DoC Budget Presentation
to
Portfolio Committee on Communications
Ms. P Ntombela-NzimandeActing Director General
Department of Communications 10 June 2004
INTRODUCTION • Opening and Welcome
• Strategic plan of DoC derived from- Electorate mandate
- Cabinet Lekgotla
- Legislative mandates i,e relevant Acts
- State of Nations address
- Minister’s Strategic overview
• DoC Strategic planning session from 24 – 27 May & 1 June 2004
ROLE • To develop ICT policies and legislation that stimulate and
enhance the sustainable economic development of the South African 1st and 2nd economy and positively impact on the social well being of all our people.
• To evaluate the economic social and political implementation impact, outcomes and processes of the said policies.
• To exercise oversight on SOEs
• To fulfill South Africa’s continental and international responsibilities in the ICT field.
VISIONOld
• Improve the lives of the ordinary South Africans whilst contributing to economic growth. Make South Africa a knowledge based society and help create an information economy.
New• To be a global leader in
harnessing information and communications technologies for socio-economic development.
MISSIONOld
• To enable ordinary people to have access to traditional media and the convenience of information technology
New • To enhance the well being of
peoples of South Africa, the African Continent and the world through the creation of a sustainable and an enabling information communications technology environment. We shall through leveraging our world class knowledge, skills, and experience deliver on our social contracts to the people in a professional manner reflective of our national value system informed by Batho Pole ethos
MANDATE
National Strategic
Intent
DoC Mandate
Key
Deliverable Target
Constitution •Democracy•Equality•Freedom•Prosperity•Peace and Security•Freedom of Expression•Freedom of Association
• Fair Administration•Policy,
Universal Access & Service
•Develop ICT laws and Policies•Strategic direction for roll out of universal services•Evaluation & Monitoring through Shareholder Compacts
• SA Community•Executive•Legislators•World Community
National Objective derived from
-SONA-Minister-Cabinet Lekgotla
•Poverty Alleviation•Economic Growth•Job creation
•Regulatory Framework•SMME Dev. •Enabling infrastructure roll out•Affordable access to ICT service
• SNO• Local Government• ICT applications
MANDATE
National Strategic
Intent
DoC Mandate/ Key
Deliverable Target
National Objective derived from
-SONA-Minister-Cabinet Legotla
•Poverty Alleviation•Economic Growth•Job creation
(DoC to enable or facilitate)
•Creation of a world class ICT Sector•Economic Growth•Job Creation• Infrastructure development
2nd ECONOMY
•Bridge Digital Divide
•Skills dev
•SNO• Local Government• ICT applications
•Community•Executive•Legislators•World Community
MANDATE
National Strategic
Intent
DoC Mandate/
Key
Deliverable Target
National Objective derived from
-SONA-Minister-Cabinet Legotla
2nd ECONOMY
•Skills dev.
•ICT awareness
•Growing the ICT sector
•Developing sustainable jobs
•National Infrastructure development
•SOE’s delivery strategies
•Community•Executive•Legislators•World Community
MANDATE
National Strategic Intent
DoC Mandate Key
Deliverable Target
• Telecoms Acts • Public Interest • Regulations • Market Structure• Universal Access & Service• Empowerment • Growth & Stability
• Market Liberalization• Sustainable Economic Growth • Policy Dev.• Regulation• Infrastructure R/O• Affordability • Empowerment
• USAL’s • Edunet• E-rate• ICT Strategy • SNO
•Community•Executive•Legislators•World Community
• Broadcasting •Public Interest • Regulations • Market Structure• Universal Access & Service• Empowerment • Growth & Stability• Ownership
• Inclusivity • Nation Building• Language and Content• Community Sector• Infrastructure R/O• Moral regeneration• Sports of National interest • Information, Language and Entertainment
• PBS• CBS• Regional Broadcasting• Regulation of licenses• Social Cohesion• Moral Regeneration• Stimulating Production of local content
•Community•Executive•Legislators•World Community
MANDATE
National Strategic Intent
DoC Mandate Key
Deliverable Target
• Postal •Access and affordability•Access to financial services sector •Delivery of Social Services•Nation Building•Redressing social imbalances •Information and Communications
•Market Structure •Regulations•Economic Growth•Improved service delivery •Oversight of SOE’s
•Develop laws and polices•Infrastructure Rollout
•Community•Executive•Legislators•World Community •Portfolio Organisations•SMME’s •Designated Groups•Regional Reach
•E-Commerce • Facilitate e-government•Secure e-transaction•Stimulate economic growth
• Growth of 2nd economy•Establish enabling e-environment•Establish e-environment framework •Research and development •Security protocol
•Legal and technical certainty •Regulated e-commerce•Established •e-government environment
•Community•Executive•Legislators•World Community •Portfolio Organisations•SMME’s
MANDATE
National Strategic Intent DoC
MandateKey
Deliverable Target
Convergence • Redefine Market Structure
•Reduce cost of doing business
• Economic growth
• Encourage Entrepreneurship
• Innovation and competition
• Appropriate policy for cost reduction
• SMMEs promotion
• Governmental Consensus
• Convert blue print into Act.
