annual - national government

ANNUAL REPORT 2019/20 1

REPORT 2019/20ANNUAL

Annual Report 2019/20_26_OCT_2020.indd 1Annual Report 2019/20_26_OCT_2020.indd 1 10/26/20 4:29 PM10/26/20 4:29 PM

ANNUAL REPORT 2019/202



ContentsPART A: GENERAL INFORMATION

Public Entity’s General Information 6 List of Abbreviations/Acronyms 7Chairperson’s Foreword 9Chief Executive Officer’s Overview 11

PART B: PERFORMANCE INFORMATION

Auditor’s Report: Predetermined Objectives 22Situational Analysis 22Service Delivery Environment 22Organisational Environment 27Key Policy Developments and Legislative Changes 29Strategic Outcome Oriented Goals 30

Statement of Responsibility and Confirmation of Accuracy for the Annual Report 12Strategic Overview 14Constitutional and other Mandates 16Board of Directors 18Executive Committee 19Organisational Structure 20

Performance Information by Programme/ Activity/ Objective 33Outcome 1: Railways are Safer 33Outcome 2: Sustainable Institutional Growth and Development 40Outcome 3: Improved Stakeholder Service 43Revenue Collection 46 Capital Investment 47

PART C: GOVERNANCE

Introduction 50Portfolio Committees 50Executive Authority 50The Accounting Authority/Board 50Company/Board Secretary 62Risk Management 63Internal Controls 65Internal Audit and Audit Committees 65

Compliance with Laws and Regulations 67Fraud and Corruption 68Minimising Conflict of Interest 69Code of Conduct 69Health Safety and Environmental Issues 70Social Responsibility 72Audit Committee Report 73B-BBEE Compliance Performance Information 75

PART D: HUMAN RESOURCE MANAGEMENT

Introduction 78Human Resource Oversight Statistics 80

PART E: FINANCIAL INFORMATION

Auditor General’s Report 90Annual Financial Statements 94 Notes 142

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PART A: GENERAL INFORMATION



Public Entity’s General Information

Registered Name: Railway Safety Regulator

Registration Number: N/A

Physical Address: Building 4, Waterfall Point Office Park, Cnr Waterfall and Woodmead Drive, Waterfall City, Midrand, 1685, South Africa

Postal Address: P.O Box 11202, Centurion, 0051, South Africa

Telephone Number: +27 10 495 5291

Email Address: [email protected]

Website Address: https://www.rsr.org.za

External Auditors: Auditor General of South Africa

271 Veale Street, Muckleneuk, 0181

Banker: ABSA

Company/ Board Secretary Mmuso Selaledi (Acting)



List of Abbreviations/Acronyms

AFS Annual Financial Statements

AGSA Auditor General of South Africa

APP Annual Performance Plan

ASB Accounting Standards Board

BBBEE Broad Based Black Economic Empowerment

CCMA Commission for Conciliation Mediation and Arbitration

CEO Chief Executive Officer

CFO Chief Financial Officer

COO Chief Operations Officer

CSM-CA Common Safety Method Conformity Assessment

CSM-RA Common Safety Method Risk Assessment

DoT Department of Transport

ERM Enterprise-Wide Risk Management

FY Financial Year

GRAP Generally Recognised Accounting Practice

HFM Human Factor Management

IAA Internal Audit Activity

ICT Information Communication Technology

IIMS Integrated Information Management System

KPI Key Performance Indicator

MoU Memorandum of Understanding

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

NATMAP National Transport Master Plan 2050

NDP National Development Plan 2030



NIMS National Information Monitoring System

PFMA Public Finance Management Act

PRASA Passenger Rail Agency of South Africa

REPUBLIC Republic of South Africa

RIA Regulatory Impact Assessment

RM3 Railway Management Maturity Model

RSR Railway Safety Regulator

SADC Southern Africa Development Community

SALGA South African Local Government Association

SANS South African National Standards

SARA Southern Africa Railways Association

SATAWU South African Transport and Allied Workers

SCM Supply Chain Management

SMME Small Medium and Micro Enterprises

SMS Safety Management System

SMSR Safety Management System Report

SOP Standard Operating Procedure

TETA Transport, Education and Training Authority

TFR Transnet Freight Rail

TR Treasury Regulations

UNTU United National Transport Union

VSCC Verbal Safety Critical Communication



A s I take over the reins as the Chairperson of the Board of Directors of the Railway Safety Regulator (RSR), I am pleased to present the 2019/20 Annual Report in a year where the Regulator achieved 94 per cent of its annual performance targets. It would be remiss of me not to acknowledge the role played

by my colleagues who were part of the previous RSR Board. This great performance would not have been possible without their dedication and stewardship.

The year under review has indeed been exceptional and saw the RSR accentuate the 6th Administration’s apex priorities and the Department of Transport’s Strategic Outcome to ensure an efficient and integrated rail network that accelerates social and economic development. The Regulator aligned its strategic goals and objectives to ensure that all rail industry activities are completed with safety as the main consideration.

The Board of Directors focused on discharging their duties of ensuring that the RSR complies with legislation, conducts its business in harmony with the applicable regulatory requirements and ensures that suitable policies, as well as frameworks, are steadfast to promote a culture of compliance within the organisation. In line with this, the Compliance Unit was established to assist the Board in the management of compliance risks, by ensuring that all instances of non-compliance are adequately followed up and resolved. This enabled the RSR to conduct its business activities in an increasingly efficient and effective environment.

Throughout the 2019/20 Financial Year, the RSR’s compliance monitoring was prioritised with the organisation ensuring controls and processes to support the requirements of the relevant Acts. These controls and processes were assessed for validity through corroboration of supporting evidence. To this effect, numerous policies were signed off and all departments across the organisation developed Standard Operating Procedures which guarantees that processes are in place to ensure excellent service delivery every time.

We are very pleased about the key strategic relationships that were established with the South African Local Government Association (SALGA) in the Gauteng and North-West provinces respectively. To this end, strong relationships are being built that will have mutual benefits for both entities. A lot of work is still required in this space and over time, we hope to see positive impacts on compliance as well as spatial planning, among other priorities. In the new financial year, the RSR will focus on strengthening its mandate by developing a Common Safety Method for Supervision Framework as well as a Financial Sustainability Plan. These will no doubt bring immeasurable value to the industry.

Allow me to thank the Minister of Transport, Mr. Fikile Mbalula, the members of the previous Board, the executive team and all the staff members of the RSR as well as our extensive assembly of stakeholders for making the Regulator a significant player in the railway environment.

________________________________________Mr Boy Johannes NobungaCHAIRPERSON: RSR BOARD

Chairperson’s foreword



ANNUAL REPORT 2019/2010 ANNUAL REPORT 2019/2010



Chief Executive Officer’s report

T he past financial year has been both challenging and outstanding for the Railway Safety Regulator (RSR). Notwithstanding the challenges, the Regulator performed exceptionally well. I am, therefore, truly honoured to present the 2019/20 Annual Report of the RSR which reflects

on a year where the RSR achieved a sterling 94 per cent overall performance.

As a state-owned entity of the National Department of Transport, the RSR aligned its Annual Performance Plan with the Apex Priorities of the 6th Administration. In line with transforming the economy to serve all South Africans and create jobs, the organisation awarded a total of R3 044 959 for internal and external bursaries during the year under review. The bursaries were awarded to nine staff members and 29 deserving students, who will over time become contributing professionals in industries, including the rail sector.

To advance nation-building and social cohesion, the RSR is strengthening the rail regulatory framework through the development of determinations, protocols and guidelines. These tools are aimed at building industry capacity to develop effective safety management approaches as well as the development of an industry safety risk profile to support critical risk mitigation decisions that will result in safer railway operations. These require industry cooperation.

To that extent, the RSR reviewed its engagement with the industry by adopting a collaborative approach in mitigating the risks of railway occurrences and thereby reducing the number of occurrences.

Throughout the financial year, the Supply Chain Management (SCM) unit continued to ensure compliance with legislation, National Treasury instruction notes and the RSR’s internal controls. Special care was taken to ensure that efficiency in the procurement of goods and services continued to improve the overall organisational performance. However, the audit outcome indicates that a bit more has to be done to ensure compliance with all supply chain legislation.

Some of the highlights of the year under review included the conclusion of the restructuring process, including the filling of crucial vacancies; the development of a Safety Risk Model (SRM) scope; occurrence reporting categories were published, and the Common Safety Method for Risk Assessment (CSM-RA) was tested with three Class A operators. Competency guidelines and agreed workload planning are still in progress and will be included in the operational plan of the relevant department for the 2020/21 FY to ensure that we do not lose sight of the set targets.

I would like to take this opportunity to thank the Department of Transport and the previous Board of Directors for their valuable insight and guidance. To the RSR family, you have shown that through hard work and dedication, we can rise above any challenge and unite as a team to soar as an organisation.

This Annual Report is a clear reflection of the RSR’s devotion to improve railway safety and to reduce operational risks in the railway environment to as low as reasonably possible.

______________________________

Ms Tshepo KgareACTING CHIEF EXECUTIVE OFFICER




Statement of responsibility and confirmation of accuracy for the Annual Report

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

All information and amounts disclosed in the Annual Report are consistent with the Annual Financial Statements audited by the Auditor General.

The Annual Report is complete, accurate and is free from any omissions.

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

The Annual Financial Statements (Part E) have been prepared in accordance with the GRAP standards applicable to the public entity.

The accounting authority is responsible for the preparation of the Annual Financial Statements and the judgements made in this information.

The accounting authority is responsible for establishing and implementing a system of internal control by providing reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the Annual Financial Statements.

The external auditors are engaged to express an independent opinion on the Annual Financial Statements.

In our opinion, the Annual Report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the public entity for the financial year ended 31 March 2020.

Yours faithfully

___________________ _________________________________________ Ms Tshepo Kgare Mr Boy Johannes NobungaACTING CHIEF EXECUTIVE OFFICER CHAIRPERSON: RSR BOARDDate: 30 September 2020 Date: 30 September 2020



ANNUAL REPORT 2019/20 13 ANNUAL REPORT 2019/20 13



VisionZero occurrences.

MissionTo oversee and promote safe railway operations through appropriate support, monitoring and enforcement, guided by an enabling regulatory framework.

Values

Integrity and trust

We instil confidence in our stakeholders through quality, professional and efficient service delivery.

Transparency

We will openly communicate information.

Fairness & equity

We will ensure that we are consistent in applying policies and procedures and that we are impartial in treating all our stakeholders by ensuring that we communicate effectively to all our stakeholders.


Strategic overview



Respect and diversity

We recognise and acknowledge that the RSR is a non-racial equal opportunity employer with a multinational, multi-ethnic, multi-skilled and multi-cultural people. In doing so, we remain proud of our heritage while being consciously aware of our collective diversity and cultures. We, therefore, engage with and treat each other, our customers, as well as our work, with dignity and respect.

Speed of execution

We will make prompt decisions and take appropriate action informed by organisational priorities.

Innovation

We will create a conducive environment that allows for the sharing and implementation of new ideas in line with the goals of the RSR.


Strategic overview



CONSTITUTIONAL MANDATE

The Constitution identifies the legislative responsibilities of different levels of government regarding airports, roads, traffic management and public transport. Transport is a function that is legislated and executed at all levels of government. The implementation of transport functions at the national level takes place through public entities which are overseen by the Department of Transport.

The RSR is responsible for ensuring Compliance with chapter 2 and 3 of the Constitution of the Republic of South Africa.

Promotion of the rights of people in South Africa affirms the democratic values of human dignity, equality and freedom. The achievement of safer railways reinforces the values contained in the Bill of Rights.

The RSR observes and adheres to the principles of co-operative government and intergovernmental relations which is supported by its work on the rail reserve regulations and harmonisation of the Southern African Development Community (SADC) railways through common safety methods.

LEGISLATIVE AND POLICY MANDATES

Our railway safety functions are driven by legislation. We are accountable to Parliament and the public to:

• Provide for and promote safe railway operations; • Encourage the collaboration and participation of

interested and affected parties in improving railway safety;

• Recognise the prime responsibility and accountability of operators in ensuring the safety of railway operations;

• Facilitate a modern, flexible and efficient regulatory regime that ensures the continuing enhancement of safe railway operations; and

• Promote the harmonisation of the railway safety regime of the Republic with the objectives and requirements of SADC for the operation of railways.

Legislative mandate

The RSR was established in terms of the National Railway Safety Regulator Act No. 16 of 2002 as amended, to establish a national regulatory framework for South Africa and to monitor and enforce compliance in the rail sector. The primary legislative mandate of the RSR is to oversee and enforce safety performance by all railway operators in South Africa including those of neighbouring states whose rail operations enter South Africa. In terms of the Act, all operators are primarily responsible and accountable for ensuring the safety of their railway operations.

Other legislative mandates

The RSR is a statutory organisation and primarily derives its mandate from its constitutive legislation, the National Railway Safety Regulator Act No. 16 of 2002 as amended. Also, the RSR must comply with legislative prescripts that have an impact on its business/operations, including but not limited to the:

• Occupational Health and Safety Act, Act no. 85 of 1993; • Legal Succession to the South African Transport

Services Act no. 9 of 1989, as amended; • Public Finance Management Act, Act no. 1 of 1999, as

amended; • National Environmental Management Act no. 107 of

1988;• National Disaster Management Act no. 57 of 2002; • Promotion of Access to Information Act no. 2 of 2000; • Various labour legislation, including Section 189 of the

Labour Relations Act no. 66 of 1995, Basic Conditions

Constitutional and other mandates



of Employment Act no. 75 of 1997, Skills Development Act no. 97 of 1998, Employment Equity Act no. 55 of 1998;

• Protected Disclosures Act no. 26 of 2000; and • Promotion of Administrative Justice Act no. 3 of 2000.

Policy mandate

The RSR as a state entity is also governed and directed by various policies developed and approved by the South African government at varying spheres. The following are some of the policy mandates that guide the work of the RSR:

• The National Development Plan 2030 (NDP);

• The National Transport Master Plan 2050 (NATMAP);

• The National White Paper on Transport Policy, 1996;

• The New Growth Path Framework;

• Various national and international policies within the railway sector.

• National Government’s strategic outcomes

Alignment to the Medium-Term Strategic Framework

The Medium-Term Strategic Framework (MTSF) is defined as a statement of intent identifying the development challenges facing South Africa. It also outlines the medium-term strategy for improving living conditions and contributions to economic growth and prosperity. South Africa requires investment into an effective network of economic infrastructure aimed at supporting the country’s medium- and long-term economic and social objectives. This economic infrastructure is a precondition for providing basic services such as electricity, water, sanitation,

telecommunications and public transport, and it needs to be robust and extensive enough to meet industrial, commercial and household needs.

As expressed in our vision and mission statements, the RSR is committed to contributing towards the country’s medium- and long-term socio-economic objectives, with a specific focus on MTSF Outcome 6: An efficient, competitive and responsive economic infrastructure network. Therefore, the RSR’s strategic intent aims to ensure that the upgrading and expansion of the country’s rail network and fleet contribute to:• Improved safety management practices and

accountability by all industry stakeholders;• Sector-wide compliance with railway safety regulations

and standards;• Constructive engagements with industry and funders

to encourage investments in safer and user-friendly rail technologies;

• Safe railway behaviour of those directly interacting with the railways (operators, commuters, pedestrians and motorists); and

• Improved customer service.

Department of Transport Strategic Outcome-Oriented Goals

In line with the Department of Transport’s (DoT) Strategic Outcome-Oriented Goal 1, which aims to ensure an efficient and integrated infrastructure network that serves as a catalyst for social and economic development, the RSR will align its strategic goals and objectives to ensure that all rail industry activities are completed with safety as the main consideration.



Board of directors

Mr Christiaan Johan De Vos

Mr Tibor Szana

Dr Nomusa Zethu QuntaBoard Chairperson

Mr Andre Harrison

Mr Boy Johannes NobungaDeputy Chairperson

Mr Jan-David De VilliersMajor-General Willem Venter(Retired)

Ms Hilda Thamaga Thopola

Major - General Michael Motlhala

Ms Ntombizine Mbiza

Mr Mmuso SelalediActing Company Secretary

Ms Tshepo Kgare Acting Chief Executive Officer



Executive committee

Standing L-R: Mr Freddie Kgomari (Acting Chief Operations Officer), Mr Khayalethu Madlwabinga (Executive: Human Resources), Mr Regardt Gouws (Chief Financial Officer)Seated L-R: Mr Mmuso Selaledi (Executive: Risk and Strategy), Ms Malerato Kekana (Chief Audit Executive), Ms Tshepo Kgare (Acting Chief Executive Officer) and Ms Madelein Williams (Executive: Media and Communications)



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PART B: PERFORMANCE INFORMATION

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Auditor’s report: Predetermined objectives

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance by means of an audit conclusion. The audit conclusion is included in the report to management and contains material findings under the Predetermined Objectives heading in other legal and regulatory requirements section of the Auditor’s Report.

Refer to page 90 of the Auditors Report, published as Part E: Financial Information.

Situational analysisService Delivery EnvironmentAlignment to the apex priorities

The MTSF is government’s high-level strategic document to guide the five-year implementation and monitoring of the NDP 2030. The MTSF flows from the 2019 electoral mandate of the governing party and identifies the priorities to be undertaken over the 2019-2024 financial years to place the country on a positive trajectory towards the achievement of the 2030 vision. It sets targets for implementation of the priorities and interventions for the five-year period and states the outcomes and indicators to be monitored.

The seven apex priorities of the 6th Administration are:

• Transforming the economy to serve all South Africans and create jobs. • Investing in the capabilities of all the people through an education and skills revolution. • Advancing social transformation through the strengthening of the social wage.• Tackling the persistence of apartheid spatial development to build sustainable and safe human settlements, towns

and rural areas, and effective local government.• Advancing nation-building and social cohesion, and a safe South Africa for all.• Building a better Africa and world.• Renewing and building a capable, honest developmental state and a social compact.



The RSR aligned its Annual Performance Plan with the apex priorities of the 6th Administration by focusing on:

Priority 1: Transforming the economy to serve all South Africans and create jobs: Unemployment is a national emergency and the country must commit to reducing unemployment from 27.6 per cent to 14 per cent in the next five years, while focusing on a skilling and reskilling programme to equip 3,5 million young South Africans. Massive job creation is to be achieved on the back of the Industrial Strategy, Job Summit initiatives, Operation Phakisa, and the Private Public Growth Initiative.

Contribution: The RSR awarded a total value of R2 762 474 for external bursaries to 29 students to assist with the completion of their studies in the 2020 academic year. The organisation also awarded internal bursaries to nine staff members totalling R282 485.

Priority 4: Tackling the persistence of apartheid spatial development to build sustainable and safe human settlements, towns and rural areas, and effective local government.

The Regulator is in constant engagement with SALGA as a nodal point to municipalities. Through such engagements, the RSR has been included as a member of the Tshwane Rail Steering Committee and can influence the rail-safety agenda, particularly with regards to operations in the Tshwane area. This Committee is concerned with safety-related issues pertaining to rail operations in the Tshwane area from a municipal perspective. The RSR will endeavour to establish similar relationships with other municipalities, particularly those where safe railway operations are a concern for the Regulator.

Contribution: The RSR established solid relations with SALGA in the Gauteng and North-West provinces respectively. To this end, municipal stakeholders attended a workshop for rail active municipalities in the North West province where the RSR socialised the stakeholders on the Regulator’s mandate. The municipalities were also educated on their responsibilities relating to compliance as well as spatial planning, especially where the municipal developments are adjacent to the rail reserve and may have an impact on their safety permit. Emphasis was placed on the importance of consulting the RSR prior to undertaking any railway developments. Similar efforts were made to engage the Tshwane Oversight Committee on Roads and Transport. Furthermore, the RSR is engaging SALGA to plan a national conference with municipalities across the country. The RSR



will have an opportunity to address mayors and municipal managers on the challenges experienced in their respective municipalities. The conference is scheduled to take place in the new financial year.

Priority 5: Advance nation-building and social cohesion, and a safe South Africa for all:

The RSR is strengthening the rail regulatory framework through the crafting of determinations, protocols and guidelines. The aforementioned tools are aimed at building an industry safety risk profile to support critical risk mitigation decisions that will result in safer railway operations. These interventions include:

a. Occurrence Reporting Categories published: This will provide a structured representation of the causes and consequences of potential accidents arising from railway operations and maintenance, to allow for the determination of a risk profile of operators for focused mitigation activities and controls.

Contribution: The Occurrence Reporting Categories was published in March 2020 and outlines the mandatory notifiable railway occurrences to be managed by the operators. It also details the railway occurrences that must be reported to the Chief Executive Officer.

b. Industry-wide hazard log: To provide for a uniform, standardised and accurate reporting of all occurrences to the RSR.

Contribution: This target has been planned for in the 2020-25 reporting period. For this target to be achieved, it is important for the occurrence reporting categories to be published. The RSR will commence with the industry-wide hazard log during the 2020/21 FY.

c. Railway Management Maturity Model: This tool is used to assess and measure a railway operator’s ability to control safety risks, to help identify areas for improvement and provide a benchmark for year-on-year comparison. The model will enable the rail operator towards increased excellence in safety risk management.

Contribution: An assessment was conducted on Transnet Freight Rail (TFR), a division of Transnet SOC Ltd, and it was recommended that TFR review its approach to the implementation of the Safety Management System (SMS) with focus on execution, motoring and review.

d. Human Factor Management Capacity Building Framework: The Framework will enable operators to mitigate Human Factor Management (HFM) risks within their operations.



Contribution: Although the RSR was unable to develop the HFM Capacity Building Framework, the organisation conducted a study to determine the current population of employees who occupy safety-critical grade positions in train operations for effective oversight on vacancies. Although only a few railway operators participated in the study, the RSR managed to collect data from a sample of approximately 17 053 individuals performing safety-critical grades functions, nationally from Class A operators. More data is required to ensure a representative sample population which will allow the RSR to effectively monitor the status of safety-critical grades for the railway industry. Therefore, future data will be collected from all railway operators including the remaining class A, B and C operators.

e. Verbal Safety Communication Determination developed: This Determination will ensure that the correct communication protocols are observed between safety-critical staff during train authorisations and protocols, to reduce the risk of signals passed at danger (SPAD) and collisions.

Contribution: The Verbal Safety Critical Communication (VSCC) was published during March 2020 and was developed primarily to achieve uniform and seamless VSCC within the railway operations in South Africa. The railway industry has been conducting operational activities, including verbal communication under normal, abnormal, degraded modes of working and during emergencies. Non-adherence to VSCC has contributed to numerous railway occurrences, including collisions and SPAD. VSCC, therefore, is a crucial component of safe railway operations, and consequently, non-adherence

to it may lead to increased occurrences. This protocol outlines the minimum requirements for the management of VSCC, including the framework to be implemented for safety-related personnel in the execution of their operational activities. It seeks to explain the level of VSCC required for safety-related personnel within the railway industry in South Africa.

f. Interface Agreements Framework: The Framework aims to mitigate risks of occurrences associated with inter-operability between operators on the common network at the interface of railway operations.

Contribution: An analysis of the sample of the current interface agreement signed between Transnet and its counterparts were conducted. The analysis provided an understanding of the level of compliance with interface agreement regulatory requirements outlined by Transnet SOC Ltd. This is done to enhance the safety performance of operators through the provision of a framework which will assist the industry in concluding appropriate interface agreements. The objectives of the study were to:

• Conduct an assessment of the tools available to operators to manage interfaces and to assess what these require.

• Conduct a literature review on how the interfaces are managed within the railway industry in other countries.

• Assess Transnet’s revised proposed Interface Agreement Framework.

• Provide considerations to be made by the operators to develop and conclude compliant interface agreements.

g. Industry-organised labour forum: The RSR regularly engages with stakeholders in organised labour. Labour



stakeholder meetings with the two prominent trade unions in the rail industry i.e. the South African Transport and Allied Workers Union (SATAWU) and the United National Transport Union (UNTU) take place quarterly. The meetings are scheduled with the intent of ensuring that organised labour is informed of regulatory developments and to leverage unions as ambassadors of rail safety when they engage with their constituencies.

