PRESENTATION TO PORTFOLIO COMMITTEE PRESENTATION TO PORTFOLIO COMMITTEE ON LABOURON LABOUR

PRESENTATION TO PORTFOLIO COMMITTEE PRESENTATION TO PORTFOLIO COMMITTEE ON LABOURON LABOUR

Labour

Mr June Dube Chairperson, TETA BoardMr June Dube Chairperson, TETA Board Dr Johan de Beer Acting CEO, TETADr Johan de Beer Acting CEO, TETA Mr Dalpat Naran CFO, TETAMr Dalpat Naran CFO, TETA

CONTENTSCONTENTS

Annual Report1. Overview

2. Accounting Authority Report. AG: Emphasis of matter

3. GAAP/GRAP. AG: Emphasis of matter

4. Supply Chain Management. AG: Emphasis of matter

5. Performance Information. AG: Emphasis of matter

Management letter1. Special Investigations

- Fidentia

- KPMG

- Other

2. Contractual Obligations

New Issues1. Performance Targets

2. Going Concern

Annual Report1. Overview

2. Accounting Authority Report. AG: Emphasis of matter

3. GAAP/GRAP. AG: Emphasis of matter

4. Supply Chain Management. AG: Emphasis of matter

5. Performance Information. AG: Emphasis of matter

Management letter1. Special Investigations

- Fidentia

- KPMG

- Other

2. Contractual Obligations

New Issues1. Performance Targets

2. Going Concern

Overview: Annual Report 05/06

Dr Johan de Beer

Overview: Annual Report 05/06

Dr Johan de Beer

• Eight Chambers trained 69 412 people (ATR’s Structured learning)

• 207 Large firms, 151 Medium firms and 227 Small firms received grants

• 1 965 workers achieved ABET level 4

• a further 12 912 workers successfully completed learning programmes (skills programmes)

• 818 unemployed learners entered programmes

• Statistical analysis on equity & gender available in the TETA Annual Report 2005 - 2006

• Eight Chambers trained 69 412 people (ATR’s Structured learning)

• 207 Large firms, 151 Medium firms and 227 Small firms received grants

• 1 965 workers achieved ABET level 4

• a further 12 912 workers successfully completed learning programmes (skills programmes)

• 818 unemployed learners entered programmes

• Statistical analysis on equity & gender available in the TETA Annual Report 2005 - 2006

Labour

Overview: Annual Report 05/06Overview: Annual Report 05/06Labour

Chamber Male Female Total Total Disabled

A I C W A I C W

Aerospace 3513 635 1055 6569 3348 667 1076 2490 19353 8

Forwarding & Clearing

1292 635 354 1030 456 414 292 1578 6051 10

Freight Handling

4415 887 1119 1397 496 166 332 534 9346 127

Maritime 1251 239 1491 769 396 101 672 186 5105 11

Rail 7751 576 1903 4725 2642 76 411 446 18530 217

Road Freight

3258 162 311 475 90 52 38 268 4654 21

Road Passenger

2173 41 795 307 284 11 99 42 3752 1

Unknown 1518 198 322 281 97 26 65 114 2621 2

TOTAL 25171 3373

7350

15553 7809 1513

2985 5658

69412 397

Overview: Annual Report 05/06Overview: Annual Report 05/06Labour

Successful TAXI projects in all provinces: - 4 183 learners competent in the Taxi project in

Professional Driving; Customer Care; Business Administration Skills - 900 learners, 100 in each province to be

trained in Professional Driving Skills,

90 Skills development facilitators, or trainers, 10 per province

Overview: Annual Report 05/06Overview: Annual Report 05/06

Training of Small Boat Operators in Communication; Numeracy; Business; Life Skills; Legislation; Fishing; Safety and Survival; < 25 Ton Skipper; Engineering; Pre Sea 4 240 learners trained

Learners were trained in Umtata-169; PE-849; Mosselbay-500; Cape Town-981; Hermanus-1033; Saldanha-349; P/Nolloth-285; Durban-74;

Training of Small Boat Operators in Communication; Numeracy; Business; Life Skills; Legislation; Fishing; Safety and Survival; < 25 Ton Skipper; Engineering; Pre Sea 4 240 learners trained

Learners were trained in Umtata-169; PE-849; Mosselbay-500; Cape Town-981; Hermanus-1033; Saldanha-349; P/Nolloth-285; Durban-74;

Labour

Overview: Annual Report 05/06Overview: Annual Report 05/06

913 employees to benefit through the TETA voucher system, plus 110 unemployed learners from small firms on learnerships to acquire the skills necessary to enter the sector

