1 1 PRESENTATION TO PORTFOLIO COMMITTEE ON HOME AFFAIRS Department of Home Affairs Annual Report 2009/10 12 October 2010

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PRESENTATION TO PORTFOLIO COMMITTEE ON HOME AFFAIRS

Department of Home AffairsAnnual Report

2009/10

12 October 2010

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TABLE OF CONTENTS OF THE PRESENTATION

1. ACCOUNTING OFFICER’S OVERVIEW

• Mandate of the Department

• Three key strategic priorities

• Transformation

• Challenges

2. OVERVIEW OF PROGRAMME PERFORMANCE

• Six Strategic goals

3. ANNUAL PERFORMANCE REPORT 2009/10

• Civic Services

• Immigration Services

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TABLE OF CONTENTS OF THE PRESENTATION

4. OVERVIEW OF FINANCIAL PERFORMANCE

• Expenditure 2009/ 10 Financial Year

• Virement : 2009/10

• General State of Financial Affairs

5. RESPONSE TO THE REPORT OF THE AUDITOR GENERAL

6. WAY FORWARD

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Accounting Officer’s Overview

DHA Annual Report2009/10

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MANDATE OF THE DEPARTMENT OF HOME AFFAIRS

The mandate of the DHA is carried out within the broader mandate and programmes of Government.

The DHA is custodian, protector and verifier of the identity and status of citizens and other persons resident in South Africa.

The DHA controls, regulates and facilitates immigration and the movement of persons through ports of entry. It also services foreign missions; and determines the status of asylum seekers and refugees in accordance with international obligations.

The mandate of the DHA is carried out within the broader mandate and programmes of Government.

The DHA is custodian, protector and verifier of the identity and status of citizens and other persons resident in South Africa.

The DHA controls, regulates and facilitates immigration and the movement of persons through ports of entry. It also services foreign missions; and determines the status of asylum seekers and refugees in accordance with international obligations.

Both civic and immigration functions impact on the security of citizens, other residents and the state.

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THREE KEY STRATEGIC PRIORITIES

1. The first priority was to ensure the integrity and security of the National Population Register (NPR) which contains the identity records of citizens and residents. A key strategy was to ensure that all citizens have birth certificates and those 16 years and above have been issued IDs.

2. The second priority was to ensure that the Department fulfils its guarantees for the 2010 FIFA Soccer World Cup. Preparations had to be made in 2009/10.

3. The third priority was to build on the achievements of the turnaround with regard to transforming service delivery.

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TRANSFORMATION: BUILDING ON THE TURNAROUND GAINS

The Turnaround programme launched in June 2007 resulted in a number of gains that were further entrenched and developed in 2009/ 10, including:

Improvements in the speedier and more secure delivery of key services were extended with the launch of state of the art passport system.

Extension of the Track and Trace and SMS system to births, marriages, deaths

Use of live verification (IDs and passports) and live capture (passports) greatly speeded up service delivery and enhanced security

Improved security features on key documents, such as birth certificates

Ongoing improvements in the processing of asylum seekers and refugees.

Widening access to information and redress to clients.

Launching a “back to basics” project to strengthen financial and related management, controls and systems.

Strengthened Organizational design made more effective by moving from a zonal to a provincial structure.

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SIGNIFICANT CHALLENGES REMAIN

• The uneven quality of front office service delivery culture and staff attitudes remains a serious challenge; together with unequal access to services, especially in rural areas

• Out-dated IT infrastructure and systems, including the lack of a functioning document management system and an old National Population Register system, impacts negatively on operational efficiency and security.

• Pushing back the frontiers of fraud and corruption.

• There are serious gaps in capacity in terms of numbers and quality of staff.

• Policy, legislation and regulations require amendments to respond to current challenges, such as the need to separate economic migrants from asylum seekers

• There is a legacy of contractual issues and litigation against the Department.

