment Strategy (GYES). This strategy aimed among others to establish a graduate entrepreneurship development programme, better known as Y-Age, with the aim of recruiting 125000 young people in Gauteng to be trained, mentored, funded and assisted to run their own businesses.

Through this programme, we hope that these entrepreneurs will then return to their various businesses, where they will each endeavour to employ three to five people. The ultimate goal is to create 1 million jobs. At a time when the programme was discontinued, i.e. in quarter one of 2012/13, the programme supported 6 400 entrepreneurs. The programme was discontinued and mainstreamed into GEP entrepreneurial programme.

10. New/Proposed Activities

On the strategic economic infrastructure that is required to stimulate employment-led economic growth and development, the Department will continue to increase its efforts in the development of projects that will serve as the bedrock for business and economic development. Investment in network and connectivity infrastructure such as the NASREC Development Precinct SEZ will continue. Furthermore, phase 1 of the Diepsloot Industrial Park will be completed; this will include the Incubation Centre and Practical University.

The Department will re-industrialise the provincial economy through to support the growth of labour intensive industries. The focus will be on addressing skills gaps and creating jobs through partnerships with industries to deliver skills for the economy in labour intensive sectors such as the automotive, furniture, fashion, metal fabrication and mineral beneficiation sectors. The Nissan Simulator will be finalised and an investment in the expansion of the mini-factories at the Automotive Supplier Park will be concluded.

To building an innovative and knowledge-based economy that will drive provincial competitiveness and economic growth, the Department plans to continue with finalization of four enterprise development business cases for the NASREC Precinct and the establishment of BPO centres, mobile walk-in centres and ICT centres at the NASREC Precinct. The programmes of the Innovation Hub and the Gauteng Innovation Exchange Programme will continue with an enhanced focus on addressing skills gaps and creating jobs through partnerships with industries and the skills development sector to deliver skills for the economy in the ICT and knowledge sector.

The provincial Green economy interventions that supports sustainable economic growth and interventions will form part of the green agenda which will incubate companies via the Climate Innovation Centre, identifying and mentoring bio-science innovation through the Gauteng Accelerator Programme (GAP), completing and commissioning the Sedibeng and West Rand Bio-digestor projects and the Ekurhuleni Waste to Energy project.

In support and development of the tourism sector, which is aimed to drive competitiveness and economic growth, the Department will continue with the merger of the Gauteng Tourism Agency, Cradle of Humankind World Heritage Site and Dinokeng projects into a “single unified tourism entity”. The purpose of the merger is to improve the drive to position Gauteng as a tourism destination for business and leisure, growing the visitor economy and effectively managing destination Gauteng in a responsible and sustainable manner.


Other specific project will entail finalising the transfer and operating model for the Ga-Rankuwa Hotel School, the refurbishment of ramparts and interior office space at Constitution Hill, and continuing with the infrastructure upgrade at the Cradle of Humankind World Heritage Site. In terms of developing Constitution Hill Precinct as a lead project in city renewal and for the establishment of a struggle history route, the Nelson Mandela Centre of Memory will be developed as an anchor attraction to enhance the visitor experience to Constitution Hill.

The SMME and Cooperatives support and development for sustainable employment creation will continue to be the focus of the Department. This will be realised through the strengthening partnerships with the private sector and government agencies in order to create SMME incubators that will be employment creators and aggressively drive greater involvement of SMMEs and cooperatives in the economy.

The Department will continue with the implementation of the Youth Employment Strategy through the establishment of Township Enterprise Hubs, the refurbishment of old township industrial sites, the roll-out of the Gauteng Youth Placement Programme and the focused establishment of youth business.

The Gauteng Growth and Development Agency (GGDA) will ensure that emphasis is placed on positioning Gauteng-based companies to benefit from procurement in strategic economic infrastructure projects such as rail-road construction, independent power production and manufacture of rolling stock. The highlight will be to position Gauteng as the gateway to benefit from bilateral and regional trade agreements through implementation of the Gauteng Investment Centre (One-Stop Shop).

The Department will be finalising and implementing of the Automated Liquor Licensing System (ALLS), intensifying liquor abuse education and awareness programmes, and increasing the number of inspections in order to enforce compliance. In terms of governance, the Department will conduct a review of the current funding model and finalise the migration of shebeen permits into the ambit of the Gauteng Liquor Act of 2003.

In terms of Gauteng Gambling Board (GGB) mandate to regulate and control gambling, the Department will pay particular attention to a review of the impact of the proposed withholding tax on punters winnings and contribute to the deliberations on the proposed amendments to the Taxation Laws Amendment Bill.

11. Asset Management

The Department continues to improve on asset management, and some of the achievements amongst others include:

The verification of assets has been done for the Department and Gauteng Liquor Board; and Asset register updated according to the asset verification,

acquisitions and disposal.

12. Inventories

All inventory opening and closing balances, together with movements for the year are reflected in the Annexure on Inventory

13. Events after the Reporting Date

None

14. Performance Information Management

In the year under review, the Department continued to use an electronic Monitoring and Evaluation Reporting Management System (MERMS) to enhance collection of performance information and job creation data on monthly and quarterly basis from programmes/sub-programmes and agencies; and provincial sector departments respectively.

The departmental Monitoring, Evaluation and Reporting Management System (MERMS) forms part of the broader Business Intelligence tool. Currently the system is accessible to all through an executable file that is loaded to departmental M&E Officials; the system is also available on the web that is outside the GPG network. Reporting champion and their respective managers can now access the MERMS from anywhere in the world for reporting purposes.

The Department has developed the Automated Liquor Licensing System (ALLS) will be finalising and implementing it fully with the intention to creating efficiencies and for application to be done on-line. The system will also allow the Department to create a backup on the existing and new files that will be change from hard copies and be uploaded into an electronic system.

15. SCOPA Resolutions

The Department has responded to each of the SCOPA resolutions as well as AG findings and we have improved the internal control environment as per these recommendations. We continue to engage the Committee and the AG on internal control matters.


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16. Prior Modifications to Audit Reports

Nature of matters of non- compliance Financial year in which it first arose

Progress made in clearing/resolving the matter

Annual Financial Statements The financial statements submitted for auditing were prepared in accordance with the departmental financial reporting framework prescribed by national treasury; however material misstatements were identified by the auditors in the submitted financial statements and were subsequently corrected which is in contravention of section 40(1)(a) of the PFMA

2010/11 Integrated Reporting process has been developed in a form of an activity list and circulated to all role players within the process of compiling Financial Statements. Quarterly Interim Financial Statements were completed and submitted to Provincial Treasury. The Director Financial Reporting and the CFO are reviewing interim Financial Statements.

Expenditure Management a) Contractual obligations and money owed by the department were not settled within 30 days or an agreed period as required by section 38 (1)(f) of the PFMA and TR 8.2.3

2008/09 On-going. The Internal payment process of Invoice Submissions centralisation has been completed and circulated to all DED staff, this process was also communicated to all staff during the Quarter 2 staff summit. A meeting was held with the GDF Procurement Director to review the Payments Turnaround times processes as per SLA. Invoice receiving in now centralised in Finance and a dedicated resource in Finance is responsible for receiving invoices. Business Units are instructed to submit invoices received from suppliers within 48 hours

b) The accounting officer did not take adequate steps to prevent unauthorised expenditure as required by section 38(1) (c) (ii) of the PFMA and TR 9.1.1

2008/09 Expenditure monitoring is performed on a monthly basis to ensure implementation of corrective action where possible unauthorised expenditure is identified.

17. Exemptions and Deviations Received from the National Treasury

None

18. Interim Financial Statements

During the Financial Year Under review, Interim Financial Statements were prepared on a quarterly basis and submitted to the Provincial Treasury on the stipulated dates as per National Treasury Practice Note 1 of 2013 requirements. Provincial Treasury provided feedback on all the submitted Interim Financial Statement and all concerns and recommendations given were addressed and implemented, throughout the financial year. The department took this process further by implementing the production of monthly Financial Statements. These processes have assisted in improving the quality of the financial statements and in developing the skills of the team that is involved in the production of the statements.

19. Other

None

20. Approval

The Annual Financial Statements set out on pages 80 to 129 have been approved by the Accounting Officer.



rEPOrT OF THE AUDITOr-GENErAL TO THE GAUTENG PrOVINCIAL LEGISLATUrE ON VOTE NO. 3: GAUTENG DEPArTMENT OF ECONOMIC DEVELOPMENT

Report on the Financial Statements

Introduction

1. I have audited the financial statements of the Gauteng Department of Economic Development set out on pages 80 to 129 which comprise the appropriation statement, the statement of financial position as at 31 March 2013, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting Officer’s Responsibility for the Financial Statements

2. The accounting officer is responsible for the preparation of these financial statements in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of the Public Finance Management Act,1999 (Act No.1 of 1999) (PFMA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s Responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. 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.

4. 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.

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

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of Economic Development as at 31 March 2013,

and its financial performance and cash flows for the year then ended in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of PFMA.

Emphasis of Matter

7. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Accruals

8. The department incurred accruals amounting to R25 410 000 for the financial year ended 31 March 2013 This amount, in turn, exceeds the voted funds to be surrendered of R1 040 000 as per the statement of financial performance by R24 730 000. The amount of R24 730 000 would have resulted in unauthorised expenditure if the balance was settled at year end.

Additional Matters

9. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Unaudited Supplementary Schedules

10. The supplementary information set out on pages 122 to 129 do not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

Financial Reporting Framework

11. The financial reporting framework prescribed by the National Treasury and applied by the Gauteng Department of Economic Development is a compliance framework. The wording of my opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires me to express an opinion on the fair presentation of the financial statements. The wording of my opinion therefore reflects this requirement.

Report on Other Legal and Regulatory Requirements

12. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined Objectives

13. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 24 to 65 of the annual report.

14. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.


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15. The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

16. There were no material findings on the annual performance report concerning the usefulness and reliability of the information.

Additional Matter

17. I draw attention to the following matter below. This matter does not have an impact on the predetermined objectives audit findings reported above.

Achievement of Planned Targets

18. Of the total number of 104 targets planned for the year, 38 of the targets were not achieved during the year under review. This represents 36% of total planned targets that were not achieved during the year under review.

Compliance with Laws and Regulations

19. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual Financial Statements

20. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1) of the PFMA as material adjustments were identified during the audit. Material misstatements relating to lease commitments, fruitless and wasteful expenditure were identified by the auditors and were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

Procurement and Contract Management

21. The department could not provide proposals for four contracts awarded in during the financial year with a total value of R60 156 184. We were unable to obtain sufficient evidence that the evaluation and adjudication criteria applied in evaluating and adjudicating bids of these tenders were fair, equitable, transparent and competitive; and that all proposals submitted were considered. No alternative audit procedures could be performed to obtain reasonable assurance that the expenditure incurred on these awards was not irregular.

Human Resource Management

22. Overtime was paid amounting to R383 010 to employees whilst the department did not have an approved policy on overtime as required by the Public Service Regulation (PSR) 1/V/D2(b).

23. Written authorisation was not provided in advance for the overtime amounting to R466 987 paid to employees of the department as required by PSR 1/V/D.2(c).

24. Certain employees received overtime compensation in excess of 30% of the basic salary. The total amount paid to these employees in the year under review was R515 067, as a result the department did not comply with the PSR I/V/D.2(d).

25. Certain employees were appointed during the year without following a proper process to verify the claims made in their applications in contravention of PSR1 VII/D.8.

26. Certain senior managers did not have signed performance agreements for the year under review as required by PSR 4/III/B.1.

Expenditure Management

27. The accounting officer did not take adequate steps to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the PFMA and Treasury Regulation (TR) 9.1.1.

28. Contractual obligations and money owed by the department were not always settled within 30 days or an agreed period, as required by section 38(1)(f) of the PFMA and TR 8.2.3.

Internal Control

29. I considered internal control relevant to my audit of the financial statements, performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the findings on compliance with laws and regulations included in this report.

Leadership

30. Management did not exercise adequate oversight responsibility regarding financial reporting and compliance and related internal controls

Financial and Performance Management

31. The accounting officer did not adequately review the financial statements and information supporting the disclosure notes was not adequately reviewed for completeness and accuracy prior to their submission for audit.

32. Management did not adequately review and monitor compliance with laws and regulations.

Johannesburg31 July 2013


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SECTION 05


NOTES TO APPrOPrIATION STATEMENTfoR the YeAR eNded 31 mARCh 2013

1. Detail of Transfers and Subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

2. Detail of Specifically and Exclusively Appropriated Amounts Voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on Payments for Financial Assets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of Material Variances from Amounts Voted (after Virement):

4.1 Per programme

Final Actual Variance Variance as a appropriation expenditure R’000 % of final appropriation R’000 R’000 R’000 R’000

1. Administration 130 141 129 865 276 21%

Expenditure for this programme for 2012/13 financial year is R129, 865 as indicated in the table above which represent 100% of the budget spent. According to the yard stick in determining the expected spending against the budget, the department should be at 100% off which we have managed to reach the target of spending according to their operational plans.

2. Integrated Economic Development Services 196 460 196 458 2 0%

Expenditure for this programme for the year 2012/13 is R196 458 as indicated in the table above which represent 100% of the budget spent. The programme did not have over / under spent its budget they managed to spend according to their annual target highlighted in the operational / business plans.

3. Trade and Sector Development 452 110 452 110 0 0%

Expenditure for this programme to date R452, 110 as indicated above which represent 100% of the budget spent. This was achieve through close monitoring of the budget by ensuring that this programme is spending according to their approved operational plan.

4. Business Regulation and Governance 66 745 66 734 11 2%

Expenditure for the programme for 2012/13 is sitting at R66 735 as indicated above table which represent 100% of the budget spent. This was achieve through close monitoring of the budget by ensuring that this programme is spending according to their approved operational plan.

5. Economic Planning 28 956 28 205 751 260%

Expenditure for this programme for 2012/13 is sitting R28 205 as indicated above which represent 97% of the budget spent. The under spending is due to the research projects that were supposed to be outsourced to consultants but because the unit had capacity and resources to finish the research then they decided to handle them in-house hence the savings of R751.


SECT

ION 05


4.2 Per economic classification

Final Actual Variance Variance as a appropriation expenditure R’000 % of final appropriation R’000 R’000 R’000 R’000

Current payments Compensation of employees 110 840 110 304 356 32%Goods and services 156 568 155 305 1 263 81%Interest and rent on land _ _ _ Unauthorised expenditure approved _ _ _

Transfers and subsidies Departmental agencies and accounts 587 495 587 495 – 0%Households 2 702 2 619 83 306%Gifts and donations _ _ _

Payments for capital assets Buildings and other fixed structures – – – Machinery and equipment 4 956 5 856 (900) (1 816)%Software and other intangible assets 1 000 358 642 6418% Payments for financial assets 10 851 11 435 (548) (505)%


SECT

ION 05

NOTES TO APPrOPrIATION STATEMENT (continued)foR the YeAR eNded 31 mARCh 2013



SECT

ION 05

STATEMENT OF FINANCIAL PErFOrMANCEfoR the YeAR eNded 31 mARCh 2013

Note 2012/13 2011/12 R’000 R’000

PERFORMANCE

REVENUEAnnual appropriation 1 874 412 822 573Departmental revenue 2 721 855 614 769

TOTAL REVENUE 1 596 267 1 437 342

EXPENDITURECurrent expenditureCompensation of employees 3 110 305 103 508Goods and services 4 157 380 163 765Interest and Rent _ 38

Total current expenditure 267 685 267 311

Transfers and subsidiesTransfers and subsidies 7 590 113 513 880

Total transfers and subsidies 590 113 513 880

Expenditure for capital assetsTangible capital assets 8 3 781 5 574Software and other intangible assets 8 358 20

Total expenditure for capital assets 4 139 5 574

Payments for financial assets 6 11 435 237

TOTAL EXPENDITURE 873 372 787 002

SURPLUS/(DEFICIT) FOR THE YEAR 722 895 650 340

Reconciliation of Net Surplus/(Deficit) for the yearVoted funds 1 040 35 571Annual appropriation 874 412 822 573Departmental revenue and NRF Receipts 15 721 855 614 769Direct Exchequer receipts/payments _ _Aid assistance _ _

SURPLUS/(DEFICIT) FOR THE YEAR 722 895 650 340



SECT

ION 05

STATEMENT OF FINANCIAL POSITIONfoR the YeAR eNded 31 mARCh 2013

Note 2012/13 2011/12 R’000 R’000

POSITION

ASSETSCurrent assets 134 056 176 566Unauthorised expenditure 9 68 968 69 744Cash and cash equivalents 10 58 811 82 728Prepayments and advances 11 18 84Receivables 12 6 259 24 010

Non-current assets 4 4Investments 13 4 4

TOTAL ASSETS 134 060 176 570

LIABILITIESCurrent liabilities 134 056 176 566Voted funds to be surrendered to the Revenue Fund 14 65 032 99 562Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 15 54 540 55 481Payables 16 14 484 21 523

Non-current liabilitiesPayables – –

TOTAL LIABILITIES 134 056 176 566

NET ASSETS 4 4

Note 2012/13 2011/12 R’000 R’000

Represented by:Capitalisation reserve 4 4

TOTAL 4 4


STATEMENT OF CHANGES IN NET ASSETSfoR the YeAR eNded 31 mARCh 2013

Note 2012/13 2011/12 R’000 R’000

Capitalisation ReservesOpening balance 4 55 004 Movement in Equity – (55 000)

Closing balance 4 4

TOTAL 4 4


SECT

ION 05


CASH FLOW STATEMENTfoR the YeAR eNded 31 mARCh 2013

Note 2012/13 2011/12 R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 1 596 267 1 437 295 Annual appropriated funds received 1.1 874 412 822 573 Departmental revenue received 2 721 855 614 722

Net (increase)/decrease in working capital 11 554 25 916Surrendered to Revenue Fund (758 366) (601 814)Current payments (267 685) (258 320)Payments for financial assets (11 435) (237)Transfers and subsidies paid (590 113) (513 880)

Net cash flow available from operating activities 17 (19 778) 88 960

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 8 (4 139) (5 574)Proceeds from sale of capital assets – 47(Increase)/decrease in investments – 55 000

Net cash flows from investing activities (4 139) 49 473

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease) in net assets – (55 000)

Net cash flows from financing activities – (55 000)

Net increase/(decrease) in cash and cash equivalents (23 917) 83 433Cash and cash equivalents at beginning of period 82 728 (705)

Cash and cash equivalents at end of period 18 58 811 82 728


SECT

ION 05


ACCOUNTING POLICIESfoR the YeAR eNded 31 mARCh 2013

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 1 of 2010.

1. Presentation of the Financial Statements

1.1 Basis of Preparation

The financial statements have been prepared on a modified cash basis of accounting.

Under this basis, the effects of transactions and other events are recognised in the financial records when the resulting cash is received or paid. The “modification” results from the recognition of certain near-cash balances in the financial statements as well as the revaluation of foreign investments and loans and the recognition of resulting revaluation gains and losses.

In addition supplementary information is provided in the disclosure notes to the financial statements where it is deemed to be useful to the users of the financial statements.

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.

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.

Any amount due from the National/Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the statement of financial position.

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 at the end if the financial year is recognised as a payable in the statement of financial position.

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

2.3 Direct Exchequer Receipts

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

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 Direct Exchequer Payments

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).

2.5 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.


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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.

3. Expenditure

3.1 Compensation of Employees

3.1.1 Salaries and WagesSalaries and wages 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 of each year).

Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position.

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

3.1.2 Social ContributionsEmployer contributions to post employment benefit plans in respect of current employees 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 of 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 Fund and not in the financial statements of the employer department. Employer contributions made by the department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance.

3.2 Goods and Services

Payments made during the year 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.

Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land.

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 Payments for Financial Assets

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.

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 stipulated in the Act.

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.

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


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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 are derecognised as and when the goods/services are received or the funds are utilised. 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 (including departmental employees) and are derecognised upon recovery or write-off.

Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentially 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.

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 or FIFO cost formula.