• Implementation plan for government
• New regulations
•Community
•Executive
•Legislators
•World Community
•Portfolio Organisations
•SMME’s
MANDATE National Strategic Intent
DoC Mandate
Key
Deliverable Target
Convergence • Redefine Market Structure
•Reduce cost of doing business
• Economic growth
• Encourage Entrepreneurship
• Innovation and competition
• Appropriate policy for cost reduction
• SMMEs promotion
• Governmental Consensus
• Convert blue print into Act.
• Implementation plan for government
• New regulations
•Community
•Executive
•Legislators
•World Community
•Portfolio Organisations
•SMMEs
DOC KPA’S
C o rpo ra teG o ve rna n ce
P o lic yD e ve lo p m e nt
S h are h o ld erM a na ge m e nt
R e sea rch &In n ova tive a p p lica tio ns
L eg a l In te rn a lA u d it
C o rpo ra teS e rv ices
F in an ce &R isk M a n .
S tra te g icM a na ge m e nt
D o CK P A 's
KEY PERFOMANCE AREAS POLICY UNIT
Strategic Objective key Indicator
Policy framework 2 facilitate universal access
•Approved universal access & service framework
Develop e-strategy framework •Cluster consultation
•Stakeholder consultation
•Policy document
•Cabinet process
Develop ICT competition framework
• Consult competition competition
•Cluster consultation
•Market competition analysis
•Stakeholder consultation
Develop ICT competition framework
• Formulate policy directives
• Review appropriateness of policy
• Parliamentary process
KEY PERFOMANCE AREAS POLICY UNIT
Strategic Objective key Indicator
Develop mechanisms to support local content
• Approved policy framework
Finalize Convergence Bill •Convergence Act
Migration policy to introduce new digital services
•Approved digital migration policy framework
Develop policy framework for Public Broadcasting
•Approved public broadcasting framework
KEY PERFOMANCE AREAS SHAREHOLDER MANAGEMENT UNIT
Strategic Objective key Indicator
Facilitate restructuring of SOE’s • Approve restructuring
• Completion of Due Diligence
• Manage Cabinet process
• Facilitate approval of restructuring plans
• Monitor implementation of restructuring plans
Oversee delivery of Government policy targets
• Approved Shareholder Compacts
Oversee delivery of Government policy targets (continued)
• Approved Shareholder Compacts (Continued)
Facilitate appointment of Boards of Directors of SOE’s
• Full representative board compliment
SHAREHOLDER MANAGEMENTKEY PERFOMANCE AREAS
Strategic Objective key Indicator
Analysis of SOEs Financial Performance
•Availability of latest up to date database and financial reports
Undertake benchmarking exercise on financial performance of SOE’s
• Baseline / Industry norms
Evaluate financial implications of Universal Obligations
•Optimal financing model
Analysis of convergent technologies
•Analysis Report;
Analyse viability of emergent technologies to enable universal access
•Feasibility study
•Service delivery Models
•Demonstrable applications.