Contribution: The RSR had four labour Forum meetings during the year under review. The forum discussed safety pertinent matters within rail operations in the country. During these deliberations, the RSR was able to demystify factually incorrect perceptions of the role of the Regulator and set the record straight with members of the unions. The Forum assisted the RSR to acquire real-time rail safety information from members of the trade unions, who are either closely associated with the operators due to their membership base or are also employees of the major operators.

h. National Rail Communicators Forum: The RSR established a National Rail Communicators Forum, comprising of communicators from various rail stakeholders. The Forum is a platform for rail stakeholders to collaborate on a national basis. Several outreach initiatives take place across the country, with some being duplicated. The Forum, therefore, aims to bring like-minded stakeholders together to collaborate on such initiatives and in so doing, to reach a wider target audience.

Contribution: The RSR hosted three forum meetings with the National Rail Communicators Forum, where collective communications endeavours were discussed. The Forum agreed on one major campaign that was to be held in the fourth quarter. Considering this, arrangements were made for a safety awareness campaigns to be held on 31 March where the Deputy Minister of Transport was expected

to spearhead the initiative. Due to the outbreak of the COVID-19 pandemic and the subsequent announcement by the President of a 21-day national lockdown, the campaign was postponed. To ensure that railway safety remains a priority during these trying times, the RSR developed a social media campaign in collaboration with its Rail Communication Forum members which consists of members across the rail and transport sector. The team developed audio-visual material containing rail safety messaging which was distributed by means of different social media platforms.

Priority 6: Build a better Africa and world

The RSR is a member of the Southern African Railways Association (SARA), an association that aims to promote the harmonisation of the railway safety regime in the SADC railway operations. The Regulator plays a pivotal role in ensuring that RSR Standards are adopted at a regional level, thus ensuring interoperability among member states. RSR personnel also represent the RSR in various structures of the Association i.e. Board, EXCO and Working Committees.

Contribution: The RSR continues to be a member of SARA and participates actively in all structures of the Association. The Regulator also offers technical expertise where required, particularly on the adoption of RSR Standards within a SADC context. On an annual basis, the RSR participates in the SARA Conference, where it exhibits and present papers to the rail fraternity.

Additionally, the RSR is in conversation with the SADC Railways Sub-Sectoral Committee where a proposal was presented by the Committee to establish a Regional Railway Regulators Association. The RSR together with the Land Transport Regulatory Authority (LATRA) of Tanzania was subsequently tasked with the development of a concept note and a Terms of Reference for the establishment of the Association.



Organisational Environment

The 2019/20 FY commenced with the finalisation of a Section 189 of the Labour Relations Act, 66 of 1995 (Act No. 66 of 1995) that was instituted during the latter part of the 2018/19 FY. A new structure was implemented with the following results:

• A reduction in staff complement from 196 to 160 employees;

• A reduction in office accommodation from five to three buildings;

• A reduction in the fleet from 28 to 11 vehicles.

The organisation operated with significantly lower costs, such as a technology review revenue, business development revenue, cost of employment, goods and services and a reduction in office accommodation and fleet costs.

Notwithstanding the successful implementation of the new structure, the organisation managed to achieve a 100 per cent overall performance score at the end the 2018/19 FY. The RSR continued on this trajectory by achieving a 94 per cent performance score at the end of the 2019/20 FY. The organisation, however, failed to achievement one target namely, Competency guidelines and agreed workload planning established by 31 March 2020.

During November 2017, Ms Tshepo Kgare was appointed as the Acting Chief Executive Officer. Ms Kgare is currently still acting in the role and has provided excellent leadership to the organisation during extremely challenging times. The process of finalising the appointment of a Chief Executive Officer is envisaged to be completed during the 2020/21 FY.

Performance delivery

In line with international best practices regarding railway safety management, the RSR must guide the railway

industry towards excellence in the management of safety to reduce operational risks in the railway environment to as low as reasonably practical. The strategic aspirations of the RSR to achieve the reduction of risk are documented in the RSR Strategic Plan which sets out the specific strategic objectives to be achieved during this period.

While the RSR’s responsibilities are designed to protect the interests of rail users, the Regulator strives to be transparent in its work. Data and evidence must drive decisions; clear processes and governance must guide the delivery of the work. The RSR, as the enforcing authority of safety legislation on South Africa’s railways, plays an advisory and training role to other regulators and operators in the SADC region on various safety regulatory tools and techniques. The following functions were undertaken to ensure the successful execution of the RSR’s mandate:

• Issues and manages safety permits: The SMS and concomitant safety permit provide the legal interface between the RSR and railway operators. This relationship enables and promotes continuous improvement in safe railway operations. Annually, the RSR evaluates the Safety Improvement Plans and the Safety Management System Report (SMSR) submitted by operators, which outline directives and/or interventions to improve safety in the operational environment.

• Conducts inspections and audits: The RSR is mandated to provide safety oversight across the railway industry. This role is undertaken through various strategic initiatives such as conducting safety-related audits and inspections of operators’ activities. The key objectives of safety audits and inspections are to critically assess the safety management systems and processes of operators. These assessments provide in-depth knowledge and understanding of the interventions that are required to promote and attain safe rail operations.



• Conducts safety assessments: The RSR fulfils its safety oversight mandate on new railway works and technology developments by conducting safety assessments on the SMSR submitted by the operators. Furthermore, the RSR provide approvals on all lifecycle phases of railway projects to ensure that safety is not compromised in the revitalisation of the local rail industry. These regulatory safety assessments ensure that the impact of the intended changes is considered within the immediate environment of its application and from a systemic perspective encompassing the asset/ system life cycle.

• Investigates railway occurrences: To achieve safety improvement and a reduction of occurrences, the RSR conducts investigations of occurrences that have led to major loss including fatalities, injuries and damage to property to identify the root cause and to prevent recurrences. Operators are obligated to report all occurrences to the RSR to ensure that analysis and review of incidents and the causes thereof are consolidated to assist the Regulator in providing tools and strategic direction in addressing safe rail operations.

• Develops regulations, safety standards and regulatory prescripts: In line with sections 29, 30 and 50 of the Act, the RSR is mandated to develop regulations, safety standards and related regulatory prescripts which form an integral part of the regulatory regime adopted for the oversight and enforcement of safe railway operations.

• Issues notices of non-conformance and non-compliance: The RSR issues operators with such notices to indicate conditions within the operators’ system that are deemed to be sub-standard or not in compliance with regulatory prescripts that ensure safe rail operations in terms of the adopted regulatory regime and, continues to impose penalties for non-compliance

with the Act and safety standards adopted by the Board of Directors of the RSR.

• Supports and promotes occupational health and safety and security: The the RSR conduct investigations, audits and inspections to address occupational health and safety and security issues that impact the railway safety. Occupational health and safety legal requirements are included in the HFM Standard and are, therefore, continuously promoted during technical workshops conducted by the RSR.

• Co-operates with relevant organs of state to improve safety performance and oversight functions: In compliance with the Act, the RSR must conclude appropriate co-operative agreements with relevant state organs to give effect to co-operative government and inter-governmental relations as contemplated in Chapter 3 of the Constitution. To this end, the RSR has concluded 12 cooperative agreements, nine with various government departments and three with industry associations. The Memorandum of Understanding (MoU) with government departments aim to eradicate duplication where there is dual jurisdiction and promote collaboration. The agreements with industry associations aim to share best practice and maintain an interactive approach in enforcing compliance. The 12 agreements focus on different issues, while the common denominator is ensuring rail safety.

• Plays a leading role in the alignment of the railway safety regime of South Africa with those of SADC: The RSR plays a significant role in harmonising the rail safety regime within the SADC. The RSR, through SARA, conducts workshops on its South African standards with the vision of adapting the standards at SADC level once approved by the SARA Board.

• Conducts research: The RSR promotes and facilitates research in areas related to its strategic goals.



• Data management and analysis: In support of sections 37 and 39 of the Act, which requires that all occurrences be reported to the RSR and in turn, the RSR is required to establish the National Management Monitoring System (NIMS). In relation to risk identification and management as well as strategic and operational planning, the RSR must maintain an accurate data management system. The data must be reliable and analysed for risks regularly. This enables the RSR to accurately identify major safety-relevant risks that will require actions such as inspections, audits, investigations and awareness campaigns to increase the level of operational safety within the South African rail environment. The Annual State of Safety Report, which is tabled in Parliament, remains the highlight of the data management and analysis function and provides insight into the current state of rail safety, areas of concern as well as the RSR’s actions and activities towards addressing challenges and root causes of occurrences. To achieve its objectives as directed by the Act, the RSR may conduct several other activities relating to safe railway operations. This provision allows the RSR to go beyond that which is expressly contained in the Act to achieve its objectives.

Key policy developments and legislative changes

During the period under review, no changes were made to the policies or legislation that may have an impact on rail operations.



Strategic Outcome Oriented Goals

Strategic pillars Strategic outcomes

Goal statement

Strategic objectives

Triple E:Enforcement,education andengineering/human factors

1. Safer Railways To change from an adversarialindustry approach towardsa collaborative risk-basedapproach in mitigating therisks of railway occurrencesand thereby reducing thenumber of occurrences

1.1 Establishment of a common platform for regular engagement between the RSR and high-risk operators to agree on minimum safety objectives to be achieved by individual operators to ensure that high-risk railway operators meet or exceed their safety objectives.

1.2 Enhance the SMS by developing and implementing a Determination for a CSM-CA and a CSM-RA for railway operators to ensure that operational risk exposures are identified, analysed, prioritised and appropriately mitigated.

1.3 Introduce and phase in operational excellence with the major operators through the RM3. The RM3 will assist railway operators to achieve operational excellence through the effectiveness of their SMS.

1.4 Roll-out of a human factors management programme to all railway operators designed to: • Standardise CSM with all operators;• Determine acceptable vacancy rates within safety

critical grades;• Ensure effective workload planning for staff

involved in safety critical work; and• Safe systems of work.

1.5 Develop and implement a Determination for Verbal Safety Critical Communications. This strategic initiative will ensure that the correct communications protocols are observed between safety critical staff during train authorisations. The Determination will reduce the risk of SPADs and collisions during degraded mode.

1.6 Establish an industry work group on inter-operability and interface management. This strategic thrust must ensure safe inter-operability between operators on the common network and the review of all interface management agreements between operators addressing the operational risks at the common network and interface of railway operations.



Strategic pillars Strategic outcomes

Goal statement

Strategic objectives

Excellence 2. Sustainable Institutional growth and development

We strive for excellence byenriching our governanceprocesses and procedureswith applicable complianceframeworks and risk strategies.

2.1 Secure a sustainable operational financial base.2.2 Ensure performance excellence.2.3 Develop and implement an integrated IMS which can

enable the RSR to measure the effectiveness of the compliance monitoring initiatives.

Relevance 3. Improved stakeholder service

By providing a platformfor collaboration with allstakeholders and interestedparties, we will be recognisedas a leading safety regulatorby improving on the levels ofa w a r e n e s s among operators, commuters and the public.

3.1 Promote safe railway behaviour.3.2 Establish an industry stakeholder interest group on

infrastructure and rolling stock. This high-level strategic group shall ensure that all stakeholders are kept abreast on the roll-out of new infrastructure and rolling stock technology and investment programmes; improved maintenance strategies and universal access to ensure that rail safety considerations play a major role.

3.3 Implement a platform for regular engagement with organised labour, stakeholders and affected parties to share lessons learnt to further improve railway safety.

3.4 Establish a consultative railway forum for railway safety to serve as a platform for consultation, cooperation, collaboration and the exchange of information between the Regulator, safety permit holders, associations, other interested parties, and relevant organs of state.

3.5 Establish a level crossing elimination committee to decrease the number of level crossing occurrences by identifying areas of concern and initiate joint measures to address and reduce level crossing occurrences through a cooperative approach among stakeholders.



For the year under review the organisation performed as follows:

KPI no. Annual target Result1.1.1 Safety Performance agreements concluded all (4) high risk operators by 31 March 2020 Achieved

1.2.1 Safety risk model scope developed by 31 March 2020 Achieved

1.2.1.1 Occurrence reporting published by 31 March 2020 Achieved

1.3.1 CSM-RA tested with 3 Class A operators by 31 March 2020 Achieved

1.3.2 Railway Management Maturity assessment report for Transnet by RSR by 31 March 2020 Achieved

1.4.1 Safety critical grades assessment report by 31 March 2020 Achieved

1.4.1.1 Competency guidelines and agreed workload planning established by 31 March 2020 Not achieved

1.5.1 Determination on Verbal Safety Critical Communication published by 31 March 2020 Achieved

1.6.1 Interface agreement audit report by 31 March 2020 Achieved

2.1.1 Annual permit fee model submitted to DoT by 31 March 2020 Achieved

2.2.1 Unqualified audit with less findings by 31 March 2020 Achieved

2.3.1 Business requirements for the NIIMS developed by 31 March 2020 Achieved

3.1.1 22 Railway safety promotion initiatives conducted by 31 March 2020 Achieved

3.1.2 Survey on safe railway behaviour by 31 March 2020 Achieved

3.2.1 Annual Railway Safety Conference conducted by 31 March 2020 Achieved

3.3.1 4 Industry-organised labour forum discussions conducted by 31 March 2020 Achieved

Overall achievement 15/16 = 94 %

The table below depicts the comparison of the performance of the organisation from the 2015/16 to 2019/20 FY.

120%

100%

80%

60%

40%

20%

0%2015/16 2016/17 2017/18 2018/19 2019/20

Comparison of 2015/16 to 2019/20 Financial Year AnnualCumulative Performance Targets

90% 89%72%

100% 94%



Perfo

rman

ce in

form

atio

n by

pro

gram

me/

act

ivity

/ obj

ectiv

e

Outc

ome 1

: Ra

ilway

s are

safe

rNo

Objec

tive

NoKe

y pe

rform

ance

in

dica

tor

Actu

al ac

hiev

emen

t 20

18/19

Plan

ned

targ

et

2019

/20Ac

tual

achi

evem

ent

2019

/20

Devia

tion

from

pl

anne

d ta

rget

to

actu

al ac

hiev

emen

t fo

r 201

9/20

Com

men

t on

devia

tions

1.1To

ensu

re th

at ra

ilway

oper

ators

meet

or ex

ceed

the

ir safe

ty ob

jectiv

es

1.1.1

Monit

ored

co

mplia

nce w

ith se

t tar

gets

by in

dividu

al op

erato

r’s A

SIP

Safet

y Per

forma

nce

Agre

emen

ts se

t for

19 C

atego

ry A

Oper

ators

by 31

Ma

rch 20

19

Safet

y Per

forma

nce

agre

emen

ts co

nclud

ed

all (4

) high

risk

oper

ators

by 31

Mar

ch

2020

Achi

eved

Safet

y Per

forma

nce

agre

emen

ts co

nclud

ed

all (4

) high

risk

oper

ators

by 31

Mar

ch

2020

None

None

1.2Ind

ustry

safet

y risk

pr

ofilin

g tow

ards

inc

reas

ed cr

itical

risk m

itigati

on

decis

ions

1.2.1

Indus

try sa

fety r

isk

profi

le de

velop

edSa

fety r

isk

frame

work

deve

loped

thro

ugh

indus

try w

orkin

g co

mmitte

es by

31

March

2019

Safet

y risk

mod

el sc

ope d

evelo

ped b

y 31

March

2020

Achi

eved

Safet

y risk

mod

el sc

ope

deve

loped

by 31

Mar

ch

2020

None

None

1.2Ind

ustry

safet

y risk

pr

ofilin

g tow

ards

inc

reas

ed cr

itical

risk m

itigati

on

decis

ions

1.2.1.

1Ind

ustry

safet

y risk

pr

ofile

deve

loped

Draft

Dete

rmina

tion

for O

ccur

renc

e re

portin

g dev

elope

d for

publi

c com

ments

by

31 M

arch

2019

Occu

rrenc

e rep

ortin

g pu

blish

ed by

31 M

arch

20

20

Achi

eved

Occu

rrenc

e rep

ortin

g pu

blish

ed by

31 M

arch

20

20

None

None

1.3Ind

ustry

-cons

ulted

ris

k ass

essm

ent

tools

and

metho

dolog

ies

1.3.1

Comm

on sa

fety

Metho

ds de

velop

ed

and p

iloted

Fram

ewor

k for

Co

mmon

Safe

ty Me

thod f

or R

isk

Asse

ssme

nts

deve

loped

by 31

Ma

rch 20

19

CSM-

RA te

sted w

ith 3

Clas

s A O

pera

tors b

y 31

Mar

ch 20

20

Achi

eved

CSM-

RA te

sted w

ith 3

Clas

s A O

pera

tors b

y 31

Mar

ch 20

20

None

None



NoOb

jectiv

eNo

Key

perfo

rman

ce

indi

cato

r

Actu

al ac

hiev

emen

t 20

18/19

Plan

ned

targ

et

2019

/20Ac

tual

achi

evem

ent

2019

/20

Devia

tion

from

pl

anne

d ta

rget

to

actu

al ac

hiev

emen

t fo

r 201

9/20

Com

men

t on

devia

tions

1.3Ind

ustry

-cons

ulted

ris

k ass

essm

ent

tools

and

metho

dolog

ies

1.3.2

Imple

menta

tion o

f ra

ilway

man

agem

ent

matur

ity

asse

ssme

nts

Railw

ay

Mana

geme

nt Ma

turity

as

sess

ment

tool

adop

ted by

31

March

2019

Railw

ay M

anag

emen

t Ma

turity

asse

ssme

nt Re

port

for Tr

ansn

et by

RS

R by

31 M

arch

2020

Achi

eved

Railw

ay M

anag

emen

t Ma

turity

asse

ssme

nt Re

port

for Tr

ansn

et by

RS

R by

31 M

arch

2020

None

None

1.4De

velop

and

cond

uct a

HFM

Ca

pacit

y Buil

ding

prog

ramm

e aim

ed

at ad

dres

sing:

1. St

anda

rdise

d CM

S.

2. De

termi

ning

acce

ptable

va

canc

y rate

s wi

thin s

afety

critic

al gr

ades

.

3. En

sure

effec

tive

workl

oad

plann

ing fo

r sta

ff inv

olved

wi

th sa

fety

critic

al wo

rk.

1.4.1

HFM

Capa

city

Build

ing pr

ogra

mme

deve

loped

and

cond

ucted

at hi

gh

risk o

pera

tors

Indus

try ac

cepte

d fra

mewo

rks

deve

loped

to

addr

ess:

• Co

mpete

ncy

Mana

geme

nt

• Sa

fety-c

ritica

l va

canc

ies

• W

orklo

ad

plann

ing

Deve

loped

by 31

Ma

rch 20

19

Safet

y criti

cal g

rade

s as

sess

ment

repo

rt by

31

Mar

ch 20

20

Achi

eved

Safet

y criti

cal g

rade

s as

sess

ment

repo

rt by

31

Mar

ch 20

20

None

None



NoOb

jectiv

eNo

Key

perfo

rman

ce

indi

cato

r

Actu

al ac

hiev

emen

t 20

18/19

Plan

ned

targ

et

2019

/20Ac

tual

achi

evem

ent

2019

/20

Devia

tion

from

pl

anne

d ta

rget

to

actu

al ac

hiev

emen

t fo

r 201

9/20

Com

men

t on

devia

tions

1.3Ind

ustry

-cons

ulted

ris

k ass

essm

ent

tools

and

metho

dolog

ies

1.3.2

Imple

menta

tion o

f ra

ilway

man

agem

ent

matur

ity

asse

ssme

nts

Railw

ay

Mana

geme

nt Ma

turity

as

sess

ment

tool

adop

ted by

31

March

2019

Railw

ay M

anag

emen

t Ma

turity

asse

ssme

nt Re

port

for Tr

ansn

et by

RS

R by

31 M

arch

2020

Achi

eved

Railw

ay M

anag

emen

t Ma

turity

asse

ssme

nt Re

port

for Tr

ansn

et by

RS

R by

31 M

arch

2020

None

None

1.4De

velop

and

cond

uct a

HFM

Ca

pacit

y Buil

ding

prog

ramm

e aim

ed

at ad

dres

sing:

1. St

anda

rdise

d CM

S.

2. De

termi

ning

acce

ptable

va

canc

y rate

s wi

thin s

afety

critic

al gr

ades

.

3. En

sure

effec

tive

workl

oad

plann

ing fo

r sta

ff inv

olved

wi

th sa

fety

critic

al wo

rk.

1.4.1

HFM

Capa

city

Build

ing pr

ogra

mme

deve

loped

and

cond

ucted

at hi

gh

risk o

pera

tors

Indus

try ac

cepte

d fra

mewo

rks

deve

loped

to

addr

ess:

• Co

mpete

ncy

Mana

geme

nt

• Sa

fety-c

ritica

l va

canc

ies

• W

orklo

ad

plann

ing

Deve

loped

by 31

Ma

rch 20

19

Safet

y criti

cal g

rade

s as

sess

ment

repo

rt by

31

Mar

ch 20

20

Achi

eved

Safet

y criti

cal g

rade

s as

sess

ment

repo

rt by

31

Mar

ch 20

20

None

None

NoOb

jectiv

eNo

Key

perfo

rman

ce

indi

cato

r

Actu

al ac

hiev

emen

t 20

18/19

Plan

ned

targ

et

2019

/20Ac

tual

achi

evem

ent

2019

/20

Devia

tion

from

pl

anne

d ta

rget

to

actu

al ac

hiev

emen

t fo

r 201

9/20

Com

men

t on

devia

tions

1.4De

velop

and

cond

uct a

HFM

Ca

pacit

y Buil

ding

prog

ramm

e aim

ed

at ad

dres

sing:

1. St

anda

rdise

d CM

S.

2. De

termi

ning

acce

ptable

va

canc

y rate

s wi

thin s

afety

critic

al gr

ades

.

3. En

sure

effec

tive

workl

oad

plann

ing fo

r sta

ff inv

olved

wi

th sa

fety

critic

al wo

rk.

1.4.1.

1HF

M Ca

pacit

y Bu

ilding

prog

ramm

e de

velop

ed an

d co

nduc

ted at

high

ris

k ope

rator

s

Indus

try ac

cepte

d fra

mewo

rks

deve

loped

to

addr

ess:

• Co

mpete

ncy

Mana

geme

nt

• Sa

fety-c

ritica

l va

canc

ies

• W

orklo

ad

plann

ing

Deve

loped

by 31

Ma

rch 20

19

Comp

etenc

y guid

eline

s an

d agr

eed w

orklo

ad

plann

ing es

tablis

hed b

y 31

Mar

ch 20

20

Not a

chiev

edA

requ

est fo

r qu

otatio

ns w

as se

nt to

servi

ce pr

ovide

rs to

outso

urce

the

work.

Res

pond

ents

quote

d 6-1

2 mon

ths

instea

d of 1

Qua

rter.

None



NoOb

jectiv

eNo

Key

perfo

rman

ce

indi

cato

r

Actu

al ac

hiev

emen

t 20

18/19

Plan

ned

targ

et

2019

/20Ac

tual

achi

evem

ent

2019

/20

Devia

tion

from

pl

anne

d ta

rget

to

actu

al ac

hiev

emen

t fo

r 201

9/20

Com

men

t on

devia

tions

1.5De

velop

ed an

d im

pleme

nted

Deter

mina

tion

on V

erba

l Sa

fety C

ritica

l Co

mmun

icatio

n

1.5.1

Deter

mina

tion o

n Ve

rbal

Safet

y Criti

cal

Comm

unica

tion

deve

loped

Draft

Indu

stry

natio

nal p

rotoc

ol for

Ver

bal

Safet

y Criti

cal

Comm

unica

tion

publi

shed

for

comm

ents

by 31

Ma

rch 20

19

Deter

mina

tion o

n Ve

rbal

Safet

y Criti

cal

Comm

unica

tion

publi

shed

by 31

Mar

ch

2020

Achi

eved

Deter

mina

tion o

n Ve

rbal

Safet

y Criti

cal

Comm

unica

tion

publi

shed

by 31

Mar

ch

2020

None

None

1.6Int

er-o

pera

bility

co

ncer

ns id

entifi

ed

and a

ll inte

rface

ag

reem

ents

align

ed

with

the id

entifi

ed

oper

ation

al ris

k ex

posu

res

1.6.1

Inter

face a

gree

ments

ali

gned

with

op

erati

onal

risks

Inter

face a

gree

ment

frame

work

deve

loped

by 31

Ma

rch 20

19

Inter

face a

gree

ment

audit

repo

rt by

31

March

2020

Achi

eved

Inter

face a

gree

ment

audit

repo

rt by

31

March

2020

None

None




Strategy to overcome areas of underperformance

Target 1.4.1.1 - Competency guidelines and agreed workload planning established by 31 March 2020

Strategy: The target will be included in the Operational Plan of the relevant department for the 2020/21 financial year

Changes to planned targets

No Initial 2019/20 Annual target Revised 2019/20 Annual target1.1.1 Safety Performance agreements concluded with 4

Category A operators by 31 March 2020Safety Performance agreements concluded all (4) high risk operators by 31 March 2020

1.2.1 Occurrence reporting categories published by 31 March 2020

Safety risk model scope developed by 31 March 2020

1.2.1.1 Industry wide hazard log completed by 31 March 2020

Occurrence reporting published by 31 March 2020

Linking performance with budgets

In assessing the achievement of the outputs in comparison with the planned targets, the public entity must consider the linkages and the relation to the resources available to the public entity, particularly the financial resources. Therefore, the following financial information should be presented. The financial information must agree with the information in the Annual Financial Statements.