KwaZulu Natal: 50 unemployed disabled learners through the Warehousing & Distribution Employers Association

Eastern Cape: 120 small truck, bus and taxi operators competent in business skills through the Eastern Cape Department of Transport

913 employees to benefit through the TETA voucher system, plus 110 unemployed learners from small firms on learnerships to acquire the skills necessary to enter the sector

KwaZulu Natal: 50 unemployed disabled learners through the Warehousing & Distribution Employers Association

Eastern Cape: 120 small truck, bus and taxi operators competent in business skills through the Eastern Cape Department of Transport

Labour

Future Plans for TETAFuture Plans for TETA

MOU Finalize with NDoT Directorate Standards in Licensing Standards

K53 Driving License Registered as a Qualification

Testing Officers to be Upgraded to Assessors

Testing Centers become Assessment Centers

Assessment Centers to be Quality Assured

Driving Schools to be Accredited

MOU Finalize with NDoT Directorate Standards in Licensing Standards

K53 Driving License Registered as a Qualification

Testing Officers to be Upgraded to Assessors

Testing Centers become Assessment Centers

Assessment Centers to be Quality Assured

Driving Schools to be Accredited

Labour

Future Plans for TETAFuture Plans for TETA

Full co-operation with Premiers Offices on PGDS in Gauteng; Western Cape; KZN and Eastern Cape

Enhance support and participation in the other Provinces

TETA allocated resources to each province to ensure effective and efficient interaction and integration of projects and action plans

Full co-operation with Premiers Offices on PGDS in Gauteng; Western Cape; KZN and Eastern Cape

Enhance support and participation in the other Provinces

TETA allocated resources to each province to ensure effective and efficient interaction and integration of projects and action plans

Labour

TARGETS NOT ACHIEVED 2005/06TARGETS NOT ACHIEVED 2005/06

Indicator 4.2 – Workplace Experience Grant. 2000 learners to gain experience: 392 assisted. Specific project to

be reported on in 2007

Indicator 4.3 – New Venture Creation 160 learners to complete NVC learnership: Specific project to be

reported on in 2007

Indicator 5.2 – Accredited Providers for New Venture Creation. - 1 institute accredited: Three projects presently running to accredit 6 providers. To be reported on in 2007.

Indicator 4.2 – Workplace Experience Grant. 2000 learners to gain experience: 392 assisted. Specific project to

be reported on in 2007

Indicator 4.3 – New Venture Creation 160 learners to complete NVC learnership: Specific project to be

reported on in 2007

Indicator 5.2 – Accredited Providers for New Venture Creation. - 1 institute accredited: Three projects presently running to accredit 6 providers. To be reported on in 2007.

ANNUAL REPORT 05 / 06: AG: Emphasis of matterANNUAL REPORT 05 / 06: AG: Emphasis of matter

1. Accounting Authority Report :

Financial Statements submitted did not include report of the accounting authority.

Remedial Action:

The CFO responsible for ensuring that relevant information is available for the compilation of the report in a timely manner.

2. GAAP/GRAP Compliance :

Non - compliance PFMA and Treasury Regulation – Financial statements did not comply with GAAP / GRAP. Evidenced by the number of audit adjustments and disclosure changes.

Remedial Action:

Template to be revised and to be used for all SETA’s

1. Accounting Authority Report :

Financial Statements submitted did not include report of the accounting authority.

Remedial Action:

The CFO responsible for ensuring that relevant information is available for the compilation of the report in a timely manner.

2. GAAP/GRAP Compliance :

Non - compliance PFMA and Treasury Regulation – Financial statements did not comply with GAAP / GRAP. Evidenced by the number of audit adjustments and disclosure changes.

Remedial Action:

Template to be revised and to be used for all SETA’s

Annual Report: AG: Emphasis of matterAnnual Report: AG: Emphasis of matter

3. Supply Chain Management Treasury regulation 16A tender evaluation system utilised was incorrect. Remedial Action: The Supply chain management policy approved by TETA Board & implemented. Supply chain management practitioner has been employed.SCM processes and procedures compiled & implemented.

4. Performance Information :Public Audit Act, 2004 and Treasury regulation – non submission of the information related to performance against predetermined objectives. Remedial Action:As companies do not report on a quarterly basis, only once annually through the Annual Training Report the actual verifiable performance information cannot be available by the end of May.

Issue submitted to the Seta Forum level as well as the Auditor General’s Office for further deliberation.

