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ANNUAL REPORT2010/2011

Department of Mineral Resources

DEPARTMENT OF MINERAL RESOURCES

GENERAL INFORMATION 31.

Vision and Mission 3

Organisational Structure 4

Legislative Mandate 4

Entities reporting to the Minister of Mineral Resources 5

Minister’s Statement 10

Accounting Of cer’s Overview 12

Publications 14

2. PROGRAMME PERFORMANCE 15

Voted Funds 15

Aim of vote 15

Summary of Programmes 15

Key Strategic Objectives 15

Overview of the service delivery environment for 2010/11 16

Key policy developments and legislative changes 18

Departmental receipts and payments 18

Summary of expenditure per Programme 19

Transfer payments 20

Programme performance 21•

Programme 1: Administration 22•

Programme 2: Promotion of Mine Health and Safety 60•

Programme 3: Mineral Regulation 77•

Programme 4: Mineral Policy and Promotion 87•

TABLE OF CONTENTS

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3. ANNUAL FINANCIAL STATEMENTS 98Report of The Audit commitee 99

Report of the Accounting of cer 101

Report of the Auditor-General 110

Appropriation Statement 114

Notes to the Appropriation Statement 134

Statement of Financial Performance 136

Cash Flow statement 138

Accounting Policies 139

Notes of the Annual Financial Statements 145

Disclosure notes to the Annual Financial Statements 175

Annexures 176

4. HUMAN RESOURCE MANAGEMENT 187

CONTENTS

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Annual Report 2010/11

Vision 2014 A globally competitive, sustainable and meaningfully transformed mining and minerals sector.

Vision 2025A leader in the transformation of South Africa through economic growth and sustainable development by 2025.

MissionPromote and Regulate the Minerals and Mining Sector for transformation, growth, development and ensure that all South Africans derive sustainable bene t from the country’s mineral wealth.

GENERAL INFORMATION

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Organisational Structure

Minister

Deputy Minister

Chief Inspector of Mines

Deputy Director General: Mineral

Policy & Promotion

Deputy Director General: Corporate

Services

Legislative Mandate

The Minerals and Petroleum Resources Development Act, No. 28 of 2002, provides the regulatory framework for equitable access

to and sustainable development of the nation’s mineral resources and related matters.

Deputy Director General: Mineral

Regulation

Chief Financial Of cer

GENERAL INFORMATION

Director-General

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Each of the entities reporting to the Minister of Mineral Resources submits its own annual report to the Minister, which are then tabled

together with the DMR’s annual report. The following is a summary of the highlights and performance of these entities for the year

under review:

i. Mine Health and Safety Council The Mine Health and Safety Council (MHSC) was established in terms of Section 42(1) of the Mine Health and Safety Act, No.

29 of 1996. The Council has the responsibility of advising the Minister of Mineral Resources on occupational health and safety

(OHS) issues at mines and promoting a culture of health and safety in the mining industry. It does so through the development

of OHS research programmes and the development and review of regulations, standards, occupational health and safety

policies and procedures; in order to minimise the occupational health and safety risk in the sector.

MHSC Research HighlightsIn the year under review, the focus of research programmes remained similar to that of the previous year, namely on the

achievement of the OHS Summit milestones. The MHSC, through the research identi cation process, determined that research

was needed in the following areas:

Rock related researchThe increase in seismicity in platinum mines was of concern and required a programme of work to truly understand this

risk. As such, a project was undertaken to evaluate what would be needed to mitigate the risk of seismicity. The work in this

project focuses on establishing some of the fundamentals of the problems, since the platinum sector is relatively “young”

when compared to gold mining operations.

Further to this, the MHSC commissioned a project through the Council for Geoscience to investigate the manner in which the

national seismic network could be integrated with the mines’ local-seismic networks.

SilicosisOn the issue of the eradication of silicosis, the MHSC continued funding the long term programme of work already

commissioned. The focus for the year was on the nalisation of the engineering controls that could be implemented by mines

to eradicate this major problem.

The MHSC also undertook to determine how previous research outcomes could be enhanced to add greater value to the

sector. Part of this effort was an investigation into how the research auditing tool used in SIM 06 06 01 can be further re ned

and made electronically available for use by all relevant parties.

Medical Surveillance ProgrammeThe need for accurate health data was well documented at all levels of the MHSC. As an initiative towards achieving this, the

Council approved a project to investigate a model for a real-time health data system to capture occupational diseases with

the long term goal of tracking trends.

Summit Action Plan and Presidential Audit OutcomesIn addition to the research initiatives, the Summit Action Plan and the outcomes of the Presidential Audit remained a key focus area

for the MHSC. Each of the themes had a set of identi able actions and outcomes.

For the year 2010/11, efforts were focussed on the development of strategies towards the various themes, with particular focus

on the nalisation of a culture transformation framework. The Changing Minds, Changing Mines project is based on a survey

that indicated that OHS culture in the industry was signi cantly more negative than international comparisons. At a workshop in

February 2010, stakeholders developed the nal document which was later submitted to the MHSC stakeholders for approval.

Public Entities Reporting to the Minister of Mineral Resources

PUBLIC ENTITIES REPORTING TO THE MINISTER

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ii. The Council for Mineral Technology Research (Mintek)Mintek was established in terms of the Mineral Technology Act, No. 30 of 1989. It provides research, development and technology

that foster the development of businesses in the mineral and mineral products industries.

The effects of the global nancial crisis, which were somewhat delayed in the case of Mintek, resulted in the organisation

experiencing a loss, for the rst time since 2007, of R2.7 million in the year under review. The main cause of the loss was the

successful conclusion of the ConRoast demonstration phase as there was no major contract that could replace the Jubilee toll

treatment. Further, 46 positions associated with demonstration facility became redundant. Taking this into account, as well

as the nancial position of the organisation and the lack of work due to the economic slump, Mintek had to enter into formal

retrenchment consultations with the National Union of Mineworkers. A decision to retrench 39 staff members was inevitably

reached at the conclusion of the negotiations. Mintek continues to pursue other toll treatment avenues that could result in the

re-employment of the retrenched staff. The effects of the meltdown have now started to diminish and with the renewed interest in

exploration and related activities, as well as various internal cost-cutting measures instituted, the organisation’s nancial position

is expected to improve.

The recent focus on the acid mine drainage (AMD) legacy of mining in South Africa has necessitated Mintek’s re-evaluation

of its SAVMIN process, a technology which the organisation developed in the 1990s to treat AMD. Mintek re-engineered the

technology and, together with Veolia Water Solutions and Technologies, an international water and waste water management

company, the organisation will conduct feasibility studies for a cost comparison with other treatment options before a planned

demonstration plant is developed.

Mintek successfully commissioned a demonstration plant at Harmony Gold Mine’s No 1 plant near Welkom in the Free State

to demonstrate its MetRIX continuous resin-in-pulp (RIP) technology for the direct recovery of uranium from dense slurries.

Preliminary feasibility studies showed that this technology is more cost-effective than conventional methods. The MetRIX RIP

process also offers environmental bene ts as it is capable of treating uranium from low grade ores, such as from existing gold

slimes dams, thereby reducing the uncontrolled leaching of uranium into the environment.

Samples of iron, uranium and manganese ores were tested using sensor-based ore sorting with the aim of demonstrating

the technology’s capability to reduce water and energy consumption in plant ow sheets by dry waste rejection before further

processing. The sorting units, sourced from Commodas/Ultrasort and RADOS, have generated signi cant commercial interest.

A project, which was funded by the DMR and managed by Mintek, to rehabilitate derelict and ownerless mines across the country

was concluded at old asbestos mine at Prieska in the Northern Cape Province. Similar asbestos mine projects are ongoing at

Penge, Lusikisiki, Osizweni and Heuningvlei, and an additional ve sites have been identi ed for rehabilitation.

Through Mintek’s second economy interventions 86 people, some living with disabilities, were trained and received certi cates

at eight pottery projects in the North West Province. Eighty-nine people from historically disadvantaged communities were also

trained in modules of small scale mining in the Free State, Mpumalanga, the Western Cape and KwaZulu Natal.

Mintek’s quality, environment, safety and health (QESH) have been re-certi ed by independent auditors to meet the requirements

of quality (ISO 9001:2008), environment (ISO 14001:2004), and safety and health (OHSAS 18001:2007) after its QESH

management systems underwent a combined surveillance audit. Laboratories in the Hydrometallurgy and Analytical Services

divisions were also audited against the requirements of ISO17025 for testing and calibration laboratories, and retained their

accreditation.

iii. The Council for Geoscience The Council for Geoscience (CGS), established in terms of the Geoscience Act, No. 100 of 1993, is the national agency that

is tasked with the systematic development and maintenance of the national geosciences knowledge infrastructure for both the

onshore (land) and offshore (oceans) environment of South Africa.


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Geoscience Amendment ActAmendments to the Geoscience Act were passed by Parliament and signed by the President in December 2010. The Council

for Geoscience is currently compiling the Act’s regulations, which will be nalised in the new nancial year. The Act with its

regulations contains important procedures to better manage the sustainable development on dolomitic land that is susceptible to

sinkholes and subsidences. The amended Act also stipulates procedures for the submission of relevant geoscienti c data to the

Council for Geoscience to ensure that this information will be used to enhance other geoscienciti c research programmes and

mineral investment and exploration in the country.

Acid Mine DrainageThe Council for Geoscience led and coordinated the compilation of team of experts’ report to the Inter- Ministerial Committee on

Acid Mine Drainage, from which a series of important recommendations were made to address acid mine drainage for the gold-

producing regions of the Witwatersrand. The Council for Geoscience will continue to focus on research to reduce the impact of

acid mine drainage, not only in the Witwatersrand but also in the coal-producing areas of the country. In this regard, the Council

for Geoscience, along with partners from a number of European and Asian countries are undertaking research studies in South

Africa, the Czech Republic and Kyrgyzstan to enhance understanding of acid mine drainage in various geological terrains.

Rehabilitation of derelict and ownerless mines: Coal mines in Mpumalanga During 2011 the Council for Geoscience intends to begin developing rehabilitation plans for a number of derelict and ownerless

mines, with the initial focus being on coal mines in Mpumalanga. Most of these sites have related acid mine drainage problems

and the proper management and mitigation of these impacts will form an important component of the project.

Seismic Activities on Mines - Mine Safety Research ProgrammeThe Council for Geoscience, in collaboration with the Mine Health and Safety Council, has made signi cant progress in a project

aimed at reducing the injuries and mining fatalities associated with seismic activity on our deep gold mining operations. The initial

phase involves the integration of the mining seismic network with the Council for Geoscience’s national network. This will assist

in assessing earthquake-related hazards in our mines, which in turn will reduce the associated injuries and loss of life.

Coal Resources of South AfricaThe Council for Geoscience is undertaking an assessment of the coal resources and reserves of South Africa in collaboration

with Eskom, which is set for completion by end of 2011. This signi cant study will indicate the localities and magnitude of the

remaining resources and reserves, which is of great importance for the planning of infrastructure for future exploitation of these

reserves. The results will inform planning of power stations, industrial complexes, town planning, water supply, roads and railway

lines. The study will also be of paramount importance in ensuring that the country does not run out of this important commodity.

The last comprehensive study and assessment of South Africa’s coal resources was conducted in the 1970s and the lack of

scienti cally derived resource gures has made management and planning of this resource dif cult.

Mineral Exploration in South AfricaAs part of its contribution to attract investment and grow the South African exploration and mining sector, the Council for

Geoscience embarked on a number of research programmes. One such programme was the investigation of the availability

of the strategically important metals such as rare earth metals. These metals have a number of signi cant uses, including

use in permanent magnets in computers, wind turbines, mobile phones and batteries for hybrid cars. The programme is being

undertaken in collaboration with counterparts from Japan and will continue in the 2011/12 nancial year.

The Council for Geoscience has also embarked on an ambitious programme to review the geochemical data for the entire

Bushveld Complex with the view of identifying further potential mineral targets. This programme is expected to be almost

completed by the end of the 2011/12 nancial year.

Sustainable utilisation of coal and gas and addressing global warming The Council for Geoscience was a lead party in producing the Atlas on the Geological Storage Potential of South Africa, which

was released to the public in September 2010. It explains South Africa’s energy economy, the requirements for the safe storage


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of carbon dioxide and where South Africa’s storage potential lies. The atlas is intended for a broad public readership and captures

fundamental knowledge on the topic of the potential for geological storage of carbon dioxide in the country.

The Council for Geoscience is also currently involved in three important climate change projects to examine the past changes

of palaeoclimate in order to understand future climate change forecasts. One of the projects is particularly important, as it uses

geological records from the Kalkkop Crater Lake near Graaf Reinet showing high resolution seasonal variations of various

climatic indices.

A DMR task team has been set up to assess the potential of extracting gas from shales in the Karoo Basin. It is expected

that the Council for Geoscience will contribute signi cantly to the geological understanding of this gas resource as well as the

environmental aspects in respect of its potential extraction.

Geological Mapping of South Africa’s Offshore Territories The Council for Geoscience has almost completed a business case analysis for South Africa to implement a national offshore

mapping programme. Knowledge of the seabed in South Africa’s current territory of 1.54 m km2 is extremely low and this territory

could potentially be extended to 3.42 m km2 through the UN Commission on the Limits of the Continental Shelf.

Our offshore region is becoming increasingly important for a host of activities and resource exploitation including mineral

exploration and extraction, energy resources (renewable and non-renewable), commercial and recreational shing, coastal

engineering, environmental conservation, transport and navigation, microbial resources and academic research. These sectors

require detailed knowledge of the seabed, a need which the proposed offshore programme would address.

iv. The South African Diamond and Precious Metals Regulator The South African Diamond and Precious Metals Regulator (SADPMR) was established in terms of the Diamonds Act 1986 as

amended and the Precious Metals Act, No. 37 of 2005. The South African Diamond Board ceased to exist on 30 June 2007 and

the South African Diamond and Precious Metals Regulator came into effect on 1 July 2007. The Regulator took over the mandate,

functions, staff and all assets and liabilities of the Diamond Board. The Regulator is now responsible for the regulation of the

South African diamond, platinum and gold sectors. It is funded, in terms of Act, through a state grant, as opposed to the Board

which generated its own funding from levies and licence fees of site holders.

Diamond Bene ciationRelative to calendar year 2009, in which crisis in the industry was most felt, diamond bene ciation in South Africa recorded a 30

percent growth in 2010. An estimated 280 000 carats of rough diamond (valued at an estimated US $350 million) were subject to

cutting and polishing during the year, compared with 210 000 carats of rough diamonds (valued at an estimated US $290 million)

in 2009.

Polished diamond exports are estimated to have grown from around 134 900 carats (valued at an estimated US $600 million) in

2009 to an estimated 159 000 carats (valued at an estimated US $460 million) in 2010.

However, according to statistics from the Bargaining Council for the Diamond Cutting Industry, employment in diamond cutting

remained at some 1200 in 2010.


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v. The State Diamond Trader The State Diamond Trader was established in terms of the Diamond Act, No. 56 of 1986, as amended, to ful l the following main

functions: to promote equitable access to and bene ciation of diamond resources, to address distortions in the diamond industry

and correct historical market failures, and to develop and grow South Africa’s diamond cutting and polishing industry. The State

Diamond Trader commenced its operations in September 2007.

HighlightsAs the diamond markets emerged from the global economic recession of 2008/09, the State Diamond Trader (SDT) was able to

capitalise on the spurts of growth that took place and strengthened its trading ability throughout the nancial year. A heightened

reaction was employed by the SDT through its Interim Sales Strategy, yielding a number of positive results.

In terms of purchasing, the SDT increased the purchasing of rough diamonds using its own revenue, saving signi cant costs

related to loan funding and managed to purchase 9% by volume (carats) and value. On the sales side, a total of 60 clients made

purchases from the SDT, compared to 34 who in the previous year, which contributed to an increase in turnover from R300 million

last year to R810 million, with a R36 milion gross pro t.

In addition, the SDT facilitated business management training for some of its small clients and held client information sessions

where clients were able to interact with Board members on any matter pertaining to their relationship with the SDT.

The SDT also made improvements to its operational ef ciency. Operational expenditure was streamlined, contributing to the

increased pro t return, and a Stock Holding Policy was developed, with targeted turnaround time of stock being achieved. The

existing producers supplying rough to the SDT were maintained with improved compliance.

Four (4) Diamond Trainees who were jointly employed with the DMR were trained throughout the year and four more trainees will

be trained in the coming nancial year. The seconded personnel from both DMR and De Beers continued to provide invaluable

contribution to the operations of the SDT.

ChallengesThe lack of state funding and the nalisation of its own funding model remain signi cant challenges. The other challenge that

continues to pose itself is the purchasing of rough diamonds on a run of mine (ROM) basis, which demands proactive and

innovative selling measures on the part of the SDT.


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It gives me great pleasure to present the Department of Mineral Resources Annual Report for the 2010/11 nancial year.

The year under review has been monumental for the Department. With the DME split that established us as a separate department now behind us, the DMR set about rede ning the way it does business so as to make a positive contribution to the transformation and development of the mining industry.

Perhaps the highlight of the year was the implementation of the improved cadastre online system which replaced the outdated National Mining Promotion System. This exercise was key to addressing operational shortfalls and improving ef ciencies, which was a major focus of the year under review.

As part of this effort, we imposed a moratorium on new applications for prospecting rights while a new system was developed. This gave us time to take stock of our progress since the promulgation of the Minerals, Petroleum Resources Development Act in 2004.

MINISTER’S STATEMENT

The period of the moratorium, which ended on 31 March 2011, throughout our country, except Mpumalanga provided the time needed to get a clearer picture of our operational and systems shortfalls. For this I would like to thank the Director General who championed this project with zeal and dedication, as always. He put together a formidable team to work on this challenge, and the expertise of the team members has been greatly enhanced through this project.

During the moratorium period, the Mineral Regulation Branch was able to conduct inspections on all issued Prospecting Rights with 3266 inspections conducted from a planned 3507.

The Department has now become committed to more stringent monitoring and enforcement of compliance. The provisions of Sections 47 and 93 of the Act are being used more effectively and any mines contravening the terms and conditions of their rights will have their licences suspended or even cancelled.

As a result of the inspections, 434 Section 47 statutory notices, or notices of intention to cancel rights, were issued to rights holders who have failed to commence with prospecting activities within the legislated 120 days. The reason given was generally the lack of access to nancial resources needed to commence with prospecting activities. In the diamond sector, we have found rights holders who have been utilising prospecting rights to mine with/without section 20(2) of the MPRDA permissions with the intention of avoiding the implementation of social and labour plans.

A total of 713 Section 93 statutory orders were issued to rights holders who were found to be operating outside of their approved environmental management plans and prospecting work programmes; who did not review or make adequate nancial provision to remedy environmental degradation; who had not submitted annual performance information; or who had not paid prospecting fees.

I had indicated the intention to reduce the time it takes to apply for prospecting rights as well as mining rights. Through the improvement of the system, this is now a reality. The system was inundated in the rst few hours of going back online, and we continue to learn and improve it to make it easier for potential investors to take part in our mining industry.

I have also been humbled by the spirit of trust we have engendered among our key partners, labour and organised business, with whom we spent countless hours in meetings sharing our expertise in order to enhance the industry and the role it plays in our economy.

With our Mining Industry Growth, Development and Employment Task Team (MIGDETT) partners, we engaged in international roadshows and presented one voice to sometimes sceptical investors who had heard unfavourable stories about our business model. I am pleased to report that even though it was an uphill battle we managed to give a healthy picture of the opportunities and bene ts of doing business in this country and that the seeds we planted found some fertile ground.

Minister Susan Shabangu

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MINISTER’S STATEMENT

We believe that the Department continues to create an enabling environment for our country to take advantage of the commodities boom currently underway.

One of the other notable achievements for the Department was the development and ultimate endorsement of the bene ciation strategy by Cabinet. The strategy provides a framework for the orderly development of the country’s mineral value chain. This strategy will support the New Growth Path and National Industrialisation Policy Framework, both of which seek to put the country on a production-based, labour-absorptive growth trajectory.

Other critical areas that remain high on the agenda include the mining sector strategy, the migration of the state-owned mining company into DMR and the nalisation of the strategy to deal with small-scale miners.

We have given an undertaking to improve the construct of the MPRDA and other legislation within our ambit. While these pieces of legislation are robust, the principal Act has presented areas of ambiguity which have led to different interpretations. The objectives of the amendment are to improve the current construct of the Act to remove ambiguities, make provision for a comprehensive consultation process, make provision for enhanced punitive measures, streamline the licensing processes and provide for a single regulatory authority.

Parallel to the strategy adoption process, work has began on developing a steel value chain intervention plan that will mitigate the value chain speci c and cross cutting constraints identi ed in the strategy.

Work on rehabilitation of ownerless and derelict mines continues unabated. These mines pose signi cant environmental, health and safety risks to neighbouring communities, as they, among other things, pollute ground and river water systems. The primary aim of rehabilitation is permanently to eliminate the environmental damage by restoring the land impacted by the mining activity to a sustainable usable condition.

This includes the concept of minimising loss of land use capability and provides tangible bene t to our society. The secondary aim is to return the disturbed area to an ecologically stable environment which is in equilibrium with its immediate surroundings and, to this end, ve derelict and ownerless mine sites were rehabilitated in the 2010/11 nancial year.

Turning to the issue of mine health and safety, I am still very gravely concerned about the continued carnage on our mines. It appears that most of these fatalities are related to increased production in the gold and platinum sectors which is being compounded by the lack of improvement in cases of TB, silicosis, as well as noise induced diseases.

Accordingly we are currently reviewing the Mine Health and Safety Act in order to strengthen enforcement of safety in our mines whilst removing any ambiguities.

As we did this past year, we have set ourselves what many may consider steep targets for the nancial year to come, but we believe they are attainable.

Again, I would like to thank the team under the astute stewardship of Advocate Sandile Nogxina for their immense contribution to the attainment of the targets we had set for ourselves. The future looks bright because of their good work.

This annual report is tabled for your consideration.

Ms Susan Shabangu, MP

Minister of Mineral Resources

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It is my pleasure to present the Annual Report of the Department of Mineral Resources for the 2010/2011 nancial year.

The performance of the mining industry for the period 2010 demonstrated signi cant recovery from the preceding implosion caused

by the global economic and nancial crisis. In this regard, the aggregated extraction rate grew at a phenomenal 5.8% relative to a

contraction experienced in the preceding year. This performance con rms our view that recovery is now well underway and that the

next commodities boom has begun in earnest.

Simultaneously, employment in the mining industry shrunk by 5.1% in 2009, although in the same period employment of women

grew by a staggering 11%. The employment of women in the sector started from a low base, indicating that efforts to diversify the

workforce are beginning to bear fruit. In 2010, total employment grew by 1.2%, with women employment growing by a further 15.6%.

Total employment in mining reached 498 055, falling marginally short of the threshold of half a million jobs.

Employment in mining continued to grow during the year, and will continue to do so in the future, given the current interventions.

These are aimed at positioning this industry along a sustainable growth trajectory resulting in the further creation of decent jobs, in

line with the national developmental priorities. These interventions include the development of a national mining sector strategy, the

Bene ciation Strategy as well as the revised Mining Charter.

The management of derelict and ownerless mines is a key deliverable of the Department given the serious challenges that the

ACCOUNTING OFFICER’S OVERVIEW

country is facing from such mines. An important milestone in the evolution of addressing this legacy has been the development

and approval of a strategy for the rehabilitation of these derelict and ownerless mines. This strategy makes provision for a policy

framework for the management and amelioration of the negative environmental and health impact of these mines.

This plan presents a programme of work to be undertaken on an annual basis with identi ed activities which are buttressed by

the funding requirements propelled by a clear risk pro le. Employing the limited nancial resources available, the Department

rehabilitated ve sites during the 2010/11 nancial year, creating a total of 221 employment opportunities. Ten sites have been

prioritised for the next nancial year and work is currently already underway to give priority to sites that are posing high risks to

communities as well as those that are likely to have a negative impact on the surrounding ecosystems.

Over and above the utilization of the funds allocated from the scus, the Department is working towards concluding a strategic

partnership agreement with the Department of Public Works. This will be executed through the Expanded Public Works Programme

(EPWP) with a speci c focus on the environment and the Culture Sector Incentive Programme. This is being done in a bid to ensure

that, as we eradicate the environmental blight, we simultaneously contribute to job creation as well as to tap into other nancial

resources that are available within the public sector to achieve the outcomes of this programme.

During the 2010/11 nancial year one of the objectives of the Department was to grant 27 mining rights to historically disadvantaged

South Africans (HDSAs) and we eventually granted, to these groups, 117 mining rights. In the case of women-led entities, 30 rights

were granted compared with the initial target of 18. 32 MPRDA workshops were held, against a planned target of 10, and this was

done in order to engage and promote interaction with stakeholders which assisted in promoting the objective of the MPRDA.

South African Mineral Resources Administration System (SAMRAD)The process of developing an integrated electronic system commenced during the 2010/11 nancial year. The system allows for the

integrated management of information and has consequently improved the management of the administrative process underpinning

our licensing regime. Due to the limitations of the National Mining Promotion System, a decision was consequently taken to expand

the new electronic management system within the Department, starting with the Mineral Regulation branch.

The mandate was for the Mineral Regulation Branch rstly to develop a transparent online application system that makes it possible

for the public to freely view the spatial locality of applications in terms of the Mineral and Petroleum Resources Development Act,

“MPRDA” (Act 28 of 2002). This would enable applicants to check the status of their applications. Secondly the branch was to develop

a system that eliminates the risk of spatial errors; and, thirdly, to ensure that uniform standards and procedures are implemented

when processing applications. The system was developed and subsequently launched in the rst half of 2011.

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ACCOUNTING OFFICER’S OVERVIEW

The Department conducted 189 Mining Charter compliance inspections against the initial target of 140. This was necessitated

by the deliberate decision of the Department to shift the strategic focus to monitor the compliance of holders of rights. In the area

of environmental management, the Branch conducted 3006 compliance inspections against the initial target of 1380. This gure

includes inspections that were conducted during the period of the moratorium.

During the year under review we recorded the lowest number of fatalities in the history of the mining industry. A total of 127 persons

lost their lives compared to 168 of the previous year. Although there has been marginal improvement, the Department is still

concerned about the continued loss of life at our mines.

It is a matter of fact that there are more deaths in the mining industry as a result of occupational health diseases rather than

occupational injuries.

The Department will continue to take a hard stance against unsafe working conditions. Accordingly heads of these institutions will be

engaged to ensure that appropriate steps are taken to improve safety in their operations.

CONCLUSION

I would like to thank, most sincerely, all members of staff who have made an invaluable contribution to the excellent manner in which

we have executed our responsibilities during the nancial year covered by this report. We have no doubt that our efforts to improve

the working conditions of our employees will continue to reward us as we face an exciting and yet challenging future.

Mr E Ragimana

Acting Director General

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PUBLICATIONS

Reviews27th Edition of South Africa’s Mineral Industry (SAMI) 2009/2010•

Information CircularsMB Bulletin Trimester Vol. 23 Issue 1 of 3 2010

Vol. 23 Issue 2 of 3 2010

Vol. 23 Issue 3 of 3 2010

DirectoriesD1/2011: Operating mines and quarries and mineral processing plants in the Republic of South Africa •

D6/2010: Platinum-group metal mines in SA •

D7/2010: SA diamond hand book and operating diamond mines directory•

D11/2010: Producers of industrial mineral commodities in South Africa•

D12/2010: Operating and developing Black Economic Empowerment mining companies •

StatisticsMinerals - South Africa: Statistical Tables 1988 – 2009•

Mineral Production and Sales Statistics (Monthly and Annually)•

Bulletins/ ReportsR1/2010 Information on how to start a mine •

R59/2010 An analysis of SA’s mining contribution to the national economy•

R39/2009 Investment in a selection of South Africa’s mineral sector•

R85/2010 Lime industry in South Africa•

R86/2010 Chromium industry developments•

R87/2010 Ceramic industry in South Africa•

R88/2011 Overview of the cobalt industry in South Africa 2000-2009•

R89/2010 Refractory clays industry in the Republic of South Africa•

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PROGRAMME PERFORMANCE

2.1 Overall Performance

AppropriationMain AppropriationR’000

Adjusted Appropriation R’000

ActualAmount Spent R’000

Over/Under ExpenditureR’000

1,030,016 995,842 994,697 1,145

Responsible Minister Minister of Mineral Resources

Administering Department Department of Mineral Resources

Accounting Of cer Director-General of Mineral Resources

2.1.2 Aim of the Vote

The aim of the Department of Mineral Resources is to promote and regulate the minerals and mining sector for transformation, growth

and development and ensure that all South Africans derive sustainable bene t from the country’s mineral wealth.

2.1.3 Summary of Programmes

Programme 1: AdministrationPurpose: Strategic support and management services to the ministry and department.

Programme 2: Promotion of Mine Safety and HealthPurpose: Ensure the safe mining of minerals under healthy working conditions.

Programme 3: Mineral RegulationPurpose: Regulate the minerals and mining sector to promote economic development, employment and ensure transformation and

environmental compliance.

Programme 4: Mineral Policy and PromotionPurpose: Develop relevant mineral policies that promote South Africa’s mining and minerals industry in order to attract investment.

2.1.4 Key Strategic objectives

At the 2010/11 annual strategic planning session, the Department developed the following strategic objectives in support of the

revised mission and vision. The session was also used to anchor the mission, vision and strategies to broad government imperatives

of poverty eradication, transformation of our economy and society, social justice, reconstruction and development.

1. Actively contribute to sustainable development - promote sustainable resource management and contribute to skills

development and the creation of meaningful and sustainable jobs.

2. Promote and transform the minerals sector

i. Promote and facilitate value addition to mineral resources extracted in the Republic.

ii.Redress past imbalances through promoting investment, broader participation in the minerals sector, direct intervention

in communities, and increased BEE and SMME participation inclusive of women, youth and the disabled.

3. Regulate the minerals sector - developing new policies, reviewing of existing policies and amending legislation to make them

current to evolving an environment and achieving transformation in the minerals and mining industry.

2.1.1 Voted Funds (2010/11)

PROGRAMME PERFORMANCE: OVERALL PERFORMANCE

15


4. Promote health and safety in the minerals sector - provide clear policy and regulatory framework to manage health and

safety risks and promote best practice in the mining sector.

5. Protect the environment – promote the reduction of the impact of mining activities on the environment and public health

through management of rehabilitation of ownerless and derelict mines, research and development in mine environmental

management and development of mine environmental policies.

6. Ef cient and effective service delivery - develop and review internal processes, understand stakeholder needs and improve

turn-around times.

7. Enhance DMR culture, systems and people - attract, develop and retain appropriate skills, promote good organisational

culture and make the Department an employer of choice.

8. Ensure long term nancial stewardship – ensure optimal utilisation of resources, manage budges effectively, implement risk

management strategies and promote corporate governance.

2.1.5 Overview of the service delivery environment for 2010/11

Following the split of the Department of Minerals and Energy into two Departments, namely the Department of Mineral Resources and

the Department of Energy, and the subsequent internal restructuring of the two departments, the Department of Mineral Resources is

pleased to con rm that the process went smoothly, with only minor challenges. All the line and support services functions have settled

well and have established systems that have continued to align service delivery with the electoral mandate and strategic priorities.

In January 2011, following the Cabinet Lekgotla, the President made a call to all national departments to ll vacant funded posts by

June 2011. The Department heeded the call and can safely con rm that it has made signi cant progress in this regard.

Mine Health and Safety

The safety track record in the South African mining industry continues to be a matter of great concern to the Department, although

the mining industry has in the last year managed to record a year-on-year reduction in fatalities due to mine accidents. A total

of 127 mine employees died in 2010, compared with 168 fatalities in 2009. Fall of Ground (FOG) accidents remains the largest

accident category and the predominant cause of fatalities, followed by transportation and machinery categories respectively.

Occupational health impacts are not immediate and hence dif cult to quantify. Silicosis remains a major cause of premature

retirement and death at South African mines, due to excessive dust exposure. On the other hand, tuberculosis (TB) continues to

be a serious challenge for the mining industry and this is exacerbated by HIV and AIDS. Noise Induced Hearing Loss (NIHL) is

also a signi cant health hazard due to exposure to high levels of noise in workplaces.

Disaster-type AccidentsAn underground re was detected at Harmony’s, Phakisa Mine in the Free State and two proto teams were sent down to

investigate. An explosion took place in which three members of the proto teams were fatally injured and another two members

subsequently died from their injuries. During May 2010 a FOG accident killed three mineworkers at Simmer & Jack, #5 Shaft in

the Stilfontein vicinity. Another massive FOG was responsible for the death of ve mineworkers at Aquarius, Marikana Mine close

to Rustenburg.

HIV/AIDS and Occupational HealthA new Chief Directorate was established within the Inspectorate to focus on occupational health, as more people are dying from

occupational diseases than from occupational injuries within the South African mining industry. Silicosis is still of major concern,

especially in the gold mining sector. Research conducted through the Mine Health and Safety Council (MHSC) is focused on

ways of reducing excessive exposure to silica dust to prevent silicosis.


16


Tuberculosis (TB) remains the main occupational health challenge within the South African mining industry. This picture has not

changed over many years and the situation has been aggravated by HIV-infections. The Department has commissioned the

National Institute of Occupational Health (NIOH) to conduct a study on HIV and TB in the mining industry in terms of prevalence

and incidence. The nal report has been completed and will be discussed during an HIV/TB Summit to be held during 2011.

Mineral Regulation

On 31 August 2010, the Department, after having invited and considered representations from relevant stakeholders, imposed a

moratorium under section 49(1) of the Mineral and Petroleum Resources Development Act, on new applications for prospecting

rights in terms of section 16 of the MPRDA, for a period of six months with effect from 1 September 2010 until 28 February 2011.

This moratorium did not affect the processing of existing prospecting rights applications received before 01 September 2010, or

the renewals thereof.

The primary objective of the moratorium was to allow the Department to:

a) Conduct a thorough audit on all granted and issued prospecting rights to verify all prospecting activities per right through

compliance inspections.

b) Audit how many of the 3507 applications for prospecting rights received and processed in fact graduated into impactful

mining rights.

c) Conduct veri cation on all prospecting rights that have lapsed, in order to ensure whether closure certi cates were

issued.

d) Clean up the backlog in respect of all applications on the system.

e) Clean up the National Mining Promotion System (NMPS) to ensure accuracy and reliability of information on the system,

prior to its migration to SAMRAD.

f) Align the reduction of newly set timeframes with SAMSHA in order to comply with the MIDGETT commitments.

g) Align the above processes with the mining charter review process.

After a period of six months, the Department amended the initial moratorium period of six months to add another month in respect

of eight regions, with the exception of the Mpumalanga Region. In respect of Mpumalanga Region, the moratorium was extended

until 30 September 2011 in order to allow the Department to fully ful l the objectives of the moratorium.

Mineral Policy and Promotion

During the 2010/11 nancial year, two Directorates – the Mine Occupational Safety Policy and Mine Occupational Health Policy

– were moved from the Mine Health and Safety Inspectorate to Mining and Mineral Policy Development. The move was intended

to ensure that all policy development and related work is located within one section of the Department.

The International Coordination Directorate also shifted from the Corporate Services Branch to the Mineral Policy And Promotion

Branch during the latter part of the nancial year. This move was designed to reinforce the promotional aspect of the Department

in terms of encouraging investments from strategic countries that South Africa has established partnerships with.


17


2.1.6 Key policy developments and legislative changes for the 2010/11 nancial year

Amendments of both the Mineral and Petroleum Resources Development Act (MPRDA) and the Mine Health and Safety Act (MHSA)

will be undertaken during 2011/12.

The review of the MPRDA seeks to improve the current construct of the Act, remove ambiguities, make provision for clarity for

consultation processes, enhance punitive measures of the law and streamline the licensing processes including making provisions

for the regulation of the environment in respect of minerals and mining.

The MHSA is being reviewed to strengthen enforcement provisions, simplify the administrative system for issuing of nes, increase

penalties for offences, substitute and remove ambiguities and effect certain amendments for consistency with the MPRDA.

A comprehensive assessment of the outcomes of the Mining Charter as reported in our previous annual report revealed a lack of

compliance by the mining industry with the implementation of the objectives outlined therein. To overcome the inadequacies, the

Mining Charter was subsequently amended and gazetted late last year. The mining industry will have to comply with the requirements

of this document and the rst compliance reports from mining companies following the Charter review are due at the end of June of

the next reporting period.

We had reported the tabling of the Geoscience Amendment Bill Act, No. 16 of 2010 in our last report. This piece of legislation was

assented to and signed by the President at the end of last year.

Several strategies and guidelines relating to environmental management have been drafted and are awaiting approval. They will

assist to streamline environmental management in the Department and place the Department in a more positive light with regard

to clear environmental direction. These include the Mine Environmental management series which contains guidelines for EIAs,

monitoring and closure as well as the regional mine Closure Strategies to provide guidance on the management of water at a regional

scale in the different mining areas.

2.1.7 Departmental receipts and payments

DEPARTMENTAL RECEIPTS

2006/07 2007/08 2008/09 2009/10 2010/11 2010/11 Deviation

Actual Actual Actual Actual Target Actual from Target

R'000 R'000 R'000 R'000 R'000 R'000 R'000Sales of goods and services

1,812 3,362 5,638 5,512 2,739 2,167 -571

Transfers received 466,511 - - - - - -

Fines, penalties, forfeits 458 218 112 382 470 531 61

Interests, dividends, rent

88,515 244,126 256,089 210,791 95,055 26,978 -65,256

Financial transactions 242 20,599 2,808 459 769 626 -143

TOTALS 657,538 268,305 264,647 217,144 99,033 30,302 68,731


18


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19


Name of Institution Amount Transferred R'000

Council for Mineral Technology (MINTEK) 165,840

Council for Geoscience (CGS) 136,505

Mine Health and Safety Council (MHSC) 5,358

South African Diamond and Precious Metals Regulator (SADPMR) 40,643

Totals 348,346

MTEF transfers to the state owned entities (SOEs) reporting to the Minister of Mineral Resources:

Other transfers to SOE’S reporting to the Minister of Mineral Resources:

Name of Institution Reason for TransferAmount Transferred R'000

Industrial Development Corporation of South Africa Small Scale Mining 23,609

Council for Mineral Technology (MINTEK)Rehabilitation of Ownerless and Derelict Mines

30,000

Council for Geoscience (CGS)Implementation of the Water Ingress programme

32,671

Totals 86,280

Transfers to other organisations:

Name of Institution Project Amount Transferred R'000

Grootvlei Proprietary Mines 3,000

Totals 3,000

2.1.9 Transfer Payments


20


The activities of the Department of Mineral Resources are organised in the following programmes:

Programme 1: Administration

Programme 2: Promotion of Mine Health and Safety

Programme 3: Mineral Regulation

Programme 4: Mineral Policy and Promotion

2.2 Programme Performance


21


PROGRAMME 1: ADMINISTRATION Purpose: To enable the Department to deliver on its mandate by providing strategic support management services and administrative

support to the Ministry and the Department of Mineral Resources.

Corporate Services BranchHeaded by the Deputy Director-General: Corporate Services, the Branch consists of ve Chief Directorates:

Human Resources Management;•

Communication and International Co-ordination;•

Special Projects and Programmes;•

Strategy, Risk and Monitoring; and•

The Ministry (administrative support).•

Service Delivery: Achievements, Objectives and IndicatorsThe President’s announcement of the split of the Department of Minerals and Energy into two independent departments came soon

after the nalisation of the DME’s 2010/11 strategic plan. Among the decisions taken were the restructuring of Corporate Services and

the repositioning of Human Resources as a priority focus area to address capacity challenges accumulated over a number of years

as the size of the Department increased. The government-wide restructuring process focused on the use of internal resources and

used minimal internal capacity to restructure and reposition these critical functions.

Some of the planned projects were put on hold until the nalisation of the split (as indicated in the tables below). By the end of the

2010/11 nancial year, the split of the Department of Minerals and Energy into two independent departments, namely the Department

of Energy and the Department of Mineral Resources, had been completed. The two new departments became operational on 1 April

2010, each with its own budget, budget vote, personnel and accommodation. In light of the above, Corporate Services has managed

the transition fairly well with only minor hiccups. All systems that were put in place have had a positive impact in the smooth running

of the Department.

i Chief Directorate: Human Resource Management Services The Chief Directorate: HRM services is responsible for rendering a management support service to the Department. It provides

services relating to organisational development, human resource planning and policy, human resource administration and

practices, human resource development as well as employee relations management to line function components. The CD: HRM

services’ primary focus is on capacity building with the view to ensuring alignment between the Departmental service delivery

imperatives and its new mandates and strategic priorities.

Organisational DevelopmentThe main purpose of this Directorate is to provide a comprehensive organisational development service to the Department.

The Directorate has successfully managed change that resulted from the split of the former Department of Minerals and

Energy. The Directorate has also successfully nalised the re-alignment of the organisational structure project for all line

function branches. With regards to job evaluation, out of the six branches of the Department, job evaluations for three

branches have been nalised.

Human Resource Planning and PolicyThis is a newly created Directorate resulting from the restructuring and repositioning of the Directorate: Human Resources

in the Department. The focus of this Directorate is to manage all the human resource related activities, including human

resource planning, systems, functions, branding, marketing and policies within the Department. In this regard the Directorate

developed an Integrated Human Resource Plan as well as the Employment Equity Plan for the Department.

PROGRAMME 1: ADMINISTRATION

22


Human Resource Administration and PracticesThe main purpose of this Directorate is to manage relationships with mineral resources business unit’s partners on human

resources matters and administration. This entails recruitment and selection, facilitating competency-based assessments and

individual performance evaluations through the Performance Management and Development System (PMDS), managing

service conditions and the implementation of Policy and Procedure Incapacity Leave and Ill-health Retirement (PILIR).

Following the Department split, considerable effort was applied to match and place all employees into the new structures. In

addition, the performance bonuses and pay progressions for all staff below SMS level were implemented during the second

quarter of the 2010/11 nancial year.

Human Resource DevelopmentThe mandate of the Human Resource Development Directorate in terms of the Skills Development Act (SDA), the National

Human Resource Development Strategy (NHRDS), the National Skills Development Strategy (NSDS) and the Departmental

HRD Implementation Plan is to address skills challenges through training and development programmes that can ensure that

there is a supply of employees with the required skills set (i.e. scarce/critical skills), to meet the Departmental strategic needs

as well as the needs of the South Africa economy. This is essential in ensuring that the economy as a whole achieves improved

performance to enhance service delivery.

To deliver on its mandate, the Directorate is responsible for the development and implementation of the Departmental HRD

strategy and Workplace Skills Plan.

Highlights in this regard included a number of generic and technical programmes, ranging from mass inductions, middle

management development, executive development programme, and government certi cate of competency (GCC). The

Directorate also successfully administered the bursary schemes (both internally and externally focused), international

sponsorships as well as internship and learnership programmes for Mineral Policy and Promotion, Mineral Regulation and

Mine Health and Safety.

The challenges facing the Directorate include the shortfall on operational budget allocated and an inability to retain staff due to

the high salary packages offered by the mining industry. In order to source funding to meet the budget shortfall, the Department

has entered into a memorandum of understanding with the Mining Quali cation Authority, and the MQA has agreed to fund 60

bursaries and 10 learnerships / internships.

Employee Relations ManagementThis is also a newly created Directorate aimed at managing employee relations, collective bargaining and employee wellness.

The Directorate was able to establish a Departmental Bargaining Chamber within the prescribed timeframe. In addition, the

employment relations sub-directorate nalised all disciplinary and grievance cases within the prescribed timeframes. Three

arbitrations were handled, with two cases being ruled in favour of the Department, while one is still with the Labour Court.

In terms of wellness, u vaccination and health risk assessments were carried out in all regional of ces.

Security Risk ManagementThe main purpose of this Directorate is to ensure effective security risk management services, the focus being on vetting

and security operations. The main achievement of the Directorate was the full implementation and functionality of the Vetting

strategy in the Department. Ninety percent (90%) of EXCO members have been security cleared, with the other 10% still in

progress at the time of reporting.

The Directorate also observed a decline in the number of security breaches since the beginning of the nancial year with only

one case reported as opposed to six reported in the previous year.

Legal ServicesThe Directorate: Legal Services focuses on ensuring the provision of professional legal support and advisory services to the

Ministry and the Department.


23


Legal Services provides the Department with comprehensive legal support services, including legal opinions and advice,

assistance with legal drafting, litigation, and assisting with and monitoring the implementation of the Promotion of Access to

Information Act (PAIA), No. 2 of 2000 and the Promotion of Administrative Justice Act, No. 3 of 2000. The Directorate also assists

in the determination of culpability of of cials in cases of lost or damaged property, assists the Minister in handling appeals against

the Department’s administrative decisions, and facilitates the signing of international agreements between the Department and

third parties.

Chief Directorate: Communication and International Co-ordinationThe objective of the Chief Directorate: Communications is to develop, implement and manage communication strategies for the

Department for both internal and external stakeholders, including the media. Its core mandate entails rendering ef cient and

effective communication services in line with the DMR’s mandate, mission, vision and values, whilst bearing in mind the context

and environment of the mining industry. The role of the Directorate is critical to the success of the Department.

Working in tandem with all senior managers, the Directorate leads the Department’s communication effort in support of the overall

objectives of the Department. It is also charged with supporting the Minister, Deputy Minister, Director-General and line function

branches in media management, branding, marketing, public relations, internal communications, publications services, library and

knowledge management services, and switchboard and reception services.

Since the split of the DME, the Chief Directorate has embarked on a project of restructuring the Directorate: Communications

to ensure that it is appropriately capacitated to provide communications services. The restructuring will further consolidate the

unit and reasserts communication as central to all of DMR’s programmes and policies. Such an approach will also apply to

international communication and the marketing of the Department abroad.

Communication objectives The Department‘s communication is driven by the need to:

Pro le the Minister and Deputy Minister and promote the vision, mission, objectives, policies and programmes of the • Department;

Sustain public con dence in government‘s ability to deliver on its mandate through the Department’s programmes;•

Build the reputation and brand of the Department;•

Demonstrate how the Department is contributing to government ‘s priorities, including the creation of decent jobs and • sustainable communities through mining regulatory interventions;

Help the mining industry to understand the Department‘s policies and programmes, especially as they relate to transformation • and promoting local bene ciation of raw materials;

Communicate South Africa’s mining legislative and regulatory framework, including licensing processes;•

Translate the vision of a government that cares and is in touch with people through visible and tangible community • interaction;

Market South Africa and the mining industry abroad and build consensus on South Africa’s reputation as a viable destination • for foreign investment;

Build the Department’s capacity to communicate coherently and effectively with all stakeholders; and•

Develop appropriate and ethical networks and relationships with stakeholders that could enhance the image of the • Department.

Presidential Hotline The Chief Directorate: Communications also hosts the function of public liaison services, dealing with Presidential Hotline queries

received that are applicable to the Department. The queries or suggestions that have relevance to the Department are received

at the Chief Directorate, and are then disseminated through the Department. All the responses received are also returned to the

Presidency by end of March 2011 the Department had a 99% success rate in resolving Presidential Hotline queries.


ii

24



International Co-Ordination The international Co-Ordination Directorate participated in a number of forums and meetings to advance the DMR agenda in the

Mining and Minerals sector.

International AgreementsThe department started the process of reviewing all international agreements signed by end of March 2011 to determine the status,

validity and alignment of these agreements with the country’s strategic objectives and to guide future agreements. Forging relations

with different countries is a dynamic process and has evolved since the attainment of democracy in 1994. National interests will al-

ways determine the social, political and economic developmental strategic milieu for our interaction with foreign nations.

During the forthcoming nancial year, we will nalise this process and ensure that our plans of foreign engagement are aligned with

national needs, including the conclusion of a number of bilateral agreements and establishing new strategic relationships within

the mining industry. The evaluation of these agreements ensured the promotion of the Department’s agenda in multilateral fora and

through bilateral relations and structured bilateral meetings.

Chief Directorate: Special Projects and ProgrammesThe Chief Directorate: Special Projects is tasked with the implementation of transformation imperatives of vulnerable groups and

disadvantaged communities. The Department’s strategy in this regard is to mainstream gender and youth empowerment and

facilitate the participation of these groups and communities through sector groups and outreach programmes.

During the year under review the Chief Directorate implemented its outreach programmes in four provinces, namely Gauteng,

Limpopo, Eastern Cape and KwaZulu Natal. Information sessions were presented that offered career guidance to encourage

learners to pursue careers in the mining related elds. These programmes are undertaken in partnership with mining stakeholders.

The Chief Directorate also provided targeted institutions with computers and furniture as a contribution towards education and

community development.

During the 2010 Women’s Month the Minister hosted a “Women in Mining” Ingxoxo (dialogue) with the view of addressing

challenges experienced by women in mining. The mining Ingxoxo was attended by more than 300 women who are involved in

mining as owners, shareholders, executives or similar positions. During the Ingxoxo, the Minister made a call to established

mining houses to pledge their support to adopt girl learners and provide bursaries to study towards mining and related elds. To

date, 17 girl learners will be enrolled at various tertiary institutions for the 2012 academic year through the contributions of private

sector companies who have pledged their support to the initiative.

A successful Mandela Day was hosted by supporting a retirement home in Vosloorus. Food, blankets and other necessities were

provided to the centre, including the renovating of two houses for the elderly in the area. The Chief Directorate also hosted a

successful event for 16 days of activism against women abuse in Rustenburg.

Following a bilateral agreement between the South African and Chinese governments in 2006, the Department entered into an

agreement with Michael Diamond Company to train young South African women in bene ciation in China. The Special Projects

and Bene ciation Components facilitated the selection and travel arrangements of the selected young women to be trained in

jewellery making.

Some of these young women have since come together and established a jewellery company namely, Umtha Welanga Jewellers

which was launched on 4 March 2011.

Chief Directorate: Strategy, Risk and Monitoring (the Compliance Of ce)This Chief Directorate is the Department’s focal point on corporate governance and is responsible for co-ordinating strategic

planning, risk management, fraud prevention, quarterly and annual reporting, and compliance monitoring (by the Department

and its public entities). It exercises oversight, in conjunction with line function branches, of the activities of state-owned entities

iii

iv

25



reporting to the Ministers of Mineral Resources.

The Minister tabled the 2009/10 Annual Report of the Department and its state-owned entities, as well as its 2010–2013 Strategic

Plan, in Parliament on time. This of ce and the state-owned entities have ensured compliance with the administrative, nancial and

legal requirements of the PFMA and Treasury Regulations, founding Acts of the respective entities and the Companies’ Act (where

applicable).

A Service Delivery Improvement Plan was developed as required by the Public Service Regulations and in line with the Cabinet

decision to revitalise Batho Pele. The plan was submitted to DPSA and implemented with effect from 1 April 2010.

Corporate GovernanceState-owned entities reporting to the Minister of Mineral Resources are governed by, inter alia:

i) the Public Finance Management Act, government’s broader strategy to improve nancial management and governance in

the public sector;

ii) the Protocol on Corporate Governance in the Public Sector, government’s guideline on how state-owned entities need to

implement corporate governance; and

iii) the King III Report on Corporate Governance for South Africa.

Corporate governance is integral to creating an environment of good conduct, improved internal controls, risk

management and better corporate culture.

The Boards of the individual entities have the responsibility to set strategic direction that is aligned with that of the

Department, oversee and guide the entity and instil good governance. Transparency of conduct ensures that the Minister

as shareholder can hold the Boards to account.

The public entities’ annual strategic plans, business plans, shareholder compacts and their budget proposals were reviewed and

approved by the Minister. Delays in the approval of some of the documentation were due to ongoing discussions between the

Department and the entities concerned to ensure strategic alignment with government priorities.