4.8 Capital Assets

4.8.1 Movable Assets

Initial RecognitionA capital asset is recorded in the asset register 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 assets” 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 assets”. On completion, the total cost of the project is included in the asset register of the department that is accountable for the asset.

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

4.8.3 Intangible Assets

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

All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.*

Subsequent ExpenditureSubsequent 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.

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.


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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 probable 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 a capital expense in the statement of financial performance and are not apportioned between the capital and the interest portions. The total finance lease payment 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 Impairment

The department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows/service potential flowing from the instrument.

5.9 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.

6. Receivables for Departmental Revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements. These receivables are written off when identified as irrecoverable and are disclosed separately.

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 underlying 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.


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NOTES TO THE ANNUAL FINANCIAL STATEMENTSfoR the YeAR eNded 31 mARCh 2013

1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

Programmes 2012/13 2011/12 Final Actual Funds not Appropriation Appropriation Received requested/ received received not received R’000 R’000 R’000 R’000

Administration 130 141 130 141 – 126 544Integrated Economic Development Services 196 460 196 460 – 190 533Trade and Sector Development 452 110 452 110 – 422 983Business Regulation and Governance 66 745 66 745 – 45 782Economic Planning 28 956 28 956 – 36 731

Total 874 412 874 412 – 822 573

2. Departmental Revenue

Note 2012/13 2011/12 R’000 R’000

Tax revenue 719 343 612 939Sales of goods and services other than capital assets 2.1 288 125Interest, dividends and rent on land 2.3 2 006 1 579Sales of capital assets 2.4 – 47Transactions in financial assets and liabilities 2.5 218 79

Total revenue collected 721 855 614 769

Departmental Revenue Collected 721 855 614 769

2.1 Sales of Goods and Services other than Capital Assets

Sales of goods and services produced by the department 286 124Administrative fees 8 7Other sales 278 117Sales of scrap, waste and other used current goods 2 1

Total 288 125

2.2 Interest, Dividends and Rent on Land

Interest 2 006 1 579

Total 2 006 1 579


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Note 2012/13 2011/12 R’000 R’000

2.3 Sale of Capital Assets

Tangible Assets – 47Machinery and equipment – 47

Total – 47

2.4 Transactions in Financial Assets and Liabilities

Receivables 12 21Other Receipts including Recoverable Revenue 206 58

Total 218 79

3. Compensation of Employees

3.1 Salaries and Wages

Basic salary 72 747 66 906Performance award 827 1 068Service Based 4 285 4 502Compensative/circumstantial 2 077 2 354Periodic payments 561 783Other non-pensionable allowances 16 154 14 806

Total 96 651 90 419

3.2 Social Contributions

Employer Contributions Pension 8 038 7 757Medical 5 601 5 318Bargaining council 15 14

Total 13 654 13 089 Total Compensation of Employees 110 305 103 508 Average number of employees 328 335


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NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)foR the YeAR eNded 31 mARCh 2013

Note 2012/13 2011/12 R’000 R’000

4. Goods and Services

Administrative fees 313 251Advertising 4 251 2 805Assets less then R5 000 4.1 178 565Bursaries (employees) 369 467Catering 2 049 1 508Communication 6 878 5 236Computer services 4.2 7 733 6 063Consultants, contractors and agency/outsourced services 4.3 89 220 82 113Entertainment 32 100Audit cost – external 4.4 3 092 2 416Fleet services 1 119 655Inventory 4.5 5 543 3 609Operating leases 5 516 24 862Property payments 4.6 16 578 18 979Travel and subsistence 4.7 8 327 8 248Venues and facilities 4 624 4 614Training and staff development 878 731Other operating expenditure 4.8 680 543

Total 157 380 163 765

4.1 Assets less than R5 000

Tangible Assets 178 565Machinery and equipment 178 565

Total 178 565

4.2 Computer Services

External computer service providers 7 733 6 063

Total 7 733 6 063

4.3 Consultants, Contractors and Agency/Outsourced Services

Business and advisory services 83 636 74 304Legal costs 3 697 2 069Contractors 1 482 4 625Agency and support/outsourced services 405 1 115

Total 89 220 82 113

4.4 Audit Cost – External

Regularity audits 3 092 2 416

Total 3 092 2 416


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Note 2012/13 2011/12 R’000 R’000

4.5 Inventory Food and food supplies 349 325Other consumables 304 212Materials and supplies 425 97Stationery and printing 4 465 2 975

Total 5 543 3 609

4.6 Property Payments

Municipal services 10 072 10 149Other 6 506 8 830

Total 16 578 18 979

4.7 Travel and Subsistence

Local 2 932 3 606Foreign 5 395 4 642

Total 8 327 8 248

4.8 Other Operating Expenditure

Learnerships 45 –Professional bodies, membership and subscription fees 2 –Resettlement costs 122 –Gifts 117 56Other 394 487

Total 680 543

5 Interest and Rent on Land

Interest paid – 38

Total – 38

6 Payments for Financial Assets

Debts written-off 6.1 11 435 237

Total 11 435 237


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Note 2012/13 2011/12 R’000 R’000

6.1 Debts Written Off

Nature of Debts Written Off

Irregular Expenditure Written Off Staff Debt written off – –Irregular expenditure written off 389 –Inter Departmental Debt Written off 11 000 –

Total 11 389 – Recoverable Revenue Written Off Staff Debt written off 46 237

Total 46 237

Total Debt Written Off 11 435 237 7 Transfers and Subsidies

Departmental agencies and accounts Annex 1A 587 495 513 598Households Annex 1B 2 618 282

Total 590 113 513 880

Unspent funds transferred to the above beneficiaries

8 Expenditure for Capital Assets

Tangible Assets 3 781 5 554 Machinery and equipment 31 3 781 5 554

Software and Other Intangible Assets 358 20 Computer software 32 358 20

Total 4 139 5 574

8.1 Analysis of Funds Utilised to Acquire Capital Assets – 2012/13

Voted funds Aid assistance Total R’000 R’000 R’000

Tangible Assets 3 781 – 3 781 Machinery and equipment 3 781 – 3 781

Software and Other Intangible Assets 358 – 358 Computer software 358 – 358

Total 4 139 – 4 139


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Voted funds Aid assistance Total R’000 R’000 R’000

8.2 Analysis of Funds Utilised to Acquire Capital Assets – 2011/12

Tangible Assets 5 554 – 5 554Machinery and equipment 5 554 – 5 554

Software and Other Intangible Assets 20 – 20Computer software 20 – 20

Total 5 574 – 5 574

Note 2012/13 2011/12 R’000 R’000

9 Unauthorised Expenditure

9.1 Reconciliation of Unauthorised Expenditure

Opening balance 69 744 60 753Unauthorised expenditure – discovered in current year – 8 991Less: Amounts approved by Parliament/Legislature with funding (776) –

Unauthorised Expenditure Awaiting Authorisation/Written Off 68 968 69 744

Analysis of Awaiting Authorisation per Economic ClassificationCurrent 68 968 69 744

Total 68 968 69 744

9.2 Analysis of Unauthorised Expenditure Awaiting Authorisation per Economic Classification

CapitalCurrent 68 968 69 744Transfers and subsidies

Total 68 968 69 744

9.3 Analysis of Unauthorised Expenditure Awaiting Authorisation per Type

Unauthorised expenditure relating to overspending of the vote or a main division within a vote 13 968 69 744Unauthorised expenditure incurred not in accordance with the purpose of the vote or main division 55 000

Total 68 968 69 744

Prior year unauthorised expenditure has been restated as a result of the uncondoned unauthorised expenditure of R55m relating to 2008/2009 transfers of funds to Wakegem incurred not in accordance with the purpose of the Vote.

10 Cash and Cash Equivalents

Consolidated Paymaster General Account 58 791 82 707Disbursements – 1Cash on hand 20 20

Total 58 811 82 728


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Note 2012/13 2011/12 R’000 R’000

11 Prepayments and Advances

Travel and subsistence 18 84

Total 18 84

12 Receivables

2012/13 2011/12 R’000 R’000 R’000 R’000 R’000 Note Less than One to Older than Total Total one year three three years years

Claims recoverable 12.1 Annex 4 3 141 178 2 317 5 636 23 138Recoverable expenditure 12.3 – – 99 99 488Staff debt 12.4 261 (21) 54 294 291Other debtors 12.5 150 80 – 230 93

Total 3 552 237 2 470 6 259 24 010

12.1 Claims Recoverable

Note 2012/13 2011/12 12 R’000 R’000

Provincial departments 3 275 19 410Public entities 2 361 3 728

Total 5 636 23 138

12.2 Recoverable Expenditure (Disallowance Accounts)

Overpaid Supplier 99 99Unauthorised use of vehicle by staff – 389

Total 99 488

12.3 Staff Debt

Employees 67 80Ex Employee 415 450Debt Receivable Income (94) (166)Debt Receivable interest (94) (73)

Total 294 291

12.4 Other Debtors

Salary Recoverable 149 –Tax Debt 1 5Other Debtors 80 88

Total 230 93


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Note 2012/13 2011/12 R’000 R’000

13 Investments

Securities Other Than Shares Annex 2ABlue IQ Investment 4 4

Total 4 4

Total non-current 4 4

Analysis of Non Current Investments Opening balance 4 55 004Non Cash Movement (55 000)

Closing Balance 4 4 14 Voted Funds to be Surrendered to the Revenue Fund

Opening balance 99 562 78 279Transfer from statement of financial performance 1 040 35 571Add: Unauthorised expenditure for current year – 8 991Paid during the year (35 570) (23 279)

Closing Balance 65 032 99 562

Prior year Voted funds to be surrendered to the Revenue Fund has been restated as a result of the uncondoned unauthorised expenditure of R55m relating to 2008/2009 transfers of funds to Wakegem incurred not in accordance with the purpose of the Vote.

15 Departmental Revenue and NRF Receipts to be Surrendered to the Revenue Fund

Opening balance 55 481 19 247Transfer from Statement of Financial Performance 721 855 614 769Paid during the year (722 796) (578 535)


16 Payables – Current

Advances received 16.1 13 162 20 000Clearing accounts 16.2 14 136Other payables 16.3 1 308 1 387

Total 14 484 21 523

16.1 Advances Received 16 Department of Trade and industry 13 162 5 000Payable to GDF (Cradle of Humankind Surrender) – 15 000

Total 13 162 20 000


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Note 2012/13 2011/12 16 R’000 R’000

16.2 Clearing Accounts

Description(Identify major categories, but list material amounts)Sal: Income Tax: CL 14 135Sal: Pension Fund: CL – 1

Total 14 136

16.3 Other Payables

Description (Identify major categories, but list material amounts)Municipal deposits – refundable 1 288 1 326Salary Reversal Control 20 61

Total 1 308 1 387

17 Net Cash Flow Available from Operating Activities

Net surplus/(deficit) as per Statement of Financial Performance 722 895 650 340Add back non cash/cash movements not deemed operating activities (742 673) (561 380)(Increase)/decrease in receivables – current 17 751 15 262(Increase)/decrease in prepayments and advances 66 (39)(Increase)/decrease in other current assets 776 – Increase/(decrease) in payables – current (7 039) 19 684Proceeds from sale of capital assets – (47)Expenditure on capital assets 4 139 5 574Surrenders to Revenue Fund (758 366) (601 814)

Net Cash flow Generated by Operating Activities (19 778) 88 960

18 Reconciliation of Cash and Cash Equivalents for Cash Flow Purposes

Consolidated Paymaster General account 58 791 82 707Disbursements – 1Cash on hand 20 20

Total 58 811 82 728


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Note 2012/13 2011/12 R’000 R’000

These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.

19 Contingent Liabilities and Contingent Assets

19.1 Contingent Liabilities

Liable to Nature Housing loan guarantees Employees Annex 3A 127 191Other departments (interdepartmental unconfirmed balances) Annex 5 160 730

Total 287 921

19.2 Contingent Assets

Nature of Contingent Asset Destination Worldwide CC 157 –

Total 157 –

20 Commitments

Current Expenditure Approved and contracted 139 234 82 894Approved but not yet contracted – 28 781

139 234 111 675Capital Expenditure Approved and contracted – 139

– 139

Total Commitments 139 234 111 814

21 Accruals

Listed by Economic Classification

30 Days 30+ Days Total Total

Goods and services 21 162 4 248 25 410 23 935Transfers and subsidies – – – 28 168

Total 21 162 4 248 25 410 52 103

DISCLOSUrE NOTES TO THE ANNUAL FINANCIAL STATEMENTSfoR the YeAR eNded 31 mARCh 2013


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DISCLOSUrE NOTES TO THE ANNUAL FINANCIAL STATEMENTS (continued)foR the YeAR eNded 31 mARCh 2013

Note 2012/13 2011/12 R’000 R’000

Listed by Programme Level Administration 9 794 17 954Integrated Econ Develop Serv 10 351 13 147Trade and Sector Development 3 000 16 635Business Regulation and Govern 1 944 691Economic Planning 321 3 676

Total 25 410 52 103

Confirmed balances with other departments Annex 5 419 1 096

Total 419 1 096

Note 2012/13 2011/12 16 R’000 R’000

22 Employee Benefits

Leave entitlement 4 530 4 618Service bonus (Thirteenth cheque) 2 632 2 437Performance awards 1 148 1 063Capped leave commitments 1 019 1 100

Total 9 329 9 218

The above Leave entitlement amount of R4, 5m is the net amount as a result of credit leave incurred by some of the employees as at year end.

23 Lease Commitments

23.1 Operating Leases Expenditure

Buildings and Machinery Total other fix and structures equipment

2012/13Not later than 1 year 51 770 128 51 898Later than 1 year and not later than 5 years 256 358 16 256 374Later than 5 years 207 237 – 207 237

Total Lease Commitments 515 365 144 515 509

< 1 Year >1 < 5 Years <5 year Total

Building and Other Fixed StructureRental 45 468 207 484 196 907 449 859Cleaning 3 139 24 342 5 145 32 626Security 3 163 24 532 5 185 32 880

Total 51 770 256 358 207 237 515 365


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Commitments for cleaning and security are included on this Lease Commitments as per the above breakdown and not on the Other Commitments as they form part of the overall lease contract of the 124 building.

Buildings and Machinery Total other fix and structures equipment

2011/12 Not later than 1 year 46 383 179 46 562Later than 1 year and not later than 5 years 223 965 144 224 109Later than 5 years 208 736 – 208 736

Total Lease commitments 479 084 323 479 407

GG Machinery Total Vehicles and equipment

23.2 Finance Leases Expenditure**

2012/13 Not later than 1 year 2 088 149 2 237Later than 1 year and not later than 5 years 4 045 – 4 045Later than 5 years – – –

Total Lease Commitments 6 133 149 6 282

2011/12 Not later than 1 year 1 945 149 2 093Later than 1 year and not later than 5 years – 145 145 Total Lease Commitments 1 945 294 2 238LESS: finance costs 36 26 62

Total Present Value of Lease Liabilities 1 909 272 2 176

**This note excludes leases relating to public private partnership as they are separately disclosed.

Note 2012/13 2011/12 16 R’000 R’000

24 Receivables for Departmental Revenue

Tax revenue 62 076 71 000Fines, penalties and forfeits 1 118 443Other 1 054 –

Total 64 248 71 443

The above amount of R1 054 under Other represents a receivable claim from Gauteng Liquor Board for prior year expenditure incurred on behalf of the Gauteng Liquor Board.


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Note 2012/13 2011/12 16 R’000 R’000

24.1 Analysis of Receivables for Departmental Revenue

Opening balance 71 443 32 124Less: amounts received (71 000) (32 124)Add: amounts recognised 64 248 71 443Less: amounts written-off/reversed as irrecoverable 449 –


24.2 Receivables for Department Revenue Written Off

Nature of LossesMunicipal Deposit Receivable (Prescribed Debt) 449 –

Total 449 –

25 Irregular Expenditure

25.1 Reconciliation of Irregular Expenditure

Opening balance 24 901 24 901Add: Irregular expenditure – relating to prior year Add: Irregular expenditure – relating to current year 11 029 6 804Less: Amounts condoned (3 407) (6 804)

Irregular Expenditure Awaiting Condonation 32 523 24 901

Analysis of Awaiting Condonation per Age ClassificationCurrent year 7 622 –Prior years 24 901 24 901Total 32 523 24 901

Irregular Expenditure opening and closing prior year balances have been restated as a result of condoned amounts that were not adjusted on the prior periods Financial Statement.

25.2 Details of Irregular Expenditure – Current Year

Disciplinary steps taken/criminal proceedings 2012/13 R’000

IncidentSCM Deviations 3 330Expo Facto Procurement 77Performance Bonus paid against contracts not signed as at 31 May 2010 109Overtime Paid before Policy Approval 383Overtime paid above 30% of Basic Salaries 46Overtime Expo Facto Approval 246Contracts without complete supporting documents 6 838

Total 11 029


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25.3 Details of Irregular Expenditure Condoned

Condoned by (condoning authority) 2012/13 R’000

IncidentSCM Deviation DAC (3330)Expo Facto DAC (77)

Total (3 407) 2012/13 R’000

25.4 Details of Irregular Expenditure not Recoverable (not condoned)

Performance Bonus paid against contracts not signed as at 31 May 2010 109Overtime Paid before Policy Approval 383Overtime paid above 30% of Basic Salaries 46Overtime Expost Facto Approval 246Contracts without complete supporting documents 6 838

Total 7 622

26 Fruitless and Wasteful Expenditure

26.1 Reconciliation of Fruitless and Wasteful Expenditure

2012/13 2011/12 R’000 R’000

Opening balance 44 951 25 838Fruitless and wasteful expenditure – relating to current year 2 359 19 113Less: Amount Condoned (2 326) –

Fruitless and Wasteful Expenditure Awaiting Resolution 44 984 44 951

The amount of R2,3m relating to the current year’s Fruitless and Wasteful Expenditure incurred was as a result of an early termination of an employment contract on a mutual settlement agreement between the department and the employee. This expenditure was condoned by the Member of the Executive Authority of the department.

26.2 Analysis of Awaiting Resolution per Economic Classification Current 44 984 44 951

Total 44 984 44 951

26.3 Analysis of Current Year’s Fruitless and Wasteful Expenditure Disciplinary steps taken/criminal proceedings 2012/13 R’000 IncidentInterest paid on overdue accounts Under investigation 33Employment contract termination settlement None (Condoned) 2 326

Total 2 359


SECT

ION 05



2012/13 2011/12 R’000 R’000

27 Related Party Transactions

Transactions in financial assets and liabilitiesTransfers 587 495 513 598

Total 587 495 513 598

Year end balances arising from revenue/paymentsReceivables from related parties 65 625 74 727

Total 65 625 74 727

The related parties of the department consist of Gauteng Growth and development Agency(GGDA), Gauteng Liquor Board Trading Entity, Gauteng Gambling Board Agency, Gauteng Enterprise Propeller Agencies, Denokeng Agency, and Cradle of Humankind Agency, Gauteng Tourism Authority Agency and all provincial and National Department and Entities.

The transfer payments made as per above relates to all the Agencies of the department as well as the Gauteng Liquor Board Trading Entity. The Receivables year end balances are from the Gauteng Gambling Board Agency Tax Revenue Collection as well as the claims from the Gauteng Liquor Board Trading Entity and GGDA in respect of expenditure incurred by the department on behalf of the Gauteng Liquor Board Trading Entity an GGDA . In both categories the prior year has been restated accordingly.