Objec

tive

NoKe

y Per

form

ance

In

dica

tor

2018

/1920

19/20

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

RR

RR

RR

To e

nsur

e tha

t ra

ilway

ope

rator

s me

et or

ex

ceed

the

ir sa

fety

objec

tives

.

1.1.1

Monit

ored

comp

lianc

e wi

th se

t tar

gets

by

indivi

dual

oper

ator’s

AS

IP

774 0

46

443 2

40

330,8

055 9

80 46

53 9

92 85

5 1 9

87 61

0

Indus

try

safet

y ris

k

profi

ling

towar

ds

incre

ased

cri

tical

risk

mitig

ation

decis

ions

1.2.1

Indus

try

safet

y ris

k pr

ofile

deve

loped

874 0

4651

9 340

35

4 705

514 7

18

146 2

53

368 4

65

Indus

try

safet

y ris

k

profi

ling

towar

ds

incre

ased

cri

tical

risk

mitig

ation

decis

ions

1.2.1.

1Ind

ustry

sa

fety

risk

profi

le de

velop

ed37

4 046

443 2

40

(69 1

95)

514 7

18

146 2

53

368 4

65

Indus

try co

nsult

ed ris

k ass

essm

ent

tools

and m

ethod

ologie

s20

18/19

Comm

on

safet

y Me

thods

de

velop

ed

and p

iloted

(CSM

-CA)

374 0

4644

3 240

(6

9 195

) -

--

Indus

try-co

nsult

ed ris

k ass

essm

ent

tools

and m

ethod

ologie

s1.3

.1Co

mmon

safet

y Me

thods

deve

loped

an

d pilo

ted

374 0

4644

3 240

(6

9 195

) 51

4 718

14

6 253

36

8 465

Indus

try-co

nsult

ed ris

k ass

essm

ent

tools

and m

ethod

ologie

s1.3

.2Im

pleme

ntatio

n of

railw

ay m

anag

emen

t ma

turity

asse

ssme

nts

374 0

4644

3 240

(69 1

95)

514 7

18

146 2

53

368 4

65



Objec

tive

NoKe

y Per

form

ance

In

dica

tor

2018

/1920

19/20

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

RR

RR

RR

Deve

lop an

d con

duct

a HFM

Ca

pacit

y Buil

ding p

rogr

amme

aim

ed at

addr

essin

g:

1. St

anda

rdise

d CMS

.

2. De

termi

ning a

ccep

table

vaca

ncy r

ates w

ithin

safet

y cri

tical

grad

es.

3. En

sure

effec

tive w

orklo

ad

plann

ing fo

r staf

f invo

lved w

ith

safet

y criti

cal w

ork.

1.4.1

HFM

Capa

city

Build

ing pr

ogra

mme

deve

loped

and

cond

ucted

at hi

gh ris

k op

erato

rs

1 274

046

443 2

40

830 8

0551

4 718

146 2

53

368 4

65

Deve

lop an

d con

duct

a HFM

Ca

pacit

y Buil

ding p

rogr

amme

aim

ed at

addr

essin

g:

1. St

anda

rdise

d CMS

.

2. De

termi

ning a

ccep

table

vaca

ncy r

ates w

ithin

safet

y cri

tical

grad

es.

3. En

sure

effec

tive w

orklo

ad

plann

ing fo

r staf

f invo

lved w

ith

safet

y criti

cal w

ork.

1.4.1.

1HF

M Ca

pacit

y Bu

ilding

prog

ramm

e de

velop

ed an

d co

nduc

ted at

high

risk

oper

ators

--

-11

9 481

41 34

4 78

137

Deve

loped

an

d im

pleme

nted

Deter

mina

tion

on

Verb

al Sa

fety

Critic

al Co

mmun

icatio

n

1.5.1

Deter

mina

tion o

n Ve

rbal

Safet

y Criti

cal

Comm

unica

tion

deve

loped

374 0

4644

3 240

(69 1

95)

514 7

1814

6 253

36

8 465

Inter

-ope

rabil

ity co

ncer

ns id

entifi

ed

and a

ll inter

face a

gree

ments

align

ed

with

the id

entifi

ed o

pera

tiona

l risk

ex

posu

res

1.6.1

Inter

face a

gree

ments

ali

gned

with

op

erati

onal

risks

1 183

307

443 2

4074

0 066

514 7

18

146 2

53

368 4

65



Outc

ome 2

: Su

stain

able

inst

itutio

nal g

rowt

h an

d de

velo

pmen

t

NoOb

jectiv

eNo

Key p

erfo

rman

ce

indi

cato

rAc

tual

achi

evem

ent

2018

/19Pl

anne

d ta

rget

20

19/20

Actu

al ac

hiev

emen

t 20

19/20

Devia

tion

from

pl

anne

d ta

rget

to

actu

al ac

hiev

emen

t fo

r 201

9/20

Com

men

t on

devia

tions

2.1To

secu

re

an ad

equa

te op

erati

onal

finan

cial b

ase

2.1.1

Prog

ress

mad

e in

revis

ing th

e per

mit fe

e mo

del d

evelo

ped i

n 20

14/15

Revis

ed pe

rmit f

ee m

odel

valid

ated a

nd fin

alise

d by

31 M

arch

2019

Annu

al pe

rmit f

ee

mode

l sub

mitte

d to

DoT

by 31

Mar

ch

2020

Achi

eved

Annu

al pe

rmit f

ee

mode

l sub

mitte

d to

DoT

by 31

Mar

ch

2020

None

None

2.2Cl

ean

admi

nistra

tion

2.2.1

Clea

n aud

itNe

w ind

icator

Unqu

alifie

d aud

it wi

th les

s find

ings b

y 31

Mar

ch 20

20

Achi

eved

Unqu

alifie

d aud

it wi

th les

s find

ings

by 31

Mar

ch 20

20

None

None

2.3To

mon

itor

and t

rack

the

effec

tiven

ess

of RS

R co

mplia

nce

initia

tives

2.3.1

New

Natio

nal In

tegra

ted

Infor

matio

n Man

agem

ent

Syste

m (N

IIMS)

build

IMS

scop

e com

pleted

by

31 M

arch

2019

Busin

ess

requ

ireme

nts fo

r the

NI

IMS

deve

loped

by

31 M

arch

2020

Achi

eved

Busin

ess

requ

ireme

nts

for th

e NIIM

S de

velop

ed by

31

March

2020

None

None



Strategy to overcome areas of under performance

All targets were achieved in Outcome 2.


No Initial 2019/20 Annual target Revised 2019/20 Annual target2.2.1 100% of all audit findings relating to the 2017/18

FY addressedUnqualified audit with less findings by 31 March 2020

2.3.1 Integrated IMS specification developed by 31 March 2020

Business requirements for the NIIMS developed by 31 March 2020


In assessing the achievement of the outputs in comparison to the planned targets, the public entity must consider the linkages and the relation to the resources available to the public entity, particularly the financial resources. Therefore, the following financial information should be presented. The financial information must agree with the information in the Annual Financial Statements.



Objec

tive

NoKe

y Per

form

ance

In

dica

tor

2018

/1920

19/20

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

RR

RR

RR

To se

cure

an ad

equa

te op

erati

onal

finan

cial

base

2.1.1

Prog

ress

mad

e in r

evisi

ng

the pe

rmit f

ee m

odel

deve

loped

in 20

14/15

374 0

4644

3 240

(69 1

95)

896 9

20 5

43 22

035

3 700

Clea

n adm

inistr

ation

2.2.1

Clea

n aud

it-

--

79 86

3 663

66 37

3 357

13 49

0 306

To e

nsur

e pe

rform

ance

ex

celle

nce

2018

/19Ye

ar-o

n-ye

ar

Servi

ce

Deliv

ery

Index

(S

DIX

grow

th)

6 124

275

12 71

5 108

(6

590 8

33)

--

-

To e

nsur

e pe

rform

ance

ex

celle

nce

2018

/19Ef

fectiv

e ma

nage

ment

of hu

man

and

finan

cial

reso

urce

s thr

ough

bu

dgeta

ry co

ntrol

and

gove

rnan

ce m

easu

res

67 23

3 953

23 51

3 903

43

720 0

50

--

-

To m

onito

r and

trac

k the

eff

ectiv

enes

s of

RSR

comp

lianc

e init

iative

s

2.3.1

New

Natio

nal In

tegra

ted

Infor

matio

n Man

agem

ent

Syste

m (N

IIMS)

build

5 554

190

12 68

2 137

(7

127 9

47)

12 76

7 206

5 909

403

6 857

803



Objec

tive

NoKe

y Per

form

ance

In

dica

tor

2018

/1920

19/20

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

Budg

etAc

tual

expe

nditu

reOv

er/u

nder

ex

pend

iture

RR

RR

RR

To se

cure

an ad

equa

te op

erati

onal

finan

cial

base

2.1.1

Prog

ress

mad

e in r

evisi

ng

the pe

rmit f

ee m

odel

deve

loped

in 20

14/15

374 0

4644

3 240

(69 1

95)

896 9

20 5

43 22

035

3 700

Clea

n adm

inistr

ation

2.2.1

Clea

n aud

it-

--

79 86

3 663

66 37

3 357

13 49

0 306

To e

nsur

e pe

rform

ance

ex

celle

nce

2018

/19Ye

ar-o

n-ye

ar

Servi

ce

Deliv

ery

Index

(S

DIX

grow

th)

6 124

275

12 71

5 108

(6

590 8

33)

--

-

To e

nsur

e pe

rform

ance

ex

celle

nce

2018

/19Ef

fectiv

e ma

nage

ment

of hu

man

and

finan

cial

reso

urce

s thr

ough

bu

dgeta

ry co

ntrol

and

gove

rnan

ce m

easu

res

67 23

3 953

23 51

3 903

43

720 0

50

--

-

To m

onito

r and

trac

k the

eff

ectiv

enes

s of

RSR

comp

lianc

e init

iative

s

2.3.1

New

Natio

nal In

tegra

ted

Infor

matio

n Man

agem

ent

Syste

m (N

IIMS)

build

5 554

190

12 68

2 137

(7

127 9

47)

12 76

7 206

5 909

403

6 857

803

Outc

ome 3

: Im

prov

ed S

take

hold

er S

ervic

e

NoOb

jectiv

eNo

Key p

erfo

rman

ce

indi

cato

rAc

tual

achi

evem

ent

2018

/19

Plan

ned

targ

et

2019

/20Ac

tual

achi

evem

ent

2019

/20De

viatio

n fro

m

plan

ned

targ

et to

ac

tual

achi

evem

ent

for 2

019/2

0

Com

men

t on

devia

tions

3.1To

pr

omote

sa

fe ra

ilway

beha

viour

3.1.1

Numb

er of

sa

fety p

romo

tion

initia

tives

co

nduc

ted

21 R

ailwa

y safe

ty pr

omoti

on in

itiativ

es

cond

ucted

by 31

Ma

rch 20

19

22 R

ailwa

y safe

ty pr

omoti

on in

itiativ

es

cond

ucted

by 31

Ma

rch 20

20

Achi

eved

23 R

ailwa

y safe

ty pr

omoti

on in

itiativ

es

cond

ucted

by 31

Mar

ch

2020

None

None

3.1To

pr

omote

sa

fe ra

ilway

beha

viour

3.1.2

Numb

er of

sa

fety p

romo

tion

initia

tives

co

nduc

ted

New

Indica

torSu

rvey o

n safe

ra

ilway

beha

viour

by

31 M

arch

2020

Achi

eved

Surve

y on s

afe ra

ilway

be

havio

ur by

31 M

arch

20

20

None

None

3.2To

prom

ote sa

fety

cons

idera

tion d

uring

ne

w inv

estm

ents

throu

gh an

nual

indus

try sa

fety

thema

tic in

terve

ntion

s

3.2.1

Annu

al ind

ustry

sa

fety t

hema

tic

Inter

venti

ons

cond

ucted

Annu

al ind

ustry

sa

fety t

hema

tic

inter

venti

on

cond

ucted

by 31

Ma

rch 20

19

Annu

al Ra

ilway

Sa

fety C

onfer

ence

co

nduc

ted by

31

March

2020

Achi

eved

Annu

al Ra

ilway

Safe

ty Co

nfere

nce c

ondu

cted

by 31

Mar

ch 20

20

None

None

3.3Re

gular

enga

geme

nt wi

th or

ganis

ed

labou

r and

inter

ested

pa

rties t

o enc

oura

ge

colla

bora

tion t

owar

ds

impr

oved

railw

ay

safet

y of e

mploy

ees,

comm

uters

and t

he

publi

c

3.3.1

Indu

stry-

orga

nised

lab

our

forum

im

pleme

nted

3 Ind

ustry

-or

ganis

ed

labou

r for

um

discu

ssion

s co

nduc

ted

by

31

March

2019

4 Ind

ustry

-or

ganis

ed la

bour

for

um di

scus

sions

co

nduc

ted by

31

March

2020

Achi

eved

4 Ind

ustry

-org

anise

d lab

our f

orum

dis

cuss

ions c

ondu

cted

by 31

Mar

ch 20

20

None

None



Strategy to overcome areas of underperformance

All targets were achieved in Outcome 3.


No Initial 2019/20 Annual target Revised 2019/20 Annual target

3.1.2 Survey on safe railway behaviour Survey on safe railway behaviour by 31 March 2020


In assessing the achievement of the outputs in comparison to the planned targets, the public entity must consider the linkages and the relation to the resources available to the public entity, particularly the financial resources. Therefore, the following financial information should be presented. The financial information must agree with the information in the Annual Financial Statements.



Objec

tive

NoKe

y Per

form

ance

Indi

cato

r20

18/19

2019

/20Bu

dget

Actu

al ex

pend

iture

Over

/und

er

expe

nditu

reBu

dget

Actu

al ex

pend

iture

Over

/und

er

expe

nditu

re

RR

RR

RR

To

prom

ote

safe

railw

ay

beha

viour

3.1.1

Numb

er o

f safe

ty pr

omoti

on

initia

tives

cond

ucted

2 559

082

2 595

640

(36 5

58)

2 476

375

1 306

260

1 170

115

To

prom

ote

safe

railw

ay

beha

viour

3.1.2

Numb

er o

f safe

ty pr

omoti

on

initia

tives

cond

ucted

--

-2 4

76 37

51 3

06 26

0 1 1

70 11

5

To

prom

ote

safet

y co

nside

ratio

n du

ring

new

inves

tmen

ts thr

ough

an

nual

indus

try

safet

y the

matic

int

erve

ntion

s

3.2.1

Annu

al ind

ustry

sa

fety

thema

tic

Inter

venti

ons

cond

ucted

669 0

8295

2 169

(2

83 08

7)

2 476

375

1 306

260

1 170

115

Regu

lar

enga

geme

nt wi

th or

ganis

ed

labou

r an

d int

eres

ted pa

rties t

o enc

oura

ge

colla

bora

tion

towar

ds

impr

oved

ra

ilway

sa

fety

of em

ploye

es,

comm

uters

and

the pu

blic

3.3.1

Indus

try-o

rgan

ised

labou

r for

um im

pleme

nted

669 0

82

95

2 169

(283

087)

2 4

76 37

51 3

06 26

0 1 1

70 11

5



Revenue collectionSources of revenue

2018/19 2019/20

Estimate Actual amount collected

Over/Under collection

Estimate Actual amount invoiced

Over/Under collection

Permit Fees 167 827 500 164 048 051 (3 779 449) 169 500 000 170 560 765 562 314

Investment Income 1 755 833 5 817 473 4 061 640 1 889 888 8 160 496 6 270 608

Grant Income 63 018 000 63 018 000 - 63 522 000 63 522 000 -

Total 232 601 333 232 883 524 282 191 234 911 888 242 243 261 6 832 922

2018/19 FY1. Safety Permits: The main contributor to the shortfall in permit fees was the reduction in permit fees for SADC operators who

disputed their permit fees. The RSR and SADC operators reached a settlement agreement which resulted in Mozambique Ports and Railways (CFM) and Botswana Rail’s permit fees reducing to R1 million (from R3.2 million) and R500 000 (from R1.2 million) respectively. Another contributing factor was the number of operators opting for a single legal entity permit.

2. Investment income: Large operators paid permit fees earlier than expected resulting in the organisation holding positive cash balances for longer. Another contributing factor was the cancellation of the regional office and vehicle lease contracts during the year which resulted in cost-savings. As part of its cash flow strategies, the RSR invests its surplus cash balances at the Corporation for Public Deposits which is held by the South African Reserve Bank.

2019/20 FY1. Safety Permits: Over-collection against the budget was mainly due to temporary permit applications being received during

the year. All temporary permits for 2019/20 were issued due to operators delaying the permit application assessments. These delays include changes in trading name, incomplete application on NIMS or partial submission of documents. A total of five Temporary Permits were issued during the 2019/20 financial year.

2. Investment income: The main reason for over-collection is that the RSR invests its surplus cash balances with the South African Reserve Bank to generate more interest. Another contributory factor can be attributed to large operators such as PRASA and TFR paying their permit fees before the permit expiry date which resulted in a bigger positive bank balance over a longer period. The delay in paying for the disputed accrued offices rental expenses as well as the general underspending during the financial year also contributed to the over-collection. The matter is currently awaiting deliberation by the courts and it is, therefore, not certain whether payment would be made or not.



The RSR’s revenue team is working tirelessly to collect all outstanding revenue. The team implements and ensures compliance with the RSR Revenue and Receivable Policy. The Policy stipulates all collection methods to be followed for receivables, and where possible, the team engages the Permit Management unit to trace all operators who are in arrears. Reconciliations are done monthly to highlight problem areas in order to address it speedily. The revenue team:

• Issue invoices once generated and make follow-ups;

• Issue reminders and letters of demand for debts outstanding for more than 30 days; and

• Refer debtors owing more than 60 days to the Legal Department to institute legal action.

Capital investment The RSR is a PFMA Schedule 3A Public Entity with the Department of Transport as its only shareholder. The RSR manages its assets in line with its Asset Management Policy. The RSR has not embarked on any infrastructure projects and did not close down or downgrade any facilities during the year.

No maintenance activities were undertaken during the year as the entity does not own significant infrastructure or moveable assets that require continuous maintenance. The RSR entered into new lease agreements for its Head Office, Regional Office (Gauteng), Coastal Regional Office (Cape Town) and Eastern Regional Office (Durban). The rental expenses associated with these new operating lease agreements are significantly lower than those incurred in previous years under the full facilities lease arrangements.

A significant portion of the RSR’s fixed assets at 31 March 2020 comprises of newly acquired assets. These acquisitions account for 82 per cent of the carrying amount of the RSR’s assets at 31 March 2020. The new acquisitions include motor vehicles (17%), office equipment (9%), computer equipment (8%), furniture (9%), leasehold improvements (55%) and intangible assets (2%). The disposals for the year comprised of old furniture and computer equipment that was scrapped and other items that were auctioned to RSR staff. A significant portion of these assets was fully depreciated. A few assets comprising of computer equipment were stolen during the financial year. A significant portion was stolen during a burglary at the RSR’s previous offices. These losses were reported to the South African Police Service and claimed from the insurer.

The RSR has an Asset Management unit within its Finance Department that is responsible for updating the asset register with all asset transactions such as receipts, movements, disposals, useful life assessments and other changes. The unit conducts asset verifications at least twice a year in terms of the RSR’s approved Asset Management Policy. The RSR has a Disposal Committee which deals with all the voluntary disposal of assets. The employees of the RSR are required to report any stolen assets to the South African Polices Services within 24 hours and to furnish the Asset Management unit with the case number to ensure that the unit updates the asset register. A significant portion of the RSR’s fixed assets at 31 March 2020 comprises of newly acquired assets during the 2019/20 financial year. The assets in good condition represent more than 82 per cent and the remaining 18 per cent represents assets in a fair condition.



PART C: GOVERNANCE



IntroductionCorporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King Report on Corporate Governance.

Parliament, the Executive and the Accounting Authority of the public entity are responsible for corporate governance.

Portfolio committees The Portfolio Committee on Transport (PCOT) visited the RSR offices on 08 October 2019. The Annual Report and State of Safety Report were presented to the PCOT. The organisation briefed the Committee on challenges encountered regarding compliance by the industry and the measures it has adopted to mitigate the challenges.

Executive authorityThe organisation submits all quarterly reports to the Executive Authority and the National Treasury (NT) in compliance with the NT frameworks. All quarterly reports for the 2019/20 FY were submitted within 30 days after the end of each quarter.

The accounting authority/board

Introduction

The Board is committed to ensuring that it complies with the letter and spirit of the legislative prescripts applicable to the Regulator.

The Board is the focal point of the organisation’s corporate governance system. Corporate governance being the policies, processes, structures and controls to be applied and adhered to within the organisation by all involved (Board of Directors, management, employees, auditors and service providers).

To the extent applicable and relevant to the RSR, the Board subscribes to the principles of good governance as set out in the King Report on Governance in South Africa, 2016 (King IV) and recognises these as fundamentally important to the success and continued sustainability of the organisation. Good governance, among others, ensures that resources and business activities throughout the organisation are focussed on attaining the objectives of the organisation. The Board is responsible and accountable for the public entity’s performance and strategic direction.

The role of the Board is as follows:• Exercise prudent control over the organisation and its

affairs; • Delegates the implementation and execution of the

organisation’s short, medium- and long-term strategy to management; and.

• Approve the policies and operational plans developed by management to give effect to the approved strategy.

Board Charter

The purpose of the Charter is to provide guidance to the Board of Directors in the discharge of their duties, responsibilities and to ensure consistent corporate governance practices as well as the culture within the organisation. The Charter is not intended to, and does not, replace any other document, legislation, regulation or law of general application that regulates or applies to the RSR and/or the Board. The Charter must be read in conjunction with the National Railway Safety Act No. 16 of 2002.



Com

posit

ion

of th

e Boa

rd

Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Dr N

omus

a Zeth

u Qu

ntaRS

R Bo

ard

Chair

perso

n01

/11/20

16•B

Adm

in (U

nizul)

•BCo

m Ho

ns (U

P)

•MC

om (U

P)

•MB

A (U

niver

sity o

f Ox

ford B

rook

es)

Certifi

cate

in Pu

blic

Secto

r Cor

pora

te Go

vern

ance

(UNI

SA)

•PH

D (W

its)

•B.