* The legend below guides the interpretation of all performance information tables

BELOW PLAN

MEETING OR EXCEEDING THE PLAN

PARTIALLY ACHIEVED

NOT YET DUE

26


PRO

GR

AM

ME

1: C

OR

POR

ATE

SER

VIC

ES

OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Con

tribu

te to

Ski

lls

Dev

elop

men

t

Num

ber c

aree

r gu

idan

ce a

ctiv

ities

un

derta

ken

32

1G

Ach

ieve

d: V

eri

catio

n so

urce

: Mam

elod

i ca

reer

gui

danc

e (a

ttend

ance

re

gist

er),

Lear

ners

Foc

us W

eek

(rep

ort,

DV

D) E

show

e C

aree

r Gui

danc

e (a

ttend

ance

regi

ster

, rep

ort)

Num

ber o

f ski

lls

deve

lopm

ent

initi

ativ

es17

512

G

Ach

ieve

d: T

here

wer

e be

tter d

onat

ions

th

an w

hat w

as e

xpec

ted.

Ver

i ca

tion

sour

ce: L

ette

rs o

f com

mitm

ent

from

min

ing

com

pani

es. 1

7 B

ursa

ries

secu

red

for L

earn

ers

dona

ted

by m

inin

g co

mpa

nies

.

Dev

elop

Stra

tegi

c P

artn

ersh

ip

Ann

ual s

ubm

issi

on

of M

iner

al

Res

ourc

es p

riorit

ies

to D

epar

tmen

t of

Inte

rnat

iona

l R

elat

ions

and

C

oope

ratio

n

01

-1R

Not

ach

ieve

d: P

riorit

y co

untri

es

iden

ti e

d bu

t not

sub

mitt

ed to

DIR

CO

.Li

aise

with

DIR

CO

as

to m

odal

ities

of

iden

tifyi

ng a

ncho

r sta

tes.

App

rove

d in

tern

atio

nal r

elat

ions

st

rate

gy0

1-1

RN

ot a

chie

ved:

Stra

tegy

nee

ds to

be

inco

rpor

ated

into

the

inve

stm

ent

prom

otio

n st

rate

gy.

Inve

stm

ent p

rom

otio

n st

rate

gy to

be

appr

oved

in

201

1/12

.

Num

ber o

f bila

tera

l an

d m

ultil

ater

al

agre

emen

ts re

view

ed0

3-3

RN

ot a

chie

ved.

Par

tial h

uman

reso

urce

ca

paci

ty d

ue to

spl

it of

the

DM

E.

Hum

an c

apac

ity h

as b

een

addr

esse

d. A

ll M

iner

al R

esou

rces

spe

ci c

agr

eem

ent w

ill b

e re

view

ed in

201

1/12

.

Driv

e Tr

ansf

orm

atio

n P

olic

ies

Yout

h in

min

ing

sect

or

stra

tegy

11

0G

Targ

et o

f sec

urin

g bu

y in

sec

ured

, N

YD

A.

To o

btai

n bu

y in

from

the

Min

iste

r and

K

EX

CO

.


27


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Edu

cate

and

co

mm

unic

ate

with

S

take

hold

ers

% o

f pre

side

ntia

l ho

tline

que

ries

proc

esse

d86

90-4

Y

Veri

cat

ion

sour

ce: W

eekl

y ho

tline

re

ports

, Reg

iona

l of

ces

do n

ot re

spon

d on

tim

e, c

alls

rem

ain

open

for l

onge

r tha

n an

ticip

ated

per

iods

. Inv

estig

atio

ns o

ften

need

to ta

ke p

lace

on

site

, whi

le th

ese

min

es a

re n

ot a

lway

s in

the

near

vic

inity

of

the

Reg

iona

l of

ces.

To im

prov

e th

e pe

rform

ance

, rs

tly th

e R

egio

nal

Of

ces

to re

gard

Pre

side

ntio

al H

otlin

e ca

lls w

ith

the

nece

ssar

y ur

genc

y an

d se

cond

ly th

e C

hief

D

irect

ors.

Min

eral

Reg

ulat

ion

shou

ld b

ecom

e m

ore

activ

ely

invo

lved

and

app

rove

the

clos

ure

of c

alls

as

per t

he a

men

ded

inte

rnal

pro

cedu

res.

App

rove

co

mm

unic

atio

n st

rate

gy1

10

GVe

ri c

atio

n S

ourc

e: A

ppro

ved

Com

mun

icat

ion

Stra

tegy

and

EX

CO

M

inut

es.

Num

ber o

f med

ia

brie

ngs

104

6G

Veri

cat

ion

sour

ce: M

edia

sta

tem

ents

, m

edia

cov

erag

e, m

edia

rele

ases

,med

ia

advi

sory

, m

edia

regi

stra

tion

list.

Med

ia

and

stak

ehol

der b

rie n

g he

ld to

upd

ate

on th

e M

onat

oriu

m a

t She

rato

n H

otel

, m

edia

brie

ng

held

to a

nnou

nce

the

new

lic

ensi

ng s

yste

m, m

edia

brie

ng

at th

e M

inin

g In

daba

, brie

ng

on th

e lif

ting

of

the

mor

ator

ium

and

laun

ch o

f the

new

lic

ensi

ng s

yste

m.

Num

ber o

f sta

keho

lder

en

gage

men

ts h

eld

74

3G

Thro

ugh

MIG

DE

TT th

e de

partm

ent m

eets

w

ith a

ll its

sta

keho

lder

s, V

eri

catio

n S

ourc

e: M

IGD

ETT

Min

utes

, DM

R/M

erill

Ly

nch

Rou

ndta

ble,

Min

ing

Inda

ba.

Num

ber o

f tar

gete

d co

mm

unic

atio

n on

st

rate

gies

and

pla

ns

deve

lope

d

113

8G

All

even

ts h

oste

d m

edia

pla

ns w

here

de

velo

ped

and

impl

emen

ted.

Ver

i ca

tion

Sou

rce:

MIG

DE

TT M

inut

es.,

Ingx

oxo

wom

en in

min

ing,

AD

PA, M

ande

la D

ay

cele

brat

ion,

Car

eer g

uida

nce

awar

enes

s,

16 D

ay o

f Act

ivis

m a

gain

st th

e ab

use

of w

omen

and

chi

ldre

n in

min

ing

com

mun

ities

, Nom

buso

, Mot

lotlo

.


28


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Enh

ance

aw

aren

ess

of D

MR

num

ber o

f cus

tom

er

serv

ice

satis

fact

ion

surv

ey c

ondu

cted

01

-1R

The

depa

rtmen

t was

in c

onsu

ltatio

n w

ith

GC

IS.

Sur

vey

will

be

impl

emen

ted

in 2

011/

2012

.

Num

ber o

f hits

on

the

DM

R w

ebsi

te37

276

1000

3627

6G

Veri

cat

ion

sour

ce: I

T hi

t cou

nter

repo

rt.

Num

ber o

f int

erna

l and

ex

tern

al n

ewsl

ette

r and

pr

omot

iona

l mat

eria

l de

velo

ped

for D

MR

116

5G

Veri

cat

ion

sour

ces:

Flip

per B

anne

rs,

Mon

thly

Pla

nner

Boa

rds,

Shu

tter f

ram

es,

Prin

ted

and

fram

ed p

rinci

pal p

hoto

s,

Mon

thly

Pla

nner

, Por

t Eliz

abet

h B

rand

ing,

D

evel

opm

ent o

f pro

mot

iona

l for

KZN

of

ce,

Pic

ture

s fo

r Exe

cutiv

e M

anag

emen

t fo

r the

Cap

e To

wn

DM

R p

arlia

men

tary

of

ces

, Inf

orm

atio

n po

ster

s co

ntai

ning

the

DM

R, m

issi

on, v

isio

n an

d co

ntac

t det

ails

of

all

regi

onal

of

ces

and

Hea

d O

f ce

w

as d

esig

ned,

prin

ted

and

dist

ribut

ed,

sign

age

and

CI o

f the

Hea

d O

f ce

was

do

ne. V

eri

catio

n S

ourc

e: P

oste

rs a

nd

insp

ectio

n of

the

build

ings

.

Num

ber o

f pre

ss a

lerts

/re

leas

es d

istri

bute

d34

1024

G

Veri

cat

ion

Sou

rces

: McC

losk

ey S

outh

A

frica

n C

oal E

xpor

ts C

onfe

renc

e, D

MR

re

ject

s S

ishe

n ca

se o

n 03

Feb

ruar

y 20

11, M

inin

g In

daba

, Min

iste

r lau

nche

d B

urns

tone

min

e, B

alfo

ur, P

resi

dent

la

unch

es s

tate

ow

ned

min

ing

com

pany

, M

inis

ter e

xten

ded

Mor

ator

ium

for n

ew

pros

pect

ing

righ

ts. S

tate

men

t of t

he

DM

R re

spon

ding

af

davi

t on

the

Sis

hen

case

med

ia s

tate

men

t on

the

upda

te o

f th

e fu

nctio

nalit

y of

the

SA

MR

AD

sys

tem

, st

atem

ent o

n th

e m

orat

oriu

m o

n ne

w

frack

ing

licen

ses.

Num

ber o

f pub

lishe

d ar

ticle

s/br

oadc

ast

2972

1200

1772

G

Veri

cat

ion

sour

ces:

DM

R a

nd G

CIS

m

edia

mon

itorin

g cl

ippi

ngs

and

syst

em

gene

rate

d ou

tcom

e. U

nder

ach

ieve

d be

caus

e th

e ta

rget

incl

uded

bot

h D

MR

an

d M

edia

arti

cles

.

Targ

et fo

r 201

1/20

12 w

ill b

e ba

sed

on D

MR

in

itiat

ed a

rticl

es.


29


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Gre

ater

aw

aren

ess

of D

MR

pol

icie

s an

d pr

ogra

mm

es

Opi

nion

pie

ces

plac

ed

with

the

med

ia6

15

G

Veri

cat

ion

Sou

rce:

Med

ia C

lippi

ngs

of a

rticl

es p

lace

d in

the

City

Pre

ss a

nd

Sun

day

Tim

es a

bout

SA

MD

A an

d th

e R

egul

ator

y Fr

amew

ork.

Pro

mot

e S

ocia

l and

La

bour

pla

n

Num

ber i

nfor

mat

ion

sess

ions

45

-1Y

Not

ach

ieve

d. V

eri

catio

n S

ourc

e:

Rep

orts

, atte

ndan

ce re

gist

er a

nd

econ

omic

opp

ortu

nitie

s fo

r pos

t m

atric

ulan

ts in

Esh

owe

KZN

. Atte

ndan

ce

regi

ster

s re

gard

ing

pre-

disa

bled

in

form

atio

n se

ssio

n to

war

ds th

e en

d of

201

0 in

KZN

. Fo

llow

up

info

rmat

ion

sess

ion

for d

isab

led

in B

ene

cia

tion

with

th

e pa

rtici

patio

n of

Min

tek.

Rep

ort a

nd

atte

ndan

ce re

gist

er. M

amel

odi c

onsi

sted

of

an

info

rmat

ion

sess

ion

for M

ilita

ry

vete

rans

. A

ttend

ance

regi

ster

.

To fa

cilit

ate

the

5th

info

rmat

ion

sess

ion

in J

une

2011

on

the

role

of a

Co-

oper

ativ

es a

t Eng

cobo

on

bric

k m

akin

g.

Num

ber o

f pro

ject

s es

tabl

ishe

d th

roug

h S

ocia

l and

labo

ur P

lan

to b

ene

t vu

lner

able

gr

oups

in m

inin

g co

mm

uniti

es m

onito

red

62

4G

Ach

ieve

d N

ombu

so H

igh

Sch

ool

repo

rt (K

ZN),

Sci

ence

Lab

orat

ory

Com

pute

rs a

nd F

urni

ture

) Um

that

ha

Wel

anga

Jew

elle

ry p

roje

ct, P

rogr

amm

e fo

r the

Lau

nch

(Gau

teng

) Mof

olo

Hom

e B

ased

Car

e fo

r the

dis

able

d (C

ompu

ters

an

d Fu

rnitu

re) G

aute

ng. N

atio

nal P

eace

A

ccor

d Tr

ust L

abou

r sen

ding

are

a su

ppor

ted

with

furn

iture

and

sup

port

for H

IV- A

IDS

pro

ject

) KZN

MK

VA s

uppo

rt w

ith c

ompu

ters

for s

kills

dev

elop

men

t and

fu

rnitu

re tw

o re

vam

ped

hous

es fo

r the

el

derly

in E

kurh

ulen

i by

Ang

lo A

mer

ican

(G

aute

ng).

Num

ber o

f pro

ject

s im

pact

ing

vuln

erab

le

grou

ps in

spec

ted

014

0-1

40R

Not

ach

ieve

d: D

ue to

lack

of c

apac

ity.

This

func

tion

will

be

carr

ied

by M

iner

al

Reg

ulat

ion

goin

g fo

rwar

d.


30


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Sus

tain

able

de

velo

pmen

t of a

ll vu

lner

able

gro

ups

Num

ber o

f eco

nom

ic

proj

ects

und

erta

ken

in

sect

or g

roup

s2

20

G

Ach

ieve

d: V

eri

catio

n S

ourc

e: R

epor

t on

bric

k m

akin

g pr

ojec

t at E

ngco

bo, E

aste

rn

Cap

e.

DM

R w

ith th

e su

ppor

t of X

stra

ta

faci

litat

ed th

e as

sist

ance

of a

You

th

Com

pany

in id

entif

ying

a G

reen

Fie

ld

min

e (V

ento

na) i

n M

pum

alan

ga E

vide

nce:

C

ompa

ny p

ro le

.

Attr

act a

nd R

etai

n S

taff

% im

plem

enta

tion

of

HR

D s

trate

gy87

.550

37.5

G87

.5%

ach

ieve

d i.e

. 7 o

ut o

f 8

prog

ram

mes

impl

emen

ted.

% im

plem

enta

tion

of

Tale

nt M

anag

emen

t S

trate

gy0

20-2

0R

Not

ach

ieve

d, T

he im

plem

enta

tion

did

not t

ake

plac

e be

caus

e th

e st

rate

gy w

as

only

dev

elop

ed d

urin

g 20

10/2

011

nan

cial

ye

ar.

The

Stra

tegy

will

be

impl

emen

ted

durin

g th

e 20

11/2

012

nan

cial

yea

r.

% re

duct

ion

in v

acan

cy

rate

01

-1R

Not

ach

ieve

d, M

ore

vaca

ncie

s be

caus

e of

fu

ndin

g of

som

e of

vac

anci

es. 1

st Q

uarte

r 16

%, 2

nd Q

uarte

r 13%

, 3rd

Qua

rter 1

5%

and

curr

ently

17%

.

Fast

trac

king

lin

g of

pos

ition

s.

% re

duct

ion

Sta

ff Tu

rnov

er ra

te15

.91

14.9

R N

ot a

chie

ved:

Ver

i ca

tion

sour

ce: P

ersa

l R

epor

t

No

com

para

tive

gur

es fr

om 2

009/

10 b

ecau

se

the

depa

rtmen

t was

com

bine

d w

ith D

epar

tmen

t of

Ene

rgy.

The

depa

rtmen

t will

con

tinue

to

mon

itor t

he s

taff

turn

over

rate

Num

ber o

f car

eer/

deve

lopm

ent i

nitia

tives

(c

aree

r opp

ortu

nitie

s,

skill

s in

itiat

ives

, etc

.) im

plem

ente

d

66

0G

Veri

cat

ion

Sou

rce:

Pre

sent

atio

ns o

n D

MR

car

eers

, atte

ndan

ce re

gist

ers.

C

entra

l Uni

vers

ity o

f Tec

hnol

ogy,

Nor

th

Wes

t Uni

vers

ity (P

otch

estro

om C

ampu

s),

Nor

th W

est U

nive

rsity

(Mm

abat

ho),

Uni

vers

ity o

f Lim

popo

, Dur

ban

Uni

vers

ity

of T

echn

olog

y, U

nive

rsity

of K

waZ

ulu

Nat

al (D

urba

n).

Impr

ove

Lead

ersh

ip

and

Man

agem

ent

% M

anag

emen

t C

ompl

eted

the

Lead

ersh

ip/

Man

agem

ent C

ours

es

2750

-23

YN

ot a

chie

ved:

27%

is m

ade

up o

f 20

out

of 7

5 X

100

com

plet

ed th

e A

MD

P.

ED

P ha

s be

en im

plem

ente

d in

the

last

qua

rter o

f th

e 20

10/1

1 n

anci

al y

ear a

nd o

verla

ps in

to th

e 20

11/1

2 n

anci

al y

ear.

% re

turn

on

inve

stm

ent

on tr

aini

ng a

nd

deve

lopm

ent

00

0B

Too

l was

not

dev

elop

ed to

cal

cula

te

inve

stm

ent o

n tra

inin

g an

d de

velo

pmen

tTr

aini

ng o

f Man

ager

s w

ill ta

ke p

lace

in

2011

/201

2.


31


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Pro

mot

e C

ore

Valu

es

Num

ber o

f clim

ate

surv

eys/

clie

nt

satis

fact

ion

surv

ey

(focu

sing

on

core

va

lues

)con

duct

ed

(Inte

rnal

and

Ext

erna

l)

01

-1R

Not

ach

ieve

d: T

he d

epar

tmen

t was

in

cons

ulta

tion

with

GC

IS.

Sur

vey

will

be

impl

emen

ted

in 2

011/

12.

Num

ber o

f Cor

e Va

lues

W

orks

hops

Con

duct

ed2

11

GVe

ri c

atio

n S

ourc

e: A

ttend

ance

Reg

iste

r

Num

ber o

f Ser

vice

D

eliv

ery

Impr

ovem

ent

Pla

ns D

evel

oped

11

0G

Veri

cat

ion

Sou

rce:

Stra

tegi

c P

lan

docu

men

t 20

10/2

011.

Alig

n bu

dget

to

stra

tegy

% B

udge

t Alig

ned

to

Stra

tegy

100

955

GTh

e B

udge

t is

alig

ned

to th

e S

trate

gy. S

pend

ing

Pla

ns c

ompi

led.

Ens

ure

com

plia

nce

% e

xecu

tion

of F

raud

pr

even

tion

and

ER

M

impl

emen

tatio

n pl

ans

010

0-1

00R

Ris

k as

sess

men

t wer

e pe

rform

ed a

nd

risk

man

agem

ent c

omm

ittee

met

dur

ing

the

year

. Ris

k ch

ampi

on fo

rum

was

co

nstit

uted

dur

ing

the

year

.

Ris

k ch

ampi

ons

will

act

ivel

y ad

dres

s ris

k tre

atm

ent a

ctio

ns p

lans

dur

ing

2011

/12

.

Com

ply

with

PFM

A97

.510

0-2

.5G

Ach

ieve

d:Ve

ri c

atio

n S

ourc

e:

Com

plia

nce

Cer

ti c

ate.

Feb

ruar

y pe

riod:

100%

+100

%+1

00+9

0%/4

=97.

5,

Com

ply

with

PS

A10

010

00

GTh

e D

epar

tmen

t is

com

plia

nt w

ith th

e re

leva

nt p

olic

ies:

Ver

i ca

tion

Sou

rce:

H

R P

olic

ies.

Num

ber o

f rep

eat

ndi

ngs

on in

tern

al

audi

t fol

low

up

repo

rt8

08

GO

ut o

f 12

ndi

ngs

8 ha

ve n

ot b

een

impl

emen

ted.

Ver

i ca

tion

sour

ce:

Inte

rnal

Aud

it R

epor

ts

Enh

ance

mon

itorin

g m

echa

nism

s fo

r int

erna

l au

dit

ndi

ngs.

To

incl

ude

inte

rnal

nd

ings

as

a st

andi

ng it

em in

the

agen

da o

f Man

agem

ent

mee

tings

.

Unq

uali

ed

Aud

it R

epor

t0

00

YP

rogr

ess

on u

nqua

li e

d au

dit r

epor

t is

pend

ing

AG

repo

rtA

ny is

sues

aris

ing

from

the

Aud

it R

epor

t will

be

addr

esse

d in

the

2011

/12

nan

cial

yea

r.


32


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

SVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

REC

OM

MEN

DAT

ION

Man

age

cost

ef

fect

ivel

y

% V

aria

nce

on

Allo

cate

d B

udge

t for

go

ods

and

serv

ices

125

7R

Veri

cat

ion

Sou

rce:

Bud

get a

nd

Exp

endi

ture

Con

trol.,

The

bra

nch

has

over

spen

d on

goo

ds a

nd s

ervi

ces

by 3

7,04

%.

App

ropr

iatio

n w

as R

48,9

10

mill

ion

agai

nst A

ctua

l exp

endi

ture

of

R67

,025

mill

ion.

Red

uctio

n in

W

aste

ful,

fruitl

ess

and

irreg

ular

exp

endi

ture

7160

11G

The

tota

l was

tefu

l, fru

itles

s an

d irr

egul

ar e

xpen

ditu

re in

curr

ed b

y th

e B

ranc

h w

as re

duce

d by

R48

2 44

6.70

w

hich

repr

esen

ts 7

1% o

f the

pre

viou

s ye

ars

tota

l of R

679

416.

11 to

R19

6 96

9.41

.


33


Dire

ctor

ate:

Sec

urity

Ris

k M

anag

emen

t

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

DES

IRED

STA

ND

AR

D (2

010/

11)

PRO

GR

ESS

AS

AT 3

1 M

AR

CH

2O

10/2

011

Dev

elop

and

im

plem

ent

Phy

sica

l and

In

telle

ctua

l Ris

k P

lan

DM

R p

erso

nnel

and

vi

sito

rs

Qua

ntity

Ens

ure

impl

emen

tatio

n of

min

imum

info

rmat

ion

Sec

urity

Sta

ndar

ds (M

ISS

).

Phy

sica

l Sec

urity

Per

sonn

el S

ecur

ity

Com

mun

icat

ion

Sec

urity

Qua

ntity

Sta

ndar

dise

d se

curit

y as

pe

r SA

PS

and

NIA

sec

urity

re

com

men

datio

n

DM

R s

ecur

ity w

as 9

0% s

tand

ardi

sed

as p

er

SA

PS

and

NIA

sec

urity

reco

mm

enda

tions

.

The

Dep

artm

ent i

s re

pres

ente

d by

Sec

urity

M

anag

er a

t Nat

iona

l Dep

artm

ents

Sec

urity

M

anag

ers

Foru

m. S

AP

S a

nd S

SA

are

part

of

the

foru

m w

here

all

secu

rity

issu

es a

ffect

ing

the

depa

rtmen

ts a

re a

ddre

ssed

.

Qua

lity

Hig

h le

vel o

f unc

erta

inty

Qua

lity

Red

uctio

n of

risk

Ris

ks to

the

Dep

artm

ent w

ere

sign

i ca

ntly

redu

ced

Con

sulta

tion

Nat

iona

l Int

ellig

ence

A

genc

y an

d S

outh

Afri

can

Pol

ice

Ser

vice

s

Con

sulta

tion

Nat

iona

l Int

ellig

ence

Age

ncy

and

Sou

th A

frica

n P

olic

e S

ervi

ces

Con

sulta

tions

with

SS

A an

d S

AP

S w

ere

Impr

oved

, whi

ch h

ad a

pos

itive

impa

ct o

n

turn

arou

nd ti

mes

suc

h as

per

sonn

el s

uita

bilit

y

chec

ks b

y S

SA

and

Sec

urity

Aud

its b

y S

AP

S.

Acc

ess

Pre

sent

atio

ns o

f sec

urity

aw

aren

ess

Acc

ess

Of

cial

s ta

king

sec

urity

as

thei

r res

pons

ibili

ty

Sig

ni c

ant p

rogr

ess

with

of

cial

s ta

king

resp

onsi

bilit

y fo

r the

ir se

curit

y, s

uch

as fe

wer

unlo

cked

of

ces

afte

r hou

rs a

nd d

urin

g th

e da

y w

hen

of c

ials

are

not

in th

eir o

f ce

s or

in th

eir

wor

k st

atio

n in

the

new

ope

n-pl

an s

etup

.

Ope

nnes

s an

d tra

nspa

renc

y

Mos

t of

cial

s un

ders

tand

se

curit

y on

ly a

t acc

ess

cont

rol m

easu

res

Ope

nnes

s an

d tra

nspa

renc

y

Tota

l und

erst

andi

ng

of M

ISS

MIS

S d

ocum

ent s

umm

aris

ed fo

r all

empl

oyee

s to

re

ad a

nd fa

mili

aris

e th

emse

lves

with

the

cont

ent.

W

ill b

e po

sted

on

the

Intra

net.

Info

rmat

ion

Sec

urity

pol

icy

on th

e in

trane

tIn

form

atio

nS

ecur

ity g

uide

lines

and

pr

oced

ures

on

the

intra

net

Sec

urity

Pol

icy

due

for r

evie

w, o

nce

the

proc

ess

is

com

plet

ed it

will

be

post

ed b

ack

to D

MR

intra

net.

Red

ress

Chi

ef D

irect

orat

e gi

ve

EX

CO

repo

rts d

urin

g di

rect

orat

es m

eetin

gsR

edre

ssM

arke

ting

secu

rity

at C

hief

D

irect

orat

e m

eetin

gs

Info

rmat

ion

sess

ions

to p

rom

ote

secu

rity

held

w

ith th

e M

iner

al R

egul

atio

ns, C

FO a

nd C

orpo

rate

S

ervi

ces

Bra

nch

as w

ell a

s al

l reg

iona

l man

ager

s.

Valu

e fo

r m

oney

Less

sec

urity

bre

ache

sVa

lue

for

mon

eyP

rote

ctio

n of

info

rmat

ion

Sec

urity

bre

ache

s w

ere

min

imis

ed. O

ne in

cide

nt

of s

ecur

ity b

reac

h re

porte

d.

Cos

tC

ompe

nsat

ion

of

empl

oyee

as

per b

udge

tC

ost

Com

pens

atio

n of

em

ploy

ee

as p

er b

udge

tP

erm

anen

t em

ploy

ees

wer

e co

mpe

nsat

ed

acco

rdin

g to

bud

get a

nd th

ree

cont

ract

em

ploy

ees

wer

e ab

sorb

ed p

erm

anen

tly b

y D

MR

whi

le th

e re

mai

ning

17

wer

e ab

sorb

ed b

y D

ept.

of E

nerg

y du

ring

the

split

of t

he D

ME

.

Serv

ice

Del

iver

y Im

prov

emen

t Pla

ns

Bra

nch:

Cor

pora

te S

ervi

ces


34



Dire

ctor

ate:

Spe

cial

Pro

ject

s/Pr

ogra

mm

es

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

D

ESIR

ED S

TAN

DA

RD

(201

0/11

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

O10

/201

1

Red

ress

th

e pa

st

imba

lanc

es

and

crea

te

acce

ss

for t

he

vuln

erab

le

grou

ps to

be

ne t

from

th

e m

iner

als

Sec

tor

All

desi

gnat

ed

vuln

erab

le

grou

ps

resi

dent

in

area

s in

and

ar

ound

min

ing

indu

stry

op

erat

ions

i.e

. wom

en,

yout

h di

sabl

ed,

child

ren

and

the

aged

Qua

ntity

Acc

ordi

ng to

S

outh

Afri

can

dem

ogra

phic

sQ

uant

ityA

ccor

ding

to S

outh

Afri

can

dem

ogra

phic

s as

con

tain

ed in

th

e po

licy

The

Min

ing

Cha

rter o

f 200

2 ha

d st

ipul

ated

that

min

ing

com

pani

es s

houl

d as

pire

for 1

0% o

f wom

en (i

nclu

ding

whi

te

wom

en) t

o pa

rtici

pate

in m

anag

emen

t. Th

e Im

pact

Ass

essm

ent

Stu

dy re

veal

ed th

at le

ss th

an 1

% w

omen

are

in c

ore

man

agem

ent i

n th

e m

inin

g se

ctor

.

Qua

lity

Giv

e hi

gh s

tand

ards

of

ser

vice

del

iver

y as

pe

r dem

ogra

phic

s (e

quity

)

Qua

lity

As

per p

olic

yW

ith m

ore

expo

sure

of l

earn

ers

to th

e va

rious

car

eers

in

the

min

ing

sect

or, t

he s

kills

cha

lleng

es c

ould

be

som

ewha

t ad

dres

sed.

Con

sulta

tion

All

stak

ehol

der

orga

nisa

tions

and

vuln

erab

le g

roup

s

Con

sulta

tion

All

prov

ince

s to

be

reac

hed

The

follo

win

g pr

ovin

ces

wer

e re

ache

d, L

impo

po, K

waZ

ulu

Nat

al, E

aste

rn C

ape,

Gau

teng

, Nor

thw

est,

Free

Sta

te a

nd

Mpu

mal

anga

.

Acc

ess

Cre

ate

acce

ss to

the

oppo

rtuni

ties

in th

e M

iner

als

sect

orA

cces

s

Ens

ure

info

rmat

ion

diss

emin

atio

n to

all

vuln

erab

le

grou

ps th

roug

h w

orks

hops

, in

form

atio

n se

ssio

ns a

nd

cons

ulta

tions

Four

info

rmat

ion

sess

ions

hav

e be

en u

nder

take

n in

Gau

teng

an

d K

ZN. W

ith m

ore

capa

city

info

rmat

ion

diss

emin

atio

n w

ould

be

incr

ease

d.

Cou

rtesy

Res

pect

and

val

ue a

ll ou

r clie

nts

Cou

rtesy

Ens

ure

no d

iscr

imin

atio

n on

th

e ba

sis

of a

ge, r

ace,

gen

der

and

disa

bilit

y

All

grou

ps a

re e

quita

bly

serv

ed w

ithou

t pre

judi

ce n

or

disc

rimin

atio

n

Ope

nnes

s an

d tra

nspa

renc

y

Ens

ure

open

ness

in

dea

ling

with

le

gisl

atio

n an

d al

l op

portu

nitie

s

Ope

nnes

s an

d tra

nspa

renc

y

Inte

rpre

t all

enqu

iries

sen

t to

the

Dep

artm

ent i

n a

fair

and

trans

pare

nt m

anne

rA

ll en

quiri

es a

re re

spon

ded

to in

a fa

ir m

anne

r

Info

rmat

ion

Rea

ch o

ut to

all

the

vuln

erab

le g

roup

s th

roug

h ad

voca

cy

wor

k

Info

rmat

ion

Con

tinue

with

info

rmat

ion

sess

ions

as

per p

lan

of a

ctio

nFo

ur in

form

atio

n se

ssio

ns w

ere

cond

ucte

d fo

r the

yea

r as

per

plan

of a

ctio

n.

Red

ress

Ens

ure

equi

ty in

line

w

ith ta

rget

sR

edre

ssM

onito

r equ

ity th

roug

h su

rvey

s an

d da

ta c

olle

ctio

nC

ompo

nent

relie

s on

sta

tistic

s as

out

lined

in th

e Li

ne F

unct

ion

polic

ies

and

mon

itorin

g th

ereo

f

Valu

e fo

r m

oney

Use

all

reso

urce

s pr

ovid

ed to

ben

e t

the

vuln

erab

le

grou

ps e

qual

ly

Valu

e fo

r m

oney

Use

all

reso

urce

s pr

ovid

ed to

be

ne t

the

vuln

erab

le g

roup

s eq

ually

and

ef

cien

tly

Thou

gh th

e bu

dget

is n

ot a

dequ

ate

to a

ddre

ss th

e ne

eds

and

prog

ram

mes

of v

ulne

rabl

e gr

oups

, it h

as b

een

real

ised

that

th

ere

is a

n im

prov

emen

t in

pers

onne

l out

put

35


Dire

ctor

ate:

Com

mun

icat

ions

K

EY

SER

VIC

ESE

RVI

CE

BEN

EFIC

IARY

CU

RR

ENT

STA

ND

AR

DD

ESIR

ED S

TAN

DA

RD

(201

0/11

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

O10

/201

1

Pro

vide

an

ef c

ient

E

xter

nal

and

Inte

rnal

co

mm

unic

atio

n se

rvic

e to

bot

h th

e D

MR

and

M

inis

try

(con

t)

Sou

th A

frica

n P

ublic

, DM

R

stak

ehol

ders

and

In

tern

al s

taff

Qua

ntity

Ens

ure

impl

emen

tatio

n of

the

Med

ia/

Mar

ketin

g P

lans

with

in th

e C

omm

unic

atio

n S

trate

gy

Qua

ntity

Stre

amlin

e al

l DM

R e

xter

nal

even

ts

Rev

amp

all s

ervi

ce re

late

d pu

blic

atio

ns

Stre

ngth

en in

tern

al

com

mun

icat

ions

Em

bark

on

at le

ast t

hree

m

arke

ting

cam

paig

ns

Hos

t mor

e co

ntac

t driv

en

Izim

bizo

/pub

lic li

aiso

n ev

ents

The

sub

dire

ctor

ate

is c

urre

ntly

wor

king

on

a pr

ojec

t pla

n to

upd

ate

DM

R p

ublic

atio

ns. T

he u

nit

is c

urre

ntly

wor

king

on

an in

tern

al n

ewsl

ette

r titl

ed E

zase

mgo

dini

. The

sec

tion

does

not

hav

e pr

oper

sof

twar

e to

pro

duce

upd

ated

pub

licat

ions

, but

is w

orki

ng o

n a

proj

ect t

o pr

ocur

e pr

oper

de

skto

p co

mpu

ter e

quip

men

t inc

ludi

ng d

esig

n pr

ogra

ms

etc.

to e

nabl

e it

to p

rodu

ce g

ood

qual

-ity

pub

licat

ions

. The

uni

t is

also

wor

king

on

proj

ect t

o se

cure

fund

ing

for t

he o

utso

urci

ng o

f an

effe

ctiv

e m

edia

mon

itorin

g se

rvic

e.

Ext

erna

l Sta

keho

lder

sur

vey:

The

uni

t is

wor

king

on

proj

ect p

lan

to c

ondu

ct a

sta

keho

lder

sur

-ve

y. A

mee

ting

was

hel

d w

ith G

CIS

Res

earc

h un

it on

this

mat

ter o

n Th

usrs

day,

19

May

201

1, a

t G

CIS

, as

they

wou

ld a

ssis

t with

thei

r vas

t exp

ertis

e. T

hey

have

the

nece

ssar

y to

ols

and

capa

c-ity

to c

ondu

ct s

urve

ys o

n be

half

of g

over

nmen

t dep

artm

ents

. A q

uest

ionn

aire

has

alre

ady

been

re

ceiv

ed fr

om th

em. U

nder

taki

ng th

is im

porta

nt a

ctiv

ity w

hich

form

s pa

rt of

Com

mun

icat

ions

ke

y pe

rform

ance

del

iver

able

s, w

ill in

form

the

DM

R’s

sta

keho

lder

eng

agem

ent p

lan.

Re-

esta

blis

hing

the

Libr

ary:

The

Uni

t is

wor

king

on

a pr

ojet

ct p

lan

to re

-est

ablis

h D

MR

libr

ary.

Fu

ndin

g fo

r the

libr

ary

has

been

set

asi

de. A

pro

ject

pla

n is

bei

ng d

evel

oped

on

setti

ng u

p th

e lib

rary

. The

cha

lleng

e is

stil

l the

spa

ce a

lloca

tion.

Re-

esta

blis

hmen

t of t

he li

brar

y w

ould

als

o im

men

sely

con

tribu

te in

the

getti

ng la

test

upd

ated

pub

licat

ions

.

Qua

ntity

Pub

lic li

aiso

n an

d m

edia

en

gage

men

t is

bein

g do

ne b

ut

not e

xtre

mel

y co

nten

t driv

en

Pub

licat

ions

av

aila

ble

but o

utda

ted

Qua

lity

Upd

ated

and

new

pu

blic

atio

ns d

evel

oped

Mor

e st

akeh

olde

r and

pub

lic

liais

on e

vent

s to

be

host

ed

Inte

rnal

com

mun

icat

ions

ev

ents

hel

d m

ore

frequ

ently

Mar

ketin

g ca

mpa

igns

rolle

d ou

t

The

unit

is p

repa

ring

to h

old

a C

hief

Dire

ctor

ate:

Com

mun

icat

ions

stra

tegi

c pl

an w

orks

hop

whe

re a

com

mun

icat

ion

stra

tegy

wou

ld b

e re

view

ed in

line

with

DM

R s

trate

gic

plan

in o

rder

to

impr

ove

on o

ur s

ervi

ce d

eliv

ery

man

date

.

Con

sulta

tion

Eng

age

med

ia p

laye

rs

Line

func

tion

bran

ches

fo

r stra

tegi

c co

mm

unic

atio

ns

on i

nter

nal

mat

ters

Eng

age

HR

and

CFO

’ s

of c

e m

ore

espe

cial

ly th

ose

that

pro

vide

a

Pre

sent

atio

n on

wha

t co

mm

unic

atio

ns

is th

ere

for

and

wha

t it i

s re

quire

d to

do

as g

over

nmen

t fu

nctio

n

Con

sulta

tion

Of

ce o

f the

Dire

ctor

-Gen

eral

an

d M

inis

try

The

unit

is p

repa

ring

to h

old

a C

hief

Dire

ctor

ate:

Com

mun

icat

ions

stra

tegi

c pl

an w

orks

hop

whe

re a

com

mun

icat

ion

stra

tegy

wou

ld b

e re

view

ed in

line

with

DM

R s

trate

gic

plan

in o

rder

to

impr

ove

on o

ur s

ervi

ce d

eliv

ery

man

date

.

Acc

ess

Acc

ess

Rou

tine

subm

issi

on o

f up

date

d in

form

atio

n on

al

l DM

R s

ervi

ce re

late

d pr

ogra

mm

es, m

onth

ly

mee

tings

with

DD

G’s

The

unit

com

pile

s qu

arte

rly m

onth

ly re

ports

to th

e of

ce

of th

e D

DG

: Cor

pora

te S

ervi

ces.

The

C

hief

Dire

ctor

and

the

Dire

ctor

: Com

mun

icat

ions

atte

nd C

orpo

rate

Ser

vice

s br

anch

mee

tings

w

here

they

giv

e fe

edba

ck io

n th

e st

atus

of p

roje

ct b

y th

e C

hief

Dire

ctor

ate.

The

Chi

ef D

irect

or a

nd th

e D

irect

or a

lso

atte

nd w

eekl

y m

eetin

gs a

t Gov

ernm

ent

Com

mun

icat

ion

Ser

vice

s (G

CIS

) whe

re m

edia

issu

es a

ffect

ing

all g

over

nmen

t dep

artm

ents

ar

e de

liber

ated

. The

y al

so a

ttend

mee

tings

with

DD

G’s

of v

ario

us b

ranc

hes

to d

iscu

ss

com

mun

icat

ion

supp

ort/

need

s fo

r the

ir pr

ogra

mm

es.


(con

t)

36



Pro

vide

an

ef c

ient

E

xter

nal

and

Inte

rnal

co

mm

unic

atio

n se

rvic

e to

bot

h th

e D

MR

and

M

inis

try

Sou

th A

frica

n P

ublic

, DM

R

stak

ehol

ders

an

d In

tern

al

staf

f

Cou

rtesy

Con

tinuo

us

unhe

eded

re

ques

ts fo

r lin

e fu

nctio

n pl

ans/

prog

ram

mes

th

at n

eed

Com

mun

icat

ion

supp

ort

Cou

rtesy

Pro

activ

e lin

e fu

nctio

n su

bmis

sion

of t

heir

plan

s/pr

ogra

mm

es

each

yea

r by

Nov

embe

r of t

he

curr

ent y

ear

The

Chi

ef D

irect

or a

nd th

e D

irect

or c

ontin

uous

ly e

ngag

e br

anch

es to

su

bmit

thei

r pla

ns/ p

rogr

amm

es in

ord

er to

pla

n on

tim

e an

d al

so to

giv

e ad

vice

on

the

kind

of c

omm

unic

atio

ns to

be

appl

ied

incl

udin

g th

e re

quire

d bu

dget

for t

he p

roje

cts

i.e m

arke

ting

cam

paig

ns, m

edia

brie

ngs

, etc

.

Inte

rnal

Com

mun

icat

ions

sup

port

pla

ns:

The

Uni

t ack

now

ledg

es th

at e

mpl

oyee

s pl

ay a

cru

cial

role

in b

uild

ing

a D

epar

tmen

t’s re

puta

tion.

Whe

ther

they

are

fron

tline

sta

ff or

of

cers

re

pres

entin

g th

e D

MR

ext

erna

lly, t

he w

ay th

ey b

ehav

e an

d ho

w th

ey

talk

abo

ut th

e D

epar

tmen

t can

hav

e a

huge

impa

ct. G

ood

inte

rnal

co

mm

unic

atio

ns is

ther

efor

e ve

ry im

porta

nt in

hel

ping

the

Dep

artm

ent t

o ac

hiev

e its

obj

ectiv

es.

Cas

cade

info

rmat

ion

sess

ion

team

brie

ngs

Sta

ff co

mm

unic

atio

ns o

n im

porta

nt is

sues

will

be

face

-to-fa

ce w

ith

• th

eir m

anag

ers.

Ther

e w

ill b

e re

gula

r inf

orm

atio

n se

ssio

n br

ie n

gs b

y br

anch

•

man

ager

s to

impr

ove

rela

tions

hips

and

hel

p st

aff f

eel i

nvol

ved

and

info

rmed

abo

ut d

evel

opm

ents

that

affe

ct th

em.

Cas

cade

team

brie

ngs

can

qui

ckly

dis

sem

inat

e ke

y m

essa

ges

• th

roug

hout

the

orga

nisa

tion.

Thi

s w

ill b

e ve

ry e

ffect

ive

at

quas

hing

gra

pevi

ne ru

mou

rs

Inte

rnal

sta

ff in

form

atio

n se

ssio

n ev

ents

:

Met

hods

to b

e ap

plie

d in

for c

omm

unic

atin

g w

ith s

taff

usin

g in

tern

al

even

tsO

rgan

isin

g in

tern

al s

taff

even

ts (y

ear e

nd a

war

ds c

erem

ony)

will

hel

p co

mm

unic

ate

cultu

ral c

hang

e pr

ogra

mm

es o

r dep

artm

ents

ach

ieve

men

ts

or p

riorit

ies.

The

y br

ing

staf

f tog

ethe

r who

may

not

hav

e m

uch

cont

act

norm

ally

and

rais

ing

the

visi

bilit

y of

sen

ior m

anag

ers.

Som

e of

the

plan

ned

even

ts to

be

orga

nise

d:

Info

rmat

ion

sess

ions

on

topi

cal

issu

es

• R

egio

nal o

f ce

vis

its b

y th

e un

it st

aff

• M

eet t

he D

irect

or-G

ener

al s

essi

ons

• A

nnua

l add

ress

by

the

Min

iste

r and

the

Dep

uty-

Min

iste

r•

Dire

ctor

ate:

Com

mun

icat

ions

K

EY

SER

VIC

ESE

RVI

CE

BEN

EFIC

IARY

CU

RR

ENT

STA

ND

AR

DD

ESIR

ED S

TAN

DA

RD

(201

0/11

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

O10

/201

1

(con

t)(c

ont)

(con

t)(c

ont)

(con

t)(c

ont)

37


Pro

vide

an

ef c

ient

E

xter

nal

and

Inte

rnal

co

mm

unic

atio

n se

rvic

e to

bot

h th

e D

MR

and

M

inis

try

Sou

th A

frica

n P

ublic

, DM

R

stak

ehol

ders

an

d In

tern

al

staf

f

Cou

rtesy

Con

tinuo

us

unhe

eded

re

ques

ts fo

r lin

e fu

nctio

n pl

ans/

prog

ram

mes

th

at n

eed

com

mun

icat

ion

supp

ort

Cou

rtesy

Pro

activ

e lin

e fu

nctio

n su

bmis

sion

of t

heir

plan

s/pr

ogra

mm

es

each

yea

r by

Nov

embe

r of t

he

curr

ent y

ear

Staf

f sug

gest

ion

onlin

e w

ebpa

ge (w

ebsi

te b

ased

in c

onju

nctio

n w

ith IT

/ IM

)S

ugge

stio

n on

line

DM

R w

ebpa

ge in

con

jctio

n w

ith IT

/IM w

ill b

e •

esta

blis

hed

to g

et e

mpl

oyee

s to

pos

t the

ir su

gges

tions

and

idea

sS

taff

sugg

estio

n sc

hem

es w

ill e

ncou

rage

idea

s an

d th

e be

st

• id

eas

can

be s

ingl

ed o

ut fo

r pra

ise

in th

e st

aff n

ewsl

ette

r or a

t C

omm

unic

atio

n to

faci

litat

e st

aff s

urve

ys e

very

two

year

sTo

ach

ieve

hig

h pa

rtici

patio

n, th

e su

rvey

s ne

ed to

be

con

den

tial.

• S

o it

is a

goo

d id

ea to

use

an

exte

rnal

age

ncy

to c

ondu

ct th

e su

rvey

and

mon

itor t

he re

sults

Par

ticip

atio

n w

ill a

lso

be e

ncou

rage

d th

roug

h po

ster

s, th

e st

aff

• ne

wsl

ette

r and

intra

net.

Pos

ters

, the

new

slet

ter a

nd in

trane

t will

al

so b

e us

ed to

feed

bac

k to

sta

ff th

e m

ain

ndi

ngs

from

the

surv

ey

and

any

actio

ns a

risin

g fro

m th

emS

urve

ys w

ill g

ive

valu

able

qua

ntita

tive

feed

back

on

ques

tions

•

rela

ting

to s

taff

satis

fact

ion,

mot

ivat

ion,

prio

ritie

s, v

iew

s an

d pe

rcep

tions

and

pre

fere

nces

Focu

s gr

oups

will

add

qua

litat

ive

feed

back

into

the

rese

arch

and

•

help

giv

e a

fulle

r pic

ture

. A

gain

will

be

cond

ucte

d by

an

exte

rnal

age

ncy

(GC

IS to

ass

ist

• D

MR

) to

give

gre

ater

cre

dibi

lity

to th

e co

n d

entia

lity

fact

or.

Esta

blis

hing

and

laun

chin

g D

MR

inte

rnal

Sta

ff ne

wsl

ette

rQ

uarte

rly p

ublis

hed

new

slet

ter f

or s

taff

will

pla

y a

vita

l rol

e in

inte

rnal

co

mm

unic

atio

ns –

esp

ecia

lly a

t a ti

me

of c

hang

e –

by:

prom

otin

g ke

y m

essa

ges

and

info

rmat

ion

• ce

lebr

atin

g st

aff a

nd D

MR

ach

ieve

men

ts•

pro

ling

indi

vidu

al s

taff

or te

ams

• pr

ovid

ing

‘sof

ter’

info

rmat

ion,

for e

xam

ple

abou

t sta

rters

and

•

leav

ers.

Ope

nnes

s an

d tra

nspa

renc

y

Com

mun

icat

ion

Stra

tegy

is

avai

labl

e to

all

EX

CO

and

oth

er

staf

f mem

bers

Ope

nnes

s an

d tra

nspa

renc

yC

ontin

uous

inte

ract

ion

and

cons

ulta

tions

on

the

chan

ging

nee

ds o

f lin

e fu

nctio

n br

anch

es

The

Dire

ctor

ate:

Com

mun

icat

ion

is e

ngag

ing

all D

MR

bra

nche

s to

giv

e us

thei

r pl

anne

d ev

ents

/ pro

gram

mes

as

part

of it

s on

goin

g co

nsul

tatio

ns o

n th

e ch

angi

ng

need

s of

line

func

tion

bran

ches

. The

uni

t is

curr

ently

wor

king

with

HR

D o

n th

e de

velo

pmen

t of D

MR

cor

pora

te v

ideo

to b

e pl

ayed

dur

ing

orie

ntat

ion

wor

ksho

ps fo

r ne

w e

mpl

oyee

s. T

he U

nit i

s al

so a

ssis

ting

HR

D in

dev

elop

ing

and

prin

ting

of th

eir

prom

otio

nal m

ater

ials

, whi

ch in

clud

es O

rient

atio

n br

ochu

re, p

oste

rs, p

amph

lets

etc

.

Dire

ctor

ate:

Com

mun

icat

ions

K

EY

SER

VIC

ESE

RVI

CE

BEN

EFIC

IARY

CU

RR

ENT

STA

ND

AR

DD

ESIR

ED S

TAN

DA

RD

(201

0/11

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

O10

/201

1


38



Pro

vide

an

ef c

ient

E

xter

nal

and

Inte

rnal

co

mm

unic

atio

n se

rvic

e to

bot

h th

e D

MR

and

M

inis

try

Sou

th A

frica

n P

ublic

, DM

R

stak

ehol

ders

an

d In

tern

al

staf

f

Info

rmat

ion

Com

mun

icat

ion

polic

y on

the

intra

net

Info

rmat

ion

All

DM

R p

olic

ies

and

guid

elin

es a

nd p

roce

dure

s av

aila

ble

on th

e in

trane

t

The

Uni

t thr

ough

its

Web

site

Com

mitt

ee, c

haire

d by

the

Dire

ctor

: Com

mun

icat

ion

ensu

res

that

mem

bers

who

wer

e ap

poin

ted

by th

e D

G, r

epre

sent

ing

all b

ranc

hes

cont

inue

to s

ubm

it th

eir p

olic

ies

and

guid

elin

es. I

t is

the

resp

onsi

bilit

ies

of W

ebsi

te

com

mitt

ee m

embe

rs to

con

stan

tly m

onito

r the

web

site

to e

nsur

e up

date

d po

licie

s pe

rtain

ing

to th

eir b

ranc

hes

are

on th

e D

MR

web

site

.

Red

ress

Chi

ef D

irect

orat

e gi

ve

EX

CO

repo

rts d

urin

g di

rect

orat

e m

eetin

gsR

edre

ss

Rep

ort o

n al

l med

ia

cove

rage

rela

ted

to th

e D

MR

and

min

ing

indu

stry

to

the

EX

CO

mee

tings

The

Uni

t con

tinue

s to

mon

itor n

ews

cove

rage

(prin

t and

ele

ctro

nic)

on

daily

bas

is.

A m

edia

ana

lysi

s re

port

is p

repa

red

for E

XC

O o

n is

sues

that

requ

ire in

terv

entio

n or

th

at a

ppra

ise

them

on

the

new

s co

vera

ge p

erta

inin

g to

min

ing

and

min

eral

s se

ctor

gl

obal

ly.

Valu

e fo

r mon

ey

All

com

mun

icat

ions

se

rvic

es a

re b

eing

of

fere

d w

ithin

the

‘val

ue

for m

oney

’ con

cept

, bu

t thi

s is

not

alw

ays

poss

ible

as

requ

ests

co

me

in v

ery

late

, re

duci

ng ti

me

on

getti

ng v

alue

for t

he

mon

ey u

sed

Valu

e fo

r m

oney

Pro

perly

pro

cure

d se

rvic

es

to e

nsur

e va

lue

for m

oney

The

unit

has

man

aged

to im

prov

e its

pro

cure

men

t pro

cess

es e

nsur

ing

that

w

e tig

hten

our

bud

gets

. We

have

a d

edic

ated

of

cial

who

has

a S

uppl

y C

hain

M

anag

emen

t bac

kgro

und.

The

pre-

qual

i ca

tion

for s

ervi

ce p

rovi

ders

to re

nder

var

ious

ser

vice

s w

hen

requ

ired

by th

e D

epar

tmen

t of M

iner

al R

esou

rces

for p

erio

d of

12

mon

ths.