28 Key Management Personnel

No. of Individuals 2012/13 2011/12 R’000 R’000

Political office bearers (provide detail below) Officials: 1 1 864 1 613 Level 15 to 16 3 5 941 5 559 Level 14 (incl. CFO if at a lower level) 16 7 790 8 062Family members of key management personnel

Total 15 595 15 234

29 Impairment

2012/13 2011/12 R’000 R’000

Impairment Debtors 54 120Other

Total 54 120


SECT

ION 05


30 Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening Current year Additions Disposals Closing balance adjustment to balance prior year balances R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 24 933 (50) 2 292 122 27 053Transport assets 556 – – 556Computer equipment 14 473 (50) 1 020 122 15 321Furniture and office equipment 7 621 925 – 8 546Other machinery and equipment 2 283 347 – 2 630

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 24 933 (50) 2292 122 27 053

30.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Cash Non- (Capital work Received, Total cash in progress current, not current costs paid (paid and finance current year, lease received payments) prior year) R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 5 909 – (2 128) (1 489) 2 292Transport assets 1 912 (1 912) –Computer equipment 2 011 (991) 1 020Furniture and office equipment 1 375 (450) 925Other machinery and equipment 611 (216) (48) 347 TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 5 909 – (2 128) (1 489) 2 292


SECT

ION 05



30.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Sold for Transfer out Total Cash cash or destroyed disposals Received or scrapped Actual R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT Transport assets Computer equipment 122 122Furniture and office equipment Other machinery and equipment

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 122 122

30.3 Movement for 2011/12

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening Additions Disposals Closing balance balance R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 18 937 7 304 1 308 24 933 Transport assets 1 217 – 661 556Computer equipment 10 042 4 915 484 14 473Furniture and office equipment 6 363 1 313 55 7 621Other machinery and equipment 1 315 1 076 108 2 283

Total movable tangible assets 18 937 7 304 1 308 24 933

30.4 Minor Assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013

Machinery and Total equipment R’000 R’000

Opening balance 3 329 3 329

Additions 178 178Disposals

Total minor assets 3 507 3 507

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2012 Opening balance 2 847 2 847

Additions 566 566Disposals 84 84

Total minor assets 3 329 3 329


SECT

ION 05


31 Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening Current year Additions Disposals Closing balance adjustments balance to prior year balances R’000 R’000 R’000 R’000 R’000 Computer software 940 – 358 – 1 298

Total intangible capital assets 940 – 358 – 1 298

31.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Cash Non-Cash (Development Received Total work in current year, ` progress not paid – current (Paid current costs) year, received prior year) R’000 R’000 R’000 R’000 R’000 Computer software 358 358

Total additions to intangible capital assets 358 – – – 358

31.2 Movement for 2011/12

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening Additions Disposals Closing balance balance R’000 R’000 R’000 R’000 Computer software 920 20 – 940

Total intangible capital assets 920 20 – 940


SECT

ION 05


AN

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–

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32

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587

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– –

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587

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ANN

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FIN

ANCI

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THE

YEAR

EN

DED

31 M

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201

3

SECTION 05


GAU

TEN

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T O

F EC

ON

OM

IC D

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| VOT

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ANN

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FIN

ANCI

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THE

YEAR

EN

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31 M

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201

3

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NA

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STA

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31

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3St

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R’00

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–

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Subt

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ANCI

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TATE

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OR

THE

YEAR

EN

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31 M

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3

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GAU

TEN

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ANN

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ANCI

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THE

YEAR

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NN

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114

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2 36

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8 3

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19 3

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/03/

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31

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2012

31

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2013

31

/03/

2012

31

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31

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R’

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R’00

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Go

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Curr

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–

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8 46

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12

374

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–

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– 30

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Subt

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419

1 09

6 16

0 73

0 57

9 1

826

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730

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GAU

TEN

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F EC

ON

OM

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OPM

ENT

| VOT

E 3

ANN

UAL

FIN

ANCI

AL S

TATE

MEN

TS F

OR

THE

YEAR

EN

DED

31 M

ARCH

201

3

SECTION 05


Inventory

Note Quantity 2012/13 Quantity 2011/12 R’000 R’000

Inventory

Opening balance 48 608 732 – –Add/(Less): Adjustments to prior year balance – – – –Add: Additions/Purchases – Cash 35 936 2 128 239 653 3 609Add: Additions – Non–cash – – – –(Less): Disposals (91) (1) (332) 5(Less): Issues (58 648) (1 476) (190 713) (2 872)Add/(Less): Adjustments – – – –

Closing balance 25 813 1 383 48 608 732

ANNEXUrES TO THE ANNUAL FINANCIAL STATEMENTSfoR the YeAR eNded 31 mARCh 2013


SECT

ION 05

Inter-Entity Advances Received (note 25 and Note 26)

Confirmed balance outstanding Total 31/03/2013 31/03/2012 31/03/2012 31/03/2012 R’000 R’000 R’000 R’000

NATIONAL DEPArTMENTS

Current Department of Trade and Industry 13 162 5 000 13 162 5 000

Subtotal 13 162 5 000 13 162 5 000

PUBLIC ENTITIES

Current Cradle of Humankind and Dinokeng – 15 000 – 15 000

Subtotal – 15 000 – 15 000 Total 13 162 20 000 13 162 20 000Current 13 162 20 000 13 162 20 000Non-current – – – –


SECT

ION 06

GAUTENG LIQUOR BOARDANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2013


SECT

ION 06 GAUTENG LIQUOR BOARD

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013

TABLE OF CONTENTSACCOUNTING OFFICER’S REPORT & STATEMENT OF RESPONSIBILITY

REPORT OF THE AUDIT COMMITTEE

REPORT OF THE AUDITOR-GENERAL

STATEMENT OF FINANCIAL POSITION

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASH FLOWS

ACCOUNTING POLICIES & NOTES TO THE ANNUAL FINANCIAL STATEMENTS

133

138

140

142

143

144

145

146


1. General Review of the State of Financial Affairs

The main income of the Gauteng Liquor Board (GLB) consists of license fees. The license fees (inclusive of renewals) are valid for one year. Prior to the current financial year, the GLB deferred revenue to the year it was deemed as earned. However the income for the year under review was disclosed in full not providing for income received in advance. The GLB received R33million in grants from the department of Economic Development. The GLB collected R27 million for licenses. The operating results for GLB is a surplus balance of R7million (2012, deficit of – R4.2 million restated).

As a trading account the GLB should be financially self-supportive in accordance with Treasury Regulation 19 and should not rely on grants from the Department of Economic Development. Based on the proposed financial model and changes in the regulation and legislation, the GLB is expected to become a self-sustaining entity after issues of revenue collection have been addressed.

2. Important Policy Decisions and Strategic Issues Facing the Gauteng Liquor Board

The change in the strategic direction, the Gauteng Liquor Board has been appraised of areas where internal controls and risk management should be designed to provide reasonable, but not absolute assurance against material misstatements and losses. The GLB has put internal financial controls to provide assurance regarding: The safeguarding of assets against unauthorised use or

disposition, The maintenance of proper accounting records, The reliability of financial information used within the business

or for publication.

The controls developed contain self-monitoring mechanisms and actions are taken to correct deficiencies as they are identified. Furthermore, because of changes in conditions, the effectiveness of internal financial controls may vary over time and based on management diligence. The Liquor Licensing turnaround strategy has so far made some inroads into major project undertaken by the department.

3. Major Projects that have taken Place During the Year

This report will elaborate on the implementation of Gauteng Liquor Board programme of action and activities in relation to administration, compliance, Board Secretariat, education and awareness as the main core programmes.

3.1 Administration

The turnaround plan has been implemented the following key focus areas in the 2012/13 financial year:

To date, the Board has introduced various measures to curb fraudulent issuing of licenses. The issuing of licenses has now been centralized and only the Chairperson and the Secretariat have access to any pro-forma licenses and issuing system with chronologically verified numbers. The only remaining aspect which is of concern to the Board pertains to renewal licenses. It is however important to note that with the introduction of the new IT system, these concerns regarding the reissuing of the renewal licenses will be eliminated as they will be migrated into this system.

The IT system yields the following benefits respectively, the easiness of liquor application process, the swiftness in process applications at Regional level, introduction of reliable data and creation of accountability and responsibility by various personnel through the licensing process. The Board has been advised by the IT Team that the system is capable of handling voluminous applications at any time should this occur.

The Business Process Re-engineering Process has led to an analysis of the organizational structure and service delivery model completed in order to ensure the sustainability of increased efficiency as a result of automation.

(i) The Gauteng Liquor Act and the Bill

Some of the challenges that plagued the liquor licensing environment were as a result of the provisions that were made (or not made) in the legislative framework. The subsequently, the Board undertook a review of the Gauteng Liquor Act of 2003, including its regulations. The Draft Bill that emerged as a result, was published for public comments in February 2012, and is currently following the prescribed legislative process.

In order to address concerns regarding monopolistic tendencies, especially in black townships, a framework agreement has been entered into with the Competition Commission. This framework seeks to eliminate unethical business practices by large corporations and advance black economic empowerment.

(ii) Improving the Capacity of the Board

The Board has been operating at a full staff compliment. As a result, there have been regular sittings, which immensely contributed to eradication of the backlog.

(iii) Effective Operations of Regional Offices

The Manager responsible for Regional co-ordination was appointed. Through this co-ordination, performance reporting was enhanced and brought about a certain degree of improvement in Regional performance and management.

However, Regional offices have been restructured with the view of the impending introduction of the IT and business systems.

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ACCOUNTING OFFICEr’S rEPOrTfoR the YeAR eNded 31 mARCh 2013

GAUTENG LIQUOR BOARDANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013


This is however a continuing process. The IT Team has already commenced training Regional Managers regarding the utilization of the new IT and business systems. The Board will ensure that the Secretariat is also trained in the utilization of the system to ensure continued harmonization of the process.

During the previous years there were no formal requirements which Shebeen permit holders were expected to meet and as a result majority of the Shebeen Owners were not observing the laws, and they were always. The Department has taken steps to recognize and formalize the Shebeens as formal businesses in the Liquor Industry, by introducing the Shebeen regulations which outlines the minimal requirements for valid Shebeen outlets to operate. The Department has developed a rolled schedule to consider the application for the Shebeen license.

(iv) Improving the Trading Account of the Liquor Licensing and Regulation Office

To enhance and improve the management of the Liquor Licensing and Regulation Office Trading Account so that the Office has sound financial management, since the appointment of the new collection agent (FNB), revenue collected can be categorized into the different revue streams as per the Financial Reporting requirements. Revenue collection is also recorded timeously. The Liquor licensing Unit, has begun to improve on revenue collection, a total annual revenue target of R40 million has been set. During the last quarter, the fourth quarter revenue collection target was exceeded as a clear indication that when measures are in place the annual target as set is achievable.

(v) Ensuring Compliance to Gauteng Liquor Act, No 2 of 2003, Regulations in Terms of Section 141 of Gauteng Liquor Act and Other Legislation such as National Liquor Act, No 27 of 1989

A decision is taken to separate the inspection division into two areas Pre- Inspection Officers

This team of Inspection Officers are responsible for inspection of the premises before the Board can consider the applications. Their main function is to advise the Gauteng Liquor Board about the suitability of the premises for the sale of alcohol. A total of 15 Inspection Officers will be appointed to conduct this function.

Monitoring and enforcement of compliance of liquor traders intensified by: – Appointment of 15 inspection officers to address capacity constraints; and – Additional capacity enables continued operations to rigorously facilitate the responsible trading in alcohol.

(vi) Ensure Effective Communications, Education, Awareness and Stakeholder Relations

A Director responsible for Education and Awareness was appointed. Education and awareness programmes were implemented, that were geared towards enhancing stakeholder relations. The Liquor Hotline will be launched as a Liquor Communication Project.

The division will be responsible for profiling the work of the Board and including all the Campaigns to be carried by the Liquor licensing Unit, conducting quarterly media briefings on the progress made in the Liquor Unit, managing customer satisfaction surveys, receiving and responding to queries within the provincial turnaround time, and the management of the website content of the Liquor Licensing Unit.

(vii) The Eradication of the Backlog in Liquor Licensing Application

In order to address the backlog, the Board sat at least four times a week. Additional staff capacity linked to the Board secretariat functions has been recruited. As a result substantial progress has been made in ensuring that the feedback on the lodged application is received within the timeframes, and other areas were progress is made includes: Measures introduced by the Gauteng Liquor Board to curb

fraudulent issuing of licenses by way of: – Streamlining processes; – Managers are appointed to conduct quality checks on the reports submitted by the pre-inspection Officers. – Centralizing the issuing of licenses; and – Limitation on the relevant officials that are authorized to issue a license at any given time.

(viii) Improving the Liquor Operations System

In an attempt to address the operational inefficiencies, various systems have been identified and implemented. Among the systems introduced, there is an IT and Business systems to assist with the processing of liquor applications in the most efficient manner. This system is currently yielding positive results. The Liquor Licensing Unit has also introduced a license renewal system that will assist in matching the revenue collected figures from the bank account with the data captured in the administration‘s data base. Furthermore, appropriate measures had been introduced and are currently under way to address risk management measures in respect of data and document management systems.

3.2 Compliance

The Department has strengthened relations with the SAPS and Metro Police. Through this initiative, joint operations are held to combat illegal trading in alcohol. Illegal outlet have been shut down and alcohol confiscated by the SAPS. The relationship with Liquor Traders associations ensures compliance to the Act through codes of conduct developed and enforced by those associations.

The Compliance unit responds to complaints and queries, and investigations are conducted to ensure that corrective action is taken. The department will continue to recruit additional personnel as liquor inspectors to ensure compliance with the Liquor Laws, and revoke the licenses of the liquor outlets where criminal activities are happening and where the traders are not observing the laws governing the Liquor trade.

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3.3 Secretariat

Amongst the mechanisms proposed and authorized related to the introductions of the moratorium for a period of six months to eliminate the backlog on certain types of liquor licenses. To date no backlog exists and liquor applications are being processed in an ordinary cause of duty.

The Board centralized Secretariat services in order to standardize Board support and ensure a seamless application system.

3.4 Education and Awareness

The GLB continues to be involved in joint awareness and education programmes with key departments, the traders’ associations and the players in the industry. The department is currently engaging the SAB, as a stakeholder to explore legacy projects aimed at empowering the small businesses in the Liquor Industry. A joined research study will be conducted with an aim to fast track transformation and empowerment of the small business operators.

The department of transport has also been identified as a key stakeholder during the festive month’s campaign of Arrive Alive. We continue to partner with this department in the campaigns about

No to abuse of alcohol during the festive season. No to drinking and driving. No to selling alcohol to under-age and school children. No to violation of liquor trading hours.

3.5 Review of the Gauteng Liquor Act2, 2003 and New Bill

The Department has completed the path to legislation drafting adopted by the Province. The Bill has been introduced at the Legislature, and is now at the Legislature process. After the Legislature adopts the Bill, it will be submitted to the Premier for assent. When the Premier assents the Bill it becomes law.

Once the Bill is passed into law, members of the public will have the right to raise objections to the issuing of renewal licenses to the outlets which are causing nuisance to the communities, the department will be obliged to conduct education and awareness workshops to educate Liquor traders about the laws which regulate the industry, so that they could trade responsibly. The emphasis of the messages will be as follows: no sale of alcohol to minors, no sale of alcohol to visibly intoxicated people.

There will not be automatic renewal of licenses and the inspections will be conducted to ascertain whether the outlets are trading in accordance with the issued license conditions.

4. Services Rendered by the Gauteng Liquor Board

The services rendered by the Gauteng Liquor Board are detailed in the Performance Information Report.

The Department will sign the performance Charter with the Gauteng Liquor Board, which include the commitment to ensure the Board process the license application within the turnaround time of 41 days.

4.1 Tariff Policy

The Gauteng Liquor Board charges license fees as per Gauteng Liquor Act 9 of 2003 tariff structures.

4.2 Inventories

The Gauteng Liquor Board keeps no material stocks. Minimal consumables purchased during the year for stationery and other food supplies are expensed immediately.

5. Utilization of Donor Funds

The Gauteng Liquor Board did not receive any donor funding during the financial year.

6. Organizations to whom Transfer Payments have been made

The Gauteng Liquor Board did not make any transfer payments during the year under review.

7. Public Private Partnerships (PPP)

The Gauteng Liquor Board did not have any public private partnerships during the year under review.

8. Corporate Governance Arrangements

With a view to improve and strengthen corporate processes pertaining to strategic planning, financial management and performance oversight, the following processes were initiated: The GLB complies strictly with the National Treasury Framework

on strategic planning; A framework on financial planning and management has been

finalised; The Monitoring and Evaluation Framework for the DED Group

has been finalised; The approach to monitoring financial and non-financial

performance has been strengthened; and An internal planning calendar has been designed to assist GLB

with day to day operations including compliance and regulatory obligations.

8.1 Risk Management Approach

The GLB risk management approach is aligned with the Provincial Treasury’s Risk Management Framework.

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A Strategic Risk Assessment workshop, attended by the Department’s Senior Management, was convened during the year under review. Action plans to address risks identified were developed and implemented.

The Risk and Audit Management Committee (RAMC) facilitates the resolution of audit findings raised by Auditor-General (AG) and Gauteng Audit Services (GAS). All audit matters raised by AG in the 2011/12 audits were addressed by the Department. The GLB also addressed audit matters raised by GAS. The RAMC comprises heads of all business units. The committee met monthly, with members providing progress reports.

8.2 Fraud Prevention Policies

A fraud risk assessment workshop was held to update the Fraud Prevention Plan during the year under review. Progress on implementation of fraud prevention strategies was tracked throughout the year.

The GLB through the Department of Economic Development is a member of the Provincial Anti-Corruption Coordinating Committee. Matters referred by the National Anti-Corruption Hotline are duly investigated.

8.3 Audit Cluster Committee

The audit committee serves a cluster of departments and provides oversight mainly on audit, performance and financial management issues. During the year under review, the committee also focused on GLB’s risk management activities, with specific reference to the top ten risks. The audit committee approved the department’s 3 year rolling Internal Audit Plan which included the GLB risks.

8.4 Internal Audit

Gauteng Audit Services (GAS), a unit within the Department of Finance provides internal audit services to GLB and other provincial departments. GAS provides assurance on the GLB effectiveness and efficiency of internal controls, governance and risk management processes. During the year under review, GAS completed its Annual Audit Plan.

The Risk and Audit Management Committee (RAMC) was instrumental in facilitating the implementation of GAS recommendations emanating from audits performed in the last three years. Significant progress has been achieved in this regard. GAS is invited to all RAMC meetings in the 2012/13 financial year. They will present new findings and assist with the tracking thereof.

8.5 Processes to Minimize Conflict of Interest

In line with the requirements of the Department of Public Service and Administration, GLB requires its senior managers to disclose their financial interests on an annual basis. All SMS members have signed the financial disclosure forms and all Departmental Acquisition Committee (DAC) members sign the declaration of interest register in every meeting.

8.6 Implementation of the Code of Conduct

The code of conduct is available and forms part of the employment contract for each staff member.

8.7 Safety, Health and Environmental Issues

The Gauteng Liquor Board has nominated OHS representatives. The Gauteng Liquor Board follows the OHS Act guidelines as well as the OHS policy. OHS is reported on as a regular feature in the departmental internal newsletter.

9. Discontinued Activities/Activities to be Discontinued

There were no discontinued activities in the Gauteng Liquor Board within the financial period under review.

10. New/Proposed Activities

None

11. Asset Management

The GLB has done the assets verification for the financial year under review and updated its asset register and the accounting treatment of fixed assets as required by the relevant legislation has been updated accordingly.

12. Events after the Reporting Date

There are no reportable events after the reporting date.

13. Performance Information

The internal controls to strengthen the quality of reported information were put in place by ensuring that reported information had to be consolidated per sub-programme and programme, where applicable, and submitted to the M&E unit by the respective sub-programme and programme managers. Programmes and sub-programmes were further required to provide portfolio of evidence on all reported information.

The board further embarked on the process to determine the extent to which planned targets in the annual performance were met by preparing the summary of technical assessment per indicators across all budget programmes. One on one discussions with programmes that did not perform well were undertaken and guidance provided on improving performance.

The departmental-wide Monitoring and Evaluation Policy Framework has been revised, the consultative process with respective programmes undertaken and will be approved in the next financial year.

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14. SCOPA Resolutions

The GLB has responded to each of the SCOPA resolutions as well as AG findings and we have improved the internal control environment as per these recommendations. We continue to engage the Committee and the AG on internal control matters.