3. Supply Chain Management Treasury regulation 16A tender evaluation system utilised was incorrect. Remedial Action: The Supply chain management policy approved by TETA Board & implemented. Supply chain management practitioner has been employed.SCM processes and procedures compiled & implemented.

4. Performance Information :Public Audit Act, 2004 and Treasury regulation – non submission of the information related to performance against predetermined objectives. Remedial Action:As companies do not report on a quarterly basis, only once annually through the Annual Training Report the actual verifiable performance information cannot be available by the end of May.

Issue submitted to the Seta Forum level as well as the Auditor General’s Office for further deliberation.

SPECIAL INVESTIGATIONSSPECIAL INVESTIGATIONSMr June Dube (Chairman TETA Board)Mr June Dube (Chairman TETA Board)SPECIAL INVESTIGATIONSSPECIAL INVESTIGATIONSMr June Dube (Chairman TETA Board)Mr June Dube (Chairman TETA Board)

Fidentia Investment :TETA had invested R 188 Million with an authorised financial services provider being FIDENTIA ASSET MANAGEMENT (PTY) LTD (FAM).

This financial institution was placed under curator ship by the Cape High Court. The curators investigation is at an early stage but the potential loss to TETA could be the entire investment. Regular updates are received from the Curator on an ongoing basis.

KPMG Forensic AuditA special forensic audit was conducted upon instruction of the TETA Board on the Fidentia matter by KPMG.

In the interest of good corporate governance, the Chief Executive Officer was suspended, pending the final audit report

Fidentia Investment :TETA had invested R 188 Million with an authorised financial services provider being FIDENTIA ASSET MANAGEMENT (PTY) LTD (FAM).

This financial institution was placed under curator ship by the Cape High Court. The curators investigation is at an early stage but the potential loss to TETA could be the entire investment. Regular updates are received from the Curator on an ongoing basis.

KPMG Forensic AuditA special forensic audit was conducted upon instruction of the TETA Board on the Fidentia matter by KPMG.

In the interest of good corporate governance, the Chief Executive Officer was suspended, pending the final audit report

SPECIAL INVESTIGATIONSMr Dalpat Naran (CFO)

SPECIAL INVESTIGATIONSMr Dalpat Naran (CFO)

Internet Bank Fraud Internet Bank Fraud in respect of

R 1 983 357 had been experienced.

The matter had been dealt with Forensic Auditors and Attorneys; resulting in criminal charges.

This Investigation resulted in a recovery of

R 748 508 and the recovery of the balance of

R 1 234 850 is subject to a legal process.

Internet Bank Fraud Internet Bank Fraud in respect of

R 1 983 357 had been experienced.

The matter had been dealt with Forensic Auditors and Attorneys; resulting in criminal charges.

This Investigation resulted in a recovery of

R 748 508 and the recovery of the balance of

R 1 234 850 is subject to a legal process.

SPECIAL INVESTIGATIONSMr Dalpat Naran (CFO)

SPECIAL INVESTIGATIONSMr Dalpat Naran (CFO)

Board Member Travel Claim :

During the year under review an investigation was instituted on claims of Board members.

An irregular claim R4 292 by a Board member was discovered.

As a result this member was removed from the TETA Board, and the funds were recovered.

Board Member Travel Claim :

During the year under review an investigation was instituted on claims of Board members.

An irregular claim R4 292 by a Board member was discovered.

As a result this member was removed from the TETA Board, and the funds were recovered.

EXISTING OBLIGATIONSDr Johan de Beer

EXISTING OBLIGATIONSDr Johan de Beer

With the loss of the Fidentia Investment, concern was expressed with regard to TETA’s ability to continue as a going concern and achieve the targets agreed to in the Service Level Agreement.

• We can confirm that TETA will honour all existing contractual obligation’s in line with targets set with the NSDS.

Effective financial management & cash flow management planning will ensure achievement of both targets and continuation as a going concern.

Since Febr ’07 TETA has honoured all its mandatory grant & discretionary commitments as well as administrative expenses

With the loss of the Fidentia Investment, concern was expressed with regard to TETA’s ability to continue as a going concern and achieve the targets agreed to in the Service Level Agreement.

• We can confirm that TETA will honour all existing contractual obligation’s in line with targets set with the NSDS.

Effective financial management & cash flow management planning will ensure achievement of both targets and continuation as a going concern.

Since Febr ’07 TETA has honoured all its mandatory grant & discretionary commitments as well as administrative expenses

Thank YouThank You