The

aim

is to

ens

ure

proc

urem

ent p

roce

dure

s ar

e fo

llow

ed w

hen

sour

cing

se

rvic

es. T

his

will

als

o as

sist

in m

aint

aini

ng h

igh

stan

dard

of q

ualit

y as

sura

nce

in th

e w

ork

and

supp

ort s

ervi

ces

that

we

rend

er to

our

clie

nts.

Thi

s w

ill re

sult

in

getti

ng v

alue

for m

oney

.

The

cont

inui

ng o

f ll

ing

of th

e va

cant

pos

ts w

ithin

will

als

o im

prov

e ou

r ser

vice

de

liver

y en

surin

g th

e se

rvic

e w

e of

fer i

s of

val

ue fo

r mon

ey.

A co

nstra

int i

s th

at th

e cu

rren

t n

anci

al a

lloca

tion

for t

he D

irect

orat

e is

inad

equa

te.

Cos

t

As

per b

udge

t al

loca

tion

Cos

t

Mor

e pr

oact

ive

invo

lvem

ent

in th

e bu

dget

ing

proc

ess

to e

nsur

e al

loca

tion

is

stre

amlin

ed w

ith p

riorit

ies

The

Uni

t int

erac

ts w

ith E

xpen

ditu

re m

anag

emen

t and

Fin

ance

on

a w

eekl

y ba

sis.

Th

e A

dmin

Of

cer u

nder

take

s an

exp

endi

ture

ana

lysi

s on

a w

eekl

y ba

sis

to e

nsur

e pr

oces

sing

of a

ll in

voic

es. A

ll bu

dget

item

s ar

e be

ing

mon

itore

d on

a w

eekl

y ba

sis

to e

nsur

e th

at th

ere

is n

o ov

er/u

nder

exp

endi

ture

.

Dire

ctor

ate:

Com

mun

icat

ions

K

EY S

ERVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

DES

IRED

STA

ND

AR

D (2

010/

11)

PRO

GR

ESS

AS

AT 3

1 M

AR

CH

2O

10/2

011

39


Purpose: The purpose of the Branch: Chief Financial Of ce is to provide strategic and administrative support services to the

Ministry and the Department. Headed by the Chief Financial Of cer, the branch consists of the following components:

Supply Chain Management • which is primarily responsible for providing procurement, logistics and asset management service

to the Department;

Information and Communications Technology• which provides Information technology (infrastructure and networks) services

as well as the development and maintenance of application systems;

Financial Planning and Management Accounting• which is responsible for coordinating the budget process, revenue

management and reporting on all nancial matters, including annual nancial statements expenditure reports prescribed in the

PFMA;

Expenditure Management• responsible for ensuring that all payments to service providers and departmental employees are

done on time and within a controlled environment to ensure compliance; and

Transport, Facilities and Records Managemen• t which is responsible for the provision of adequate facilities, including

accommodation, transport and records management services to the Department.

Achievements

Budget and expenditure

The Department recorded a 0.12% under-spending on allocated budget for 2010/11 which is far below the 5% threshold set by

National Treasury. This was realised through effective and continuous monitoring processes that were implemented during the

year.

The process of compiling the 2011/12 budget and ENE chapter for the Department was also completed during the year under

review. All branches have compiled and submitted their spending plans which were used as a basis for projecting the monthly

expenditure.

Policies and procedures

In the pursuit for consistency and to eliminate non-compliance, various policies were approved and implemented during the year.

Parallel to the development of these policies, procedures were also developed.

Service delivery/turnaround times

The Branch has completed the process of developing a service catalogue which de nes the standard turnaround time for each

service rendered within the Branch. This will form the basis for monitoring actual turnaround times on a monthly basis. Ten (10)

service level agreements were also concluded with various vendors and implemented during 2010/11.

PROGRAMME 1.1: CHIEF FINANCIAL OFFICE


40



Compliance matters

In an effort to eliminate cases of non-compliance with the procurement procedure that has seen signi cant increase in irregular

expenditure incurred during 2010/2011, the following measures have been put in place:

Improved liaison with the National Treasury Supply Chain Management Norms and Standard Component•

Consistent reporting of suspected irregular expenditure to Managers for investigation and for taking necessary disciplinary • measures against the transgressor.

Quarterly reporting of performance against the irregular expenditure measures to Programme Managers.•

The Accounting Of cer granting condonation of irregular expenditure only after the Responsibility Manager has reported • the corrective measure taken against the transgressor

The medium to long term vision for the department in this regard is to eliminate the non-compliance entirely.

The Department continued to compile a monthly compliance certi cate as required by the National Treasury. The level of

compliance against a target of 100% was recorded at 98%.

Facilities

During the year under review, the Department of Mineral Resources relocated its head of ce to new premises in order to improve

the morale of staff and improve the overall image of the Department. The relocation had become a necessity due to the appalling

condition of the previous head of ce building.

Information and Communication Technology

The entire ICT infrastructure was also upgraded in order to improve ef ciency in the work of the Department. This has resulted in

increased capacity as well as improved security around the DMR network.

41


PRO

GR

AM

ME

1.1:

CH

IEF

FIN

AN

CIA

L O

FFIC

E

OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Driv

e Tr

ansf

orm

atio

n P

olic

ies

% C

ompl

ianc

e w

ith E

mpl

oy-

men

t Equ

ity T

arge

ts

9790

7G

Veri

cat

ion

sour

ce: E

E s

tats

from

HR

. N

atio

nal

Targ

et C

alcu

latio

ns N

atio

nalit

y G

ende

r Abi

lity

Afri

can

Whi

te C

olou

red

Indi

an T

OTA

L M

ale

Fem

ale

TOTA

L D

isab

led

Abl

ed T

OTA

L N

atio

nal T

arge

ts 7

9.4

9.2

8.8

2.6

100

48.7

51.

3 10

0 2

98 1

00 A

ctua

l 93

7 0

0 10

0 37

63

100

0 98

98

Varia

nce

13.6

-2.2

-8.8

-2.6

0.

00 -1

1.7

11.7

0 -2

0 -2

DE

PAR

TME

NTA

L TO

TAL

AC

HIE

VE

D 9

9.33

333

DE

PAR

TME

NTA

L TO

TAL

VAR

IEN

CE

-2.0

0 D

EPA

RTM

EN

TAL

GR

AN

D T

OTA

L A

CH

IEV

ED

97.

33 B

ranc

h Ta

rget

s C

alcu

latio

ns

Nat

iona

lity

Gen

der A

bilit

y A

frica

n W

hite

Col

oure

d In

dian

TO

TAL

Mal

e Fe

mal

e TO

TAL

Dis

able

d A

bled

TO

TAL

Bra

nch

Targ

ets

79.4

9.2

8.8

2.6

100

48.

7 51

.3

100

2 98

100

Act

ual 9

3 7

0 0

100

37 6

3 10

0 0

98 9

8 Va

rianc

e 0

-2.2

-8.8

-2.6

-13.

60 -1

1.7

0 -1

1.7

-2 0

-2

BR

AN

CH

TO

TAL

AC

HIE

VE

D 9

9.33

333

BR

AN

CH

TO

TAL

VAR

IEN

CE

-27.

30 B

RA

NC

H G

RA

ND

TO

TAL

AC

HIE

VE

D 7

2.03

% P

rocu

rem

ent s

pend

on

targ

eted

gro

ups

37.9

40-2

.1Y

Veri

cat

ion

Sou

rce:

BE

E S

pend

Rep

ort.

Muc

h of

de

partm

enta

l spe

nt is

on

IT a

nd C

onsu

ltatio

n re

late

d se

rvic

es w

here

in th

ere

is la

ck o

f BE

E c

ompa

nies

pa

rtici

patio

n

To e

ncou

rage

join

t ven

ture

s be

twee

n B

EE

and

non

e

BE

E c

ompa

nies

on

IT a

nd

cons

ulta

tion

serv

ices

.

Edu

cate

and

Com

mun

i-ca

te w

ith S

take

hold

ers

% In

crea

se in

the

Num

ber o

f H

DS

A pa

rtici

patin

g in

Dep

art-

men

tal P

rocu

rem

ent

1210

2G

39/

337*

100=

12%

Ver

i ca

tion

Sou

rce:

Rep

ort o

n re

gist

ered

sup

plie

rs


42


PROGRAMME 1.1: CHIEF FINANCIAL OFFICEO

BJE

CTI

VEM

EASU

RE

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Dev

elop

and

Rev

iew

In

tern

al P

roce

sses

Num

ber o

f Gui

delin

es

Rev

iew

ed0

00

B

Num

ber o

f Int

erna

l P

roce

sses

Iden

ti e

d fo

r R

evie

w14

59

G

Veri

cat

ion

Sou

rce:

SC

M: I

mpr

ovem

ent o

n pr

ocur

emen

t pro

cess

, Ass

et M

anag

emen

t pro

cess

; FP

MA

: Rev

enue

Adm

inis

tratio

n an

d C

ell p

hone

ad

min

istra

tion

proc

esse

s; T

FRM

: Tra

nspo

rt M

anag

emen

t Pro

cess

and

Fac

ilitie

s M

anag

emen

t pr

oces

s; E

M: S

&T

proc

ess,

Pay

men

t pro

cess

, Pay

roll

& A

llow

ance

pro

cess

and

Tre

atm

ent o

f una

utho

rised

, irr

egul

ar, f

ruitl

ess

and

was

tefu

l exp

endi

ture

. IT:

H

elpd

esk,

Cha

nge

Con

trol a

nd IT

Equ

ipm

ent

Acq

uisi

tion

proc

esse

s; S

DM

: Cha

nge

Man

agem

ent

Pro

cess

Num

ber o

f Int

erna

l P

roce

sses

Impl

emen

ted

135

8G

SC

M: I

mpr

ovem

ent o

n pr

ocur

emen

t, A

sset

M

anag

emen

t pro

cess

; FP

MA

: Rev

enue

A

dmin

istra

tion

and

Cel

l pho

ne A

dmin

istra

tion

proc

esse

s; T

FRM

: Tra

nspo

rt M

anag

emen

t Pro

cess

an

d Fa

cilit

ies

Man

agem

ent p

roce

ss; E

M: S

&T

proc

ess,

Pay

men

t, P

ayro

ll A

llow

ance

and

Tre

atm

ent

of u

naut

horis

ed, i

rreg

ular

, fru

itles

s an

d w

aste

ful

expe

nditu

re; I

T: H

elpd

esk

and

Cha

nge

Con

trol,

SD

M:

Cha

nge

Man

agem

ent P

roce

ss

Num

ber o

f Int

erna

l P

roce

sses

Rev

iew

ed13

58

G

Veri

cat

ion

Sou

rce:

SC

M: I

mpr

ovem

ent o

n pr

ocur

emen

t, A

sset

Man

agem

ent p

roce

ss;

FPM

A: R

even

ue A

dmin

istra

tion

and

Cel

l pho

ne

adm

inis

tratio

n pr

oces

s; T

FRM

: Tra

nspo

rt M

anag

emen

t pro

cess

and

Fac

ilitie

s M

anag

emen

t P

roce

ss; E

M: S

&T

proc

ess,

Pay

men

t, P

ayro

ll &

A

llow

ance

and

Tre

atm

ent o

f una

utho

rised

, irr

egul

ar &

fru

itles

s w

aste

ful e

xpen

ditu

re.

Impl

emen

t Pol

icie

s an

d G

uide

lines

Num

ber o

f Gud

elin

es/

Pro

cedu

res

Dev

elop

ed4

40

GVe

ri c

atio

n S

ourc

e: R

ecor

ds M

anag

emen

t pro

cedu

re

man

ual,

UR

S g

uide

line,

ICT

chan

ge m

anag

emen

t pr

oced

ure

man

ual a

nd S

DM

pro

cedu

re m

anua

l.

Num

ber o

f Pol

icie

s D

evel

oped

44

0G

Ve

ri c

atio

n S

ourc

e: R

ecor

ds M

anag

emen

t P

olic

y, S

uppl

y C

hain

Man

agem

ent P

olic

y, B

udge

t m

anag

emen

t and

Fin

anci

al P

rovi

sion

ing

for

Reh

abili

tatio

n.

Num

ber o

f Pol

icie

s R

evie

wed

1210

2G

Veri

cat

ion

Sou

rces

: SC

M: P

rocu

rem

ent

Pol

icy,

TFR

M: M

ail M

anag

emen

t, Fa

cilit

ies

Man

agem

ent a

nd T

rans

port

Man

agem

ent;

SD

M:

ICT

Usa

ge M

anag

emen

t; E

M: P

aym

ent P

olic

y

and

Sal

arie

s an

d A

llow

ance

Pol

icy,

FP

MA

: Cel

lula

r ph

one

man

agem

ent,

Telk

om

xed

line

phon

e m

anag

emen

t, E

xter

nal d

ebt m

anag

emen

t, C

ash

Col

lect

ion

and

Pet

ty C

ash

Pol

icy.

43


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Impl

emen

t Ser

vice

Le

vel A

gree

men

ts

% A

dher

ence

to S

LA's

010

0-1

00R

Alth

ough

12

SLA

's w

ere

sign

ed a

nd im

plem

ente

d,

ther

e w

as n

o fo

rmal

mon

itorin

g to

ol in

pla

ce to

m

easu

re p

erce

ntag

e ad

here

nce.

The

Bra

nch

will

deve

lop

mon

itorin

g to

ols

in th

e ne

xt

nan

cial

yea

r.

Num

ber o

f SLA

Impl

emen

ted

1012

-2Y

Veri

cat

ion

Sou

rce:

EM

: x4

SLA

s'; T

FRM

: x1

SLA

; IT:

x5

SLA

s S

ome

SLA

s' c

ould

not

be

impl

emen

ted

due

to la

ck o

f cap

acity

.

The

Bra

nch

will

impl

emen

t ot

her S

LAs'

in th

e ne

xt

nan

cial

yea

r.

Impr

ove

Turn

arou

nd

Tim

e%

Adh

eren

ce to

Pre

scrib

ed

Tim

e Fr

ames

(SLA

's) (

OLA

)47

.14

100

-52.

86R

Veri

cat

ion

Sou

rce:

Ser

vice

Cat

alog

ue F

orm

ula:

To

tal N

o. o

f Pro

cess

es A

chie

ved

(33)

/Tot

al N

o. o

f P

roce

sses

(70)

*10

0 S

ome

of th

e pr

oces

ses

wer

e no

t m

onito

red

in te

rms

of tu

rn a

roun

d tim

es

Turn

arou

nd ti

me

on p

roce

ss

will

be m

onito

red

on a

m

onth

ly b

asis

in th

e ne

xt

nan

cial

yea

r

Attr

act,

Dev

elop

and

re

tain

Ski

lls

% o

f Sta

ff w

ith P

DP

's67

80-1

3Y

Veri

cat

ion

sour

ce: T

rain

ing

Nee

ds S

ubm

itted

to

HR

D. C

alcu

latio

ns: N

umbe

r of S

taff

Sub

mitt

ed

Trai

ning

Nee

ds (8

6) /

Tota

l num

ber o

f sta

ff co

mpl

emen

t at e

nd o

f qua

rter (

129)

* 1

00 =

66.

6 (r

ound

ed o

ff to

67)

% S

taff

Turn

over

from

leve

l 713

20-7

YVe

ri c

atio

n S

ourc

e: T

urno

ver r

ate

from

leve

l 7 re

port

from

HR

Aver

age

leng

th o

f Tim

e to

Fill

Va

canc

ies

53

2R

Veri

cat

ion

sour

ce: S

prea

d sh

eet o

n ll

ing

of v

acan

t po

sts

Form

ula:

Tot

al N

o. o

f Mon

ths

take

n to

ll

Pos

ts

(158

) / T

otal

No.

of P

osts

(32)

= 4

.93

(Rou

nded

off

to

5) D

elay

in

nalis

atio

n of

bud

get d

ue to

the

split

.

The

Bra

nch

will

ll

vaca

nt

posi

tions

by

June

201

1.

Turn

arou

nd ti

mes

on

llin

g Va

cant

pos

ts5

32

R

Veri

cat

ion

sour

ce: S

prea

d sh

eet o

n ll

ing

of v

acan

t po

sts

Form

ula:

=15

8 (to

tal N

o. o

f mon

ths

take

n to

ll

pos

ition

s) ÷

32

(tota

l No.

of p

ositi

ons)

Del

ay in

n

alis

atio

n of

bud

get d

ue to

spl

it.

The

Bra

nch

will

ll

vaca

nt

posi

tions

by

June

201

1.

Driv

e In

nova

tion

Num

ber o

f Pro

cess

es

Impr

oved

136

7G

EM

: Im

prov

ed re

porti

ng o

n lia

bilit

y fo

r for

eign

Trip

s,

Red

uced

mis

allo

catio

n du

e to

jour

nal p

roce

sses

an

d C

orre

ct A

llow

ance

Cod

es o

n C

laim

s; F

PM

A:

Dra

win

gs in

form

ed b

y S

igne

d S

pend

ing

plan

s ; S

CM

: Im

prov

ed re

conc

iliat

ion

of a

sset

dur

ing

Rel

ocat

ion

proc

ess,

Eas

y id

enti

cat

ion

of D

ispo

sed

asse

t, R

educ

ed m

isal

loca

tions

on

jour

nals

, im

prov

ed

reco

rdin

g of

Los

ses,

Impr

oved

reco

rds

on L

ease

d eq

uipm

ent,

Bid

Pro

cess

: Im

prov

ed c

ontra

ct

man

agem

ent t

hrou

gh in

trodu

ctio

n of

Leg

al s

ervi

ces

to m

inim

ise

poss

ible

litig

atio

ns, I

mpr

oved

turn

arou

nd

time

thro

ugh

elim

inat

ion

of B

AC

sub

mis

sion

; IT:

Im

prov

ed IT

sec

urity

thro

ugh

user

dea

ctiv

atio

n pr

oces

s &

Impr

oved

reco

rds

and

track

ing

of lo

aned

IT

equ

ipm

ent

Valu

e of

Cos

t Sav

ings

175

12G

R13

9,25

5.55

was

cha

rged

for p

rintin

g pa

pers

in

2009

/10

whi

le R

1154

31.2

5 fo

r 201

0/11

i.e.

R13

9 25

5.55

- R

115

341

= 23

824

.30

/ 139

255

.55

* 10

0 =

17.1

%


44


PROGRAMME 1.1: CHIEF FINANCIAL OFFICEO

BJE

CTI

VEM

EASU

RE

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Impl

emen

t Effe

ctiv

e S

yste

ms

% R

educ

tion

in th

e N

umbe

r of

ICT

Rel

ated

Com

plai

nts

030

-30

RU

nava

ilabi

lity

of H

elpd

esk/

inci

dent

repo

rts.

Enh

ance

ser

vice

des

k E

nviro

nmen

t to

gene

rate

ac

cura

te a

nd a

dequ

ate

inci

dent

s re

porte

d by

Jun

e 20

11

Incr

ease

the

Avai

labi

lity

of

Sys

tem

s0

90-9

0R

Lack

of m

onito

ring

tool

s du

e to

cha

nges

in th

e lic

ense

s.

Pro

cess

of a

ppoi

ntin

g a

serv

ice

prov

ider

to d

o ne

twor

k as

sess

men

t hav

e co

mm

ence

d an

d w

ill be

co

mpl

eted

in th

e ne

xt

nan

cial

yea

r.

Num

ber o

f Aw

aren

ess

Initi

ativ

es In

trodu

ced

33

0G

Veri

cat

ion

Sou

rce:

Mem

o on

ICT

appr

oved

po

licie

s, U

se o

f Mem

ory

Stic

ks a

nd In

tern

et

Con

nect

ion

Impr

ove

Man

agem

ent a

nd

lead

ersh

ip C

apab

ilitie

s

% M

anag

emen

t Com

plet

ed

the

Man

agem

ent C

ours

es11

.42

80-6

8.58

R

7 m

anag

ers

regi

ster

ed, 4

alre

ady

com

plet

ed a

nd

3 w

ill c

ompl

ete

the

cour

se in

the

2011

/12

nan

cial

ye

ar. N

o. o

f Man

ager

s co

mpl

eted

the

cour

se (4

) /

Tota

l Num

ber o

f Man

ager

s w

ithin

CFO

Bra

nch

* 10

0 =

11.4

2 %

The

prog

ram

me

has

sinc

e st

arte

d an

d sh

ould

be

com

plet

ed in

the

2011

/12

nan

cial

yea

r.

% o

f PD

P's

Alig

ned

to

Man

agem

ent R

equi

rem

ents

100

100

0G

Veri

cat

ion

Sou

rce:

Sig

ned

wor

k pl

ans/

Per

form

ance

A

gree

men

t

Num

ber o

f 360

deg

ree

of

Ass

essm

ents

Com

plet

ed0

6-6

RC

apac

ity C

onst

rain

ts.

The

Bra

nch

will

con

duct

36

0 de

gree

ass

essm

ent i

n th

e 20

11/1

2 n

anci

al y

ear.

Pro

mot

e C

ore

Valu

es

% o

f ide

nti

ed c

ritic

al

posi

tions

sec

urity

cle

ared

1110

0-8

9R

Not

Ach

ieve

d. V

ettin

g P

roce

ss o

nly

com

men

ced

in

Sep

tem

ber 2

010.

6 (T

otal

num

ber o

f ide

nti

ed c

ritic

al

posi

tions

sec

urity

cle

ared

) / 5

7 (T

otal

num

ber o

f id

enti

ed

criti

cal p

ositi

ons)

* 1

00 =

11%

The

rem

aind

er o

f the

cr

itica

l pos

ition

s id

enti

ed

will

be

vette

d in

the

2011

/12

nan

cial

yea

r, in

co

nsul

tatio

n w

ith S

ecur

ity

Ris

k M

anag

emen

t.

Num

ber o

f Cor

e Va

lues

W

orks

hops

Con

duct

ed7

61

Gve

ri c

atio

n so

urce

: Min

utes

and

Cor

e Va

lues

Num

ber o

f Ser

vice

Del

iver

y Im

prov

emen

t Ini

tiativ

es

Impl

emen

ted

66

0G

Veri

cat

ion

sour

ce: S

ervi

ce D

eliv

ery

Impr

ovem

ent

Pla

n

45


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Alig

n B

udge

t to

Stra

tegy

% B

udge

t Alig

ned

to S

trate

gy10

095

5G

Veri

cat

ion

sour

ce: S

ched

ule

on d

etai

led

spen

ding

pl

an a

nd E

NE

201

1

Man

age

Cos

ts

effe

ctiv

ely

% V

aria

nce

on A

lloca

ted

Bud

get f

or g

oods

and

S

ervi

ces

0.12

5-4

.88

GD

epar

tmen

t at 0

.12%

und

ersp

endi

ng.

Red

uctio

n in

Was

tefu

l, fru

itles

s an

d irr

egul

ar

Exp

endi

ture

95.9

060

35.9

R

Veri

cat

ion

sour

ce: I

rreg

ular

Exp

endi

ture

R

epor

t R 7

,974

.065

cur

rent

irre

gula

r R

4070

371.

45 p

revi

ous

year

ave

rage

R7,

974.

065.

/R

4,07

0,37

1.45

*100

%=1

95.9

0 %

- 10

0% =

95.

9%

As

per r

espo

nse

that

will

be

rece

ived

from

Nat

iona

l Tr

easu

ry.

Max

imis

e U

tilis

atio

n of

R

esou

rces

% R

educ

tion

in th

e N

umbe

r of

Ass

ets

Dis

pose

d pr

ior t

o th

e E

nd L

ifesp

an1

10

GB

asel

ine

Est

ablis

hed.

Pro

gres

s w

ill b

e re

porte

d in

th

e ne

xt

nanc

ial y

ear.

The

tota

l val

ue o

f the

Los

s R

121,

946

in 2

010/

11

Pro

mot

e co

rpor

ate

gove

rnan

ce

% e

xecu

tion

of F

raud

pr

even

tion

and

ER

M

impl

emen

tatio

n pl

ans

010

0-1

00R

Ris

k as

sess

men

t wer

e pe

rform

ed a

nd ri

sk

man

agem

ent c

omm

ittee

met

dur

ing

the

year

. Ris

k ch

ampi

on fo

rum

was

con

stitu

ted

durin

g th

e ye

ar.

Ris

k ch

ampi

ons

will

act

ivel

y ad

dres

s ris

k tre

atm

ent

actio

ns p

lans

dur

ing

2011

/12.

Com

ply

with

PFM

A97

.510

0-2

.5Y

Febr

uary

per

iod:

100

%+1

00%

+100

%+9

0%/4

=97.

5%

Veri

cat

ion

Sou

rce:

Com

plia

nce

Cer

ti c

ate

Com

ply

with

PS

A10

010

00

GTh

e D

epar

tmen

t is

com

plia

nt w

ith re

leva

nt p

olic

ies:

Ve

ri c

atio

n so

urce

: HR

Pol

icie

s

Num

ber o

f rep

eat

ndi

ngs

on

inte

rnal

aud

it fo

llow

up

repo

rt19

019

RH

elpd

esk

and

Sof

twar

e re

com

men

datio

ns n

ot fu

lly

impl

emen

ted

due

to s

horta

ge o

f sta

ff an

d re

loca

tion

to T

reve

nna

Cam

pus.

An

actio

n pl

an to

add

ress

re

peat

nd

ing

has

been

de

velo

ped.

Unq

uali

ed

Aud

it R

epor

t0

00

YP

rogr

ess

on u

nqua

li e

d au

dit r

epor

t is

pend

ing

AG

re

port.

Any

issu

es a

risin

g fro

m

the

Aud

it R

epor

t will

be

addr

esse

d in

the

2011

/12

nan

cial

yea

r.


46



EXPE

ND

ITU

RE

MA

NA

GEM

ENT

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

(201

0/11

)D

ESIR

ED S

TAN

DA

RD

(201

1/12

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

011

Pay

cre

dito

rs

invo

ices

with

30

days

on

rece

ipt o

f in

voic

e

Ext

erna

l an

d in

tern

al

stak

ehol

ders

Qua

ntity

30 d

ays

Qua

ntity

21 d

ays

All

paym

ents

gen

erat

ed fr

om th

e E

xpen

ditu

re M

anag

emen

t wer

e pr

oces

sed

with

in th

e de

ned

tim

e fra

me

Qua

lity

<7%

reje

ctio

n du

e to

in

corr

ect l

oade

d ba

nk

deta

ils a

nd v

eri

catio

nQ

ualit

y<

3% re

ject

ion

due

to in

corr

ect

load

ed b

ank

deta

ils a

nd

veri

cat

ion

No

reje

ctio

ns d

ue to

wro

ngly

cap

ture

d in

form

atio

n

Con

sulta

tion

Rea

ctiv

e: te

leph

one

and

e-m

ails

Con

sulta

tion

Info

rmat

ive:

circ

ular

s, m

emos

, le

tters

, tel

epho

nes,

e-m

ails

an

d ph

ysic

al c

onta

ct

Mem

os o

n S

&T,

sal

arie

s an

d IR

P5

certi

cat

e ci

rcul

ated

. Con

rmat

ion

of

bala

nces

lette

rs w

ere

sent

to v

ario

us

depa

rtmen

ts o

n qu

arte

rly b

asis

.

Acc

ess

Man

ual a

nd e

lect

roni

c in

voic

e an

d bo

ok o

ut

regi

ster

Acc

ess

Inte

grat

ed re

gist

ers

on S

.Driv

eIn

tegr

ated

pay

men

t reg

iste

r for

sun

dry

and

orde

r pay

men

ts u

pdat

ed o

n m

onth

ly b

asis

on

S.D

rive.

Cou

rtesy

Rea

sons

for d

elay

ed

paym

ent p

rovi

ded

inco

nsis

tent

lyC

ourte

syR

easo

ns fo

r del

ayed

pay

men

t pr

ovid

ed c

onsi

sten

tly

Inte

rnal

and

ext

erna

l clie

nts

are

info

rmed

of t

he re

ason

s fo

r del

ays

cons

iste

ntly.

Ope

nnes

s an

d tra

nspa

renc

yR

eact

ive:

del

ays

expl

aine

d on

enq

uiry

Ope

nnes

s an

d tra

nspa

renc

yP

roac

tive:

del

ays

expl

aine

d on

id

enti

cat

ion

Pay

men

ts/c

laim

s/fo

rms

are

sent

bac

k fo

r cor

rect

ions

with

in

ve d

ays

of

rece

ipt

Info

rmat

ion

Rem

ittan

ce a

dvic

e/pa

ymen

t st

ubs

Info

rmat

ion

Pol

icy

and

proc

edur

es,

tem

plat

es, r

emitt

ance

adv

ice/

paym

ent s

tubs

Pay

men

t stu

bs a

re fa

xed

to th

e be

ne c

iary

with

thre

e da

ys o

f di

sbur

sem

ent a

nd th

e pa

yslip

s ar

e se

nt

to th

e in

tern

al c

lient

bef

ore

paym

ent

date

.

Red

ress

Com

plai

nts

and

enqu

iries

m

ade

in a

d ho

c m

anne

rR

edre

ssE

stab

lish

com

plai

nts

and

enqu

iries

cen

treIn

divi

dual

que

ry lo

gs d

evel

oped

sin

ce

2009

ser

ving

as

com

plai

nts

regi

ster

.

Valu

e fo

r mon

eyTi

mel

y pa

ymen

ts th

at d

o no

t attr

act

nan

ce c

harg

es

Valu

e fo

r mon

eyTi

mel

y pa

ymen

ts th

at d

o no

t at

tract

na

nce

char

ges

All

paym

ents

effe

cted

on

time

and

no

inte

rest

cha

rged

due

to d

elay

s.

Tim

eB

y M

arch

201

1Ti

me

By

Mar

ch 2

012

On

track

Cos

tB

udge

tC

ost

Rem

uner

atio

n fo

r add

ition

al

cost

All

fund

ed p

osts

wer

e ll

ed

Serv

ice

Del

iver

y Im

prov

emen

t Pla

ns

Bra

nch:

Chi

ef F

inan

cial

Of

ce

47


EXPE

ND

ITU

RE

MA

NA

GEM

ENT

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

(201

0/11

)D

ESIR

ED S

TAN

DA

RD

(201

1/12

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

011

Rec

onci

le

Pay

men

ts

Ext

erna

l an

d in

tern

al

stak

ehol

ders

Qua

ntity

90%

of p

aym

ents

reco

ncile

dQ

uant

ity10

0% o

f pay

men

ts re

conc

iled

Inte

grat

ed re

gist

ers

for a

ll qu

arte

rs

wer

e pr

oper

ly re

conc

iled

and

revi

ewed

Qua

lity

Orig

in o

f all

paym

ents

is

veri

ed

Qua

lity

Pay

men

ts n

ot o

rigin

ated

from

D

MR

is p

reve

nted

Phy

sica

l bat

ches

ver

i ed

on

daily

bas

is

with

dis

burs

emen

t rep

ort

Con

sulta

tion

Rea

ctiv

e: a

nom

alie

s id

enti

ed

upon

enq

uiry

Con

sulta

tion

Pro

activ

e: d

aily

reco

ncili

atio

ns

enab

le th

e an

omal

ies

to

be p

icke

d up

bef

ore

EFT

is

effe

cted

No

anom

alie

s pi

cked

up

whi

le

perfo

rmin

g da

ily re

conc

iliat

ion

Acc

ess

Tick

ed d

isbu

rsem

ent l

ist

Acc

ess

Rec

onci

liatio

n st

atem

ent o

n S

.Driv

eIn

tegr

ated

regi

ster

s re

conc

iled

are

on

S.D

rive

and

hard

cop

ies

are

led

Cou

rtesy

Rea

sons

for u

n-re

conc

iled

item

s is

pro

vide

d re

gula

rlyC

ourte

syR

easo

ns fo

r un-

reco

ncile

d ite

ms

are

prov

ided

dai

ly u

pon

reco

ncili

atio

n

All

paym

ents

wer

e re

conc

iled

with

ph

ysic

al b

atch

and

dis

burs

emen

t re

ports

.

Ope

nnes

s an

d tra

nspa

renc

yR

epor

t on

exce

ptio

n on

lyO

penn

ess

and

trans

pare

ncy

Incl

usiv

e an

d co

mpu

lsor

y re

porti

ng

Inte

grat

ed re

gist

ers

incl

usiv

e of

all

invo

ices

rece

ived

for p

roce

ssin

g to

geth

er w

ith tu

rnar

ound

tim

e ar

e ke

pt.

Info

rmat

ion

Dis

burs

emen

t rep

orts

Info

rmat

ion

Rec

onci

led

disb

urse

men

t and

st

atem

ent

All

daily

reco

ncile

d di

sbur

sem

ent

repo

rts d

one

and

read

ily a

vaila

ble

Red

ress

Inva

lid tr

ansa

ctio

ns id

enti

ed

afte

r dis

burs

emen

tR

edre

ssIn

valid

tran

sact

ions

iden

ti e

d an

d bl

ocke

d be

fore

fund

s ar

e di

sbur

sed

No

inva

lid tr

ansa

ctio

ns p

asse

d

Valu

e fo

r mon

eyP

ortio

n of

mon

ey is

re

cove

rabl

eVa

lue

for m

oney

The

who

le is

reco

vere

d an

d th

e fu

nds

are

trans

ferr

ed to

va

lid b

ene

cia

ries

only

All

fund

s w

ere

trans

ferr

ed to

the

valid

be

ne c

iarie

s

Tim

eW

ithin

the

sam

e m

onth

of

paym

ent a

nd o

ngoi

ngTi

me

With

in a

day

of p

aym

ent r

un

and

ongo

ing

No

trans

fers

of f

unds

to in

valid

be

ne c

iarie

s to

ok p

lace

Cos

tIn

vest

igat

ions

cos

ts o

n fra

udul

ent c

ases

Cos

tR

emun

erat

ion

of o

f ci

al to

im

plem

ent c

ontro

l mea

sure

sA

ll fu

nded

pos

ts w

ere

lled


48



EXPE

ND

ITU

RE

MA

NA

GEM

ENT

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

(201

0/11

)D

ESIR

ED S

TAN

DA

RD

(201

1/12

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

011

Impr

ove

turn

arou

nd ti

me

Ext

erna

l an

d in

tern

al

stak

ehol

ders

Qua

ntity

All

proc

esse

sQ

uant

ityA

ll pr

oces

ses

All

inte

rnal

pro

cess

es w

ere

follo

wed

on

all t

he p

roce

ssed

tran

sact

ion

Qua

lity

Aver

age

turn

arou

nd ti

me

per

mon

th is

exc

eede

d by

not

m

ore

than

7%

Qua

lity

Aver

age

turn

arou

nd ti

me

per

mon

th is

exc

eede

d by

not

m

ore

than

5%

Ann

ual a

vera

ge tu

rnar

ound

tim

e no

t ex

ceed

ed

Con

sulta

tion

Rea

ctiv

e: o

n en

quiry

and

on

com

pila

tion

of m

onth

ly

repo

rtsC

onsu

ltatio

nP

roac

tive:

wee

kly

revi

ew a

nd

feed

back

ses

sion

s, ro

adsh

ow

and

wor

ksho

ps

Boo

k ou

t reg

iste

rs w

ere

upda

ted

on

daily

bas

is a

nd re

view

ed o

n a

wee

kly

basi

s, S

AR

S w

orks

hop

cond

ucte

d du

ring

the

year

. R

oads

how

was

not

co

nduc

ted

due

to d

elay

s on

app

rova

l of

the

revi

ewed

pol

icie

s.

Acc

ess

SM

S, e

-mai

ls, s

tand

ard

lette

rs a

nd te

leph

one

Acc

ess

SM

S, e

-mai

l, st

anda

rd le

tters

an

d te

leph

one

SM

S, e

-mai

l, st

anda

rd le

tters

and

te

leph

one

Cou

rtesy

Rea

sons

for d

elay

ed

resp

onse

s ar

e pr

ovid

ed

inco

nsis

tent

lyC

ourte

syR

easo

ns fo

r del

ayed

re

spon

ses

are

prov

ided

co

nsis

tent

ly

Rea

sons

for d

elay

s ar

e se

nt to

clie

nts

cons

iste

ntly

and

the

inco

rrec

t bat

ches

ar

e se

nt b

ack

imm

edia

tely.

Ope

nnes

s an

d tra

nspa

renc

yP

aym

ent s

tubs

, rep

orts

, st

atis

tics

and

SM

SO

penn

ess

and

trans

pare

ncy

Pay

men

t stu

bs, r

epor

ts,

stat

istic

s an

d S

MS

Pay

men

t stu

bs a

nd re

port

on s

tatis

tics

wer

e se

nt o

n m

onth

ly b

asis

and

SM

S’s

w

ere

sent

on

wee

kly

basi

s.

Info

rmat

ion

Mon

thly

repo

rts, s

tatis

tics

Info

rmat

ion

Boo

k ou

t reg

iste

r on

S.D

rive,

m

onth

ly re

ports

, sta

tistic

s,

inte

grat

ed re

ports

Boo

k ou

t reg

iste

rs, m

onth

ly re

ports

, st

atis

tics

and

inte

grat

ed re

ports

sav

ed

on S

.Driv

e.

Red

ress

Poo

r res

pons

e tim

e to

cl

ient

s qu

erie

sR

edre

ssP

rom

pt fe

edba

ck to

clie

nts

is

prov

ided

Feed

back

was

pro

vide

d to

our

clie

nts

timor

ousl

y as

per

our

enq

uiry

repo

rts

Valu

e fo

r mon

eyM

ore

time

spen

t on

resp

ondi

ng to

que

ries

Valu

e fo

r mon

eyC

ompl

ianc

e, in

crea

se

prod

uctio

n an

d le

ss q

uerie

s

No

form

al c

ompl

aint

s w

ere

lodg

ed d

ue

to n

on a

chie

vem

ent o

n tu

rnar

ound

tim

e.

Tim

eB

y 31

Mar

ch 2

011

Tim

eB

y 31

Mar

ch 2

012

On

track

Cos

tB

udge

tC

ost

Rem

uner

atio

n fo

r add

ition

al

staf

fA

ll fu

nded

pos

ts w

ere

lled

49


SUPP

LY C

HA

IN M

AN

AG

EMEN

T

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

(201

0/11

)D

ESIR

ED S

TAN

DA

RD

(201

1/12

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

011

Sup

plie

r M

anag

emen

t

Ser

vice

P

rovi

ders

DM

E U

sers

Qua

ntity

Qua

ntity

Qua

lity

Un-

preq

uali

ed

serv

ice

prov

ider

s re

gist

ered

Qua

lity

Cre

dibl

e/pr

equa

li e

d se

rvic

e pr

ovid

ers

read

ily a

vaila

ble

per

stra

tegi

c co

mm

odity

Invi

tatio

n of

sup

plie

rs to

regi

ster

in o

ur

data

base

was

don

e in

Nov

embe

r 201

0 an

d re

gist

ratio

n pr

oces

s co

mpl

eted

in

Mar

ch 2

011.

Con

sulta

tion

Inpu

ts re

ques

t was

ad

hoc

Con

sulta

tion

Com

mod

ities

iden

ti e

d fro

m

Pro

cure

men

t pla

nsC

omm

oditi

es re

ques

ted

wer

e id

enti

ed

from

the

Pro

cure

men

t pla

ns.

Acc

ess

Form

s on

inte

rnet

, in

trane

t and

rece

ptio

nA

cces

sFo

rms

on in

tern

et, i

ntra

net a

nd

rece

ptio

n

Reg

istra

tion

form

s w

ere

avai

labl

e on

the

inte

rnet

, int

rane

t and

at t

he

rece

ptio

n.

Cou

rtesy

Use

rs a

nd s

ervi

ce

prov

ider

s tre

ated

with

re

spec

tC

ourte

syU

sers

and

ser

vice

pro

vide

rs

treat

ed w

ith re

spec

tU

sers

and

Ser

vice

pro

vide

rs

wer

e tre

ated

with

resp

ect.

Ope

nnes

s an

d tra

nspa

renc

y

Adv

ert p

lace

d on

ne

wsp

aper

s, te

nder

bu

lletin

and

inte

rnet

Ope

nnes

s an

d tra

nspa

renc

yA

dver

t pla

ced

on n

ewsp

aper

s,

tend

er b

ulle

tin a

nd in

tern

etA

dver

t was

pla

ced

on n

ewsp

aper

s,

tend

er b

ulle

tin a

nd in

tern

et.

Info

rmat

ion

Inco

nsis

tent

feed

back

gi

ven

Info

rmat

ion

Stru

ctur

ed te

mpl

ate

for

feed

back

to u

sers

and

ser

vice

pr

ovid

ers

Tem

plat

e w

as s

truct

ured

for t

he u

sers

.

Red

ress

Una

vaila

bilit

y of

ser

vice

pr

ovid

ers/

Del

ayed

pa

ymen

ts d

ue to

ve

ri c

atio

n pr

oces

s

Red

ress

Vette

d su

pplie

r ava

ilabl

eS

RM

cou

ld n

ot v

et s

uppl

iers

due

to

capa

city

con

stra

ints

.

Valu

e fo

r mon

eyLi

mite

d su

pplie

rs to

qu

ote

Valu

e fo

r m

oney

Eno

ugh

supp

liers

to p

rom

ote

cost

effe

ctiv

enes

s th

roug

h qu

ote

com

paris

on

Exe

rcis

e to

upd

ate

supp

liers

’ ban

k de

tails

for v

eri

catio

n at

NT

star

ted

in F

ebru

ary

2011

. Thi

s w

ill e

nabl

e so

urci

ng fr

om a

wid

e ra

nge

of

supp

liers

.

Tim

eN

o cl

ear t

imef

ram

es s

etTi

me

End

of J

une

2010

Del

ayed

due

to e

xten

ded

audi

t sco

pe

that

ran

up to

Sep

tem

ber 2

010.

Cos

tA

lloca

ted

budg

etC

ost

With

in a

lloca

ted

budg

etB

udge

t util

ised

as

allo

cate

d.


50



SUPP

LY C

HA

IN M

AN

AG

EMEN

T

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

(201

0/11

)D

ESIR

ED S

TAN

DA

RD

(201

1/12

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

011

Bid

and

Con

tract

A

dmin

istra

tion

Ser

vice

P

rovi

ders

DM

E U

sers

DM

E

Man

agem

ent

Nat

iona

l T r

easu

ry

Qua

ntity

Qua

ntity

Qua

lity

Am

bigu

ous

TOR

/sp

ecs

are

som

etim

es

adve

rtise

dQ

ualit

yC

orre

ct b

id in

form

atio

n ad

verti

sed

ToR

’s w

ere

scru

tinis

ed b

efor

e pl

acin

g th

e ad

verts

.

Con

sulta

tion

Rea

ctiv

e w

ith b

id a

dver

tsC

onsu

ltatio

nB

ette

r con

sulta

tion

thro

ugh

BS

C

App

oint

men

t of B

SC

was

del

ayed

due

to

cap

acity

con

stra

ints

as

effo

rts w

ere

dire

cted

at t

he e

xten

ded

audi

t.

Acc

ess

Bid

adv

erts

and

do

cum

ents

ava

ilabl

e on

th

e in

tern

et a

nd T

ende

r B

ulle

tin

Acc

ess

Bid

adv

erts

and

doc

umen

ts

avai

labl

e on

the

inte

rnet

and

Te

nder

Bul

letin

. N

ewsp

aper

ad

vert

to b

e en

cour

aged

on

mor

e te

chni

cal b

ids

Bid

s do

cum

ents

wer

e av

aila

ble

on

vario

us m

odes

of m

edia

.

Cou

rtesy

Use

rs a

nd s

ervi

ce

prov

ider

s tre

ated

with

re

spec

tC

ourte

syU

sers

and

ser

vice

pro

vide

rs

treat

ed w

ith re

spec

tU

sers

and

Ser

vice

pro

vide

rs

wer

e tre

ated

with

resp

ect.

Ope

nnes

s an

d tra

nspa

renc

y

Bid

aw

ard

adve

rtise

d on

th

e sa

me

adve

rt m

ode.

P

ublic

ope

ning

of b

ids

upon

requ

est

Ope

nnes

s an

d tra

nspa

renc

y

Bid

aw

ard

adve

rtise

d on

the

sam

e ad

vert

mod

e. P

ublic

op

enin

g of

bid

s up

on re

ques

t.

BE

C/B

AC

Cha

rter m

ade

avai

labl

e to

all

Com

mitt

ee

mem

bers

Bid

s w

ere

adve

rtise

d on

the

sam

e m

ode.

Bid

s w

ere

open

ed in

pub

lic

on re

ques

t. B

AC

cha

rter w

as m

ade

avai

labl

e.

Info

rmat

ion

Rep

ortin

g as

and

whe

n re

quire

d. B

AC

mem

bers

tra

ined

on

appo

intm

ent

Info

rmat

ion

Stru

ctur

ed re

porti

ng in

terv

als.

A

nnua

l tra

inin

g of

BA

C

mem

bers

con

duct

edB

AC

mem

bers

wer

e tra

ined

in 2

010.

Red

ress

Lim

ited

serv

ice

prov

ider

s bi

ddin

g fo

r tec

hnic

al b

ids.

45%

of b

ids

awar

ded

to

SM

ME

s

Poo

r pro

ject

m

anag

emen

t on

cont

ract

s

Red

ress

Incr

ease

d pa

rtici

patio

n on

te

chni

cal b

ids.

Incr

ease

d S

MM

E s

pent

to 6

0%

Impl

emen

tatio

n of

Con

tract

M

anag

emen

t stra

tegy

BE

E s

pend

was

37.

9% d

ue to

larg

e am

ount

spe

nt o

n IT

C c

onsu

lting

se

rvic

es w

here

com

pani

es h

ave

no o

r lim

ited

BE

E c

ompo

nent

s.

Valu

e fo

r mon

eyLi

mite

d su

pplie

r to

bid

Valu

e fo

r m

oney

Eno

ugh

supp

liers

to p

rom

ote

cost

effe

ctiv

enes

s th

roug

h bi

d co

mpa

rison

Reg

istra

tion

on o

ur d

atab

ase

incr

ease

d by

14%

in 2

010.

Tim

e2

mon

ths

from

bid

cl

osur

eTi

me

6 w

eeks

from

bid

clo

sure

Rem

ains

at 8

wee

ks o

f bid

ding

cl

osur

e.

Cos

tA

lloca

ted

budg

etC

ost

With

in a

lloca

ted

budg

et.

Bud

get u

tilis

ed a

s al

loca

ted

51


SUPP

LY C

HA

IN M

AN

AG

EMEN

T

KEY

SE

RVI

CE

SER

VIC

E B

ENEF

ICIA

RYC

UR

REN

T ST

AN

DA

RD

(201

0/11

)D

ESIR

ED S

TAN

DA

RD

(201

1/12

)PR

OG

RES

S A

S AT

31

MA

RC

H 2

011

Logi

stic

s M

anag

emen

t:

Pro

mpt

s de

liver

y of

go

ods

and

serv

ice

Ser

vice

P

rovi

ders

DM

E U

sers

Qua

ntity

Qua

ntity

Qua

lity

Re-

activ

e pr

oces

s in

or

der m

anag

emen

t an

d no

n ad

here

nce

to

timel

ines

for d

eliv

ery

of

inve

ntor

y ite

ms

Qua

lity

Ord

ers

expe

dite

d up

on p

laci

ng

to e

nsur

e pr

ompt

del

iver

y.

Stri

ct a

dher

ence

to th

e tu

rnar

ound

tim

es fo

r del

iver

y of

in

vent

ory

item

s

Turn

arou

nd ti

mes

for d

eliv

ery

of

inve

ntor

y ite

ms

wer

e ad

here

d to

. E

xped

iting

of o

rder

s pi

cked

up

late

in

the

year

due

to c

apac

ity c

onst

rain

ts.

Con

sulta

tion

Min

imal

con

sulta

tion

with

Ser

vice

Pro

vide

r for

de

liver

y

Con

sulta

tion

Con

stan

t fol

low

up

on

outs

tand

ing

orde

rsC

onst

ant f

ollo

w u

p on

out

stan

ding

or

ders

pic

ked

up in

the

last

qua

rter.

Acc

ess

No

clea

r de

ned

con

tact

ce

ntre

s

Acc

ess

Cle

arly

de

ned

con

tact

cen

tres

for u

sers

and

ser

vice

pro

vide

sC

onta

ct d

etai

ls d

e n

ed a

nd p

ublis

hed

on th

e S

ervi

ce C

atal

ogue

.

Cou

rtesy

Atte

nd to

que

ries

upon

re

ques

tC

ourte

syAv

oid

quer

ies

Reg

iona

l of

ce re

port

to e

nabl

e re

gion

al o

f ce

s to

rais

e th

eir q

uerie

s w

as d

evel

oped

, que

ries

addr

esse

d an

d re

port

upda

ted

mon

thly

from

mid

-ye

ar.

H/O

que

ries

wer

e at

tend

ed to

as

wel

l.

Ope

nnes

s an

d tra

nspa

renc

yU

sers

una

war

e of

the

turn

arou

nd ti

mes

Ope

nnes

s an

d tra

nspa

renc

y

Turn

arou

nd ti

mes

pub

lishe

d

Inve

ntor

y ite

ms

publ

ishe

d

Turn

arou

nd ti

mes

pub

lishe

d in

the

Ser

vice

Cat

alog

ue.

Inve

ntor

y ite

ms

wer

e re

view

ed a

dded

and

sto

ck le

vel

revi

ewed

/set

.

Info

rmat

ion

Insu

f ci

ent d

escr

iptio

n on

or

ders

Info

rmat

ion

Des

crip

tion

on o

rder

s lin

ked

to

quot

atio

n

Alig

nmen

t of i

tem

des

crip

tions

to th

e S

tand

ard

Cha

rt of

Acc

ount

s (S

CO

A)

was

enf

orce

d in

full

in th

e la

st q

uarte

r.

Red

ress

Late

del

iver

yR

edre

ssD

eliv

ery

acco

rdin

g to

agr

eed

lead

tim

eD

eliv

ery

lead

tim

e w

as a

dher

ed to

.

Valu

e fo

r mon

eyU

nava

ilabi

lity

of g

oods

an

d se

rvic

es d

ecre

asin

g pr

oduc

tivity

Valu

e fo

r m

oney

Incr

ease

d pr

oduc

tivity

Goo

ds a

nd s

ervi

ces

wer

e av

aile

d on

tim

e th

ereb

y in

crea

sing

pro

duct

ivity

.

Tim

eTh

roug

hout

200

9/10

n

anci

al y

ear

Tim

eTh

roug

hout

201

0/11

na

ncia

l ye

ar

Cos

tB

udge

tC

ost

With

in a

lloca

ted

budg

etB

udge

t util

ised

as

allo

cate

d


52



TRA

NSP

OR

T, F

AC

ILIT

IES

AN

D R

ECO

RD

S M

AN

AG

EMEN

T

KEY

SER

VIC

ESE

RVI

CE

BEN

EFIC

IARY

CU

RR

ENT

STA

ND

AR

D (2

010/

11)

DES

IRED

STA

ND

AR

D (2

011/

12)

PRO

GR

ESS

AS

AT 3

1 M

AR

CH

201

1

App

licat

ions

fo

r acc

ess

to

info

rmat

ion

Ext

erna

l an

d in

tern

al

stak

ehol

ders

Qua

ntity

387

Qua

ntity

450

Don

e

Qua

lity

File

s op

ened

and

del

iver

ed to

D

eput

y In

form

atio

n O

f ce

rs

(DIO

s)Q

ualit

yFi

les

open

ed a

nd d

eliv

ered

to

Dep

uty

Info

rmat

ion

Of

cers

(DIO

s)

Ong

oing

- 38

7 le

s op

ened

and

forw

arde

d to

DIO

’s

45

les

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54



FIN

AN

CIA

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55


FIN

AN

CIA

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AN

NIN

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MA

NA

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ENT

AC

CO

UN

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KEY

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56



INFO

RM

ATIO

N T

ECH

NO

LOG

Y

KEY

SE

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SER

VIC

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57


SYST

EMS

DEV

ELO

PMEN

T A

ND

MA

INTE

NA

NC

E

KEY

SE

RVI

CE

SER

VIC

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ENEF

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get u

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ed a

s al

loca

ted


58



SYST

EMS

DEV

ELO

PMEN

T A

ND

MA

INTE

NA

NC

E

KEY

SE

RVI

CE

SER

VIC

E B

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011

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stic

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t:

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mpt

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liver

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goo

ds a

nd

serv

ice

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rovi

ders

DM

R U

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n re

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ted

59


Purpose: To execute the Department’s statutory mandate to safeguard the health and safety of the mine employees and people

affected by mining activities.

