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PRESENTATION TO THE SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES DEPARTMENT OF COMMUNICATIONS 2010/2011 ANNUAL REPORT 19 October 2011. A global leader in the development and use of Information and Communication Technologies for socio-economic development. DoC LEADERSHIP TEAM. - PowerPoint PPT Presentation
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PRESENTATION TO THE SELECT COMMITTEE ON
LABOUR AND PUBLIC ENTERPRISES
DEPARTMENT OF COMMUNICATIONS
2010/2011 ANNUAL REPORT
19 October 2011
A global leader in the development and use of Information and Communication Technologies for socio-economic development
A global leader in the development and use of Information and Communication Technologies for socio-economic development
DoC LEADERSHIP TEAMDoC LEADERSHIP TEAM
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Rosey Sekese Director-General
Gift Buthelezi DDG: ICT International Affairs & Trade
Sam Vilakazi ADDG: Finance & ICT Enterprise Development
Norman Munzhelele ADDG: ICT Policy Development
Themba Phiri ADDG: Presidential National Commission
Harold Wesso DDG: e-Skills Institute
Linden Petzer CD: Radio & Satellite Communication
Farhad Osman CD: Strategic Planning & Monitoring
Pearl Seopela CD: Communications
Kedibone Sekwele CD: HRM
A global leader in the development and use of Information and Communication Technologies for socio-economic development
FOCUS OF PRESENTATIONFOCUS OF PRESENTATION
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As requested, the presentation seeks to address the following questions raised by the Select Committee on Labour and Public Enterprises:
•What were key aspects of the DOC’s strategic/business plan for 2010/11, and in particular what were its key targets?
• How has the DOC performed in terms of the plan and in particular the key targets? Where you did not achieve these targets, why was this the case?
(the above will be addressed through the presentation of a spreadsheet )
• How was the budget allocated for the 2010/11 financial year used?
• What are key aspects of the strategic plan for this financial year and the mid-term? (Flagship Programmes)
• What are some of the key challenges facing the DOC and how are these being addressed?
• Apart from exercising effective oversight, how can the Select Committee be of assistance to the DOC?
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• Governance structures were not fully functional to enable decision-
making on key projects
• Prolonged procurement approval procedures impacting on project
implementation
• Cancellation of existing tendering processes led to non-spending
• Delays in transfers to the entities due to DTT standards (R180m for
STBs and R199m for Sentech Digitization) and a 2010 saving of
R150m for Telkom
• R117 m due to the termination of 112 Emergency Call Centre. Non-
functional internal structures to facilitate approval of projects
• Displacement of staff from branches thereby resulting in low staff
morale and performance.
CONTEXTCONTEXT
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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• A spreadsheet has been prepared highlighting the following information against each of the 2010/11 targets:
• Achievements
• Status (achieved, partially achieved, not achieved)
• Reasons for variance where applicable
• Current status where applicable
• The above information covers the following 6 Programmes within the DoC:
• Programme 1: Governance & Administration
• Programme 2: ICT International Affairs & Trade
• Programme 3: ICT Policy Development
• Programme 4: ICT Enterprise Development
• Programme 5: ICT Infrastructure Development
• Programme 6: Presidential National Commission on ISAD
SUMMARY OF KEY ACHIEVEMENTSSUMMARY OF KEY ACHIEVEMENTS
A global leader in the development and use of Information and Communication Technologies for socio-economic development
Budget vs Actual Performance
for the 2010/11 Financial Year
A global leader in the development and use of Information and Communication Technologies for socio-economic development6
2010/11 2009/10
REVENUE R’000 R’000
Annual appropriation 2 138 001 2 470 494
Departmental revenue 1 528 347 1 344 790
Direct Exchequer receipts 366 509 4 481 173
TOTAL REVENUE 4 032 857 8 296 457
Current expenditure
Compensation of employees 145 083 128 250
Goods and Services – operational exp. 175 648 303 747
Interest and rent on land 316 30
Financial transactions in assets & liabilities 708 82