15. Prior Modifications to Audit Reports

Modification of audit report Findings on progress

Revenue and Receivables A process is under way to establish a database for the 2013/2014 financial year.

Expenditure Management A payment monitoring system is in place. Cash-flow projections are prepared in advance to engage Provincial Treasury where challenges are identified in advance.

Financial and performance management Key accounts are reconciled monthly, signed-off by senior officials.

16. Exemptions and Deviations Received from the National Treasury

None

17. Other

None

18. Approval

The Annual Financial Statements set out on pages 16 to 36 have been approved by the Accounting Officer.


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GAUTENG PrOVINCIAL GOVErNMENTReport of the Audit Committee – Cluster 1

Gauteng Liquor Board

We are pleased to present our report for the financial year ended 31 March 2013.

The Audit Committee consists of the external members listed hereunder and is required to meet a minimum of at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference (GPG Audit Committee Charter), five meetings were held during the current year, i.e. three meetings for Quarterly Performance Reporting (financial and non-financial) and two meetings to review and discuss the Annual Financial Statements and the Auditor-General Report.

Name of Member Number of Meetings Attended Vishnu Naicker (Chairperson) 05 Tshidi Molala (Member) 05Wayne Poggenpoel (Member) 04

Audit Committee Member Mr. Wayne Poggenpoel did not attend one meeting since he was appointed after the first quarter reporting period. However, all meetings were quorate. Executive Members:

In terms of the GPG Audit Committee Charter, the Officials listed hereunder are obliged to attend the meetings of the Audit Committee:

Compulsory Attendees Number of Meetings Attended

Khulu Radebe (Head of Department) 01Albert Chanee (Acting Head of Department) 04 Preston Mabena (Chief Financial Officer) 04Oupa Tshule (Chief Risk Officer) 03

During the financial year under review, Mr. Khulu Radebe has been put on suspension as the Head of Department and Mr. Albert Chanee was appointed to act in the capacity of the Head of Department. Therefore, the Audit Committee is satisfied that the Trading Entity adhered to the provisions of the GPG Audit Committee Charter.

The Members of the Audit Committee met with the Senior Management of the Department and Internal Audit, collectively to address risks and challenges facing the Departments. A number of in-committee meetings were held to address control weaknesses and conflicts with the Department.

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) of the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control

The Audit Committee has observed that the overall control environment has continued to improve during the year under review. However, there are still some concerns with the level of internal controls within the entity where evidence of lapses of effective monitoring and enforcement by Management were observed.

During the year under review, several deficiencies in the system of internal control and deviations were reported by the Auditor-General South Africa. In certain instances, the matters reported previously have not been fully and satisfactorily addressed.

The quality of in year management and monthly / quarterly reports submitted in terms of the PFMA and the Division of Revenue Act.

The Audit Committee has not reviewed the monthly and quarterly reports of the Gauteng Liquor Board and will ensure that this is done in the forthcoming financial year.

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 concurs with and accepts the Auditor-General’s conclusions on the Annual Financial Statements, and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General.


Internal Audit

The Audit Committee is satisfied that the Internal Audit plans addresses a clear alignment with the major risks, adequate information systems coverage, a good balance between different categories of audits, i.e. risk-based, mandatory, performance and follow-up audits and involvement and support by Management.

The Audit Committee has noted considerable improvement in the communication between the Executive Management, the Auditor-General and the Internal Audit Function, which has strengthened the Corporate Governance initiatives.

The Audit Committee wishes to stress that in order for the Internal Audit Function to operate at optimal level as expected by the Audit Committee, it requires more capacity and skills.

Risk Management

Progress on entity’s risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee is not satisfied that the actual management of risk is receiving attention and the areas of revenue management and asset management still require significant improvement. Management must take responsibility for the managing of risk in their respective areas of work. This area will be closely monitored during 2013/14 financial year. Forensic Investigations

The Audit Committee is not entirely satisfied that the forensic investigations are properly reported with age-analysis of all reported issues indicated. Details of results in respect of investigations conducted as a result of calls through the fraud hotline were not provided to the Committee. This is an area of improvement going forward.

One-on-One Meetings with the Accounting Officer

The Audit Committee has met with the Accounting Officer from the Department of Economic Development to address unresolved issues relating to the Gauteng Liquor Board.

One-on-One Meetings with the Executive Authority

The Audit Committee has met with the Executive Authority for the Department of Economic Development to apprise him on the performance of the Gauteng Liquor Board.

Conclusion

The Committee concurs in general with the conclusions of the Auditor-General on the Annual Financial Report of the entity for the year ended 31st March 2013.

The Committee has once again taken note of the concerns of the Auditor-General and accepts that there is further room for improvement in the areas of asset management, revenue management, expenditure and the internal control environment. The Audit Committee will ensure that the internal audit plan addresses these issues and will monitor the implementation of the recommendations contained in the Auditor-General’s Report.

I would like to thank all members of the Committee for their contribution and the professional way in which meetings were conducted. To the Honorable MEC, Acting Chief Executive Officer and the staff of the Gauteng Liquor Board, the Committee wishes to express its sincere appreciation for the progress made this year and the manner in which the Entity engaged with the Audit Committee.

Mr Vishnu Naicker,Chairperson of the Audit Committee31 July 2013

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rEPOrT OF THE AUDITOr-GENErAL TO THE GAUTENG PrOVINCIAL LEGISLATUrE ON GAUTENG LIqUOr BOArD

Report on the Financial Statements

Introduction

1. I have audited the financial statements of the Gauteng Liquor Board set out on pages 142 to 157, which comprise, the statement of financial position as at 31 March 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting Officer’s Responsibility for the Financial Statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP and the requirements of the Public Finance Management Act 1. 2009 (Act No.1 of 1999) (PFMA) for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s Responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. 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.

4. 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.

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

Basis for Qualified Opinion

Revenue and Receivables

6. The trading entity did not have adequate internal controls to maintain records of revenue from liquor licenses, due to inadequate record keeping. The entity’s records did not permit the application of alternative audit procedures regarding liquor licenses revenue. Consequently, I was unable to obtain sufficient appropriate audit evidence to satisfy myself as to the completeness of licensing revenue amounting to R26 643 000. I was also unable to satisfy myself with the completeness, valuation, existence and cut off of the related receivable.

Opinion

7. In my opinion, except for the effects of the matters described in the Basis for qualified opinion paragraphs, the financial statements present fairly, in all material respects, the financial position of the Gauteng Liquor Board as at 31 March 2013 and financial performance and cash flows for the year then ended, in accordance with the SA Standard of GRAP and the requirements of the PFMA.

Emphasis of Matter

8. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Restatement of Corresponding Figures

9. As disclosed in note 4 to the financial statements, the corresponding figures for 31 March 2012 have been restated as a result of an error discovered during 2012/13 in the financial statements of the Gauteng Liquor Board at, and for the year ended, 31 March 2012.

Report on Other Legal and Regulatory Requirements

10. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined Objectives

11. I performed procedures to obtain evidence about the usefulness and reliability of the information in the annual performance report as set out on pages 24 to 65 of the annual report.

12. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives.


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The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected objectives is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

13. There were no material findings on the annual performance report concerning the usefulness and reliability of the information.

Additional Matter

14. Although no material findings concerning the usefulness and reliability of the performance information was identified in the performance report, I draw attention to the following matter below.

Achievement of Planned Targets

15. Of the total number of 11 targets planned for the year, 3 of targets were not achieved during the year under review. This represents 27% of total planned targets that were not achieved during the year under review.

Compliance with Laws and Regulations

16. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual Financial Statement

17. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1) of the PFMA as material adjustments were identified during the audit. As reported in Section 2, Part A above, some of the material misstatements in disclosure items identified by the auditors were corrected, however the uncorrected misstatements resulted in the financial statements in qualified opinion.

Expenditure Management

18. The accounting officer did not take adequate steps to prevent irregular expenditure, as required by section 38(1)(c)(ii) of the Public Finance Management Act and National Treasury Regulation 9.1.1.

19. Contractual obligations and money owed by the department were not always settled within 30 days or an agreed period, as required by section 38(1)(f) of the Public Finance Management Act and Treasury Regulation 8.2.3.

Revenue Management

20. Penalties were not always charged on late renewals as required by section 100 of the Gauteng Liquor Act.

21. The compliance unit did not always ensure that liquor license traders with lapsed licenses complied with section 98 of the Gauteng Liquor Act and renewed. Furthermore there was not inspection done to ensure that liquor license holders with lapsed license stopped trading.

22. Occasional licenses were issued to outlets whose primary business is to sell liquor which is in contravention of section 31 of the Gauteng Liquor Act.

Asset Management

23. Due to the number of errors identified during the review of the asset register and process undertaken by management to verify its assets, the Accounting officer did not adequately safeguard assets in contravention of section 38(1) d of the Public Finance Management Act No.1 of 1999.

Internal Control

24. I considered internal control relevant to my audit of the financial statements, the performance report and compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the basis for qualified opinion and the findings on compliance with laws and regulations included in this report.

Leadership

25. Management did not provide adequate oversight responsibility regarding financial reporting and compliance and related internal controls.

financial and Performance Management

26. The financial statements and information supporting disclosure notes was not adequately reviewed for completeness and accuracy prior to their submission for audit.

27. Management did not adequately review and monitor controls with laws and regulations.

28. Monthly revenue reconciliation prepared were not adequate to address completeness of revenue as compliance unit is not involved in the processes of reconciling revenue received to database held.

Johannesburg31 July 2013


Restated Note 2013 2012 R’000 R’000

ASSETS

Non-current Assets Property, plant and equipment 4 1 408 2 865 Current Assets 9 998 827Cash and cash equivalents 6 9 369 515Trade and other receivables 5 629 312

Total Assets 11406 3692

Liabilities Current Liabilities 8 471 10 983Trade and other payables 7 8108 10 533Provisions 8 363 450 Total Liabilities 8 471 10 983 Equity Accumulated surplus/(loss) 2 935 (7 291)Total Equity 2 935 (7 291)

Total Equity and Liabilities 11 406 3 692

STATEMENT OF FINANCIAL POSITIONfoR the YeAR eNded 31 mARCh 2013

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Note 2013 2012 R’000 R’000

REVENUE

Sale of goods and rendering of service 17 26 643 24 369Transfers and subsidies 32 670 15 100Finance income/interest 9 29 17Other Income 9 561 44

Total Revenue 59 903 39 530 Expenditure

Staff costs (23 084) (22 291)Goods and services 10 (28 348) (20 622)Loss on disposal of assets (205) –Depreciation and amortization (1 255) (873)

Total Revenue (52 892) (43 786)

Profit/(Loss) for the Year 7 011 (4 256)

STATEMENT OF COMPrEHENSIVE INCOMEfoR the YeAR eNded 31 mARCh 2013

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STATEMENT OF CHANGES IN EqUITYfoR the YeAR eNded 31 mARCh 2013

Accumulated Total surplus/(deficit) R’000 R’000

Balance at 1 April 2012 as restated (7 291) (7 291)

AdjustmentsPrior year reversals 3 215 3 215Surplus/(deficit) for the year 7011 7011

Balance at 31 March 2013 2935 2935

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STATEMENT OF CASH FLOWSfoR the YeAR eNded 31 mARCh 2013

Note 2013 2012 R’000 R’000

Cash Flows from Operating ActivitiesCash Receipts 51 409 39530Transfers and subsidies 25 000 15 100

Sale of goods and rendering of services 26 358 24 369Interest, dividends and rent on land 29 17Other operating revenue 22 44 Cash Utilised from Operations (42 555) (46 992)Compensation of employees (20 197) (23 020)Goods and services (22 358) (23 972)Interest paid Net Cash Outflows from Operating Activities 13 8 854 (7 462) Cash Flows from Investing Activities Purchase of property, plant and equipment 4 – (395)Other movement in property, plant and equipment Proceeds on disposal of property, plant and equipment Net Cash Outflows from Investing Activities – (395) Net Increase/Decrease in Cash and Cash Equivalents 8 854 (7 857)Cash and cash equivalents at the beginning of the year 515 8 372

Cash and Cash Equivalents at End of the Year 9369 515

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1. Reporting Entity

The Gauteng Liquor Board (GLB) is a trading entity of the Department of Economic Development – Gauteng Provincial Government and is domiciled in South Africa. The address of the entity’s registered office is Matlotlo House, 1st floor94 Main Street, Johannesburg, 2000. The entity is tasked with the challenge of regulating the liquor retail and micro manufacturing industries as stipulated by the Gauteng Liquor Act No. 2 of 2003.

2. Basis of Preparation

a) Statement of Compliance

The financial statements have been prepared in accordance with, and comply with, South African Statements of Generally Accepted Accounting Practice (SA GAAP) including any interpretations of such Statements issued by the Accounting Practices Board and the Public Finance Management Act, 1999 (Act No 1 of 1999).

b) The Application of the Standards of GRAP by Trading Entities

It must be noted that public entities, as defined in the Public Finance Management Act will be reporting on South African Generally Recognized Accounting Practice (SA GRAP) including any interpretations of such Statements issued by the Accounting Practices Board and the Public Finance Management Act, 1999 (Act No 1 of 1999) with effect from 1 April 2013.

c) Basis of Measurement

The financial statements have been prepared in accordance with the going-concern principle on the historical basis except for the following material items in the statement of financial position:

The entity recognised and measured its assets for the first-time during the year under review by applying the following policy:

Initial measurement was measured at a deemed cost, using fair value at the date of initially recognising and measuring the assets.

The fair value of items of property, plant and equipment is determined with reference to a market based appraisal performed professionally by valuers. Where no evidence is available to determine the market value in an active and liquid market, the fair value of the item of property, plant and equipment is established by reference to other items with similar characteristics, in similar circumstances and location.

Financial instruments - refer to note 3(e) below.

d) Functional and Presentation Currency

These financial statements are presented in Rands which is the entity’s functional currency.

All financial information presented in Rands has been rounded to the nearest thousand rands.

e) Use of Estimates and Judgments

The preparation of financial statements in conformity with SA GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. It also requires management to exercise its judgment in the process of applying the GLB’s accounting policies.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The areas involving a higher degree of judgment or complexity or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3(k) (Critical accounting estimates and judgments).

3. Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, except as explained in note 2(e), which addresses changes in accounting policies.

a) Revenue

Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing involvement with the goods and the amount of revenue can be measured reliably. Transfers of risks and rewards vary depending on the individual terms of the contract of sale.

Revenue arising from the rendering of services is based on the stage of completion of the transaction at the reporting date. The stage of completion can be determined by reference to various methods such as the physical amount of work performed in relation to the total project when the outcome can be estimated reliably, services performed to date as a percentage of total services to be performed, the proportion that costs incurred to date bear to the estimated total costs of the transaction.

The main income of the GLB consists of license fees. The license fees (inclusive of renewals) are valid for one year. The Gauteng Liquor board shall recognize revenue if, and only if, the actual payment for a particular source of revenue has been received by the Gauteng Liquor Board in the bank account. This policy applies to the following source of revenue of the Gauteng Liquor Board:

NOTES TO THE FINANCIAL STATEMENTSfoR the YeAR eNded 31 mARCh 2013

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Application fees for liquor licences; Activation fees; Renewals of licenses; and Payment received for occasional fees.

b) Government Grants

Government grant includes allocations received during the period from the Gauteng Provincial Government. Government grants are recognised as income on a systematic and rational basis over the periods necessary to match the grants with the related costs which they are intended to compensate.

c) Property, Plant and Equipment

Property, plant and equipment is recognized as an asset when it is probable that future economic benefits associated with the use of the asset will flow to the organisation and the cost of the item can be reliably measured. Property, plant and equipment are carried at historical cost less accumulated depreciation and impairment losses.

Residual values are reviewed annually and any fair market value gains treated as capital reserves.

All cost associated with development and maintenance of computer software programmes are recognized as an expense when incurred and cost related to the upgrades of existing computer software by developers is capitalised when incurred and the amount is above the threshold for capitalization.

Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their cost (including capitalised leased assets) over the estimated useful lives, as follows: Computer Equipment 20% - 33, 33% per annumLeasehold Improvements 33, 33% per annumOffice Furniture and Fittings 11% - 16, 67% per annum

An asset’s carrying amount is written down immediately to its recoverable amount if the carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount. These are included in profit or loss.

d) Impairment

At each balance sheet date, the GLB reviews the carrying amounts of its assets to determine whether there is any indication that the assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount for an individual asset, the recoverable amount is determined for the cash-generating unit to which the asset belongs.If the recoverable amount of an asset (cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment losses are immediately taken to the income statement and reversals are recouped the income statement, unless the relevant asset is carried at a revalued amount under another standard, in which case the impairment loss is treated as a revaluation decrease under the standard.

e) Leases

(1) Operating Lease

Leases where the lessor retains and rewards of ownership of the underlying assets are classified as operating leases. Rentals payable under operating leases are charged to the income statement on a straight line basis over the period of the lease.

(2) Finance Lease

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised as assets at their fair value at the date of acquisition. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Finance costs, which represent the difference between the total leasing commitments and the fair value of the assets acquired, are charged to the statement of financial performance over the term of the relevant lease so as to produce a constant periodic rate of interest on the remaining balance of the obligations for each accounting period.

f) Financial Instruments

Financial assets and financial liabilities are recognised on the GLB balance sheet when the GLB becomes a party to the contractual provisions of the instrument. Financial instruments are initially measured at cost. Subsequent to initial recognition these instruments are measured as set out below.

(1) Trade and Other Receivables

Receivables are initially recognised at their fair values and reduced by appropriate allowances for estimated irrecoverable amounts, but are carried at amortised cost using the effective interest rate method at year end.

(2) Cash and Cash Equivalents

Cash and cash equivalents are carried on the statement of financial position at cost. For the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand and bank current accounts.

(3) Trade and Other Payables

Trade and other payables are stated at their amortised cost.

g) Financial Risks and Guarantees

The GLB exposure to credit risk with respect to trade and other receivables is low as revenue is recognised when license fees are paid over to revenue agent. The Liquidity risk is significant as the GLB has been experiencing difficulty in meeting obligations associated with financial instruments. Guarantees are treated as a contingent liability.

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h) Provisions

Provisions are recognised when the GLB has a present legal or constructive obligation is as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Employees’ entitlement to annual leave and bonuses represents a present obligation to pay as a result of employee’s service. Provisions are measured at current salary rates and discounted to present value where the effect of the time value of money is material.

The GLB has exposure to some onerous contracts where the futuristic commitment on the party of the entity does not justify the benefit derived. The expenditure on such contracts is provided annually and treated as wasteful.

i) Related Parties

GLB operates in an economic environment currently dominated by entities directly or indirectly owned by the South African government. As a result of the constitutional independence of all three spheres of government in South Africa, only parties within the national sphere of government will be related parties. Related parties also include key management personnel, which are persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly.

j) Critical Accounting Estimates and Judgments

The GLB makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are as follows:

(1) Estimates of Residual Values and Useful Lives of Equipment

The GLB reassesses annually the residual values and remaining useful lives of fixed assets. The residual values of these assets have been estimated as the amount that the GLB would currently obtain from disposal of each asset, in its current location, if the asset were already of the age and in the condition expected at the end of its useful life. The useful life is estimated as the period over which an asset is expected to be available for use by the GLB. Technological innovation and maintenance programmes impact the useful lives and residual values of the assets.

(2) Contingent Liabilities

Management applies its judgment to the patterns and advice it receives from its attorneys, advocates and other advisors in assessing if an obligation is probable, more likely than not, or remote. This judgment application is used to determine whether the obligation is recognised as a liability or disclosed as a contingent liability.

k) Irregular, Fruitless and Wasteful Expenditure

Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including: The PFMA, or Any national/provincial legislation providing for procurement

procedures in that national/provincial government.

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care been exercised.