A Ho

nour

s in

Theo

logy f

rom

(Nor

th W

est U

niver

sity)

•St

rateg

ic Pl

annin

g

•St

rateg

y Dev

elopm

ent

•Bu

sines

s Plan

ning

Finan

cial a

nd M

anag

emen

t Ac

coun

ting

•Pe

rform

ance

Man

agem

ent

Macro

-eco

nomi

c Plan

ning

•Co

rpor

ate G

over

nanc

e

•Po

licy D

evelo

pmen

t

•Tr

aining

and D

evelo

pmen

t

•Co

mmiss

ioner

with

the

Inde

pend

ent

Comm

ission

for

Publi

c offic

er B

eare

rs in

the P

resid

ency

•Bo

ard o

f KZN

Tour

ism

•Ro

ad A

ccide

nt Fu

nd

•RT

IA

•De

partm

ent o

f Spo

rts

(mem

ber o

f Eas

tern

Cape

Dep

artm

ent o

f Ed

ucati

on A

RC,

Free

Stat

e De

velop

ment

Corp

orati

on A

RC

and D

epar

tmen

t of

Rura

l Dev

elopm

ent,

Agric

ultur

e and

Land

Af

fairs

Audit

Com

mitte

e: Lim

popo

Eco

nomi

c Cl

uster

Aud

it Co

mmitte

e (Ch

air)

09



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Mr B

oy Jo

hann

es

Nobu

nga

Boar

d Dep

uty

Chair

perso

n

01/11

/2016

•BC

om H

ons (

UWC)

•Di

p in P

ublic

Rela

tions

(IA

C)

•C

ert in

Eco

nomi

c an

d Pub

lic F

inanc

e (U

NISA

)

•Ad

vanc

ed D

ip in

Econ

omic

Polic

y (U

WC)

Gove

rnan

ce an

d Leg

islati

onRS

R De

puty

Chair

perso

n:

Mpum

alang

a Tou

rism

and P

arks

Age

ncy

N/A

07



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Ms H

ilda T

hopo

laBo

ard M

embe

r01

/11/20

16•

Maste

rs De

gree

in

Publi

c Hea

lth (M

PH)

in Oc

cupa

tiona

l Hy

giene

(WIT

S)

•Se

nior M

anag

emen

t De

velop

ment

in Bu

sines

s Ad

minis

tratio

n (S

MDP:

USB

)

•To

tal Q

uality

Ma

nage

ment

(UNI

SA)

•Hi

gher

Dipl

oma

Envir

onme

ntal H

ealth

: (T

UT)

•Hi

gher

Dipl

oma

Occu

patio

nal H

ealth

&

Safet

y Man

agem

ent:

(POT

CH U

NIV)

•Di

ploma

En

viron

menta

l Hea

lth

(TUT

)

•Int

erna

tiona

l NEB

OSH

Envir

onme

ntal

Mana

geme

nt (U

K)

•En

terpr

ise-W

ide R

isk

Mana

geme

nt (C

orpo

rate;

Op

erati

onal

and S

HE R

isk

Asse

ssme

nt, E

valua

tion

and C

ontro

l)

•En

viron

menta

l Hea

lth &

Ma

nage

ment

•Pu

blic H

ealth

, edu

catio

n an

d dev

elopm

ent

•Oc

cupa

tiona

l Hea

lth/

Hygie

ne &

Safe

ty

•SH

EQ (S

afety,

Hea

lth,

Envir

onme

nt an

d Qua

lity)

Mana

geme

nt Sy

stem

•De

sign,

Imple

menta

tion &

Mo

nitor

ing of

an In

tegra

ted

Healt

h & W

ellne

ss M

odel

•SH

EQ S

ystem

and L

egal

Comp

lianc

e Aud

it

•Co

nstru

ction

Con

tracto

r Sa

fety &

Man

agem

ent

•Sa

fety,

Healt

h, En

viron

menta

l Edu

catio

n an

d Tra

ining

• HPC

SA: H

I 004

2803

•SA

IOSH

: 253

2439

4

•Co

uncil

Mem

ber:

Natio

nal F

ores

t Ad

visor

y Cou

ncil

•Ek

urhu

leni H

ousin

g Co

mpan

y

•Ch

airpe

rson:

RSR

Safet

y Com

mitte

e

•Me

mber

: Hum

an

Reso

urce

and

Remu

nera

tion

Comm

ittee

06



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Mr A

ndre

Har

rison

Boar

d Mem

ber

01/11

/2013

•Ba

chelo

r of

Philo

soph

y in

Know

ledge

Ma

nage

ment

(Stel

lenbo

sch)

•Ce

rtifica

te in

Logis

tics

Mana

geme

nt (U

P)

•MB

A (U

CT)

•Na

tiona

l Dipl

oma f

or

Tech

nician

s (CP

UT)

Stra

tegy &

Stra

tegic

Mana

geme

nt

Oper

ation

s & Lo

gistic

s

Know

ledge

Man

agem

ent

•No

n-Ex

ecuti

ve: A

frica

Risin

g Lea

dersh

ip &

Mana

geme

nt Pr

actiti

oner

s Pty

Ltd;

•Me

mber

: Cha

rtere

d Ins

titute

of Lo

gistic

s an

d Tra

nspo

rt.

•Ins

titute

of Inf

orma

tion

Tech

nolog

y Pr

ofess

ionals

Sou

th Af

rica.

•Ins

titute

of Di

recto

rs in

South

ern A

frica

Huma

n Res

ource

an

d Rem

uner

ation

Co

mmitte

e

08



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Maj-G

en W

illem

Vente

r (Re

tired)

(S

OEG)

Boar

d Mem

ber

01/11

/2016

(re

-app

ointm

ent)

•Na

tiona

l High

er

Certifi

cate

Polic

e Ad

minis

tratio

n (UP

)•

Natio

nal D

iplom

a Po

lice A

dmini

strati

on

(Dep

t of E

duca

tion

•Ba

chelo

r of L

aw

(UNI

SA)

•Ba

ccala

ureu

s Pr

ocur

ation

s (UN

ISA)

•Ma

ster o

f Pub

lic

Admi

nistra

tion (

UP)

•Ce

rtifica

te Pu

blic

Relat

ions (

PRIS

A)

•Ac

adem

ic Ho

nora

ry Co

lours

(UP)

•Ex

ecuti

ve P

ublic

Ma

nage

ment

Deve

lopme

nt Pr

ogra

mme (

UP)

•Ma

jor E

vents

Sec

urity

(S

ecur

ity A

dviso

r)

•Ra

ilway

Raid

and R

apid

Polic

e

•Re

intro

ducti

on an

d de

velop

ment

of a p

olicin

g ca

pacit

y for

the r

ail

envir

onme

nt in

south

afr

ica.

•Ac

ting D

ivisio

nal

comm

ission

er vi

sible

polic

ing on

a ro

tation

al ba

sis

N/A

Memb

er: S

afety

Comm

ittee

10

Ms N

tombiz

ine M

biza

Boar

d Mem

ber

01/11

/2016

(re

-app

ointm

ent)

•Ba

chelo

r of L

aw

(Midd

lesex

Univ

ersit

y Un

ited K

ingdo

m) w

ith

Artic

les:

•BA

Inter

natio

nal

Relat

ions

•Ho

nour

s Inte

rnati

onal

Relat

ions

•La

w Di

ploma

cyN/

AMe

mber

: Aud

it and

Ri

sk an

d Hum

an

Reso

urce

and

Remu

nera

tion

Comm

ittee (

HRRC

)

10



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Mr Ja

n-Da

vid V

illier

sBo

ard M

embe

r11

/10/20

18•

Bacc

alaur

eus A

rtium

(Potc

hefst

room

Un

iversi

ty)

•B.

Com

– Fina

ncial

Ma

nage

ment

(UP)

•Ad

vanc

ed C

ertifi

cate

in Ta

x (UP

)

•Ce

rtifica

te pr

ogra

mme

in Bu

sines

s Ma

nage

ment

Proje

ct (W

ITS)

•Ra

il Poli

cy an

d Eco

nomi

c Re

gulat

ion

•Ra

il Infr

astru

cture

and

Indus

try D

evelo

pmen

t

Advis

or G

autra

in Ma

nage

ment

Agen

cyMe

mber

: Safe

ty Co

mmitte

e06

Mr T

ibor S

zana

Boar

d Mem

ber

01/11

/2016

(r

e-ap

point

ment)

•Na

tiona

l High

er

Diplo

ma (M

echa

nical

Engin

eerin

g): C

ape

Town

Tech

nikon

•Oc

cupa

tiona

l Hea

lth an

d Sa

fety

•Ins

pecti

ons

•Inv

estig

ation

s

•Qu

alific

ation

s in

Mech

anica

l Eng

ineer

ing

N/A

•Me

mber

: Safe

ty Co

mmitte

e

•Ex

terna

l: De

partm

ent o

f Em

ploym

ent a

nd

Labo

ur

•Ch

airpe

rson o

f the

Advis

ory C

ounc

il for

OH

S

•Me

mber

of th

e Bo

ard a

t the

Comp

ensa

tion F

und

•Me

mber

of th

e Inv

estm

ent

Comm

ittee

05



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Mr Ja

n-Da

vid V

illier

sBo

ard M

embe

r11

/10/20

18•

Bacc

alaur

eus A

rtium

(Potc

hefst

room

Un

iversi

ty)

•B.

Com

– Fina

ncial

Ma

nage

ment

(UP)

•Ad

vanc

ed C

ertifi

cate

in Ta

x (UP

)

•Ce

rtifica

te pr

ogra

mme

in Bu

sines

s Ma

nage

ment

Proje

ct (W

ITS)

•Ra

il Poli

cy an

d Eco

nomi

c Re

gulat

ion

•Ra

il Infr

astru

cture

and

Indus

try D

evelo

pmen

t

Advis

or G

autra

in Ma

nage

ment

Agen

cyMe

mber

: Safe

ty Co

mmitte

e06

Mr T

ibor S

zana

Boar

d Mem

ber

01/11

/2016

(r

e-ap

point

ment)

•Na

tiona

l High

er

Diplo

ma (M

echa

nical

Engin

eerin

g): C

ape

Town

Tech

nikon

•Oc

cupa

tiona

l Hea

lth an

d Sa

fety

•Ins

pecti

ons

•Inv

estig

ation

s

•Qu

alific

ation

s in

Mech

anica

l Eng

ineer

ing

N/A

•Me

mber

: Safe

ty Co

mmitte

e

•Ex

terna

l: De

partm

ent o

f Em

ploym

ent a

nd

Labo

ur

•Ch

airpe

rson o

f the

Advis

ory C

ounc

il for

OH

S

•Me

mber

of th

e Bo

ard a

t the

Comp

ensa

tion F

und

•Me

mber

of th

e Inv

estm

ent

Comm

ittee

05

Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Maj-G

en M

ichae

l Mo

tlhala

Boar

d mem

ber

01/11

/2016

•B-

Tech

Poli

cing (

TUT)

•Na

tiona

l High

er

Diplo

ma P

olicin

g (U

NISA

)

•Na

tiona

l Dipl

oma

Polic

e Adm

inistr

ation

(U

NISA

)

•Ex

ecuti

ve M

anag

emen

t an

d Lea

dersh

ip

•Ra

ilway

polic

ing

•Pa

rtner

ship

polic

ing

•Cr

ime p

reve

ntion

•Ta

ctica

l plan

ning a

nd

oper

ation

s

•Po

lice e

merg

ency

servi

ces

•Ma

jor

•Ev

ents

Plan

ning a

nd

Oper

ation

s

•Co

mmun

ity po

licing

•Jo

int pl

annin

g and

op

erati

ons

N/A

Memb

er: S

afety

Comm

ittee

06

Mr C

hris

De V

osBo

ard M

embe

r01

/11/20

16•

Certifi

cate:

Labo

ur

Relat

ions (

UP);

•Ad

vanc

ed La

bour

Law

Diplo

ma (R

AU);

•Ce

rtifica

te La

bour

Re

lation

s Tra

de

Union

s (UP

);

•Di

ploma

: Con

ciliat

ion

and M

ediat

ion

(CCM

A)

•Ra

il Ope

ratio

ns•

Railw

ay In

ciden

ts Inv

estig

ation

s•

Huma

n Rela

tions

•Ba

sic C

ondit

ions o

f Em

ploym

ent A

ct•

Labo

ur R

elatio

ns A

ct•

Act 8

5 Inv

estig

ation

s

N/A

Memb

er: H

uman

Re

sour

ce an

d Re

mune

ratio

n Co

mmitte

e

Memb

er: S

afety

Comm

ittee

10



Nam

eDe

signa

tion

(In

term

s of t

he

Publ

ic En

tity

Boar

d St

ruct

ure

Date

ap

poin

ted

Quali

ficat

ions

Area

of

expe

rtise

Boar

d Di

rect

orsh

ips

(List

the e

ntiti

es)

Othe

r Com

mitt

ees

or Ta

sk Te

ams (

e.g.:

Audi

t com

mitt

ee

/ Min

ister

ial ta

sk

team

)

No. o

f Me

etin

gs

atte

nded

Mrs I

rene

Dlam

iniBo

ard M

embe

r26

/04/20

19•

SAMT

RAC(

NOSA

);

•AS

HEP

(NOS

A);

•HI

RA (N

OSA)

;

•Ac

ciden

t inve

stiga

tion

(FOR

EFRO

NT)

•Oc

cupa

tiona

l Hea

lth an

d Sa

fety

Servi

ces S

ETA

(Sec

tor

Educ

ation

and T

raini

ng

Autho

rity)

Memb

er: H

uman

Re

sour

ce an

d Re

mune

ratio

n Co

mmitte

e

08

Ms Ts

hepo

Kga

reBo

ard M

embe

r•

Post

Grad

uate

Diplo

ma in

Traffi

c an

d Tra

nspo

rtatio

n (N

otting

ham

Tren

t Un

iversi

ty, U

K)

•Di

ploma

in R

oad

Safet

y (Lu

nd

Unive

rsity,

Swe

den)

•ND

ip: C

ivil

Engin

eerin

g (Va

al Tr

iangle

Tech

nikon

)

•Ce

rtifica

te: R

isk

Mana

geme

nt (U

CT)

•St

rateg

ic Le

ader

ship:

St

rateg

y For

mulat

ion an

d Ex

ecuti

on.

•Or

ganis

ation

al De

sign

and P

erfor

manc

e Ma

nage

ment.

•Ge

nera

l Man

agem

ent:

Oper

ation

s, Fin

ance

and

Huma

n Res

ource

s.

•Re

gulat

ory M

anag

emen

t: Co

mplia

nce.

•Co

rpor

ate G

over

nanc

e.

•Pr

oject/

Prog

ram

Mana

geme

nt.

•Po

licy D

evelo

pmen

t.

•Tr

ansp

ort M

anag

emen

t an

d Plan

ning.

N/A

Memb

er: H

uman

Re

sour

ces a

nd

Remu

nera

tion

Comm

ittee

Memb

er: S

afety

Comm

ittee

Memb

er: A

udit a

nd

Risk

Com

mitte

e

10



There are no alternate members of the Board.

The following Board members have served their maximum two terms as stated in the National Railway Safety Regulator Act. • Mr Andre Harrison• Maj-Gen Willem Venter (Retired) (SOEG)• Ms Ntombizine Mbiza• Mr Chris De Vos

Committees

Committee No. of meetings held

No. of members

Name of members

Audit and Risk Committee 16/04/2019 03 Prittish Dala (Chairperson)Siyakhula SimelaneNtombizine Mbiza

25/05/2019 03 Prittish Dala (Chairperson)Siyakhula SimelaneNtombizine Mbiza




07/12/2019 03 Prittish Dala (Chairperson)Siyakhula Simelane (absent)Ntombizine Mbiza

17/01/2020 03 Siyakhula Simelane (Chairperson)Prittish DalaNtombizine Mbiza

25/02/2020 03 Siyakhula Simelane (Chairperson)* Prittish DalaNtombizine Mbiza

*Resigned 28 February 2020




No. of members

Name of members

Human Resource and Remuneration Committee

12/04/2019 06 Andre Harrison (Chairperson)Hilda ThopolaIrene DlaminiChris De VosNtombizine MbizaTshepo Kgare

10/07/2019 05 Andre Harrison (Chairperson)Hilda Thopola (absent – International conference)Irene DlaminiChris De VosNtombizine MbizaTshepo Kgare

16/10/2019 03 Andre Harrison (Chairperson)Hilda Thopola (Absent)Irene Dlamini (Absent)Chris De VosNtombizine MbizaTshepo Kgare (absent – International conference)

13/11/2019 04 Andre Harrison (Chairperson)Hilda Thopola (Absent)Irene Dlamini (Absent)Chris De VosNtombizine MbizaTshepo Kgare

20/01/2020 05 Andre Harrison (Chairperson)Hilda Thopola (Absent)Irene DlaminiChris De VosNtombizine MbizaTshepo Kgare

07/02/2020 05 Andre Harrison (Chairperson)Hilda Thopola (Absent)Irene DlaminiChris De VosNtombizine MbizaTshepo Kgare




No. of members

Name of members

Safety Committee 10/04/2019 04 Hilda Thopola (Chairperson)Chris De VosWillem Venter Michael Motlhala (Absent)Tibor Szana (Absent)Tshepo Kgare

10/07/2019 06 Hilda Thopola (Chairperson)Chris De VosWillem Venter Michael MotlhalaTibor SzanaTshepo Kgare

19/08/2019 04 Hilda Thopola (Chairperson)Chris De VosWillem Venter Michael Motlhala (Absent)Tibor Szana (Absent)Jan-David Villiers (Absent)Tshepo Kgare

23/10/2019 05 Hilda Thopola (Chairperson)Chris De VosWillem Venter Michael MotlhalaTibor Szana (Absent)Jan-David de Villiers (Absent)Tshepo Kgare

23/01/2020 06 Hilda Thopola (Chairperson)Chris De VosWillem Venter Michael MotlhalaTibor Szana (Absent)Jan-David de VilliersTshepo Kgare



Remuneration of board members

How board members’ remuneration is determined

In terms of the National Treasury Circular on the service benefits package for office bearers of certain institutions, the remuneration of the Board and committee members are classified under category S. The Circular provides a schedule of pre-determined fees payable to board members on an annual basis. The Department of Transport annually confirms the rates prescribed in terms of the National Treasury Circular.

In addition, members of the Audit and Risk Committee are remunerated in terms of the rates prescribed by the South African Institute of Chartered Accountants (SAICA).

Name Emoluments Allowances Expenses Total

Dr. Nomusa Zethu Qunta (Chairperson) 340 904 8 400 16 365 365 669Mr. Boy Johannes Nobunga (Deputy Chairperson) 109 804 5 650 31 774 147 228Mr. Jan - David de Villiers 1 - - - -Mr. Christian Johan de Vos 248 427 5 650 21 046 275 123Mr. Andre Harrison 220 761 5 650 7 231 233 642Major - General Michael Monash Motlhala 3 - - - -Mr. Rendani Dlamini 128 853 5 400 - 134 253Ms. Ntombizine Mbiza 245 295 5 650 25 458 276 403Ms. Hilda Thamaga Thopola 183 234 5 650 21 041 209 925Major - General Willem Venter (Retired) 232 133 5 650 69 165 306 948Mr. Tibor Szana 2 - - - -

1 709 411 47 700 192 080 1 949 191

Company/board secretary The primary purpose of the role of the Company Secretary is to ensure that the RSR complies with standard financial and legal practices and maintains high standards of corporate governance. The role also ensures and manages corporate governance within the Board and the RSR in accordance with legislative prescripts and best practice. Furthermore, this role proactively manages the required stakeholder relations to ensure the effective functioning of the Board of Directors and its subcommittees and ensures compliance with good corporate governance and other legislative and statutory requirements.

1 Member from a specified office in the National Department of Transport - not remunerated. 2 Member delegated by the Minister of Labour - not remunerated. 3 Member delegated by the Minister of Safety and Security - not remunerated.



Risk managementResponsibilities of the Audit and Risk Committee

The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 51 (1) (a) (ii) of the Public Finance Management Act (PFMA) and the National Treasury Regulation 27.1. The Audit and Risk Committee has adopted formal terms of reference, the Audit and Risk Committee Charter and has regulated its affairs and discharged all its responsibilities in compliance with this Charter.

Integrated Risk Management

The Board is responsible for entrenching RSR-wide risk management governance through effective leadership. Management accounts to the Board for the effective integration of risk management into the daily operations and for the implementation and monitoring of the risk management process.

The Committee considers all risk matters, including emerging risks in the organisation and provides advice and guidance on the overall risk management system, with special attention placed on the risks that have been measured as above the acceptable tolerance levels of the organisation. The Audit and Risk Committee independently monitors the effectiveness of the risk management system and reports to the Board accordingly.

The RSR has implemented an integrated internal enterprise risk management strategy which identifies risks and opportunities on an ongoing basis. This strategy is underpinned by the following principles:

• A strong and solid risk culture is a critical pillar of good governance;

• Consideration of real and potential risks in decision-making processes;

• The acceptance that risk management is mandatory;

• Continuously monitoring the risk exposure as impacted by the changing internal and external environment;

• Acceptance that accountability for risk management cannot be deferred or shifted; and

• The importance of maintaining an appropriate balance between risk and control.

During the year under review, the RSR revised its risk management framework, Fraud and Corruption Framework, Whistle Blowing Policy and the Business Continuity Policy to augment the alignment to national and international best practices.

Governance and Risk Management

The Audit and Risk Committee is responsible for providing oversight of the risk management function. Management has designed and implemented controls to manage risks faced by the RSR. The Risk Management Unit reports to the Audit and Risk Committee on the management of risks and advises management continually on the best risk management practices. This include the monitoring of progress made on the implementation of future mitigation strategies to provide assurance that the RSR is effectively managing its risks to enhance performance.



The RSR EXCO, under the direction of the Board of Directors, use their knowledge of the organisation and the railway industry to formulate a five-year strategic plan. The strategic risks to the plan are determined by considering the effect of uncertainty on the strategic objectives in the strategic plan.

The Committee has reviewed the strategic, operational, project-specific risk registers, considered new and emerging risks and has satisfied itself of the risk-mitigating measures employed to ensure risks are within tolerable levels.

The RSR ensures progress in the management of risks through its risk monitoring activities. It is committed to improving its risk performance on an ongoing basis, where high-risk areas are targeted through focused resources and effort. Every choice the RSR makes in pursuit of its objectives has its risks and through day-to-day integration of risk management in decision making has resulted in improved organisational performance. The heat map below reflects the top ten (10) strategic risks in the RSR.

Top Strategic Risks

Negligible Minor Medium Serious Critical

Strategic Risk Heat Map5

4

3

2

1

0

23

45

68

7

1

Impact

Remote

Unlikely

Possible

Highly likely

Almost certain

Likelihood



Legend

No Outcome Risk1 Railways are safer Lack of independence

2 Sustainable institutional growth and development

Loss of key personnel

3 Sustainable institutional growth and development

Financial sustainability

4 Railways are safer Inaccurate and incomplete safety information

5 Railways are safer Loss of critical data

6 Improved stakeholder service Inadequate stakeholder buy-in and support

7 Railways are safer Rapid technological advancements

8 Railways are safer Excessive cost of regulation

Internal controls

The effectiveness of internal control

The system of controls within the RSR is designed to provide reasonable assurance that assets are safeguarded and that liabilities and working capital are properly managed in line with the PFMA and the protocol on corporate governance. This is achieved by a risk-based internal audit plan, Internal Audit assessing the adequacy of controls mitigating the risks and the Audit and Risk Committee monitoring the implementation of corrective actions.

From our review of the reports of the Internal Auditors, the Audit Report on the review of the Annual Financial Statements and the Management Report from the Auditor-General of South Africa (AGSA), it can be concluded that the system of internal control as applied over financial and non-financial matters and enterprise risk management at the RSR is satisfactory. The Committee has noted management’s commitment to addressing the lack of control effectiveness, where they exist. The Committee will be monitoring management’s progress in resolving these issues regularly.

Internal Audit and Audit CommitteesThe Internal Audit function is managed through a co-sourced model under the direction of the Chief Audit Executive. An inhouse team has been appointed and commenced in the third and fourth quarters respectively. The function has provided the RSR with value-added services to ensure that financial, compliance, environmental, operational and performance objectives are achieved. The Audit and Risk Committee has successfully approved and monitored the implementation of the 2019/20 Internal Audit Plan with 18 planned audit reviews which were as follows:



• Management of MOUs

• Board Governance

• Project Management

• Deviations Review

• Annual Financial Statements Review

• Reputation Management

• Supply Chain Management and Contract Management

• Finance Controls

• Risk Management

• Business Continuity Management

• NIMS

• Section 189

• OHS

• Information Technology Vulnerability

• Assets Management

• IT Governance

• Ethics

• Audits and Inspections

Key activities and objectives of the Audit Committee

The primary purpose of the Audit and Risk Committee is to assist the Board in fulfilling the oversight responsibility required in terms of the PFMA, Treasury Regulations and corporate governance and has authority to:

• Conduct or authorise investigations into any matters within its scope of responsibility;

• Access information, records and personnel as it requires to fulfil its responsibilities;• Request the attendance of any executive or employee at Committee meetings;• Conduct meetings with external auditors (Auditor-General) and internal auditors

as necessary;• Obtain advice from external parties as necessary;• Resolve any disagreements between management and the auditor regarding

financial reporting; and • Pre-approve all auditing and non-audit services.