Total current expenditure 321 755 432 109
A global leader in the development and use of Information and Communication Technologies for socio-economic development7
STATEMENT OF FINANCIAL PERFORMANCE
STATEMENT OF FINANCIAL PERFORMANCE
2010/11 2009/10
R’000 R’000
Transfers and subsidies * 1 102 323 1 859 612
Expenditure for capital assets
Tangible capital assets 2 301 6 369
Software & other intangible assets 98 3 822
Total expenditure for capital assets 2 399 10 191
TOTAL EXPENDITURE 1 426 477 2 301 912
A global leader in the development and use of Information and Communication Technologies for socio-economic development8
STATEMENT OF FINANCIAL PERFORMANCE
STATEMENT OF FINANCIAL PERFORMANCE
2010/11 2009/10
R’000 R’000
Voted funds surrendered
711 524 168 582
Departmental revenue 1 528 347 1 344 790
Direct Exchequer receipts
366 509 4 481 173
Transferred to National Treasury
2 606 380 5 994 545
A global leader in the development and use of Information and Communication Technologies for socio-economic development9
STATEMENT OF FINANCIAL PERFORMANCE
STATEMENT OF FINANCIAL PERFORMANCE
2010/11 2009/10
Programme
Final Appro-priation
Actual Expen-diture Variance
Expendi-ture as % of final appro-
priation
Final Appro-priation
Actual Expen-diture
1. Administration 150 935 145 614 5 321 96.7% 164 786 163 200
2. ICT International Affairs and Trade 44 618 35 223 9 395 78.9% 49 274 44 600
3. ICT Policy Development 110 230 89 712 20 518 81.4% 93 025 70 112
4. CT Enterprise Development 1 617 992 1 083 606 534 386 67.0% 2 041 848 1 923 635
5. ICT Infrastructure Development 180 156 44 842 135 314 24.9% 90 244 74 787
6. PNC 34 070 27 480 6 590 80.7% 31 317 25 578
TOTALTOTAL 2 138 0012 138 001 1 426 4771 426 477 711 524711 524 66.7%66.7% 2 470 4942 470 494 2 301 9122 301 912
A global leader in the development and use of Information and Communication Technologies for socio-economic development10
APPROPRIATION STATEMENTAPPROPRIATION STATEMENT
APPROPRIATION STATEMENT
2010/11
ProgrammeFinal
AppropriationActual
Expenditure Variance
1. Administration 150 935 145 614 5 321
2. ICT International Affairs and Trade
44 618 35 223 9 395
3. ICT Policy Development
110 230 89 712 20 518
4. CT Enterprise Development
1 617 992 1 083 606 534 386
5. ICT Infrastructure Development
180 156 44 842 135 314
6. PNC 34 070 27 480 6 590
TOTAL 2 138 001 1 426 477 711 524
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APPROPRIATION STATEMENTAPPROPRIATION STATEMENT
2010/11 2009/10
Economic Classifi-cation
Final Appropria-
tion
Actual Expen-diture
Variance
Variance as
% against final
allocation
Final Appro-priation
Actual Expenditure
Current payments
501 658 321 755 179 903 64.1% 459 191 432 108
Transfers and subsidies 1 632 224 1 102 323 529 901 67.5%
1 998 612 1 859 612
Payments for capital assets 4 119 2 399 1 720 58.2%
12 691 10 192
TOTALTOTAL 2 130 0012 130 001 1 426 4771 426 477 711 524711 524 66.7%66.7% 2 470 4942 470 494 2 301 9122 301 912
A global leader in the development and use of Information and Communication Technologies for socio-economic development12
SUMMARY OF ECONOMIC CLASSIFICATION
SUMMARY OF ECONOMIC CLASSIFICATION
Adjusted Appropriation Act
R’000
Actual Transfer
R’000
Variance
USAASA 66 704 66 704 -
USAF 218 613 38 613 180 000
ICASA 290 923 290 923 -
NEMISA 32 602 32 602 -
SAPO Subsidy 306 077 306 077 -
Sentech – Digitisation 270 900 71 000 199 900
SABC: Public Broadcaster 230 014 230 014 -
SABC: Channel Africa 38 896 38 896 -
A global leader in the development and use of Information and Communication Technologies for socio-economic development13
DETAILS OF TRANSFER PAYMENTSDETAILS OF TRANSFER PAYMENTS
Adjusted Appropriation
Act
R’000
Actual Transfer
R’000
Variance
SABC: Programme Production 15 000 15 000
SABC: Community Radio Stations 6 850 6 850
Telkom SA Ltd 150 000 - 150 000
.za Domain Name Authority 1 500 1 500
Sector Education and Training Authority: ISETT-SETA
125 125
NEPAD 3 500 3 500
A global leader in the development and use of Information and Communication Technologies for socio-economic development14
DETAILS OF TRANSFER PAYMENTSDETAILS OF TRANSFER PAYMENTS
KEY ASPECTS OF
THE STRATEGIC PLAN
FOR THIS FINANCIAL YEAR
A global leader in the development and use of Information and Communication Technologies for socio-economic development15
The following have been identified as Flagship Programmes: 1. Digital Terrestrial Television (DTT) – Seeks to migrate South Africa
from an analogue to a digital broadcasting platform through the preferred DVB-T2 standard.