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• Strategic Goal 1 : To provide secure, efficient and accessible services and documents to citizens and lawful residents in accordance with national priorities, legislation and international standards

• Strategic Goal 2: To establish and maintain secure, effective, efficient, accurate and integrated data systems

• Strategic Goal 3: To facilitate and regulate the secure movement of people into and out of the Republic of South Africa through ports of entry in the interest of national security and in support of development goals

• Strategic Goal 4: To determine the status of asylum seekers and to regulate refugee affairs in accordance with the Constitution of the Republic of South Africa, national legislation and international protocols

• Strategic Goal 5: To advance cooperation with other government departments and relevant civil society organisations on matters with a focus on improving service delivery and countering corruption

• Strategic Goal 6: To transform the Department of Home Affairs into a centre of excellence for securing and affirming the identity and status of persons and delivering a professional, caring and responsive service

STRATEGIC GOALS

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Overview of Programme Performance

2009/10 Annual Report

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Key Achievements

For

Civic Services and Immigration Services

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Ensuring the integrity of the NPR

• The foundations were laid for the successful launch of the National Population Register (NPR) campaign in March 2010 by the President and Minister in Libode, Eastern Cape. Key activities included:

Putting in place a plan and a national campaign team

Piloting and establishing two (2) Home Affairs Stakeholder Forums

MOUs signed with Health and Education and support obtained from Provincial and Local governments.

Connectivity expanded to a total of 127 hospitals and lines upgraded

Over 41, 000 duplicate cases finalised as a step to cleaning the NPR

Rollout of a media campaign, using local radio and other channels to reach rural, poor and marginalized communities.

KEY ACHIEVEMENTS FOR PROGRAMME 2: SERVICES TO CITIZENS

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Ensuring the integrity of the NPR

• Roll out of Biometric Access Control system that ensures that users of NPR can be traced. This greatly increases security and accountability.

• Piloting of child fingerprinting. This is aimed at securing a child’s identity and processing them securely and rapidly when they are 16 years

Process improvements

• Operations management was rolled out for the births, marriages and deaths.

• Track and Trace was also implemented for births, citizenship, late registrations of birth, amendments and rectifications. This enhanced security and service delivery.

• To assist front offices, Frequently Asked Questions hand-books were provided and a process implementation team provided relevant training.

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New passport system

• New passport production system was implemented at the Government Printing Works (GPW) High Security Printing Facility in Tshwane.

• A new South African passport was also introduced with unique South African quality features and improved security features.

Live capture technology

• Live capture technology implemented at the forty (40) highest volume offices. This technology reduces exchanging of biometric images and the turnaround time to issue passports.

• Manually captured passports have an average turnaround time of 29 days and passports captured through means of live capture technology have an average turnaround time of 14 days. Online verification of fingerprints was also a key factor in speeding up the process.

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Commercial verification• Pilot project was undertaken to assess the feasibility of introducing online fingerprint

verification in banks. Seven banks participated in the pilot.

• An Agreement of Intent was signed between the South African Banking Risk Information Centre (SABRIC) and the Department on 16 March 2010. The Agreement provides SABRIC with the opportunity to verify bank clients against personal information held by the Department.

Online fingerprint verification• During the review period, forty-six (46) additional offices were equipped with this

technology. The total number of offices with online verification by the end of the review period was 273.

• This technology eliminates the need to verify fingerprints manually. The Department can now issue all forms of temporary enabling documents within reasonable turnaround times.

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Late Registration of Births (LRB): On the Spot Adjudication• Review of LRB process was conducted. “On the spot” interviews are now conducted

and the Department managed to substantially reduce the backlog of late registration of births from 86 689 to 21 609 by the end of March 2010.

• In addition to the process review, the Department employed 559 additional contract workers to assist with the processing of LRB applications at front offices.

Stakeholder Forums• Two (2) stakeholder forums were successfully launched in Kwa-Zulu Natal (Sisonke

District Municipality) as well as the Eastern Cape (O R Tambo District Municipality).

Footprint expansion• The Department planned to open 13 new service delivery points during the review

period. A total of 21 new service points were opened. This increases our ability to provide a full time service to rural communities.

• With regard to the Customer Service Centre, 1 509 036 contacts (calls, faxes and e-mails) were attended to during the reporting period. 99% of calls were answered in less than 20 seconds (target in SLA is 80%) with an abandonment rate of 0.74%.