Audit and Risk Committee members

Name Qualifications Internal or external

If internal, position in the public

entity

Date appointed

Date resigned

No. of meetings attended

Siyakhula Simelane

• B Comm. Accounting (University of KZN)

• Honours B Comm Accounting

• Chartered Accountant• MDP: B-BBEE (UNISA)

External No 01/02/2019 02/02/2020 06

Prittish Dala • Bachelor of Information and Technology (Bond University)

• Bachelor of Science (Computer Science) Honours (UJ)

• Master of Information Technology

• Doctorate Information Technology

External No 01/02/2019 n/a 08

Ntombizine Mbiza

• Bachelor of Law (Middlesex University United Kingdom) with Articles

• BA International Relations• Honours International

Relations

External No 01/11/2016 n/a 08

Compliance with laws and regulationsThe Board of Directors are responsible to ensure compliance with legislative, regulatory and best practice requirements, and are liable for the consequences of non-compliance. In discharging its duties of ensuring that the RSR complies with legislation the Board has committed that the Regulator shall conduct its business in accordance with the applicable regulatory requirements and ensure that appropriate policies and frameworks are committed to promote a culture of compliance within the RSR.

Subsequently, the Compliance unit was established to assist the Board in the management of compliance risks, by ensuring that all instances of non-compliance are adequately followed up and resolved. This enables the RSR to conduct its business activities efficiently and effectively.

Throughout the 19/20 FY, the RSR’s compliance monitoring was conducted whereby departmental heads provided controls and processes with which the RSR ensure compliance with the requirements of the relevant acts. These controls and processes were assessed for validity through corroboration of supporting evidence such as policies and reports.



Other efforts applied by the RSR to ensure compliance obligations were met include:

• Identifying, assessing and monitoring compliance with applicable regulatory requirements; and

• Development of a compliance policy for effective compliance processes to serve as a cornerstone in promoting the compliance culture within the organisation.

Continuous monitoring of the RSR’s compliance takes place quarterly and compliance reports are presented to the Board and the Audit and Risk Committee to ensure that the Regulator maintains acceptable levels of compliance with laws and legislation.

Compliance Policies

All policies developed during the year under review were subjected to alignment by oversight committees such as EXCO, Board Subcommittees and the Board to avoid conflict with laws and regulations that are relevant to the RSR.

During the year under review, the Board of Directors reviewed and approved 19 policies as listed below:

• Disciplinary Policy

• Employee Wellness Policy

• Grievance Policy

• Job Evaluation Policy

• Labour Relations Policy

• Leave Administration Policy

• Probation Policy

• Recruitment and Selection Policy

• Remuneration Policy

• Resettlement Policy

• Sexual Harassment Policy

• Restructuring Policy

• Performance Management Policy

• Declaration of Authority

• Supply Chain Management Policy

• Communications Policy

• Penalty Fee Policy

• Overtime and Standby Policy

• Framework of acceptable levels of materiality & significance

The RSR developed a policy matrix with the purpose of demonstrating how each item in a policy should be implemented in practice. The policy matrix will be used to track the implementation of policies.

The Audit and Risk Committee was satisfied that the RSR has complied with applicable laws and regulations governing the entity with a suggestion to develop a regulatory universe for the RSR.

Fraud and corruption The RSR has implemented a Fraud and Corruption Prevention Strategy as part of the overall Governance and Risk Management Strategy. The effectiveness of the Strategy is monitored on an ongoing basis. Management is responsible for the prevention of incidents and occurrences of fraud and corruption and does this through the design, implementation and monitoring of a sound system of internal controls. A risk assessment with a specific focus on fraud and corruption is conducted annually and monitoring and reporting are being done continually. Education and awareness of potential incidents of fraud and corruption are conducted regularly.

For the year under review, the emphasis was placed on fraud and corruption prevention awareness to ensure that staff members are aware of potential risk factors that could lead to fraud and corruption in the organisation and to promote compliance.



To promote fraud and corruption prevention, the organisational value of integrity and trust was prioritised by the introduction of a Whistle Blowing Policy that makes provision for employees to report (confidential disclosure) suspected fraud and corruption. Furthermore, the Committee is responsible for ensuring that all calls to the RSR’s Whistle Blowing Hotline, administered by the external independent service provider, are followed up. Based on an assessment of the information received, an investigation is initiated. The service provider provides a list and details of reported cases to the Audit and Risk Committee Chairperson monthly. No cases have been reported through the hotline during the period under review.

Minimising conflict of interest A conflict of interest is a situation in which a person or organisation is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. The RSR endeavours to mitigate conflict of interest by avoiding it.

The RSR is guided by its approved Code of Conduct and Ethics, as approved by the Board, to uphold the highest ethical standards, norms and certain professional behaviour. Every employee is expected to:• Declare financial interests at the beginning of every

financial year as required by the RSR Conditions of Service;

• Take personal responsibility for their actions and comply with all legal obligations, policies and procedures;

• Act honestly and in good faith;

• Perform their duties conscientiously and in the best interest of the RSR; and

• Exercise reasonable care and diligence in the performance of their duties.

Code of conduct

The purpose of the RSR’s Code of Conduct and Ethics is to:• Establish standards that would promote and

encourage ethical behaviour and decision-making by all RSR employees, Board members and stakeholders;

• Ensure that ethics and desirable business conduct are communicated as an integral part of the RSR’s corporate identity, culture and purpose;

• Ensure that a good ethical foundation informs the RSR’s policies, procedures, practices, conduct and business processes; and

• Relay a clear message that failure to live up to the desired ethics and conduct could undermine the RSR’s objectives and will not be tolerated.

The RSR deems contravention of this Code as a serious matter and those who violate the Code or similar policies will be subjected to disciplinary measures, which may include the termination of services. Disciplinary measures may also be imposed for conduct that is considered unethical or improper, even if the conduct is not specifically covered in the Code.

In all cases and where applicable, the RSR’s Employee Relations Policy, Disciplinary Code and Procedure and the National Railway Safety Regulator Act No. 16 of 2002 as amended, will be followed. Contraventions may also lead to civil action or criminal charges. Approval of any action not



compliant with the Code must be sought in advance and may only be granted by the CEO in consultation with the Board. Only the Board may grant waivers of this Code for directors and executive officers of RSR. When a waiver is granted, the Board shall ensure that appropriate controls are in place to protect the RSR and its stakeholders.

Health safety and environmental issuesThe management of Occupational Health and Safety (OHS) remains crucial and integral to the activities of the RSR. As an authority body for the railway industry in South Africa, the RSR continues to lead by example in matters relating to occupational health and safety, thereby prioritising the management of health and safety for its employees, contractors, visitors and any other stakeholder that may come into contact with the Regulator’s activities. Compliance to the applicable national OHS legislation and global best practices, therefore, remains a primary focus for the RSR.

The RSR further continues to support and ensure compliance to the OHS legislative framework, by facilitating the integration of these legislations into the Railway Safety Regulatory Framework. In an endeavour to fulfil its legal and moral obligations for the

provision of a safe work environment, the RSR has developed several relevant occupational health and safety policies to provide guidance and facilitate compliance to the applicable legislation. During the 2019/20 FY, the following milestones were achieved:

Policy development and implementation

To fulfil its legal and moral obligations for the provision of a safe work environment, the RSR has developed and implemented occupational health and safety policies during the year under review. These policies are aimed at providing guidance and facilitating compliance to the applicable legislation and include the following:

Occupational Health and Safety Policy

In support of the Regulator’s growth trajectory and the commitment to OHS management throughout all regional offices, the OHS Policy was reviewed and approved during the year under review. The RSR implemented this Policy throughout all regional offices, including continual engagements and communication with the RSR personnel, interested and affected parties.

This Policy was drafted and implemented in line with the Occupational Health and Safety Act No. 85 of 1993 as amended and its Regulations.



Substance Abuse Policy and Alcohol Testing Procedure

The Substance Abuse Policy was reviewed and implemented in support of the General Safety Regulations to the Occupational Health and Safety Act No. 85 of 1993 as amended, and in alignment with one of the regulatory tools, the Human Factors Management Standard, SANS 3000-4: 2011 which requires that railway operators manage the use of substances in workplace. The implementation of this Policy, therefore, enables the RSR as the Regulator to lead by example.

To give effect to this Policy, RSR personnel, visitors and contractors were exposed to random alcohol testing during the year under review. A total number of 22 sessions of alcohol testing was conducted across the RSR offices.

Smoking Policy

To encourage good health practices and in support of national health strategies to reduce illnesses attributable to tobacco smoking and to ensure the provision of a safe work environment, the RSR continues to monitor compliance to the Smoking Policy. The Policy was reviewed, approved and implemented during the year under review.

Emergency preparedness

Emergency simulation exercises were conducted across the RSR offices to test the effectiveness of the emergency plans and procedures. The emergency plans and procedures were found to be effective and were adhered to during the simulations.

OHS governance structuresOHS Committee

The RSR has established Occupational Health and Safety Committee structures at the RSR’s Head Office and the regional offices.

The purpose of the Occupational Health and Safety Committee is to initiate, develop, promote, maintain and review measures to ensure the health and safety of employees in the workplace. The Committee further ensures that health and safety matters are discussed at the correct level and escalated through proper channels to the Management of the RSR. The Committee held meetings as follows:

RSR office Planned meetings

Meetings held

Head Office 4 4

Eastern Region 4 4

Central Region 4 4

Coastal Region 4 4

To enhance and strengthen governance, the RSR Executives are responsible and accountable for the management of OHS risks in their respective areas of responsibility and appointed in terms of the OHS Act as 16.2 appointees. Additional appointments and training of Health and Safety representatives, Fire Marshals, First Aiders and Evacuation Marshals were conducted to ensure effective management of OHS. OHS committees were convened during the period under review in line with the Terms of Reference (TOR) of the Committee.



Response measure to COVID-19

Towards the end of the financial year, the COVID-19 (Coronavirus) pandemic reached South Africa; the RSR subsequently developed preventative measures to ensure that the organisation remain a safe working environment in line with the its COVID-19 response plan.

Conducted compliance audits

To guide operational excellence, compliance audits were conducted at all RSR offices to assess the level of compliance to minimum requirements of the Occupational Health and Safety Act No. 85 of 1993 as amended. Table 2 below, presents the level of compliance for all RSR offices over a period of three years.

Level of compliance

2017/18 2018/19 2019/20

89% 90% 94%

There were improvements in the level of compliance at all the RSR offices. Continuous monitoring is conducted to ensure full compliance with the Occupational Health and Safety Act.

Social responsibilityCell C Take A Girl Child to Work

The RSR hosted the Cell C Take A Girl Child to Work at the RSR’s Head Office in Gauteng during the period under review. The organisation hosted 15 girl learners from the Seshegong Secondary School from the nearby township of

Olievenhoutbosch. The learners were exposed to possible careers within the rail industry and the corporate world in general. They were afforded the opportunity to interview RSR employees about careers that interested them and they were reassured that opportunities are available for everyone, irrespective of gender. At the conclusion of the programme, learners were presented with certificates.

Zonnebloem NEST Senior School

The RSR’s Western Cape Regional Office partnered with PRASA to host 19 learners from the Zonnebloem NEST Senior School in Cape Town as part of the 2019 Cell C Take a Girl Child to Work programme. The school was selected following the death of a grade 10 learner who was struck by a train on route to school during April 2019. After listening to motivational talks from both the RSR and PRASA, the learners were treated to a site visit at the Metrorail Training Centre and Rolling Stock Depot where they were given first-hand experience of a day in the life of women in rail.

Mandela Day

The RSR celebrated Mandela Day with the Thembelenkosini Care Givers in Soweto. Donations in the form of food items and cleaning materials were collected from RSR staff members at the Head Office and the Gauteng Regional Office. The RSR donated a kitchen sink and other equipment that was highlighted as priority items that would assist the home in improving the quality of service it provides. On the day of the event, the RSR handed over the donated items and treated the staff and beneficiaries of the home to a meal.



Audit committee reportWe are pleased to present our report for the financial year ended 31 March 2020.

Audit Committee Responsibility

The Audit Committee has complied with its responsibilities arising from Section 51(1)(a)(ii) of the Public Finance Management Act and Treasury Regulation 27.1. The Audit Committee also 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 system of controls within the RSR is designed to provide reasonable assurance that assets are safeguarded and that liabilities and working capital are properly managed in line with the PFMA and the protocol on corporate governance. This is achieved by means of a risk-based internal audit plan, Internal Audit assessing the adequacy and effectiveness of controls mitigating the risks and the Audit and Risk Committee monitoring the implementation of corrective actions.

From the Committee’s review of the Internal Audit reports presented during the 2019/20 financial period, the 2019/20 Audit Report on the review of the Annual Financial Statements and the Management Report from the Auditor-General of South Africa (AGSA), it can be concluded that the system of internal control as applied over financial and non-financial matters and enterprise risk management and governance at the RSR is generally satisfactory. However, improvements are required within ICT, cyber security, SCM and contract management, and compliance monitoring. The Committee has noted management’s commitment to address the lack of control effectiveness, where they exist. The Committee will be monitoring management’s progress in resolving these issues on a regular basis.

The Committee reviewed and approved the internal audit charter for the year under review. The Committee reviewed and approved the three-year rolling plan, including the annual internal audit plan for the 2019/20 FY.

The approved internal audit plan for the 2019/20 FY consisted of 18 audits and two ad hoc audits. Seventeen of these audits were completed by 31 March 2020.



The following were areas of concern:

• SCM and Contract Management• Information Technology Vulnerability Assessment• National Information Management System• Directives and Penalties

The Committee evaluated the independence, effectiveness and performance of the internal audit function and compliance with its mandate.

In-year Management and Monthly/Quarterly Report

The public entity has submitted monthly and quarterly reports to the Executive Authority.

Evaluation of Financial Statements

The Committee reviewed the Annual Financial Statements prepared by the public entity.

Auditor’s Report

The Committee have reviewed the public entity’s implementation plan for audit issues raised in the prior year and were satisfied that the matters have been adequately resolved except the matters relating to SCM and contract management.

On a quarterly basis, the Audit and Risk Committee reviewed the RSR’s implementation plan of audit issues raised in the prior year. The Committee met with the AGSA to ensure that there were no unresolved issues that emanated from the regulatory audit. Corrective actions on the detailed findings raised by the AGSA will continue to be monitored by the Audit and Risk Committee. The Audit Committee concurs and accepts the conclusions of the AGSA on the Annual Financial Statements and believes that the audited Annual Financial Statements must be accepted and read together with the report of the AGSA.

Appreciation

The Audit and Risk Committee wishes to acknowledge the dedication and work performed by the Acting Chief Executive Officer, Management and the officials of the RSR. The Audit and Risk Committee wishes to express its appreciation to Management, the AGSA and the Internal Audit Department for the co-operation and information they have provided to enable the Committee to discharge its responsibilities.

______________________________________Ms Margaret Phiri CA (SA) CHAIRPERSON: AUDIT AND RISK COMMITTEE



B-BBEE compliance performance information

The following table has been completed in accordance with the compliance to the B-BBEE requirements of section 13(g)(1) of the Broad-Based Black Economic Empowerment Act of 2013 and as determined by the Department of Trade and Industry.

Name of sphere of government / Public entity / Organ of state:

The Railway Safety Regulator

Registration number (If applicable): Not Applicable

Physical address: Building 4, Waterfall Point Office Park, Cnr Waterfall and Woodmead Drive, Waterfall City, Midrand, 1685

Type of sphere of government / Public entity / Organ of state:

Regulation

Organisation industry / Sector Transportation sector

Has the sphere of government / Public entity / Organ of state applied any relevant Code of Good Practice (B-BBEE Certificate Levels 1 – 8) with regards to the following:

Criteria RSR Relevant Annexure

Determining qualification criteria for the issuing of licences, concessions or other authorisations in respect of economic activity in terms of any law

No The RSR has not set any qualification criteria for the issuing of operator permits

Developing and implementing a preferential procurement policy

No No criteria applied during the year

Determining qualification criteria for the sale of state-owned enterprises

No The RSR is a fully owned entity of the National Department of Transport

Developing criteria for entering into partnerships with the private sector

No No criteria have been set by the RSR

Determining criteria for the awarding of incentives, grants and investment schemes in support of Broad Based Black Economic Empowerment

No No incentives, grants and investment schemes were awarded by the RSR during the year

APPROVED BY:

________________________________________Mr Boy Johannes NobungaCHAIRPERSON: RSR BOARD



PART D: HUMAN RESOURCE MANAGEMENT



Introduction

The strategic role of the Human Resource function is aided by its operational capabilities to facilitate the acquisition and retention of human capital in the organisation through the provision of competitive remuneration and benefits The function ensures the provision of sound employee relations and wellness which contributes to the execution of the RSR’s mandate.

Implementation of PWC Investigation Report

The recommendations from the investigation report among others, required for disciplinary action to be instituted against those identified in the report as contraveners of RSR policies and good governance. Disciplinary action has been instituted accordingly and have been finalised in accordance with the Disciplinary Policy. While the majority of the disciplinary matters have been successfully resolved in favour of the RSR, some of the outcomes from the disciplinary processes have been referred to the CCMA. The RSR is attending to the remaining matters at the CCMA to ensure finality.

Implementation of the Organisational Structure

In the year under review, the revised approved organisational structure was successfully implemented and subsequently resulted in a Section 189 process. The process resulted in the retrenchment of five employees. The implementation of the structure in accordance with the approved criteria resulted in employees being confirmed, placed and offered

alternative positions with the remainder of the positions being filed in accordance with the Recruitment Policy. The RSR has further provided employees with the opportunity to upskill their qualifications to comply with the minimum requirements of the positions.

Institutional Governance

The improvement of efficiencies and the promotion of good governance has been key during this period. To ensure such efficiencies and good governance, various policies have been reviewed and subsequently approved by the Board. Such policies include the RSR Conditions of Services as they set the tone and foundation for the governance of conditions of employment for the RSR and its employees. Following the revision and approval of 12 policies in the previous financial period, there has been significant progress in the development of Standard Operating Procedures (SOP) to aid the effective implementation of the said approved policies.

Dispute Resolution and Management

Pursuant to the implementation of the revised structure, the RSR was inundated with grievances and CCMA referrals pertaining to the Section 189 process. Through commitment, diligence and employment of effective dispute resolution, the RSR has managed to resolve all the grievances and subsequently addressed all the CCMA matters pertaining to the implementation of the approved structure.



Human Resource Administration Management

The debt of the former CEO that related to the payment of legal matters in the amount of R153,000 have been factored into his leave provision and will be processed accordingly once all matters have been finalised. The talent management processes have ensured that the RSR maintains and exceeds the promotion of women as it has recorded a higher percentage of women at 50,3 per cent vs males at 49,7 per cent during the period under review. The updated Human Resources Information System has been implemented to bolster the governance and compliance of human resources, financial and labour related legislation and policies.

The Human Resources Department has revised its operational plan to further align it towards a proactive approach to help in talent management and development strategies; employee relations and wellness; rewards and recognition as well a enhanced employee engagement matters.

The HR Department has further undertook engagements through education on HR policies and processes to advance employee relations, employee wellness, performance management and employee development matters.

A learning organisation as well as a healthy human capital plays a pivotal role in meeting and exceeding the mandate and goals of the RSR.



Human resource oversight statistics

Personnel cost by programme/ activity/ objective Programme/activity/ objective

Total expenditure for the entity

(R)

Personnel expenditure

(R)

Personnel exp. as a % of total

expenditure (R)

No. of employees

Average personnel cost

per employee (R)OCEO 9 407 318 1 336 097 1% 2 668 048

COO - HO 3 621 956 3 465 063 2% 2 1 732 531

Systems & ICT 15 134 035 9 224 633 5% 12 768 719

Safety Permit Management

18 312 626 17 769 406 9% 14 1 269 243

Safety Management 11 789 739 10 881 516 5% 13 837 040

Coastal Region 9 774 503 8 886 091 4% 13 683 545

Central Region 19 100 889 18 589 244 9% 20 929 462

Eastern Region 9 722 213 9 405 544 5% 13 723 503

Company Secretary 5 016 587 1 457 475 1% 2 728 738

Legal Services 4 935 673 2 659 544 1% 4 664 886

CAE 3 773 541 2 994 442 1% 7 427 777

Risk and Strategy Management

12 540 121 9 998 701 5% 13 769 131

Finance 52 040 901 20 051 658 10% 34 589 755

Human Resources 13 379 352 8 640 069 4% 12 720 006

Media & Communications 13 832 049 8 607 009 4% 14 614 786

Total 202 381 504 133 966 493 66% 175 765 523



Personnel cost by salary bandLevel Personnel expenditure

(R)% of personnel

expenditure to total personnel cost (R)

No. of employees

Average personnel cost per employee

(R)Top Management 675 000 - 1 675 000

Senior Management 20 211 931 15% 13 1 554 764

Professional qualified 75 926 652 57% 76 999 035

Skilled 33 595 094 25% 67 501 419

Semi-skilled 3 557 816 3% 18 197 656

Unskilled - - - -

TOTAL 133 966 493 100% 175 765 523

Performance rewardsProgramme/activity/ objective

Performance rewards Personnel Expenditure (R)

% of performance rewards to total personnel cost (R)

Top Management - 675 000 -

Senior Management 1 482 728 20 211 931 7%

Professional qualified 4 346 519 75 926 652 6%

Skilled 1 685 876 33 595 094 5%

Semi-skilled 182 658 3 557 816 5%

Unskilled - - -

TOTAL 7 697 781 133 966 493 6%



Training costs Programme/activity/ objective

Personnel expenditure

(R)

Training expenditure

(R)

Training expenditure as a % of personnel cost

No. of employees

trained

Avg. training cost per

employeeInternships - - - - -

Staff training 23 452 659 1 110 842 5% 24 46 285

Bursaries 9 455 583 357 810 4% 14 25 558

TOTAL 32 908 242 1 468 652 4% 38 38 649

Employment and vacanciesProgramme/activity/Objective

No. of employees 2019/2020 Approved posts

2019/2020 vacancies

% of vacancies

OCEO 3 3 2 67%

COO 86 86 14 15%

Company Secretary 2 2 1 50%

Legal Services 4 4 1 25%

CAE 6 6 - -

Risk and Strategy Management 12 12 2 17%

Finance 39 39 5 13%

Human Resources 11 11 2 18%

Media & Communications 12 12 1 8%

Total 175 175 28 16%

The table detail the attempts made to fill the posts of senior management and highly skilled supervisors. It further explains why vacancies have remained unfilled for prolonged periods and the measures taken to successfully attract and retain staff.



Employment changesSalary Band Employment at

beginning of periodAppointments Terminations Employment

at end of the period

Top Management 1 - 1 -

Senior Management 12 5 3 10

Professional qualified 69 14 11 65

Skilled 61 10 9 58

Semi-skilled 18 1 4 14

Unskilled - - - -

Total 161 30 28 147

Information on changes in employment over the financial year. Turnover rates indicate trends in the employment profile of the public entity.

Reasons for staff leaving Reason Number % Of total no. of staff leavingResignation 18 64.3%

Retirement 1 3.6%

Dismissal 3 10.7%

Death - -

Voluntary Severance Packages 3 10.7%

Contract expiry 3 10.7%

Total 28 100%

Labour Relations: Misconduct and disciplinary actionNature of disciplinary action Number Verbal warning -

Written warning -

Final written warning -

Dismissal 3



Equity target and employment equity status Levels Male

African Coloured Indian WhiteCurrent Target Current Target Current Target Current Target

Top Management

- 1 - - - - - -

Senior Management

6 4 - 1 - - 1 1

Professional qualified

37 36 2 4 - 2 3 5

Skilled 20 19 - 2 - 2 - 3

Semi-skilled 4 5 - 1 - 1 - 1

Unskilled - - - - - - - -

TOTAL 67 65 2 8 - 5 4 10

Full implementation of the Employment Equity (EE) Plan should be achieved by 31 May 2024.