2. Job Creation - to establish an ICT Industry Wide Working Group on job creation whose purpose will be to facilitate the identification of priority areas for job creation.
3. ICT Rural Development- ICT Rural Development Strategy will be implemented through various key projects as ICTs is seen as an effective enabler to rural development.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
DOC FLAGSHIP PROGRAMMES (1)
DOC FLAGSHIP PROGRAMMES (1)
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4. Broadband - to improve broadband penetration through the implementation of an integrated Broadband Plan that will facilitate capital investment, innovation and rural access. Plans for connecting schools, health and government centres will not only improve service delivery, but also improve the uptake and usage of broadband by government and individuals.
5. Postbank - Post Bank Bill was signed into an Act late last year. Work will begin to fast-track the roll-out of the Post Bank centres or outlets throughout the country.
6. E-Skills - through the e-Skills Institute, massify the e-skilling of our nation for a rightful place in the Information Society and Knowledge-based Economy, ensuring (i) that citizens improve their quality of life through the use of ICTs, and (ii) that employment ready students are “delivered”.
A global leader in the development and use of Information and Communication Technologies for socio-economic development17
DOC FLAGSHIP PROGRAMMES (2)
DOC FLAGSHIP PROGRAMMES (2)
Benefits:• Efficient use of the frequency spectrum – scarce public resource• More channels therefore more diverse content to the public• Better picture & sound quality• Potential for special interactive services (sub-titling, e-government delivery)
Approved DTT roll-out plan in place focusing on the following key areas:
• Digitial Migration policy amendments have been gazetted for public comment.
• The PMO structure has already been approved and recruitment is underway
• The Joint Spectrum Advisory Group (JSAG) has been established.• Engagements with ICASA regarding community TV is ongoing• The network coverage needed for the launch is 70% and Sentech
committed that by April 2012 it will reach the 74% network coverage.
18A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (1)
FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (1)
Approved DTT roll-out plan in place focusing on the following key areas:
• The SABC has developed Channel line-ups (including health and educations channels) and the business plans setting out three funding scenarios were submitted to DoC for MTEF Opex for funding. Full revised DTT business plan incorporating new channel line-ups is close to completion.
• Digital Migration Public Awareness and social marketing strategy has been developed for implementation.
• The Scheme for Ownership Support (SOS) has been developed for Cabinet approval
• Subsidy management will be done through USAASA who have already developed the means test and the qualifying criteria. As part of the management of the subsidy, engagements have started with retailers and the South African Post Office.
19A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (2)
FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (2)
Approved DTT roll-out plan in place focusing on the following key areas:
• The Set Top Box (STB) Manufacturing Strategy has been developed for Cabinet approval.
• The final STB Standard is projected to be ready by the end of November in consultation with SABS
• DoC has developed the Request for Proposals (RFPs) for the appointment of Manufactures for the subsidised STBs. The RFP for the subsidised STBs requires that the standard be finalised by SABS as well as the SOS and STB manufacturing strategy.