All irregular, fruitless and wasteful expenditure is charged against income in the period in which it is incurred.

l) Employee Benefits

Short term employee benefits

Short term employee benefits are recognised as an expense when an employee has rendered service to the GLB that entitles the employee to the short term benefits. The amount of the expense is the undiscounted amount of the short term employee benefits that are expected to be paid in exchange for that service.

ii) Retirement Benefits

The GLB provides retirement benefits for certain of its employees through a defined benefit plan for government employees. These benefits are funded by both employer and employee contributions. No provision is made for retirement benefits in the Annual Financial Statements of the GLB. Any potential liabilities are disclosed in the Annual Financial Statements of the National Revenue Fund and not in the Annual Financial Statements of the GLB.

m) Comparative Figures

Comparative figures have been adjusted to conform to changes in presentation in the current year where necessary.

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SECT

ION 06GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | VOTE 3

GAUTENG LIQUOR BOARD ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013


NOTES TO THE ANNUAL FINANCIAL STATEMENTSfoR the YeAR eNded 31 mARCh 2013

4. Property, Plant and Equipment

Computer Capitalised Leasehold Furniture Total Equipment Leased Improvements Equipment R’000 R’000 R’000 R’000 R’000

31 March 2013Carrying amount at the beginning of year 1 537 – – 1 328 2 865Gross carrying amount 3 855 836 4 332 2 269 11 292Accumulated Depreciation (2 318) (836) (4 332) (941) (8 426)Additions/Revaluations – – – – –Depreciation for the year (767) – – (488) (1 255)Disposal – cost (343) (836) (4 332) (383) (5 894)Disposal – Accumulated depreciation 278 836 4 332 245 5 689Carrying amount at the end of the year 705 – – 703 1 408Gross carrying amount 3 512 – – 1 886 5 399Accumulated Depreciation (2 807) – – (1 183) (3 991)

31 March 2012Carrying amount at the beginning of year 868 211 971 1 294 3 344Gross carrying amount 3 827 836 4,332 1 903 10 897 Accumulated Depreciation (2 957) (625) (3 361) (609) (7 553)Additions/Revaluations 28 366 395Depreciation for the year( refer note 21) 639 (211) (971) (332) (1 162)Disposals Carrying amount at the end of the year 1 537 – – 1 328 2 865Gross carrying amount 3 855 836 4 332 2269 11 292Accumulated Depreciation (2 318) (836) (4 332) (941) (8 426) 2013 2012 R’000 R’000

5. Trade and Other Receivables

Staff debtors 2 134Accrued penalties on overdue license fees 539 –Deferred lease 88 178

Gross total trade and other receivables 629 312

Onerous contracts – –

6. Cash and Cash Equivalents

Cash and cash equivalents 9 369 515

Total 9 369 515

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2013 2012 R’000 R’000

7. Trade and Other Payables

Trade payables Accruals 1 794 4 735Unaccounted deposits 373 –Employees related 2 526 2 070Inter departmental balances 3 415 3 728

Total trade and other payables 8 108 10 533

8. Provisions

Performance Bonus 363 450Other

Closing carrying amount 363 450

Movement in balance:

Balance 1 April 2012 450 519Unused amounts reversed (87) (69)

Balance 31 March 2013 363 450

9. Other Income

Interest Received 29 17Penalties on overdue license fees 539 –Miscellaneous Income 22 44

Total other income 590 61

10. Surplus/Deficit for the Year

The surplus/(deficit) for the year is stated after taking the following into account

Administrative fees 292 3 146 Advertising 258 154 Assets less than capitalisation threshold – –Audit cost 438 303 Bad debts written off 122 (472) Bursaries (employees) – 18Communication 86 406 Computer services 210 – Consultants, contractors and agency/outsourced services 13 781 14 385 Courier and delivery costs – –Entertainment 589 142 Inventory consumed 518 – Maintenance, repairs and running costs – 332 Operating leases 5159 254 Owned and leasehold property expenditure 3 227 1 047 Travel and subsistence 226 318 Training and staff development 987 –Venues and facilities 1 251 256 Other operating expenditure 1 204 333

28 348 20 622

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11. Senior Manager’s Remuneration

Basic Medical Other Service Total salary and benefits bonus pension R’000 R’000 R’000 R’000 R’000

31 March 2013MMMothlake 180 167 36 383PN Tsokolibane 436 291 727

616 – 458 36 1 110

12. Operating Lease Commitments

Up to 1 1 to 5 Total Year Years R’000 R’000 R’000

31 March 2013Buildings 2 070 1 775 3 845

31 March 2012 Buildings 1 631 1 524 3 137

13. Reconciliation of Surplus (Deficit) to Cash Generated by Operations

2013 2012 R’000 R’000

Surplus/(deficit) for the year 7 011 (4 256)

Adjustment for 1 460 874Depreciation and amortisation 1 255 874Loss on disposal of assets 205 – Working capital changes 922 (4 080)Increase/(Decrease) in trade and other receivables (317) (3)Increase/(Decrease) in trade and other payables 787 (4 077)Increase/(Decrease) in provisions (87) –

Cash generated from operating activities 8 854 (7 462)

14. Taxation

The Gauteng Liquor Board is exempt from Income Tax in terms of section 10 (1) of the Income Tax Act

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15. Related Parties

Department of Economic Development

The Gauteng Liquor Board is currently operating as a trading GLB under the administration of the Department of Economic Development. The GLB had been experiencing cash flow difficulties and therefore the department has settled some of the liabilities on behalf of the GLB. The outstanding balance is included in trade and other payables. The debt is not secured and no guarantees were given. With improved financial performance, the entity intends paying off the balance due.

2013 2012 R’000 R’000

Transactions during the year (3 415) (3 727)

Balance outstanding at the end of the year (3415) (3 727)

16. Financial Guarantee Contracts

The following guarantees were issued by the Department of Economic Development for employees of the Gauteng Liquor Board.

Guarantee Guarantee Amount Amount 2013 2012 R’000 R’000

Financial institution FNB Home Loans 62 43Permanent Bank 43 16ABSA 16 43Standard Bank 15 –

17. Contingent Liabilities

There were no civil claims that may constitute contingent liabilities for the Agency during the year under review.

Litigations reported relate to disputes regarding the liquor licensing processes, and this nature of litigations do not constitute contingent liabilities to be disclosed, as the only costs incurred are only inter departmental legal costs. 18. Revenue

The main income of the GLB consists of license fees. The license fees (inclusive of renewals) are valid for one year. The GLB received R33 million in grants from the department of Economic Development. The GLB collected R27 million in respect of license fees.

The revenue (license fees) for the GLB was is from the following streams;

Renewals 22 390 21 194New applications 1 390 722Conversions and other 7 –Activations 866 561Occasional licenses 1 045 1 189Other 945 703

Gross revenue 26 643 24 369

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2013 2012 R’000 R’000

19. Irregular, Fruitless and Wasteful Expenditure

Irregular ExpenditureOpening balance 9 202 1400Add: Irregular expenditure – Current year 3 493 7 802Less: Amounts condoned (3 493) –

Total Irregular Expenditure 9 202 9 202

Analysis of irregular expenditure awaiting condonation Current year – 7 802Prior year 9 202 1 400

Total 9 202 9 202

Details of Irregular expenditure for current year

2013 Incidents Disciplinary steps taken Financial Loss Amount R’000Ex-post factoDeviations Written Warnings issued to responsible officials. Nil 3 493 3 493 2013 R’000

Opening balance Add: Irregular expenditure – Current year 3 493Less: Amounts condoned

Total Irregular Expenditure 3 493 2013 2012 R’000 R’000

Fruitless and Wasteful Expenditure Opening balance 8 140 8 140 Add: Fruitless & Wasteful Expenditure – Current Year 1 –Less: Amounts Condoned – –Fruitless and Wasteful expenditure awaiting condonation 8 141 8140

Analysis of Expenditure awaiting condonation per age classification Current Year 1 –Prior Year 8 140 8 140

Total 8 141 8 140

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20. Financial Instruments

Financial Risk Management

The Gauteng Liquor Board (Board) has exposure to the following risks from its use of financial instruments:

19.1 Credit Risk

19.2 Liquidity Risk

This note presents information about the Board’s exposure to each of the above risks, the Board’s objectives, policies and processes for measuring and managing risk, and the Board’s management of finance.

The Accounting Officer has overall responsibility for the establishment and oversight of the Board’s risk management framework. 19.1 Credit risk

Credit risk is the risk of financial loss to the Board if a customer/license holder, staff or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Board’s receivables. At year end, the Board did not consider there to be any significant concentration of credit risk which has not been adequately provided for.

Exposure to Credit Risk The maximum exposure to credit risk at the reporting date was:

Note 2013 2012 R’000 R’000

Trade receivables 5 2 134

19.2 Liquidity Risk

Liquidity risk is the risk that the Entity will not be able to meet its financial obligations as they fall due. The Entity’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses. The DED has in prior years, assisted the GLB with regards to payments / obligations to be made.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

31 March 2013 Carrying Contractual Less than 1-2 years >5 years amount cash flows 1 year Trade and other payables 8471 8471 8471 – –

8471 8471 8471 – –

31 March 2012 Carrying Contractual Less than 1-2 years >5 years amount cash flows 1 year

RestatedTrade and other payables 10 983 10 983 10 983 – –

10 983 10 983 10 983 – –

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21.3.1 Fair Values

The Accounting Officer is of the opinion that the carrying amount of financial instruments approximates fair value.

21.3.2 Capital Management

The Entity maintains a capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The entity receives transfers from the DED as part of the programme – Governance. The GLB also generates revenue from collection of licence fees. Expenses are also carried by DED in instances where it is necessary.

21. Change in Accounting Estimates

In the previous year the useful lives of fully depreciated property, plant and equipment were assessed and it was concluded that the carrying values were fairly close to their market values. In the current year the useful lives of these fully depreciated assets were assessed and some assets were found to be still in usable condition and some not in usable condition. The useful lives of some items of furniture and fittings, and computer equipment were increased by 3 and 4 years respectively. A prospective change in estimates was applied and resulted in a decrease depreciation of R1 112 thousands in 2012 figures. This change in estimates has been accounted for as a correction of a prior year error in as outlined in note 22.

2013 2012 R’000 R’000

FurnitureCurrent year depreciation 488 443Effect of a change on estimates – (111) 488 332Computer equipmentCurrent year depreciation 767 362Effect of a change on estimates – (1 001) 767 (639)

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22. Correction of Prior Year Errors

Operating lease straight lining was not accounted for as a deferred lease in the statement of financial position. This was corrected in the current year.

Expenditures to the value of R3.4million was incorrectly accrued in 2010/2011. The error was corrected in the current year.

During the 2013 financial period the entity’s management realised that assets with a R1.00 were not correctly accounted for in the statement of financial position due to a calculation error. The earliest period the effect can be determined is the closing balance for the 2012 financial period. The prior period was adjusted retrospectively.

The effects of the restatements are as follows:

2013 2012 R’000 R’000

Statement of financial positionIncrease accumulated surplus 1112Decrease in accumulated depreciation furniture (111)Decrease in accumulated depreciation computer (1 001)Increase in deferred lease – 178 Increase in accumulated surplus – (178)Decrease in trade and other payables 3 433 –Increase in accumulated surplus (3 433) –

Statement of financial performanceDecrease in depreciation 873 –Increase in profit on disposal of assets 213 –

23. Comparative Figures

Certain comparative figures have been reclassified.

The effect of the reclassification is as follows:

Statement of financial positionTrade and other payables – 1 620Provision – (1 620)

24. Contingent Assets

During 2010 licenses holders were requested to convert their old licenses in terms of the Liquor Act to new licenses. Certain license holders refused to convert their licenses and opted to take the liquor board to court. The court resolved in their favor and issued an order to the effect that it exempted them from paying annual license renewal fees since then to date. The liquor Board has taken steps to get the court order lifted and allows these license holders to begin paying their annual license renewal fees. It is not known at this stage when will this order going to be lifted and the matter resolved and when will the licenses holders begin to pay their annual license renewal fees. The estimated annual license renewal fees are R1 680 000.

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SECT

ION 07

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | HUMAN

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cond

ucte

d

Imbi

zos

cond

ucte

d 15

Imbi

zos

cond

ucte

d

TAB

LE 1

.1 -

MA

IN S

ErV

ICE

FOr

SEr

VIC

E D

ELIV

ErY

IMPr

OV

EMEN

T A

ND

STA

ND

Ar

DS

TAB

LE 1

.2 -

CO

NSU

LTA

TIO

N A

rr

AN

GEM

ENTS

FO

r C

UST

OM

ErS

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07Ty

pe o

f Arr

ange

men

tA

ctua

l Cus

tom

erPo

tent

ial C

usto

mer

Act

ual A

chie

vem

ents

Cons

umer

Pro

tect

ion

Serv

ice

All c

onsu

mer

in G

aute

ng

GPG

Pub

lic

Wor

ksho

ps c

ondu

cted

20

5 W

orks

hops

con

duct

ed

Road

sho

ws

cond

ucte

d29

Roa

dsho

ws

cond

ucte

d

Imbi

zos

cond

ucte

d 9

Imbi

zos

cond

ucte

d

Exhi

bitio

ns11

exh

ibiti

ons

held

Broa

d Ba

sed

Blac

k Ec

onom

ic Em

pow

erm

ent

Publ

ic se

ctor

: G

PG P

ublic

Cons

ulta

tions

GPG

Dep

artm

ents

Agen

cies

and

mun

icipa

litie

s

Priva

te s

ecto

r and

civ

il so

ciety

(GPG

sup

plie

rs c

urre

ntly

regi

ster

ed o

n th

e da

taba

se)

TAB

LE 1

.2 -

CO

NSU

LTA

TIO

N A

rr

AN

GEM

ENTS

FO

r C

UST

OM

ErS


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

1.3

- C

OM

PLA

INT

MEC

HA

NIS

M

Com

plai

nt M

echa

nism

Act

ual A

chie

vem

ents

Liqu

or L

icen

sing

24

Com

plai

ns re

ceiv

ed a

nd re

solv

ed

Cons

umer

Pro

tect

ion

Serv

ice

417

Com

plai

nts

rece

ived

and

362

reso

lved

14 O

pen

Calls

25 In

Pro

cess

es

16 R

ejec

ted


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

2.1

- P

ErSO

NN

EL C

OST

S B

Y P

rO

Gr

AM

ME

Prog

ram

me

Tota

l Vot

ed

Expe

ndit

ure

(R'0

00)

Com

pens

atio

n of

Em

ploy

ees

Expe

ndit

ure

(R'0

00)

Trai

ning

Exp

endi

-tu

re (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

of T

otal

Ex

pend

itur

e

Aver

age

Com

pens

atio

n of

Em

ploy

ees

Cost

pe

r Em

ploy

ee

(R'0

00)

Empl

oym

ent

Grf:

adm

inist

ratio

n 13

6 42

455

157

00

40,4

185

299

Grf:

bus

ines

s re

gula

tion&

gove

rn

61 3

0028

973

00

47,3

9729

9

Grf:

eco

nom

ic pl

anni

ng

23 1

048

166

00

35,3

2729

9

Grf:

inte

grat

ed e

con

deve

lp s

erv

196

547

21 8

010

011

,173

299

Grf:

trad

e an

d se

ctor

dev

elop

men

t 44

3 68

10

00

00

299

Z=To

tal a

s on

Fin

ancia

l Sys

tem

s (B

AS)

861

057

114

098

00

13,3

382

299


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

2.2

- P

ErSO

NN

EL C

OST

S B

Y S

ALA

rY B

AN

D

Sala

ry B

ands

Com

pens

atio

n of

Em

ploy

-ee

s Co

st (R

'000

)

Perc

enta

ge o

f Tot

al

Pers

onne

l Cos

t fo

r D

epar

tmen

t

Aver

age

Com

pens

atio

n Co

st p

er E

mpl

oyee

(R)

Tota

l Per

sonn

el C

ost

for

Dep

artm

ent

incl

udin

g G

oods

and

Tra

nsfe

rs

(R'0

00)

Num

ber o

f Em

ploy

ees

Skill

ed (L

evel

s 3-

5)

5 15

24,

416

6 19

411

8 13

831

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

16

387

13,9

256

047

118

138

64

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

) 40

404

34,2

448

933

118

138

90

Seni

or m

anag

emen

t (Le

vels

13-1

6)

23 8

9020

,299

5 41

711

8 13

824

Cont

ract

(Lev

els

1-2)

95

20,

836

615

118

138

26

Cont

ract

(Lev

els

3-5)

2

714

2,3

129

238

118

138

21

Cont

ract

(Lev

els

6-8)

3

505

335

0 50

011

8 13

810

Cont

ract

(Lev

els

9-12

) 7

788

6,6

556

286

118

138

14

Cont

ract

(Lev

els

13-1

6)

11 2

309,

559

1 05

311

8 13

819

Perio

dica

l Rem

uner

atio

n 2

442

2,1

56 7

9111

8 13

843

TOTA

L11

4464

96,9

3346

9011

8138

342


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07Pr

ogra

mm

eSa

lari

es

(R'0

00)

Sala

ries

as

%

of P

erso

nnel

Co

st

Ove

rtim

e (R

'000

)

Ove

rtim

e as

%

of P

erso

nnel

Co

stH

OA

(R'0

00)

HO

A a

s %

of

Pers

onne

l Cos

tM

edic

al A

ss.

(R'0

00)

Med

ical

Ass

. as

% o

f Per

sonn

el

Cost

Tota

l Per

sonn

el

Cost

per

Pr

ogra

mm

e (R

'000

)

Econ

omic

plan

ning

60

100

00

00

00

60

Grf:

adm

inist

ratio

n 11

1588

,70

00

022

1,8

1257

Grf:

inte

grat

ed e

con

deve

lp s

erv

4187

,20

02

4,3

00

47

Liqu

or a

ffairs

*cur

(4)*

*old

0

00

00

00

017

Pr1:

adm

inist

ratio

n (7

/8)

3921

875

,70

082

81,

615

963,

151

816

Pr2:

inte

rg e

co d

ev s

erv(

ieds

)7/8

25

289

78,7

629

234

21,

170

02,

232

139

Pr3:

eco

n an

d de

velo

p pl

an(0

6/07

) 21

576

00

00

00

283

Pr3:

trad

e&in

dust

ry d

evel

op 7

/8

3510

00

00

00

035

Pr4:

bus

ines

s re

gula

&go

v(br

g)7/

8 23

819

770

045

01,

594

83,

130

945

Pr6:

spe

cial p

roje

cts(

06/0

7)

1081

70,2

00

00

30,

215

40

TOTA

L90

873

76,9

629

0,5

1622

1,4

3269

2,8

1181

39

TAB

LE 2

.3 -

SA

LAr

IES,

OV

ErTI

ME,

HO

ME

OW

NEr

S A

LLO

WA

NC

E A

ND

MED

ICA

L A

ID B

Y P

rO

Gr

AM

ME


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

2.4

- S

ALA

rIE

S, O

VEr

TIM

E, H

OM

E O

WN

ErS

ALL

OW

AN

CE

AN

D M

EDIC

AL

AID

BY

SA

LArY

BA

ND

Sala

ry b

ands

Sala

ries

(R

'000

)

Sala

ries

as

%

of P

erso

nnel

Co

st

Ove

rtim

e (R

'000

)

Ove

rtim

e as

%

of P

erso

nnel

Co

stH

OA

(R'0

00)

HO

A a

s %

of

Pers

onne

l Cos

tM

edic

al A

ss.