Levels FemaleAfrican Coloured Indian White

Current Target Current Target Current Target Current TargetTop Management

- 1 - - - - - -

Senior Management

3 3 3 - - - - 1

Professional qualified

20 23 3 3 - 3 - 3

Skilled 37 29 1 4 - 2 - 4

Semi-skilled 8 10 1 1 - 1 1 2

Unskilled - - - - - - - -

TOTAL 68 66 5 8 - 6 1 10



Levels Disabled staffMale Female

Current Target Current TargetTop Management - - - -

Senior Management 1 0 0 0

Professional qualified 0 1 0 1

Skilled 0 0 1 0

Semi-skilled - - - -

Unskilled 0 0 0 0

TOTAL 1 1 1 1



PART E: FINANCIAL INFORMATION



Index

90-93

94

95

96

97

98-99

100-111

112-141

89 Board members’ responsibilities and approval

Auditor - General Report

Statement of financial position

Statement of financial performance

Statement of changes in net assets

Cash Flow Statements

Statement of comparison of budget and actual amounts

Accounting Policies

Notes to the Annual Financial Statements



The members of the Board of the RSR are required by the Public Finance Management Act (Act No. 1 of 1999) to maintain adequate accounting records. The Board is also responsible for the content and integrity of the Annual Financial Statements and related financial information included in this report. It is the responsibility of the Board to ensure that the Annual Financial Statements fairly present the state of affairs of the RSR, the results of its operations and cash flows for the period that ended.

External Auditors had unrestricted acess to all the financial records and related data to express an independent opinion on the Annual Financial Statements.

The audited Annual Financial Statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice, including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The Annual Financial Statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgement and estimates.

The Board acknowledge that they are ultimately responsible for the system of internal financial control established by the RSR, and place considerable importance on maintaining a strong control environment. To enable the Board to meet these responsibilities, they set standards for internal control to reduce the risk of misstatement or errors in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the RSR. All RSR employees are required to maintain the highest ethical standards to ensure the RSR’s business is conducted in a manner that in all reasonable circumstances, is above reproach.

_________________________

Ms Tshepo KgareACTING CHIEF EXECUTIVE OFFICER

The focus of risk management in the RSR is, therefore, on identifying, assessing, managing and monitoring all known forms of risk across the RSR. While operating risk cannot be fully eliminated, the RSR endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Board is of the opinion, based on the assurance given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the Annual Financial Statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or errors.

The Board has reviewed and approved the budget of the RSR for the 2020/21 FY and in light of this review and the current financial position,are satisfied that the RSR has access to adequate resources to continue in operational existence for the foreseeable future.

Though the Board is primarily responsible for the financial affairs of the RSR, they are supported by the RSR’s Internal and External Auditors.

The External Auditors are responsible for independently reviewing and reporting on the RSR’s Annual Financial Statements. The Annual Financial Statements have been examined by the RSR’s External Auditors and their report is presented on page.

The Annual Financial Statements on page, which have been prepared on the going concern basis, were approved by the Board on 31 July 2020 and were signed on their behalf by:

________________________________________ Mr Boy Johannes Nobunga CHAIRPERSON: RSR BOARD

Board members’ responsibilities and approval



Auditor-General Report Report of the auditor-general to Parliament on the Railway Safety Regulator

Report on the audit of the financial statements

Opinion

1. I have audited the financial statements of the Railway Safety Regulator set out on pages 94 to 141, which comprise the statement of financial position as at 31 March 2020, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Railway Safety Regulator as at 31 March 2020, and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for opinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I am independent of the public entity in accordance with sections 290 and 291 of the Code of Ethics for Professional Accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA codes) as well as the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.

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

Responsibilities of the accounting authority for the financial statements

6. TheBoard of Directors, which constitutes the accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

7. In preparing the financial statements, the accounting authority is responsible for assessing the Railway Safety Regulator’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

8. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

9. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

Report on the audit of the annual performance report



Auditor-General Report

Introduction and scope

10. In accordance with the Public Audit Act of South Africa 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report on the usefulness and reliability of the reported performance information against predetermined objectives for the selected strategic outcome presented in the annual performance report. I performed procedures to identify material findings but not to gather evidence to express assurance.

11. My procedures address the usefulness and reliability of the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures do not examine whether the actions taken by the public entity enabled service delivery. My procedures also do not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

12. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected strategic outcome presented in the annual performance report of the public entity for the year ended 31 March 2020:

Strategic outcome Pages in the annual performance report

Strategic outcome 1: Railways are safer 33 – 36

13. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. I did not identify any material findings on the usefulness and reliability of the reported performance information for this strategic outcome:

•Strategic outcome 1: Railways are safer

Other matter

15. I draw attention to the matter below.

Achievement of planned targets

16. Refer to the annual performance report on pages 33 to 45 for information on the achievement of planned targets for the year and explanations provided for the achievement of targets.

Auditor-General Report Report of the auditor-general to Parliament on the Railway Safety Regulator

Report on the audit of the financial statements

Opinion

1. I have audited the financial statements of the Railway Safety Regulator set out on pages 94 to 141, which comprise the statement of financial position as at 31 March 2020, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Railway Safety Regulator as at 31 March 2020, and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for opinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report.

4. I am independent of the public entity in accordance with sections 290 and 291 of the Code of Ethics for Professional Accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA codes) as well as the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.

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

Responsibilities of the accounting authority for the financial statements

6. TheBoard of Directors, which constitutes the accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

7. In preparing the financial statements, the accounting authority is responsible for assessing the Railway Safety Regulator’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

8. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

9. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

Report on the audit of the annual performance report



Auditor-General Report

Introduction and scope

17. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the public entity’s compliance with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

18. The material findings on compliance with specific matters in key legislation are as follows:

Procurement and contract management

19. Bid documentation for procurement of commodities designated for local content and production, did not stipulate the minimum threshold for local production and content as required by the 2017 preferential procurement regulation 8(2). Similar non-compliance was also reported in the prior year.

Expenditure management

20. Effective and appropriate steps were not taken to prevent irregular expenditure amounting to R1 578 846 as disclosed in note 28 to the annual financial statements, as required by section 51(1)(b)(ii) of the PFMA.

21. The accounting authority is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and the selected strategic outcome presented in the annual performance report that has been specifically reported on in this auditor’s report.

22. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

23. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected strategic outcome presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

24. If based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact. I have nothing to report in this regard.

Internal control deficiencies

25. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matter reported below is limited to the significant internal control deficiencies that resulted in the findings on compliance with legislation included in this report.

26. Insufficient progress has been made by senior management in implementing measures and controls to ensure that irregular expenditure is prevented and that compliance with all supply chain legislation is enforced and closely monitored.

Other reports

27. I draw attention to the following engagements conducted by various parties which had, or could have, an impact on the matters reported in the public entity’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.

Investigation

28. The audit committee has commissioned an investigation by the National Treasury on reported allegations in terms of Treasury Regulation 27.1.9. The investigation is in progress.

Pretoria30 September 2020

Report on the audit of compliance with legislation

Other information



Annexure – Auditor-General’s responsibility for the audit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements and the procedures performed on reported performance information for the selected strategic outcome and on the public entity’s compliance with respect to the selected subject matters.

Financial statements2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the over-ride of internal control

• obtain an understanding of internal control relevant to the audit 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 public entity’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors, which constitutes the accounting authority

• conclude on the appropriateness of the board of directors, which constitutes the accounting authority’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt on the ability of the Railway Safety Regulator to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the mate-rial uncertainty or, if such disclosures are inadequate, to modify my opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause a public entity to cease operating as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and deter-mine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

Communication with those charged with governance3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and

significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, actions taken to eliminate threats or safeguards applied.



Annual Financial Statements Statement of financial position at 31 March 2020

Figures in Rand Note(s) 2020 2019Restated

AssetsCurrent AssetsReceivables from exchange transactions 3 7 666 303 2 291 363Receivables from non-exchange transactions 4 4 270 000 4 500 000Cash and cash equivalents 5 65 053 011 42 653 407

76 989 314 49 444 770

Non-Current AssetsProperty, plant and equipment 6 30 081 725 10 333 197Intangible assets 7 2 509 166 3 242 786

32 590 891 13 575 983Total Assets 109 580 205 63 020 753

LiabilitiesCurrent LiabilitiesFinance lease obligation 8 - 15 259Payables from exchange transactions 9 44 190 200 37 689 546Provisions 10 5 447 518 6 826 513

49 637 718 44 531 318Total Liabilities 49 637 718 44 531 318Net Assets 59 942 487 18 489 435Accumulated surplus 59 942 487 18 489 435



Statement of financial performance for the year ended 31 March 2020


Revenue

Revenue from exchange transactions

Safety permit fees 11 170 560 765 164 048 051Other revenue 14 606 540 1 409 317Technology audits 13 - 1 728 550Technical awareness workshop - 1 547 550Interest received 12 8 160 496 5 817 473Total revenue from exchange transactions 179 327 801 174 550 941

Revenue from non-exchange transactions

Administration grant 63 522 000 63 018 000Penalties 770 000 6 000 000Other income 214 755 198 314Total revenue from non-exchange transactions 64 506 755 69 216 314Total revenue 243 834 556 243 767 255

Expenditure

Employee related costs 15 (133 966 493) (155 563 889)Depreciation, amortisation and impairment (7 390 432) (23 278 849)Debt impairment and write - off 16 (1 838 877) 7 876 794Finance costs (403) (3 856)Loss on disposal of assets (297 203) (77 714)General expenses 17 (58 888 096) (53 427 148)Total expenditure (202 381 504) (224 474 662)Surplus for the year 41 453 052 19 292 593



Statement of changes in net assets for the year ended 31 March 2020

Figures in Rand Note(s) Accumulated surplus

Total net assets

Balance at 01 April 2018 (803 158) (803 158) Surplus for the year 19 292 593 19 292 593Total changes 19 292 593 19 292 593Opening balance as previously reported 18 685 227 18 685 227 Correction of errors 25 (195 792) (195 792)Balance at 01 April 2019 as restated 18 489 435 18 489 435 Surplus for the year 41 453 052 41 453 052Total changes 41 453 052 41 453 052Balance at 31 March 2020 59 942 487 59 942 487



Cash flow statement for the year ended 31 March 2020


Cash flows from operating activitiesReceiptsSale of goods and services 170 251 535 177 968 882Grants 63 522 000 63 018 000Interest income 8 160 496 5 817 473

241 934 031 246 804 355

PaymentsEmployee costs (134 927 876) (151 309 097)Suppliers (62 911 533) (61 811 995)Finance costs (403) (3 856)

(197 839 812) (213 124 948)Net cash flows from operating activities 18 44 094 219 33 679 407

Cash flows from investing activitiesPurchase of property, plant and equipment (21 421 891) (1 375 482)Proceeds from sale of property, plant and equipment 245 131 74 708Purchase of other intangible assets (502 596) -Net cash flows from investing activities (21 679 356) (1 300 774)

Cash flows from financing activitiesFinance lease payments (15 259) (51 672)

Net increase/(decrease) in cash and cash equivalents 22 399 604 32 326 961Cash and cash equivalents at the beginning of the year 42 653 407 10 326 446Cash and cash equivalents at the end of the year 5 65 053 011 42 653 407



Statement of comparison of budget and actual amounts for the year ended 31 March 2020

Budget on Cash BasisFigures in Rand Approved

budgetAdjustments Final

budget Actual

amounts on comparable

basis

Difference between final budget and

actual

Reference


Revenue

Revenue from exchange transactions

Safety permit fees 165 000 000 - 165 000 000 164 445 366 (554 634)Application fees 4 500 000 - 4 500 000 6 115 399 1 615 399 32Other revenue - - - 606 540 606 540 32Interest received-investment 1 889 888 - 1 889 888 8 160 496 6 270 608 32Total revenue from ex-change transactions

171 389 888 - 171 389 888 179 327 801 7 937 913

Revenue from non-exchange transactionsTransfer revenue

Administration grant 63 522 000 - 63 522 000 63 522 000 -Penalties - - - 770 000 770 000 32Other income - - - 214 755 214 755 32Total revenue from non- exchange transactions 63 522 000 - 63 522 000 64 506 755 984 755

Total revenue 234 911 888 - 234 911 888 243 834 556 8 922 668



Figures in Rand Approved budget

Adjustments Final budget

Actual amounts on comparable

basis

Difference between final budget and

actual

Reference

ExpenditureEmployee cost (147 839 741) 13 460 019 (134 379 722) (133 966 493) 413 229Non -executive directors (3 249 911) 769 000 (2 480 911) (2 481 650) (739)Depreciation and amortisation - - - (7 390 432) (7 390 432) 32Loss on disposal of assets - - - (297 203) (297 203) 32Finance costs - - - (403) (403)Office rental (21 501 970) 11 367 967 (10 134 003) (11 356 705) (1 222 702) 32Debt impairment and write-off - - - (1 838 876) (1 838 876) 32Repairs and maintenance (390 000) 297 381 (92 619) (344 996) (252 377) 32External audit fee (2 843 100) (549 454) (3 392 554) (3 392 554) -Consulting and professional fees (13 305 212) (17 032 732) (30 337 944) (13 421 391) 16 916 553 32General expenses (42 614 954) 3 636 212 (38 978 742) (27 890 801) 11 087 941 32Capital expenditure (3 167 000) (27 033 400) (30 200 400) - 30 200 400 32Total expenditure (234 911 888) (15 085 007) (249 996 895) (202 381 504) 47 615 391Surplus - (15 085 007) (15 085 007) 41 453 052 41 453 052Actual amount on comparable basis as presented in the budget and actual comparative statement

- (15 085 007) (15 085 007) 41 453 052 41 453 052

Statement of comparison of budget and actual amounts for the year ended 31 March 2020



Accounting Policies

1. Presentation of Financial Statements

The Financial Statements have been prepared in accordance with the Standards of Generally Recognised Accounting Prac-tice, issued by the Accounting Standards Board in accordance with Section 55 of the Public Finance Management Act No.01 of 1999.

These Annual Financial Statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified. They are presented in South African Rands.

In the absence of an issued and effective Standard of GRAP, ac-counting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

Assets, liabilities, revenues and expenses were not offset, ex-cept when offsetting is either required or permitted by a Stan-dard of GRAP.

A summary of significant accounting policies, that have been consistently applied in the preparation of these financial state-ments, is disclosed below.

Comparative information

When the presentation or classification of items in the Annu-al Financial Statement is amended, prior period comparative amounts are restated if material. The nature and reason for the reclassification is disclosed. Where the accounting errors have been identified in the current year, the correction is made retro-spectively as far as is practicable, and prior year comparatives are restated accordingly. Where there has been a change in ac-counting policy in the current year, the adjustment is made retro-spectively as far as practicable, and the prior year comparatives are restated accordingly.

Significant accounting judgements and estimates

In preparing the Annual Financial Statements, management is required to make estimates and assumptions that affect the amounts presented in the Annual Financial Statements and related disclosures. Use of available information and application of judgement is inherent in the formation of estimates. Significant judgements include the following:

Budget variance

Variance of 10% or more between budget and actual amounts is regarded as material. All material differences are explained.

Useful life assessment

In determining the useful life and residual values of each prop-erty, plant and equipment and intangible assets, management took the nature and condition of each asset type and the usage of assets into consideration.

The accounting policies are consistent with the previous period.

1 . 1 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when:

It is probable that future economic benefits or service potential associated with the item will flow to the RSR; and

The cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted to arrive at the cost.

When an asset is acquired through an on-exchange transaction, its cost is the fair value as at the date of acquisition.

When an item of property, plant and equipment is acquired in exchange for an on-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up.



Accounting Policies

When significant component in so far as an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Recognition of costs in the carrying amount of an item of property, plant and equipment*ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.The residual value will be applied if there is an intention to sell the asset at the end of its useful life.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful lifeFurniture and fixtures Straight line 10 - 20 yearsMotor vehicles Straight line 12 - 15 yearsOffice equipment Straight line 6 - 20 yearsIT equipment Straight line 6 - 12 yearsLeasehold improvements Straight line 5 -10 yearsLeased assets Straight line 3 - 6 years

The depreciation method used reflects the pattern in which the asset’s future economic benefits or service potential are expected to be consumed by the RSR. The depreciation method applied to an asset is reviewed at least at each reporting date and, If there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate.

At each reporting date, the RSR assesses whether there is any indication that its expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the RSR revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate or an error if it is deemed that the useful lives were assessed incorrectly.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

Assets which the RSR holds for rentals to others and subsequently routinely sell as part of the ordinary course of activities, are transferred to inventories when the rentals end and the assets are available-for-sale. Proceeds from the sale of these assets are recognised as revenue. All cash flows on these assets are included in cash flows from operating activities in the cash flow statement.



Accounting Policies

The RSR separately discloses expenditure to repair and maintain property, plant and equipment* in the notes to the Financial Statements.

The RSR discloses relevant information relating to assets under construction or development, in the notes to the Financial Statements (see note 6).

1 . 2 Intangible assets

An asset is identifiable if it is:Separable, i.e. is capable of being separated or divided

from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability, regardless of whether the entity intends to do so;or

Arises from binding arrangements(including rights from contracts), regardless of whether those rights are transferable or separable from the RSR or from other rights and obligations.

A binding arrangement describes contracts and other arrangements that confer similar rights and obligations to the parties as if it were in the form of a contract.

An intangible asset is recognised when:It is probable that the expected future economic benefits or

service potential that are attributable to the asset will flow to the RSR; and

The cost or fair value of the asset can be measured reliably.

The RSR assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

An intangible asset arising from development (or from the development phase of an internal project) is recognised when:

It is technically feasible to complete the asset so that it will be available for use or sale.

There is an intention to complete and use or sell it. There is an ability to use or sell it. It will generate probable future economic benefits or

service potential. There are available technical, financial and other

resources to complete the development and to use or sell the asset;and

The expenditure attributable to the asset during its development can be measured reliably.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite, is an indicator that the asset may be impaired. As a result, the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Internally generated goodwill is not recognised as an intangible asset.



Accounting Policies

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Depreciation method Average useful life

Computer software Straight line 3 - 8 years

The RSR discloses relevant information relating to assets under construction or development, in the notes to the Financial Statements (see note 6).

1 . 3 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one RSR and a financial liability or a residual interest of another RSR.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

Credit risk is the risk that one party, to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Derecognition is the-removal of a previously recognised financial asset or financial liability from an RSR’s statement of financial position.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.

A financial asset is: Cash; Residual interest of another entity;or A contractual right to:

- receive cash or another financial asset from another entity;or- exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the RSR.

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment in accordance with the original or modified terms of a debt instrument.

A financial liability is any liability that is a contractual obligation to: Deliver cash or another financial asset to another entity; or Exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the RSR.

Liquidity risk is the risk encountered by the RSR in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Loans payable are financial liabilities, other than short-term payables on normal credit terms.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.



Accounting PoliciesInitial recognitionThe RSR recognises a financial asset or a financial liability in its statement of financial position when it becomes a party to the contractual provisions of the instrument. The RSR recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilitiesThe RSR measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. The RSR measures a financial asset and financial liability initially at its fair value.

Subsequent measurement of financial assets and financial liabilitiesThe RSR measures all financial assets and financial liabilities after initial recognition at amortised cost.All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Gains and lossesFor financial assets and financial liabilities measured at amortised cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assetsRSR assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Financial assets measured at amortised cost:If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced directly or through the use of an allowance account. The amount of the loss is recognised in surplus or deficit. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the

previously recognised impairment loss is reversed directly or by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

1.4 Statutory receivables

IdentificationStatutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another entity in cash or another financial asset.

Carrying amount is the amount at which an asset is recognised in the statement of financial position.

The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised.

Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations or similar means.

The transaction amount (for purposes of this Standard) for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means.

RecognitionThe RSR recognises statutory receivables as follows: If the transaction is an exchange transaction, using the

policy on Revenue from exchange transactions; If the transaction is a non-exchange transaction, using the

policy on Revenue from non-exchange transactions(taxes and transfers);or

If the transaction is not within the scope of the policies listed in the above or another Standard of GRAP, the receivable is recognised when the definition of an asset is met and, when it is probable that the future economic benefits or service potential associated with the asset will flow to the RSR and the transaction amount can be measured reliably.

Initial measurementThe RSR initially measures statutory receivables at their transaction amount.



Subsequent measurementThe RSR measures statutory receivables after initial recognition using the cost method. Under the cost method, the initial measurement of the receivable is changed subsequent to initial recognition to reflect any:

Interest or other charges that may have accrued on the receivable (where applicable); Impairment losses;and Amounts derecognised.

Derecognition

The RSR derecognises a statutory receivable, or a part thereof, when:

The rights to the cash flows from the receivable are settled, expire or are waived;

The RSR transfers to another party substantially all of the risks and rewards of ownership of the receivable; or

The RSR, despite having retained some significant risks and rewards of ownership of the receivable, has transferred control of the receivable to another party and the other party has the practical ability to sell the receivable in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, theRSR:- derecognise the receivable;and- recognise separately any rights and obligations

created or retained in the transfer.

The carrying amounts of any statutory receivables transferred are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. The RSR considers whether any newly created rightsand obligations are within the scope of the Standard of GRAP on Financial Instruments or another Standard of GRAP. Any difference between the consideration received and the amounts derecognised and, those amounts recognised, are recognised in surplus or deficit in the period of the transfer.

1 . 5 Taxation

Income taxThe RSR has obtained income tax exemption from the Commissioner of the South African Revenue Services under Section 10(i) (cA) (1) of the Income Tax Act, 1962 as amended.

Value Added TaxThe RSR is exempt from the Value Added Tax.

Accounting Policies

1 . 6 LeasesA lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the RSR assesses the classification of each element separately.

Finance leases-lesseeFinance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the RSR’s incremental borrowing rate if it is impractical to determine the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.The RSR’s increantal borrowing rate is the prime interest rate.

Any contingent rents are expensed in the period in which they are incurred.

The present value of the lease is considered to amount to “substantially all of the fair value” when it exceeds 95% of the fair value of the leased assets.

Operating leases - lesseeOperating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

1 . 7 Impairment of cash-generating assetsCash-generating assets are assets used with the objective of generating a commercial return. A commercial return means positive cash flows are expected to be significantly higher than the cost of the asset.



Accounting Policies

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

The carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses.

A cash-generating unit is the smallest identifiable group of assets used with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

The recoverable amount of an asset or a cash-generating unit is

the higher of its fair value less costs to sell and its value in use.

Useful life is either: The period of time over which an asset is expected to be

used by the RSR;or The number of production or similar units expected to be

obtained from the asset by theRSR.

Judgements made by management in applying the criteria to designate assets as cash-generating assets or non-cash- generating assets, are as follows:

IdentificationWhen the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The RSR assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the RSR estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the RSR also tests a cash-generating intangible asset with an indefinite useful life, or a cash-generating intangible asset not yet available for use for impairment annually by comparing itscarrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

RSR does not have cash - generating assets.

Value in useValue in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life.

When estimating the value in use of an asset, the RSR estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and the RSR applies the appropriate discount rate to those future cash flows.

1. 8 Impairment of non-cash-generating assetsCash-generating assets are assets used with the objective of generating a commercial return. Commercial return means that positive cash flows are expected to be significantly higher than the cost of the asset.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets managed with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.



Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use.

Useful life is either: The period of time over which an asset is expected to

be used by the RSR;or The number of production or similar units expected to

be obtained from the asset by the RSR.

Judgements made by management in applying the criteria to designate assets as non-cash-generating assets or cash- generating assets, are as follows:

IdentificationWhen the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

At each reporting date, the RSR assesses whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the RSR estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the RSR also tests a non-cash-generating intangible asset with an indefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in useThe value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service potential.

Accounting Policies

The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach:

Recognition and measurementIf the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

Any impairment loss of a revalued non-cash-generating asset is treated as a revaluation decrease.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset towhich it relates, the RSR recognises a liability only to the extent that is a requirement in the Standards of GRAP.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of an impairment lossThe RSR assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the RSR estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.