The Department is on track to meet the December 2013 SADC deadline
20A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (3)
FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (3)
Job Creation The DoC has identified the following critical programmes which could
facilitate the creation of jobs over the medium to long term period:
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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FLAGSHIP PROGRAMMES: JOB CREATION (1)
FLAGSHIP PROGRAMMES: JOB CREATION (1)
Programme Project Implementer
ICT Infrastructure DTT Sentech, SABC
Broadband Sentech, Infraco
Manufacturing Set Top Boxes tbc
Creative Industries Digitisation/NDR/ Military veterans
SABC, NEMISA
Content hubs for radio/TV SABC, ICASA
Animation Programme NEMISA
Capacity Building E-Cadres E-Skills Institute
SMME development Incubation hubs ICT Enterprise Branch
ICT Centres/e-Cafes/ LAN Houses
ICT Enterprise Branch
SAPO Infrastructure Postbank roll-out SAPO
BPOs Call centre agents tbc
Job Creation
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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FLAGSHIP PROGRAMMES: JOB CREATION (2)
FLAGSHIP PROGRAMMES: JOB CREATION (2)
Institutional Mechanisms
• The Department has established several important platforms in which the issue of Job creation was discussed, amongst others, the ISAD Multi-stakeholder Forum, the Top 30 ICT Companies as well as the ICT Industry Forum.
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In “taking technology to the people”, the Department is in the process of finalising the ICT Rural Development Strategy as ICTs is seen as an effective enabler to rural development.
160 rural wards are targeted within the MTSF of which 2 (Muyexe and Msinga) are progressing well with regards to DoC led ICT interventions.
Department of Rural Development and Land Reform (DRDLR) have identified 36 additional rural areas in need of urgent ICT interventions where DoC & DRDLR will partner to roll-out out relevant ICT interventions.
The 36 additional rural areas cut across all 9 Provinces.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: ICT RURAL DEVELOPMENT (1)
FLAGSHIP PROGRAMMES: ICT RURAL DEVELOPMENT (1)
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Project plans for each Province have been drafted and will roll-out effective from 01 November 2011.
There is a need to have extensive consultative process with relevant stakeholders within Provinces and Municipalities.
The following ICT services are envisaged to be needed by the prioritised areas:
Connecting schools and health and government facilities Rolling-out Low Power transmitters for TV and radio coverage Digital Hubs and Telecentres Post Offices Skill capacity
A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: ICT RURAL DEVELOPMENT (2)
FLAGSHIP PROGRAMMES: ICT RURAL DEVELOPMENT (2)
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FLAGSHIP PROGRAMMES: BROADBAND (1)
FLAGSHIP PROGRAMMES: BROADBAND (1)
100% Broadband access by 2020
Data Analysis & Broadband Mapping
• Obtain a clear picture of what currently exists through infrastructure broadband mapping exercise per Province and District.
• Develop existing coverage maps in terms of fixed-line and wireless penetration, and to identify the gaps in terms of coverage per Province.
• Determine the fibre required to cover identified gaps per Province, per district and per Municipality.
• Expand on fixed and wireless infrastructure through relevant operators/service providers
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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FLAGSHIP PROGRAMMES: BROADBAND (2)
FLAGSHIP PROGRAMMES: BROADBAND (2)
Progress
• National Broadband Policy approved
• Commenced with the Kwazulu-Natal Province as a pilot, and have started implementing phase 1 with cooperation from Sentech and Infraco. Mapping exercise is already complete.
• The DoC has also established the Broadband Inter-Governmental Committee to align the Provincial and Municipal initiatives. BBICC is operational and Provinces have already commenced to identify the PoPs for Phase 1.
• Collaborative efforts underway between the DoC and ICASA to finalise the Local Loop Unbundling framework and spectrum licensing for Broadband
• Commenced with an e-connectivity initiative to connect schools and clinics. To date, the first 1650 schools have already been identified to be connected with broadband, and a total of 1154 adjacent health centres will also be connected.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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FLAGSHIP PROGRAMMES:POSTBANK (1)
FLAGSHIP PROGRAMMES:POSTBANK (1)
Aim: to provide a wider range of affordable, relevant and accessible financial services for the unbanked Postbank Act was promulgated in December 2010, the President has since signed the notice for commencement on 22 July 2011.DoC finalizing the development of Lending, Borrowing and Investment policies of the Postbank as required by section 26(2) of the Act. Policies will be tabled in Parliament before the end of the financial year. Call for nominations for suitable people to serve in the Board of the Postbank has been issued on the 2nd October 2011.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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FLAGSHIP PROGRAMMES: POSTBANK (2)
FLAGSHIP PROGRAMMES: POSTBANK (2)
The Post Office Board had completed the determination of the structure of the Company and the conditions of service, remuneration and service benefits of the personnel of the Company.