Measurable Objective: Reduce mining-related deaths, injuries and ill-health through the formulation of national policy and legislation,

the provision of advice and application of systems that monitor, audit and enforce compliance in the mining sector.

Service Delivery

Staf ngThe establishment of the Inspectorate provides for 297 posts of which 233 are currently lled and 64 posts are vacant. The

demographics of the Inspectorate as on 31 March 2011 was as follows:

Gender African White Asian Coloured Total

Male 98 49 0 1 148

Female 64 18 0 3 85

Human Resource Development

During the reporting period, the Inspectorate continued to develop the skills and knowledge base of its staff as follows:

Eighty-three of cials attended WITS training on the following modules:•

Inspection, audits and investigation methods

Mine Health and Safety Act Legal Enforcement Part I

Mine Health and Safety Act Legal Enforcement Part II

Principles of Occupational Health and Hygiene Part I

This training will continue during the next nancial year, with the training schedule as set-out for the rest of the year.

Thirty four staff members attended other administrative and technical courses.•

A total number of 19 Learner Inspectors are currently undergoing practical training at various regional of ces of the Department.

Objective of the Training programme was for the Learner Inspectors to obtain their Government Certi cate of Competency.

PROGRAMME 2: PROMOTION OF MINE HEALTH AND SAFETY


60


TABLE 1: Actual Fatalities and Rates (per million hours worked) per Region

2009 2010* Rates

Fatalities Fatality rates Fatalities Fatality rates % change

All mines 168 0.16 127 0.12 -25.00

Western Cape 3 0.19 0 0 -100.00

Northern Cape 4 0.07 4 0.06 -14.29

Free State 22 0.23 22 0.27 17.39

Eastern Cape 0 0 0 0 0.00

KwaZulu-Natal 9 0.36 3 0.12 -66.67

Mpumalanga 25 0.16 13 0.08 -50.00

Limpopo 5 0.05 11 0.11 120.00

Gauteng 44 0.20 29 0.14 -30.00

North West 56 0.14 45 0.12 -14.29

Provisional gures (*) because statistics may change due to late reporting of accidents and subsequent deaths

A negative (-) gure denotes a decrease in frequency rate

Table 1 indicates that there has been a 25% reduction of the fatality rates at all mines for the period under review. There were two

regions that succeeded to have a fatal free year, namely Western Cape and Eastern Cape. Two other regions managed to maintain

the same number of fatalities Northern Cape and Free State. The Free State had an increase in fatality rates (17.39%) while Northern

Cape had a reduction in the fatality rates (1.29%) and this is related to the decrease in the labour at work in the Free State region

while the Northern Cape has had an increase in the labour at work.

TABLE 2: Actual Reportable Injuries and Rates (per million hours worked) per Region

2009 2010* Rates

Injuries Injury rates Injuries injury rates % change

All mines 3650 3.43 3419 3.22 -6.76

Western Cape 15 0.93 13 0.96 3.23

Northern Cape 56 0.94 63 0.92 -2.13

Free State 399 4.43 385 4.69 5.86

Eastern Cape 8 2.01 2 0.52 -74.13

KwaZulu-Natal 54 2.18 28 1.1 -49.54

Mpumalanga 419 2.66 304 1.85 -30.45

Limpopo 202 1.98 254 2.43 22.73

Gauteng 760 3.52 614 2.87 -18.47

North West 1737 4.42 1756 4.59 3.85



Table 2 shows that there has been an improvement of about 8% on injury rates show that there has been an increase in injuries in

the Limpopo Region while all the other regions show a decrease.


61


2009 2010* Rates

Fatalities Fatality rate Fatalities Fatality rate % change

All mines 168 0.16 127 0.12 -25.00

Gold 81 0.25 62 0.20 -20.00

Platinum 41 0.11 34 0.09 -18.18

Coal 18 0.12 12 0.08 -33.33

Diamonds 3 0.11 4 0.16 45.45

Copper 1 0.14 1 0.14 0.00

Chrome 3 0.13 3 0.10 -23.08

Iron ore 3 0.10 3 0.07 -30.00

Manganese 1 0.09 1 0.08 -11.11

Other 17 0.15 7 0.07 -53.33

TABLE 3: Actual Fatalities and Rates (per million hours worked) per Commodity



In terms of the major commodities the gold, platinum and coal sectors have registering a reduction in fatally rates of 20%, 18%

and 33% respectively during the period under review. However, it is of concern that the diamond sector had an increase in fatality

rates of about 45%.

2009 2010* Rates

Injuries Injury rates Injuries Injury rates % change

All mines 3650 3.43 3419 3.22 -6.76

Gold 1756 5.36 1375 4.35 -18.84

Platinum 1299 3.50 1505 4.06 16.00

Coal 295 1.97 272 1.71 -13.20

Diamonds 46 1.66 50 2.04 22.89

Copper 19 2.59 19 2.61 0.77

Chrome 60 2.00 81 2.68 34.00

Iron ore 15 0.49 18 0.44 -10.20

Manganese 11 1.03 17 1.36 32.03

Other 149 1.30 82 0.83 -36.15

TABLE 4: Actual Reportable Injuries and Rates (per million hours worked) per Commodity



Whilst reportable injury rates in gold (18%), coal (13%), iron (10%) and other mines (36%), rates dropped substantially, it is of con-

cern that other commodities registered increases.


62


TABLE 5: Number of Fatalities for all mines per casualty classi cation: 2009 to 2010

Number of separate accidents, number of deaths and number of persons incapacitated in terms of Regulation 25.1.1 (c), (d) and (f)

CLASSIFICATION

2009

Fatalities

2010*

Fatalities% change

FALL OF GROUND 65 48 -26.15

MACHINERY 8 3 -62.50

TRANSPORTATION/MINING 47 37 -21.28

GENERAL 32 20 -37.50

CONVEYANCE ACCIDENTS 2 1 -50.00

ELECTRICITY 5 3 -40.00

FIRES 5 100.00

EXPLOSIVES 4 5 25.00

HEAT SICKNESS 4 2 -50.00

MISCELLANEOUS 1 3 200.00

TOTAL 168 127 -24.40



There has been a 26% improvement regarding fall of ground fatalities, from 65 in 2009 to 48 during 2010. Also, there has been a

reduction with the machinery, general transportation and mining fatalities of about 63%, 38% and 21% recorded during the period

under review. Although the abovementioned improvements have been achieved, the fall of ground, general, transportation and mining

still remain the major contributors to fatalities within the mining sector. This is an indication that there has to be more attention given

to the areas which lead to the potential of these accidents to occur in the mining industry.


63


PRO

GR

AM

ME

2 M

INE

HEA

LTH

AN

D S

AFE

TY IN

SPEC

TOR

ATE

OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Con

tribu

te to

Ski

lls

Dev

elop

men

t

Par

ticip

atio

n in

MQ

A S

truct

ures

100

100

0G

Veri

cat

ion

sour

ce: M

inut

es a

nd

atte

ndan

ce re

gist

ers

of B

oard

M

eetin

gs.

Per

cent

age

of

App

licat

ions

for

Cer

ti c

ates

of

Com

pete

ncie

s P

roce

ssed

100

100

0G

Veri

cat

ion

sour

ce: E

xam

inat

ion

reco

rds.

A to

tal o

f 317

3 ap

plic

atio

ns w

ere

rece

ived

and

all

of th

em w

ere

proc

esse

d.

Per

cent

age

of

certi

cat

es o

f C

ompe

tenc

y is

sued

1720

-3Y

Not

ach

ieve

d: P

oor p

repa

ratio

n by

ca

ndid

ates

for t

he e

xam

inat

ions

.

Eng

age

with

MQ

A an

d ot

her

stak

ehol

der t

o en

sure

pro

per

accr

edita

tion

of s

ervi

ce

prov

ider

s. A

lso

will

dra

fted

and

impl

emen

ting

Act

ion

Pla

n to

im

prov

e pa

ss ra

te d

urin

g th

e 20

11/1

2 n

anci

al y

ear.


64


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Ens

ure

Com

plia

nce

and

Mon

itorin

g

Aud

it an

d In

spec

tion

mon

itorin

g To

ols

deve

lope

d10

010

00

G

Veri

cat

ion

Sou

rce:

The

follo

win

g A

udit

and

Insp

ectio

n to

ols

wer

e de

velo

ped:

Bla

ir W

inde

r, C

onve

yor,

Con

veyo

r Man

Rid

ing,

C

oubl

e D

rum

Win

der,

Hyd

raul

ic

Lift,

Incl

ine

Sha

ft, K

oepe

Win

der,

Pre

-sin

k us

ing

a cr

ane,

Rac

klift

, R

ope

lift,

Sin

gle

Dru

m W

inde

r, Ve

rtica

l Sha

ft, B

oard

and

Pill

ar.

Enf

orce

men

t Gui

delin

e de

velo

ped

100

100

0G

The

Min

e H

ealth

and

Saf

ety

Insp

ecto

rate

Enf

orce

men

t G

uide

line

was

dra

fted

and

train

ing

was

com

plet

ed.

Red

uctio

n in

com

plai

nts

Rel

atin

g to

Pro

cedu

ral

Inco

nsis

tenc

ies

1010

0G

Veri

cat

ion

Sou

rce:

Com

plai

nts

Reg

iste

rs. T

here

wer

e no

co

mpl

aint

s re

ceiv

ed re

latin

g to

P

roce

dura

l Inc

onsi

sten

cies

.


65


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Man

age

Hea

lth a

nd

Saf

ety

Ris

ks

Per

cent

age

Red

uctio

n in

O

ccup

atio

nal I

ll H

ealth

010

-10

RIll

Hea

lth c

ases

bei

ng re

porte

d 20

09=8

134,

201

0=81

70 (8

170-

8134

)/813

4*10

0 =

0%

Insp

ecto

rate

will

impl

emen

t Stra

t P

lan

and

Hea

lth a

nd S

afet

y S

trate

gy to

ens

ure

that

ther

e is

a re

duct

ion

in n

umbe

r of i

ll H

ealth

cas

es.

Per

cent

age

Red

uctio

n in

Occ

upat

iona

l inj

urie

s an

d fa

talit

ies

1610

6G

Veri

cat

ion

sour

ce: S

AM

RA

SS

. O

ccup

atio

nal I

njur

ies

and

Fata

litie

s re

porte

d on

cal

enda

r ye

ar.

Fata

litie

s 24

% re

duct

ion

and

inju

ries

7% re

duct

ion.

(24%

+7%

)/2

= 16

% *

Pro

visi

onal

Fig

ures

Per

cent

age

Red

uctio

n in

Occ

upat

iona

l Non

C

asua

lties

110

-9R

Not

ach

ieve

d:

Non

Cas

ualti

es

bein

g re

porte

d 20

09 =

392

and

20

10 =

389

(389

-392

)/392

*100

=

1%

Insp

ecto

rate

will

impl

emen

t Stra

t P

lan

and

Hea

lth a

nd S

afet

y S

trate

gy to

ens

ure

that

ther

e is

a

redu

ctio

n in

the

num

ber o

f Non

C

asua

lties

.

Pro

mot

e B

est p

ract

ice

% o

f Exp

o's

and

Sem

inar

s or

gani

sed

and

atte

nded

8210

0-1

8Y

Veri

cat

ion

sour

ce:

Exp

o C

alen

dar

and

DM

R e

xhib

ition

s. P

lann

ed fo

r pe

riod

unde

r rev

iew

= 1

7. A

ctua

l fo

r per

iod

unde

r rev

eiw

= 1

4 (1

4/17

)*10

0 =

82%


66


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Pro

mot

e H

ealth

and

S

afet

y

% Im

prov

emen

t in

Com

plia

nce

to H

&S

R

egul

atio

ns0

10-1

0R

Insp

ectio

ns a

nd a

udits

wer

e do

ne

but d

ue to

a la

ck o

f a s

yste

m th

e im

prov

emen

t in

com

plia

nce

coul

d no

t be

mea

sure

d.

SA

MS

HA

syst

em w

as

nalis

ed

and

will

be

utili

sed

in th

e 20

11/2

012

nan

cial

yea

r.

Gui

delin

e D

evel

oped

for

Sm

all S

cale

Min

ing

11

0G

Veri

cat

ion

Sou

rce:

Dra

ft G

uide

line

has

been

com

plet

ed.

Hea

lth a

nd S

afet

y In

form

atio

n D

isse

min

ated

100

100

0G

Veri

cat

ion

sour

ce: M

onth

ly fa

talit

y re

port

and

Reg

iona

l New

slet

ters

.

Occ

upat

iona

l Hea

lth

Stra

tegy

Dev

elop

ed1

10

GVe

ri c

atio

n S

ourc

e: M

ine

Hea

lth

Saf

ety

Stra

tegy

dev

elop

ed.

Pro

vide

Cle

ar P

olic

ies

and

Reg

ulat

ory

Fram

ewor

k

% o

f Pol

icie

s st

udie

s n

alis

ed71

100

-29

Y

2 P

olic

y st

udie

s w

ere

not

com

plet

ed d

ue to

cap

acity

co

nstra

ints

. %

Pol

icy

stud

ies

nal

ised

= P

olic

y st

udie

s co

mpl

eted

/Pol

icy

stud

ies

plan

ned.

(5

/7)*

100

= 71

%

The

revi

ew a

nd im

plem

enta

tion

of s

tand

ardi

sed

polic

ies

and

proc

edur

es w

ill e

nhan

ce th

e ex

ecut

ion

of ta

sks

timeo

usly

and

th

e ll

ing

of v

acan

t pos

ts.


67


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

% R

educ

tion

in Id

enti

ed

Pol

icy

and

Reg

ulat

ory

Gap

s(IL

O 1

76)

060

-60

R

Not

ach

ieve

d. 6

Pol

icy

gaps

wer

e id

enti

ed

and

curr

ently

bei

ng

addr

esse

d th

roug

h th

e re

view

and

am

endm

ent o

f the

Min

e H

ealth

an

d S

afet

y A

ct (M

HS

A) w

hich

co

mm

ence

d in

Sep

tem

ber 2

010.

Th

e P

olic

y ga

ps w

ill b

e re

duce

d w

hen

the

Act

is a

ppro

ved

by

Cab

inet

.

6 P

olic

y ga

ps w

ere

iden

ti e

d an

d ar

e cu

rren

tly b

eing

add

ress

ed

thro

ugh

the

revi

ew a

nd

amen

dmen

t of t

he M

ine

Hea

lth

and

Saf

ety

Act

(MH

SA

) whi

ch

com

men

ced

in S

epte

mbe

r 201

0.

Pro

vide

Pol

icie

s an

d G

uide

lines

Num

ber o

f Gui

delin

es

Dev

elop

ed0

100

-100

RN

o ne

w G

uide

lines

wer

e de

velo

ped

durin

g th

e pe

riod

unde

r rev

iew

.

Num

ber o

f Gui

delin

es

Rev

iew

ed10

010

00

GVe

ri c

atio

n S

ourc

e: A

dmin

Fin

e an

d E

nfor

cem

ent G

uide

line

Rev

iew

ed

Num

ber o

f Pol

icie

s D

evel

oped

010

0-1

00R

Not

ach

ieve

d.

No

new

Pol

icie

s w

ere

dev

elop

ed d

urin

g th

e pe

riod

unde

r rev

iew

.


68


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Num

ber o

f Pol

icie

s R

evie

wed

100

100

0G

Veri

cat

ion

Sou

rce:

The

A

men

dmen

t of t

he M

ine

Hea

lth a

nd

Saf

ety

Act

(Act

29

of 1

996)

(MH

SA

) is

und

erw

ay. C

onsu

ltatio

ns w

ith

affe

cted

par

ties

wer

e do

ne d

urin

g th

e 20

10/2

011

nan

cial

yea

r and

fu

rther

con

sulta

tions

will

con

tinue

un

til 2

012.

It is

env

isag

ed th

at th

e am

endm

ents

will

be

adop

ted

and

appr

oved

dur

ing

the

2011

/201

2 n

anci

al y

ear.

Dev

elop

and

Rev

iew

in

tern

al p

roce

sses

Num

ber o

f Int

erna

l P

roce

sses

Dev

elop

ed10

010

00

G

Veri

cat

ion

sour

ce: A

dmin

istra

tive

Fine

and

Enf

orce

men

t pol

icy

and

proc

edur

es d

evel

oped

. A

lso,

the

prev

entio

n of

Roc

kfal

l ac

cide

nts

in th

e pl

atin

um M

ine

form

de

velo

ped.

Num

ber o

f Int

erna

l P

roce

sses

Iden

ti e

d10

010

00

G

Veri

cat

ion

Sou

rce:

Adm

inis

trativ

e Fi

ne a

nd E

nfor

cem

ent p

olic

y an

d pr

oced

ures

. A

lso,

pre

vent

ion

of

Roc

k Fa

ll ac

cide

nts

in th

e P

latin

um

Min

es A

udit

form

iden

ti e

d.

Num

ber o

f Int

erna

l P

roce

sses

Impl

emen

ted

100

100

0G

Veri

cat

ion

Sou

rce:

Adm

inis

trativ

e Fi

ne a

nd E

nfor

cem

ent p

olic

ies

and

proc

edur

es.

Als

o, p

reve

ntio

n of

R

ock

Fall

acci

dent

s in

the

Pla

tinum

M

ines

Aud

it fo

rm im

plem

ente

d.


69


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Impl

emen

t Ser

vice

Le

vel A

gree

men

t%

Adh

eren

ce to

SLA

's10

010

00

G

Veri

cat

ion

Sou

rce:

Atte

ndan

ce

Reg

iste

rs. 1

61 In

spec

tors

atte

nded

W

its T

rain

ing

and

8 B

ursa

ry h

olde

rs

wer

e pl

ace

at G

old

eld

s.

Num

ber o

f SLA

Im

plem

ente

d10

010

00

GVe

ri c

atio

n so

urce

: Gol

d e

lds

and

Wits

SLA

's.

Impr

ove

turn

arou

nd%

Adh

eren

ce to

P

resc

ribed

Tim

e Fr

ames

(S

LA's

)10

010

00

GVe

ri c

atio

n so

urce

: G

old

eld

s an

d W

its p

aym

ents


70


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Attr

act a

nd R

etai

n S

taff

% im

plem

enta

tion

of

HR

D s

trate

gy94

5044

G

Veri

cat

ion

Sou

rce:

HR

D

Impl

emen

tatio

n P

lan.

A

ttend

ance

re

gist

ers

and

Cop

ies

of C

erti

cat

es.

Ther

e ar

e 8

area

s an

d th

e M

HS

I at

tend

ed to

7.5

are

as.

Not

e th

at

burs

arie

s ar

e sp

lit in

to 2

are

as e

.g.

inte

rnal

and

ext

erna

l bur

sarie

s w

here

MH

SI a

ttend

ed o

nly

to o

ne

side

of i

t. (7

.5/8

)*10

0 =

94%

% im

plem

enta

tion

of

Tale

nt M

anag

emen

t S

trate

gy0

20-2

0R

Cou

ld n

ot im

plem

ent t

he D

MR

Ta

lent

Man

agem

ent S

trate

gy a

s it

is s

till i

n a

draf

t for

mat

.

DM

R T

alen

t Man

agem

ent

Stra

tegy

to b

e se

nt fo

r app

rova

l.

% re

duct

ion

in v

acan

cy

rate

01

-1R

Not

ach

ieve

d: T

here

are

mor

e va

canc

ies

beca

use

of fu

ndin

g of

so

me

of v

acan

cies

. 1st

Qua

rter

16%

, 2nd

Qua

rter 1

3%, 3

rd Q

uarte

r 15

% a

nd c

urre

ntly

17%

.

Fast

trac

king

lli

ng o

f pos

ition

s.

% re

duct

ion

Sta

ff Tu

rnov

er ra

te15

.91

14.9

GN

ot a

chie

ved.

Ver

i ca

tion

sour

ce.

Per

sal r

epor

t

No

com

para

tive

gur

es fr

om

2009

/10

beca

use

the

depa

rtmen

t w

as c

ombi

ned

with

Dep

artm

ent

of E

nerg

y. T

he d

epar

tmen

t will

co

ntin

ue to

mon

itor t

he s

taff

turn

over

rate

.

% R

evie

w H

R P

lan

100

100

0G

Ach

ieve

d: V

eri

catio

n so

urce

HR

P

lan

Num

ber o

f car

eer/

deve

lopm

ent i

nitia

tives

(c

aree

r opp

ortu

nitie

s,

skill

s in

itiat

ives

, etc

.) im

plem

ente

d

66

0G

Ach

ieve

d: V

eri

catio

n so

urce

: P

rese

ntat

ions

on

DM

R c

aree

rs,

Atte

ndan

ce re

gist

ers.

Cen

tral

Uni

vers

ity o

f Tec

hnol

ogy,

Nor

th

Wes

t Uni

vers

ity (P

otch

efst

room

C

ampu

s), N

orth

Wes

t Uni

vers

ity

(Mm

abat

ho),

Uni

vers

ity o

f Li

mpo

po, D

urba

n U

nive

rsity

of

Tech

nolo

gy, U

nive

rsity

of K

waZ

ulu

Nat

al (D

urba

n).


71


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Impr

ove

Lead

ersh

ip

and

Man

agem

ent

% M

anag

emen

t C

ompl

eted

the

Lead

ersh

ip/M

anag

emen

t C

ours

es

2.86

70-6

7.14

R

A to

tal o

f 2 M

HS

I of

cial

s at

tend

ed

the

Adv

ance

d M

anag

emen

t D

evel

opm

ent P

rogr

amm

e (A

MD

P)

out o

f 70

of c

ials

in th

e br

anch

. 2/

70*1

00 =

2.8

6%.

The

Exe

cutiv

e D

evel

opm

ent P

rogr

amm

e (E

DP

) co

mm

ence

d la

te in

201

0/11

n

anci

al y

ear.

10

MH

SI m

anag

ers

atte

nded

the

rst s

essi

on.

Exe

cutiv

e D

evel

opm

ent

Pro

gram

me

(ED

P) c

omm

ence

d in

the

last

qua

rter i

f the

201

0/22

n

anci

al y

ear a

nd o

verla

ps in

to

the

2011

/12

nan

cial

yea

r.

% re

turn

on

inve

stm

ent

on tr

aini

ng a

nd

deve

lopm

ent

065

-65

RTo

ol w

as n

ot d

evel

oped

to c

alcu

late

in

vest

men

t on

train

ing

and

deve

lopm

ent

Trai

ning

of M

anag

ers

will

take

pl

ace

in 2

011/

2012

Pro

mot

e C

ore

Valu

es

Num

ber o

f Cor

e Va

lues

W

orks

hops

Con

duct

ed10

55

G

Veri

cat

ion

Sou

rce:

Atte

ndan

ce

Reg

iste

rs. W

orks

hops

w

ere

cond

ucte

d in

Hea

d O

f ce

and

R

egio

ns (G

aute

ng, W

este

rn C

ape,

K

ZN, E

aste

rn C

ape,

Nor

th W

est,

Lim

popo

, Mpu

mal

anga

, Fre

e S

tate

, an

d N

orth

ern

Cap

e).

Num

ber o

f Ser

vice

D

eliv

ery

Impr

ovem

ent

Pla

ns D

evel

oped

11

0G

Veri

cat

ion

Sou

rce:

DM

R S

trate

gic

Pla

n


72


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Alig

n B

udge

t to

Stra

tegy

% B

udge

t Alig

ned

to

Stra

tegy

100

955

GVe

ri c

atio

n S

ourc

e: S

pend

ing

Pla

ns

Man

age

Cos

t E

ffect

ivel

y

% V

aria

nce

on A

lloca

ted

Bud

get f

or g

oods

and

S

ervi

ces

18.9

513

.9G

Veri

cat

ion

Sou

rce:

Ana

lysi

s of

B

udge

t and

Exp

endi

ture

Rep

ort.

18

.9 %

Sav

ing

is d

ue to

vac

anci

es.

Bud

get =

R25

447

000,

Spe

nd

= R

2913

3 00

0, O

vers

pent

=

R36

86 0

00 R

8494

926

for l

ease

pa

ymen

t on

beha

lf of

Pro

gram

me

1 C

alcu

latio

n: R

3686

000

- R

8494

92

6 =

R48

08 9

26 (s

avin

g) (4

808

926/

2544

7 00

0)*1

00 =

18.

9%

Und

ersp

endi

ng a

s a

resu

lt of

re

duce

d S

&T

cost

s as

a re

sult

of

vaca

ncie

s.

The

MH

SI r

ecen

tly h

eld

inte

rvie

ws

and

are

in th

e pr

oces

s of

lli

ng s

ome

of th

e va

cant

po

sts.

15

Pos

ts to

be

lled

. S

&T

cost

will

incr

ease

as

vaca

nt p

osts

ar

e ll

ed.


73


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Pro

mot

e G

ood

Gov

erna

nce

Red

uctio

n in

Was

tefu

l, fru

itles

s an

d irr

egul

ar

Exp

endi

ture

1073

.760

1013

.7R

Veri

cat

ion

Sou

rce:

Fru

itles

s,

was

tefu

l and

irre

gula

r exp

endi

ture

re

gist

ers.

R26

886.

31 (2

010/

11

nan

cial

yea

r)/ R

2504

(200

9/10

n

anci

al y

ear)

*10

0 =

1073

.7%

R

2896

.01

Irreg

ular

exp

endi

ture

w

as d

ue to

add

ition

al a

ttend

ance

of

4 p

erso

ns a

t the

wor

ksho

p he

ld a

t the

Pre

mie

r Hot

el.

R18

090.

30 ir

regu

lar e

xpen

ditu

re

was

due

to lo

nger

than

pl

anne

d tim

e pe

riod

it to

ok to

take

st

atem

ents

for t

he Im

pala

Inqu

iry,

whi

ch w

as b

eyon

d ou

r con

trol.

A w

ritte

n w

arni

ng w

as is

sued

to

the

rele

vant

of

cial

rega

rdin

g th

e rs

t tw

o irr

egul

ar e

xpen

ditu

re

case

s.

% e

xecu

tion

of F

raud

pr

even

tion

and

ER

M

impl

emen

tatio

n pl

ans

100

100

0G

Ris

k as

sess

men

t wer

e pe

rform

ed

and

risk

man

agem

ent c

omm

ittee

m

et d

urin

g th

e ye

ar. R

isk

cham

pion

fo

rum

was

con

stitu

ted

durin

g th

e ye

ar.

Ris

k ch

ampi

ons

will

act

ivel

y ad

dres

s ris

k tre

atm

ent a

ctio

ns

plan

s du

ring

2011

/12

.

Com

ply

with

PFM

A97

.510

0-2

.5Y

Ach

ieve

d: V

eri

catio

n S

ourc

e: C

ompl

ianc

e C

erti

cat

e Fe

brua

ry p

erio

d:

100%

+100

%+1

00%

+90%

/4=9

7.5%

Com

ply

with

PS

A10

010

00

GTh

e de

partm

ent i

s co

mpl

iant

with

th

e re

leva

nt p

olic

ies:

Ver

i ca

tion

sour

ce: H

R P

olic

ies


74


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Num

ber o

f rep

eat

ndi

ngs

on in

tern

al a

udit

follo

w u

p re

port

00

0G

Ach

ieve

d: N

o re

ports

of r

epea

t n

ding

s w

ere

rece

ived

dur

ing

the

perio

d un

der r

evie

w.

Unq

uali

ed

Aud

it R

epor

t0

00

YN

ot a

chie

ved:

Pro

gres

s on

un

qual

i ed

aud

it re

port

is p

endi

ng

AG

repo

rt.

Any

issu

es a

risin

g fro

m th

e A

udit

Rep

ort w

ill b

e ad

dres

sed

in th

e 20

11/1

2 n

anci

al y

ear.


75

Department of Mineral Resources78

Serv

ice

Del

iver

y Im

prov

emen

t Pla

nM

ine

Hea

lth a

nd S

afet

y In

spec

tora

te

KE

Y S

ER

VIC

ES

ER

VIC

E

BE

NE

FIC

IAR

Y

CU

RR

EN

T S

TAN

DA

RD

(200

9/10

)

DE

SIR

ED

S

TAN

DA

RD

(201

0/11

)

Pro

gres

s as

at

31 M

arch

201

1

Add

ress

hea

lth

and

safe

ty ri

sks

in

min

ing

thro

ugh:

Num

ber

• of

Aud

its

cond

ucte

d

Num

ber o

f •

Insp

ectio

ns

cond

ucte

d

Num

ber o

f •

Inve

stig

atio

ns

cond

ucte

d

Num

ber o

f •

Inqu

iries

co

mpl

eted

Min

ing

Ope

ratio

ns

Qua

ntity

100%

of p

lann

ed a

udits

as

per

capa

city

100

% o

f pla

nned

insp

ectio

n as

pe

r cap

acity

80%

of p

lann

ed in

vest

igat

ions

as

per

cap

acity

80 %

of p

lann

ed in

quiri

es a

s pe

r cap

acity

Qua

ntity

100%

of p

lann

ed a

udits

as

per c

apac

ity

100%

of p

lann

ed in

spec

tions

as

per

cap

acity

100%

of p

lann

ed

inve

stig

atio

ns a

s pe

r ca

paci

ty

100%

of p

lann

ed in

quiri

es a

s pe

r cap

acity

Add

ress

hea

lth a

nd s

afet

y ris

ks

in m

inin

g th

roug

h:

Num

ber o

f Aud

its

• co

nduc

ted

Num

ber o

f Ins

pect

ions

•

cond

ucte

d

Num

ber o

f Inv

estig

atio

ns

• co

nduc

ted

Num

ber o

f Inq

uirie

s •

com

plet

ed

Qua

lity

Impl

emen

tatio

n an

d co

mpl

ianc

e to

sta

ndar

dise

d P

olic

ies

and

Pro

cedu

res

Qua

lity

Impl

emen

tatio

n an

d co

mpl

ianc

e to

sta

ndar

dise

d P

olic

ies

and

Pro

cedu

res

Ach

ieve

d

Con

sulta

tion

Qua

rterly

con

sulta

tion

with

m

inin

g op

erat

ions

Con

sulta

tion

Mon

thly

con

sulta

tion

with

m

inin

g op

erat

ions

Ach

ieve

d

Ope

nnes

s an

d tra

nspa

renc

y

Pol

icie

s an

d P

roce

dure

s is

pu

blic

doc

umen

tsO

penn

ess

and

trans

pare

ncy

Pol

icie

s an

d P

roce

dure

s is

pu

blic

doc

umen

tsA

chie

ved

Info

rmat

ion

Info

rmat

ion

is s

hare

d on

a

mon

thly

bas

is w

ith m

ines

Info

rmat

ion

Info

rmat

ion

is s

hare

d on

a m

onth

ly b

asis

with

m

ines

and

an

elec

troni

c m

anag

emen

t sys

tem

wou

ld

impr

ove

the

avai

labi

lity

of

info

rmat

ion

Ach

ieve

d

Valu

e fo

r m

oney

Ens

ure

the

optim

um u

tilis

atio

n of

vot

ed fu

nds

Valu

e fo

r mon

eyE

nsur

e th

e op

timum

ut

ilisa

tion

of v

oted

fund

sA

chie

ved


76


Purpose: Regulate the minerals and mining sector to ensure economic development, employment and ensure transformation and

environmental compliance.

Programme Objective: To transform the minerals and mining sector into one that competitively contributes to the sustainable

development in the country.

The Mineral Regulation Branch has now completed its fth year since inception. The 2010/11 nancial year was marked by signi cant

dynamics that impacted on the mining industry and will be deliberated upon. The primary function of the Branch is processing,

nalisation of applications, monitoring and evaluation of rights under the Mineral and Petroleum Resources Development Act, 2002

(MPRDA).

The Department, through Mineral Regulation Branch, initiated the revision of internal business processes for applications in terms of

the MPRDA to enhance internal processes and improve service delivery.

The Branch commenced a process of addressing cases of double grantings or overlaps. This took the form of high level visits to

the Regional of ces and working through all the cases with the right holders. In addressing these cases, applicants were involved

with a view to demonstrating that there was no malicious intent. The process was conducted in a transparent, accountable manner.

Identi ed cases of double granting that were attended to (including unregistrable rights) were less than 120, out of a total of 26 000

applications that were processed since the implementation of the MPRDA, representing less than 1%.

Some of the errors were occasioned by consultants to applicants who submitted sketch plans with incorrect polygons leading to

overlaps. Regrettably departmental of cials were blamed when these matters were detected or reported. In other instances, changes

in property descriptions, inability of the National Mining Promotion System (NMPS) to effectively detect and manage competing

applications, gaps between appeals process and processing of applications have also contributed to these problems.

The Branch conducted compliance inspections during the moratorium period the results of which indicate the following:

Non compliance on the part of right holders with regard to failure to commence with prospecting activities within 120 days as • stipulated in the contract.

Cases of suspected fronting by some right holders, wherein misleading information was submitted leading to unsustainable • mining transactions.

Overuse of consultants by applicants to a disempowering extent. Some right holders could not be contacted because the entire • data was lost when the consultants’ services were discontinued.

Applicants who have not complied with their prospecting work programmes by engaging in extensive drilling, without amending • their work programmes and nancial provision for rehabilitation thus increasing the state’s exposure to risk.

Illegal drilling in some areas leading to increased hazards to communities, land owners, etc.•

Right-holders whose companies have been de-registered or liquidated and the Department (regulator) was not informed •

Holders of rights who cannot be traced or located.•

Diamond producers not registered with the South African Diamond and Precious Metals Regulator resulting in incompleteness • of information on diamonds mined and sold legally

Disposal of Rights without Ministerial consent in terms of Section 11 of the MPRDA•

PROGRAMME 3: MINERAL REGULATION


77


The BEE partners failing to attend pre-arranged site visits without valid reasons.•

Right holders continuously postponed inspection dates scheduled by Regional Of ces to the extent that of cials started making • inspection notices a directive; which yielded positive results.

Documents such as Environmental Management Programmes, Prospecting Works Programmes, and Annual progress / • performance reports not on site during visits.

Financial provision and performance assessment reports were not submitted annually by some mining companies and right • holders.

In some cases, right holders were operating without approved Environmental Management Plans (EMPs) •

Some right holders failed to apply for closure certi cates•

Challenges with denial of access to right holders by land owners.•

Procedurally, all cases of non compliance were followed by the issuance of Section 93 notices as well as section 47 (notices) which

relate to the procedure to remedy failures or the cancellation of the Right respectively. Due to the Departments zero tolerance attitude

towards non compliance, those who were found to have transgressed were and are being dealt with in the appropriate manner.

The South African Mineral Resources Administration System (SAMRAD)

The process of developing an integrated electronic system commenced during the 2009/10 nancial year. The system allows for a

process of an integrated management of information and improved management of the mining industry. Due to the NMPS system

limitations, a decision was taken to expand the new SAMRAD system within the Department, starting with the Mineral Regulation

branch.

The mandate was for the Mineral Regulation Branch to rstly develop a transparent online application system that makes it possible

for the public to freely view the spatial locality of the applications in terms of the Mineral and Petroleum Resources Development Act

“MPRDA” (Act 28 of 2002), for them to check the status of their own applications. Secondly, to develop a system that eliminates the

risk of spatial error, and thirdly, ensures uniform standards and procedures when processing applications.


78


OB

JEC

TIVE

MEA

SUR

E

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Con

tribu

te to

Ski

lls

Dev

elop

men

t

Num

ber o

f em

ploy

ees

atte

ndin

g an

d co

mpl

ete

AB

ET

with

in th

e m

inin

g se

ctor

175

8050

0012

580

GA

chie

ved:

Ver

i ca

tion

Sou

rces

: Ann

ual R

epor

ts

of m

inin

g co

mpa

nies

or I

nspe

ctio

n R

epor

ts.

The

annu

al ta

rget

has

be

en e

xcee

ded

as m

inin

g co

mpa

nies

iden

ti e

d a

need

to

trai

n m

ore

empl

oyee

s an

d co

mm

unity

mem

bers

, in

ord

er to

add

ress

bot

h th

eir p

rodu

ctio

n ne

eds

and

thei

r cor

pora

te s

ocia

l re

spon

sibi

litie

s.

Num

ber o

f HD

SA

unde

rgoi

ng

man

agem

ent r

elat

ed m

inin

g37

230

072

GA

chie

ved:

Ver

i ca

tion

sour

ces:

Ann

ual

Rep

orts

of m

inin

g co

mpa

nies

or I

nspe

ctio

n R

epor

ts

The

annu

al ta

rget

has

be

en e

xcee

ded

as m

inin

g co

mpa

nies

iden

ti e

d a

need

to

trai

n m

ore

peop

le th

an

plan

ned

in o

rder

to a

ddre

ss

thei

r pro

duct

ion

need

s.

Num

ber o

f HD

SA

unde

rgoi

ng

min

ing

rela

ted

cour

ses

2160

1000

1160

GA

chie

ved:

Ver

i ca

tion

sour

ce: A

nnua

l rep

orts

of

min

ing

com

pani

es o

r Ins

pect

ion

Rep

orts

.

The

annu

al ta

rget

has

be

en e

xeed

ed a

s m

inin

g co

mpa

nies

iden

ti e

s a

need

to

trai

n m

ore

peop

le th

an

plan

ned

in o

rder

to a

ddre

ss

thei

r pro

duct

ion

need

s.

Num

ber o

f int

erns

hips

1100

200

900

GA

chie

ved:

Ver

i ca

tion

sour

ces:

Ann

ual r

epor

ts o

f m

inin

g co

mpa

nies

or I

nspe

ctio

n R

epor

ts

The

annu

al ta

rget

has

be

en e

xeed

ed a

s m

inin

g co

mpa

nies

iden

ti e

s a

need

to tr

ain

mor

e in

tern

s th

an p

lann

ed in

ord

er to

ad

dres

s th

eir p

rodu

ctio

n ne

eds,

and

als

o as

par

t of

thei

r cor

pora

te s

ocia

l re

spon

sibi

litie

s.

Num

ber o

f lea

rner

ship

s gr

ante

d22

3410

0012

34G

Ach

ieve

d: V

eri

catio

n so

urce

: Ann

ual r

epor

ts o

f m

inin

g co

mpa

nies

or I

nspe

ctio

n R

epor

ts

The

annu

al ta

rget

has

be

en e

xcee

ded

as m

inin

g co

mpa

nies

iden

ti e

d a

need

to tr

ain

mor

e pe

ople

th

an p

lann

ed in

ord

er to

ad

dres

s th

eir p

rodu

ctio

n ne

eds

and

also

as

part

of th

eir c

orpo

rate

soc

ial

resp

onsi

bilit

ies.

Num

ber o

f sch

olar

ship

s an

d bu

rsar

ies

gran

ted

by th

e m

inin

g in

dust

ry14

4150

094

1G

Ach

ieve

d: V

eri

catio

n so

urce

: Ann

ual R

epor

ts

of m

inin

g co

mpa

nies

or I

nspe

ctio

n R

epor

ts

The

annu

al ta

rget

has

be

en e

xcee

ded

as m

inin

g co

mpa

nies

iden

ti e

d a

need

to tr

ain

mor

e pe

ople

th

an p

lann

ed in

ord

er to

ad

dres

s th

eir p

rodu

ctio

n ne

eds

and

also

as

part

of th

eir c

orpo

rate

soc

ial

resp

onsi

bilit

ies.

Num

ber o

f wom

en

unde

rgoi

ng m

anag

emen

t re

late

d co

urse

s23

610

013

6G

Ach

ieve

d: V

eri

catio

n so

urce

: Ann

ual r

epor

ts o

f m

inin

g co

mpa

nies

or I

nspe

ctio

n R

epor

ts

The

annu

al ta

rget

has

be

en e

xcee

ded

as m

inin

g co

mpa

nies

iden

ti e

d a

need

to

trai

n m

ore

wom

en th

an

plan

ned.

Num

ber o

f wom

en

unde

rgoi

ng m

inin

g re

late

d co

urse

s37

250

0-1

28Y

Not

Ach

ieve

d: T

his

is d

ue to

the

fact

that

wom

en

empl

oyee

s ar

e fe

w in

the

min

ing

indu

stry

(m

inin

g co

mpa

nies

do

not h

ave

enou

gh w

omen

em

ploy

ees

to u

nder

go m

inin

g re

late

d co

urse

s.)

Veri

cat

ion

sour

ce: A

nnua

l rep

orts

of m

inin

g co

mpa

nies

The

Bra

nch

plan

s to

re

ques

t min

ing

com

pani

es

to d

evel

op a

wom

en

recr

uitm

ent s

trate

gy in

the

2011

/12

nan

cial

yea

r

PRO

GR

AM

3: M

iner

al R

egul

atio

nPROGRAMME 3: MINERAL REGULATION

79


OB

JEC

TIVE

MEA

SUR

E

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Edu

cate

and

C

omm

unic

ate

with

S

take

hold

ers

Num

ber o

f wor

ksho

ps

cond

ucte

d w

ith m

iner

al

and

min

ing

indu

stry

sta

ke-

hold

ers

3210

22G

Ach

ieve

d: V

eri

catio

n so

urce

: Inv

ita-

tions

, atte

ndan

ce re

gist

ers

or a

gend

as.

Circ

umst

ance

s de

man

ded

an in

crea

se in

w

orks

hops

with

sta

keho

lder

s.

Pro

mot

e Jo

b C

reat

ion

Num

ber o

f LE

D p

roje

cts

crea

ted

thro

ugh

SLP

208

100

108

GA

chie

ved:

Ann

ual R

epor

ts o

f min

ing

com

-pa

nies

or I

nspe

ctio

n R

epor

ts.

Pro

mot

e S

usta

in-

able

Res

ourc

e M

anag

emen

t

Num

ber o

f inc

ome

gene

r-at

ing

proj

ects

thro

ugh

SLP

6318

45G

Ach

ieve

d: V

eri

catio

n so

urce

s: A

nnua

l R

epor

ts o

f min

ing

com

pani

es o

r Ins

pec-

tion

Rep

orts

.

The

Bra

nch

plan

ned

a m

inim

um ta

rget

of 1

8.

How

ever

, min

ing

com

pa-

nies

iden

ti e

d a

need

to

impl

emen

t mor

e in

com

e ge

nera

ting

proj

ects

in

com

mun

ities

with

in

whi

ch th

ey o

pera

te a

nd

thes

e pr

ojec

ts in

clud

e la

bour

sen

ding

are

as.

Num

ber o

f SM

ME

Dev

el-

opm

ent P

roje

cts

6127

34

GA

chie

ved:

Ver

i ca

tion

sour

ces:

Ann

ual

Rep

orts

of m

inin

g co

mpa

nies

The

Bra

nch

plan

ned

a m

inim

um ta

rget

of 2

7 (3

pe

r reg

ion)

. How

ever

, so

me

min

ing

com

pa-

nies

impl

emen

ted

mor

e S

MM

E d

evel

opm

ent

proj

ects

as

a re

sult

of

com

mun

ity n

eeds

.

Add

ition

al J

obs

crea

ted

thro

ugh

1 –

3 ab

ove

3527

100

3427

G

Ach

ieve

d: V

eri

catio

n so

urce

s: A

nnua

l R

epor

ts o

f min

ing

com

pani

es

The

num

ber o

f job

s cr

eate

d th

roug

h cr

eate

d LE

D p

roje

cts

exce

eded

th

e an

nual

targ

et o

f 100

as

min

ing

com

pani

es

requ

ired

mor

e w

orke

rs

to im

plem

ent a

dditi

onal

LE

D p

roje

cts.

Num

ber o

f Inf

rast

ruct

ural

D

evel

opm

ent

Pro

ject

s th

roug

h S

ocia

l &

Labo

ur P

lans

(SLP

)95

100

-5Y

Not

Ach

ieve

d: V

eri

catio

n so

urce

s: A

nnua

l R

epor

ts o

f min

ing

com

pani

es

Min

ing

com

pani

es d

id

not d

eliv

er 1

00%

on

set t

arge

t. B

ranc

h to

in

tens

ify in

spec

tions

and

co

mm

unity

eng

agem

ent.


80


OB

JEC

TIVE

MEA

SUR

E

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Reg

ulat

e m

iner

al

and

min

ing

sect

or to

ac

hiev

e tra

nsfo

rma-

tion

Leve

l of c

ompa

ny c

ompl

ianc

e w

ith s

kills

dev

elop

men

t req

uire

-m

ents

100

100

0G

Ach

ieve

d: V

eri

catio

n so

urce

: SLP

and

its

RO

D.

SLP

's a

re n

ot a

ppro

ved

with

out t

he re

quire

-m

ents

bei

ng m

et a

t the

tim

e of

adj

udic

atio

n.

Ext

ent o

f com

pany

com

plia

nce

with

10%

wom

en in

min

ing

100

100

0G

Ach

ieve

d: V

eri

catio

n so

urce

s: A

ppro

ved

SLP

an

d its

RO

D. S

LP's

are

not

app

rove

d w

ithou

t the

re

quire

men

ts b

eing

met

at t

he ti

me

of a

djud

ica-

tion.

Ext

ent o

f com

pany

com

plia

nce

with

40%

HD

SA

in m

anag

emen

t10

010

00

GA

chie

ved:

App

rove

d S

LP a

nd it

s R

OD

. SLP

's

are

not a

ppro

ved

with

out t

he re

quire

men

ts b

eing

m

et a

t the

tim

e of

adj

udic

atio

n.

Num

ber o

f rig

hts

gran

ted

to

HD

SA

's11

727

90G

Ach

ieve

d: V

eri

catio

n so

urce

s: S

hare

hold

ers

agre

emen

ts o

r sha

reho

lder

s ce

rti c

ates

; ID

do

cum

ents

and

Gra

nted

righ

ts. T

houg

h th

e ta

rget

was

27,

the

depa

rtmen

t doe

s no

t hav

e co

ntro

l ove

r the

num

ber o

f app

licat

ions

bei

ng

subm

itted

.

Num

ber o

f wom

en le

d co

mpa

-ni

es li

cens

ed30

1812

GA

chie

ved:

Ver

i ca

ctio

n so

urce

s: S

hare

hold

ers

agre

emen

ts, S

hare

hold

er C

erti

cat

es, I

D d

ocu-

men

ts o

r Gra

nted

righ

ts.

The

Bra

nch

to c

reat

e m

ore

awar

enes

s on

wom

en

parti

cipa

tion

in m

inin

g in

the

next

na

ncia

l yea

r.

Num

ber o

f you

th le

d co

mpa

-ni

es/ e

ntiti

es li

cens

ed8

27-1

9R

Not

ach

ieve

d: T

he b

ranc

h di

d no

t rec

eive

ap-

plic

atio

ns b

y yo

uth

led

com

pani

es a

s ex

pect

ed.

Veri

cat

ion

sour

ce: S

hare

hold

ers

agre

emen

ts

or s

hare

hold

ers

certi

cat

es, I

D d

ocum

ents

and

G

rant

ed ri

ghts

.

The

bran

ch is

pla

nnin

g to

cr

eate

mor

e aw

aren

ess

on

yout

h pa

rtici

patio

n in

min

ing

durin

g 20

11/1

2 n

anci

al

year

.

Dev

elop

and

Rev

iew

In

tern

al P

roce

sses

App

rove

d gu

idel

ine

on c

onsu

l-ta

tion

proc

ess

01

-1R

Not

ach

ieve

d: T

he g

uide

line

is a

t edi

ting

stag

e an

d be

ing

alig

ned

to th

e S

amra

d sy

stem

.

The

guid

elin

e w

ill be

ap-

prov

ed d

urin

g th

e 20

11/1

2 n

anci

al y

ear.

App

rove

d gu

idel

ine

on re

gist

ra-

tion

of ri

ghts

11

0G

Ach

ieve

d: V

eri

catio

n so

urce

: App

rove

d gu

ide-

line

Rev

iew

of i

nter

nal b

usin

ess

proc

ess

10

1G

Ach

ieve

d: V

eri

catio

n so

urce

s: S

amra

d sy

stem

Rev

iew

ed M

WP

and

PW

P gu

idel

ine

21

1G

Ach

ieve

d: V

eri

catio

n so

urce

s: A

ppro

ved

guid

elin

es

Rev

iew

ed S

LP g

uide

line

10

1G

Ach

ieve

d: V

eri

catio

n so

urce

s: A

ppro

ved

guid

elin

es

Impr

ove

Turn

arou

nd

Tim

e

% A

dher

ence

to P

resc

ribed

Ti

me

Fram

es36

.590

-53.

5R

Not

Ach

ieve

d. V

eri

catio

n so

urce

: NM

PS

. 138

7 / 3

798

= 36

.5%

. For

mul

a:#

of A

pplic

atio

ns

rece

ived

pro

cess

ed o

n tim

e /

Tota

l # o

f app

lica-

tions

= %

The

Bra

nch

will

impl

emen

t re

view

ed b

usin

ess

pro-

cess

es a

nd th

e on

line

ap-

plic

atio

n sy

stem

to im

prov

e ef

cie

ncy.


81


OB

JEC

TIVE

MEA

SUR

E

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Mon

itor a

nd e

n-fo

rce

com

plia

nce

Leve

l of c

ompl

ianc

e w

ith

regu

lato

ry re

quire

men

ts75

100

-25

Y

Not

Ach

ieve

d: V

eri

catio

n so

urce

: Sec

tion

93 a

nd 4

7 no

tices

issu

ed (1

272)

. Fo

r-m

ula:

380

8 / 5

105

= 75

% #

of C

ompl

iant

In

spec

tions

/ To

tal #

App

licat

ion

= %

The

Bra

nch

will

cap

aci-

tate

the

com

pone

nt a

nd

also

incr

ease

aw

aren

ess

on re

gula

tory

requ

ire-

men

ts.

Num

ber o

f Env

ironm

enta

l M

anag

emen

t Pla

n (E

MP

) in

spec

tions

2853

1380

1473

GA

chie

ved:

Ver

i ca

tion

sour

ces:

Insp

ectio

n re

ports

The

Bra

nch

over

ac

hiev

ed o

n in

spec

-tio

ns d

ue to

mor

ator

ium

au

dits

.

Num

ber o

f min

ing

char

ter

& le

gal c

ompl

ianc

e in

spec

-tio

ns15

8514

014

45G

Ach

ieve

d: V

eri

catio

n so

urce

: Ins

pect

ion

repo

rts

The

Bra

nch

over

ac

hiev

ed o

n in

spec

-tio

ns d

ue to

mor

ator

ium

au

dits

.

Num

ber o

f Min

ing

Wor

k P

rogr

amm

e (M

WP

)/ P

ros-

pect

ing

Wor

k P

rogr

amm

e (P

WP

) ins

pect

ions

464

302

162

GA

chie

ved:

Ver

i ca

tion

sour

ce: I

nspe

ctio

n re

ports

The

bran

ch o

ver-

achi

eved

on

this

mea

-su

re d

ue to

mor

ator

ium

in

spec

tions

.