(R'0

00)

Med

ical

Ass

. as

% o

f Per

sonn

el

Cost

Tota

l Per

sonn

el

Cost

per

Sal

ary

Band

(R'0

00)

Skill

ed (L

evel

s 3-

5)

3412

66,2

00

300

5,8

492

9,5

5155

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

11

402

69,4

216

1,3

583

3,5

1204

7,3

1642

6

High

ly sk

illed

supe

rvisi

on (L

evel

s 9-1

2)

3128

176

,341

31

467

1,1

1230

340

982

Seni

or m

anag

emen

t (Le

vels

13-1

6)

2012

083

,20

020

80,

930

11,

224

175

Cont

ract

(Lev

els

1-2)

95

210

00

00

00

095

2

Cont

ract

(Lev

els

3-5)

26

9599

00

00

00

2721

Cont

ract

(Lev

els

6-8)

35

0399

,80

00

00

035

10

Cont

ract

(Lev

els

9-12

) 74

0793

,60

00

023

0,3

7910

Cont

ract

(Lev

els

13-1

6)

1009

973

,30

063

0,5

170,

113

785

Perio

dica

l Rem

uner

atio

n 0

00

00

00

025

23

TOTA

L90

871

76,9

629

0,5

1621

1,4

3267

2,8

1181

39


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07Pr

ogra

mm

eN

umbe

r of

Pos

tsN

umbe

r of

Pos

ts F

illed

Vaca

ncy

Rate

Num

ber

of P

osts

Fill

ed

Add

itio

nal t

o th

e Es

tabl

ishm

ent

Blue

iq m

ngm

cur

, Per

man

ent

130

100

0

Econ

omic

plan

ning

, Per

man

ent

11

01

Grf:

adm

inist

ratio

n, P

erm

anen

t 8

537

,55

Grf:

inte

grat

ed e

con

deve

lp s

erv,

Perm

anen

t 2

150

1

Pr1:

adm

inist

ratio

n (7

/8),

Perm

anen

t 17

214

018

,635

Pr2:

inte

rg e

co d

ev s

erv(

ieds

)7/8

, Per

man

ent

9669

28,1

19

Pr3:

eco

n an

d de

velo

p pl

an(0

6/07

), Pe

rman

ent

11

00

Pr3:

trad

e an

d in

dust

ry d

evel

op 7

/8, P

erm

anen

t 5

010

00

Pr4:

bus

ines

s re

gula

r and

gov

(brg

)7/8

, Per

man

ent

9281

1215

Pr6:

spe

cial p

roje

cts(

06/0

7), P

erm

anen

t 5

180

0

Trad

e an

d se

ctor

dev

elop

men

t, Pe

rman

ent

20

100

0

TOTA

L39

729

924

,776

TAB

LE 3

.1 -

EM

PLO

YM

ENT

AN

D V

AC

AN

CIE

S B

Y P

rO

Gr

AM

ME

AT

END

OF

PEr

IOD


Sala

ry B

and

Num

ber

of P

osts

Num

ber

of P

osts

Fill

edVa

canc

y Ra

teN

umbe

r of

Pos

ts F

illed

A

ddit

iona

l to

the

Esta

blis

hmen

t

Low

er s

kille

d (L

evel

s 1-

2), P

erm

anen

t 8

187

,51

Skill

ed (L

evel

s 3-

5), P

erm

anen

t 43

3127

,95

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

, Per

man

ent

8664

25,6

0

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

), Pe

rman

ent

128

9029

,76

Seni

or m

anag

emen

t (Le

vels

13-1

6), P

erm

anen

t 42

2345

,25

Cont

ract

(Lev

els

1-2)

, Per

man

ent

2626

026

Cont

ract

(Lev

els

3-5)

, Per

man

ent

2121

013

Cont

ract

(Lev

els

6-8)

, Per

man

ent

1010

08

Cont

ract

(Lev

els

9-12

), Pe

rman

ent

1414

06

Cont

ract

(Lev

els

13-1

6), P

erm

anen

t 19

190

6

TOTA

L39

729

924

,776

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

3.2

- E

MPL

OY

MEN

T A

ND

VA

CA

NC

IES

BY

SA

LArY

BA

ND

AT

END

OF

PEr

IOD


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07Cr

itic

al O

ccup

atio

nsN

umbe

r of

Pos

tsN

umbe

r of

Pos

ts F

illed

Vaca

ncy

Rate

Num

ber

of P

osts

Fill

ed

Add

itio

nal t

o th

e Es

tabl

ishm

ent

Adm

inist

rativ

e re

late

d, P

erm

anen

t 47

3721

,37

Arch

itect

s to

wn

and

traffi

c pl

anne

rs, P

erm

anen

t 4

175

0

Auxi

liary

and

rela

ted

wor

kers

, Per

man

ent

10

100

0

Bus

and

heav

y ve

hicle

driv

ers,

Perm

anen

t 1

10

0

Civi

l eng

inee

ring

tech

nicia

ns, P

erm

anen

t 5

180

0

Clie

nt in

form

cle

rks(

switc

h re

ceip

t inf

orm

cle

rks)

, Pe

rman

ent

21

500

Com

mun

icatio

n an

d in

form

atio

n re

late

d, P

erm

anen

t 8

625

2

Engi

neer

ing

scie

nces

rela

ted,

Per

man

ent

2117

191

Engi

neer

s an

d re

late

d pr

ofes

siona

ls, P

erm

anen

t 1

10

0

Fina

nce

and

econ

omics

rela

ted,

Per

man

ent

1413

7,1

0

Fina

ncia

l and

rela

ted

prof

essio

nals,

Per

man

ent

43

250

Fina

ncia

l cle

rks

and

cred

it c

ontr

olle

rs, P

erm

anen

t 43

3811

,626

Food

ser

vice

s ai

ds a

nd w

aite

rs, P

erm

anen

t 9

277

,80

Hea

d of

dep

artm

ent/

chie

f exe

cuti

ve o

ffice

r, Pe

rman

ent

42

501

Hum

an r

esou

rces

& o

rgan

isat

ion

deve

lopm

ent

&

rela

te p

rof,

Perm

anen

t 11

918

,22

Hum

an re

sour

ces

clerk

s, Pe

rman

ent

65

16,7

4

Hum

an re

sour

ces

rela

ted,

Per

man

ent

33

00

Info

rmat

ion

tech

nolo

gy re

late

d, P

erm

anen

t 4

40

1

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er c

omm

un,

Perm

anen

t 5

260

0

Lega

l rel

ated

, Per

man

ent

11

00

Libr

ary

mai

l and

rela

ted

clerk

s, Pe

rman

ent

2018

106

Logi

stica

l sup

port

pers

onne

l, Pe

rman

ent

44

02

TAB

LE 3

.3 -

EM

PLO

YM

ENT

AN

D V

AC

AN

CIE

S B

Y C

rIT

ICA

L O

CC

UPA

TIO

N A

T EN

D O

F PE

rIO

D


Crit

ical

Occ

upat

ions

Num

ber

of P

osts

Num

ber

of P

osts

Fill

edVa

canc

y Ra

teN

umbe

r of

Pos

ts F

illed

A

ddit

iona

l to

the

Esta

blis

hmen

t

Mat

eria

l-rec

ordi

ng a

nd tr

ansp

ort c

lerk

s, Pe

rman

ent

44

00

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s, Pe

rman

ent

55

00

Oth

er a

dmin

istra

tion

& re

late

d cle

rks

and

orga

nise

rs,

Perm

anen

t 43

3714

6

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d of

ficer

s, Pe

rman

ent

1210

16,7

0

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.,

Perm

anen

t 9

811

,14

Oth

er o

ccup

atio

ns, P

erm

anen

t 7

70

0

Regu

lato

ry in

spec

tors

, Per

man

ent

11

00

Risk

man

agem

ent a

nd s

ecur

ity s

ervi

ces,

Perm

anen

t 4

40

4

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cle

rks,

Perm

anen

t 29

2320

,70

Seni

or m

anag

ers,

Perm

anen

t 63

2954

10

Stat

istici

ans

and

rela

ted

prof

essio

nals,

Per

man

ent

11

00

Trad

e/in

dust

ry a

dvis

ers

& o

ther

rel

ated

pr

ofes

sion

, Per

man

ent

11

00

TOTA

L39

729

924

,776

TAB

LE 3

.3 -

EM

PLO

YM

ENT

AN

D V

AC

AN

CIE

S B

Y C

rIT

ICA

L O

CC

UPA

TIO

N A

T EN

D O

F PE

rIO

D

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

4.1

- J

OB

EV

ALU

ATI

ON

Sala

ry B

and

Num

ber

of P

osts

Num

ber

of Jo

bs

Eval

uate

d%

of P

osts

Ev

alua

ted

Num

ber

of P

osts

U

pgra

ded

% o

f Upg

rade

d Po

sts

Eval

uate

dN

umbe

r of

Pos

ts

Dow

ngra

ded

% o

f Dow

ngra

ded

Post

s Ev

alua

ted

Low

er s

kille

d (L

evel

s 1-

2)8

00

00

00

Cont

ract

(Lev

els

1-2)

26

00

00

00

Cont

ract

(Lev

els

3-5)

21

00

00

00

Cont

ract

(Lev

els

6-8)

10

00

00

00

Cont

ract

(Lev

els

9-12

) 14

00

00

00

Cont

ract

(Ban

d A)

12

00

00

00

Cont

ract

(Ban

d B)

6

116

,70

00

0

Cont

ract

(Ban

d D)

1

00

00

00

Skill

ed (L

evel

s 3-

5)

430

00

00

0

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

86

00

00

00

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

) 12

80

00

00

0

Seni

or M

anag

emen

t Ser

vice

Ban

d A

270

00

00

0

Seni

or M

anag

emen

t Ser

vice

Ban

d B

100

00

00

0

Seni

or M

anag

emen

t Ser

vice

Ban

d C

30

00

00

0

Seni

or M

anag

emen

t Ser

vice

Ban

d D

20

00

00

0

TOTA

L39

71

0,3

00

00


TAB

LE 4

.2 -

Pr

OFI

LE O

F EM

PLO

YEE

S W

HO

SE P

OSI

TIO

NS

WEr

E U

PGr

AD

ED D

UE

TO T

HEI

r

POST

S B

EIN

G U

PGr

AD

ED

TAB

LE 4

.3 -

EM

PLO

YEE

S W

HO

SE S

ALA

rY L

EVEL

EX

CEE

D T

HE

Gr

AD

E D

ETEr

MIN

ED B

Y J

OB

EV

ALU

ATI

ON

[I

.T.O

PSr

1.V

.C.3

]

Not

App

licab

le

TAB

LE 4

.4 -

Pr

OFI

LE O

F EM

PLO

YEE

S W

HO

SE S

ALA

rY L

EVEL

EX

CEE

DED

TH

E G

rA

DE

DET

ErM

INED

BY

JO

B

EVA

LUA

TIO

N [

I.T.O

. PSr

1.V

.C.3

]

Not

App

licab

le

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07

Bene

ficia

ries

Afr

ican

Asi

anCo

lour

edW

hite

Tota

l

Fem

ale

00

00

0

Mal

e 0

00

00

Tota

l 0

00

00

Empl

oyee

s w

ith a

Disa

bilit

y 0

00

00


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

5.1

- A

NN

UA

L TU

rN

OV

Er r

ATE

S B

Y S

ALA

rY B

AN

D

Sala

ry B

and

Empl

oym

ent

at B

egin

ning

of

Peri

od (A

pril

2012

)A

ppoi

ntm

ents

Term

inat

ions

Turn

over

Rat

e

Skill

ed (L

evel

s 3-

5), P

erm

anen

t 32

01

3,1

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

, Per

man

ent

701

34,

3

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

), Pe

rman

ent

853

44,

7

Seni

or M

anag

emen

t Ser

vice

Ban

d A,

Per

man

ent

220

14,

5

Seni

or M

anag

emen

t Ser

vice

Ban

d B,

Per

man

ent

60

116

,7

Seni

or M

anag

emen

t Ser

vice

Ban

d C,

Per

man

ent

10

00

Seni

or M

anag

emen

t Ser

vice

Ban

d D,

Per

man

ent

11

00

Cont

ract

(Lev

els

1-2)

, Per

man

ent

029

30

Cont

ract

(Lev

els

3-5)

, Per

man

ent

234

417

,4

Cont

ract

(Lev

els

6-8)

, Per

man

ent

163

212

,5

Cont

ract

(Lev

els

9-12

), Pe

rman

ent

1316

215

,4

Cont

ract

(Ban

d A)

, Per

man

ent

47

125

Cont

ract

(Ban

d B)

, Per

man

ent

02

10

Cont

ract

(Ban

d C)

, Per

man

ent

20

210

0

Cont

ract

(Ban

d D)

, Per

man

ent

10

00

TOTA

L27

666

259,

1


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

5.2

- A

NN

UA

L TU

rN

OV

Er r

ATE

S B

Y C

rIT

ICA

L O

CC

UPA

TIO

N

Occ

upat

ion

Empl

oym

ent

at B

egin

ning

of

Peri

od (A

pril

2012

)A

ppoi

ntm

ents

Term

inat

ions

Turn

over

Rat

e

Adm

inist

rativ

e re

late

d, P

erm

anen

t 34

62

5,9

Arch

itect

s to

wn

and

traffi

c pl

anne

rs, P

erm

anen

t 2

00

0

Bus

and

heav

y ve

hicle

driv

ers,

Perm

anen

t 3

00

0

Civi

l eng

inee

ring

tech

nicia

ns, P

erm

anen

t 4

00

0

Clie

nt in

form

cle

rks(

switc

h re

ceip

t inf

orm

cle

rks)

, Pe

rman

ent

10

00

Com

mun

icatio

n an

d in

form

atio

n re

late

d, P

erm

anen

t 8

01

12,5

Engi

neer

ing

scie

nces

rela

ted,

Per

man

ent

141

17,

1

Engi

neer

s an

d re

late

d pr

ofes

siona

ls, P

erm

anen

t 1

00

0

Fina

nce

and

econ

omics

rela

ted,

Per

man

ent

131

00

Fina

ncia

l and

rela

ted

prof

essio

nals,

Per

man

ent

15

00

Fina

ncia

l cle

rks

and

cred

it co

ntro

llers

, Per

man

ent

2115

523

,8

Food

ser

vice

s ai

ds a

nd w

aite

rs, P

erm

anen

t 2

00

0

Head

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er, P

erm

anen

t 1

00

0

Hum

an re

sour

ces

& or

gani

satio

n de

velo

pmen

t & re

late

pr

of, P

erm

anen

t 11

01

9,1

Hum

an re

sour

ces

clerk

s, Pe

rman

ent

12

110

0

Hum

an r

esou

rces

rel

ated

, Per

man

ent

30

00

Info

rmat

ion

tech

nolo

gy re

late

d, P

erm

anen

t 5

01

20

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er c

omm

un,

Perm

anen

t 4

00

0

Lega

l rel

ated

, Per

man

ent

10

00

Libr

ary

mai

l and

rela

ted

clerk

s, Pe

rman

ent

116

19,

1

Ligh

t veh

icle

driv

ers,

Perm

anen

t 1

00

0

Logi

stica

l sup

port

pers

onne

l, Pe

rman

ent

22

00

Mat

eria

l-rec

ordi

ng a

nd tr

ansp

ort c

lerk

s, Pe

rman

ent

40

00

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s, Pe

rman

ent

60

00


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

5.2

- A

NN

UA

L TU

rN

OV

Er r

ATE

S B

Y C

rIT

ICA

L O

CC

UPA

TIO

N (

CO

NTI

NU

ED)

Occ

upat

ion

Empl

oym

ent

at B

egin

ning

of

Peri

od (A

pril

2012

)A

ppoi

ntm

ents

Term

inat

ions

Turn

over

Rat

e

Oth

er a

dmin

istra

tion

& re

late

d cle

rks

and

orga

nise

rs,

Perm

anen

t 52

24

7,7

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d of

ficer

s, Pe

rman

ent

101

110

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.,

Perm

anen

t 4

40

0

Oth

er o

ccup

atio

ns, P

erm

anen

t 6

40

0

Regu

lato

ry in

spec

tors

, Per

man

ent

10

00

Risk

man

agem

ent a

nd s

ecur

ity s

ervi

ces,

Perm

anen

t 0

40

0

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cle

rks,

Perm

anen

t 23

31

4,3

Seni

or m

anag

ers,

Perm

anen

t 23

106

26,1

Stat

istici

ans

and

rela

ted

prof

essio

nals,

Per

man

ent

10

00

Trad

e/in

dust

ry a

dvise

rs &

oth

er re

late

d pr

ofes

sion,

Pe

rman

ent

20

00

TOTA

L27

666

259,

1


TAB

LE 5

.3 -

rEA

SON

S W

HY

STA

FF A

rE

LEA

VIN

G T

HE

DEP

Ar

TMEN

T

Term

inat

ion

Type

Num

ber

Perc

enta

ge o

f Tot

al

Resi

gnat

ions

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Tota

lTo

tal E

mpl

oym

ent

Deat

h, P

erm

anen

t 1

40,

425

276

Resig

natio

n, P

erm

anen

t 21

847,

625

276

Expi

ry o

f con

tract

, Per

man

ent

312

1,1

2527

6

TOTA

L25

100

9,1

2527

6

TAB

LE 5

.4 -

Gr

AN

TIN

G O

F EM

PLO

YEE

INIT

IATE

D S

EVEr

AN

CE

PAC

KA

GES

Not

App

licab

le

Resi

gnat

ions

as

% o

f Em

ploy

men

t

9,1

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

5.5

- P

rO

MO

TIO

NS

BY

Cr

ITIC

AL

OC

CU

PATI

ON

Occ

upat

ion

Empl

oym

ent

at B

egin

ning

of

Per

iod

(Apr

il 20

12)

Prom

otio

ns t

o an

othe

r Sa

lary

Lev

elSa

lary

Lev

el P

rom

otio

ns

as a

% o

f Em

ploy

men

tPr

ogre

ssio

ns t

o an

othe

r N

otch

wit

hin

Sala

ry L

evel

Not

ch p

rogr

essi

ons

as a

%

of E

mpl

oym

ent

Adm

inist

rativ

e re

late

d 34

514

,719

55,9

Arch

itect

s to

wn

and

traffi

c pl

anne

rs

20

00

0

Bus

and

heav

y ve

hicle

driv

ers

30

00

0

Civi

l eng

inee

ring

tech

nicia

ns

40

00

0

Clie

nt in

form

cle

rks(

switc

h re

ceip

t inf

orm

cle

rks)

1

00

110

0

Com

mun

icatio

n an

d in

form

atio

n re

late

d 8

00

112

,5

Engi

neer

ing

scie

nces

rela

ted

144

28,6

750

Engi

neer

s an

d re

late

d pr

ofes

siona

ls 1

00

110

0

Fina

nce

and

econ

omics

rela

ted

131

7,7

538

,5

Fina

ncia

l and

rela

ted

prof

essio

nals

11

100

550

0

Fina

ncia

l cle

rks

and

cred

it co

ntro

llers

21

00

1152

,4

Food

ser

vice

s ai

ds a

nd w

aite

rs

20

02

100

Head

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er

10

00

0

Hum

an re

sour

ces

& or

gani

satio

n de

velo

pmen

t & re

late

pr

of

113

27,3

763

,6

Hum

an re

sour

ces

clerk

s 1

00

00

Hum

an re

sour

ces

rela

ted

31

33,3

133

,3

Info

rmat

ion

tech

nolo

gy re

late

d 5

00

360

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er c

omm

un

40

01

25

Lega

l rel

ated

1

00

110

0

Libr

ary

mai

l and

rela

ted

clerk

s 11

19,

18

72,7

Ligh

t veh

icle

driv

ers

10

00

0

Logi

stica

l sup

port

pers

onne

l 2

150

150

Mat

eria

l-rec

ordi

ng a

nd tr

ansp

ort c

lerk

s 4

00

375

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s 6

00

116

,7

Oth

er a

dmin

istra

t & re

late

d cle

rks

and

orga

nise

rs

520

023

44,2


TAB

LE 5

.6 -

Pr

OM

OTI

ON

S B

Y S

ALA

rY B

AN

D

TAB

LE 5

.5 -

Pr

OM

OTI

ON

S B

Y C

rIT

ICA

L O

CC

UPA

TIO

N

Occ

upat

ion

Empl

oym

ent

at B

egin

ning

of

Per

iod

(Apr

il 20

12)

Prom

otio

ns t

o an

othe

r Sa

lary

Lev

elSa

lary

Lev

el P

rom

otio

ns

as a

% o

f Em

ploy

men

tPr

ogre

ssio

ns t

o an

othe

r N

otch

wit

hin

Sala

ry L

evel

Not

ch p

rogr

essi

ons

as a

%

of E

mpl

oym

ent

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d of

ficer

s 10

00

880

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.