Accounting Policies

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount,less its residual value(if any),on a systematic basis over its remaining useful life.

1 . 9 Share capital / contributed capitalAn equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

1 . 1 0 Employee benefits

Short-term employee benefitsShort-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within 12 months after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as: Wages, salaries and social security contributions; Short-term compensated absences (such as paid annual leave and paid sick leave) for which the compensation for the

absences is due to be settled within 12 months after the end of the reporting period in which the employees render the related employee service;

Bonus,incentiveandperformancerelatedpaymentspayablewithin12monthsaftertheendofthereportingperiodin which the employees render the related service; and

Non-monetary benefits (for example, medical care, and free or subsidised goodsor services such as housing,cars and cellphones) for current employees.

When an employee has rendered service to the RSR during a reporting period, the RSR recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:

As a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the RSR recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

As an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense because the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The RSR measure the expected cost of accumulating compensated absences as the additional amount that the RSR expects to pay as a result of the un used entitlement that has accumulated at the reporting date.

The RSR recognise the expected cost of bonus, incentive and performance related payments when the RSR has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the RSR has no realistic alternative but to make the payments.

1 . 1 1 Provisions and contingenciesProvisions are recognised when:

The RSR has a present obligation as a result of a pastevent;It is probable that an outflow of resources embodying economic benefits or service potential will berequired to settle

the obligation; andA reliable estimate can be made of the obligation.



The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the RSR settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

A provision is used only for expenditures for which the provision was originally recognised. Provision are not recognised for future operating deficitts.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 20.

Where a fee is received by the RSR for issuing a financial guarantee and/or where a fee is charged on loan commitments, it is considered in determining the best estimate of the amount required to settle the obligation at reporting date. Where a fee is charged and the RSR considers that an outflow of economic resources is probable, the RSR recognises the obligation at the higher of:

• The amount determined using in the Standard of GRAP on Provisions, Contingent Liabilities and Contingent Assets; and

• The amount of the fee initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the Standard of GRAP on Revenue from Exchange Transactions.

1 . 1 2 Revenue from exchange transactionsRevenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the RSR receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Accounting Policies

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

MeasurementRevenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when:

It is probable that the economic benefits or service potential associated with the transaction will flow to the RSR, and

The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Revenue comprises of:Safety permit application and permit fee

Revenue arising from permit fees as published in the Government Gazette by the Minister of Transport on an annual basis is recognised on an accrual basis, when economic benefit is probable. This is presented in the statement of financial performance.

Technical awareness workshopsRevenue from technical awareness workshops is recognised when candidates register for technical awareness workshops.This revenue type has been discontinued in the 2020/21 FY.

Interest receivedInterest received comprises interest charged on operator’s late payments and favourable bank balances. Interest income is recognised using the effective interest rate.

Technology auditsThe RSR conducts technology audits and recovers costs in accordance with section 17(1) (bB) of the National Railway Safety Regulator Act No. 16 of 2002 as amended. The RSR does not charge for technology audits as the current legislation is being reviewed.



Accounting Policies

When the outcome of the technology review transaction can be estimated reliably, revenue will be recognised by reference to the stage of completion of the transaction at reporting date. Stage of completion will be determined using the life cycle phases as indicated in the published Gazette.

1 . 1 3 Revenue from non-exchange transactionsNon-exchange transaction are defined as transactions where RSR receives value from another entity without directly giving approximately equal value in exchange. Revenue from non-exchange transaction is generally recognised to the extent that the related receipt or receivable qualifies for recognition as an asset and there is no liability to repay the amount. Revenue from administration grant is considered to be revenue from non-exchange transactions.

Revenue from non-exchange transactions is recognised when there is reasonable assurance that the amount will be received and the value thereof can be reliably measured.

Fines and penaltiesRevenue from fines and penalties is recognised when:

It is probable that the economic benefits or service potential associated with the transaction will flow to RSR; and

The amount of the revenue can be measured reliably.

This comprise of revenue arising from penalties charged as a result of failure by operators to comply with any provisions of the National Railway Safety Regulator Act No. 16 of 2002 as amended, the regulations and the standards that inhibit or prevent the Regulator’s ability to perform its mandate.

Unconditional grantGovernment grants are recognised as revenue when:

It is probable that the economic benefits or service potential associated with the transaction will flow to RSR;

The amount of the revenue can be measured reliably;and

To the extent that there has been compliance with any restrictions associated with the grant.

The RSR recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset. Transferred assets are measured at their fair value as at the date of acquisition.

To the extent that an asset has not been recognised, a deferred income will be recognised as a liability. The deferred income will be transferred to revenue as and when the conditions attached to the grant are satisfied.

1 . 1 4 Borrowing costsBorrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds. Borrowing costs are recognised as an expense in the period in which they are incurred.

1 . 1 5 Fruitless and wasteful expenditureFruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1 . 1 6 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) This Act; or(b) The State Tender Board Act, No. 86 of 1968, or any

regulations made in terms of the Act;or(c) Any provincial legislation providing for procurement

procedures in that provincial government.

National Treasury practice note 2 of 2019/20 effective from 17 May 2019 which was issued in terms of sections 76(2)(e) to 76(4)(a) of the PFMA applies.



Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the Financial Statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the Financial Statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related must remain against the relevant programme/expenditure item, be disclosed as such in the note to the Financial Statements and updated accordingly in the irregular expenditure register.

1 . 1 7 Budget informationRSR is typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which is given effect through authorising legislation, appropriation or similar.

General purpose financial reporting by the RSR shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.

The approved budget is prepared on a cash basis and presented by functional classification linked to performance outcome objectives.

The approved budget covers the fiscal period from 2019/04/01 to 2020/03/31.

The budget for the economic entity includes all the entities approved budgets under its control.

The Annual Financial Statements and the budget are not on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the Statement of comparison of budget and actual amounts.

Accounting Policies

1 . 1 8 Related parties

A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.

Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Joint control is the agreed sharing of control over an activity by a binding arrangement, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).

Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies.

Executive Management are those persons responsible for planning, directing and controlling the activities of the RSR, including those charged with the governance of the RSR in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by management in their dealings with the RSR.

The RSR is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those that it is reasonable to expect the RSR to have adopted when dealing with that individual entity or person in the same circumstances. The terms conditions must also be within the normal operating parameters established by that reporting entity’s legal mandate.

Where the RSR is exempt from the disclosures in accordance with the above, the RSR discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the RSR’s financial statements to understand the effect of related party transactions on its Annual Financial Statements.



Notes to the Financial Statements

2. New standards and interpretations

2 . 1 Standards and interpretations issued, but not yet effective

The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entity’s accounting periods beginning on or after 01 April 2020 or later periods:

Standard/ Interpretation: Effective date: Years beginning

on or after

Expected impact:

Directive 14: The application of Standards of GRAP by Public Entities that apply IFRS® Standards

01 April 2021 Unlikely there will be a material impact

Guideline: Guideline on Accounting for Land fill Sites 01 April 2021 Unlikely there will be a material impact

IGRAP 20: Accounting for Adjustments to Revenue 01 April 2021 Unlikely there will be a material impact

GRAP 34: Separate Financial Statements 01 April 2021 Unlikely there will be a material impact

GRAP 35: Consolidated Financial Statements 01 April 2021 Unlikely there will be a material impact

GRAP 36: Investments in Associates and Joint Ventures 01 April 2021 Unlikely there will be a material impact

GRAP 37: Joint Arrangements 01 April 2021 Unlikely there will be a material impact

GRAP 38: Disclosure of Interests in Other Entities 01 April 2021 Unlikely there will be a material impact

GRAP 110 (as amended 2016): Living and Non-living Resources 01 April 2021 Unlikely there will be a material impact

Directive 13: Transitional Provisions for the Adoption of Standards of GRAP by Community Education and Training (CET) Colleges

01 April 2021 Unlikely there will be a material impact

Directive 7 (revised): The Application of Deemed Cost 01 April 2021 Unlikely there will be a material impact




Figures in Rand 2020 2019

3. Receivables from exchange transactions

Trade debtors 1 474 686 1 585 386Prepayments 2 320 603 801 323Deposits 4 005 522 168 246Staff debts 25 907 20 258Impairment allowance (160 415) (283 850)

7 666 303 2 291 363

Statutory receivables included in receivables from exchange transactions above are as follows:

Safety permit fees 1 187 328 1 019 171Technology audits - 148 600Impairment allowance - (148 600)

1 187 328 1 019 171

Other non-financial asset receivables included in receivables from exchange transactions above are as follows:Prepayments 2 320 603 801 323Deposits 4 005 522 168 246Staff debt 25 907 20 258Other debtors 287 358 417 615Impairment allowance - non statutory receivables (160 415) (135 250)

6 478 975 1 272 192Financial asset receivables included in receivables from exchange transactions above - -Total receivables from exchange transactions 7 666 303 2 291 363Statutory receivables general information Transaction(s) arising from statute

The statutory receivables of the RSR comprises safety permit fees charged to the rail operators. The safety permit fees are charged to rail operators in terms of sections 23(2) of the National Railway Safety Regulator Act of 2002 as amended.




Determination of transaction amount

Safety permit fees

The Minister of Transport annually determines in terms of section 23 (2)(a), fees that the Railway Safety Regulator must charge for the safety permit. The safety permit fees are published for compliance and general information in the Government Gazette. The fees are determined for each category of operators.

Technology audits

The Minister of Transport may in terms of section 17(1)(bB) determine in consultation with Minister of Finance by notice in the Gazette, fees for providing services by the Railway Safety Regulator. The legislation is currently under review and RSR did not charger for technology audits during the year.

Interest or other charges levied/charged

There was no interest charged on the statutory receivable arising from exchange receivable transactions at 31 March 2020 in line with RSR revenue and receivable policy.

Basis used to assess and test whether a statutory receivable is impaired

In terms of the RSR’s revenue and receivable policy, an invoice is overdue when it is more than 30 days. RSR assesses receivables for impairment based on the receivable age analysis.


Reconciliation of provision for impairment

Relating specifically to statutory ReceivablesOpening balance 148 600 (10 019 695)Provision for impairment - 148 600Reversal of impairment (148 600) 10 019 695

- 148 600

Main events and circumstances that led to the recognition or reversal of impairment losses on statutory receivables

Other impairment losses recognised or reversedThe impairment losses for the current year were recognised as the relevant debtors were unable to pay as they were under businessrescue. The impairment losses were reversed as the debtors subsequently managed to pay their debts during the year.

Key indicators and assumptions used to assess and calculate whether statutory receivables were impaired during the reporting period

The receivables were impaired based on the following situations of the debtors:

• Overdue for more than 30 days.• Debtors did not respond to follow up requests. Indication of financial difficulty.





Debtors in business rescue.

Confirmation of non operation of the rail activities.

Receivables past due but not impaired

Relating specifically to Statutory Receivables

Statutory receivables which are less than 30 days past due are not considered to be impaired. At 31 March 2020, R750 967 (2019: R914 905) were past due but not impaired due to confirmation obtained for future payment.

The ageing of amounts past due but not impaired is as follows:

Age31 to 60 days 637 261 792 85961 to 90 days 28 758 7 37391 to 120 days 42 594 -Over 120 days 42 354 114 673

750 967 914 905

Receivables impairedRelating specifically to Statutory Receivables

As of 31 March 2020, statutory receivables of R0 (2019: R148 600) were impaired and provided for.

The ageing of these amounts is as follows:

AgeOver 120 days - 148 600

Total trade and other receivables past due but not impairedRSR does not have collateral held against these amounts:

31-60 days 637 261 800 47061-90 days 28 758 14 87391- 120 days 42 594 9 000Over 120 days 169 297 125 660

877 910 950 003

Total trade and other receivables impaired

As on 31 March 2020, the trade and other receivables relating to receivables from exchanage transactions were impaired and provided for.The amount of the provision was R160 415 as of 31 March 2020 (2019: R283 850).These amounts were impaired because they were overdue. The RSR does not have collateral held against these amounts.





AgeOver 120 days 160 415 283 850

Reconciliation of provision for impairment of total trade and other receivablesOpening balance 283 850 10 019 695Provision for impairment 160 415 283 850Amounts written off as uncollectible (80 250) -Reversal of impairment (203 600) (10 019 695)

160 415 283 850

4. Receivables from non-exchange transactions

Trade debtors 4 270 000 4 500 000

Statutory receivables included in receivables from non-exchange transactions above are as follows:Penalties 4 270 000 4 500 000Total receivables from non-exchange transactions 4 270 000 4 500 000

Statutory receivables general informationTransaction(s) arising from statute

The statutory receivables from non - exchange receivables arise from the charging of penalties by the RSR to the rail operators which contravened the provisions of the National Railway Safety Regulator Act of 2002 as amended. The fees are charged in terms of section 45A of the Act.

Determination of transaction amount

The penalties fees are charged in terms of section 45 A of the National Railway Safety Regulator Act of 2002 as amended and penalty fee model developed in terms of the Penalty Fee Regulation of 2011.The penalty fees are approved by the Minister of Transport and published in the Government Gazette.

Interest or other charges levied/charged

There was no interest charged on the statutory receivable arising from the non-exchange receivable transactions at 31 March 2020.

Basis used to assess and test whether a statutory receivable is impaired

In terms of the RSR’s Revenue and receivable policy, an invoice is overdue when it is more than 30 days old. The RSR assesses receivables for impairment based on the receivable age analysis.





Statutory receivables past due but not impaired

Statutory receivables which are less than 3 months past due are not considered to be impaired. At R3 500 000, (2019: R2 000 000) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows:

AgeOver 120 days 3 500 000 2 000 000

Factors the entity considered in assessing statutory receivables past due but not impaired

- Payment agreements with the debtor.

- The financial status of the debtor. The total payment was subsequently received after year end.

- The operator’s permit expiry dates.

Statutory receivables impaired

As of 31 March 2020, no statutory receivables relating to receivables from non - exchange were impaired as payment was received after year end

Total trade and other receivables past due but not impaired AgeOver 120 days 3 500 000 2 000 000

The receivables were not pledged as security for any liabilities of the RSR.

Receivables from non-exchange transactions impaired

As of 31 March 2020, no receivables from non-exchange transactions were impaired and provided for.

5. Cash and cash equivalents

Cash and cash equivalents consist of:Cash on hand 3 153 4 917Bank balances 1 599 912 2 677 077Short-term deposits 63 449 946 39 971 413

65 053 011 42 653 407




6. Property, plant and equipment

2020 2019Cost /

valuationAccumulated depreciation

and accumulated impairment

Carrying value

Cost/ valuation

Accumulated depreciation


Carrying value

Furniture and fixtures 6 213 048 (1 210 962) 5 002 086 5 300 964 (2 219 401) 3 081 563Motor vehicles 4 819 864 (464 343) 4 355 521 165 239 (164 051) 1 188Office equipment 3 136 195 (481 544) 2 654 651 846 788 (472 422) 374 366IT equipment 7 940 861 (4 192 641) 3 748 220 7 258 216 (4 356 327) 2 901 889Leasehold improvements 14 796 595 (535 968) 14 260 627 33 854 406 (29 991 370) 3 863 036

Leased assets 750 533 (689 913) 60 620 792 955 (681 800) 111 155Total 37 657 096 (7 575 371) 30 081 725 48 218 568 (37 885 371) 10 333 197

Reconciliation of property, plant and equipment - 2020Opening balance

Additions Disposals Depreciation Total

Furniture and fixtures 3 081 563 2 314 702 (136 554) (257 625) 5 002 086Motor vehicles 1 188 4 654 626 - (300 293) 4 355 521Office equipment 374 366 2 406 844 (3 727) (122 832) 2 654 651IT equipment 2 901 889 2 027 182 (152 843) (1 028 009) 3 748 220Leasehold improvements 3 863 036 14 796 595 - (4 399 004) 14 260 627Finance leases 111 155 - (4 079) (46 456) 60 620

10 333 197 26 199 949 (297 203) (6 154 219) 30 081 725

Reconciliation of property, plant and equipment - 2019

Opening balance

Additions Useful life increase

Disposals Depreciation Other changes

Total

Furniture and fixtures 3 311 913 - 104 (9 820) (220 634) - 3 081 563Motor vehicles 12 654 - - - (11 466) - 1 188Office equipment 409 047 46 330 5 389 (7 579) (78 821) - 374 366IT equipment 2 430 424 1 329 151 (2 011) (51 926) (803 749) - 2 901 889Leasehold improvements 13 349 974 - - - (18 190 378) 8 703 440 3 863 036Finance leases 199 865 - 87 463 (8 389) (167 784) - 111 155Work in progress - Leasehold improvements 6 950 558 1 752 882 - - - (8 703 440) -

26 664 435 3 128 363 90 945 (77 714) (19 472 832) - 10 333 197




7. Intangible assets

2020 2019Cost /

valuationAccumulated depreciation


Carrying value

Cost/ valuation

Accumulated depreciation


Carrying value

Computer software 19 872 657 (17 363 491) 2 509 166 19 615 865 (16 373 079) 3 242 786

Reconciliation of intangible assets - 2020Opening Balance

Additions Disposals Amortisation Total

Computer software 3 242 786 502 596 (1) (1 236 215) 2 509 166

Reconciliation of intangible assets - 2019Opening Balance

Amortisation Total

Computer software 7 038 023 (3 795 237) 3 242 786





8. Finance lease obligation

Current liabilities -

15 259- 15 259

9. Payables from exchange transactions

Trade payables 15 637 211 11 760 833Revenue received in advance 7 803 196 7 831 330Accrued leave pay 5 443 676 5 026 570Other payables and accruals 13 271 406 12 853 575Operating lease payables1 1 816 967 -13th cheque accrual 217 744 217 238

44 190 200 37 689 546

1This liability relates to smoothing of operating lease rentals in respect of the new regional offices.

Analysis of trade and other payables

0 to 30 days 8 538 570 6 071 10131 to 60 days 928 781 62 86861 to 90 days 6 382 68 511Over 90 days 6 163 478 5 558 353

15 637 211 11 760 833

10. ProvisionsReconciliation of provisions - 2020

Opening Balance

Additions Utilised during the

year

Total

Performance bonus1 6 826 513 4 857 014 (6 826 513) 4 857 014

Provisions for back pay2 - 590 504 - 590 5046 826 513 5 447 518 (6 826 513) 5 447 518

1 Performance bonus payments are expected in 2020/21 FY of which the exact amount is uncertain due to outstanding moderation and final approval.

2 Payment of backpay expected in the 2020/21 financial year of which the timing is uncertain due to it currently being under review.




Reconciliation of provisions - 2019

Opening Balance

Additions Reversed during the

year

Total

Performance bonus - 6 826 513 - 6 826 513Provisions for back pay 1 907 197 - (1 907 197) -

1 907 197 6 826 513 (1 907 197) 6 826 513


11. Safety permit feesSafety permit fees 164 445 366 157 788 990Application fees 6 115 399 6 259 061

170 560 765 164 048 051

12. Interest received

Interest earned on bank balance 8 160 496 5 811 333Interest earned on debtor’s balance - 6 140

8 160 496 5 817 473

13. Technology audits

Technology audits - 1 456 650Application fees-technology audits - 271 900

- 1 728 550

RSR does not charge for technology audits due to current legislation being under review.

14. Other revenueEPWP - 1 311 000Bad debts recovered 75 540 98 317Conference revenue 531 000 -

606 540 1 409 317





15. Employee related costsSalaries1 69 992 412 86 352 882Performance bonus 5 728 280 6 826 513Medical aid - company contributions 6 186 009 6 918 219Unemployment Insurance Fund 529 565 626 254Union Fees 97 765 111 385Leave pay accrual 417 106 (332 172)Pension fund 13 118 766 14 462 009Salaries leave paid2 888 698 1 228 24913th cheque 552 091 686 702Acting allowances 916 917 1 147 440South African Revenue Service 35 538 884 37 536 408

133 966 493 155 563 889

1 Included in salaries are voluntary severance packages paid out in 2018/19 amounting R6 811 027 and retrenchment packages in the 2019/20 amounting to R201 154, following a restructuring process.

2 Leave paid out relating to restructuring amounting to R638 787 in 2018/19 and R104 924 in 2019/20.

16. Debt impairmentAllowance for impairment (43 081) (9 729 845)Bad debts written off 1 881 957 1 853 051

1 838 876 (7 876 794)





17. General expensesExternal audit fees 3 392 554 3 033 485Railway safety outreach and awareness 1 606 619 1 933 144Bank charges 85 453 81 409Cleaning 471 913 249 720Computer expenses 2 068 352 1 441 903Postage and couriers 81 967 52 228Catering -refreshments 509 508 375 068Gifts 128 586 7 941Insurance 572 108 228 338Conferences and seminars 2 867 515 1 185 746Placement fees 1 305 476 -Printing and stationery 324 765 314 600Protective clothing 187 766 40 750Repairs and maintenance 344 456 398 670Subscriptions and membership fees 534 419 243 658Telephone and data 2 963 671 4 220 949Training 1 468 652 206 005Travel - local 5 041 171 3 452 500Travel - International 1 399 537 291 274Municipal services 2 963 543 1 815 640Lease payment vehicle 284 549 3 569 797Equipment rentals 1 150 000 445 000Corporate stationery 408 253 168 871Office rental and services 11 356 705 11 290 586Workmens compensation 189 206 234 776Library & literature 59 167 217 808Non - executive directors remuneration 2 481 650 2 354 216Consulting and professional fees 13 421 391 15 448 348Relocation cost 1 219 144 124 718

58 888 096 53 427 148





18. Cash generated from operationsSurplus 41 453 052 19 292 593Adjustments for:Depreciation and amortisation 7 390 432 23 278 849Loss on sale of assets 297 203 77 714Proceeds from sale of assets (245 131) (74 708)Changes in working capital:Receivables from exchange transactions (5 144 940) (4 133 282)Payables from exchange transactions 343 603 (4 761 759)

44 094 219 33 679 407

19. Commitments

Approved and contracted for

Capital commitmentsProperty, plant and equipment 3 479 125 8 839 839Intangible assets - 611 104

3 479 125 9 450 943

Operational commitments

General expenditure 198 071 846 8 447 001

Total commitments approved and contracted forCapital commitments 3 479 125 9 450 943General expnediture 1 198 071 846 8 447 001

201 550 971 17 897 944

1 The 2019/20 includes office rental and related services to the amount of R174.3 million. This is in respect of the new office leases entered into during the year.

Approved and contarcted for

Operational commitmentsNot yet contracted for and authorised by members - 239 121 452





The RSR will utilise its own resources to fund the commitments for the 2019/20 FY through available cash resources at year-end and the approved budget for the 2020/21 budget.

Operating leases - as lessee (expense)

Minimum lease payments due- within one yearBuilding - Centurion - 1 836 591Building - Furniture and ICT Equipment - Cape Town - 520 552Building - Furniture and ICT Equipment - Durban - 347 116Building - Gauteng - 612 410Building 2 - Central office 2 347 853 -Building 4 - Central office 6 950 348 -Building - Eastern region 773 038 -Building - Coastal region 1 293 144 -- in second to fith yearBuilding 2 - Central office 11 154 037 -Building 4 - Central office 33 019 291 -Building - Eastern region 3 319 335 -Building - Coastal region 5 379 729 -- In sixth to tenth yearBuilding 2 - Central office 17 432 676 -Building 4 - Central region 50 524 108 -

132 193 559 3 316 669

New leases entered into in line with GRAP 13 disclosure requirements.

20. Contingencies

1. Termination of employee contract

Following the termination of the contract of employment of a former employee, the party referred the dispute to the CCMA for unfair dismissal and requested reinstatement. The CCMA has finalised the matter in favour of the RSR. The matter has been referred by the employee to the Labour Court. In the unlikely event that the employee is successful, a possible award is estimated at three months salary amounting to R412 970.

2. Job grading

Various matters relating to the implementation of job grading was heard at the CCMA and were not in favour of a retrospective payment relating to the implementation of a regrading process. One of these cases was submitted to the Labour Court which may confirm a liability. The estimation of the possible award amounts to R327 505 based on salary grading differences up to a maximum of 17 months.