Num

ber o

f soc

ial a

nd

labo

ur p

lan

insp

ectio

ns20

014

060

GA

chie

ved:

Ver

i ca

tion

sour

ce: I

nspe

ctio

n re

ports

The

Bra

nch

over

ac

hiev

ed o

n th

is m

ea-

sure

due

to m

orat

oriu

m

insp

ectio

ns

Red

uce

Sta

te e

nvi-

ronm

enta

l lia

bilit

y

% o

f clo

sing

min

es w

ithou

t re

sidu

al s

tate

liab

ility

.10

010

00

G

Ach

ieve

d: V

eri

catio

n so

urce

: Clo

sure

su

bmis

sion

s si

gned

by

Chi

ef D

irect

or.

Cal

cula

tion:

All

157

issu

ed c

losu

res

are

com

plia

nt

% o

f ful

ly fu

nded

env

iron-

men

tal l

iabi

litie

s37

.370

-32.

7Y

Not

ach

ieve

d: 5

85 /

1568

= 3

7.3%

Cal

-cu

latio

n: #

of m

ines

who

revi

sed

in th

e pr

ecee

ding

1ye

ar p

erio

d / #

of m

ines

due

to

revi

se th

eir F

P x

100

= %

The

Bra

nch

will

acc

el-

erat

e in

spec

tions

and

is

sue

notic

es.

Iden

ti e

d an

d pr

iorit

ized

un

reha

bilia

tate

d an

d un

safe

M

inin

g im

pact

101

9G

Ach

ieve

d: L

ist o

f ide

nti

ed s

ites

in

Lim

popo

,NC

,EC

, KZN

and

MP

Pro

ject

s to

be

impl

e-m

ente

d in

the

next

na

n-ci

al y

ear.

Num

ber o

f Ide

nti

ed D

ere-

lict a

nd o

wne

rless

Reh

abili

-ta

tion

proj

ects

impl

emen

ted

57

-2Y

Not

ach

ieve

d: F

ive

reha

bilit

atio

n pr

ojec

ts

wer

e co

mpl

eted

in 2

010/

11. V

eri

catio

ns

sour

ce: C

ontra

cts

with

ser

vice

pro

vder

s an

d M

inut

es o

f Reh

abili

tatio

n O

vers

ight

C

omm

ittee

(RO

C) m

eetin

gs. N

ames

: 1)

Jeb

olo

2) S

trelle

y 3)

Ow

enda

lle a

nd

4) P

riesk

a R

ehab

ilita

tion

Pro

ject

5) P

ries-

ka W

all C

onst

ruct

ion

Rem

aind

er o

f pro

ject

s to

be

impl

emen

ted

in th

e 20

11/1

2 n

anci

al y

ear


82


OB

JEC

TIVE

MEA

SUR

E

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Attr

act a

nd R

etai

n S

taf f

% im

plem

enta

tion

of H

RD

st

rate

gy62

.550

12.5

G

Ach

ieve

d: V

eri

catio

n so

urce

: HR

D s

trat-

egy

repo

rt C

alcu

latio

n: 5

/ 8

x 10

0 =

62.5

%

(Bra

nch

HR

D in

itiat

ives

impl

emen

ted)

/ (T

otal

HR

D in

itiat

ives

) x 1

00=6

2.5%

% im

plem

enta

tion

of T

alen

t M

anag

emen

t Stra

tegy

020

-20

RN

ot a

chie

ved:

The

impl

emen

tatio

n di

d no

t ta

ke p

lace

bec

ause

the

stra

tegy

was

onl

y de

velo

ped

durin

g 20

10/2

011

nan

cial

yea

r

The

stra

tegy

will

be

impl

emen

ted

durin

g th

e 20

11/2

012

nan

cial

yea

r

% re

duct

ion

in v

acan

cy ra

te0

1-1

R

Not

ach

ieve

d M

ore

vaca

ncie

s be

caus

e of

fu

ndin

g of

som

e of

vac

anci

es. 1

st Q

uarte

r 16

%, 2

nd Q

uarte

r 13%

, 3rd

Qua

rter 1

5%

and

curr

ently

17%

.

Fast

trac

king

lin

g of

po

sitio

ns

% re

duct

ion

Sta

ff Tu

rnov

er

rate

15.9

114

.9R

Not

ach

ieve

d. V

eri

catio

n so

urce

. Per

sal

repo

rt

No

com

para

tive

gur

es

from

200

9/10

bec

ause

th

e de

partm

ent w

as

com

bine

d w

ith D

epar

t-m

ent o

f Ene

rgy.

The

de

partm

ent w

ill c

ontin

ue

to m

onito

r the

sta

ff tu

rn-

over

rate

% R

evie

w o

f HR

Pla

n10

010

00

GA

chie

ved:

Ver

i ca

tion

sour

ce: H

R P

lan

Num

ber o

f car

eer/d

evel

op-

men

t ini

tiativ

es (c

aree

r op-

ertu

nitie

s, s

kills

initi

ativ

es,

etc.

) im

plem

ente

d

66

0G

Ach

ieve

d: V

eri

catio

n so

urce

: Pre

sen-

tatio

ns o

n D

MR

car

eers

, Atte

ndan

ce

regi

ster

s. C

entra

l Uni

vers

ity o

f Tec

hnol

-og

y, N

orth

Wes

t Uni

vers

ity (P

otch

est-

room

Cam

pus)

, Nor

th W

est U

nive

rsity

(M

mab

atho

), U

nive

rsity

of L

impo

po, D

ur-

ban

Uni

vers

ity o

f Tec

hnol

ogy,

Uni

vers

ity

of K

waZ

ulu

Nat

al (D

urba

n).

Impr

ove

Lead

er-

ship

and

Man

age-

men

t

% M

anag

emen

t Com

plet

ed

the

Lead

ersh

ip/M

anag

e-m

ent C

ours

es12

70-5

8R

Not

ach

ieve

d: E

DP

impl

emen

ted

in la

st

quat

er a

nd w

ill o

verla

p in

to 2

011

/ 12

nan

cial

yea

r. C

alcu

latio

n: 5

(man

ager

s at

tend

ed) d

ivid

ed b

y 41

(70%

of t

he 5

9 m

anag

ers)

mul

tiplie

d by

100

= 12

% F

or-

mul

a: 5

/ 41

* 1

00 =

12%

The

bran

ch w

ill re

port

on th

is m

easu

re d

ur-

ing

2011

/12

as th

e pr

ogra

mm

e w

as c

om-

men

ced

at th

e en

d of

th

e fo

urth

qua

rter 2

010

/ 11.

% re

turn

on

inve

stm

ent o

n tra

inin

g an

d de

velo

pmen

t0

65

-65

RTo

ol w

as n

ot d

evel

oped

to c

alcu

late

in-

vest

men

t on

train

ing

and

deve

lopm

ent

Trai

ning

of M

anag

-er

s w

ill ta

ke p

lace

in

2011

/201

2

Pro

mot

e C

ore

Valu

es

Num

ber o

f Cor

e Va

lues

W

orks

hops

Con

duct

ed7

52

G

Ach

ieve

d: C

ore

valu

e w

orks

hops

atte

n-da

nce

regi

ster

s. C

ondu

cted

in: G

P, K

ZN,

FS, E

C, N

C, W

C, M

pum

alan

ga &

Hea

d O

f ce

.

Num

ber o

f Ser

vice

Del

iver

y Im

prov

emen

t Pla

ns D

evel

-op

ed1

10

GVe

ri c

atio

n so

urce

: Stra

tegi

c pl

anni

ng

2010

/11


83


OB

JEC

TIVE

MEA

SUR

E

AC

TUA

LTA

RG

ETVA

RIA

NC

EST

ATU

SPE

RFO

RM

AN

CE

CO

MM

ENTS

CO

RR

ECTI

VE A

CTI

ON

Alig

n B

udge

t to

Stra

tegy

% B

udge

t Alig

ned

to S

trat-

egy

100

955

GA

chie

ved:

Ver

i ca

tion

sour

ce: S

pend

ing

Pla

ns 2

010/

11

Man

age

Cos

ts e

f-fe

ctiv

ely

% V

aria

nce

on A

lloca

ted

Bud

get f

or g

oods

and

S

ervi

ces

-87

5-9

2R

Not

ach

ieve

d: T

his

was

due

to th

e un

-pl

anne

d m

orat

oriu

m in

spec

tions

.Ver

i -

catio

n so

urce

: Bud

get a

nd E

xpen

ditu

re

Sta

tem

ent f

or 2

010/

11. C

alcu

latio

n: 1

687

/ 194

0 x

100

= 87

% [B

udge

t 194

0, A

ctua

l B

udge

t 362

7 =

Ove

rspe

nd 1

687]

Com

plia

nce

audi

t bud

-ge

t will

be

budg

eted

for

in fu

ture

bud

get a

lloca

-tio

ns.

Red

uctio

n in

Was

tefu

l, fru

it-le

ss a

nd ir

regu

lar E

xpen

-di

ture

7860

18G

Ach

ieve

d: V

eri

catio

n so

urce

s: Ir

-re

gula

r exp

endi

ture

regi

ster

. Cal

cula

tion:

21

5140

.50

- 458

56.2

0 / 2

1514

0.50

x 1

00

= 78

% F

orm

ula:

200

9/10

- 20

10/1

1 di

vide

by

200

9/10

x 1

00 =

%

Pro

mot

e co

rpor

ate

gove

rnan

ce

% e

xecu

tion

of F

raud

pr

even

tion

and

ER

M im

ple-

men

tatio

n pl

ans

010

0-1

00R

Ris

k as

sess

men

t wer

e pe

rform

ed a

nd ri

sk

man

agem

ent c

omm

itte

met

dur

ing

the

year

. Ris

k ch

ampi

on fo

rum

was

con

sti-

tute

d du

ring

the

year

.

Ris

k ch

ampi

ons

will

ac

tivel

y ad

dres

s ris

k tre

atm

ent a

ctio

ns p

lans

du

ring

2011

/12

.

Com

ply

with

PFM

A97

.510

0-2

.5Y

Ach

ieve

d:Ve

ri c

atio

n S

ourc

e: C

om-

plia

nce

Cer

ti c

ate

Febr

uary

per

iod:

10

0%+1

00%

+100

%+9

0%/4

=97.

5%

Com

ply

with

PS

A10

010

00

GTh

e de

partm

ent

is c

ompl

iant

with

the

rele

vant

pol

icie

s: V

eri

catio

n so

urce

: HR

P

olic

ies

Num

ber o

f rep

eat

ndi

ngs

on in

tern

al a

udit

follo

w u

p re

port

350

35R

Not

ach

ieve

d: F

inan

cial

Pro

visi

on: 9

(6:

parti

ally

com

plet

ed &

3: n

ot d

one)

; Soc

ial

Labo

ur P

lan

25 (1

4: p

artia

lly d

one

& 3

: not

do

ne).

Veri

cat

ion

Sou

rce:

Inte

rnal

Aud

it

Rep

ort

The

Bra

nch

will

add

ress

th

e ch

alle

nges

in th

e rs

t and

sec

ond

quat

ers

of th

e 20

11/1

2 n

anci

al

year

.

Unq

uali

ed

Aud

it R

epor

t0

00

YP

rogr

ess

on u

nqua

li e

d au

dit r

epor

t is

pend

ing

AG

repo

rt.

Any

issu

es a

risin

g fro

m

the

Aud

it R

epor

t will

be

add

ress

ed in

the

2011

/12

nan

cial

yea

r.


84


SER

VIC

E D

ELIV

ERY

IMPR

OVE

MEN

TPLA

NS

MIN

ERA

L R

EGU

LATI

ON

KE

Y S

ER

VIC

ES

ER

VIC

E

BE

NE

FIC

IAR

YC

UR

RE

NT

STA

ND

AR

D (2

009/

10)

DE

SIR

ED

STA

ND

AR

D (2

010/

11)

Incr

ease

d N

umbe

r of

HD

SA’

s an

d W

omen

pa

rtici

patio

n in

the

Min

ing

Indu

stry

HD

SA’

s (b

lack

s,

colo

ured

s an

d In

dian

s)

Qua

ntity

45 ri

ghts

gra

nted

to H

DS

AQ

uant

ity:

63 ri

ghts

gra

nted

to H

DS

A11

7 rig

hts

gran

ted

to H

DS

A’s

as a

t 31st

Mar

ch

2011

Qua

lity

Aud

ited

Qua

lity:

Aud

ited

Not

yet

aud

ited

(un-

audi

ted

by b

ranc

h)

Con

sulta

tion

Mee

tings

and

wor

ksho

ps

with

com

mun

ities

and

m

inin

g in

dust

ryC

onsu

ltatio

nM

eetin

gs a

nd w

orks

hops

w

ith c

omm

uniti

es a

nd m

inin

g in

dust

ry

32 W

orks

hops

con

duct

ed a

s at

31st

Mar

ch

2011

Acc

ess

Com

mun

icat

ion

– D

MR

w

ebsi

te, t

elep

honi

c an

d w

ritte

nA

cces

sC

omm

unic

atio

n –

DM

R

web

site

, tel

epho

nic

and

writ

ten

DM

R is

acc

essi

ble

to a

pplic

ants

, pu

blic

and

oth

er s

take

hol

ders

thro

ugh

mee

tings

, web

site

, tel

epho

nes

and

writ

ten

corr

espo

nden

ce

Cou

rtesy

Hel

p de

sk, W

orks

hops

, M

eetin

gsC

ourte

syH

elp

desk

, Wor

ksho

ps,

Mee

tings

Hel

p de

sk fa

cilit

ies

(SA

MR

AD

hel

pdes

k)

exis

t .In

tera

ctio

ns th

roug

h W

orks

hops

and

M

eetin

gs

Ope

nnes

s a

nd

Tran

spar

ency

Cle

arly

de

ned

and

di

spla

yed

busi

ness

pr

oces

ses

Ope

nnes

s a

nd

Tran

spar

ency

Cle

arly

de

ned

and

di

spla

yed

busi

ness

pr

oces

ses

Intra

net,

Inte

rnet

and

Web

site

.

Bus

ines

s pr

oces

ses

acco

rdin

g to

SA

MR

AD

on

web

site

. Rel

ease

of s

tatis

tics

and

deta

il th

roug

h re

porti

ng

Info

rmat

ion

Gui

delin

es, I

nfor

mat

ion

wor

ksho

ps, a

pplic

atio

n pr

oced

ures

in th

e D

MR

w

ebsi

te

Info

rmat

ion

Gui

delin

es, I

nfor

mat

ion

wor

ksho

ps, a

pplic

atio

n pr

oced

ures

in th

e D

MR

w

ebsi

te

Gui

delin

es, I

nfor

mat

ion

wor

ksho

ps,

appl

icat

ion

proc

edur

es in

the

DM

R w

ebsi

te

Red

ress

Feed

back

mee

tings

, co

rrec

tive

actio

nsR

edre

ssFe

edba

ck m

eetin

gs,

corr

ectiv

e ac

tions

Inve

stig

atio

ns, r

epor

ting,

feed

back

mee

tings

, co

rres

pond

ence

and

cor

rect

ive

actio

n

Valu

e fo

r mon

eyA

cqui

sitio

n of

sha

res

and

owne

rshi

p in

the

min

ing

indu

stry

Valu

e fo

r mon

eyA

cqui

sitio

n of

sha

res

and

owne

rshi

p in

the

min

ing

indu

stry

Dec

isio

ns o

n en

quiri

es a

nd re

ques

ts, i

ssue

d rig

hts

and

good

ser

vice

del

iver

y

Tim

e

Six

mon

ths

for

Pro

spec

ting

Rig

hts

and

Min

ing

Per

mits

, Tw

elve

m

onth

s fo

r Min

ing

Rig

hts

Tim

e

Six

mon

ths

for P

rosp

ectin

g R

ight

s an

d M

inin

g P

erm

its,

Twel

ve m

onth

s fo

r Min

ing

Rig

hts

Six

mon

ths

for P

rosp

ectin

g R

ight

s an

d M

inin

g P

erm

its, T

wel

ve m

onth

s fo

r Min

ing

Rig

hts

Cos

tP

rosp

ectin

g fe

es a

nd

Reh

abili

tatio

n /

nan

cial

pr

ovis

ion

Cos

tP

rosp

ectin

g fe

es a

nd

Reh

abili

tatio

n /

nan

cial

pr

ovis

ion

App

licat

ion

fees

, pro

spec

ting

fees

, re

gist

ratio

n fe

es, f

ees

for a

cces

s to

in

form

atio

n a

nd re

habi

litat

ion

nan

cial

pr

ovis

ion

PR

OG

RE

SS

(as

of 3

1 M

arch

201

1)


85


Con

sist

ent

turn

arou

nd

times

in

proc

essi

ng

pros

pect

ing

and

min

ing

right

s ap

plic

atio

ns

Min

ing

indu

stry

, P

laye

rs in

the

indu

stry

Qua

ntity

:A

ll su

bmitt

ed a

pplic

atio

nsQ

uant

ity:

All

subm

itted

app

licat

ions

90%

of a

pplic

atio

ns s

ubm

itted

hav

e be

en

nal

ised

. For

mul

a: A

pplic

atio

ns re

ceiv

ed

divi

ded

by d

ecis

ions

take

n *

100=

( i.e

gr

ante

d or

refu

sed)

Qua

lity:

All

subm

itted

app

licat

ions

Qua

lity:

All

subm

itted

app

licat

ions

U

n- A

udite

d(by

bra

nch)

and

na

lised

ap

plic

atio

ns

Con

sulta

tion

DW

AF,

DE

AT,D

LA,

com

mun

ities

, Loc

al

Aut

horit

ies,

Nat

iona

l P

arks

Boa

rds

Con

sulta

tion

DW

AF,

DE

AT,D

LA,

com

mun

ities

, Loc

al

Aut

horit

ies,

Nat

iona

l Par

ks

Boa

rds

DW

AF,

DE

AT,D

LA, D

epar

tmen

t of A

gric

ultu

re,

SA

HR

A,

com

mun

ities

, Loc

al A

utho

ritie

s,

Nat

iona

l Par

ks B

oard

s

Acc

ess

Com

mun

icat

ion

– em

ail,

tele

phon

ic a

nd w

ritte

nA

cces

sC

omm

unic

atio

n - D

MR

w

ebsi

te, e

mai

l, te

leph

onic

an

d w

ritte

n

DM

R is

acc

essi

ble

to a

pplic

ants

, pu

blic

and

oth

er s

take

hol

ders

thro

ugh

mee

tings

, web

site

, tel

epho

nes

and

writ

ten

corr

espo

nden

ce

Cou

rtesy

Hel

p de

sk, I

ndus

try

asse

ssm

ent w

ork-

shop

sC

ourte

syH

elp

desk

, Ind

ustry

as

sess

men

t wor

k-sh

ops,

ac

cess

to N

MP

S

Hel

p de

sk fa

cilit

ies

(SA

MR

AD

hel

pdes

k)

exis

t .In

tera

ctio

ns th

roug

h W

orks

hops

and

M

eetin

gs

Ope

nnes

s an

d tra

nspa

renc

yC

lear

ly d

e n

ed a

nd

disp

laye

d bu

sine

ss

proc

esse

s

Ope

nnes

s an

d tra

nspa

renc

y

Cle

arly

de

ned

and

di

spla

yed

busi

ness

pr

oces

ses,

bet

ter a

cces

s to

th

e D

MR

web

site

s/N

MP

S

Intra

net,

Inte

rnet

and

Web

site

.

Bus

ines

s pr

oces

ses

acco

rdin

g to

SA

MR

AD

on

web

site

. Rel

ease

of s

tatis

tics

and

deta

il th

roug

h re

porti

ng

Info

rmat

ion

Indu

stry

wor

ksho

ps o

n bu

sine

ss p

roce

sses

, ap

plic

atio

n pr

oced

ures

in

the

DM

R w

ebsi

te,

Gui

delin

es

Info

rmat

ion

Indu

stry

wor

ksho

ps o

n bu

sine

ss p

roce

sses

, ap

plic

atio

n pr

oced

ures

in th

e D

MR

web

site

, Gui

delin

es/

NM

PS

Gui

delin

es, I

nfor

mat

ion

wor

ksho

ps,

appl

icat

ion

proc

edur

es in

the

DM

R w

ebsi

te

Red

ress

Feed

back

mee

tings

, co

rrec

tive

actio

nsR

edre

ssFe

edba

ck m

eetin

gs,

corr

ectiv

e ac

tions

Inve

stig

atio

ns, r

epor

ting,

feed

back

mee

tings

, co

rres

pond

ence

and

cor

rect

ive

actio

n

Valu

e fo

r mon

eyA

chie

vem

ent o

f obj

ectiv

es

on th

e M

PR

DA

Valu

e fo

r mon

eyTr

ansf

orm

ed in

dust

ryD

ecis

ions

on

enqu

iries

and

requ

ests

, iss

ued

right

s an

d go

od s

ervi

ce d

eliv

ery

Tim

eS

ix m

onth

s fo

r P

rosp

ectin

g R

ight

s an

d M

inin

g P

erm

its, T

wel

ve

mon

ths

for M

inin

g R

ight

s

Tim

e

Six

mon

ths

for P

rosp

ectin

g R

ight

s an

d M

inin

g P

erm

its,

Twel

ve m

onth

s fo

r Min

ing

Rig

hts

Six

mon

ths

for P

rosp

ectin

g R

ight

s an

d M

inin

g P

erm

its, T

wel

ve m

onth

s fo

r Min

ing

Rig

hts

Cos

tP

rosp

ectin

g fe

es a

nd

Reh

abili

tatio

n /

nan

cial

pr

ovis

ion

Cos

tP

rosp

ectin

g fe

es a

nd

Reh

abili

tatio

n /

nan

cial

pr

ovis

ion

App

licat

ion

fees

, pro

spec

ting

fees

, re

gist

ratio

n fe

es, f

ees

for a

cces

s to

in

form

atio

n a

nd re

habi

litat

ion

nan

cial

pr

ovis

ion

KE

Y S

ER

VIC

ES

ER

VIC

E

BE

NE

FIC

IAR

YC

UR

RE

NT

STA

ND

AR

D (2

009/

10)

DE

SIR

ED

STA

ND

AR

D (2

010/

11)

PR

OG

RE

SS

(as

of 3

1 M

arch

201

1)


86


Purpose: To formulate mineral related policies and promote the mining and minerals industry of South Africa thus making it attractive

to investors.

Measurable objective: Through research, provide relevant information that will enhance global competitiveness, review policies and

formulate legislation in order to achieve transformation and attract new investment into South Africa’s minerals industry.

Service delivery objectives and indicators:

The performance of the mining industry for the period 2010 demonstrated signi cant recovery from the preceding implosion of

the global economic and nancial crisis. To this extent, the aggregated extraction rate grew at a phenomenal 5.8% relative to a

contraction experienced in the preceding year. This performance con rms our view that recovery is now well underway and that the

next commodities boom has begun in earnest.

Synchronously, employment in the mining industry shrunk by 5.1% in 2009, although employment of women grew by a staggering

11% in the same year. The employment of women in the sector started from a low base, indicating that efforts to diversify the

workforce are beginning to bear fruits. In 2010, total employment grew by 1.2%, with women employment growing by a further 15.6%.

Total employment in mining reached 498 055, falling marginally short of breaking through the half a million threshold. Employment

in mining continued to grow during the year, and will continue to do so in the future, given the current interventions that are aimed

at positioning this industry along a sustainable growth trajectory resulting in further creation of decent jobs, in line with the national

developmental priorities. These interventions include the development of a national mining sector strategy, the bene ciation strategy

as well as the reviewed Mining Charter.

The Branch successfully led the development of a “strategy for the sustainable growth and meaningful transformation of South

Africa’s mining industry”, which recognises that the country missed an opportunity to leverage from the previous commodities boom

due to a number of binding constraints to growth. This strategy identi es a set of modalities of mitigating against such constraints

and further emphasises the mutual inclusivity of competitiveness and transformation. The strategy is currently serving before Cabinet

processes and should be approved in the course of 2011.

The mineral bene ciation strategy was presented to the Inter–Ministerial Committee on Economic development, Employment and

Infrastructure, at which we were directed to consult relevant economic departments as part of expediting the process of nalising the

document. Such consultations have been done and the document will be ready to serve before Cabinet during the second quarter

of the nancial year.

A Cabinet approval was sought to use the African Exploration, Mining and Financing (Pty) Ltd (AEMFC) as a nucleus for the

establishment of State Owned Mining Company. The work on hiving off the AEMFC from its current wholly owned status by the

Central energy Fund is already at the advanced stage and will culminate into establishment of the AEMFC as a standalone entity.

The management of derelict and ownerless mines is a key deliverable of the Department given the serious challenges that the

country faces from such mines, especially as it includes problems related to acid mine drainage. Following the Minister’s approval

of the strategy for the management and rehabilitation of mines, the Branch has since developed a rehabilitation procedure manual

which will be approved in 2011. As part of the rehabilitation programme, ve sites were successfully rehabilitated during the 2010/11

nancial year, creating a total number of 221 employment opportunities. 10 sites have been prioritised for 2011/12 nancial year and

work in this regard is already underway.

PROGRAMME 4: THE MINERAL POLICY AND PROMOTION


87


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Bui

ld S

trate

gic

Par

tner

ship

s

% im

prov

emen

t on

stak

ehol

der

enga

gem

ents

555

50G

Ach

ieve

d. 3

4 en

gage

men

ts w

ith d

iffer

ent

stak

ehol

ders

200

9/10

=22

stak

ehol

ders

en

gage

men

ts (b

asel

ine)

201

0/11

=34

enga

gem

ents

Diff

eren

ce b

etw

een

34 a

nd

22=1

2 %

incr

ease

= 5

5% T

arge

t exc

eed-

ed b

y 50

% V

eri

catio

n S

ourc

e: R

epor

ts

and

min

utes

of e

ngag

emen

ts

Num

ber o

f stra

tegi

c pa

rtner

ship

s es

tabl

ishe

d5

50

G

Raw

Mat

eria

l Gro

up D

ata

subs

crip

tions

- B

urea

u fo

r Eco

nom

ic R

esea

rch

subs

crip

tion

– C

RU

Gro

up s

ubsc

riptio

n -

Rya

n's

note

s su

bscr

iptio

n - M

etal

Bul

letin

su

bscr

iptio

n Th

e ve

ri c

atio

n so

urce

is

the

cont

ract

sig

ned

for a

cces

s to

the

subs

crip

tions

Con

tribu

te to

Ski

lls

Dev

elop

men

t

Con

tribu

te to

the

UN

CS

D

repo

rting

(the

min

ing

them

atic

ar

ea)

Pre

sent

1st

re

port

Pre

sent

1st

re

port

0G

Veri

cat

ion

Sou

rces

: UN

CS

D re

port

and

atte

ndan

ce re

port

from

mee

ting

in N

ew

York

Faci

litat

e sk

ills

deve

lopm

ent

in m

inin

g th

roug

h an

effe

ctiv

e re

gula

tory

fram

ewor

k

Est

ablis

h ba

selin

e ta

rget

Est

ablis

h ba

selin

e ta

rget

0G

Veri

cat

ion

Sou

rce:

Bas

elin

e of

ski

lls

faci

litat

ion

de n

ed in

the

revi

ewed

Min

ing

Cha

rter d

ocum

ent

Num

ber o

f car

eers

in m

inin

g w

orks

hops

12

-1Y

The

sche

dule

d S

cien

ce U

nlim

ited

Exp

o s

post

pone

d du

e to

lack

fund

s Ve

ri c

atio

n S

ourc

e: R

epor

t on

the

Lear

ners

Foc

us

Wee

k

The

next

Exp

o w

ill b

e he

ld in

A

ugus

t 201

1 an

d D

MR

will

pa

rtici

pate

Driv

e Tr

ansf

orm

atio

n P

olic

ies

Num

ber o

f sus

tain

able

DM

R

supp

orte

d S

MM

Es

8235

47G

Ach

ieve

d. 1

6 B

ene

cia

tion

Pro

j-ec

ts; 6

6 S

SM

Pro

ject

s . V

eri

catio

n S

ourc

e: M

onito

ring

and

eval

uatio

n re

ports

on

the

proj

ects

Tran

sfor

mat

ion

leve

l in

min

ing

sect

or8.

915

% B

EE

ow

ners

hip

-6.1

Y

Not

ach

ieve

d: F

ailu

re b

y th

e m

inin

g se

ctor

to m

eet t

he re

quire

d ta

rget

s Ve

ri c

atio

n S

ourc

e: M

inin

g in

dust

ry

asse

ssm

ent r

epor

t (P

age

20)

Stre

ngth

enin

g of

the

Min

ing

Cha

rter a

nd th

e P

rinci

pal

Act

(MP

RD

A).

The

Min

ing

Cha

rter r

equi

res

min

ing

com

pani

es to

repo

rt pr

ogre

ss

annu

ally.

PRO

GR

AM

4 :

MIN

ERA

L PO

LIC

Y A

ND

PR

OM

OTI

ON


88


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Edu

cate

and

C

omm

unic

ate

with

S

take

hold

ers

Num

ber o

f sta

keho

lder

eng

agem

ent

activ

ities

3515

20G

Ach

ieve

d. 2

0 M

IGD

ETT

mee

tings

- di

amon

d st

rate

gy m

eetin

gs -

Chr

ome

wor

ksho

p -

Mee

ting

with

MQ

A to

faci

litat

e su

ppor

t for

je

wel

lery

pro

ject

s - M

eetin

g w

ith C

CIG

on

the

Aut

ocat

val

ue c

hain

- 4

x S

SM

Sta

ke-

hold

er e

ngag

emen

t (M

eetin

g re

ports

) - N

ko-

mat

i Nic

kel M

ine

Visi

t; M

eetin

g w

ithy

the

Inte

rnat

iona

l Lea

d an

d Zi

nc S

tudy

Gro

up -

Sam

mri

Laun

ch re

port

-Nat

iona

l Tre

asur

y li

ng fo

r 18K

Due

Dili

genc

e co

mpi

latio

n fo

r the

min

ing

and

min

eral

s se

ctor

- S

AR

B

Rou

nd T

able

of p

rofe

ssio

nal e

cono

mis

ts -

Cen

tre fo

r Pol

icy

Res

earc

h in

con

junc

tion

with

Xst

rata

. Par

ticip

atio

n at

BE

E C

oal J

Vs

conf

eren

ce. V

eri

catio

n S

ourc

es: R

epor

ts

and

mee

tings

on

the

enga

gem

ents

.

Pro

mot

eIn

vest

men

t in

the

Min

eral

S

ecto

r

Num

ber o

f Bila

tera

l Agr

eem

ents

Im

plem

ente

d6

24

G

Ach

ieve

d: 3

bila

tera

ls im

plem

ente

d - J

oint

C

omm

ittee

with

Chi

nese

, Joi

nt C

omm

it-te

e w

ith th

e A

ngol

ans

and

Join

t Com

-m

itte

with

the

Indi

ans.

3 m

ultil

ater

als

impl

emen

ted

- Ass

ocia

tion

of D

iam

ond

Pro

duci

ng C

ount

ries(

AD

PA),

Pan

Afri

can

Min

ing

Dev

elop

men

t Cor

pora

tion

(PA

MD

C),

Ben

guel

a C

urre

nt C

omm

issi

on. V

eri

catio

n S

ourc

es: R

epor

ts o

n im

plem

enta

tion

of th

e ag

reem

ents

.

At p

lann

ing

stag

e fo

cus

was

on

bila

tera

l agr

eem

ents

, bu

t thi

s la

ter c

hang

ed d

urin

g im

plem

enta

tion

to in

clud

e m

ulti

late

ral a

gree

men

ts.

% In

crea

se in

Lev

els

of L

ocal

B

ene

cia

tion

and

Sm

all S

cale

M

inin

g P

roje

cts

26%

10%

16%

G

Ach

ieve

d. D

MR

sup

porte

d pr

ojec

ts

incr

ease

d fro

m 6

5 in

Q4

2009

/10

to 8

2 Q

4 20

10/1

1 C

alcu

latio

ns fo

r per

cent

age

incr

ease

from

82-

65 /6

5 =

26%

.Ver

i ca

tion

Sou

rces

: Bra

nch

annu

al p

erfo

rman

ce re

port

for 2

009/

10 a

nd B

ene

cia

tion

and

Sm

all

scal

e m

inin

g pr

ojec

ts m

onito

ring

and

eval

u-at

ion

repo

rts.

The

targ

et w

as e

xcee

ded

as th

ere

wer

e m

ore

aspi

rant

en

trepr

eneu

rs th

an e

xpec

ted

as a

resu

lt of

the

vario

us

info

rmat

ion

sess

ions

hel

d by

D

MR

.

Incr

emen

tal g

row

th in

inve

stm

ent i

n th

e m

inin

g se

ctor

-2.5

3.8

GD

P+1

-6.3

R

Not

Ach

ieve

d. T

he m

easu

re o

f inv

estm

ent

grow

th in

min

ing

is b

elow

the

targ

et o

f GD

P gr

owth

rate

of 2

.8%

+1%

= 3

.8%

. Gro

ss

xed

capi

tal f

orm

atio

n gr

owth

in 2

010

= -2

.5%

. (G

ross

Fix

ed C

apita

l For

mat

ion

in 2

009

was

R

64, 9

bill

ion

and

in 2

010

was

R63

,3 b

illio

n,

givi

ng n

egat

ive

of g

row

th o

f 2.5

%. G

DP

for

2009

was

R1,

78

trilli

on a

nd fo

r 201

0 w

as

R1,

834

trill

ion

whi

ch g

ave

grow

th o

f 2.8

%.

The

2.8%

gro

wth

plu

s 1%

giv

es th

e 3.

8%

targ

et).

The

glob

al e

cono

my

is re

cove

ring

erra

tical

ly fr

om th

e gl

obal

eco

nom

ic c

risis

, re

sulti

ng in

the

corr

espo

ndin

g er

ratic

per

-fo

rman

ce in

min

ing

inve

stm

ent.

The

gur

es

repo

rted

are

one

quar

ter i

n ar

rear

s (D

ecem

-be

r 201

0), a

s th

ere’

s a

lag

in th

e pu

blis

hing

of

the

gur

es a

nd th

e na

ture

of t

he ta

rget

, m

easu

res

and

corr

ectiv

e in

terv

entio

ns a

re

long

term

by

natu

re. V

eri

catio

n so

urce

: gr

oss

xed

cap

ital f

orm

atio

n - i

nfor

mat

ion

sour

ces

from

Sta

tsS

A an

d R

eser

ve B

ank.

A m

inin

g se

ctor

stra

tegy

has

be

en d

evel

oped

to e

ncou

rage

gr

owth

in in

vest

men

t of t

he

sect

or a

nd im

plem

enta

tion

will

be

ove

r the

sho

rt to

long

term

pe

riod

(1 -

10 y

ears

)


89


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Num

ber o

f pla

nned

Min

eral

Pro

-m

otio

nal A

ctiv

ities

impl

emen

ted

2615

11

G

Veri

cat

ion

Sou

ces:

9 x

Sm

all-s

cale

min

-in

g w

orks

hops

(rep

orts

) - D

irect

ory

of

Indu

stria

l Min

eral

Pro

duce

rs -

MB

Bul

letin

Vo

l 23,

Issu

e 1,

2 a

nd 3

, Iss

ue2,

Bul

letin

B

1: -

Min

eral

s: S

tatis

tical

Tab

les

1988

-20

09 -

Dire

ctor

y of

Pla

tinum

gro

up M

etal

M

ines

in S

A - L

imes

tone

Rep

ort -

Sou

th

Afri

can

Dia

mon

d H

andb

ook

and

Ope

rat-

ing

Dia

mon

d M

ines

Dire

ctor

y) -

Ove

rvie

w

of th

e C

obal

t Ind

ustry

in R

SA

,200

0-20

09 -

B1-

Min

eral

s S

tatis

tical

Tab

les,

1988

-200

9 - D

1-O

pera

ting

Min

es, Q

uarr

ies

and

Min

eral

Pro

cess

ing

Pla

nts

in th

e R

epub

lic

of S

outh

Afri

ca, 2

011

- Ref

ract

ory

Cla

ys

Rep

ort -

Sou

th A

frica

’s M

inin

g In

dust

ry

Sem

inar

hel

d du

ring

PD

AC

, 7M

arch

201

1 -P

artic

ipat

ion

and

exhi

bitio

n at

the

Min

ing

Inda

ba -N

ews

ash

on

econ

omic

indi

ca-

tors

-Rep

ort o

n m

inin

g co

ntrib

utio

n to

th

e na

tiona

l eco

nom

y -In

vest

men

t in

the

min

eral

s se

ctor

(RS

A)

Pro

mot

e Jo

b C

reat

ion

Num

ber o

f cou

nter

-cyc

lical

in

terv

entio

ns in

tend

ed fo

r cre

atio

n an

d pr

eser

vatio

n of

dec

ent j

obs

in

the

sect

or

44

0G

Veri

cat

ion

Sou

rces

: Min

ing

Sec

tor

Stra

tegy

, Dec

lara

tion

docu

men

t, R

evie

wed

Min

ing

Cha

rter,

form

atio

n of

th

e M

IGD

ETT

Job

cre

atio

n Ta

sk T

eam

- re

port

of w

orks

hop

held

Pro

mot

e M

iner

al

Ben

e c

iatio

n%

Incr

ease

in L

evel

s of

Loc

al

Ben

e c

iatio

n1%

2%-1

%

Y

Par

tially

ach

ieve

d. %

loca

l sal

es

(200

9) fo

r top

10

com

mod

ities

=31%

- ba

selin

e %

loca

l sal

es (2

010)

for t

op

10 c

omm

oditi

es=3

2% %

incr

ease

=1%

Ve

ri c

atio

n so

urce

: DM

R lo

cal s

ales

and

pr

oduc

tion

stat

istic

s re

ceiv

ed fo

rm m

inin

g co

mpa

nies

Rec

essi

on le

d to

clo

sure

and

st

oppa

ge o

f som

e be

ne c

iatio

n pr

ojec

ts

henc

e th

e sl

ight

incr

ease

in th

e lo

cal

sale

s an

d th

is, c

ombi

ned

with

the

dela

y in

the

form

al a

dopt

ion

of th

e be

ne c

iatio

n st

rate

gy, h

as c

reat

ed u

ncer

tain

ty in

the

bene

cia

tion

indu

stry

.

The

appr

oval

of t

he

bene

cia

tion

stra

tegy

dur

ing

2011

/12

will

impr

ove

the

leve

l of b

ene

cia

tion

whe

n th

e gl

obal

eco

nom

y fu

lly

reco

vers

.

Num

ber o

f DM

R s

uppo

rted

Ben

e c

iatio

n P

roje

cts

1612

4G

Ach

ieve

d. 1

6 be

ne c

iatio

n pr

ojec

ts

supp

orte

d. V

eri

catio

n so

urce

s:

mon

itorin

g an

d ev

alua

tion

repo

rts

and

min

utes

/ rep

orts

of m

eetin

gs w

ith

stak

ehol

ders


90


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Pro

mot

e S

usta

inab

le

Res

ourc

e U

se a

nd

Man

agem

ent

Num

ber o

f Min

eral

inte

llige

nce

proj

ects

impl

emen

ted

22

0G

Ach

ieve

d. T

wo

repo

rts c

ompl

eted

.Ver

i -

catio

n S

ourc

es: R

epor

t on

the

Rar

e E

arth

E

lem

ents

(RE

E) a

nd R

epor

t mad

e in

P

repa

ratio

n to

resp

ond

to th

e su

bmis

sion

m

ade

by th

e S

outh

Afri

can

Ferr

ochr

ome

Indu

stry

to th

e D

epar

tmen

t of M

iner

al

Res

ourc

es.

Num

ber o

f sus

tain

able

DM

R

supp

orte

d S

MM

Es

8235

47G

Ach

ieve

d. 1

6 B

ene

cia

tion

Pro

ject

s; 6

6 S

SM

Pro

ject

s. V

eri

catio

n S

ourc

es: M

oni-

torin

g an

d ev

alua

tion

repo

rts o

n th

e pr

ojec

ts.

Dev

elop

Effe

ctiv

e E

nviro

nmen

tal P

olic

ies

Num

ber o

f effe

ctiv

e en

viro

nmen

tal

polic

y in

stru

men

ts1

10

GA

chie

ved.

Ver

i ca

tion

sour

ce: S

usta

in-

able

Dev

elop

men

t Stra

tegy

for t

he M

inin

g S

ecto

r

Enf

orce

Com

plia

nce

and

Mon

itorin

g of

C

ompl

ianc

e

Faci

litat

e in

crea

sed

% o

f Com

pa-

nies

Com

plyi

ng w

ith th

e re

leva

nt

sect

ion

of th

e M

PR

DA

71%

70%

1%G

Ach

ieve

d. T

he “T

otal

Com

plia

nce

Per

-ce

ntag

e fo

r 201

0/11

is a

t 71%

” and

this

is

the

aver

age

of th

e “C

ompl

ianc

e P

erce

nt-

age”

of t

en d

ata

code

rs. T

he “C

ompl

ianc

e P

erce

ntag

e” o

f eac

h da

ta c

oder

is th

e pe

rcen

tage

of t

he m

ines

that

the

data

co

der i

s re

spon

sibl

e fo

r, th

at a

re u

p to

da

te w

ith th

eir s

ubm

issi

on o

f ret

urns

in

term

s of

sec

tion

28(2

) of t

he M

PR

DA

. C

alcu

latio

n =

Aver

age

Com

plia

nce

perc

enta

ge p

er m

onth

x 1

2/ 1

2. V

eri

ca-

tion

sour

ces:

the

calc

ulat

ions

from

the

com

pany

dat

a ca

ptur

ed.T

he S

AM

IND

EX

da

taba

se is

bei

ng u

pgra

ded,

and

goi

ng

acco

rdin

g to

pla

n an

d w

ill a

ssis

t in

avoi

d-in

g th

e ch

alle

nges

face

d.


91


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Impl

emen

t Ser

vice

Le

vel A

gree

men

ts

% S

tand

ardi

satio

n of

doc

umen

ts

and

inte

rnal

pro

cess

es60

%85

%-2

5%Y

Onl

y 60

% a

chie

ved.

Ver

ca

tion

sour

ces:

Doc

umen

ts fr

om 3

Dire

ctor

ates

-E

cono

mic

Adv

isor

y S

ervi

ces;

Min

eral

P

olic

y D

evel

opm

ent a

nd M

ine

Env

iron-

men

t wer

e re

view

ed (

3/5

= 0.

6 =

60%

ac

hiev

ed).

The

Bas

elin

e: 6

doc

umen

ts

x 85

% =

5.1

doc

umen

ts. F

rom

6 e

xist

-in

g in

tern

al d

ocum

ents

, all

excl

udin

g th

e on

e fo

r Sm

all S

cale

Min

ing

had

to b

e re

-vi

ewed

; nam

ely

- Eco

nom

ic A

dvis

ory

Ser

-vi

ces;

Min

eral

Pol

icy

Dev

elop

men

t; M

ine

Env

ironm

enta

l Res

earc

h an

d S

usta

inab

le

Dev

elop

men

t; B

ene

cia

tion

Eco

nom

ics

and

Min

eral

Eco

nom

ics.

Out

stan

ding

doc

umen

ts

will

be

revi

ewed

dur

ing

the

2011

/12

nan

cial

yea

r.

%A

dher

ence

to s

ervi

ce le

vel

agre

emen

ts10

0%10

0%0%

G

Ach

ieve

d: A

ll fo

ur M

OU

s w

ere

impl

emen

t-ed

. 10

0% c

ompl

ianc

e =

com

plia

nce

to

all 4

ser

vice

leve

l agr

eem

ents

. Ver

i ca

-tio

n so

urce

s: M

oU w

ith C

GS

on

Stra

tegi

c w

ater

man

agem

ent r

esea

rch

prog

ram

me,

M

oU w

ith M

inte

k on

the

reha

b of

D&

O

min

es, M

oU w

ith W

its U

nive

rsity

on

train

-in

g an

d de

velo

pmen

t on

envi

ronm

enta

l m

anag

emen

t and

MO

A w

ith ID

C o

n S

SM

fu

nds

man

agem

ent

Impr

ove

Turn

arou

nd

Tim

e

Ack

now

ledg

emen

t of q

uerie

s w

ithin

3

wor

king

day

sw

ithin

3 w

ork-

ing

days

0G

Veri

cat

ion

sour

ces:

doc

umen

ts o

n re

spon

ses

to q

uerie

s. M

easu

rem

ent o

f ta

rget

and

act

ual i

s in

day

s, th

eref

ore

3 da

ys.

Res

pons

e tim

e to

que

ryw

ithin

7

wor

king

day

sw

ithin

7 w

ork-

ing

days

0G

Veri

cat

ion

sour

ces:

cor

resp

onde

nce

regi

ster

s. T

he ta

rget

and

act

ual a

re m

ea-

sure

d by

day

s, th

eref

ore

7 da

ys.

Pro

vide

Cle

ar p

olic

ies

and

Reg

ulat

ory

Fram

e-w

ork

% R

educ

tion

in id

enti

ed

polic

y an

d re

gula

tory

gap

s70

%70

%0%

G

Ach

ieve

d. T

he ta

rget

was

for t

he 7

out

of

10

area

s of

con

cern

to b

e ad

dres

sed

in th

e 20

10/1

1 n

anci

al y

ear -

thes

e ar

e (i)

Gap

s in

the

MP

RD

A, (

ii) R

ehab

ilita

-tio

n pr

ogre

ss a

nd (i

ii) W

est R

and

min

e cl

osur

e st

rate

gy; (

iv).

Cen

tral R

and

min

e cl

osur

e st

rate

gy; (

v). F

ar W

este

rn m

ine

clos

ure

stra

tegy

; (vi

). K

osh

min

e cl

osur

e st

rate

gy a

nd (v

ii). E

aste

rn m

ine

clos

ure

stra

tegy

. Ver

i ca

tion

sour

ces:

(a) I

nput

s re

port

into

the

MP

RD

A, (

b) R

ehab

ilita

tion

prog

ram

me

repo

rt, (c

) 5 x

Reg

iona

l min

e cl

osur

e st

rate

gies

.


92


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Pro

vide

Pol

icie

s an

d G

uide

lines

Num

ber o

f app

rove

d po

licie

s an

d gu

idel

ines

12

-1Y

Onl

y 1

Act

was

app

rove

d - N

ew p

roce

ss-

es w

ere

intro

duce

d, w

hich

del

ayed

the

intro

duct

ion

of th

e M

PR

DA

Bill

to C

abin

et.

Veri

cat

ion

sour

ces:

Cop

y of

the

Geo

sci-

ence

Am

endm

ent A

ct

The

MP

RD

A B

ill w

ill b

e in

tro-

duce

d to

Cab

inet

dur

ing

the

2011

/12

nan

cial

yea

r.

Res

earc

h an

d D

evel

op-

men

t in

min

e en

viro

n-m

enta

l man

agem

ent

Dev

elop

bes

t env

ironm

enta

l pra

c-tic

es in

the

min

ing

sect

or1

2-1

Y

1 ac

hiev

ed d

ue to

lack

of h

uman

re-

sour

ces.

Ver

i ca

tion

Sou

rces

: Min

e w

ater

re

sear

ch p

rogr

ess

repo

rt

Issu

es o

f hum

an c

apac

ity

will

be a

ddre

ssed

by

llin

g al

l va

cant

pos

ts b

y Ju

ne 2

011.

A

draf

t Stra

tegy

for S

usta

inab

le

Dev

elop

men

t in

Min

ing

has

be

en d

evel

oped

and

will

be

appr

oved

in 2

011/

12.

Attr

act a

nd R

etai

n S

taff

% im

plem

enta

tion

of T

alen

t Man

-ag

emen

t Stra

tegy

020

%-2

0%R

Not

ach

ieve

d - t

he im

plem

enta

tion

did

not

take

pla

ce b

ecau

se th

e st

rate

gy w

as o

nly

deve

lope

d du

ring

2010

/11

nan

cial

yea

r.

The

stra

tegy

will

be

impl

e-m

ente

d du

ring

the

2011

/12

nan

cial

yea

r

% re

duct

ion

in v

acan

cy ra

te0%

1%-1

R

Not

ach

ieve

d M

ore

vaca

ncie

s be

caus

e of

fu

ndin

g of

som

e of

vac

anci

es. 1

st Q

uarte

r 16

%, 2

nd Q

uarte

r 13%

, 3rd

Qua

rter 1

5%

and

curr

ently

17%

.

Fast

trac

king

lin

g of

pos

i-tio

ns

% im

plem

enta

tion

of H

RD

stra

tegy

P

rogr

amm

es63

%50

%13

%G

Ach

ieve

d. 5

out

of t

he 8

HR

D p

lan

initi

a-tiv

es w

ere

conc

lude

d. 5

/8 x

100

= 6

3%

% re

duct

ion

Sta

ff Tu

rnov

er ra

te15

,9%

1%14

,9%

RN

ot a

chie

ved.

Ver

i ca

tion

sour

ce. P

ersa

l re

port

No

com

para

tive

gur

es fr

om

2009

/10

beca

use

the

depa

rt-m

ent w

as c

ombi

ned

with

D

epar

tmen

t of E

nerg

y. T

he

depa

rtmen

t will

con

tinue

to

mon

itor t

he s

taff

turn

over

rate

% R

evie

w o

f HR

Pla

n10

010

00

GVe

ri c

atio

n so

urce

: HR

Pla

n

Num

ber o

f car

eer/d

evel

opm

ent

initi

ativ

es (c

aree

r ope

rtuni

ties,

sk

ills

initi

ativ

es, e

tc.)

impl

emen

ted

66

0G

Ach

ieve

d: V

eri

catio

n S

ourc

e: P

rese

n-ta

tions

on

DM

R c

aree

rs, a

ttend

ance

re

gist

ers.

Cen

tral U

nive

rsity

of T

echn

ol-

ogy,

Nor

th W

est U

nive

rsity

(Pot

ches

t-ro

om C

ampu

s), N

orth

Wes

t Uni

vers

ity

(Mm

abat

ho),

Uni

vers

ity o

f Lim

popo

, Dur

-ba

n U

nive

rsity

of T

echn

olog

y, U

nive

rsity

of

Kw

aZul

u N

atal

(Dur

ban)

.


93


OB

JEC

TIVE

MEA

SUR

EA

CTU

AL

TAR

GET

VAR

IAN

CE

STAT

US

PER

FOR

MA

NC

E C

OM

MEN

TSC

OR

REC

TIVE

AC

TIO

N

Impr

ove

Lead

ersh

ip

and

Man

agem

ent

% M

anag

emen

t Com

plet

ed th

e Le

ader

ship

/Man

agem

ent C

ours

es7.

7%70

%-6

2.3

R

Not

Ach

ieve

d: A

tota

l of 8

MM

S o

f ci

als

atte

nded

the

Adv

ance

d M

anag

emen

t D

evel

opm

ent P

rogr

amm

e (A

MD

P) o

ut o

f 52

of

cial

s on

MM

S le

vel i

n B

ranc

h. 8

/52

x 10

0/2

= 7.

7%

The

Exe

cutiv

e D

evel

opm

ent

Pro

gram

me

(ED

P)

com

men

ced

in th

e la

st

quar

ter o

f the

201

0/11

n

anci

al y

ear a

nd o

verla

ps

into

the

2011

/12

nan

cial

ye

ar.