40

03

75

Oth

er o

ccup

atio

ns

61

16,7

466

,7

Regu

lato

ry in

spec

tors

1

00

00

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cle

rks

231

4,3

1878

,3

Seni

or m

anag

ers

239

39,1

626

,1

Stat

istici

ans

and

rela

ted

prof

essio

nals

10

00

0

Trad

e/in

dust

ry a

dvise

rs &

oth

er re

late

d pr

ofes

sion

20

01

50

TOTA

L27

628

10,1

141

51,1

Sala

ry B

and

Empl

oym

ent

at B

egin

ning

of

Per

iod

(Apr

il 20

12)

Prom

otio

ns t

o an

othe

r Sa

lary

Lev

elSa

lary

Lev

el P

rom

otio

ns

as a

% o

f Em

ploy

men

tPr

ogre

ssio

ns t

o an

othe

r N

otch

wit

hin

Sala

ry L

evel

Not

ch p

rogr

essi

ons

as a

%

of E

mpl

oym

ent

Skill

ed (L

evel

s 3-

5), P

erm

anen

t 32

00

1650

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

, Per

man

ent

701

1,4

5375

,7

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

), Pe

rman

ent

8511

12,9

5362

,4

Seni

or m

anag

emen

t (Le

vels

13-1

6), P

erm

anen

t 30

723

,37

23,3

Cont

ract

(Lev

els

3-5)

, Per

man

ent

230

02

8,7

Cont

ract

(Lev

els

6-8)

, Per

man

ent

160

02

12,5

Cont

ract

(Lev

els

9-12

), Pe

rman

ent

136

46,2

753

,8

Cont

ract

(Lev

els

13-1

6), P

erm

anen

t 7

342

,91

14,3

TOTA

L27

628

10,1

141

51,1

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

6.1

- T

OTA

L N

UM

BEr

OF

EMPL

OY

EES

(IN

CL.

EM

PLO

YEE

S W

ITH

DIS

AB

ILIT

IES)

PEr

OC

CU

PATI

ON

AL

CA

TEG

OrY

(SA

SCO

)

Occ

upat

iona

l Cat

egor

ies

Mal

e,

Afr

ican

Mal

e,

Colo

ured

Mal

e, In

dian

Mal

e, T

otal

Bl

acks

Mal

e, W

hite

Fem

ale,

A

fric

anFe

mal

e,

Colo

ured

Fem

ale,

In

dian

Fem

ale,

To

tal B

lack

sFe

mal

e,

Whi

teTo

tal

Legi

slato

rs, s

enio

r offi

cials

and

man

ager

s, Pe

rman

ent

180

018

29

11

110

31

Prof

essio

nals,

Per

man

ent

330

235

229

22

331

71

Tech

nicia

ns a

nd a

ssoc

iate

pr

ofes

siona

ls, P

erm

anen

t 17

10

182

272

130

252

Cler

ks, P

erm

anen

t 30

12

333

816

188

212

6

Serv

ice a

nd s

ales

wor

kers

, Pe

rman

ent

30

03

02

00

20

5

Plan

t and

mac

hine

ope

rato

rs a

nd

asse

mbl

ers,

Perm

anen

t 0

00

00

10

01

01

Elem

enta

ry o

ccup

atio

ns, P

erm

anen

t 4

00

40

61

07

112

Oth

er, P

erm

anen

t 0

00

00

10

01

01

TOTA

L10

52

411

19

156

125

173

629

9

M

ale,

A

fric

anM

ale,

Co

lour

edM

ale,

Indi

anM

ale,

Tot

al

Blac

ksM

ale,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

Co

lour

edFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Empl

oyee

s w

ith d

isabi

litie

s 3

00

30

30

03

06


TAB

LE 6

.2 -

TO

TAL

NU

MB

Er O

F EM

PLO

YEE

S (I

NC

L. E

MPL

OY

EES

WIT

H D

ISA

BIL

ITIE

S) P

Er O

CC

UPA

TIO

NA

L B

AN

DS

Occ

upat

ion

Empl

oym

ent

at B

egin

ning

of

Per

iod

(Apr

il 20

12)

Prom

otio

ns t

o an

othe

r Sa

lary

Lev

elSa

lary

Lev

el P

rom

otio

ns

as a

% o

f Em

ploy

men

tPr

ogre

ssio

ns t

o an

othe

r N

otch

wit

hin

Sala

ry L

evel

Not

ch p

rogr

essi

ons

as a

%

of E

mpl

oym

ent

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d of

ficer

s 10

00

880

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.

40

03

75

Oth

er o

ccup

atio

ns

61

16,7

466

,7

Regu

lato

ry in

spec

tors

1

00

00

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cle

rks

231

4,3

1878

,3

Seni

or m

anag

ers

239

39,1

626

,1

Stat

istici

ans

and

rela

ted

prof

essio

nals

10

00

0

Trad

e/in

dust

ry a

dvise

rs &

oth

er re

late

d pr

ofes

sion

20

01

50

TOTA

L27

628

10,1

141

51,1

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


TAB

LE 6

.3 -

rEC

rU

ITM

ENT

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

Co

lour

edM

ale,

Indi

anM

ale,

Tot

al

Blac

ksM

ale,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

Co

lour

edFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Top

Man

agem

ent,

Perm

anen

t 1

00

10

00

00

01

Prof

essio

nally

qua

lified

and

ex

perie

nced

spe

cialis

ts a

nd m

id-

man

agem

ent,

Perm

anen

t

10

01

02

00

20

3

Skill

ed te

chni

cal a

nd a

cade

mica

lly

qual

ified

wor

kers

, jun

ior

man

agem

ent,

supe

rviso

rs, f

orem

en,

Perm

anen

t

00

00

01

00

10

1

Cont

ract

(Sen

ior M

anag

emen

t),

Perm

anen

t 3

00

30

60

06

09

Cont

ract

(Pro

fess

iona

lly q

ualifi

ed),

Perm

anen

t 9

00

90

70

07

016

Cont

ract

(Ski

lled

tech

nica

l),

Perm

anen

t 0

00

00

30

03

03

Cont

ract

(Sem

i-ski

lled)

, Per

man

ent

11

02

02

00

20

4

Cont

ract

(Uns

kille

d), P

erm

anen

t 9

00

90

200

020

029

TOTA

L24

10

250

410

041

066

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

6.4

Pr

OM

OTI

ON

S

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

Co

lour

edM

ale,

Indi

anM

ale,

Tot

al

Blac

ksM

ale,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

Co

lour

edFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Seni

or M

anag

emen

t, Pe

rman

ent

70

07

24

10

50

14

Prof

essio

nally

qua

lified

and

ex

perie

nced

spe

cialis

ts a

nd m

id-

man

agem

ent,

Perm

anen

t

241

227

428

21

312

64

Skill

ed te

chni

cal a

nd a

cade

mica

lly

qual

ified

wor

kers

, jun

ior

man

agem

ent,

supe

rviso

rs, f

orem

en,

Perm

anen

t

60

06

340

30

432

54

Sem

i-ski

lled

and

disc

retio

nary

de

cisio

n m

akin

g, P

erm

anen

t 6

00

60

91

010

016

Cont

ract

(Sen

ior M

anag

emen

t),

Perm

anen

t 2

00

20

20

02

04

Cont

ract

(Pro

fess

iona

lly q

ualifi

ed),

Perm

anen

t 9

00

90

40

04

013

Cont

ract

(Ski

lled

tech

nica

l),

Perm

anen

t 0

00

00

11

02

02

Cont

ract

(Sem

i-ski

lled)

, Per

man

ent

20

02

00

00

00

2

Empl

oyee

s w

ith d

isabi

litie

s2

00

20

10

01

03

TOTA

L56

12

599

888

197

416

9


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

6.5

- T

ErM

INA

TIO

NS

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

Co

lour

edM

ale,

Indi

anM

ale,

Tot

al

Blac

ksM

ale,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

Co

lour

edFe

mal

e,

Indi

anFe

mal

e,

Tota

l Bla

cks

Fem

ale,

W

hite

Tota

l

Seni

or M

anag

emen

t, Pe

rman

ent

10

01

00

10

10

2

Prof

essio

nally

qua

lified

and

ex

perie

nced

spe

cialis

ts a

nd m

id-

man

agem

ent,

Perm

anen

t

00

00

13

00

30

4

Skill

ed te

chni

cal a

nd a

cade

mica

lly

qual

ified

wor

kers

, jun

ior

man

agem

ent,

supe

rviso

rs, f

orem

en,

Perm

anen

t

10

01

02

00

20

3

Sem

i-ski

lled

and

disc

retio

nary

de

cisio

n m

akin

g, P

erm

anen

t 1

00

10

00

00

01

Cont

ract

(Top

Man

agem

ent),

Pe

rman

ent

20

02

00

00

00

2

Cont

ract

(Sen

ior M

anag

emen

t),

Perm

anen

t 1

00

10

10

01

02

Cont

ract

(Pro

fess

iona

lly q

ualifi

ed),

Perm

anen

t 0

00

00

11

02

02

Cont

ract

(Ski

lled

tech

nica

l),

Perm

anen

t 0

00

00

20

02

02

Cont

ract

(Sem

i-ski

lled)

, Per

man

ent

20

02

02

00

20

4

Cont

ract

(Uns

kille

d), P

erm

anen

t 0

00

00

30

03

03

TOTA

L8

00

81

142

016

025


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

6.6

- D

ISC

IPLI

NA

rY A

CTI

ON

Not

App

licab

le

TAB

LE 6

.7 -

SK

ILLS

DEV

ELO

PMEN

T

Not

App

licab

le

TAB

LE 7

.1 -

PEr

FOr

MA

NC

E r

EWA

rD

S B

Y r

AC

E, G

END

Er A

ND

DIS

AB

ILIT

Y

Dem

ogra

phic

sN

umbe

r of

Ben

efici

arie

sTo

tal E

mpl

oym

ent

Perc

enta

ge o

f Tot

al

Empl

oym

ent

Cost

(R'0

00)

Aver

age

Cost

per

Ben

efici

ary

(R)

Afric

an, F

emal

e 38

153

24,8

399

10 5

10

Afric

an, M

ale

1810

217

,621

912

175

Asia

n, F

emal

e 1

520

1110

583

Asia

n, M

ale

24

5031

15 6

80

Colo

ured

, Fem

ale

412

33,3

6817

117

Colo

ured

, Mal

e 0

20

00

Tota

l Bla

cks,

Fem

ale

4317

025

,347

811

126

Tota

l Bla

cks,

Mal

e 20

108

18,5

251

12 5

26

Whi

te, F

emal

e 4

666

,753

13 3

29

Whi

te, M

ale

59

55,6

123

24 5

01

Empl

oyee

s w

ith a

disa

bilit

y 0

60

00

TOTA

L 72

299

24,1

905

12 5

66


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07

Sala

ry B

and

Num

ber

of B

enefi

ciar

ies

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

-m

ent

Cost

(R'0

00)

Aver

age

Cost

per

Be

nefic

iary

(R)

Skill

ed (L

evel

s 3-

5)

831

25,8

577

125

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

31

6448

,430

59

839

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

) 30

9033

,341

413

800

Cont

ract

(Lev

els

1-2)

0

260

00

Cont

ract

(Lev

els

3-5)

0

210

00

Cont

ract

(Lev

els

6-8)

0

100

00

Cont

ract

(Lev

els

9-12

) 0

140

00

Perio

dica

l Rem

uner

atio

n 0

430

00

TOTA

L69

299

23,1

776

1124

6

TAB

LE 7

.2 -

PEr

FOr

MA

NC

E r

EWA

rD

S B

Y S

ALA

rY B

AN

D F

Or

PEr

SON

NEL

BEL

OW

SEN

IOr

M

AN

AG

EMEN

T SE

rV

ICE


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

7.3

- P

ErFO

rM

AN

CE

rEW

Ar

DS

BY

Cr

ITIC

AL

OC

CU

PATI

ON

Crit

ical

Occ

upat

ions

Num

ber

of B

enefi

ciar

ies

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tCo

st (R

'000

)Av

erag

e Co

st p

er

Bene

ficia

ry (R

)

Adm

inist

rativ

e re

late

d 11

3729

,715

514

091

Arch

itect

s to

wn

and

traffi

c pl

anne

rs

01

00

0

Bus

and

heav

y ve

hicle

driv

ers

01

00

0

Civi

l eng

inee

ring

tech

nicia

ns

01

00

0

Clie

nt in

form

cle

rks(

switc

h re

ceip

t inf

orm

cle

rks)

0

10

00

Com

mun

icatio

n an

d in

form

atio

n re

late

d 0

60

00

Engi

neer

ing

scie

nces

rela

ted

417

23,5

5914

750

Engi

neer

s an

d re

late

d pr

ofes

siona

ls 0

10

00

Fina

nce

and

econ

omics

rela

ted

313

23,1

3612

000

Fina

ncia

l and

rela

ted

prof

essio

nals

03

00

0

Fina

ncia

l cle

rks

and

cred

it co

ntro

llers

8

3821

,179

9 87

5

Food

ser

vice

s ai

ds a

nd w

aite

rs

02

00

0

Head

of d

epar

tmen

t/chi

ef e

xecu

tive

offic

er

02

00

0

Hum

an re

sour

ces

& or

gani

satio

n de

velo

pmen

t & re

late

pro

f 3

933

,344

14 6

67

Hum

an re

sour

ces

clerk

s 0

50

00

Hum

an re

sour

ces

rela

ted

03

00

0

Info

rmat

ion

tech

nolo

gy re

late

d 3

475

4314

333

Lang

uage

pra

ctiti

oner

s in

terp

rete

rs &

oth

er c

omm

un

02

00

0

Lega

l rel

ated

1

110

017

17 0

00

Libr

ary

mai

l and

rela

ted

clerk

s 7

1838

,953

7 57

1

Logi

stica

l sup

port

pers

onne

l 0

40

00

Mat

eria

l-rec

ordi

ng a

nd tr

ansp

ort c

lerk

s 0

40

00

Mes

seng

ers

porte

rs a

nd d

eliv

erer

s 1

520

77

000


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

7.3

- P

ErFO

rM

AN

CE

rEW

Ar

DS

BY

Cr

ITIC

AL

OC

CU

PATI

ON

(C

ON

TIN

UED

)

Oth

er a

dmin

istra

tion

& re

late

d cle

rks

and

orga

nise

rs

837

21,6

779

625

Oth

er a

dmin

istra

tive

polic

y an

d re

late

d of

ficer

s 7

1070

8011

429

Oth

er in

form

atio

n te

chno

logy

per

sonn

el.

28

2526

13 0

00

Oth

er o

ccup

atio

ns

17

14,3

88

000

Rank

: Unk

now

n 0

10

00

Regu

lato

ry in

spec

tors

0

10

00

Risk

man

agem

ent a

nd s

ecur

ity s

ervi

ces

04

00

0

Secr

etar

ies

& ot

her k

eybo

ard

oper

atin

g cle

rks

1123

47,8

112

10 1

82

Seni

or m

anag

ers

228

7,1

109

54 5

00

Stat

istici

ans

and

rela

ted

prof

essio

nals

01

00

0

Trad

e/in

dust

ry a

dvise

rs &

oth

er re

late

d pr

ofes

sion

01

00

0

TOTA

L72

299

24,1

905

1256

9

TAB

LE 7

.4 -

PEr

FOr

MA

NC

E r

ELA

TED

rEW

Ar

DS

(CA

SH B

ON

US)

BY

SA

LArY

BA

ND

FO

r S

ENIO

r

MA

NA

GEM

ENT

SEr

VIC

E

SMS

Band

Num

ber

of

Bene

ficia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tCo

st (R

'000

)Av

erag

e Co

st p

er

Bene

ficia

ry (R

)%

of S

MS

Wag

e Bi

llPe

rson

nel C

ost

SMS

(R'0

00)

Band

A

128

3,6

2020

000

0,1

22 9

70

Band

B

212

16,7

109

54 5

001,

57

362

Band

C

01

00

00

0

Band

D

02

00

00

0

TOTA

L3

437

129

4300

00,

430

332

TOTA

L72

299

24,1

905

1256

9

Crit

ical

Occ

upat

ions

Num

ber

of B

enefi

ciar

ies

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tCo

st (R

'000

)Av

erag

e Co

st p

er

Bene

ficia

ry (R

)


TAB

LE 8

.1 -

FO

rEI

GN

WO

rK

ErS

BY

SA

LArY

BA

ND

Not

App

licab

le

TAB

LE 8

.2 -

FO

rEI

GN

WO

rK

ErS

BY

MA

JOr

OC

CU

PATI

ON

Not

App

licab

le

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07

TAB

LE 9

.1 -

SIC

K L

EAV

E FO

r J

AN

201

2 TO

DEC

201

2

Sala

ry B

and

Tota

l Day

s%

Day

s w

ith

Med

ical

Ce

rtifi

cati

onN

umbe

r of

Em

ploy

ees

usin

g Si

ck L

eave

% o

f Tot

al

Empl

oyee

s us

ing

Sick

Le

ave

Aver

age

Day

s pe

r Em

ploy

eeEs

tim

ated

Co

st (R

'000

)

Tota

l num

ber

of

Empl

oyee

s us

ing

Sick

Lea

ve

Tota

l num

ber

of

days

wit

h m

edic

al

cert

ifica

tion

Skill

ed (L

evel

s 3-

5)

184

91,3

2111

,79

6817

916

8

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

44

474

,558

32,4

827

817

933

1

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

) 38

179

5933

654

217

930

1

Seni

or m

anag

emen

t (Le

vels

13-1

6)

7581

,310

5,6

822

717

961

Cont

ract

(Lev

els

1-2)

22

95,5

95

24

179

21

Cont

ract

(Lev

els

3-5)

17

64,7

73,

92

617

911

Cont

ract

(Lev

els

6-8)

32

90,6

73,

95

1917

929

Cont

ract

(Lev

els

9-12

) 15

93,3

31,

75

2317

914

Cont

ract

(Lev

els

13-1

6)

1573

,35

2,8

340

179

11

TOTA

L11

8579

,917

910

07

1207

179

947


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07

TAB

LE 9

.3 -

AN

NU

AL

LEA

VE

FOr

JA

N 2

012

TO D

EC 2

012

Sala

ry B

and

Tota

l Day

s Ta

ken

Aver

age

days

per

Em

ploy

eeN

umbe

r of

Em

ploy

ees

who

too

k le

ave

Skill

ed (L

evel

s 3-

5)

623

1933

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

14

6522

68

High

ly sk

illed

sup

ervi

sion

(Lev

els

9-12

) 17

8819

94

Seni

or m

anag

emen

t (Le

vels

13-1

6)

420

2021

Cont

ract

(Lev

els

1-2)

10

55

23

Cont

ract

(Lev

els

3-5)

17

58

22

Cont

ract

(Lev

els

6-8)

10

47

14

Cont

ract

(Lev

els

9-12

) 65

88

Cont

ract

(Lev

els

13-1

6)

169

1214

TOTA

L49

1417

297

TAB

LE 9

.2 -

DIS

AB

ILIT

Y L

EAV

E (T

EMPO

rA

rY A

ND

PEr

MA

NEN

T) F

Or

JA

N 2

012

TO D

EC 2

012

SMS

Band

Num

ber

of

Bene

ficia

ries

Tota

l Em

ploy

men

tPe

rcen

tage

of T

otal

Em

ploy

men

tCo

st (R

'000

)Av

erag

e Co

st p

er

Bene

ficia

ry (R

)%

of S

MS

Wag

e Bi

llPe

rson

nel C

ost

SMS

(R'0

00)

Band

A

128

3,6

2020

000

0,1

22 9

70

Band

B

212

16,7

109

54 5

001,

57

362

Band

C

01

00

00

0

Band

D

02

00

00

0

TOTA

L3

437

129

4300

00,

430

332

TOTA

L72

299

24,1

905

1256

9


TAB

LE 9

.4 -

CA

PPED

LEA

VE

FOr

JA

N 2

012

TO D

EC 2

012

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 le

ave

per

empl

oyee

as

at 3

1 D

ecem

ber

2012

Num

ber

of E

mpl

oyee

s w

ho t

ook

Capp

ed

leav

e

Tota

l num

ber

of c

appe

d le

ave

avai

labl

e at

31

Dec

embe

r 20

12

Num

ber

of E

mpl

oyee

s as

at

31

Dec

embe

r 20

12

High

ly sk

illed

pro

duct

ion

(Lev

els

6-8)

4

419

142

522

TOTA

L4

419

142

522

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07

Reas

onTo

tal A

mou

nt (R

'000

)N

umbe

r of

Em

ploy

ees

Aver

age

Paym

ent

per

Empl

oyee

(R)

Capp

ed le

ave

payo

uts

on te

rmin

atio

n of

ser

vice

for 2

012/

13

263

8667

Curre

nt le

ave

payo

ut o

n te

rmin

atio

n of

ser

vice

for 2

012/

13

09

0

TOTA

L26

1221

67

TAB

LE 9

.5 -

LEA

VE

PAY

OU

TS


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

visio

ns c

onta

ined

in P

art V

I E o

f Cha

pter

1 o

f the

Pu

blic

Serv

ice R

egul

atio

ns, 2

001?