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Achievements: Preparations for the FIFA World Cup

DHA had to ensure that it could fulfil four (4) of the guarantees relating to the 2010 FIFA Soccer World Cup. These related to: (i) Entry and exit permits, (ii) Work permits, (iii) Immigration, customs and check-in procedures, (iv) Telecommunications and IT

residing in DHA. Key activities included:

Implementation of the first ever Event Visa to facilitate the movement of spectators and visitors

Introduction of the Advance Passenger Processing (APP) system for airlines flying into South Africa to screen passengers before they leave

Piloting, in partnership with SARS and other relevant departments, of an enhanced Movement Control System (MCS)

Co-location of a number of land border posts in collaboration with neighbouring countries to speed up the flow of travellers

Greatly improved management and processes at ports of entry.

KEY ACHIEVEMENTS FOR PROGRAMME 3: IMMIGRATION SERVICES

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Admissions

• Separation of front and back office processes through the establishment of a Centralised Adjudication Hub for the processing of Temporary and Permanent Residence Permits to eliminate opportunities for corruption and increased efficiency in the processing of such documents

• Implementation of a Track & Trace System for Permits, which provides

for improved visibility of applications, the tracking thereof, responding to enquiries and assisting with accurate management reporting. The Track & Trace system has been implemented in 15 offices.

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Admissions• The implementation of Advance Passenger Processing went live with

Phase I on 23 November 2009. This phase specifically provides a mechanism to pre-screen travellers at foreign airports prior to the departure for South Africa’s borders

• Adherence to the required target of processing persons within a timeframe of 1.5 – 2 minutes.

• Time-based studies have been implemented at all major international airports as well as primary land ports of entry. This will significantly increase the efficiency of traveller processing. The implementation of the new Movement Control System (MCS) will further assist in this regard.

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Immigration Control• The implementation of the approved Law Enforcement Strategy has led to the

prosecution of 767 transgressors of departmental legislation, of which 588 paid admission of guilt fines.

• Case Management System (CMS) assists the Inspectorate analysis unit with information on immigration investigations and law enforcement operations.

Refugee Affairs• Formal establishment of an office in Musina during February 2010.

• Retained all functionality of an additional Refugee Reception Centre situated at the Tshwane Showgrounds until 31 December 2010. It is noteworthy that all centres are able to sustain an operational requirement of providing appropriate clients with a Section 22 Permit within a single (1) day.

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Overview of Financial Performance

2009/10

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SUMMARY OF EXPENDITURE PER PROGRAMME 2009/10 PER PROGRAMME

PROGRAMMES

FINAL APPRO-

PRIATION

EXPENDI-TURE AS AT

31 MARCH 2010

UNDER/ (OVER-

SPENDING)

% OF BUDGET SPENT

R’000 R’000 R’000

1. Administration 1 282 474 1 282 474 – 100.0

2. Services to Citizen 1 372 353 1 372 353 – 100.0

3. Immigration Services 1 297 105 1 228 730 68 375 94.7

4. Transfers to Agencies 1 311 852 1 311 852 – 100.0

TOTAL 5 263 784 5 195 409 68 375 98.7

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SUMMARY OF EXPENDITURE FOR 2009/10 PER ECONOMIC CLASSIFICATION

SCOA CLASSIFICATION

FINAL APPRO-

PRIATION

EXPENDI-TURE AS AT 31

MARCH 2010

UNDER/ (OVER-

SPENDING)

% OF BUDGET SPENT

R’000 R’000 R’000

Compensation of employees 1 637 058 1 637 058 – 100.0

Goods and services 1 954 529 1 886 154 68 375 96.6

Interest on rent and land 75 336 75 336 – 100.0

Transfers and subsidies 1 320 472 1 320 472 – 100.0

Payment of capital assets 274 418 274 418 – 100.0

Payment of financial assets 1 971 1 971 – 100.0

TOTAL 5 263 784 5 195 409 68 375 98.7

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SUMMARY OF VIREMENT FOR 2009/10 PER PROGRAMME & ECONOMIC CLASSIFICATION

SCOA CLASSIFICATION

ADMINI-STRATION

SERVICES TO CITIZENS

IMMIGRATION SERVICES

TOTAL

R’000 R’000 R’000 R’000

Compensation of employees (2 778) 98 687 (117 915) (22 006)