% re

turn

on

inve

stm

ent o

n tra

inin

g an

d de

velo

pmen

t0

65%

-65%

RTo

ol w

as n

ot d

evel

oped

to c

alcu

late

in

vest

men

t on

train

ing

and

deve

lopm

ent

Trai

ning

of M

anag

ers

will

ta

ke p

lace

in 2

011/

2012

Pro

mot

e C

ore

Valu

es

Num

ber o

f Cor

e Va

lues

W

orks

hops

Con

duct

ed2

20

GVe

ri c

atio

n S

ourc

e: C

ore

valu

e w

orks

hops

atte

ndan

ce re

gist

ers

Num

ber o

f Ser

vice

Del

iver

y Im

prov

emen

t Pla

ns D

evel

oped

11

0G

Veri

cat

ion

sour

ce: D

MR

Stra

tegi

c P

lan

2010

/11

nan

cial

yea

r

Alig

n B

udge

t to

Stra

tegy

% B

udge

t Alig

ned

to S

trate

gy10

0%95

%5%

GVe

ri c

atio

n so

urce

: Bra

nch

spen

ding

pl

ans

Man

age

Cos

ts

effe

ctiv

ely

% V

aria

nce

on A

lloca

ted

Bud

get

for g

oods

and

Ser

vice

s0.

33%

5%-4

.67%

G

The

Bra

nch

expe

nditu

re fo

r the

yea

r is

at 9

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hPROGRAMME 4: THE MINERAL POLICY AND PROMOTION

96

ANNUAL FINANCIAL STATEMENTS FOR THE DEPARTMENTS OF MINERAL RESOURCES

For the year ended 31 March 2011

97

Report of the Audit Committee 99

Report of the Accounting Of cer 101

Report of the Auditor-General 110

Appropriation Statement 114

Notes to the Appropriation Statement 134

Statement of Financial Performance 136

Cash Flow Statement 138

Accounting Policies 139

Notes to the Annual Financial Statements (including Accounting policies) 145

Disclosures Notes to the Annual Financial Statements 175

Annexures 176

TABLE OF CONTENTS

HUMAN RESOURCE MANAGEMENT 187

98


We are pleased to present our report for the nancial year ended 31 March 2011.

Audit Committee Members and Attendance:

All the Audit Committee members of the former Department of Minerals and Energy as well as one (1) new member were ap-

pointed as members of the Department of Mineral Resources on 1 September 2010. The Audit Committee, whose members

are listed hereunder, meets at least four (4) times per annum as per its approved charter. During the current year four (4)

meetings were held. The attendance of the meetings was as follows:

Name of Member Number of Meetings Held Number of meetings AttendedName of Member Number of meetings held Number of meetings

attendedMr. S Sithole (Chairperson) 4 4Ms EH Heyns 3 *0Dr DP van der Nest 4 4Ms Z Musamirapamwe #2 1

*Due to ill-health and subsequently passing on in December 2010.

# Appointed 1 September 2010

Audit Committee Responsibility

The Audit Committee reports that it has, during the year under review, adopted the reviewed Audit Committee Charter in line

with the requirements of Sections 38(1) (a) and 77 of the Public Finance Management Act, Act no. 1 of 1999 and Treasury

Regulation 3.1. The Audit Committee further reports that it has satis ed its responsibilities for the year and has conducted its

affairs in compliance with its charter.

The effectiveness of internal control

The department has designed the system of internal control to provide cost effective assurance that the department’s goals

will be economically, effectively, and ef ciently achieved. In line with the requirements of the PFMA, the International Stan-

dards for the Professional Practice of Internal Auditing issued by the Institute and Internal Auditors, and the King III Report

on Corporate Governance, Internal Audit provided the Audit Committee and management with assurance that the internal

controls are appropriate and effective. This was achieved by means the provision of both the assurance and consulting

services on the risk management, governance, and control processes. From the various reports of the internal auditors,

recommendations were made to management to address issues as reported. The Audit Committee has also reviewed the

activities of the Compliance Of ce which, amongst others, include risk management. The Audit Committee was also satis ed

with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Of cer during the year

under review.

Accordingly, with the exception of the reported de ciencies and deviations, we can report that the system of internal control

over nancial reporting for the period under review was adequate, effective and ef cient.

R

REPORT OF THE AUDIT COMMITTEE


99


Evaluation of Financial Statements

The Audit Committee has:

Reviewed the department’s compliance with legal and regulatory provisions; � Reviewed signi cant adjustments resulting from the audit;� Reviewed the department� ’s Half-yearly Financial Statements;

Reviewed the department� ’s state of readiness report for the annual regularity audit; and

Reviewed the department� ’s Annual Financial Statements.

Internal Audit

The Audit Committee reviewed and approved the department’s Internal Audit Charter, which adequately establishes Internal

Audit’s purpose, authority, and responsibility.

The Audit Committee reviewed the quarterly reports of internal auditors to ensure the internal audit activity’s effectiveness.

The Audit Committee is satis ed that, although there was lack of capacity due to the split process, the internal audit function

operated effectively and that it addressed the risks pertinent to the department in its audits.

Auditor-General

The Audit Committee reviewed the Auditor-General’s report and management letter and further met with the Auditor-General

to ensure that there are no unresolved issues. The Committee has taken notice of the de ciencies in the system of internal

control reported by the Auditor-General. These matters have been referred to the Accounting Of cer for resolution.

_________________________________

Chairperson


100

2010/11 AFS Department of Mineral Resources

REPORT OF THE ACCOUNTING OFFICER FOR THE YEAR ENDED 31 MARCH 2011

1. General review of the state of nancial affairs

During this reporting period, the department engaged in a process of re-de ning and realigning its internal and administrative

processes, policies and procedures for effectively responding to its focused mandate and good progress has been made in this

arena. The focus was also on lling the gaps created as a result of the split in order to strengthen the human capacity within

the support services function.

In its efforts to improve and integrate its services as well as introducing a long-term solution to the issues reported by the

Auditor- General on revenue administration, the department made a good investment and acquired a system for automating

the administration of the mineral resources. The rst module has been completed while the remaining ones (including revenue

management) will be nalised in 2011/12.

Subsequent to the split of Department of Minerals and Energy (DME), the Department of Mineral Resources assumed the role

of a transferring department and drew up a Memorandum of Agreement (MoA) for splitting the assets and liabilities of the DME

as set out in section 42 of the Public Finance Management Act. The Financial Accounting and Reporting guide on Transfer of

functions issued by National Treasury during 2010 was followed as well as the MoA both Accounting Of cers signed during the

transition period (2009/10 nancial year) was taken into account. The MoA was presented to the Department of Energy and

discussions were held in order to agree on the entire inventory list. The DMR Accounting Of cer has since signed the nal MoA

and it has been sent to Department of Energy.

During the year under review, an amount of R7,974 million has been reported as irregular expenditure. Off the total report

R7,224 million was picked up during the audit process and has therefore not been condoned. R3,125 million of that amount

relates to the restructuring of an operating lease to nance lease while R3,701 million was incurred as a result of acquiring

goods and services without following proper procurement procedures. The matter has been referred to National Treasury for

investigation.

In an effort to eliminate cases of non-compliance with the departmental procurement policy and procedures, the following

measures have been implemented:

A monthly report on suspected irregular expenditure is drafted and circulated to all responsibility managers by the Finance

component.

Responsibility managers report back to Finance indicating disciplinary measures taken against the transgressors

The Accounting Of cer only grants condonation based on the corrective measures taken by the Responsibility Manager.

Spending outlook

The department was appropriated a total budget of R995.842 million. An amount of R326,505 million was allocated towards

Compensation of Employees, R210,311 million towards acquisition of goods and services, R438.781 million for transfer to

Public and Private Corporations,

Report by the Accounting Of cer to the Executive Authority and Parliament of the Republic of South Africa.

101

Departmental Agencies and Households, R20.194 million for the acquisition of capital assets and R50 thousand on writing off of

losses.

The table below illustrates the utilization of voted funds per economic classi cation from 2006/7 to 2010/11.

Table and graph for voted funds:

UTILISATION OF VOTED FUNDS

2010/11 2009/10 2008/09 2007/08 2006/07

R'000 R'000 R'000 R'000 R'000

COMPENSATION OF EMPLOYEES 326,457 403,323 330,089 290,561 246,154

GOODS AND SERVICES 206,504 263,475 269,408 277,222 254,665

PAYMENT FOR CAPITAL ASSETS 23,566 48,690 18,855 7,470 6,804

TRANSFER AND SUBSIDIES 438,120 3,828,303 3,111,061 2,366,512 2,099,917

THEFT AND LOSSES 50 925 593 5,602 135

UNSPENT 1,145 137,288 56,235 27,570 27,425

TOTALS (BUDGET) 995,842 4,682,004 3,786,241 2,974,937 2,635,100

% UNDER SPENDING OF VOTE 0.11% 2.90% 0.98% 0.93% 1.04%

UTILISATION OF VOTED FUNDS


102


The department’s budget was fairly shared by the public entities under the control of the ministry and the departmental programmes

and translated into R 437.626 (44 %) and R558.216 (56 %) respectively.

While the department had allocated R326,505 million of the total budget to Compensation of Employees, R326.457 million was

utilized for the reporting period. The spending not only relates to the employees currently on the establishment but costs associated

with contractual employees, interns and learners.

An amount of R206.504 million was used against a budget of R210,311 million to defray cost of goods and services acquired for the

realization of departmental programmes during 2010/11. The costs relating to computer services registered an amount of R21million

while consultants and contractors costs amounted to R17 million. The costs that are driven by personnel such as travelling, inventory

etc recorded spending in relation with the personnel numbers. The venues and facilities, catering and administrative costs recorded

at low levels owing to the cost containment measures that remain in force.

Table for analysis of unspent funds 2010/11

ANALYSIS OF UNSPENT FUNDS 2010/11

2010/11 2010/11

R'000 %

COMPENSATION OF EMPLOYEES 48 0.01%

GOODS AND SERVICES 3,807 1.81%

FINANCIAL TRANSACTIONS IN ASSETS AND LIABILITIES 1 1.96%

PAYMENT FOR CAPITAL ASSETS (3,372) (60.64)%

TRANSFER AND SUBSIDIES 661 57.23%

TOTAL UNSPENT 1,145 0.11%

The department recorded a 0.11% under spending which is attributable to commitments made within goods and services for consulting

services for systems development and other IT services which were not nalised /delivered by year-end.

Virement:The following virement approvals were granted by the Accounting Of cer in terms of section 43(1) of the Public Finance Management

Act, 1999 (Act 1 of 1999) to utilise savings under main divisions of the vote towards the defrayment of expenditure under other main

divisions within the vote:


103

Shift funds from R'000 Motivation

Programme 2: Promotion of Mine Safety and Health 4,975

The under spending was due to vacancies

in respect of inspectorate posts as a result of

shortage of skills.

Programme 4: Mineral Policy and Promotion 2,499

Under-spending associated with the post-

ponement of the of the Acid Mine Drainage

and Derelict and Ownerless mines to next Fi-

nancial year.

TOTAL 7,474

Shift funds to R'000 Motivation

Programme 1: Administration 1,217

Major spending pressures within the branch

relating to centralised services rendered on

behalf of the whole department.

Programme 3: Mineral Regulation 6,257

Spending associated with the compliance

audit projected the branch embarked on

during the nancial year.

TOTAL 7,474

2. Service rendered by the department

2.1 The missionThe mission of the Department of Mineral Resources is to promote and regulate the Mineral and Mining energy sector for

transformation, growth, development and ensure that All South Africans derive sustainable bene t from the country’s wealth.

In order to achieve the above mission the department is split into four key programmes, which are responsible for; amongst

other things:

- ensuring safe mining of minerals under healthy working conditions – Promotion of Mine Health and Safety

- regulating the minerals and mining sector to promote economic growth, employment, transformation and

sustainable development – Mineral Regulation

- Formulating mineral related policies and promote the mining and minerals industry of South Africa thus

making it attractive to investors – Mineral Policy and Promotion

- Support services mainly focus on providing support service to the department

2.2 Tariff policy

Historically, the tariffs used to be levied in terms of the Minerals Act, 1991 (Act 50 of 1991), for State owned Mineral Rights.

The tariffs were and are predetermined and approved by National Treasury. Prospecting fees and royalties are globally

competitive and do not inhibit the initiation of new mining industry projects.

Exploration fees

The exploration fees were charged in terms of the Minerals Act, 1991 (Act 50 of 1991) where the State was the holder of the

mineral rights before 1 May 2004. The approved rates, as from 1 April 2003, started at R3, 00/hectare for the rst year and

escalated at R1, 00/hectare for the maximum period of 5 years determined by a prospecting lease. For any renewal period,

the fee doubled and escalated at R2, 00/hectare/year thereafter. For offshore exploration the same rates applied but for

square kilometers.


104


Due to the promulgation of the Mineral and Petroleum Resources Development Act, Act 28 of 2002 (MPRDA), new prescribed

rates apply on all new prospecting rights granted including privately owned land as from 1 May 2004 – see regulation 76 of

the new MPRDA. Rights already granted at the time of promulgation, will continue with prospecting fees as set out above.

Exploitation fees (Royalties)

Until the Royalty Bill which came into effect 1 March 2010, any new mining rights granted from 1 May 2004 carry no royalties,

the royalties payable were 1% of gross revenue for all minerals and 5% of gross revenue for diamonds for existing rights.

Minimum royalties

Minimum royalties were payable, as a “deposit”, in advance whether mining takes place or not in any speci c year, the State

would receive a measure of a return for any “mining permission” granted. Minimum royalties, as always, may be offset against

actual royalties payable. The general formula for the determination of minimum royalties has been levied at “ten” percent

of the average annual royalties payable in terms of the business plan submitted. The collection of royalties has since the

implementation of the Royalties Act moved to SARS. The Department is however nalising the collection of outstanding fees

that were receivable prior to 1st March 2010.

2.3 Free servicesThis does not apply to the department.

3. Capacity constraintsDuring the period under review, the department experienced serious and diverse capacity challenges especially in both

support services and service deliver programmes. With regards to Support services, securing funding and timely recruiting

and lling positions that resulted from the split of Department of Minerals and Energy was the major challenge, while the line

function battled with loss of human capital as a result of inability to retain the professional staff, especially Inspectors and

Mineral Economists. The implementation of Resolution 3 of 2009 also aggravated this challenge and it also created structural

problems in relation to reporting lines.

In addressing some of the capacity constraints, the department managed to implement a number of training programmes

as identi ed in the Workplace Skills Plan namely the Secretarial Development Programme, Project Management for Middle

Management, Advance Management Development Programme and the Emerging Management Development Programme,

Executive Development programme. The department also implemented a coaching and mentoring programmes, as well talent

management strategy.

4. Utilisation of donor fundsThe department did not receive any donor funds during the period under review.

5. Trading entities and public entitiesThe department continues to monitor the performance of the entities under its control with speci c reference to governance

and nancial management. The table below illustrates the performance of the entities reporting to the Minister of Mineral

Resources in relation to the Auditor General’s report for 2009/10 nancial year. It is clear from this report that the nancial

controls and monitoring systems put in place are beginning to bear fruits. During 2010/11 the department continued with

its oversight over these entities. Although the Auditor-General’s report for 2010/11 will only be nalised in July 2011, it is

expected that the entities will continue in this path.


105

ENTITY SOURCE OF FUNDUNGAUDIT OPINION

2009 / 10 2008 / 09

Council for Mineral Technology and

Research (Mintek) Own and government grant Unquali ed Unquali ed

South African Diamond and Precious

Metals Regulator Own and government grant Unquali ed Unquali ed

Mine Health and Safety Council

(MHSC) Own and government grant Unquali ed Unquali ed

Council for Geoscience (CGS) Own and government grant Unquali ed Unquali ed

State Diamond Trader (SDT) Own (bail out during

2009/10)Unquali ed Unquali ed

Recipient

2010/11

Purpose of transfer paymentActual transfer

R'000

SBT Trust and Council for Geoscience 35,671

Assistance to marginal mines in the form of pumping

subsidies (R3m) and research to prevent ingress of

water into underground holdings (CGS:R32.7m)

Council for Geoscience 136,505 Core funding in terms of establishing act

Council for Mineral Technology Research 195,840R165.8 million -Core funding in terms of establishing

act and R30 million - Mine Rehabilitation projectsSouth African Diamond and Precious Metals

Regulator40,643 Core funding in terms of establishing act

Mine Health and Safety Council 5,358 Core funding in terms of establishing act

Industrial Development Corporation of SA (Small

scale mining)23,609 Small scale mining projects

6. Organisations to whom transfer payments have been made


7. Public Private partnerships (PPP)The department has not engaged in public private partnership arrangements.

106


8. Corporate governance arrangementsThe department has continued to strengthen its checks and balance mechanisms so as to ensure compliance with the

relevant legislation, ef ciency, governance, risk management, and internal control processes.

To maintain its independence, the Internal Audit Activity appropriately reports administratively to the Accounting

Of cer and functionally to the Audit Committee. The Unit’s authority includes unlimited access to all the staff,

information, as well as properties of the Department. The Function obtains its mandate from the Internal Audit

Charter, which was reviewed and approved in the reporting period. The Unit developed and obtained the approval

of its plans, i.e. the annual plan as well as the rolling three-year strategic plan. The plans were based on key

risks facing the Department and also took into consideration other factors such as the Auditor-General’s prior

year’s reports, management’s as well as the Audit Committee’s requests, etc. The status of the progress on the

performance of the audits on the annual plan was presented to the Audit Committee on a quarterly basis.

The audits conducted during the year were mainly compliance, information technology, performance and

performance information, and nancial. The Unit also performed investigations that originated from management

requests and those from other organs of the state such as the Public Protector and the Presidential Hotline.

The Unit’s operations are guided by the requirements set out in the legislative prescripts (e.g. the PFMA and the

Treasury Regulations) and the standards set by the relevant professional bodies (e.g. the Institute of Internal

Auditors).

The department has established an Audit Committee in terms of Section 77 of the PFMA. Four (4) members were

appointed into the Department’s Audit Committee, which included all the three (3) members that constituted the

former Department of Minerals and Energy’s Committee. The members of the Audit Committee have the requisite

knowledge and competence to deal with nancial, risk management, governance, ethical and other matters that

pertain to its responsibility. The Committee operated in line with its Charter, which was reviewed and approved in

the reporting period. During the nancial period under review, the Committee met four (4) times. The matters tabled

for consideration by the Committee included the review of nancial statements, the Auditor-General’s management

letters, reports and activities of the Internal Audit Activity and the Risk Management Of ce, and matters that relate

to compliance with laws, regulations and policies.

The department continues to minimise risks that it is exposed to by ensuring that all major risks are proactively

identi ed, assessed and managed to acceptable levels. The Department’s risk committee continued in its oversight

role of risk management activities in the department. A strategic risk assessment workshop was conducted in order

to identify the array of risks the department is exposed to. As a result of this exercise all branch risk pro les were

developed and responsibilities for managing these risks were assigned to management and staff. Risk pro les

developed from the assessment process are used to inform the department’s internal audit plans. The department

continued to implement its fraud prevention and anti corruption strategy which is in line with minimum anti corruption

capacity requirements.

During the year the accounting of cer was compliant with the general and reporting responsibilities respectively

detailed in sections 38 and 40 of the Public Finance Management Act 1 of 1999 as amended. The department has

also not had cases where con ict of interest was reported in its administrative processes.

9. Discontinued activities/activities to be discontinuedThe split of the erstwhile Department of Minerals and Energy has resulted in the transfer to certain functions from the DMR

to the Department of Energy. The affected functions are:


107

Hydrocarbons, Energy Planning and Cleaning programme – transfer to Department of Energy since 01 April 2010

The activities in relation to this programme included:

- Promoting sustainable use of energy resources through integrated energy planning, developing policies and

regulations and

- Managing petroleum, coal and natural gas sectors

Electricity, Nuclear and Clean Energy Programme – transferred to Department of Energy since 01 April 2010


- Developing, implementing and monitoring electricity policies and programs

- Improving the governance of the nuclear sector, speci cally in relation to nuclear safety, nuclear non-proliferation

and nuclear technology.

- Lastly, facilitating the implementation of renewal energy, energy ef cient technology as well as regulating and

promoting the clean development mechanism activities.

10. New/proposed activitiesThe department will continue with its current activities and no new activities will be added during 2011/12 nancial year.

11. Asset managementAll assets procured during the year have been captured on the assets register. The asset register has also been successfully

reconciled with the nancial accounting system of the department. The detail to this item is presented in notes 30 to 32 in

the Annual Financial Statements.

12. InventoriesOpening, movements and closing balances for inventories were properly captured and are reported accordingly in Annexure

5.

13. Events after the reporting dateThere are no events after the reporting date noted for reporting.

14. Information on predetermined objectives A Quarterly Monitoring Report (QMR) on Performance Information is submitted to the Director-General for approval on a

quarterly basis.

These quarterly reports highlight areas of concern for noting while also presenting interventions already in pursuit. Each

branch head submits performance information with a signed compliance declaration. The Strategy Risk & Monitoring (SRM/

Compliance Of ce) is responsible for analysis of performance information. This analysis examines performance across the


108


Department in line with the approved strategic plan document. The analysis concentrates on the completeness, reasonability

and relevance of the reported information. The SRM then consolidates and forwards the report to Internal Audit for veri cation.

At year-end, the consolidated report is made available to Auditor- General for audit purposes.

15. SCOPA resolutionsNo resolutions were received from SCOPA in respect of the 2009/10 audit report.

16. Prior modi cations to audit reports

Nature of quali cation, disclaimer, adverse opinion

and matters of non-complianceFinancial year in which it rst arose

Progress made in clearing / re-

solving the matter

Receivables for departmental revenue: Incomplete-

ness, inconsistency and inaccuracy2009/10

A system of monthly review of

manual revenue registers from all

regions was introduced since Oc-

tober 2010.

With effect from 1 March 2011

capacity at the regional of ces

was increased.

Engaged in process of developing

a revenue management elec-

tronic system of which the user

requirements have been signed

off and the service provider has

already been appointed.

17. Exemptions and deviations received from National TreasuryThere were no exemptions and deviation approval requested from National Treasury during the reporting period.

18. Comparative guresIn line with the requirements of the guidelines on Transfer of functions issued by National Treasury during 2010, all amounts

re ected under 2009/10 relate to the Department of Minerals and Energy.


19 ApprovalThe Annual Financial Statements set out on pages 101 to 188 have been approved by the Accounting Of cer.

109

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON VOTE NO 31: DEPARTMENT OF MINERAL RESOURCES REPORT ON THE FINANCIAL STATEMENTS

Introduction I have audited the accompanying nancial statements of the Department of Mineral Resources, which comprise the

appropriation statement, the statement of nancial position as at 31 March 2011, and the statement of nancial performance,

statement of changes in net assets and cash ow statement for the year then ended, a summary of signi cant accounting

policies and other explanatory information, as set out on pages 139 to 186.

Accounting of cer’s responsibility for the nancial statementsThe accounting of cer is responsible for the preparation of these nancial statements in accordance with the Departmental

Reporting Framework prescribed by National Treasury and the requirements of the Public Finance Management Act, 1999

(Act No. 1 of 1999) (PFMA, and for such internal control as management determines necessary to enable the preparation of

nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor- General’s responsibilityAs required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) and section 4

of the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), my responsibility is to express an opinion on these

nancial statements based on my audit.

I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in

Government Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance about whether the nancial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nancial

statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material

misstatement of the nancial statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation of the nancial statements in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s

internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness

of accounting estimates made by management, as well as evaluating the overall presentation of the nancial statements.

I believe that the audit evidence I have obtained is suf cient and appropriate to provide a basis for my quali ed audit opinion.

Basis for quali ed opinion

Receivables for Departmental RevenueSection 38 (1)(a)(i) of the PFMA requires that a department has and maintains effective, ef cient and transparent systems of

nancial and risk management and internal control and section 38(1)(c) of the PFMA requires that an accounting of cer of an

department take effective and appropriate steps to collect all money due to the entity.

The receivables for departmental revenue balance of R72,2 million (2010: R72,5 million) included in disclosure note 24 to the

nancial statements, is misstated as a result of omissions in respect of payments received and not recorded, amounts due

not being raised and incorrect interest calculations on outstanding balances. The department did not identify and correct all

the errors that exist in the balance as a result the extent of the error cannot be determined. The department’s records did not

allow me to perform alternative audit procedures to satisfy me of the receivables for departmental revenue. Consequently, I

was unable to obtain suf cient appropriate audit evidence to satisfy myself as to the existence, completeness, valuation and

allocation of and rights pertaining to the receivables for departmental revenue balance.

1.

2.

3.

4

5.

6.

7.

8.

REPORT OF THE AUDITOR - GENERAL FOR THE YEAR ENDED 31 MARCH 2011

110


RevenueThe department could not provide suf cient appropriate audit evidence to support journal entries of R50,4 million debited

to revenue. The journal entries were based on total receipts from royalty debtors without reconciling the payments received

to outstanding debt balances thereby understating the revenue amount. Further, the credit entries in the revenue account

include receipts from prospecting fees that have not been appropriately reconciled to outstanding receivables balances. There

were no satisfactory alternative audit procedures that I could perform to obtain reasonable assurance that all revenue was

properly recorded. Consequently, I did not obtain suf cient appropriate audit evidence to satisfy myself as to the completeness,

accuracy and classi cation of revenue of R30,3 million.

PayablesDue to the limitations identi ed in the paragraph above I am also unable to conclude on the existence, completeness, valuation

and allocation of and obligations pertaining to the payables balance to the amount of R53,5 million. The department’s records

did not permit the application of alternative audit procedures regarding the payables balance.

ProvisionsIncluded in note 29, impairments and other provisions, to the nancial statements are receivables for departmental revenue

debt balances that are outstanding for longer than three years amounting to R36,3 million (2010: R36,5 million), which the

department impairs in accordance with its policy on impairments. I am unable to obtain suf cient appropriate audit evidence to

conclude on the existence, completeness, valuation and allocation and obligations of the other provisions balance due to the

limitation reported in paragraphs 7 and 8 above on receivables for departmental revenue debt balance,.

Contingent liabilitiesThe contingent liabilities, as disclosed in note 19 to the nancial statements, include the department’s obligations in respect of

abandoned mines. The department is and has been conducting rehabilitation activities in respect of the abandoned mines in

accordance with the National Strategy for the Management of Derelict and Ownerless Mines in South Africa. The department

is still in the process of establishing a nancial estimate of the liability with the result that management has taken a decision not

to disclose a provision in this regard. The department’s records did not permit the application of alternative audit procedures

regarding the department’s obligation in respect of abandoned mines. Consequently I was unable to obtain suf cient

appropriate audit evidence to satisfy myself as to the existence, completeness and valuation of the contingent liabilities and

the corresponding impact on the provisions balance.

Quali ed opinionIn my opinion, except for the possible effects of the matters described in the Basis for quali ed opinion paragraphs, the

nancial statements present fairly, in all material respects, the nancial position of the Department of Mineral Resources as at

31 March 2011 and its nancial performance and cash ows for the year ended, in accordance with Departmental Reporting

Framework prescribed by National Treasury and the requirements of PFMA.

Emphasis of matters I draw attention to the matters below. My opinion is not modi ed in respect of these matters:

Restatement of corresponding guresAs disclosed in notes 23, 24, 29 to the nancial statements, the corresponding gures for 31 March 2010 have been restated

as a result of an error discovered during 2011 in the nancial statements of the Department of Mineral Resources at, and for

the year ended, 31 March 2010.

Material lossesMaterial losses to the amount of R5,8 million were incurred as a result of the assets that could not be veri ed during the asset

veri cation process conducted for the nancial year ended 31 March 2011.

9.

10.

11.

12.

13.

14.


15.

16.

111

AccrualsAccruals which exceed the payment term of 30 days as detailed in the Treasury Regulation 8.2.3 amount to R41,1 million.

This amount, in turn, exceeds the voted funds to be surrendered of R1,1 million as per the statement of nancial performance

by R40 million. The amount of R40 million would therefore have constituted unauthorised expenditure had the amount due

been paid in time.

Additional matters I draw attention to the matters below. My opinion is not modi ed in respect of these matters:

Unaudited supplementary schedulesThe supplementary information set out on pages 175 to 186 does not form part of the nancial statements and is presented

as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

Financial reporting frameworkSection 20(2)(a) of the PAA requires me to express an opinion on the fair presentation of the nancial statements of the

Department of Mineral Resources. As the nancial reporting framework applied by the department is a compliance framework,

this would have resulted in my opinion stating that the nancial statements were prepared, in all material respects, in

accordance with the applicable nancial reporting framework, but for this requirement.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS In accordance with the PAA and in terms of General Notice 1111 of 2010 issued in Government Gazette 33872 of 15

December 2010, I include below my ndings on the annual performance report as set out on pages 27 to 96 and material

non-compliance with laws and regulations applicable to the department.

Predetermined objectives There were no material ndings on the annual performance report concerning the presentation, usefulness and reliability of

the information.

Compliance with laws and regulations

Annual nancial statements, performance and annual reportThe accounting of cer submitted nancial statements for auditing that were not prepared in all material aspects in accordance

with generally recognised accounting practice and supported by full and proper records as required by section 40(1) (a)

and) (b) of the PFMA. Certain material misstatements identi ed by the Auditor-General South Africa with regards to various

account balances and disclosure notes were subsequently corrected, however the uncorrected material misstatements

resulted in the nancial statements receiving a quali ed audit opinion in contravention of section 40(3)(a).

Revenue ManagementThe accounting of cer did not develop and implement appropriate processes that provide for the identi cation,

collection, recording, reconciliation and safeguarding of information about revenue to ensure that all money due to the department

is collected as per the requirements of section 38(1)(c)(ii) of the PFMA and Treasury Regulation 7.2.1.

Expenditure ManagementThe accounting of cer did not take effective steps to prevent irregular expenditure, as per the requirements of section 38(1)

(c)(ii) of the PFMA.

The accounting of cer did not immediately upon the discovery of irregular expenditure report it to the relevant treasury as per

the requirements of section 38(1)(g) of the PFMA.

Payments due to creditors were not always settled within 30 days from receipt of an invoice as per the requirements of

section 38(1)(f) of the PFMA and TR 8.2.3.

17.

18.

19.

20.

21.

22.

23.


24.

25.

26.

27.

112


INTERNAL CONTROL In accordance with the PAA and in terms of General Notice 1111 of 2010, issued in Government Gazette 33872 of 15 December

2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness

of internal control. The matters reported below are limited to the signi cant de ciencies that resulted in the basis for quali ed

opinion and the ndings on compliance with laws and regulations included in this report.

• Leadership

Ongoing monitoring and supervision undertaken to enable management to determine whether internal controls over nancial

reporting is present and functioning were not adequate which led to the material uncorrected and corrected misstatements on

the nancial statements and non compliance with laws and regulations.

The uncorrected misstatements that form the basis for the quali ed audit opinion are as a result of management not

implementing timely corrective action to address internal control de ciencies.

• Financial and performance management

There is inadequate record keeping as a result complete and accurate information is not accessible and available to support

nancial reporting. The department does not have appropriate systems of internal control relevant to the nature of the

operations, as a result appropriate estimates for provisions could not be determined.

There are inadequate controls over the daily and monthly reporting processing and reconciling of transactions.

Although the department has extended signi cant effort to address the root causes that resulted in the previous year’s audit

quali cation on the receivables for departmental revenue nancial statements balance, the lack of an appropriate debtors’

management system still proved a challenge in the current year resulting in an audit quali cation in the current nancial year.

Pretoria

19 September 2011

28.


113

Appropriation per programme

2010/11 2009/10

APPROPRIATION

STATEMENT

Adjusted

Appropriation

Shifting of

FundsVirement

Final

Appropriation

Actual

ExpenditureVariance

Expenditure

as % of

nal

appropriation

Final

Appropriation

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1. Programme 1

Current

payment 212,905 24 (4,595) 208,334 204,555 3,779 98.2% 224,546 223,325

Transfers and

subsidies 1,095 60 (27) 1,128 467 661 41.4% 784 450

Payment for

capital assets 9,699 2,865 5,818 18,382 21,685 (3,303) 118.0% 24,135 24,727

Payment

for nancial

assets

- - 21 21 20 1 95.2% 751 751

223,699 2,949 1,217 227,865 226,727 1,138 250,216 249,253

2. Programme 2

Current

payment 136,233 (131) (4,467) 131,635 131,702 (67) 100.1% 129,031 128,894

Transfers and

subsidies 5,358 - 3 5,361 5,361 - 100.0% 5,125 5,125

Payment for

capital assets 479 131 (526) 84 15 69 17.9% 4,443 4,406

Payment

for nancial

assets

- - 15 15 14 1 93.3% 118 118

142,070 - (4,975) 137,095 137,092 3 138,717 138,543

3. Programme 3

Current

payment 171,687 (30,162) 4,697 146,222 146,079 143 99.9% 143,375 135,890

Transfers and

subsidies 40,643 - 24 40,667 40,667

- 100.0% 39,449 39,447

Payment for

capital assets 24 162 1526 1, 712 1, 852 (140) 108.2% 14,742 14,659

Payment

for nancial

assets

- - 10 10 10 - 100.0% 12 12

212,354 (30,000) 6,257 188,611 188,608 3 158,164 190,008

4. Programme 4

Current

payment 56,094 (2,965) (2,504) 50,625 50,625

- 100.0% 43,591 43,539

Transfers and

subsidies361,625 30,000 - 391,625 391,625 - 100.0% 26,058 26,058

Payment for

capital assets - 16 - 16 15 1 93.8% 4,127 4,127

Payment

for nancial

assets

- - 5 5 5 - 100.0% - -

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2011

114


Appropriation per programme

2010/11 2009/10

APPROPRIATION

STATEMENT

Adjusted

Appropriation

Shifting of

FundsVirement

Final

Appropriation

Actual

ExpenditureVariance

Expenditure

as % of

nal

appropriation

Final

Appropriation

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

417,719 27,051 (2,499) 442,271 442,270 1 73,776 73,724

5. Programme 5

Current

payment56,271 56,154

Payment for

capital assets702 771

Payment for nancial assets

6. Programme 6

Current

payment 73,783 79,039

Transfers and

subsidies265,153 255,031

Payment for

capital assets- -

338,936 334,070

7. Programme 7

Transfers and

subsidies3,665,222 3,541,605

3,665,222 3,541,605

TOTAL 995,842 - - 995,842 994,697 1,145 99.9% 4,682,004 45,841,28


- -

56,973 56,925

115

2010/11 2009/10

FinalAppropriation

ActualExpenditure

FinalAppropriation

ActualExpenditure

TOTAL (brought forward)Reconciliation with statement of nancial performance

ADD

Departmental receipts 30,302 217,144

Direct Exchequer

receipts

Aid assistance

Actual amounts per statement of nancial performance (total revenue)

1,026,144 4,899,148

ADD

Aid assistance 5,849

Direct Exchequer

payments

Prior year unauthorised

expenditure approved

without funding

Actual amounts per statement of nancial performance (total expenditure)

994,697 4,550,565

5,849


116


Appropriation per economic classi cation

2010/11 2009/10

AdjustedAppropriation

Shifting of Funds

VirementFinal

AppropriationActual

ExpenditureVariance

Expenditureas % of nal

appropriation

FinalAppropriation

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees

344,142 (3,459) (14,178) 326,505 326,457 48 100,0% 395,590 403,323

Goods and services

232,777 (29,775) 7,309 210,311 206,504 3,807 98,2% 274,962 263,475

Transfers and subsidies

Provinces and municipalities

1,107,957 1,074,553

Departmental agencies and accounts

182,506 32,671 - 215,177 215,177 - 100,0% 291,816 291,814

Public corporations and private enterprises

225,120 (2,671) - 222,449 222,449 - 100,0% 2,561,778 2,461,445

Households 1,095 60 - 1,155 494 661 42,8% 826 491

Payments for capital assets

Buildings and other xed structures

- 342 7,268 7,610 17,059 (9,449) 224.2% 22,960 22,879

Machinery and equipment

10,202 2,551 (1,450) 11,303 5,367 5,936 47,5% 23,898 24,505

Software and other intangible assets

- 281 1,000 1,281 1,140 141 89,0% 1,291 1,306

Payments for nancial assets

- - 51 51 50 1 98,0% 926 924

Total 995,842 - - 995,842 994,697 1,145 99,9% 4,682,004 4,544,716


117

2010/11 2009/10

Programme 1

Detail per sub-programme


Shifting of Funds

VirementFinal

AppropriationActual

ExpenditureVariance

Expenditureas % of nal

appropriation

FinalAppropriation

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

1.1 Ministry

Current payment 1,808 823 2,631 2,672 (41) 101,6% 3,450 2,240

1.2 Management

Current payment 24,522 1,033 (4,938) 20,617 20,574 43 99,8% 21,987 22,257

Transfers and subsidies 60 - 60 - 60

Payment for capital

assets 31 1,856 (342) 1,545 1,165 380 75,4% 2,220 1,990

Payment for nancial

assets - - 21 21

1.3 Corporate Services

Current payment 163,925 (1,009) (480) 162,436 163,336 (900) 100,6% 172,173 198,791

Transfers and subsidies 1,095 (27) 1,068 467 601 43,7% 784 450

Payment for capital

assets 9,668 1,009 6,160 16,837 20,520 (3,683) 121,9% 21,915 22,737

Payment for nancial assets 21 21 20 1 95,2% 730 730

1.4 Of ce Accommoda-tion

Current payment 22,650 - - 22,650 17,973 4,677 79,4% 26,936 37

Total 223,699 2,949 1,217 227,865 226,727 1,138 99,5% 250,216 249,253


118


Statutory Appropriation per economic classi cation

2010/11 2009/10

Program 1

Per Economic classi cation

AdjustedAppropria-tion

Shifting of Funds

VirementFinalAppropria-tion

ActualExpendi-ture

Variance

Expenditureas % of nal appropria-tion

FinalAppropriation

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments


104,432 1,985 (15,624) 90,793 90,745 48 99.9% 102,731 109,782

Goods and services

108,473 (1,961) 11,029 117,541 113,810 3,731 96.8% 121,815 113,542


Households 1,095 60 (27) 1,128 467 661 41.4% 784 451



342 7,268 7,610 17,059 (9,449) 224.2% 5,283 5,283


9,699 2,242 (1,450) 10,491 4,625 5,866 44.1% 17,561 18,138

Software and other intangible assets

281 281 281 1,291 1,306


21 21 21 - 100.0% 751 751

Total 223,699 2,949 1,217 227,865 226,727 1,138 99.5% 250,216 249,253


119

2010/11 2009/10

Programme 2

Detail per sub-programme


Shifting of Funds Virement Final

AppropriationActual

Expenditure VarianceExpenditureas % of nal

appropriationFinal

AppropriationActual

expenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

2.1 Governance Policy and Over-sight

Current payment 40,117 (4,208) 10,736 46,645 46,712 (67) 100.1% 51,761 51,759

Transfers and subsidies 5,358 3 5,361 5,361

- 100.0% 5,120 5,120

Payment for capital assets 209 49 (258) - - - 4,406 4,406

Payment for nan-cial assets - -

- 66 66

2.2 Mine Health and Safety (Re-gions)

Current payment 96,116 4,077 (15,203) 84,990 84,990 - 100.0% 77,270 77,135

Transfers and subsidies - -

- 5 5

Payment for capital assets 270 82 (268) 84 15 69 17.9% 37 -

Payment for nan-cial assets 15 15 14 1 93.3% 52 52

Total 142,070 - (4,975) 137,095 137,092 3 100.0% 138,717 138,543


120


2010/11 2009/10

Programme 2

Per Economic classi cation

AdjustedAppro-priation

Shifting of Funds Virement

FinalAppro-priation

ActualExpendi-ture

Variance

Expendi-tureas % of nal appropria-tion

FinalAppro-priation

Actualexpendi-ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments


113,294

(2,639)

(8,093)

102,562

102,561

1 100.0%

94,182

94,046

Goods and services 22,939

2,508

3,626

29,073

29,141

(68) 100.2%

34,849

34,849

Transfers and sub-sidies to:

Departmental agen-cies and accounts

5,358 -

5,358

5,358

- 100.0% 5,118

5,118

Households 3

3

3

- 100.0%

7

6

Payment for capi-tal assets


- -

4,387

4,406


479

131 (526) 84

15 69 17.9% 56

-


15

15

14

1 93.3% 118

118

Total 142,070 - (4,975) 137,095 137,092 3 100.0% 138,717 138,543


121

2010/11 2009/10

Programme 3

Detail per sub-pro-gramme

AdjustedAppro-priation


FinalAppropria-tion

ActualExpendi-ture

Variance

Expendi-tureas % of nal appro-

priation

FinalAppropria-tion

Actualexpendi-ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

3.1 Management

Current pay-ment 5,501 734 2,699 8,934 8,935 (1) 100.0% 17,826 13,925

Payment for capital assets 16 16 15 1 93.8% 6,991 6,891

3.2 Mineral Regulation and Adminis-tration

Current pay-ment 166,186 (30,896) 1,998 137,288 137,144 144 99.9% 125,549 121,965

Transfers and subsidies 24 24 24 - 100.0% 35 35

Payment for capital assets 24 146 1,526 1, 696 1,837 (141) 108.3% 7,751 7,768

Payment for nancial as-sets

10 10 10 - 100.0% 12 12

3.3 South African Diamond and Precious Metal Regula-tor

Transfers and subsidies 40,643 40,643 40,643 - 100.0% - -

Total 212,354 (30,000) 6,257 188,611 188,608 3 100.0% 158,164 150,596


122


2010/11 2009/10

Programme 3 Per Economic

classi cation

Adjust-ed

Appro-priation


FinalAppropria-

tion

ActualExpendi-

tureVariance

Expendi-ture

as % of nal ap-propria-

tion

FinalAppro-

priation

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current payments

Compensation of employees 90,448 7,947 98,395 98,396 (1) 100,0% 90,424 91,292

Goods and services 81,239 (30,162) (3,250) 47,827 47,683 144 99,7% 52,951 44,598

Transfers and subsidies to:


40,643 40,643 40,643 - 100,0% - -

Households 24 24 24 - 100,0% 39,447 39,447

Payment for capital assets


- - 9,163 9,063

Machinery and equipment 24 162 526 712 712 - 100,0% 5,579 5,596

Software & other intangible assets 1,000 1,000 1,140 140 114,0% - -

Payments for nancial assets 10 10 10 - 100,0% 12 12

Total 212,354 (30,000) 6,257 188,611 188,608 3 100.0% 158,164 150,596


123

2010/11 2009/10

Programme 4Detail per sub-programme



FinalAppro-priation

ActualExpendi-ture

Variance

Expen-ditureas % of nal ap-

propria-tion

FinalAppro-priation

Actualexpendi-ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

4.1 Manage-ment

Current pay-ment 13,111 (3,271) 7,573 17,413 17,413 - 100,0% 11,933 11,932


- -

1,000

1,000

Payment for capital assets 16 16 15 1 93,8% 4,127 4,127


-

- -

-

4.2 Mineral Policy

Current pay-ment 7,108 2,230 (4,431) 4,907 4,907 - 100,0% 10,519 10,510


1 1 1 - 100,0% - -

4.3 Mineral Promotion

Current pay-ment 28,632 1,022 (4,356) 25,298 25,298 - 100,0% 21,139 21,097

Transfers and subsidies 23,609 23,609 23,609 - 100,0% 25,058 25,058


4 4 4 - 100,0% - -

4.4 Assistance to Mines


124


2010/11 2009/10




FinalAppro-priation

ActualExpendi-ture

Variance

Expen-ditureas % of nal ap-

propria-tion

FinalAppro-priation

Actualexpendi-ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000


35,671

(32,671)

-

3,000

3,000

- 100.0% - -

4.5 Council for Geoscience


136,505

32,671

169,176

169,176

- 100.0% - -

4.6 Council for Mineral Technology


165,840

30,000

195,840

195,840

- 100.0% - -

4.7 Economic Advisory services

Current pay-ment

3,559

(2,949)

(610) - - - -

4.8 Mine Envi-ronmental Manage-ment

Current pay-ment 3,684 3 (680) 3,007 3,007 - 100.0% - -

Total 417,719 27,051 (2,499) 442,271 442,270 1 100.0% 73,776 73,724


125

2010/11 2009/10

Programme 4 Per Economic classi cation

Adjusted

Appro-

priation

Shifting of

Funds

Vire-

ment

Final

Appro-

priation

Actual

ExpenditureVariance

Expen-

diture

as % of

nal ap-

propria-

tion

Final

Appro-

priation

Actual

expendi-

ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current pay-ments

Compensation of employees 35,968 (2,805) 1,592 34,755 34,755 - 100.0% 30,456 30,455

Goods and services 20,126 (160) (4,096) 15,870 15,870 - 100.0% 13,121 13,070

Transfers and subsidies to:


136,505 32,671 169,176 169,176 - 100.0% 1,000 1,000

Public corpora-tions and private enter-prises

225,120 (2,671) 222,449 222,449

- 100.0% 25,058 25,058



- 4,127 4,127

Machinery and equipment 16 16 15 1 93.8%


5

5 5

- 100.0%

14

14

Total 417,719 27,051 (2,499) 442,271 442,270 1 100.0% 73,776 73,724


126


2010/11 2009/10

Programme 5Detail per sub-pro-gramme

AdjustedAppro-

priation

Shifting of Funds

Vire-ment

FinalAppropria-

tion

ActualExpendi-

tureVariance

Expen-diture

as % of nal ap-propria-

tion

FinalAppropria-

tion

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

5.1 Energy Planning

Current payment 5,133 5,010

5.2 Hydro-carbons


Transfers and sub-sidies

5.3 Hydro-carbons and Energy Planning Manage-ment


Pay-ment for capital assets

702 771

Total 56,973 56,925


127

2010/11 2009/10

Programme 5 Per Econom-ic classi ca-

tion

AdjustedAppro-

priation

Shifting of Funds

VirementFinal

Appro-priation

ActualExpenditure

Vari-ance

Expendi-ture

as % of nal appro-

priation

FinalAppropria-

tion

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current pay-ments

Compensation of employees 40,357 40,311

Goods and services 15,903 15,833



702 771



11 10

Total 56,973 56,925


128


2010/11 2009/10

Programme 6Detail per sub-pro-gramme

AdjustedAppro-

priation


FinalAppro-

priation

ActualExpenditure Variance

Expendi-ture

as % of nal

appropria-tion

FinalAppro-

priation

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

6.1 Clean Energy


Trans-fers and subsi-dies

265,153 255,031

6.2 Elec-tricity


6.3 Elec-tric-ity and Nuclear Man-age-ment


6.4 Nuclear


Total 338,936 334,070


129

2010/11 2009/10

Programme 6 Per Eco-nomic clas-si cation

Adjust-ed

Appro-priation


FinalAppropria-

tion

ActualExpendi-

tureVariance

Expendi-ture

as % of nal

appropria-tion

FinalAppropria-

tion

Actualexpenditure

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Current pay-ments

Compen-sation of employees

37,440 37,437

Goods and services 36,323 41,583

Transfers and subsi-dies to:

Provinces and Munici-palities

175,000 175,000


90,153 80,031


20 19

Total 338,936 334,070


130


2010/11 2009/10


Ad-justedAppro-pria-tion

Shift-ing of Funds

Vire-ment

FinalAppro-priation

ActualEx-pendi-ture

Vari-ance

Expendi-tureas % of nal ap-

propria-tion

FinalAppro-priation

Actualexpendi-ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

7.1 Assistance to Mines

Transfers and subsidies 38,600 31,100

7.2 Council for Geoscience


7.3 Council for Mineral Technol-ogy

Trans fers and subsidies 161,108 161,108

7.4 Electricity Distribution Indus-try Holdings Company


7.5 National Electri cation Pro-gramme

Transfers and subsidies 2,633,272 2,517,157

7.6 National Nuclear Regulator



131

7.7 South African Diamond and Precious Metal Regulator


7.8 South African Nuclear Energy Corporation


Total 3,665,222 3,541,605

2010/11 2009/10


2010/11 2009/10

Programme 7 Per Eco-nomic clas-si cation

Ad-justedAppro-priation

Shift-ing of Funds

VirementFinalAppropria-tion

ActualExpendi-ture

Variance

Expendi-tureas % of nal ap-

propriation

FinalAppropriation

Actualexpendi-ture

R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000

Transfers and subsi-dies to:

Provinces and Munici-palities

932,957 899,553


285,698 285,696


2,446,567 2,356,356

Total 3,665,222 3,541,605

132


1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

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

the Annual Financial Statements.

2. Detail of speci cally and exclusively appropriated amounts voted (after Virement):

There were no speci cally and exclusively appropriated amounts voted (after Virement) as indicated in note 1 (Annual

Appropriation) to the Annual Financial Statements.

3. Detail on payments for nancial assets

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

Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

3.1 Per Programme Final Appropriation Actual Expenditure Variance R’000

Variance as a % of Final Appropriation

Programme 1: Administration 227,865 226,727 1,138 0.50

Programme 2: Promotion of Mine Safety and Health 137,095 137,092 3 0.00

Programme 3: Mineral Regulation 188,611 188,608 3 0.00

Programme 4: Mineral Policy and Promotion 442,271 442,270 1 0.00

Total 995,842 994,697 1,145 0.11

NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2011

3.2 Per Economic classi cation Final Appropriation Actual Expendi-ture Variance

Variance as a % of Final Appro-priation

R’000 R’000 R’000 R’000

Current payments

Compensation of employees 326,505 326,457 48 0,01

Goods and services 210,311 206,504 3,807 1,81


Departmental agencies and accounts 215,177 215,177 0 0,00

Public corporations and private enterprises 222,449 222,449 0 0,00

Households 1,155 494 661 57,23

133

Programme 1: Administration

The under-spending of R1.1 million under programme 1 relates to the procurement of goods and services in cases were orders were

placed but for which expenditure is pending due to delays in delivery, late receipt of invoices and consequent delay in processing

of payments. The item goods and services consequently re ects and under-spending of R3.8 million. The over-spending of R3.4

million under the item Payments for capital assets is due to of ce refurbishments that were conducted during the nancial year.

Programme 2: Promotion of Mine Health and Safety

Mine Health Safety Inspectorate budget is personnel driven due to the nature of inspections, monitoring, and reporting functions

performed. The programme disbursed R137 million which represents 100 percent of its total budget of R137 million. An amount of

R4.9 million was reallocated to other branches to cater for over expenditure.

Programme 3: Mineral Regulation

On the 31 March 2011 Mineral Regulation Branch disbursed R188.6 million which represents 100 percent of its total budget of R188.6

million. An amount of R6.2 million was reallocated to this branch from other branches to cater for higher than anticipated expenditure.

Programme 4: Mineral Policy and Promotion

Mineral Policy and Promotion Branch disbursed R442.2 million which represents 100 percent of its total budget of R442.2 million. An

amount of R2 million was reallocated to other branches for higher than anticipated expenditure.

NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2011

3.2 Per Economic classi cation Final Appropriation Actual Expendi-ture Variance

Variance as a % of Final Appro-priation


Buildings and other xed structures 7,610 17,059 (9,449) (124,17)

Machinery and equipment 11,303 5,367 5,936 52,52

Software and other intangible assets 1,281 1,140 141 11,01

Payments for nancial assets 51 50 1 1,96

Total 995,842 994,697 1,145 0,11

134


STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2011

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED31 MARCH 2011

PERFORMANCE Note 2010/11 2009/10R'000 R'000

REVENUE

Annual appropriation 1 995,842 4,682,004

Departmental revenue 2 30,302 217,144

TOTAL REVENUE 1,026,144 4,899,148

EXPENDITURE

Current expenditure

Compensation of employees 4 326,457 403,323

Goods and services 5 199,678 263,475

Aid assistance

Interest and rent on land

-

1,789

5,849

-

Total current expenditure 527,924 672,647


Transfers and subsidies 8 438,120 3,828,303

Total transfers and subsidies 438,120 3,828,303

Expenditure for capital assets

Tangible capital assets 9 27,463 47,384

Software and other intangible assets 9 1,140 1,306

Total expenditure for capital assets 28,603 48,690

Payments for nancial assets 7 50 925

TOTAL EXPENDITURE 994,697 4550,565

SURPLUS/(DEFICIT) FOR THE YEAR 31,447 348,583

Reconciliation of Net Surplus/(De cit) for the year

Voted funds 1,145 137,288

Departmental revenue and NRF Receipts 15 30,302 217,144

Aid assistance 3 - (5,849)

SURPLUS/(DEFICIT) FOR THE YEAR 31,447 348,583

3

6

135

POSITION Note 2010/11 2009/10 R'000 R'000ASSETSCurrent assets 58,196 212,761

Cash and cash equivalents 10 37,493 192,279

Prepayments and advances 11 40 5,902Receivables 12 20,663 14,580Non-current assets - 2,205Investments 13 - 2,205

TOTAL ASSETS 58,196 214,966LIABILITIESCurrent liabilities 57,144 211,699Voted funds to be surrendered to the Revenue Fund 14 1,145 137,288Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 15 2,482 74,344

Payables 16 53,517 4

Aid assistance unutilised 3 - 63

TOTAL LIABILITIES 57,144 211,699

1,052 3,267

NET ASSETS Note 2010/11 2009/10R'000 R'000

Represented by:Capitalisation reserve - 2,205Recoverable revenue 1,052 1,062TOTAL 1,052 3,267

NET ASSETS Note 2010/11 2009/10R'000 R'000

Capitalisation Reserves

Opening balance 2,205 2,205

Transfers:

Movement in Equity (2,205) -

Closing balance - 2,205Recoverable revenue

Opening balance 1,062 844

Transfers: (10) 218

Debts revised (10) 218

Closing balance 1,052 1,062

TOTAL 1,052 3,267

STATEMENT OF NET ASSETSfor the year ended 31 March 2011

STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2011

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED31 MARCH 2011

136


CASH FLOW Note 2010/11 2009/10R'000 R’000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts 1,026,144 4,899,148Annual appropriated funds received 1.1 995,842 4,682,004Departmental revenue received 2 30,302 217,144Net (increase)/decrease in working capital 53,292 28,316Surrendered to Revenue Fund (239,452) (312,063)Surrendered to RDP Fund/Donor (63) -Current payments (527,924) (672,647)Payments for nancial assets (50) (925)Transfers and subsidies paid (438,120) (3,828,303)Net cash ow available from operating activities 17 (126,173) 113,526

CASH FLOWS FROM INVESTING ACTIVITIESPayments for capital assets 9 (28,603) (48,690)(Increase)/decrease in investments 2,205 -Net cash ows from investing activities (26,398) (48,690)

CASH FLOWS FROM FINANCING ACTIVITIESIncrease/(decrease) in net assets (2,215) 218

Net cash ows from nancing activities (2,215) 218Net increase/(decrease) in cash and cash equivalents (154,786) 65,054

Cash and cash equivalents at beginning of period 192,279 127,225

Cash and cash equivalents at end of period 18 37,493 192,279

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2011

CASH FLOW STATEMENT for the year ended 31 March 2011

137

The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently

in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has

been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the

Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in

terms of the Act and the Division of Revenue Act, Act 1 of 2010.

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2011

1. Presentation of the Financial Statements1.1 Basis of preparation

The Financial Statements have been prepared on a modi ed cash basis of accounting, except where stated otherwise. The

modi ed cash basis constitutes the cash basis of accounting supplemented with additional disclosure items. Under the cash

basis of accounting transactions and other events are recognised when cash is received or paid.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the

department.

1.3 Rounding

Unless otherwise stated all nancial gures have been rounded to the nearest one thousand Rand (R’000).

1.4 Comparative gures

Prior period comparative information has been presented in the current year’s nancial statements. Where necessary gures

included in the prior period nancial statements have been reclassi ed to ensure that the format in which the information is

presented is consistent with the format of the current year’s nancial statements.

1.5 Comparative gures - Appropriation Statement

A comparison between actual amounts and nal appropriation per major classi cation of expenditure is included in the

Appropriation Statement.

2. Revenue2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory

appropriation).

Appropriated funds are recognised in the nancial records on the date the appropriation becomes effective. Adjustments

made in terms of the adjustments budget process are recognised in the nancial records on the date the adjustments

become effective.

Unexpended appropriated funds are surrendered to the National/Provincial Revenue Fund. Any amounts owing to the

National/Provincial Revenue Fund at the end of the nancial year are recognised as payable in the statement of nancial

position.

Any amount due from the National/Provincial Revenue Fund at the end of the nancial year is recognised as a receivable

in the statement of nancial position.

2.2 Departmental revenue

All departmental revenue is recognised in the statement of nancial performance when received and is subsequently paid

into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Fund is recognised as a payable in the statement of nancial position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are

however disclosed in the disclosure note to the annual nancial statements.

138



2.3 Direct Exchequer receipts

All direct exchequer receipts are recognised in the statement of nancial performance when the cash is received and is

subsequently paid into the National/Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the National/Provincial Revenue Funds at the end of the nancial year is recognised as a payable in

the statement of nancial position.

2.4 Direct Exchequer payments

All direct exchequer payments are recognised in the statement of nancial performance when nal authorisation for payment

is effected on the system (by no later than 31 March of each year).

2.5 Aid assistance

Aids assistance is recognised as revenue when received

All in-kind aid assistance is disclosed at fair value on the date of receipt in the annexures to the Annual Financial Statements

The cash payments made during the year relating to aid assistance projects are recognised as expenditure in the statement

of nancial performance when nal authorisation for payments is effected on the system (by no later than 31 March of each

year)

The value of the assistance expensed prior to the receipt of funds is recognised as a receivable in the statement of nancial

position.

Inappropriately expensed amounts using aid assistance and any unutilised amounts are recognised as payables in the

statement of nancial position.

All CARA funds received must be recorded as revenue when funds are received. The cash payments made during the year

relating to CARA earmarked projects are recognised as expenditure in the statement of nancial performance when nal

authorisation for payments effected on the system (by no later then 31 March of each year)

Inappropriately expensed amounts using CARA funds are recognised as payables in the statement of nancial position. Any

unutilised amounts are transferred to retained funds as they are not surrendered to the revenue fund.

3. Expenditure3.1 Compensation of employees

3.1.1 Salaries and wages

Salaries and wages are expensed in the statement of nancial performance when the nal authorisation for payment is

effected on the system (by no later than 31 March of each year).

Other employee bene ts that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to

the nancial statements at its face value and are not recognised in the statement of nancial performance or position.

Employee costs are capitalised to the cost of a capital project when an employee spends more than 50% of his/her time on

the project. These payments form part of expenditure for capital assets in the statement of nancial performance.

3.1.2 Social contributions

Employer contributions to post employment bene t plans in respect of current employees are expensed in the statement

of nancial performance when the nal authorisation for payment is effected on the system (by no later than 31 March of

each year).

No provision is made for retirement bene ts in the nancial statements of the department. Any potential liabilities are

disclosed in the nancial statements of the National Revenue Fund and not in the nancial statements of the employer

department.

139


Employer contributions made by the department for certain of its ex-employees (such as medical bene ts) are classi ed as

transfers to households in the statement of nancial performance.

3.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the statement of nancial

performance when the nal authorisation for payment is effected on the system (by no later than 31 March of each year).

The expense is classi ed as capital if the goods and/or services were acquired for a capital project or if the total purchase

price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classi ed as current.

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

3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of nancial performance when the nal

authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for

the use of buildings or other xed structures. If it is not possible to distinguish between payment for the use of land and the

xed structures on it, the whole amount should be recorded under goods and services.

3.4 Payments for nancial assets

Debts are written off when identi ed as irrecoverable. Debts written-off are limited to the amount of savings and/or under

spending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for

irrecoverable amounts but an estimate is included in the disclosure notes to the nancial statements amounts.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the nal authorisation for payment is effected on the system

(by no later than 31 March of each year).

3.6 Unauthorised expenditure

When con rmed unauthorised expenditure is recognised as an asset in the statement of nancial position until such time

as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as

irrecoverable in the statement of nancial performance.

Unauthorised expenditure approved with funding is derecognised from the statement of nancial position when the

unauthorised expenditure is approved and the related funds are received.

Where the amount is approved without funding it is recognised as expenditure in the statement of nancial performance on

the date of approval.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of nancial performance according to

the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable

it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of

nancial performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of nancial performance. If the expenditure is not

condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.

140


4. Assets4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of nancial position at cost.

Bank overdrafts are shown separately on the face of the statement of nancial position.

For the purposes of the cash ow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-

term highly liquid investments and bank overdrafts.

4.2 Other nancial assets

Other nancial assets are carried in the statement of nancial position at cost.

4.3 Prepayments and advances

Amounts prepaid or advanced are recognised in the statement of nancial position when the payments are made and are

derecognised as and when the goods/services are received or the funds are utilised.

Prepayments and advances outstanding at the end of the year are carried in the statement of nancial position at cost.

4.4 Receivables

Receivables included in the statement of nancial position arise from cash payments made that are recoverable from another

party (including departmental employees) and are derecognised upon recovery or write-off.

Receivables outstanding at year-end are carried in the statement of nancial position at cost plus any accrued interest.

Amounts that are potentials irrecoverable are included in the disclosure notes.

4.5 Investments

Capitalised investments are shown at cost in the statement of nancial position.

Investments are tested for an impairment loss whenever events or changes in circumstances indicate that the investment

may be impaired. Any impairment loss is included in the disclosure notes.

4.6 Loans

Loans are recognised in the statement of nancial position when the cash is paid to the bene ciary. Loans that are outstanding

at year-end are carried in the statement of nancial position at cost plus accrued interest.

Amounts that are potentially irrecoverable are included in the disclosure notes.

4.7 Inventory

Inventories that qualify for recognition must be initially re ected at cost. Where inventories are acquired at no cost, or for

nominal consideration, their cost shall be their fair value at the date of acquisition.

All inventory items at year-end are re ected using the weighted average cost or FIFO cost formula.

4.8 Capital assets

4.8.1 Movable assets

Initial recognition

A capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is de ned as the total cost of

acquisition. Where the cost cannot be determined accurately, the movable capital asset is stated at fair value. Where fair

value cannot be determined, the capital asset is included in the asset register at R1.

All assets acquired prior to 1 April 2002 are included in the register R1.


141


Subsequent recognition

Subsequent expenditure of a capital nature is recorded in the statement of nancial performance as “expenditure for capital

assets” and is capitalised in the asset register of the department on completion of the project.

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

4.8.2 Immovable assets

Initial recognition

A capital asset is recorded on receipt of the item at cost. Cost of an asset is de ned as the total cost of acquisition. Where

the cost cannot be determined accurately, the immovable capital asset is stated at R1 unless the fair value for the asset has

been reliably estimated.

Subsequent recognition

Work-in-progress of a capital nature is recorded in the statement of nancial performance as “expenditure for capital assets”.

On completion, the total cost of the project is included in the asset register of the department that is accountable for the

asset.

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

5. Liabilities5.1 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost

in the statement of nancial position.

5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the nancial statements when it is possible that economic

bene ts will ow from the department, or when an out ow of economic bene ts or service potential is probable but cannot

be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the nancial statements when it is probable that an in ow of

economic bene ts will ow to the entity.

5.4 Commitments

Commitments are not recognised in the statement of nancial position as a liability or as expenditure in the statement of

nancial performance but are included in the disclosure notes.

5.5 Accruals

Accruals are not recognised in the statement of nancial position as a liability or as expenditure in the statement of nancial

performance but are included in the disclosure notes.

5.6 Employee bene ts

Short-term employee bene ts that give rise to a present legal or constructive obligation are disclosed in the disclosure notes

to the nancial statements. These amounts are not recognised in the statement of nancial performance or the statement

of nancial position.

5.7 Lease commitments

Finance lease

Finance leases are not recognised as assets and liabilities in the statement of nancial position. Finance lease payments

are recognised as an expense in the statement of nancial performance and are apportioned between the capital and

142


interest portions. The nance lease liability is disclosed in the disclosure notes to the nancial statements.

Operating lease

Operating lease payments are recognised as an expense in the statement of nancial performance. The operating lease

commitments are disclosed in the disclosure notes to the nancial statement.

5.8 Impairment and other provisions

The department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An

assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made

for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments

are calculated as being the difference between the carrying amount and the present value of the expected future cash ows

/ service potential owing from the instrument.

Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic bene ts as a result of

events in the past and it is probable that an out ow of resources embodying economic bene ts will be required to settle the

obligation and a reliable estimate of the obligation can be made.

6. Receivables for departmental revenueReceivables for departmental revenue are disclosed in the disclosure notes to the annual nancial statements.

7. Net Assets7.1 Capitalisation reserve

The capitalisation reserve comprises of nancial assets and/or liabilities originating in a prior reporting period but which are

recognised in the statement of nancial position for the rst time in the current reporting period. Amounts are recognised in

the capitalisation reserves when identi ed in the current period and are transferred to the National/Provincial Revenue Fund

when the underlining asset is disposed and the related funds are received.

7.2 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous nancial year becomes recoverable

from a debtor in the current nancial year. Amounts are either transferred to the National/Provincial Revenue Fund when

recovered or are transferred to the statement of nancial performance when written-off.

8. Related party transactionsSpeci c information with regards to related party transactions is included in the disclosure notes.

9. Key management personnelCompensation paid to key management personnel including their family members where relevant, is included in the

disclosure notes.

10. Public private partnershipsA description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement

is included in the disclosure notes.


143


1. Annual Appropriation

1.1 Annual AppropriationIncluded are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments

(Voted funds):

2010/11 2009/10

FinalAppropriation

Actual FundsReceived

Funds notrequested/

not received

Appropriationreceived

Programmes R’000 R’000 R’000 R’000

Administration 227,865 226,727 - 250,216

Promotion of mine

health and safety137,095 137,092

-138,717

Mineral Regulation 188,611 188,608 - 158,164

442,271

-

-

-

442,270

-

-

-

-

-

-

73,776

56,973

3,665,222

Total 995,842 994,697 - 4,682,004

# No earmarked funds appropriated during this reporting period.

338,936


Hydrocarbons and Energy Planning

Electricity, Nuclear, and Clean Energy

Associated Services

-

144


2. Departmental revenue Note 2010/11 2009/10

R’000 R’000Tax revenue - -Sales of goods and services other than capital assets 2.1 2,167 5,512Fines, penalties and forfeits 2.2 531 382Interest, dividends and rent on land 2.3 26,978 210,791Transactions in nancial assets and liabilities 2.4 626 459Total revenue collected 30,302 217,144Departmental revenue collected 30,302 217,144

2.1 Sales of goods and services other than capital assets

2010/11 2009/10R’000 R’000

Sales of goods and services produced by the department2,159 5,485

Sales by market establishment 309 89

Administrative fees 1,353 5,063

Other sales 497 333

Sales of scrap, waste and other used current goods 8 27

Total 2,167 5,512

2.2 Fines, penalties and forfeits

Note 2010/11 2009/10R’000 R’000

Penalties 531 382

Total 531 382

2.3 Interest, dividends and rent on land

2010/11 2009/10R’000 R’000

Interest 170 515

Rent on land 26,808 210,276

Total 26,978 210,791

2.4 Transactions in nancial assets and liabilities2010/11 2009/10

R’000 R’000Receivables 382 254Other Receipts including Recoverable Revenue 244 205Total 626 459

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED31 MARCH 2011

145

3. Aid assistance

3.1 Aid assistance received in cash from RDP

Note 2010/11R’000

ForeignOpening Balance 63 5,912Expenditure - (5,849)

Current - (5,849)PrepaymentsSurrendered to the RDP (63)Closing Balance - 63

3.2 Total assistance

2010/11 2009/10 R’000 R’000

Opening Balance 63 5,912

Expenditure - (5,849)Current - (5,849)Surrendered / Transferred to retained funds (63) -

Closing Balance - 63

3.3 Analysis of balance

2010/11 R’000

Aid assistance unutilised - 63

RDP 63

Closing balance - 63

4. Compensation of employees4.1 Salaries and Wages

2010/11 R’000

Basic salary 217,268 259,530

Performance award 23,608 9,474

Service Based 1,074 1,325

Compensative/circumstantial 7,211 7,662

Periodic payments 187 1,526

Other non-pensionable allowances 36,311 76,950

Total 285,659 356,467

- (5,849)

2009/10R’000

2009/10R’000

2009/10R’000


146


4.2 Social contributions

Note 2010/11 2009/10

R’000 R’000

Employer contributions

Pension 28,875 33,503

Medical 11,868 13,294

Bargaining council 55 59

Total 40,798 46,856

Total compensation of employees 326,457 403,323

Average number of employees 1,076 1,272

5. Goods and services 2010/11 2009/10

R’000 R’000Administrative fees 2,894 3,126Advertising 1,661 2,829Assets less then R5,000 5.1 862 4,958Bursaries (employees) 2,118 2,148Catering 855 2,263Communication 11,181 19,874Computer services 5.2 19,602 11,712Consultants, contractors and agency/outsourced services 5.3 18,135 69,196Entertainment 176 16Audit cost – external 5.4 3,740 3,436Inventory 5.5 9,003 9,276Operating leases 64,147 34,231Owned and leasehold property expenditure 5.6 3,406 2,740Travel and subsistence 5.7 54,667 67,458Venues and facilities 2,282 5,454Training and staff development 1,790 7,325Other operating expenditure 5.8 3,159 17,433Total 199,678 263,475

5.1 Assets less than R5,000

Note 2010/11 2009/10R’000 R’000

Tangible assets 850 4,956

Machinery and equipment 850 4,956

Intangible assets 12 2

Total 862 4,958


147

5.2 Computer services2010/11 2009/10

R’000 R’000

SITA computer services 8,197 3,379

External computer service providers 11,405 8,333

Total 19,602 11,712

5.3 Consultants, contractors and agency/outsourced services

2010/11 2009/10R’000 R’000

Business and advisory services 6,522 32,166

Infrastructure and planning 5,835 18,665Legal costs 3,861 7,724Contractors 1,688 9,052Agency and support/outsourced services 229 1,589Total 18,135 69,196

5.4 Audit cost – External

2010/11 2009/10

R’000 R’000

Regularity audits 3,618 2,764

Performance audits 122 672

Total 3,740 3,436

5.5 Inventory

2010/11 2009/10

R’000 R’000Learning and teaching support material 29 280

Fuel, oil and gas 48 13

Other consumable materials 1,112 1,070

Maintenance material 3,545 408

Stationery and printing 4,269 7,502

Medical supplies - 3

Total 9,003 9,276


148


5.6 Property payments

2010/11 2009/10R’000 R’000

Municipal services 1,415 821

Other 1,991 1,919

Total 3,406 2,740

5.7 Travel and subsistence2010/11 2009/10

Local 47,171 57,872

Foreign 7,496 9,586

Total 54,667 67,458

5.8 Other operating expenditure

2010/11 2009/10R’000 R’000

Learnerships 8 -Professional bodies, membership and subscription fees 650 12,675Resettlement costs 1,609 2,350

Other 892 2,408

Total 3,159 17,433

6. Interest and Rent on Land2010/11 2009/10

R’000 R’000

Interest paid 1,789 -

Total 1,789 -

7. Payments for nancial assetsNote 2010/11 2009/10

R’000 R’000Other material losses written off 7.1 15 174

Debts written off 7.2 35 751Total 50 925


149

7.1 Other material losses written off2010/11 2009/10

R’000 R’000 Nature of losses

Government Garage and Car Rental accidents 15 174

Total 15 174

7.2 Debts written off

2010/11 2009/10R’000 R’000

Nature of debts written off Transfer to debts written off Other Debts 35 751

Total 35 751

7.3 Assets written off

2010/11 2009/10R’000 R’000

Nature of assets written off

Assets that could not be veri ed 2,070 -

Assets that could not be accounted for after the relocation 3,332 -

Assets that could not be moved ( xtures) 245 -Leased assets 46 -

Reported losses 146 -Total 5,839 -

8. Transfers and subsidies2010/11 2009/10

R’000 R’000Note

Provinces and municipalities - 1,074,553

Departmental agencies and accounts Annex 1A 215,177 291,814Public corporations and private enterprises Annex 1B 222,449 2,461,447

Households Annex 1C 494 489

Gifts, donations and sponsorships made - -

Total 438,120 3,828,303


150


9. Expenditure for capital assets 2010/11 2009/10

R’000 R’000Tangible assets 27,463 47,384Buildings and other xed structures 32.1 17,059 26,917Machinery and equipment 30.1 10,404 20,467

Software and other intangible assets 1,140 1,306

Computer software 31 1,140 1,306

Total 28,603 48,690

9.1 Analysis of funds utilised to acquire capital assets – 2010/11

Voted funds Aid assistance Total

R’000 R’000 R’000Tangible assets 27,463 - 27,463Buildings and other xed structures 17,059 - 17,059Machinery and equipment 10,404 - 10,404

Software and other intangible assets 1,140 - 1,140

Computer software 1,140 - 1,140

Total 28,603 - 28,603

9.2 Analysis of funds utilised to acquire capital assets – 2009/10

Voted funds Aid assistance TotalR’000 R’000 R’000

Tangible assets 47,384 - 47,384Buildings and other xed structures 26,917 - 26,917

Machinery and equipment 20,467 - 20,467

Software and other intangible assets 1,306 - 1,306

Computer software 1,306 - 1,306

Total 48,690 - 48,690


151

10. Cash and cash equivalentsNote 2010/11 2009/10

R’000 R’000

Consolidated Paymaster General Account 37,044 158,596Disbursements - (28)Cash on hand 71 100

Cash with commercial banks (Local) 378 33,611

Total 37,493 192,279

11. Prepayments and advances2010/11 2009/10

R’000 R’000Travel and subsistence 40 67

Advances paid to other entities - 5,835

Total 40 5,902

12. Receivables2010/11 2009/10

R’000 R’000 R’000 R’000 R’000

Less than one year

One to three years

Older than three years

Total Total

Claims recoverable3

9,410 - - 9,410

18

Recoverable expenditure 12.2 27 8,541 186 8,754 12,354

Staff debt 12.3 947 867 685 2,499 2,208

Total 10,384 9,408 871 20,663 14,580

12.1Annex

Note


152


12.1 Claims recoverableNote 2010/11 2009/10

R’000 R’000

National departments 9,410 18

Total 9,410 18

12.2 Recoverable expenditure (disallowance accounts)

2010/11 2009/10

R’000 R’000

Disallowance Damages and Losses

Sal: Recoverable

Sal: Tax Debt

Sal: Income Tax

Disallowance Miscellaneous

Salary: Deduction Disallowance Acc: CA

7,676

53

1,018

-

7

7,612

86

7

1,068

3,487

94

Total 8,754 12,354

12.3 Staff debt

2010/11 2009/10

R’000 R’000

Cell phones

Contract – State Guarantees

Disallowance

Study debt

Subsidised vehicle

Telephone

7

71

1,160

625

300

45

Total 2,499 2,208

28

68

1,430

369

492

112


153


13. Investments2010/11 2009/10

R’000 R’000Non-CurrentShares and other equity

Shares and other equity - 2,205

Total non-current - 2,205

Note 2010/11 2009/10R’000 R’000

Analysis of non current investments


Non-cash movements (2,205) -

Closing balance - 2,205

14. Voted funds to be surrendered to the Revenue Fund2010/11 2009/10

R’000 R’000


Transfer from statement of nancial performance 1,145 137,288

Paid during the year (137,288) (54,105)


15. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

2010/11 2009/10R’000 R’000


Transfer from Statement of Financial Performance 30,302 217,144Paid during the year (102,164) (257,958)


154


16. Payables – current2010/11

Total

2009/10

Total

Clearing accounts 16.1 2 4

Other payables 16.2 53,515 -

Total 53,517 4

16.1 Clearing accounts

Note 2010/11 2009/10

R’000 R’000

Description

Salary: Pension Funds

Salary: Medical Aid

1

1

4

Total 2 4

16.2 Other payables

2010/11 2009/10

R’000 R’000

Description

Disallowance Miscellaneous

Salary reversal control

53,481

34

-

-

Total 53,515 -


155


2010/11 2009/10

R’000 R’000

Net surplus/(de cit) as per Statement of Financial Performance31,447 348,583

Add back non cash/cash movements not deemed operating activities(157,620) (235,057)

(Increase)/decrease in receivables – current (6,083) 15,094

(Increase)/decrease in prepayments and advances 5,862 13,231

Increase/(decrease) in payables – current 53,513 (9)

Expenditure on capital assets 28,603 48,690

Surrenders to Revenue Fund (239,452) (312,063)

Surrenders to RDP Fund/Donor (63) -

Net cash ow generated by operating activities (126,173) 113,526

17. Net cash ow available from operating activities

18. Reconciliation of cash and cash equivalents for cash ow purposes2010/11 2009/10

R’000 R’000

Consolidated Paymaster General account37,044 158,596

Disbursements- (28)

Cash on hand 71 100

Cash with commercial banks (Local)378 33,611

Total 37,493 192,279

156


19. Contingent liabilities and contingent assets19.1 Contingent liabilities

Note 2010/11 2009/10

R’000 R’000

Liable to Nature

Motor vehicle guarantees Employees Annex 2A - 118

Housing loan guarantees Employees Annex 2A - 143

Other guarantees 38,937

Claims against the department Annex 2B #41,773 299,961

Other departments (interdepartmental uncon rmed balances) Annex 4 1,021 8,345

Other Annex 2B 31,520 19,970

Total 74,314 367,474

#Cases contained herein relate to claims for expropriation of mineral rights and claims for alleged underpayment of

contractual consideration for services rendered.

19.2 Contingent liabilities in respect of Rehabilitation of ownerless and derelict mines

Potential Liabilities in respect of the environmental rehabilitation comprises of two scenarios: potential liabilities arising from

derelict and ownerless mines, where no provision was made by the miner for the rehabilitation of the environment. The

responsibility for rehabilitation of these sites reverts to the state. During 2007/8, the department nalised the process of

quantifying the State’s potential liability for derelict and ownerless mines. Owing to the fact that it has not been possible to do

a detailed assessment of the environmental and safety conditions of all thousands of entries in the database of D&O Mines,

and also for the fact that it would not be practical to obtain a detailed cost estimate for rehabilitation of these mines, a number

of assumptions had to be made to enable the estimation of the rehabilitation costs. Potential alternatives to rehabilitation

such as:

• development of abandoned mines into tourist attractions,

• productive non-mining land use on mine sites,

• re-issuance of mining permit or rights etc,

were as well not explored and such developments on these mines may change the potential liability by the state and hence

the amount of this obligation could not be measured with suf cient reliability. The other scenario relates to potential liabilities

arising from the Miner’s inability to restore the environment back to its original state subsequent to mining activities – where

provision was made either through a trust fund, bank guarantees or cash guarantees.

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2011

157


20. CommitmentsNote 2010/11 2009/10

R’000 R’000Current expenditureApproved and contracted 70,728 40,525

70,728 40,525Capital expenditureApproved and contracted 2,784 58,477

2,784 58,477

Total Commitments 73,512 99,002

21. Accruals2010/11 2009/10

R’000 R’000

Listed by economic classi cation

30 Days 30+ Days Total Total

Goods and services 27,027 10,711 37,738 19,637

Interest and rent on land


Capital assets 385 - 385 400

Other

Total 27,412 10,711 38,123 20,037

Note 2010/11 2009/10R’000 R’000

Listed by programme level

Administration

Promotion of Mine Safety and Health

Mineral Regulation


Hydrocarbons and Energy Planning

Electricity, Nuclear and Clean Energy

34,449

491

1,780

1,403

-

-

17,112

1,880

55

894

59

37

Total 38,123 20,037

2010/11 2009/10R’000 R’000

Con rmed balances with other departments Annex 4 32,407 20,488

Total 32,407 20,488

158


22. Employee bene ts

Note 2010/11 2009/10

R’000 R’000

Leave entitlement 7,423 14,699

Service bonus (Thirteenth cheque) 8,564 10,543

Performance awards 4,898 5,934

Capped leave commitments 8,899 11,025

Total 29,784 42,201

23. Lease commitments23.1 Operating leases expenditure

Specialised military

equipment


Machinery and

equipment

Not later than 1 year 48,695 521 49,216

Later than 1 year and not later than 5

years 137,353

304

137,657

Total lease commitments 186,048 825 186,873


equipment


Machinery and

equipment

Not later than 1 year - 68,704 746 69,450

Later than 1 year and not later than 5

years

-

272,374 662 273,036

Total lease commitments 341,078 1,408 342,486

#the prior year gures for Building and other xed structures were restated.

An amount of R1, 234 million is owed to the department by employees in terms of 997.64 days taken without adequate leave credits.

2010/11

2010/11

Land

Land

Total

Total


159

Note 2010/11 2009/10

R’000 R’000

Rental earned on lease sub-leased assets 2 309 89

Total 309 89

23.2 Finance leases expenditure

2010/11


equipmentLand


Machinery and

equipmentTotal

Not later than 1 year - - - 9,846 9,846

Later than 1 year and not later

than 5 years - - - 23,469 23,469

Total lease commitments - - - 33,315 33,315

LESS: nance costs - - - 5,810 5,810

Total present value of lease liabilities

- - - 27,505 27,505

24. Receivables for departmental revenue

2010/11 2009/10

R’000 R’000

Interest, dividends and rent on land

Sales of capital assets

71,832

393

72,596

-

Total 72,225 72,596

#the prior year gures for Receivables for Departmental Revenue were restated.


160


24.1 Analysis of receivables for departmental revenue

Note 2010/11 2009/10

R’000 R’000

Opening balance

Less: amounts received

72,596

42,982

57,466

-

Add: amounts recognised 42,218 15,130


25. Irregular expenditure25.1 Reconciliation of irregular expenditure

2010/11 2009/10

R’000 R’000

Opening balance - -

Add: Irregular expenditure – relating to current year 7,974 4,203

Less: Amounts condoned

Less: Amounts recoverable (not condoned)

(619)

(131)

(4,203)

-

Irregular expenditure awaiting condonation 7,224 -


161

Incident Disciplinary steps taken/criminal proceedings2010/11

R’000

Approval not obtained prior delivery of goods/ service

Procurement procedures not followed

No sanction: Of cials resigned

Recovery

Under investigation

Awaiting condonation

Under investigation

191

428

131

398

3,701

3,125

Total 7,974

25.2 Details of irregular expenditure – current year


Warning

Restructuring of operating lease to nance lease




162


25.3 Details of irregular expenditure condoned

Incident Condoned by Accounting Of cer2010/11

R’000

Approval not obtained prior delivery of goods/

service

Approval not obtained prior delivery of goods/

service

Warning

No sanction: Of cials resigned

191

428

619

25.4 Details of irregular expenditure recoverable (not condoned)

Incident2010/11

R’000

Approval not obtained prior delivery of goods/ service 131

Total 131

25.5 Details of irregular expenditures under investigation

Incident2010/11

R’000Approval not obtained prior delivery of goods/ service

Restructuring of operating lease to nance lease

Procurement processes not followed *

398

3,125

3,701

Total 7,224

*This matter relates to an audit adjustment and has been referred to National Treasury for investigation.


163

26. Fruitless and wasteful expenditure26.1 Reconciliation of fruitless and wasteful expenditure

Note 2010/11 2009/10R’000 R’000

Opening balance

Fruitless and wasteful expenditure – relating to current year 4 -

Less: Amounts transferred to receivables for recovery (4) -

Fruitless and wasteful expenditure awaiting condonement -

26.2 Analysis of Current year’s fruitless and wasteful expenditure

IncidentDisciplinary steps taken/

criminal proceedings

2010/11

R’000

No Show Cost Amount recovered from of cials 4

Total 4

27. Related party transactionsPayments made 2010/11 2009/10

R’000 R’000

Transfers 62,671 17,600

Total 62,671 17,600

Entity Nature of Relationship Type of Transaction

Amount Transferred

R’000

MintekAn entity under the control of

MinisterMine rehabilitation projects 30,000

Council for GeoscienceAn entity under the control of

MinisterGrootvlei mine 15,000

Council for GeoscienceAn entity under the control of

MinisterWitwatersrand water ingress project 17,671


164


28. Key management personnel

No. of Individuals 2010/11 2009/10

R’000 R’000

Political of ce bearers

Of cials: 2 2,427 -

Level 15 to 16 7 6,798 6,038

Level 14 (incl. CFO if at a lower level) 18 14,393 27,339

Total 23,618 33,377

29. Impairment and other provisionsNote 2010/11 2009/10

R’000 R’000

Other provisions

Debtors 685 394

Interest, Dividends, Rent on Land 35,596

-

36108

-Total 36,281 36,502

#the prior year gures for Other Provisions were restated.

30. Movable Tangible Capital AssetsMOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance

Curr Year Adjust-ments to prior year

balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 52,472 -992 5,815 (27,840) 29,455

Transport assets 1,990 - - (790) 1,200

Computer equipment 26,949 78 3,490 (12,989) 17,528

Furniture and of ce equipment 20,743 (1,396) 2,307 (12,547) 9,107

Other machinery and equipment 2,790 326 18 (1,514) 1,620

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

52,472 -992 5,815 (27,840) 29,455


165

30.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Cash Non-cash (Capital Work in Progress

current costs and nance

lease payments)

Received current, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 10,404 25 -5,037 423 5,815

Computer equipment 6,279 25

-

-

-3,179 365

52

6

3,490

Furniture and of ce equipment 4,113 -1,858 2,307

Other machinery and equipment 12 - 18

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

10,404 25 -5,037 423 5,815

30.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Sold for cash Transfer out or destroyed or

scrapped

Total disposals

Cash Received

ActualR’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 5,524 22,316 27,840

Transport assets - 790 790

Computer equipment - 12,989 12,989

Furniture and of ce equipment 5,524 7,023 12,547

Other machinery and equipment 1,514 1,514TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS

5,524 22,316 27,840

# The assets were sold but no payment received


166


30.3 Movement for 2009/10

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance

Additions Disposals Closing balance

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 33,664 20,621 (1,813) 52,472

Transport assets - 1,990 - 1,990

Computer equipment 18,932 9,128 (1,111) 26,949

Furniture and of ce equipment 14,699 6,746 (702) 20,743

Other machinery and equipment 33 2,757 - 2,790

TOTAL MOVABLE TANGIBLE ASSETS 33,664 20,621 (1,813) 52,472

30.4 Minor assets

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2011Specialised

military assetsIntangible assets Heritage assets Machinery and

equipmentBiological

assetsTotal

R’000 R’000 R’000 R’000 R’000 R’000

21,621

2,328

815

(11,839)

21,621

2,328

815

(11,839)

Opening Bal-

ance

Current Year

Adjustments to

Prior Year Bal-

ances

Additions

Disposals

TOTAL 12,925 12,925


167

MINOR ASSETS OF THE DEPARTMENT AS AT 31 MARCH 2010Specialised

military assetsIntangible

assetsHeritage

assetsMachinery

and equipment

Biological assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Minor assets - - - 21,621 - 21,621

TOTAL - - - 21,621 - 21,621

31. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance Current Year Adjust-ments to prior year

balances


R’000 R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 6,733 - 1,140 (2,622) 5,251

OTHER INTANGIBLES 199 - - - 199

TOTAL INTANGIBLE CAPITAL ASSETS

6,932 - 1,140 (2,622) 5,450

31.1 Additions

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

31 MARCH 2011Cash Non-Cash (Develop-

ment work in progress –

current costs)

Received current

year, not paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 1,140 - - - 1,140TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS

1,140 - - - 1,140


168


31.2 Disposals

DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Sold for cash Transfer out or destroyed or

scrapped

Total disposals

Cash Received

Actual

COMPUTER SOFTWARE - #2,622 2,622

TOTAL DISPOSALS OF INTANGIBLE CAPITAL ASSETS

- 2,622 2,622 -

# This gure represents intangible assets that were acquired in support of the functions of Department of Energy.


MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance Additions Disposals Closing balance

R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 5,427 1,306 - 6,733

OTHER INTANGIBLES 199 - - 199

TOTAL INTANGIBLE CAPITAL ASSETS 5,626 1,306 - 6,932

32. Immovable Tangible Capital AssetsMOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Opening balance Curr Year Adjust-ments to prior year

balances


R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 2,829 - 43,980 - 46,809

Other xed structures 2,829 43,980 - 46,809

LAND AND SUBSOIL ASSETS 228 - - (228) -

Land 228 - - (228) -

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 3,057 - 43,980 (228) 46,809


169

32.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Cash Non-cash (Capital Work in

Progress current

costs and nance

lease payments)

Received current, not

paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES

17,059 26,921 - - 43,980

Other xed structures 17,059 26,921 - - 43,980

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS

17,059 26,921 - - 43,980

32.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2011

Sold for

cash

Transfer out or destroyed or

scrapped

Total disposals Cash Received Actual

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

- - -

Other xed structures - 228 228

TOTAL DISPOSALS OF IM-MOVABLE TANGIBLE CAPITAL ASSETS

- 228 228


170



MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2010

Opening balance

Additions Disposals Closing balance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES-

2,829-

2,829

Other xed structures - 2,829 - 2,829

LAND AND SUBSOIL ASSETS 228 - - 228

Land 228 - - 228

Mineral and similar non-regenerative resources - - - -

TOTAL IMMOVABLE TANGIBLE ASSETS 228 2,829 - 3,057

33. Transfer of functionsThe split of the erstwhile Department of Minerals and Energy has resulted in the transfer to certain functions from the DMR To The

Department Of Energy. The Affected Functions Are:

Hydrocarbons, Energy Planning and Cleaning programme – transfer to Department of Energy since 01 April 2010


- Promoting sustainable use of energy resources through integrated energy planning, developing policies and regulations

and

- Managing petroleum, coal and natural gas sectors

Electricity, Nuclear and Clean Energy Programme – transferred to Department of Energy since 01 April 2010


- Developing, implementing and monitoring electricity policies and programs

- Improving the governance of the nuclear sector, speci cally in relation to nuclear safety, nuclear non-proliferation and

nuclear technology.

- Lastly, facilitating the implementation of renewal energy, energy ef cient technology as well as regulating and promoting the

clean development mechanism activities.


171

33.1 Statement of Financial Position

Note

Bal per dept 2009/10

AFS before transfer

Functions per dept

transferred) / received

Functions per dept


Functions per dept

(transferred) / received

2009/10 Bal after transfer

2009/10 2009/10 2009/10 2009/10 2009/10

R’000 R’000 R’000 R’000 R’000

ASSETS

Current Assets 212,761 (6) (4,037) (218) 208,500

Cash and cash equivalents 192,279 - - - 192,279

Other nancial assets - - - - -

Prepayments and advances 5,902 - - - 5,902

Receivables 14,580 (6) (4,037) (218) 10,319

Non-Current Assets 2,205 (2,205) - - -

Investments 2,205 (2,205) - - -

TOTAL ASSETS 214,966 (2,211) (4037) (218) 208,500

LIABILITIES

Current Liabilities 211,699 211,699

Voted funds to be surrendered to the

Revenue Fund137,288 - - - 137,288

Departmental revenue and NRF

Receipts to be surrendered to the

Revenue Fund

74,344 - - - 74,344

Direct Exchequer receipts to be

surrendered to the Revenue Fund- - - - -

Bank Overdraft - - - - -

Payables 4 - - - 4

Aid assistance repayable - - - - -

Aid assistance unutilised 63 - - - 63

Non-Current Liabilities - - - - -

Payables - - - - -

TOTAL LIABILITIES 211,699 - - - 211,699

NET ASSETS 3,267 (2,210) (4,037) (218) (3,198)


172


33.2 Disclosure Notes

Note

Bal per dept 2009/10

AFS before transfer

Functions per dept


Functions per dept


Functions per dept

(transferred) / received

2009/10 Bal after transfer

2009/10 2009/10 2009/10 2009/10 2009/10

R’000 R’000 R’000 R’000 R’000

Contingent liabilities 367,474 (41,544) - - 325,930

Contingent assets 5,900 (5,900) - -

Commitments 99,002 (69,004) - - 29,998

Accruals 20,067 (243) - - 19,824

Employee bene ts 42,201 (10,551) - - 31,650

Lease commitments – Operating lease 368,526 (126,886) - - 241,640

Lease commitments – Operating lease

revenue89 - - - 89

Receivables for departmental revenue 25,567 - - - 25,567

Movable tangible capital assets 74,093 (16,822) - - 57,271

Immovable tangible capital assets 3,057 (724) - - 2,333

Intangible capital assets 6932 (2,622) - - 4,310


173

33.3 Action taken to ensure compliance with PFMA s42 The inventory lists of all the assets and liabilities were drawn up and les and substantiating records as per the provision

of section 42 of the PFMA. Owing to the need to verify physical assets in all the various regions by both departments, this

process was nalised in May 2011. It should be noted that Auditor-General (SA) audited all other aspects of the transfer,

except the part of the assets.

Subsequent to the split of Department of Minerals and Energy (DME), the Department of Mineral Resources assumed the role

of a transferring department and drew up a Memorandum of Agreement (MoA) for splitting the assets and liabilities of the DME

as set out in section 42 of the Public Finance Management Act. The Financial Accounting and Reporting guide on Transfer

of functions issued by National Treasury during 2010 was followed as well as the MoA both Accounting Of cers signed during

the transition period (2009/10 nancial year) was taken into account. The MoA was presented to the Department of Energy

and discussions were held in order to agree on the entire inventory list. The DMR Accounting Of cer has since signed the nal

MoA and it has been sent to Department of Energy.

DISCLOSURE NOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2011


174


ANNEXURE 1ASTATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENT/ AGENCY/ ACCOUNT

TRANSFER ALLOCATION TRANSFER 2009/10

Adjusted

Appro-priation

RollOvers

Adjust-ments

TotalAvailable

ActualTransfer

% ofAvailable

fundsTransferred Appro-

priation Act

R'000 R'000 R'000 R'000 R'000 % R'000

Council For

Geoscience136,505 32,671 169,176 169,176 100% 150,277

National Nuclear

Regulator

Electricity Distri-

bution Industry

Mine Health and

Safety Council

South African

Diamond and

Precious Metals

Regulator

State Diamond

Trader

-

-

5,358

40,643

-

-

-

5,358

40,643

-

-

-

5,358

40,643

100%

100%

23,793

72,214

5,118

39,414

1,000

182,506 - 32,671 215,177 215,177 291,816

ANNEXURES NOTES TO THE ANNUAL FINANCIAL STATEMENTSFOR THE YEARENDED31 MARCH 2011

175


ANNEXURE 1BSTATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES

NAME OF PUBLICCORPO-RATION/PRIVATE ENTER-PRISE

TRANSFER ALLOCATION EXPENDITURE 2009/10

Adjusted

Appro-priation

ActRoll

OversAdjust-ments

TotalAvailable

ActualTransfer

% ofAvailable

fundsTrans-ferred Capi-

talCur-rent

Appro-priation

Act

R'000 R'000 R'000 R'000 R'000 % R'000 R'000 R'000

Public Cor-porations

Transfers

Eskom

South Afri-can Nuclear Energy Corporation

Council for Mineral Technology

Industrial Develop-ment Cor-poration

Mining Companies

-

-

195,840

23,609

35,671

(32,671)

-

-

195,840

23,609

3,000

-

-

195,840

23,609

3,000

100%

100%

100%

1,616,315

564,144

161,108

25,058

-

Total 255,120 - (32,671) 222,449 222,449 - - 2,366,625

176


Private En-terprisesTransfers

Eskom

Solar Vision

(Pty) Ltd

74,475

1,290

Subsidies

East Rand

Proprietary

Mines

Grootvlei

Proprietary

Mines

Ethekwini

Municipality

21,000

310

5,247

Total - - - - - - - 102,322

TOTAL 255,120 - (32,671) 222,449 222,449 - - 2,468,947


177

ANNEXURE 1CSTATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS

TRANSFER ALLOCATION EXPENDITURE 2009/10

Adjusted Ap-

propriationAct

RollOvers

Adjust-ments

TotalAvailable

ActualTransfer

% ofAvailable

fundsTransferred

Appro-priation

Act

R'000 R'000 R'000 R'000 R'000 % R'000

Transfers

H/H: Employee

Bene ts

H/H: Claims

against the

state

H/H: Donations

& Gifts

471

3

20

471

3

20

471

3

20

100%

100%

100%

1,284

-

-

Total 494 - - 494 494 1,284


178


ANNEXURE 1DSTATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

NAME OF ORGANISATION

NATURE OF GIFT, DONATION OR SPONSORSHIP2010/11 2009/10

R’000 R’000

Received in cash - -

Subtotal - -

Received in kind

Xstrata

Sekoko Mining (Pty) Ltd

Youth Day Event

Soccer Kit

-

-

70

2

Department of Sports

and RecreationAssistive Device System 39

Subtotal 39 72

TOTAL 39 72


179

ANNEXURE 1ESTATEMENT OF AID ASSISTANCE RECEIVED

NAME OF DONOR PURPOSE OPENING CLOSING

BALANCE REVENUEEXPENDI-

TUREBALANCE

R'000 R'000 R'000 R'000

Received in cash

Danish Government Cabaree (REFSO) Support63 - 63

Subtotal 63 - 63

TOTAL 63 - 63


180


ANNEXURE 1FSTATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AND REMMISSIONS, REFUNDS AND PAYMENTS MADE AS AN ACT OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP

(Group major categories but list material items including name of organisation

2010/11 2009/10

R’000 R’000

Made in kind

Donation: Venues and Facilities for Mr Rocha Farewell

Donations made to Institutions under the auspices of the Department of Education(Western Cape North West and Free State)

Furniture and Of ce Equipment

Donations made to Unemployed Against Poverty Organisation in Mbizana (Computers)

Donation to Department of Basic Education

Furnisher and of ce equipment

Computers

-

-

30

1,027

1,039

2

Subtotal 1,057 1,052

Remissions, refunds, and payments made as an act of grace

Payments made as an act of grace to households

Payments made as an act of grace

20

19

25

51

Subtotal 39 76

TOTAL 1,096 1,128

11-


181

ANNEXURE 2ASTATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2011 – LOCAL

Guaran-tor

institu-tion

Guaran-tee in

respect of

Originalguaranteed

capitalamount

Opening balance

1 April 2010

Guaran-tees

draw downs

during the

year

Guaranteesrepay-ments/

cancelled/ reduced/ released

during the year

Revalua-tions

Closing balance

31 March 2011

Guar-anteed

interest for year

ended 31

March 2011

Realisedlosses

not recover-able i.e. claims

paid out

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000

Stannic

Motor vehicles

Motor

vehicles

320 48 48 - - - -

Subtotal 320 48 - 48 - - - -

Ithala

Old

Mutual

Standard

Bank

Housing

Housing

Housing

Housing

11

22

33

11

22

33

11

22

33

-

-

-

Subtotal 66 66 - 66 - - -

TOTAL 386 114 - 114 - - - -


182


ANNEXURE 2BSTATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2011

Nature of Liability

Liabilities

incurred during the

year

Liabilities paid/

cancelled/reduced

during the year

Liabilities recoverable

(Provide details

hereunder)

Opening Closing

Balance Balance

1 April 201031 March

2011

R’000 R’000 R’000 R’000 R’000

Claims against the department 299,961 41,772 (297,888) (2,072) 41,773

Subtotal 299,961 41,772 (297,888) (2,072) 41,773

Other

Simrac Contracts 19,970 11,550 31,520

Subtotal 19,970 11,550 - - 31,520

TOTAL 319,931 53,322 (297,888) (2,072) 73,293


183

ANNEXURE 3CLAIMS RECOVERABLE

Government Entity

Con rmed balance outstand-ing

Uncon rmed balance outstand-ing

Total

31/03/2011 31/03/2010 31/03/2011 31/03/2010 31/03/2011 31/03/2010

R’000 R’000 R’000 R’000 R’000 R’000

Department

-

546

1

10

8

17

Department of Agricul-ture (Pietermaritzburg)

Department of Educa-tion (Gauteng)

Department of Public, Works, Roads and Transport (Mmabatho)

Department of Energy

Mine Health & Safety Council

Government Communi-cations

Department of Water Affairs

South African Police Services

Department of Health and Social Develop-ment (Limpopo)

Gauteng Provincial Government

1

10

8

17

57

10

-

-

-

Total 546 9,410 36 67 582

57

15

20

8,994

314

10

546 -

-

-

-


184


ANNEXURE 4INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY

Con rmed balance outstanding

Uncon rmed balance outstanding

TOTAL

31/03/2011 31/03/2010 31/03/2011 31/03/2010 31/03/2011 31/03/2010

R’000 R’000 R’000 R’000 R’000 R’000

DEPARTMENTS

Current

Department of Justice

Department of Public Works

Department of Public Service

& Administration

Department of Energy

Parliament of South Africa

Government Motor Transport

(Western Cape)

Of ce of the premier (Kwa-

Zulu Natal)

Of ce of the premier (Northern

Cape)

Department of Public

Transport, Roads & Works

Of ce of the presidency

1,547

30,442

-

-

-

-

Total 32,407 20,488 1,021 8,345 33,428 28,833

788

5,298

394

24

394

24

46 46

2,100 2,100

77 77

1,021

2

20,488

1,547

30,442

788

25,786

34

1,021

34

2


185


ANNEXURE 5INVENTORY

InventoryNote Quantity 2010/11 Quantity 2009/10

R’000 R’000

Opening balance 72,769 3,493 91,105 856

Add/(Less): Adjustments to prior

year balance(7) (10) - -

Add: Additions/Purchases - Cash 125,963 3,756 372,262 8,940

Add: Additions - Non-cash 35,942 - 7,311 -

(Less): Disposals (26,417) (296) - -

(Less): Issues (100,209) (3,186) (372,434) 9,172

Add/(Less): Adjustments (1,160) (47) - -

Closing balance 106,881 3,710 98,244 624


186


HR OVERSIGHT - APRIL 2010 TO MARCH 2011

1. Expenditure

TABLE 1.1 - Personnel Costs by Programme

Programme Total Voted Expenditure (R'000)

Compensation of Employees Expenditure (R'000)

Training Expenditure (R'000)

Professional and Special Services (R'000)

Compensation of Employees as percentage of Total Expenditure

Average Compensation of Employees Cost per Employee (R'000)

Employment

Administration 227,514 90,745 1,681 4,862 39.9 84 1031

Mineral Policy and Promotion 442,269 34,755 92 1,339 7.9 32 1031

Mineral Regulation 187,706 98,395 11 - 52.4 91 1031

Promotion of Mine Safety and Health

137,093 102,561 5 320 74.8 95 1031

Total as on Financial Systems (BAS)

994,582 326,456 1,789 6,521 32.8 303 1031

TABLE 1.2 - Personnel Costs by Salary Band

Salary BandsCompensation of Employees Cost (R'000)

Percentage of Total Personnel Cost for Department

Average Compensation Cost per Employee (R)

Total personnel cost for Department including goods and transfers (R'000)