3. Full Facilities Management vs RSR

In June 2018, the RSR terminated the contract for facilities management following a forensic audit. The matter has proceeded to abritration and exchanged pleadings and the RSR has approached the High Court to set aside the agreement. An obligation will only be confirmed through the arbitration or High Court ruling. The RSR may be exposed to a possible obligation yet to be confirmed in the amount of R23 million as the claim against the RSR amounts to R31 million and the RSR’s intention to recover fruitless and wasteful expenditure amounting to R8 million.

4. Section189

The employee is challenging the law fullness of the section 189 process following his retrenchment. Although the RSR has good prospects of success, the matter is currently at the Labour Court to confirm whether there is a liability which is estimated at 12 months salary amounting to R1.1 million.

21. Related parties

RelationshipsExecutive authority Honourable Minister of Transport: Mr F Mbalula(MP)Controlling entity National Department of TransportRelated entities Entities reporting to the Department of TransportMembers of key management Ms Tshepo Kgare - Acting CEO Mr Regardt Gouws - Chief Financial Officer Mr Mmuso Selaledi - Executive: Risk and Strategy Mr Khayalethu Madlwabinga - Executive: Human Resources Ms Madelein Williams - Executive: Media and Communications Ms Malerato Kekana - Chief Audit Executive Mr Freddy Kgomari - Acting Chief Operations Officer


Related party transactions and balances

National Department of Transport (Controlling entity)Administration grant 63 522 000 63 018 000

Amounts included in revenue relating to PRASA (Related entity)

Permit fees 31 360 950 29 491 462Technology audits - 132 600Penalty fees - 4 500 000

Amounts included in Trade receivables relating to PRASA

Conference income 20 000 -Technology audits - 148 600Penalty fees 3 500 000 4 500 000




Remuneration of management

Executive management2020

Name

Basic salary

Medical aid and pension

Performance bonus

Other allowances

Total

Mr N A Poya - Chief Executive Officer1 661 759 12 944 - - 674 703Ms T Kgare Acting - Chief Executive Officer 2 663 056 83 169 335 266 22 081 3 103 572Mr J Nethathe - Acting Chief Operations Officer2 1 548 237 - 105 297 3 836 1 657 370Mr K Madlwabinga - Executive Human Resources3 1 126 805 264 905 120 697 - 1 512 407Mr R Gouws - Chief Financial Officer 1 559 142 214 971 165 188 120 1 939 421Ms M Williams - Executive Media and Communications4

1 409 030 - 122 084 - 1 531 114

Ms Z Camroodien - Executive Legal Services5 589,011 99 592 92 606 - 781 209Ms RS Huntley: Executive: Organisational Intelligence and Planning6

97 334 26 667 - - 124 001

Mr H Murovhi - Company Secretary7 753 754 28 990 167 070 - 949 814Mr F Kgomari - Acting Chief Operations Officer8 1 692 475 115 206 145 700 - 1 953 381Ms M Kekana -Chief Audit Executive9 1 253 367 413 297 118 089 - 1 784 753Mr B Bruwer - Executive: Office of the CEO10 1 288 055 - 142 010 - 1 430 065Mr M Selaledi - Executive Risk & Strategy11 1 567 210 68 672 212 994 - 1 848 876

16 209 235 1 328 413 1 727 001 26 037 19 290 686

1 Resigned 06 June 2019.2 Acting Chief Operations Officer from 17 September 2018 to 31 May 2019.3 Appointed 18 May 2019.4 Appointed 1 April 2019.5 Resigned 15 September 2019.6 Dismissed 18 April 2019.7 Resigned 14 August 2019.8 Acting Chief Operations Officer from 1 December 2019.9 Appointed 5 July 201910Resiged 30 November 201911Appointed 5 July 2019




2019

Name Basic salary

Medical aid and pension

Allowances Total

Mr N A Poya Chief Executive Officer1 3 466 245 144 825 - 3 611 070Ms T Kgare Acting Chief Executive Officer 2 647 775 75 546 840 2 724 161Mr J Nethathe - Acting Chief Operations Officer 1 612 343 - 5 153 1 617 496Mr S Kekana - Executive: Occurrence Investigations3 1 174 427 267 805 120 000 1 562 232Mr R Gouws - Chief Financial Officer 1 450 481 203 181 240 1 653 902Mr I Shai - Executive: Legal2 777 009 140 448 - 917 457Mr S Nxazonke - Executive: Corporate Affairs 851 325 76 506 - 927 831Ms RS Huntley: Executive: Organisational Intelligence and Planning3

1 552 487 314 582 120 1 867 189

Mr H Murovhi - Company Secretary 1 607 195 65 292 - 1 672 487Mr TH Fumbata - Chief Operations Officer2 1 659 372 37 540 - 1 696 912Ms M Kekana - Acting Chief Audit Executive 1 225 838 350 467 - 1 576 305Mr B Bruwer - Executive: Office of the Chief Executive Officer 1 421 881 - - 1 421 881Mr M Selaledi - Chief Risk Officer 1 247 091 174 655 - 1 421 746

20 693 469 1 850 847 126 353 22 670 669

1 On precautionary suspension effective from 27 November 2017, subsequently resigned on 06 June 2019.

2 Resigned 30 August 2018.

3 Dismissed 18 April 2019.




22. Related parties - Board members

Board and committee members

2020Name Emoluments Allowances Expenses TotalDr. Nomusa Zethu Qunta (Chairperson) 340 904 8 400 16 365 365 669Mr. Boy Johannes Nobunga (Deputy Chairperson) 109 804 5 650 31 774 147 228Mr. Jan-David de Villiers1 - - - -Mr. Christian Johan de Vos 248 427 5 650 21 046 275 123Mr. Andre Harrison 220 761 5 650 7 231 233 642Major - General Michael Monash Motlhala3 - - - -Mr. Rendani Dlamini 128 853 5 400 - 134 253Ms. Ntombizine Mbiza 245 295 5 650 25 458 276 403Ms. Hilda Thamaga Thopola 183 234 5 650 21 041 209 925Major - General Willem Venter (Retired) 232 133 5 650 69 165 306 948Mr. Tibor Szana2 - - - -

1 709 411 47 700 192 080 1 949 1911 Delegate from the National Department of Transport - not remunerated.

2 Delegated from the National Department of Labour - not remunerated.

3 Delegated from South African Police Services - not remunerated.




2019

Emoluments Allowances Expenses TotalDr. Nomusa Zethu Qunta(Chairperson) 282 397 6 000 12 710 301 107Mr. Boy Johannes Nobunga (Deputy Chairperson) 152 981 3 000 52 615 208 596Mr. Christian Johan de Vos 262 964 3 000 19 174 285 138Mr. Andre Harrison 292 717 3 000 9 982 305 699Mr. JD de Villiers 1 - - - -Major - General Michael Monash Motlhala 3 - - - -Mr. Zacharia Ntate Mosothoane 13 466 250 - 13 716Ms. Masaccha Mbonambi 4 85 411 2 500 - 87 911Ms. Ntombizine Mbiza 223 923 3 000 13 830 240 753Mr. Jack Mazibuko 4 5 399 1 500 - 6 899Ms. Hilda Thamaga Thopola 192 086 3 000 - 195 086Major - General Willem Venter (Retired) 240 172 3 000 78 892 322 064Mr Tibor Szana 2 - - - -

1 751 516 28 250 187 203 1 966 969

1 Delegate from the National Department of Transport - not remunerated.

2 Delegate from the National Department of Labour - not remunerated.

3 Delegated from South African Police Services-no remunerated.

4 Resigned.

Audit and Risk Committee

2020

Members’ fees Cellphone allowance

Expenses Total

Dr. Prittish Dala (Independent member) 1 332 132 2 875 2 275 337 282Mr Simphiwe Simelane (Independent member) 1 229 334 3 250 - 232 584

561 466 6 125 2 275 569 866

1 New appointment during the year.




2019Members’ fees Cellphone

allowanceExpense Total

Mr. Ameen Amod (Independent chairperson)1 153 709 2,500 - 156 209Ms. Desiree Nage (Independent member)1 137 624 2,500 343 140 467Ms. Reshoketswe Ralebepa (Independent member)1 87 571 2,500 - 90 071Dr. Prittish Dala (Independent member) 2 500 - - 500Mr Simphiwe Simelane (Independent member)2 - - - -

379 404 7 500 343 387 247

1 Contract ended in January 2019.2 New appointment after year end.

23. Change in accounting policy

1. Receivables

Presentation of revenue from exchange and non-exchange transactions.

This is a voluntary change in the presentation and disclosure as the RSR has already adopted the Standards on Revenue from exchange transactions and non -exchange transactions.

The RSR has in the previous financial years presented receivables as one amount on the face of the statement of financial position and separately disclosed the exchange and non - exchange receivables in the notes to the financial statements. During the 2019/20 financial year, the management has opted to make a separate presentation of the receivables from exchange and non-exchange transactions on the face of the statement of financial position in order to present a clear distinction of the receivables types on the face. This presentation option was motivated by the significant growth in the revenue from non - exchange transactions in recent years. The effect of the change on the previous year is as follows:

Description Previous

year Policy change

Restated

Receivables 6 791 363 (6 791 363) -Receivables from exchange transactions - 2 291 363 2 291 363Receivables from non - exchange transactions - 4 500 000 4 500 000

6 791 363 - 6 791 363




2. Statutory receivables

The change in accounting policy is made in accordance with transitional provisions prescribed in Directive 2.

This change in accounting policy relates to the initial adoption of the GRAP 108 on Statutory receivables.

The RSR applies this Standard as its receivables from permits, penalties and technology audits meet the recognition criteria for statutory receivables.

All changes resulting from the application of the Standard of GRAP on Statutory receivables shall be accounted for retrospectively in accordance with the requirements of GRAP 3. The transitional provisions for GRAP 108 requires that when an entity initially adopts a Standard of GRAP, GRAP 3 requires an entity to apply the requirements of the Standard being adopted restrospectively. The implication of adopting the Standard relate to additional disclosures relating to Statutory receivables and the implication did not result in the adjustment of financial figures.

24. Change in accounting estimate

Intangible assets

At the end of 2018/19 FY, RSR assessed and revised the useful life of a certain class of its intangible assets. The amortisation on these intangible assets was originally estimated at five years and subsequently revised to eight years. The effect of this change was implemented during the 2019/20 FY. The effect of the change on actual and expected amoritsaion expense in the current and future financial period is as follows:

Description 2019/20 2020/21 2021/22Original estimate 2 489 674 750 267 -Revised estimate (1 081 951) (1 081 951) (1 076 039)

1 407 723 (331 684) (1 076 039)




2 5 . Prior period errors

Presented below are those items contained in the statement of financial position,statement of financial performance and cash flow statement that have been affected by the prior - year adjustment:

1. PPE useful life adjustments

At the beginning of the 2019/20 financial year, the useful life of the relevant individual assets was revised in the asset register. The implementation of the new useful life in the asset register resulted in the difference between from the initial calculation. The resultant difference amounted to R195 792 which represented overstatement of the of the carrying amount of assets in the previous year. The correction of the error was accounted for retrospectively.

Statement of financial position

2019

As previouslyreported

Correction oferror

Restated

Property, plan and equipment 10 528 989 (195 792) 10 333 197



Correction oferror

Restated

Other revenue from non-exchange 394 106 (195 792) 198 314 2. Cash flow statementCash flow from operating activities


Correction oferror

Restated

Sale of goods and services 178 164 674 (195 792) 177 968 882Payments to suppliers (62 007 787) 195 792 (61 811 995)

116 156 887 - 116 156 887


Correction oferror

Restated

Cash flow from operating activities - reconciliation noteSurplus for the year 19 488 385 (195 792) 19 292 593Interest income (5 817 473) 5 817 473 -Finance costs 3 856 3 856 -Payables from exchange transaction (4 957 551) 195 792 (4 761 759)

8 717 217 5 813 617 14 530 834




2 6 . Risk managementFinancial risk managementThe RSR manages its net assets to ensure that it will be able to continue as a going concern, while meeting its overall objectives. Funding is obtained primarily from grants and the administration of permit fees. The strategy is consistent with that applied in prior years.

From its use of financial instruments, the RSR has exposure to the following risks:- Credit Risk- Liquidity Risk- Market Risk

This note presents information about the RSR’s exposure to each of the above risks. Further quantitative disclosures are included throughout these financial statements. The Board has the overall responsibility for the establishment and oversight of the RSR’s risk management framework. The Board has established the Audit and Risk Committee which is responsible for the oversight on the development and monitoring the RSR’s risk management policies.

The RSR’s risk management policies are established to identify and analyse the risks faced by the RSR to set appropriate risk limits and controls and to monitor risk and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in the RSR’s activities. RSR through its training and management standards and procedures aims to develop a disciplined and effective control environment in which all employees understand their roles and obligations. The Audit and Risk Committee oversees how management monitors compliance with RSR’s risk policies and procedures, and review the adequacy of the risk management framework in relation to the risk faced by the RSR. The Audit and Risk Committee is assisted in its oversight role by the Internal Audit. The internal audit undertakes both regular and adhoc financial reviews of controls in place to mitigate the risk which are reported to the Audit and Risk Committee.

Debtors are assessed at year end for recoverability and the necessary provision for write off will be raised if deemed material.

The RSR’s financial instruments consist mainly of cash and cash equivalents, receivable and payables. Bank deposits and balances, receivables and payables approximate their fair values due to the short term nature of these instruments.The fair values together with the carrying amounts have been determined by using available market information and are presented in the statement of financial position.

Liquidity risk

Liquidity risk is the risk that the RSR will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is considered low as the current assets exceeded current liabilities at 31 March 2020. The total current assets reported in the statement of Financial Position has already taken account of the provision for credit loses. Furthermore, all the open order commitments of the RSR at 31 March 2020 were fully funded. Management monitors rolling forecast of the RSR’s cash and cash equivalents on the basis of the expected cash flows. The RSR engages with the rail operators on a continuous basis to ensure that it has the cash flows to meet the expected payments as they fall due.

The table below analyses the RSR’s financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.




Maturity groupings Later than one month

Later than one month

and no later than three

months

Later than three month and no later

than one year

Later than one year and no later than

five years

Total

Trade payables - 9 971 907 5 665 304 - 15 637 211Revenue received in advance 295 196 - 7 508 000 - 7 803 196Accrued leave pay - 5 443 676 - - 5 443 676Other payables and accruals - 975 665 12 295 741 - 13 271 406Operating lease payables - - - 1 816 967 1 816 96713th cheque accrual - - 217 744 - 217 744

295 196 16 391 248 25 686 789 1 816 967 44 190 200

Credit risk

The risk that a counter party will not meet its obligations under financial instruments, leading to a financial loss. The RSR is exposed to credit risk from its operating activities, primarily for receivables. The RSR’s maximum exposure to credit risk as at 31 March 2020 was R11 936 303 (2019: R6 791 363).

Potential concentration of credit risk consist mainly of cash and cash equivalents and receivables. Financial institutions with an acceptable independent rating are accepted. The carrying amount of the receivables are recorded at net of impairment allowances which represents the RSR’s maximum exposure to credit risk.

At 31 March 2020, the RSR did not consider there to be any significant concentration of credit risk which had not been adequately provided for.

Market risk

Market risk is the risk that changes in market prices such as interest rates, will affect the RSR’s income or the value of its holdings of financial instruments. The objectives of market risk management is to manage and control market risk exposure within acceptable parameters, while optimising the return. The RSR is then exposed to one primary type of market risk namely, interest risk.

Interest rate risk

Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rate. The RSR’s exposure to the risk of changes in market rates is limited to cash and cash equivalents that have floating interest rates which may fluctuate during a financial year. The sensitivity of the finance income to these changes are deemed negligible.

Cash and cash equivalent

The RSR only deposits cash with major banks with high quality credit standing. RSR, therefore, does not consider to be any signif-icant exposure to credit risk.

The RSR utilised ABSA bank for daily transactions which has a Ba1 rating as well as the South African Reserve Bank for investment purposes.





Financial assets and Liabilities

The RSR’s principle financial assets are accounts receivables and cash and cash equivalents. At 31 March 2020, the carrying amounts of cash, accounts receivables and accounts payables at amortised cost approximate their fair values, due to the short term maturities of these assets and liabilities. Management has assessed the impact of COVID-19 on outstanding balances and no further risks were identified. The available cash balances at year - end and collection rate after year - end to meet future obligations were assessed and no material risks has been identified. The net fair value of the assets and liabilities of the RSR are stated below:

The management has assessed the impact of COVID-19 on outstanding balances and no further risks were indentified. The collection rates after year-end and available cash balance at year-end to meet further obligations were assessed and no material risk has been identified.

AssetsReceivables 11 936 303 6 791 363Cash and cash equivalents 65 053 011 42 653 407

76 989 314 49 444 770

LiabilitiesPayables from exchange transactions 44 190 200 37 689 546 No financial instrument is carried at an amount in excess of its fair value.

2 7. Going concern

The Annual Financial Statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. Management has assessed the RSR’s ability to continue as a going concern, including the effect of COVID-19 and no material uncertainties were identified.

2 8 . Events after the reporting date

Although COVID-19 can be considered as an event after reporting date, no additional disclosures, adjusting or non-adjusting has been identified.

29. Fruitless and wasteful expenditureOpening balance 8 724 382 9 639 902Opening balance as restated 8 724 382 9 639 902Add: Fruitless and wasteful - current 61 789 985Less: Amount written off - current (55 455) (916 505)Closing balance 8 730 716 8 724 382



30. Irregular expenditure

Opening balance 13 286 992 14 769 004Add: Irregular expenditure identified in the current year, relating to prior year 413 896 1 140 671Opening balance as restated 13 700 888 15 909 675Less: Amounts condoned (12 191 329) (3 644 689)Add: Irregular expenditure identified in the current year 1 578 846 1 022 006Less: Amounts recovered (14 888) -Closing balance 3 037 517 13 286 992

Details of irregular expenditure - prior year Status

Non-compliance to NT SCM Instruction Note No. 3 of 2016/17 - Sole service provider 1 94 875Non-compliance to NT SCM Instruction Note No. 3 of 2016/17 - Sole service provider 2 215 625Non-compliance to the NT Regulations - Local Content for textile 2 100 345Non-compliance with procurement legislation and SCM processes 2 3 051

413 896

1 Not condoned by National Treasury.2 Sent to National Treasury for condonement.






Details of irregular expenditure - current year Status

Non - compliance with supply chain processes relating to training of employees 1 14 949Non - compliance with supply chain processes relating to training of employees 1 12 340Non - compliance with supply chain processes relating to payroll system consultation 1 6 789Non - compliant with supply chain processes relating to newspaper vacancy advertisement 1 60 168Non - compliant with supply chain processes relating to legal 1 286 830Non - compliance to the NT Regulations- Local Content for textile 2 108 000Non - compliant with delegation of authority relating to legal services 2 239 315Non - compliant with delegation of authority relating to legal services 2 313 389Non - compliance to the NT Regulations relating to recruitment services 1 139 150Non - compliance with NT regulations relating to travel and accommodation 2 138 200Non - compliance to the NT Regulations relating to recruitment services 2 259 716

1 578 846

1 Sent to National Treasury for condonation.2 Under investigation.




Details of irregular expenditure condoned Status

Non - compliance with procurement regulations relating to policy development consultants 1 89 200Non - compliance with procurement regulations relating to additional coaching sessions. 1 145 000Non - compliance with procurement regulations relating to Strategic Sessions 1 61 537Non - compliance with contract variation regulations relating to outreach campaigns 1 1 576 400Non - compliance with contract variation regulations relating to stakeholder engagements 1 130 000Non - compliance with procurement regulations relating to legal services on RSR mandate 1 286 390Non - compliance with procurement regulations relating to legal services 1 91 196Non - compliance with contract variation regulations relating to relocation services 1 18 829Non - compliance with contract variation regulations relating to leased building 1 6 544 565Non - compliance with procurement regulations relating to training and development 1 498 000Non - compliance with contract variation regulations relating to leased building 1 1 071 880Non - compliance with procurement regulations relating to training 1 12 340Non-compliance with procurement regulations relating to restructuring consultants 1 341 550Non - compliance with delegations of authority for travel 1 275 928Non - compliance with procurement regulations relating to travel 1 239 966Non - compliance with procurement regulations relating to legal fees 1 286 830Non - compliance with procurement regulations relating to training 1 14 949Non - compliance with procurement regulations relating to employee wellness 1 3 051Non - compliance with procurement regulations relating to HR software 1 6 789Non - compliance with procurement regulations relating to legal fees 1 137 555Non - compliance with procurement regulations relating to furniture rental 1 359 375

12 191 330

1 Condoned by National Treasury.





31. Consulting and professional fees

Internal audit 827 572 1 424 386Regulations and governance - 337 680Board of inquiry - 1 463 928Business consultancy 1 768 064 1 818 580Risk management 112 184 37 725Research 739 997 3 206Board support 41 847 160 959ICT support and improvement 1 232 806 69 837Security system 130 912 341 261HR training and development1 551 568 3 177 929Finance support 132 937 55 062Legal fees 7 843 295 6 408 901Forensic audit 40 208 148 894

13 421 390 15 448 348

1 Included in HR training and development are organisational design, job grading and profiling costs relating to the restructuring process amounting to R1 090 229 in 2018/19.




3 2 . Budget differences

Revenue movements Safety permit: Application fees - R1 615 399 The actual revenue generated from application fees exceeded the budget of R4.5 million by R1.6 million. The safety permit

application fees for 2019/20 financial year amounted to R6.4 million based on the permit fee schedules. Management applied a prudent approach and capped the budget at R4.5 million. This was to accommodate any downward changes in the industry such as closing down of operators, reclassification etc. The actual results far exceeded the management expectations.

Interest received - R6 270 608 Large operators paid permit fees during the first quarter resulting in the organisation holding positive cash balances for longer.

Another contributing factor was the delay in the payment of disputed accruals in respect of the cancelled lease for the old regional offices. As part of the cash flow strategies the RSR’s invests its surplus cash balances at the Coproration for Public Deposits which is held by South African Reserve Bank.

Penalties - R770 000 This penalty was imposed on Botswana rail for operating without a valid safety permit. The RSR does not budget for as these

are considered variable revenue to which funds can not be committed to. Other revenue and other income - R606 540 and R214 755 The RSR does not budget for variable revenue. The reason for not budgeting for this type of revenue is that it is not certain to

beraised. Therefore, the RSR does not want to increase its expenditure for revenue that may not be collected. The R606 540 includes insurance proceeds for loss of assets, proceeds from sale of assets and conference revenue.

Expenditure movements Depreciation and amortisation - R7 390 432 The RSR does not budget for non cash items.• Loss on disposal of assets - R297 203 The RSR does not budget for non cash items.• Consulting and professional fees - R16 916 553 This variance is as a result of planned expenditure not incurred before year-end. Due to under expenditure or purchase orders

issued, but services have not been delivered by year - end.• Office rental - R1 222 702 This variance resulted from the recognition of the operating lease liability in respect of the new RSR regional offices which is a

non cash item not budgeted for.• Debt impairment- R1 838 876 The RSR does not budget for bad debts and debt impairment.• General expenses - R11 087 941 This variance is as a result of planned for expenditure not invoiced by year-end. Due to under expenditure or purchase order

issued, but services have not been delivered by year - end.• Capital expenditure - R3 497 861 The total budget was R30.2 million and R26.7 million was incurred, resulting in a variance of R3.5 million. The variance is as a

result of the planned capital expenditure not invoiced by year - end.



Notes



HEAD OFFICE (MIDRAND): +27 10 495 5291, Building 4, Waterfall Point Office Park, Cnr Waterfall and Woodmead Drive, Waterfall City, Midrand, 1685,

SOUTH AFRICA

CENTRAL REGION: +27 87 284 6591, Building 2, Waterfall Point Office Park, Cnr Waterfall and Woodmead Drive, Waterfall City, Midrand, 1685, SOUTH AFRICA

COASTAL REGION: +27 21 493 1718, 2 Long Street Building, 2 Long Street, 11th Floor,

Cape Town, 8000, SOUTH AFRICA

EASTERN REGION: +27 31 492 7289, Embassy Building, 22nd Floor, 199 Anton Lembede

Street, Durban, 4000, SOUTH AFRICA

RP299/2020ISBN: 978-0-621-48751-0

Title of Publications: Railway Safety Regulator Annual Report 2019/2020


annual - national government

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