KEY PERFOMANCE AREAS RESEARCH AND INOVATIVE APPLICATIONS
Strategic Objective key Indicator
To develop network model for provision of educational services
•Actual network model
Affordable and high quality access of regional broadcasting
•Analysis Report
Ensuring compatibility and interoperability of ICT standards
•Implementation of standards
KEY PERFOMANCE AREAS STRATEGY
Strategic Objective key Indicator
Facilitate development of Strategic planning
• Integrated strategic plan
Ensure effective participation in intergovernmental activities
•Coordinate intergovernmental activities
Promote equity of designated groups in DoC
• Increment in employment and procurement from designated groups
Build Mutually beneficial relations in the ICT sector
• Approved MOU’s
• Effective functioning of NEPAD ICT task force
Develop an effective SADC IICT sub-structure with a clear ICT programme
• Created ICT sub-structure
Promotion of SA business in the Continent and the world
• Established strategic alliance partners
KEY PERFOMANCE AREAS STRATEGY
Strategic Objective
key IndicatorProvide support service to Minister in performing her functions
•Timeous and relevant briefing to Minister
To ensure and maintain effective, efficient & transparent systems of:
•- financial and risk management,
•- internal controls,
•- Procurement & Provision system which is fair
• Approved policies, procedures, delegations and systems
• PFMA review report
• Signed off compliance reports
KEY PERFORMANCE AREASFINANCE AND RISK MANAGEMENT
Strategic Objective key Indicator
Budget Management & Financial Reporting
• Approved Budget
• Appropriate expenditure management
• Signed off compliance reports
Timeous provision of relevant information
Provision of Secretary Service to the DTC
• Approved Tender Administrative Procedures
To ensure and maintain effective and appropriate steps to prevent unauthorised, irregular, fruitless and wasteful expenditures and losses
•Unqualified audit reports
• PFMA review reports
• Signed off compliance reports
CRITICAL SUCCESS FACTORS• Resource allocation particularly population of
structure
• Finalization Migration to new structure
• Transformation and Change management process
• HR retention and career pathing strategies
MEDIUM TERM EXPENDITURE ESTIMATE
ProgrammeAdjusted
appropriation
2003/04
Revised estimate
2003/042004/05
MTEF
2005/06 2006/07
1 Administration 88 607 84 198 91 269 95 292 101 008
2 Telecommunications
Policy
146 796 144 062 134 649 142 670 151 230
3 Postal Services 1 090 186 1 088 027 356 490 372 199 394 531
4 Multi-Media Services
Policy
312 948 312 319 285 668 296 904 316 298
5 Auxiliary and
Associated Services
6 682 6 356 7 124 7 438 7 884
TOTALTOTAL 1 645 2191 645 219 1 634 9621 634 962 875 200875 200 914 503914 503 970 951970 951
MTEF PER ECONOMIC CLASSIFICATION
Economic Classification
Adjusted appropriation
2003/04
Revised estimate
2003/042004/05
MTEF
2005/06 2006/07
Current payments
225 413 215 156 202 463 224 497 242 169
Transfers and subsidies
1 403 701 1 403 701 647 224 662 384 699 007
Payments for capital assets
16 105 16 105 25 513 27 622 29 775
TOTALTOTAL 1 645 2191 645 219 1 634 9621 634 962 875 200875 200 914 503914 503 970 951970 951
R750 million was allocated under transfers to the Post Bank for the 2003/04 financial year.
The 112 Emergency call centre has been allocated R20 million under capital assets whereas it was part of the transfers in the previous financial year.
DETAILS OF TRANSFER PAYMENTSTransfer to Adjusted
appropriation
2003/042004/05
MTEF
2005/06 2006/07
USA 14 211 15 884 17 500 20 100
USF 24 745 26 230 29 400 31 164
Advanced Institute for ICT 11 000 13 000 7 000 -
ISETT-seta - 2 350 2 800 3 300
Multi-Purpose Community Centres
- 2 000 3 000 3 500
South African Post Office subsidy
1 050 000 300 000 300 000 318 000
SAPO: PIT - 8 480 10 000 10 800
SAPO: Extension of services
- 7 950 8 500 9 000
DETAILS OF TRANSFER PAYMENTSTransfer to Adjusted
appropriation
2003/042004/05
MTEF
2005/06 2006/07
SABC: Public Broadcaster
44 717 47 400 50 455 53 482
SABC: TBVC States
40 000 - - -
SABC: Channel Africa
26 288 27 865 29 616 31 393
Community Radio Stations
9 000 9 540 10 255 10 870
Programme Production
30 100 28 500 31 000 33 200
NEMISA 15 153 16 878 18 163 19 199