Number of Employees

Skilled (Levels 3-5) 31,734 4.6 145,569 347,520 218

Highly skilled production (Levels 6-8) 56,780 16.3 211,078 347,520 269

Highly skilled supervision (Levels 9-12) 152,952 44 406,787 347,520 376

Senior management (Levels 13-16) 55,692 16 762,904 347,520 73

Contract (Levels 1-2) 1,679 0.5 37,311 347,520 45

Contract (Levels 3-5) 4,693 1.4 195,542 347,520 24

Contract (Levels 6-8) 4,525 1.3 238,158 347,520 19

Contract (Levels 9-12) 14,185 4.1 289,490 347,520 49

Contract (Levels 13-16) 1,839 0.5 613,000 347,520 3

Periodical Remuneration 173 0 2,836 347,520 61

Abnormal Appointment 2,427 0.7 15,863 347,520 153

TOTAL 326,679 94 253,240 347,520 1290

HR OVERSIGHT

187


HR OVERSIGHT

TABLE 1.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme

Programme Salaries (R'000)

Salaries as % of Personnel Cost

Overtime (R'000)

Overtime as % of Personnel Cost

HOA (R'000)

HOA as % of Person-nel Cost

Medical Ass. (R'000)

Medical Ass. as % of Personnel Cost

Total Personnel Cost per Programme (R'000)

Administration 58081 64 2641 2.9 2637 2.9 3654 4 90745

Promotion of Mine

Health and Safety 69087 67.4 40 0 1856 1.8 2754 2.7 102561

Mineral Regulation 66534 67.6 842 0.9 2444 2.5 4220 4.3 98395

Mineral Policy and

Promotion23566 67.8 167 0.5 1128 3.2 1241 3.6 34755

TOTAL 217268 66.6 3690 1.1 8065 2.5 11869 3.6 326456

TABLE 1.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band

Salary bands Salaries (R'000)

Salaries as % of Personnel Cost

Overtime (R'000)

Overtime as % of Personnel Cost

HOA (R'000)

HOA as % of Personnel Cost

Medical Ass. (R'000)

Medical Ass. as % of Personnel Cost

Total Personnel Cost per Salary Band (R'000)

Skilled (Levels 3-5) 20817 64.4 947 2.9 1781 5.5 2835 8.8 32307

Highly skilled production (Levels 6-8)

39951 68.4 1052 1.8 1859 3.2 3253 5.6 58448

Highly skilled supervision (Levels 9-12)

114686 69.6 869 0.5 2549 1.5 4290 2.6 164673

Senior management (Levels 13-16)

44696 75.2 0 0 1491 2.5 850 1.4 59445

Contract (Levels 1-2) 1641 85.7 8 0.4 6 0.3 0 0 1914

Contract (Levels 3-5) 3094 65.3 653 13.8 219 4.6 177 3.7 4737

Contract (Levels 6-8) 3438 72 195 4.1 94 2 110 2.3 4776

Contract (Levels 9-12) 11962 72.4 17 0.1 119 0.7 290 1.8 16527

Contract (Levels 13-16) 1601 83.7 0 0 0 0 0 0 1912

Periodical Remuneration 0 0 0 0 0 0 0 0 333

Abnormal Appointment 2275 93 0 0 0 0 0 0 2447

TOTAL 244161 70.3 3741 1.1 8118 2.3 11805 3.4 347519

188


HR OVERSIGHT

TABLE 2.2 - Employment and Vacancies by Salary Band at end of period

Salary Band Number of Posts

Number of Posts Filled Vacancy Rate

Number of Posts Filled Additional to the Establishment

Skilled (Levels 3-5), permanent 269 218 19 8

Highly skilled production (Levels 6-8), permanent 322 269 16.5 14

Highly skilled supervision (Levels 9-12), permanent 476 375 21.2 7

Highly skilled supervision (Levels 9-12), temporary 1 1 0 0

Senior management (Levels 13-16), permanent 89 72 19.1 0

Senior management (Levels 13-16), temporary 1 1 0 1

Contract (Levels 3-5), permanent 24 24 0 21




TOTAL 1253 1031 17.7 68

2. EmploymentTABLE 2.1 - Employment and Vacancies by Programme at end of period

Programme Number of Posts Number of Posts Filled Vacancy Rate

Number of Posts Filled Additional to the Establishment

Mineral Policy and Promotion, permanent 133 117 12 6

Mineral Regulation, permanent 370 331 10.5 6

Programme 1 Admin, permanent 433 334 22.9 45

Programme 1 Admin, temporary 1 1 0 1

Promotion of Mine Safety and Health, permanent 315 247 21.6 10

Promotion of Mine Safety and Health, temporary 1 1 0 0

TOTAL 1253 1031 17.7 68

189


HR OVERSIGHT

TABLE 2.3 - Employment and Vacancies by Critical Occupation at end of period

Critical Occupations Number of Posts

Number of Posts Filled Vacancy Rate

Number of Posts Filled Ad-ditional to the Establishment

Administrative related, permanent 127 101 20.5 6

Administrative related, temporary 1 1 0 1

Biologists, botanists, zoologists and related professional, permanent 79 77 2.5 1

Cartographers and surveyors, permanent 3 2 33.3 0

Cleaners in of ces workshops hospitals etc., permanent 16 15 6.3 0

Client info clerks(switchboard, reception, info clerks), permanent 12 11 8.3 0

Communication and information related, permanent 11 8 27.3 0

Economists, permanent 48 43 10.4 0

Engineering sciences related, permanent 5 2 60 0

Finance and economics related, permanent 13 11 15.4 0

Financial and related professionals, permanent 28 25 10.7 10

Financial clerks and credit controllers, permanent 19 14 26.3 4

Food services aids and waiters, permanent 4 3 25 0

Head of department/chief executive of cer, permanent 1 1 0 0

Human resources and organisational dev and related prof, permanent 34 26 23.5 0

Human resources clerks, permanent 24 18 25 11

Human resources related, permanent 5 4 20 0

Information technology related, permanent 12 6 50 0

Language practitioners interpreters and other comm, permanent 5 3 40 0

Legal related, permanent 8 5 37.5 0

Librarians and related professionals, permanent 3 3 0 0

Library mail and related clerks, permanent 61 53 13.1 7

Logistical support personnel, permanent 15 14 6.7 0

Material-recording and transport clerks, permanent 39 27 30.8 2

Messengers porters and deliverers, permanent 12 12 0 0

Other administration and related clerks and organisers, permanent 102 91 10.8 7

Other administrative policy and related of cers, permanent 68 60 11.8 0

Other information technology personnel, permanent 19 14 26.3 1

Other machine operators, permanent 2 2 0 0

Other occupations, permanent 15 7 53.3 5

Risk management and security services, permanent 14 5 64.3 0

Safety health and quality inspectors, permanent 204 153 25 7

Safety health and quality inspectors, temporary 1 1 0 0

Secretaries and other keyboard operating clerks, permanent 91 79 13.2 4

Security of cers, permanent 51 49 3.9 1

Senior managers, permanent 82 67 18.3 1

Trade/industry advisers and other related profession, permanent 19 18 5.3 0

TOTAL 1253 1031 17.7 68

190


HR OVERSIGHT

3. EVALUATION

TABLE 3.1 - Job Evaluation

Salary Band Number of Posts

Number of Jobs Evaluated

% of Posts Evaluated

Number of Posts Upgraded

% of Upgraded Posts Evaluated

Number of Posts Downgraded

% of Downgraded Posts Evaluated

Contract (Levels 3-5) 24 1 4.2 0 0 0 0

Contract (Levels 6-8) 19 1 5.3 2 200 0 0

Contract (Levels 9-12) 49 0 0 0 0 0 0

Contract (Band A) 1 0 0 0 0 0 0

Contract (Band B) 2 0 0 0 0 0 0

Skilled (Levels 3-5) 269 115 42.8 5 4.3 0 0

Highly skilled production (Levels 6-8) 322 109 33.9 12 11 1 0.9

Highly skilled supervision (Levels 9-12) 477 152 31.9 0 0 0 0

Senior Management Service Band A 60 26 43.3 1 3.8 0 0

Senior Management Service Band B 21 4 19 0 0 0 0

Senior Management Service Band C 6 3 50 0 0 0 0

Senior Management Service Band D 3 0 0 0 0 0 0

TOTAL 1253 411 32.8 20 4.9 1 0.2

TABLE 3.2 - Pro le of employees whose positions were upgraded due to their posts being upgraded

Bene ciaries African Asian Coloured White Total

Female 40 0 6 2 48

Male 10 0 0 0 10

TOTAL 50 0 6 2 58

Employees with a Disability 0 0 0 0 0

TABLE 3.3 - Employees whose salary level exceed the grade determined by Job Evaluation [i.t.o. PSR 1.V.C.3]

Occupation Number of Employees

Job Evaluation Level

Remuneration Level

Reason for Deviation

No of Employees in Dept

Financial clerks and credit controllers 1 6 8 Retention 14

Logistical support personnel 1 8 9 Retention 14

TOTAL 2 28

Percentage of Total Employment 0.1 0

191


HR OVERSIGHT

TABLE 3.4 - Pro le of employees whose salary level exceeded the grade determined by job evaluation [i.t.o. PSR 1.V.C.3]

Bene ciaries African Asian Coloured White Total

Female 2 0 0 0 2

Male 0 0 0 0 0

TOTAL 2 0 0 0 2

Employees with a Disability 0 0 0 0 0

TABLE 4.1 - Annual Turnover Rates by Salary Band

4. Employee Changes

Salary Band

Employment at Beginning of Period (April 2010)

*Appointments *Terminations Turnover Rate

Skilled (Levels 3-5), permanent 213 28 22 10.3

Highly skilled production (Levels 6-8), permanent 254 20 36 14.2

Highly skilled supervision (Levels 9-12), permanent 376 16 38 10.1

Highly skilled supervision (Levels 9-12), temporary 1 0 8 800

Senior Management Service Band A, permanent 53 2 6 11.3

Senior Management Service Band B, permanent 13 0 3 23.1

Senior Management Service Band B, temporary 1 0 1 100

Senior Management Service Band C, permanent 2 1 1 50

Senior Management Service Band D, permanent 2 1 0 0



Contract (Levels 6-8), permanent 19 22 9 47.4

Contract (Levels 9-12), permanent 44 17 4 9.1

Contract (Band A), permanent 0 1 0 0

Contract (Band B), permanent 2 1 0 0

TOTAL 1020 136 162 15.9

192


HR OVERSIGHT

TABLE 4.2 - Annual Turnover Rates by Critical Occupation

Occupation


*Appoint-ments

*Termi-nations

Turnover Rate

Administrative related, permanent 99 7 16 16.2

Administrative related, temporary 1 0 0 0

Agriculture, animal, oceanography, forestry and other sciences, permanent 3 0 0 0

Biologists botanists zoologists and related prof, permanent 69 5 0 0

Cartographers and surveyors, permanent 2 0 0 0

Cleaners in of ces workshops hospitals etc., permanent 17 0 4 23.5

Client info clerks(switchboard, reception, info clerks), permanent 11 3 1 9.1

Communication and information related, permanent 10 1 0 0

Economists, permanent 39 4 4 10.3

Engineering sciences related, permanent 2 1 0 0

Finance and economics related, permanent 7 0 0 0

Financial and related professionals, permanent 11 20 1 9.1

Financial clerks and credit controllers, permanent 17 10 9 52.9

Food services aids and waiters, permanent 1 1 0 0

General legal administration and rel. professionals, permanent 3 0 0 0

Head of department/chief executive of cer, permanent 1 0 0 0

Human resources and organisational dev and related prof, permanent 27 1 5 18.5

Human resources clerks, permanent 20 2 6 30

Information technology related, permanent 6 0 4 66.7

Language practitioners interpreters and other comm, permanent 5 0 0 0

Legal related, permanent 3 0 0 0

Librarians and related professionals, permanent 3 0 0 0

Library mail and related clerks, permanent 56 8 3 5.4

Logistical support personnel, permanent 8 0 0 0

Material-recording and transport clerks, permanent 25 3 3 12

Messengers porters and deliverers, permanent 11 1 2 18.2

Other administration and related clerks and organisers, permanent 87 8 12 13.8

Other administrative policy and related of cers, permanent 60 6 20 33.3

Other information technology personnel, permanent 15 3 0 0

Other machine operators, permanent 2 0 0 0

Other occupations, permanent 1 21 0 0

Risk management and security services, permanent 12 0 0 0

Safety health and quality inspectors, permanent 167 13 27 16.2

Safety health and quality inspectors, temporary 1 0 0 0

Secretaries and other keyboard operating clerks, permanent 73 12 5 6.8

Security of cers, permanent 67 1 30 44.8

Senior managers, permanent 60 3 8 13.3

Senior managers, temporary 0 0 1 0

Trade/industry advisers and other related profession, permanent 18 2 1 5.6

TOTAL 1020 136 162 15.9

*Inclusive of transfers in out of the Department

193


HR OVERSIGHT

TABLE 4.3 - Reasons why staff are leaving the department

Termination Type NumberPercentage of Total Resignations

Percentage of Total Employment

Total Total Employment

Death, permanent 8 4.9 0.8 162 1020

Resignation, permanent 50 30.9 4.9 162 1020

Expiry of contract, permanent 36 22.2 3.5 162 1020

Expiry of contract, temporary 1 0.6 0.1 162 1020

Transfers, permanent 50 30.9 4.9 162 1020

Discharged due to ill health, permanent 2 1.2 0.2 162 1020

Dismissal-misconduct, permanent 4 2.5 0.4 162 1020

Retirement, permanent 11 6.8 1.1 162 1020

TOTAL 162 100 15.9 162 1020

Resignations as % of Employment

5%

CategoryNo of applications received

No of applications referred to the MPSA

No of applications supported by MPSA

No of Packages approved by department

Lower Skilled (Salary Level 1-2) 0 0 0 0

Skilled (Salary Level 3-5) 0 0 0 0

Highly Skilled Production (Salary Level 6-8) 0 0 0 0

Highly Skilled Production (Salary Level 9-12) 0 0 0 0

Senior Management (Salary Level 13 and higher) 0 0 0 0

TOTAL 0 0 0 0

TABLE 4.4 - Granting of Employee Initiated Severance Packages

194


HR OVERSIGHT

Occupation


Promotions to another Salary Level

Salary Level Promotions as a % of Employment

Progressions to another Notch within Salary Level

Notch progressions as a % of Employment

Administrative related 100 15 15 53 53

Agriculture, animal, oceanography forestry and other sciences 3 0 0 1 33.3

Biologists botanists zoologists and related prof 69 4 5.8 40 58

Cartographers and surveyors 2 0 0 2 100

Cleaners in of ces workshops hospitals etc. 17 0 0 16 94.1

Client inform clerks(switchboard, reception info clerks) 11 0 0 8 72.7

Communication and information related 10 0 0 5 50

Economists 39 7 17.9 15 38.5

Engineering sciences related 2 0 0 1 50

Finance and economics related 7 2 28.6 6 85.7

Financial and related professionals 11 7 63.6 5 45.5

Financial clerks and credit controllers 17 4 23.5 8 47.1

Food services aids and waiters 1 0 0 1 100

General legal administration and related professionals 3 0 0 1 33.3

Head of department/chief executive of cer 1 1 100 0 0

Human resources and organisational dev and related prof 27 2 7.4 20 74.1

Human resources clerks 20 4 20 9 45

Information technology related 6 0 0 3 50

Language practitioners interpreters and other communication 5 0 0 2 40

Legal related 3 0 0 0 0

Librarians and related professionals 3 0 0 2 66.7

Library mail and related clerks 56 0 0 36 64.3

Logistical support personnel 8 7 87.5 5 62.5

Material-recording and transport clerks 25 3 12 14 56

Messengers porters and deliverers 11 0 0 8 72.7

Other administrative and related clerks and organisers 87 7 8 48 55.2

Other administrative policy and related of cers 60 7 11.7 29 48.3

Other information technology personnel 15 2 13.3 4 26.7

Other machine operators 2 0 0 1 50

Other occupations 1 1 100 0 0

Risk management and security services 12 0 0 4 33.3

Safety health and quality inspectors 168 7 4.2 80 47.6

Secretaries and other keyboard operating clerks 73 2 2.7 37 50.7

Security of cers 67 2 3 37 55.2

Senior managers 60 2 3.3 36 60

Trade/industry advisers and other related profession 18 1 5.6 12 66.7

TOTAL 1020 87 8.5 549 53.8

TABLE 4.5 - Promotions by Critical Occupation

195


HR OVERSIGHT

TABLE 4.6 - Promotions by Salary Band

Salary Band


Promotions to another Salary Level

Salary Level Promotions as a % of Employment

Progressions to another Notch within Salary Level

Notch progressions as a % of Employment

Skilled (Levels 3-5), permanent 213 9 4.2 197 92.5

Highly skilled production (Levels 6-8), permanent 254 21 8.3 117 46.1

Highly skilled supervision (Levels 9-12), permanent 376 46 12.2 184 48.9

Highly skilled supervision (Levels 9-12), temporary 1 0 0 1 100

Senior management (Levels 13-16), permanent 70 5 7.1 38 54.3

Senior management (Levels 13-16), temporary 1 0 0 0 0

Contract (Levels 3-5), permanent 40 0 0 0 0

Contract (Levels 6-8), permanent 19 2 10.5 2 10.5

Contract (Levels 9-12), permanent 44 4 9.1 9 20.5

Contract (Levels 13-16), permanent 2 0 0 1 50

TOTAL 1020 87 8.5 549 53.8

5. Employment EquityTABLE 5.1 - Total number of Employees (incl. Employees with disabilities) per Occupational Category (SASCO)

Male Female

TotalOccupational

CategoriesAfrican

Colour-

edIndian

Total

BlacksWhite African

Colour-

edIndian

Total

BlacksWhite

Legislators, senior of cials and managers, permanent

32 1 0 33 9 20 0 0 20 1 63

Professionals, permanent 102 0 2 104 10 121 1 0 122 9 245

Technicians and associate professionals, permanent

153 3 0 156 57 102 4 0 106 10 329

Technicians and associate professionals, temporary

0 0 0 0 2 0 0 0 0 0 2

Clerks, permanent 79 3 0 82 2 176 16 0 192 26 302

Service and sales workers, permanent

31 2 0 33 4 14 0 0 14 1 52

Plant and machine operators and assemblers, permanent

1 0 0 1 0 0 0 0 0 0 1

196


Male FemaleTotalAfri-

canColour-

ed Indian Total Blacks White African Colour-

ed Indian Total Blacks White

Employ-ees with disabili-ties

3 0 0 3 2 1 0 0 1 0 6

Elementary occupations, permanent

17 1 0 18 0 18 0 0 18 0 36

Other, permanent 1 0 0 1 0 0 0 0 0 0 1

TOTAL 416 10 2 428 84 451 21 0 472 47 1031

HR OVERSIGHT

197


TAB

LE 5

.2 -

Tota

l num

ber o

f Em

ploy

ees

(incl

. Em

ploy

ees

with

dis

abili

ties)

per

Occ

upat

iona

l Ban

ds

Occ

upat

iona

l Ban

dsM

ale,

A

fric

anM

ale,

C

olou

red

Mal

e,

Indi

an

Mal

e,

Tota

l B

lack

s

Mal

e,

Whi

teFe

mal

e,

Afr

ican

Fem

ale,

C

olou

red

Fem

ale,

In

dian

Fem

ale,

To

tal

Bla

cks

Fem

ale,

W

hite

Tota

l

Top

Man

agem

ent,

perm

anen

t 4

00

40

30

03

07

Sen

ior M

anag

emen

t, pe

rman

ent

311

032

923

00

231

65

Sen

ior M

anag

emen

t, te

mpo

rary

0

00

01

00

00

01

Pro

fess

iona

lly q

uali

ed

and

expe

rienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t, pe

rman

ent

162

32

167

5513

62

013

815

375

Pro

fess

iona

lly q

uali

ed

and

expe

rienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t, te

mpo

rary

0

00

01

00

00

01

Ski

lled

tech

nica

l and

aca

dem

ical

ly

qual

i ed

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s, fo

rem

en, p

erm

anen

t 77

30

804

146

100

156

2926

9

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g, P

erm

anen

t 84

30

874

117

70

124

221

7

Uns

kille

d an

d de

ned

dec

isio

n m

akin

g,

perm

anen

t 1

00

10

00

00

01

Con

tract

(Sen

ior M

anag

emen

t),

perm

anen

t 3

00

30

00

00

03

Con

tract

(Pro

fess

iona

lly q

uali

ed)

, pe

rman

ent

320

032

106

10

70

49

Con

tract

(Ski

lled

tech

nica

l), p

erm

anen

t 9

00

90

100

010

019

Con

tract

(Sem

i-ski

lled)

, per

man

ent

130

013

010

10

110

24

TOTA

L41

610

242

884

451

210

472

4710

31

HR OVERSIGHT

198


HR OVERSIGHT

TAB

LE 5

.3 -

Rec

ruitm

ent

Mal

eFe

mal

eTo

tal

Occ

upat

iona

l Ban

dsA

fric

anC

olou

red

Indi

anT o

tal

Bla

cks

Whi

teA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

te

Top

Man

agem

ent,

perm

anen

t 1

00

10

10

01

02

Sen

ior M

anag

emen

t, pe

rman

ent

30

03

03

00

30

6

Pro

fess

iona

lly q

uali

ed

and

expe

rienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t, pe

rman

ent

130

013

011

00

111

25

Ski

lled

tech

nica

l and

aca

dem

ical

ly q

uali

ed

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s,

fore

men

, per

man

ent

200

020

417

10

170

42

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g, p

erm

anen

t 11

00

112

100

010

10

Uns

kille

d an

d de

ned

dec

isio

n m

akin

g,

perm

anen

t 0

00

00

00

00

00

Con

tract

(Sen

ior M

anag

emen

t), p

erm

anen

t 1

00

10

00

00

01

Con

tract

(Pro

fess

iona

lly q

uali

ed)

, pe

rman

ent

60

06

30

10

00

10

Con

tract

(Ski

lled

tech

nica

l), p

erm

anen

t 5

00

50

50

05

010

Con

tract

(Sem

i-ski

lled)

, per

man

ent

100

010

05

10

50

16

Con

tract

(Uns

kille

d), p

erm

anen

t 0

00

00

00

00

00

TOTA

L70

00

709

523

052

213

6

Mal

eFe

mal

e

Tota

lA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

teA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

te

Empl

oyee

s w

ith

disa

bilit

ies

10

01

00

00

00

1

199


HR OVERSIGHT

TAB

LE 5

.4 -

Prom

otio

ns

Mal

eFe

mal

eTo

tal

Occ

upat

iona

l Ban

dsA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

teA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

te

Top

Man

agem

ent,

perm

anen

t 1

00

10

00

00

01

Sen

ior M

anag

emen

t, pe

rman

ent

10

01

03

00

30

4

Pro

fess

iona

lly q

uali

ed

and

expe

rienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t, pe

rman

ent

241

024

219

00

190

46

Ski

lled

tech

nica

l and

aca

dem

ical

ly q

uali

ed

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s,

fore

men

, per

man

ent

70

07

013

10

140

21

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g, p

erm

anen

t 3

00

30

60

06

09

Con

tract

(Pro

fess

iona

lly q

uali

ed)

, pe

rman

ent

40

04

00

00

00

4

Con

tract

(Ski

lled

Pro

fess

iona

l), p

erm

anen

t1

00

10

10

01

02

TOTA

L41

10

412

421

043

087

Mal

eFe

mal

eTo

tal

Afr

ican

Col

oure

dIn

dian

Tota

l B

lack

sW

hite

Afr

ican

Col

oure

dIn

dian

Tota

l B

lack

sW

hite

Em

ploy

ees

with

dis

abili

ties

20

02

21

00

10

5

200


TAB

LE 5

.5 -

Term

inat

ions

Mal

eFe

mal

eTo

tal

Occ

upat

iona

l Ban

dsA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

teA

fric

anC

olou

red

Indi

anTo

tal

Bla

cks

Whi

te

Top

Man

agem

ent,

perm

anen

t 1

00

10

00

00

01

Sen

ior M

anag

emen

t, pe

rman

ent

41

14

12

00

20

9

Pro

fess

iona

lly q

uali

ed

and

expe

rienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t, pe

rman

ent

190

019

189

00

90

46

Pro

fess

iona

lly q

uali

ed

and

expe

rienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t, te

mpo

rary

0

00

00

00

00

00

Ski

lled

tech

nica

l and

aca

dem

ical

ly

qual

i ed

wor

kers

, jun

ior m

anag

emen

t, su

perv

isor

s, fo

rem

en, p

erm

anen

t 10

01

100

150

015

127

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g, p

erm

anen

t 13

00

130

110

111

429

Uns

kille

d an

d de

ned

dec

isio

n m

akin

g,

perm

anen

t 0

00

00

00

00

00

Con

tract

(Sen

ior M

anag

emen

t),

perm

anen

t 1

00

10

00

00

01

Con

tract

(Pro

fess

iona

lly q

uali

ed)

, pe

rman

ent

50

05

20

00

00

7

Con

tract

(Ski

lled

tech

nica

l), p

erm

anen

t 0

00

00

10

01

01

Con

tract

(Sem

i-ski

lled)

, per

man

ent

220

022

019

00

190

41

Con

tract

(Uns

kille

d), p

erm

anen

t 0

00

00

00

00

00

TOTA

L75

12

7521

570

157

516

2

HR OVERSIGHT

201


Mal

eFe

mal

e

Tota

lN

ot A

vaila

ble

Dis

cipl

inar

y ac

tion

Afri

can

Col

oure

dIn

dian

Tota

l B

lack

sW

hite

Afri

can

Col

oure

dIn

dian

Tota

l B

lack

sW

hite

TOTA

L2

00

22

10

01

05

0

Tabl

e 5.

6 - D

isci

plin

ary

Act

ion

HR OVERSIGHT

TAB

LE 5

.7 -

Skill

s D

evel

opm

ent

Mal

eFe

mal

e

Tota

lO

ccup

atio

nal C

ateg

orie

sA

frica

nC

olou

red

Indi

anT o

tal

Bla

cks

Whi

teA

frica

nC

olou

red

Indi

anTo

tal

Bla

cks

Whi

te

Legi

slat

ors,

Sen

ior O

f ci

als

and

Man

ager

s 10

00

101

20

02

114

Pro

fess

iona

ls

400

141

641

00

412

90

Tech

nici

ans

and

Ass

ocia

te P

rofe

ssio

nals

13

00

130

160

016

029

Cle

rks

230

023

043

30

460

69

Ser

vice

and

Sal

es W

orke

rs

00

00

00

00

00

0

Ski

lled

Agr

icul

ture

and

Fis

hery

Wor

kers

0

00

00

00

00

00

Cra

ft an

d re

late

d Tr

ades

Wor

kers

0

00

00

00

00

00

Pla

nt a

nd M

achi

ne O

pera

tors

and

A

ssem

bler

s 0

00

00

00

00

00

Ele

men

tary

Occ

upat

ions

23

00

230

160

016

039

TOTA

L 10

90

111

07

118

30

121

324

1

Em

ploy

ees

with

dis

abili

ties

00

00

00

00

00

0

202


6. PERFORMANCE

TABLE 6.1 - Performance Rewards by Race, Gender and Disability

Demographics Number of Bene ciaries

Total Employment


Cost (R'000)Average Cost per Bene ciary (R)

African, Female 255 450 56.7 2,591 10,161

African, Male 202 413 48.9 2,788 13,802

Asian, Female 1 0 0 9 9,000

Asian, Male 1 2 50 22 22,000

Coloured, Female 15 21 71.4 108 7,200

Coloured, Male 7 10 70 70 10,000

Total Blacks, Female 271 471 57.5 2,708 9,993

Total Blacks, Male 210 425 49.4 2,880 13,714

White, Female 43 47 91.5 420 9,767

White, Male 67 82 81.7 1,605 23,955

Employees with a disability 5 6 83.3 69 13,800

TOTAL 591 1031 57.3 7,613 12,882

TABLE6.2 - Performance Rewards by Salary Band for Personnel below Senior Management Service

Salary Band Number of Bene ciaries

Total Employment


Cost (R'000) Average Cost per Bene ciary (R)

Skilled (Levels 3-5) 160 218 73.4 699 4,369

Highly skilled production (Levels 6-8) 157 269 58.4 1,121 7,140

Highly skilled supervision (Levels 9-12) 238 376 63.3 4,504 18,924

Contract (Levels 3-5) 0 24 0 0 0

Contract (Levels 6-8) 0 19 0 0 0

Contract (Levels 9-12) 9 49 18.4 184 20,444

Periodical Remuneration 0 61 0 0 0

Abnormal Appointment 0 153 0 0 0

TOTAL 564 1169 48.2 6,508 11,539

HR OVERSIGHT

203


HR OVERSIGHT

TABLE 6.3 - Performance Rewards by Critical Occupation

Critical Occupations Number of Bene ciaries

Total Employment



Administrative related 63 102 61.8 1,076 17,079

Agriculture, animal, oceanography forestry and other sciences 1 2 50 8 8,000

Biologists botanists zoologists and related prof 36 76 47.4 575 15,972

Cartographers and surveyors 2 2 100 17 8,500

Cleaners in of ces workshops hospitals etc. 16 16 100 56 3,500

Client inform clerks(switchboard, reception info clerks) 8 11 72.7 33 4,125

Communication and information related 6 8 75 98 16,333

Economists 20 42 47.6 417 20,850

Engineering sciences related 2 3 66.7 44 22,000

Finance and economics related 6 9 66.7 152 25,333

Financial and related professionals 8 24 33.3 100 12,500

Financial clerks and credit controllers 8 17 47.1 48 6,000

Food services aids and waiters 1 3 33.3 3 3,000

General legal administration and related professionals 2 3 66.7 34 17,000

Head of department/chief executive of cer 1 2 50 92 92,000

Human resources and organisational dev and related prof 20 29 69 234 11,700

Human resources clerks 7 20 35 40 5,714

Information technology related 5 6 83.3 71 14,200

Language practitioners interpreters and other communication 3 3 100 21 7.000

Legal related 1 3 33.3 23 23,000

Librarians and related professionals 1 3 33.3 5 5,000

Library mail and related clerks 37 56 66.1 169 4,568

Logistical support personnel 5 14 35.7 40 8,000

Material-recording and transport clerks 16 24 66.7 80 5,000

Messengers porters and deliverers 8 12 66.7 30 3,750

Natural sciences related 0 1 0 0 0

Other administrative and related clerks and organisers 68 93 73.1 402 5,912

Other administrative policy and related of cers 27 60 45 276 10,222

204


Other information technology personnel 6 14 42.9 51 8,500

Other machine operators 2 1 200 7 3,500

Other occupations 0 7 0 0 0

Rank: Unknown 0 1 0 0 0

Risk management and security services 4 5 80 39 9,750

Safety health and quality inspectors 83 154 53,9 1,760 21,205

Secretaries and other keyboard operating clerks 41 81 50,6 250 6,098

Security of cers 40 47 85,1 181 4,525

Senior managers 25 59 42,4 981 39,240

Trade/industry advisers and other related profession 12 18 66,7 190 15,833

TOTAL 591 1031 57,3 7,603 12,865

Critical Occupations Number of Bene ciaries

Total Employment



TABLE 6.4 - Performance Related Rewards (Cash Bonus) by Salary Band for Senior Management Service

SMS Band Number of Bene ciaries

Total Employment


Cost (R'000)

Average Cost per Bene ciary (R)

% of SMS Wage Bill

Personnel Cost SMS (R'000)

Band A 20 53 37.7 768 3,840 2 38,367

Band B 6 16 37.5 246 4,100 1.5 16,275

Band C 0 4 0 0 0 0 2,520

Band D 1 3 33.3 92 9,200 2.2 4,195

TOTAL 27 76 35.5 1,106 4,096 1.8 61,357

HR OVERSIGHT

205


HR OVERSIGHT

7. Foreign Workers

TABLE 7.1 - Foreign Workers by Salary Band

Salary Band

Employ-ment at Beginning Period

Percent-age of Total

Employ-ment at End of Period


Change in Em-ployment


Total Em-ployment at Begin-ning of Period

Total Em-ployment at End of Period

Total Change in Employ-ment

Highly skilled s u p e r v i s i o n (Levels 9-12)

1 100 1 50 0 0 1 2 1

Periodical Re-muneration 0 0 1 50 1 100 1 2 1

TOTAL 1 100 2 100 1 100 1 2 1

TABLE 7.2 - Foreign Workers by Major Occupation

Major Occupation

Employ-ment at Begin-ning Period

Per-cent-age of Total

Employ-ment at End of Period

Per-centage of Total

Change in Em-ployment


Total Em-ployment at Begin-ning of Period

Total Employ-ment at End of Period

Total Change in Em-ployment

Other occupations 0 0 1 50 1 100 1 2 1

Technicians and asso-ciated professionals 1 100 1 50 0 0 1 2 1

TOTAL 1 100 2 100 1 100 1 2 1

206


8. LeaveTABLE 8.1 - Sick Leave for Jan 2010 to Dec 2010

Salary Band Total Days% Days with Medical Certi cation

Number of Employees using Sick Leave

% of Total Employees using Sick Leave

Average Days per Employee

Estimated Cost (R'000)

Total number of Employees using Sick Leave

Total number of days with medical certi cation

Skilled (Levels 3-5) 1182 84.7 165 24.1 7 433 686 1001

Highly skilled production (Levels 6-8) 1447 82.5 200 29.2 7 912 686 1194

Highly skilled supervision (Levels 9-12) 1469 81.4 229 33.4 6 2,396 686 1196

Senior management (Levels 13-16) 281 89 43 6.3 7 1,010 686 250

Contract (Levels 1-2) 0 0 0 0 0 - 686 0

Contract (Levels 3-5) 81 71.6 18 2.6 5 27 686 58

Contract (Levels 6-8) 31 93.5 8 1.2 4 22 686 29

Contract (Levels 9-12) 100 99 21 3.1 5 110 686 99

Contract (Levels 13-16) 33 97 2 0.3 17 54 686 32

TOTAL 4624 83.5 686 100 7 4,964 686 3859

TABLE 8.2 - Disability Leave (Temporary and Permanent) for Jan 2010 to Dec 2010

Salary Band Total Days% Days with Medical Certi cation

Number of Employees using Disability Leave

% of Total Employees using Disability Leave

Average Days per Employee

Estimated Cost (R'000)

Total number of days with medical certi cation

Total number of Employees using Disability Leave

Skilled (Levels 3-5) 77 100 1 20 77 22 77 5

Highly skilled production (Levels 6-8) 17 100 1 20 17 9 17 5

Highly skilled supervision (Levels 9-12) 18 0 1 20 18 20 18 5

Senior Management (Level 14) 145 100 1 20 145 191 145 5

Contract(levels 9-12) 4 100 1 20 4 6 4 5

TOTAL 261 100 5 100 52 248 261 5

HR OVERSIGHT

207


HR OVERSIGHT

TABLE 8.3 - Annual Leave for Jan 2010 to Dec 2010

Salary Band Total Days Taken Average days per Employee

Number of Employees who took leave

Skilled (Levels 3-5) 3491 16 225

Highly skilled production (Levels 6-8) 4115 16 250

Highly skilled supervision (Levels 9-12) 6731 20 338

Senior management (Levels 13-16) 1190 16 75

Contract (Levels 1-2) 0 0 0





TOTAL 16,604 17 979

TABLE 8.4 - Capped Leave for Jan 2010 to Dec 2010

Total days of capped leave taken

Average number of days taken per employee

Average capped leave per employee as at 31 December 2010

Number of Employees who took Capped leave

Total number of capped leave available at 31 December 2010

Number of Employees as at 31 December 2010

Skilled (Levels 3-5) 27 4 25 7 1093 44

Highly skilled production (Levels 6-8) 52 10 16 5 1133 72

Highly skilled supervision (Levels 9-12) 119 7 40 16 4048 101

Senior management (Levels 13-16) 26 5 44 5 1319 30

*TOTAL 224 7 31 33 7593 247

*Inclusive of of cials from the Department of Energy

208


TABLE 8.5 - Leave Payouts

ReasonTotal Amount (R'000)

Number of Employees

Average Payment per Employee (R)

Leave payout for 2010/11 due to non-utilisation of leave for the previous cycle 322 18 17889

Capped leave payouts on termination of service for 2010/11 1,020 67 15224

Current leave payout on termination of service for 2010/11 643 57 11281

TOTAL 1985 142 13979

9. HIV

TABLE 9.1 - Steps taken to reduce the risk of occupational exposure

Units/categories of employees identi ed to be at high risk of contracting HIV and related diseases (if any) Key steps taken to reduce the risk

xxx xxx

xxx xxx

HR OVERSIGHT

209


HR OVERSIGHT

TAB

LE 9

.2 -

Det

ails

of H

ealth

Pro

mot

ion

and

HIV

/AID

S Pr

ogra

mm

es [t

ick

Yes/

No

and

prov

ide

requ

ired

info

rmat

ion]

Que

stio

nYe

sN

oD

etai

ls, i

f yes

1. H

as th

e de

partm

ent d

esig

nate

d a

mem

ber o

f th

e S

MS

to im

plem

ent t

he p

rovi

sion

s co

ntai

ned

in P

art V

I E o

f Cha

pter

1 o

f the

Pub

lic S

ervi

ce

Reg

ulat

ions

, 200

1? If

so,

pro

vide

her

/his

nam

e an

d po

sitio

n.

N

o

2. D

oes

the

depa

rtmen

t hav

e a

dedi

cate

d un

it or

ha

ve y

ou d

esig

nate

d sp

eci

c st

aff m

embe

rs to

pr

omot

e he

alth

and

wel

l bei

ng o

f you

r em

ploy

ees

z z

z

? If

so,

indi

cate

the

num

ber o

f em

ploy

ees

who

are

invo

lved

in th

is ta

sk a

nd th

e an

nual

bu

dget

that

is a

vaila

ble

for t

his

purp

ose.

Yes

2

Ass

ista

nt D

irect

ors

and

1 E

mpl

oyee

Wel

lnes

s P

ract

ition

er re

porti

ng u

nder

E

mpl

oym

ent R

elat

ions

. Th

ere

is n

o an

nual

bud

get s

peci

cal

ly a

lloca

ted

for t

he

prog

ram

me,

the

prog

ram

me

is u

tilis

ing

the

annu

al b

udge

t of E

mpl

oym

ent R

elat

ions

3. H

as th

e de

partm

ent i

ntro

duce

d an

Em

ploy

ee

Ass

ista

nce

or H

ealth

Pro

mot

ion

Pro

gram

me

for

your

em

ploy

ees?

If s

o, in

dica

te th

e ke

y el

emen

ts/

serv

ices

of t

he p

rogr

amm

e.

Yes

Ser

vice

s pr

ovid

ed b

y E

WP

:

Cou

nsel

ling

serv

ices

(Tra

uma,

Deb

rie n

g, C

risis

Man

agem

ent,

Wor

k-1.

re

late

d an

d P

erso

nal P

robl

ems)

Hea

lth a

nd P

rodu

ctiv

ity M

anag

emen

t (pr

even

tion,

inte

rven

tion,

aw

aren

ess,

2.

ed

ucat

ion,

risk

ass

essm

ent a

nd s

uppo

rt )

Wel

lnes

s M

anag

emen

t (ph

ysic

al, s

ocia

l, em

otio

nal,

spiri

tual

and

inte

llect

ual

3.

wel

lnes

s of

em

ploy

ees)

HIV

and

Aid

s an

d TB

Man

agem

ent (

prev

entio

n, tr

eatm

ent,

care

and

4.

su

ppor

t, hu

man

and

lega

l rig

hts)

SH

ER

Q M

anag

emen

t (oc

cupa

tiona

l hyg

iene

, spe

cial

faci

litie

s, li

ghtin

g,

5.

vent

ilatio

n, s

anita

tion

and

risk

asse

ssm

ent).

We

have

out

sour

ced

an

EA

P se

rvic

e pr

ovid

er w

hich

pro

vide

cou

nsel

ling

for t

he E

mpl

oyee

s an

d th

eir i

mm

edia

te fa

mili

es a

nd a

lso

refe

r the

m if

nec

essa

ry to

the

rele

vant

in

stitu

tion

210


4. H

as th

e de

partm

ent e

stab

lishe

d (a

) co

mm

ittee

(s) a

s co

ntem

plat

ed in

Par

t VI E

.5 (e

) of

Cha

pter

1 o

f the

Pub

lic S

ervi

ce R

egul

atio

ns,

2001

? If

so, p

leas

e pr

ovid

e th

e na

mes

of t

he

mem

bers

of t

he c

omm

ittee

and

the

stak

ehol

der(

s)

that

they

repr

esen

t.

Yes

N

ames

of C

omm

ittee

Mem

bers

:R

epre

sent

ing

empl

oyee

s em

ploy

ed a

t:

Leth

logo

lo M

okw

ena,

Chr

is M

akam

aH

ead

Of

ce

Tefo

Pha

hla

Wel

kom

Of

ce

Bel

inda

Rad

ise,

Bon

ang

Kes

ilwe

Rus

tenb

urg

Of

ce

Mdu

duzi

Hlo

pe, A

udre

y M

atau

, Pie

t M

ashi

yane

, Loy

t Mas

hini

niW

itban

k O

f ce

Dip

otso

Mth

unyw

a, M

pho

Map

huth

a,G

abi

Kha

nyile

, Rho

fhiw

a M

anen

zhe

Bra

amfo

ntei

n O

f ce

Mar

tha

Mut

hath

i, M

atha

pelo

Mai

lula

, Vio

let

Bop

ape

Lim

popo

Of

ce

Julia

Kgw

ele,

Tao

le M

asok

o, W

inni

e R

amph

ela

Kel

rksd

orp

Of

ce

Non

tsin

diso

Tol

wan

a, Z

imkh

itha

Tyal

aP

ort E

lizab

eth

Of

ce

Nat

asha

Will

iam

sC

ape

Tow

n O

f ce

Lung

i Mon

dani

, Kha

thu

Mph

aphu

liK

imbe

rley

Of

ce

Nko

saza

na M

asek

o, S

ibon

ele

Mkh

ize,

Mus

a Zi

khal

iK

waZ

ulu

Nat

al O

f ce

5. H

as th

e de

partm

ent r

evie

wed

the

empl

oym

ent

polic

ies

and

prac

tices

of y

our d

epar

tmen

t to

ensu

re th

at th

ese

do n

ot u

nfai

rly d

iscr

imin

ate

agai

nst e

mpl

oyee

s on

the

basi

s of

thei

r HIV

st

atus

? If

so, l

ist t

he e

mpl

oym

ent p

olic

ies/

prac

tices

so

revi

ewed

.

Yes

W

e ar

e cu

rren

tly b

usy

revi

ewin

g th

e po

licy

Que

stio

nYe

sN

oD

etai

ls, i

f yes

HR OVERSIGHT

211


HR OVERSIGHT

6. H

as th

e de

partm

ent i

ntro

duce

d m

easu

res

to

prot

ect H

IV-p

ositi

ve e

mpl

oyee

s or

thos

e pe

rcei

ved

to b

e H

IV-p

ositi

ve fr

om d

iscr

imin

atio

n? If

so,

list

th

e ke

y el

emen

ts o

f the

se m

easu

res.

Yes

H

IV a

nd A

ids

Pol

icy

Con

duct

aw

aren

ess

and

wor

ksho

ps

7. D

oes

the

depa

rtmen

t enc

oura

ge it

s em

ploy

ees

to u

nder

go V

olun

tary

Cou

nsel

ling

and

Test

ing?

If

so, l

ist t

he re

sults

that

you

hav

e ac

hiev

ed.

Yes

W

e co

nduc

t VC

T du

ring

Mar

ch-A

pril

and

Sep

tem

ber-

Oct

ober

yea

rly a

nd w

e ha

ve 2

02

empl

oyee

s w

ho te

sted

for H

IV, 7

hav

e te

sted

pos

itive

and

1 te

st w

as in

conc

lusi

ve in

M

arch

-Apr

il 20

11.

8. H

as th

e de

partm

ent d

evel

oped

mea

sure

s/in

dica

tors

to m

onito

r and

eva

luat

e th

e im

pact

of

your

hea

lth p

rom

otio

n pr

ogra

mm

e? If

so,

list

thes

e m

easu

res/

indi

cato

rs.

Yes

H

ealth

scr

eeni

ngs

(Hea

lth R

isk

Ass

essm

ent,

Flu-

Vacc

inat

ion

and

VC

T) a

re

cond

ucte

d tw

ice

in a

yea

r Con

duct

aw

aren

ess

Con

duct

wor

ksho

ps

Que

stio

nYe

sN

oD

etai

ls, i

f yes

212


10. Labour RelationsTABLE 10.1 - Collective Agreements

Subject Matter Date

ITC Usage Policy 11/02/2011

Transport Policy 11/02/2011

Employment Equity Plan 11/02/2011

Talent Management Strategy 11/02/2011

SandT Policy 11/02/2011

Mail Management Policy 11/02/2011

TABLE 10.2 - Misconduct and Discipline Hearings Finalised

Outcomes of disciplinary hearings Number Percentage of Total Total

Finalised 14 48% 29

Pending 15 52% 29

TOTAL 29 100% 29

TABLE 10.3 - Types of Misconduct Addressed and Disciplinary Hearings

Type of misconduct Number Percentage of Total Total

Assault 1 50% 2

Absenteeism 1 100% 1

Theft 0 0% 1

Poor Work Performance 0 0% 2

Misuse of GG petrol card 0 0% 1

Failure to follow procedure 3 50% 6

Non submission of log sheet 2 100% 2

Corruption/ Fraud 0 0% 3

Failure to follow instructions 2 100% 2

Disclosure of classi ed information 0 0% 1

Being intoxicated on duty 1 50% 2

Unprofessional conduct 2 50% 4

unlawful access of information 1 100% 1

withdrawal of subsides vehicle from scheme 1 100% 1

TOTAL 14 48.3 29

HR OVERSIGHT

213


HR OVERSIGHT

TABLE 10.4 - Grievances Lodged

Number of grievances addressed Number Percentage of Total Total

Finalised 17 68% 25

Pending 8 32% 25

TOTAL 25 100% 25

TABLE 10.5 - Disputes Lodged

Number of disputes addressed Number % of total

Upheld 0 0

Dismissed 4 100

TOTAL 4 100

TABLE 10.6 - Strike Actions

Strike Actions

Total number of person working days lost 9

Total cost(R'000) of working days lost (The cost will not be fact estimated due to the fact only 13 deductions we made)

Amount (R'000) recovered as a result of no work no pay R 7,113.81

TABLE 10.7 - Precautionary Suspensions

Precautionary Suspensions

Number of people suspended 5

Number of people whose suspension exceeded 30 days 3

Average number of days suspended 668

Cost (R'000) of suspensions R 2,590,317

214


11. Skills DevelopmentTABLE 11.1 - Training Needs identi ed

Occupational Categories Gender Employment Learnerships

Skills Programmes and other short courses

Other forms of training

Total

Legislators, senior of cials and managers Female 0 0 17 0 17

Male 0 0 30 0 30

Professionals Female 0 0 78 0 78

Male 0 0 73 0 73

Technicians and associate professionals Female 0 0 81 0 81

Male 0 0 115 0 115

Clerks Female 0 0 144 0 144

Male 0 0 48 0 48

Service and sales workers Female 0 0 14 0 14

Male 0 0 26 0 26

Skilled agriculture and shery workers Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assemblers Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations Female 0 0 1 0 1

Male 0 0 4 0 4

Gender sub totals Female 0 0 335 0 335

Male 0 0 296 0 296

TOTAL 0 0 631 0 631

HR OVERSIGHT

215


HR OVERSIGHT

TAB

LE 1

1.2

- Tra

inin

g Pr

ovid

ed

Occ

upat

iona

l Cat

egor

ies

Gen

der

Empl

oym

ent

Lear

ners

hips

Skill

s Pr

ogra

mm

es

and

othe

r sho

rt

cour

ses

Oth

er fo

rms

of

trai

ning

Tota

l

Legi

slat

ors,

sen

ior o

f ci

als

and

man

ager

s Fe

mal

e 0

01

23

M

ale

00

74

11

Pro

fess

iona

ls

Fem

ale

00

349

43

M

ale

00

3413

47

Tech

nici

ans

and

asso

ciat

e pr

ofes

sion

als

Fem

ale

00

88

16

M

ale

00

49

13

Cle

rks

Fem

ale

00

2323

46

M

ale

00

716

23

Ser

vice

and

sal

es w

orke

rs

Fem

ale

00

00

0

M

ale

00

00

0

Ski

lled

agric

ultu

re a

nd

sher

y w

orke

rs

Fem

ale

00

00

0

M

ale

00

00

0

Cra

ft an

d re

late

d tra

des

wor

kers

Fe

mal

e 0

00

00

M

ale

00

00

0

Pla

nt a

nd m

achi

ne o

pera

tors

and

ass

embl

ers

Fem

ale

00

00

0

M

ale

00

00

0

Ele

men

tary

occ

upat

ions

Fe

mal

e 0

00

1616

M

ale

00

023

23

Gen

der s

ub to

tals

Fe

mal

e 0

066

5812

4

M

ale

00

5265

117

Tota

l

00

118

123

241

216


12. InjuriesTABLE 12.1 - Injury on Duty

Nature of injury on duty Number % of total

Required basic medical attention only 0 0

Temporary Total Disablement 1 100

Permanent Disablement 0 0

Fatal 0 0

Total 1 0

13. Consultants

TABLE 13.1 - Report on consultant appointments using appropriated funds

Project Title

Total number of consultants that worked on the project

Duration: Work days

Contract value in Rand

Appointment of Magix Integration provider for the enhancements of the Samindex database system in the Department of Mineral Resources

1 200 R 795,800.00

Appointment of service provider to provide journal subscription for the Department of Mineral Resources for a period of two years

1 480 R 101,435.00

Appointment of IRCA PTY to expand the scope of the project of developing the Mine Health and Safety Inspectorate Integrated Management System to include Mineral Regulation processes ows and modules

5 120 R 3,420,000.00

Procurement of a service level agreement (SLA) for the technical support of the DMR virtual environment. 2 240 R 787,750.00

Appointment of Human Communication for handling recruitment and other advertising for the Department of Mineral Resources for a period of two years

1 480 % discount on advert placed

Appointment of Ultimate Recruitment Solutions for handling recruitment and other advertising for the Department of Mineral Resources for a period of two years

1 480 % discount on advert placed

HR OVERSIGHT

Total number of projects Total individual consultants

Total duration: Work days

Total contract value in Rand

6 10 1520 R 4,317,235.00

217


HR OVERSIGHT

TABLE 13.2 - Analysis of consultant appointments using appropriated funds, i.t.o. HDIs

Project TitlePercentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

Appointment of Magix Integration provider for the enhancements of the Samindex database system in the Department of Mineral Resources

0% 0% 0

Appointment of service provider to provide journal subscription for the Department of Mineral Resources for a period of two years 90% 90% 1

Appointment of IRCA PTY to expand the scope of the project of developing the Mine Health and Safety Inspectorate Integrated Management System to include Mineral Regulation processes ows and modules

0% 0% 3

Procurement of a service level agreement (SLA) for the technical support of the DMR virtual environment. 40% 40% 0

Appointment of Human Communication for handling recruitment and other advertising for the Department of Mineral Resources for a period of two years

51% 51% 1

Appointment of Ultimate Recruitment Solutions for handling recruitment and other advertising for the Department of Mineral Resources for a period of two years

100% 100% 1

TABLE 13.3 - Report on consultant appointments using Donor funds

Project Title

Total number of consultants that worked on the project

Duration: Work days Donor and Contract value in Rand

0 0 0 0

Total number of projects Total individual consultants Total duration: Work days Total contract value in

Rand

0 0 0 0

TABLE 13.4 - Analysis of consultant appointments using Donor funds, i.t.o. HDIs

Project Title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

0 0 0 0

218

RP59/2011ISBN: 978-0-621-40021-2

This Report Has Been Printed On Recycled Paper

DEPARTMENT OF MINERAL RESOURCESPRIVATE BAG X59ARCADIA 0007

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