Project Oversight Committee to be chaired by the Minister has been established.
The Postbank is on track to launch its application for a banking licence.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
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The e-Skills Institute (e-SI) serves as a national catalyst to deliver e-skills for the Information Society and Knowledge-based Economy
Within a developmental context it will play a leading advocacy role in orchestrating the various existing and new initiatives around e-skills across business, government, education, civil society including labour and global development partners with specific focus on:
• ICT Industry,• Creative Industry;• Enabling innovation that responds to the developmental needs of the
country through the establishment of provincial application factories;• Working collaboratively to leverage existing capacity and resources;• Ensuring that the e-skills qualifications needed in the 21st century are
designed in such a way that they make students employable;• Customize qualifications so that they are relevant to employment.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: E-SKILLS (1)
FLAGSHIP PROGRAMMES: E-SKILLS (1)
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The e-SI works through its multi-stakeholder collaborative network architecture to fast-track e-skilling South Africans for equitable prosperity and global competitiveness.
eSI Partners: UNDP, UNCTAD, UNESCO, Tech de Monterrey, RIM, Department of Higher Education, Telkom, SALGA, University of Pretoria, Walter Sisulu University, Vaal University of Technology, Durban University of Technology and the University of the Western Cape are but a few to mention.
Given the very serious mismatch between our current training and education offerings and the market demand, the e-SI is gearing itself to impact aggressively against the national strategic priorities of the country.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: E-SKILLS (2)
FLAGSHIP PROGRAMMES: E-SKILLS (2)
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The e-Skills Institute is in the process of establishing provincial e-Skills Knowledge Production and Coordination hubs across the country to:
Facilitate coordination options for training and education; Coordinate and deliver relevant research & evaluation; Coordinate better alignment of multi-stakeholder e-skills projects to the
MTSF in provinces; Assist in amplifying the impact and sustainability of relevant private sector,
donor country, government and civil society including Labour, NGO’s etc) based activities; and
Act as knowledge hubs to inform other government programmes and stakeholder groups.
The Department is in the process of incubating the e-SI for a period of two years with the intent of it becoming a fully-fledged institution in 2013.
A global leader in the development and use of Information and Communication Technologies for socio-economic development
FLAGSHIP PROGRAMMES: E-SKILLS (3)
FLAGSHIP PROGRAMMES: E-SKILLS (3)
CHALLENGES HINDERING PROGRESS AND CORRECTIVE MEASURES
CHALLENGES HINDERING PROGRESS AND CORRECTIVE MEASURES
CHALLENGES:Prolonged internal approvals due to lack of fully functional Governance Structures in the first two months of the reporting periodOver ambitious planning conducted on the assumption of vacancies being filledDelays due to prolonged engagement with external stakeholders on certain projects
CORRECTIVE MEASURESVarious Governance Structures have been approved, established and are fully functional which has substantially improved the turn-around times for decision-making and approvals.The Department has established a Quarterly Organisational Performance Assessment Board that met on 15 July which focused on the interrogation of organisational performance and implementing immediate actions to address targets that are either delayed or where there is no progress. Process of filling vacancies has commencedPNC is undergoing a repositioning exercise - Information Society and Development Branch
32A global leader in the development and use of Information and Communication Technologies for socio-economic development
HOW CAN THE SELECT COMMITTEE BE OF ASSISTANCE TO THE
DOC?
HOW CAN THE SELECT COMMITTEE BE OF ASSISTANCE TO THE
DOC? Oversight function
Awareness raising with regards to ICT issues within the various
constituencies
Communicating with the Department the ICT related challenges or
needs of the various constituencies
33A global leader in the development and use of Information and Communication Technologies for socio-economic development
A global leader in the development and use of Information and Communication Technologies for socio-economic development
THANK YOU
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