If s

o, p

rovi

de h

er/h

is na

me

and

posit

ion.

X

Ca

thrin

e M

amab

olo

2. D

oes

the

depa

rtmen

t hav

e a

dedi

cate

d un

it or

hav

e yo

u de

signa

ted

spec

ific

staf

f mem

bers

to p

rom

ote

heal

th a

nd w

ell

bein

g of

you

r em

ploy

ees?

If s

o, in

dica

te th

e nu

mbe

r of e

mpl

oyee

s w

ho a

re in

volv

ed in

this

task

and

the

annu

al b

udge

t tha

t is

avai

labl

e fo

r thi

s pu

rpos

e.

X

One

per

son

3. H

as th

e de

partm

ent i

ntro

duce

d an

Em

ploy

ee A

ssist

ance

or H

ealth

Pro

mot

ion

Prog

ram

me

for y

our e

mpl

oyee

s? If

so,

indi

cate

th

e ke

y el

emen

ts/s

ervi

ces

of th

e pr

ogra

mm

e.

X

HIV

and

AIDS

and

TB

Man

agem

ent P

rogr

amm

e, W

elln

ess

Man

agem

ent

4. H

as th

e de

partm

ent e

stab

lishe

d (a

) com

mitt

ee(s

) as

cont

empl

ated

in P

art V

I E.5

(e) o

f Cha

pter

1 o

f the

Pub

lic S

ervi

ce

Regu

latio

ns, 2

001?

If s

o, p

leas

e pr

ovid

e th

e na

mes

of t

he m

embe

rs o

f the

com

mitt

ee a

nd th

e st

akeh

olde

r(s) t

hat t

hey

repr

esen

t. X

Dept

is in

a p

roce

ss o

f est

ablis

hing

a c

omm

ittee

5. H

as th

e de

partm

ent r

evie

wed

the

empl

oym

ent p

olici

es a

nd p

ract

ices

of y

our d

epar

tmen

t to

ensu

re th

at th

ese

do n

ot u

nfai

rly

disc

rimin

ate

agai

nst e

mpl

oyee

s on

the

basis

of t

heir

HIV

stat

us?

If so

, list

the

empl

oym

ent p

olici

es/p

ract

ices

so re

view

ed.

X

HIV,

AID

S an

d TB

pol

icy, S

exua

l Har

assm

ent a

nd W

elln

ess

Polic

y

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 HI

V-po

sitiv

e fro

m

disc

rimin

atio

n? If

so,

list

the

key

elem

ents

of t

hese

mea

sure

s.

Polic

y de

velo

pmen

t, Im

plem

enta

tion

Hum

an R

ight

s ba

sed

prog

ram

me

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

that

you

ha

ve a

chie

ved.

X

26

Mal

es a

nd 3

1 Fe

mal

es.

57 N

egat

ive

resu

lts, 0

pos

itive

s re

sult

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 you

r hea

lth p

rom

otio

n pr

ogra

mm

e?

If so

, list

thes

e m

easu

res/

indi

cato

rs.

X

Non

e

TAB

LE 1

0.1

- ST

EPS

TAK

EN T

O r

EDU

CE

THE

rIS

K O

F O

CC

UPA

TIO

NA

L EX

POSU

rE

Not

App

licab

le

TAB

LE 1

0.2

- D

ETA

ILS

OF

HEA

LTH

Pr

OM

OTI

ON

AN

D H

IV/A

IDS

PrO

Gr

AM

MES

[TI

CK

YES

/NO

AN

D

PrO

VID

E r

EqU

IrED

INFO

rM

ATI

ON

]

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


TAB

LE 1

1.1

- C

OLL

ECTI

VE

AG

rEE

MEN

TS

Not

App

licab

le

TAB

LE 1

1.2

- M

ISC

ON

DU

CT

AN

D D

ISC

IPLI

NE

HEA

rIN

GS

FIN

ALI

SED

Out

com

es o

f dis

cipl

inar

y he

arin

gsN

umbe

rPe

rcen

tage

of T

otal

Tota

l

TOTA

L6

100

6

TAB

LE 1

1.3

- TY

PES

OF

MIS

CO

ND

UC

T A

DD

rES

SED

AN

D D

ISC

IPLI

NA

rY H

EAr

ING

S

Type

of m

isco

nduc

tN

umbe

rPe

rcen

tage

of T

otal

Tota

l

TOTA

L6

100

6

TAB

LE 1

1.4

- G

rIE

VA

NC

ES L

OD

GED

Num

ber

of g

riev

ance

s ad

dres

sed

Num

ber

Perc

enta

ge o

f Tot

alTo

tal

TOTA

L3

100

3

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


TAB

LE 1

1.5

- D

ISPU

TES

LOD

GED

Not

App

licab

le

TAB

LE 1

1.6

- ST

rIK

E A

CTI

ON

S

Not

App

licab

le

TAB

LE 1

1.7

- Pr

ECA

UTI

ON

ArY

SU

SPEN

SIO

NS

Not

App

licab

le

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


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 t

rain

ing

Tota

l

Legi

slato

rs, s

enio

r offi

cials

and

man

ager

s Fe

mal

e 8

05

27

M

ale

340

52

7

Prof

essio

nals

Fem

ale

1717

835

105

M

ale

157

355

47

Tech

nicia

ns a

nd a

ssoc

iate

pro

fess

iona

ls Fe

mal

e 35

438

951

M

ale

563

224

29

Cler

ks

Fem

ale

390

3924

63

M

ale

230

275

32

Serv

ice a

nd s

ales

wor

kers

Fe

mal

e 83

335

2866

M

ale

331

5510

66

Skill

ed a

gricu

lture

and

fish

ery

wor

kers

Fe

mal

e 0

00

00

M

ale

00

00

0

Craf

t and

rela

ted

trade

s w

orke

rs

Fem

ale

00

00

0

M

ale

00

00

0

Plan

t and

mac

hine

ope

rato

rs a

nd

asse

mbl

ers

Fem

ale

00

00

0

M

ale

00

00

0

Elem

enta

ry o

ccup

atio

ns

Fem

ale

00

152

5020

2

M

ale

00

550

55

Gen

der s

ub to

tals

Fem

ale

2435

211

849

4

M

ale

1119

926

236

Tota

l

3555

114

473

0

TAB

LE 1

2.2

- Tr

AIN

ING

Pr

OV

IDED

GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07O

ccup

atio

nal C

ateg

orie

sG

ende

rEm

ploy

men

tLe

arne

rshi

psSk

ills

Prog

ram

mes

& o

ther

sho

rt c

ours

esO

ther

form

s of

tra

inin

gTo

tal

Legi

slato

rs, s

enio

r offi

cials

and

man

ager

s Fe

mal

e 8

03

14

M

ale

340

42

6

Prof

essio

nals

Fem

ale

1724

185

47

M

ale

1511

245

40

Tech

nicia

ns a

nd a

ssoc

iate

pro

fess

iona

ls Fe

mal

e 35

033

841

M

ale

560

263

29

Cler

ks

Fem

ale

390

127

2114

8

M

ale

230

274

31

Serv

ice a

nd s

ales

wor

kers

Fe

mal

e 83

00

2424

M

ale

330

02

2

Skill

ed a

gricu

lture

and

fish

ery

wor

kers

Fe

mal

e 0

00

00

M

ale

00

00

0

Craf

t and

rela

ted

trade

s w

orke

rs

Fem

ale

00

00

0

M

ale

00

00

0

Plan

t and

mac

hine

ope

rato

rs a

nd

asse

mbl

ers

Fem

ale

00

00

0

M

ale

00

00

0

Elem

enta

ry o

ccup

atio

ns

Fem

ale

00

152

8523

7

M

ale

00

550

55

Gen

der s

ub to

tals

Fem

ale

182

2433

314

450

1

M

ale

161

1113

616

163

Tota

l

343

3546

916

066

4

TAB

LE 1

2.2

- Tr

AIN

ING

Pr

OV

IDED


GAU

TEN

G D

EPAR

TMEN

T O

F EC

ON

OM

IC D

EVEL

OPM

ENT

| VOT

E 3

HUM

AN R

ESO

URC

E O

VERS

IGHT

REP

ORT

SECTION 07TA

BLE

13.

1 -

INJU

rY O

N D

UTY

Not

App

licab

le

TAB

LE 1

4.1

- r

EPO

rT

ON

CO

NSU

LTA

NT

APP

OIN

TMEN

TS U

SIN

G A

PPr

OPr

IATE

D F

UN

DS

Not

App

licab

le

TAB

LE 1

4.2

- A

NA

LYSI

S O

F C

ON

SULT

AN

T A

PPO

INTM

ENTS

USI

NG

APP

rO

PrIA

TED

FU

ND

S, I.

T.O

. HD

IS

Not

App

licab

le

TAB

LE 1

4.3

- r

EPO

rT

ON

CO

NSU

LTA

NT

APP

OIN

TMEN

TS U

SIN

G D

ON

Or

FU

ND

S

Not

App

licab

le

TAB

LE 1

4.4

- A

NA

LYSI

S O

F C

ON

SULT

AN

T A

PPO

INTM

ENTS

USI

NG

DO

NO

r F

UN

DS,

I.T.

O. H

DIS

Not

App

licab

le


SECT

ION 08

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | OUTLOOK FOR THE

COMING YEAR


The Department of Economic Development, in aligning with the Gauteng MTSF and the outcomes of the provincial government, has led the development of the Gauteng Employment, Growth and Development Strategy (GEGDS) which is the framework that underpins the developmental objectives of the province to achieve decent work creation and sustainable economic growth.

In order to support these objectives, the Department of Economic Development has also formulated key economic policies and strategies, namely but not least, the Industrial policy which will now be implemented through specific priority sector development strategies; BBBEE strategy; Green Economy strategy; SMME and Cooperatives strategies which have all recently been finalised.

The focus now shifts to enhancing the effective implementation of these strategies, and this critically informs the reprioritisation and reconfiguration of the Department, and has been considered in the development of the Department’s 2013/14 Annual Performance Plan and Budget. The demand for DED services and other factors that have informed the development of the 2013/14 Annual Performance Plan is discussed in more detail below in accordance to the provincial Outcome 4 Plan and outputs thereof:

Output 1: Strategic Economic Infrastructure Stimulating Employment-led Economic Growth and Development

Gauteng Growth and Development Agency will continue to increase its efforts in the development of strategic economic infrastructure to serve as the bedrock for business and economic development.

Investment in network and connectivity infrastructure such as the NASREC Development Precinct SEZ will continue. Furthermore, phase 1 of the Diepsloot Industrial Park will be completed; this will include the Incubation Centre and Practical University.

Output 2: Re-industrialisation to Support the Growth of Labour Intensive Industries

Gauteng Growth and Development Agency will to continue to focus on addressing skills gaps and creating jobs through partnerships with industries to deliver skills for the economy in labour intensive sectors such as the automotive, furniture, fashion, metal fabrication and mineral beneficiation sectors. The Nissan Simulator will be finalised and an investment in the expansion of the mini-factories at the Automotive Supplier Park will be concluded.

Output 3: Building an Innovation and Knowledge-based Economy to drive Competitiveness and Economic Growth

The Department plans to finalise the four enterprise development business cases for the NASREC Precinct and the establishment of BPO centres, mobile walk-in centres and ICT centres at the NASREC Precinct. The programmes of the Innovation Hub and the Gauteng Innovation Exchange Programme will continue with an enhanced focus on addressing skills gaps and creating jobs through partnerships with industries and the skills development sector to deliver skills for the economy in the ICT and knowledge sector.

Output 4: Green Economy Interventions to Support Sustainable Economic Growth and Interventions

The green agenda includes supporting and incubating companies via the Climate Innovation Centre, identifying and mentoring bio-science innovation through the Gauteng Accelerator Programme (GAP), completing and commissioning the Sedibeng and West Rand Bio-digestor projects and the Ekurhuleni Waste to Energy project.

Output 5: Tourism Sector Development to drive Competitiveness and Economic Growth

The focus of the Gauteng Tourism Agency, Cradle of Humankind World Heritage Site and Dinokeng projects will be to continue with the merging of these three entities into a “single unified tourism entity”. The purpose of the merger is to improve the drive to position Gauteng as a tourism destination for business and leisure, growing the visitor economy and effectively managing destination Gauteng in a responsible and sustainable manner. There will be a continued focus on addressing skills gaps and creating jobs through partnerships with industries and the skills development sector to deliver skills for the economy in the tourism sector, so as to address structural unemployment with the view of absorbing trained persons.

Specific priorities for the 2013/14 financial year include finalising the transfer and operating model for the Ga-Rankuwa Hotel School, the refurbishment of ramparts and interior office space at Constitution Hill, and continuing with the infrastructure upgrade at the Cradle of Humankind World Heritage Site. In terms of developing Constitution Hill Precinct as a lead project in city renewal and for the establishment of a struggle history route, the Nelson Mandela Centre of Memory will be developed as an anchor attraction to enhance the visitor experience to Constitution Hill.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENTOUTLOOK FOR THE COMING YEAR

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Output 7: Sustainable Employment Creation

SMME and Cooperatives Support: Gauteng Enterprise Propeller (GEP)

The focus of the Department and the GEP will be to strengthen partnerships with the private sector and government agencies in order to create SMME incubators that will be employment creators and aggressively drive greater involvement of SMMEs and cooperatives in the economy. In the 2013/14 financial year, a targeted focus on providing support and training to informal businesses will be implemented.

Implementation of Youth Employment Strategy

The Department will continue with the implementation of the Youth Employment Strategy through the establishment of Township Enterprise Hubs, the refurbishment of old township industrial sites, the roll-out of the Gauteng Youth Placement Programme and the focused establishment of youth business.

Output 8: Trade and investment Promotion

The Gauteng Economic Development Agency (GEDA) will ensure that Gauteng retains its position as an economic hub of Southern Africa, and will promote trade and investment to maximise Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) aiming to increase the participation of Gauteng nationally, regionally and internationally.

Furthermore, emphasis will be placed on positioning Gauteng-based companies to benefit from procurement in strategic economic infrastructure projects such as rail-road construction, independent power production and manufacture of rolling stock.

The highlight will be to position Gauteng as the gateway to benefit from bilateral and regional trade agreements through implementation of the Gauteng Investment Centre (One-Stop Shop). This will facilitate trade and investment and the export development programme, ensuring that Gauteng exports increase.

Broad Based Black Economic Empowerment (BBBEE)

The Department will continue to monitor the implementation of the BBBEE strategy. The DED in conjunction with the Gauteng Department of Finance (GDF) (Shared Services Division) will continue to run awareness sessions with Supply Chain Management (SCM) staff in GPG Departments, agencies, municipalities and GPG suppliers.

The Department will also continue to assist GPG entities and suppliers to understand the Preferential Procurement Policy Financial Act (PPPFA) and alignment to B-BBEE Regulations to ensure compliance. A key focus will be to use preferential procurement to leverage a greater supply of locally produced goods and services.

Other Departmental Programmes

Consumer Protection

The Department identified sections in the national legislation that impact on its mandate and role and will review the Consumer Affairs (Unfair Business Practices) Act 7 of 1996 during the year. Consumer education, advocacy and awareness remain the cornerstone upon which consumer protection is built and the new communication and marketing strategy calls for increased use of mass media and social media platforms to educate Gauteng citizens.

Increased access to consumer affairs courts in communities is a top priority, the more so with the passing of the Consumer Affairs (Unfair Business Practices) Act which advocates the promotion and protection of consumer rights in marginalised and rural communities.

Liquor Licencing

Priorities for the 2013/14 financial year include the finalisation and implementation of the Automated Liquor Licensing System (ALLS), intensifying liquor abuse education and awareness programmes, and increasing the number of inspections in order to enforce compliance. A process flow with specific time frames will be developed in this regard. In terms of governance, the Department will conduct a review of the current funding model and finalise the migration of shebeen permits into the ambit of the Gauteng Liquor Act of 2003.

Gambling Regulation

During the 2013/14 financial year, the Gauteng Gambling Board (GGB) will continue to focus on the roll-out of the responsible gambling awareness campaign with particular attention to school awareness programmes, university and college campus visits, awareness sessions at public shows and expos, adult outreach projects (Allpay and transport hubs) and public advertising.

In terms of its mandate to regulate and control gambling, the GGB will pay particular attention to a review of the impact of the proposed withholding tax on punters winnings and contribute to the deliberations on the proposed amendments to the Taxation Laws Amendment Bill.


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Economic Planning

During the 2013/14 financial year, emphasis will be placed on ensuring that robust engagement takes place with key stakeholders and that more evidenced based policies and strategies are developed for implementation. The Department will conduct an impact index to assess the effectiveness of these measures and track the contribution to the attainment of targets in line with the Gauteng Economic Growth and Development Strategy.

In addition the Department will ensure the development of sector support programmes for implementation and complete the remaining sector strategies for sectors targeted by the Gauteng Industrial Policy Framework (GIPF). A series of exercises to support regional integration will be implemented to ensure that Gauteng remains the gateway to the African continent for trade and investment.


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GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT | OTHER INFORMATION


9.1 LEGISLATION PrODUCED AND ADMINISTErED BY THE DEPArTMENT

Blue IQ Investment Holdings (Proprietary) Limited Amendment Act 1 of 2012

The Department drafted the Blue IQ Amendment Act, which was adopted by the Legislature, and was assented by the Premier in May 2012. The Act extends the scope and objects of the Blue IQ Investments and to also dissolve the Gauteng Economic Development Agency.

The Gauteng Liquor Regulations on Shebeen Licences, 2013

The Shebeen Regulations aimed at converting the shebeen permits into licences was adopted by the Legislature on 27 February 2013.

The Gauteng Gambling Regulations 2013These Regulations provides for the annual increase of fees of the Gauteng Gambling Board.

9.2 rEFErENCES AND SOUrCES USED ACCOUNTING FOr THE SUCCESS rATES AND FAILUrES OF THE DEPArTMENT

The following reports and documents were utilized in the preparation of the Annual Report for the financial year 2012/13.

Annual Report 2011/12FY Quarterly Performance Report 2012/13FY Strategic Plan 2009-2014 Annual Performance Plan 2012/13 Budget Book 2012/13FY

9.3 ACCESS TO INFOrMATION

Chief Information Officer

Funeka NjobeTell: 011 355 8691 • Fax: 086 524 6673 Email: [email protected]

9.4 DED SOCIAL MEDIA @GautengDED Gauteng Department of Ecomomic Development http:\\gpgded.wordpress.com www.youtube.com/user/gpgded/feed

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENTOTHER INFORMATION

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GPG Contact Centre0860 GAUTENG (0860 428 8364)

Matlotlo House, 94 Main Street, Johannesburg Private Bag X091Marshalltown, 2107T (011) 355-8000F (011) 355-8730

RP225/2013ISBN: 987-0-621-41167-6

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