Goods and services 180 604 (14 042) (266 874) (100 312)

Interest on rent and land 1 714 157 73 465 75 336

Transfers and subsidies 1 388 390 2 235 4 013

Payment of capital assets 5 648 (72 496) 107 846 40 998

Payment of financial assets 1 971 – – 1 971

TOTAL 188 547 12 696 (201 243) –

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MOTIVATION ON VIREMENT 2009/10

Approval was granted by National Treasury to utilise earmarked

funds and capital budget to defray current expenditure as well as

to exceed the eight percent threshold. Funds were utilized for

the payment of contractual commitments and other specific

expenditure.

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GENERAL REVIEW OF STATE OF FINANCIAL AFFAIRS

• Unauthorised Expenditure-R99,833M

• Irregular Expenditure-R321,640M

– Leases R261,426m

– Utilisation of 1 quote R29, 065m

– Non Compliance (National Treasury) R4,872m

– 30% limit on overtime R20,453m

– Acting allowance R5,824m

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GENERAL REVIEW OF STATE OF FINANCIAL AFFAIRS

• MANAGEMENT OF FIXED ASSETS

• CONTINGENT LIABILITIES

– Immigration and Civics Services R414m

– Tenders R1,403bn

– Contracts R5,045bn

• FINANCIAL MANAGEMENT IMPROVEMENTS

• PRIOR MODIFICATIONS TO AUDIT REPORT

• INVESTIGATIONS

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RESPONSE TO THE REPORT OF THE AUDITOR GENERAL

• The Minister in her budget speech indicated that the Department would achieve an unqualified audit within 2 years.

• BASIS FOR QUALIFICATION

– Capital Assets-verification of the existence, completeness and the accuracy of valuation of the capital assets

• EMPHASIS OF MATTER

– Restatement of corresponding figures

– Unauthorised R99,883m

– Irregular expenditure R321,640m

• REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

• INVESTIGATIONS

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As a way forward, the Department based their 2010/ 11 three-year Strategic Plan on achieving three critical outcomes:

1. Secured South African citizenship and identity

2. Immigration managed effectively and securely in the national interest including economic, social and cultural development

3. A service that is efficient, accessible and corruption free

• The priorities for Civic Services are early birth registration to become the only point of entry to a cleaned up and secure National Population register; and to ensure that all citizens are properly documented and have access to secure services.

• The priorities for Immigration Services are to separate economic migrants from asylum seekers; to document all foreigners; and to secure the permitting system.

WAY FORWARD

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• The “Back to Basics” financial management project will be intensified to achieve an unqualified audit.

• Programmes employing change-agents will be implemented to change the values and attitudes of staff in line with the focus on service delivery and meeting the needs of the citizens and other clients.

• Continue the roll out of stakeholder forums across the country by enabling community participation in processes of government.

• Empowerment of staff and communities through robust internal and external communications

• An infrastructure plan will be launched to improve access to DHA services, especially in rural areas, through using a combination of low cost offices, prefabricated units, mobile units and partnerships with other departments.

WAY FORWARD: KEY PRIORITIES FOR 2010/11

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WAY FORWARD: KEY PRIORITIES FOR 2010/ 11

• A number of information system (IS) projects have been identified that will be essential in building secure and efficient systems: document management, including electronic; live capture of biometric data; and integration of systems

• Moving beyond the pilot phase for the fingerprinting of children; and conduct a feasibility study on identification through scanning of irises at ports of entry.

• Strengthening of counter corruption within the DHA through capacitation, systems such as case management; and collaboration with police and security agencies.

• Finalise memoranda of understanding (MOUs) with the SA Social Security Agency (SASSA) and the Department of Human Settlements to provide them with facilities to verify the identity of clients

• Roll out the high security Crew Member Certificate that replaces a paper document with a card on which biometric data is captured on a chip.

• Review legislation in order to improve service delivery and enhance security.

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THANK YOU

SIYABONGA

RE A LEBOGA

Documents

1 1 PRESENTATION TO PORTFOLIO COMMITTEE ON HOME AFFAIRS Department of Home Affairs Annual Report 2009/10 12 October 2010