DoC Budget Presentation

to

Portfolio Committee on Communications

Ms. P Ntombela-NzimandeActing Director General

Department of Communications 10 June 2004

INTRODUCTION • Opening and Welcome

• Strategic plan of DoC derived from- Electorate mandate

- Cabinet Lekgotla

- Legislative mandates i,e relevant Acts

- State of Nations address

- Minister’s Strategic overview

• DoC Strategic planning session from 24 – 27 May & 1 June 2004

ROLE • To develop ICT policies and legislation that stimulate and

enhance the sustainable economic development of the South African 1st and 2nd economy and positively impact on the social well being of all our people.

• To evaluate the economic social and political implementation impact, outcomes and processes of the said policies.

• To exercise oversight on SOEs

• To fulfill South Africa’s continental and international responsibilities in the ICT field.

VISIONOld

• Improve the lives of the ordinary South Africans whilst contributing to economic growth. Make South Africa a knowledge based society and help create an information economy.

New• To be a global leader in

harnessing information and communications technologies for socio-economic development.

MISSIONOld

• To enable ordinary people to have access to traditional media and the convenience of information technology

New • To enhance the well being of

peoples of South Africa, the African Continent and the world through the creation of a sustainable and an enabling information communications technology environment. We shall through leveraging our world class knowledge, skills, and experience deliver on our social contracts to the people in a professional manner reflective of our national value system informed by Batho Pole ethos

MANDATE

National Strategic

Intent

DoC Mandate

Key

Deliverable Target

Constitution •Democracy•Equality•Freedom•Prosperity•Peace and Security•Freedom of Expression•Freedom of Association

• Fair Administration•Policy,

Universal Access & Service

•Develop ICT laws and Policies•Strategic direction for roll out of universal services•Evaluation & Monitoring through Shareholder Compacts

• SA Community•Executive•Legislators•World Community

National Objective derived from

-SONA-Minister-Cabinet Lekgotla

•Poverty Alleviation•Economic Growth•Job creation

•Regulatory Framework•SMME Dev. •Enabling infrastructure roll out•Affordable access to ICT service

• SNO• Local Government• ICT applications

MANDATE

National Strategic

Intent

DoC Mandate/ Key

Deliverable Target

National Objective derived from

-SONA-Minister-Cabinet Legotla

•Poverty Alleviation•Economic Growth•Job creation

(DoC to enable or facilitate)

•Creation of a world class ICT Sector•Economic Growth•Job Creation• Infrastructure development

2nd ECONOMY

•Bridge Digital Divide

•Skills dev

•SNO• Local Government• ICT applications

•Community•Executive•Legislators•World Community

MANDATE

National Strategic

Intent

DoC Mandate/

Key

Deliverable Target

National Objective derived from

-SONA-Minister-Cabinet Legotla

2nd ECONOMY

•Skills dev.

•ICT awareness

•Growing the ICT sector

•Developing sustainable jobs

•National Infrastructure development

•SOE’s delivery strategies

•Community•Executive•Legislators•World Community

MANDATE

National Strategic Intent

DoC Mandate Key

Deliverable Target

• Telecoms Acts • Public Interest • Regulations • Market Structure• Universal Access & Service• Empowerment • Growth & Stability

• Market Liberalization• Sustainable Economic Growth • Policy Dev.• Regulation• Infrastructure R/O• Affordability • Empowerment

• USAL’s • Edunet• E-rate• ICT Strategy • SNO

•Community•Executive•Legislators•World Community

• Broadcasting •Public Interest • Regulations • Market Structure• Universal Access & Service• Empowerment • Growth & Stability• Ownership

• Inclusivity • Nation Building• Language and Content• Community Sector• Infrastructure R/O• Moral regeneration• Sports of National interest • Information, Language and Entertainment

• PBS• CBS• Regional Broadcasting• Regulation of licenses• Social Cohesion• Moral Regeneration• Stimulating Production of local content

•Community•Executive•Legislators•World Community

MANDATE

National Strategic Intent

DoC Mandate Key

Deliverable Target

• Postal •Access and affordability•Access to financial services sector •Delivery of Social Services•Nation Building•Redressing social imbalances •Information and Communications

•Market Structure •Regulations•Economic Growth•Improved service delivery •Oversight of SOE’s

•Develop laws and polices•Infrastructure Rollout

•Community•Executive•Legislators•World Community •Portfolio Organisations•SMME’s •Designated Groups•Regional Reach

•E-Commerce • Facilitate e-government•Secure e-transaction•Stimulate economic growth

• Growth of 2nd economy•Establish enabling e-environment•Establish e-environment framework •Research and development •Security protocol

•Legal and technical certainty •Regulated e-commerce•Established •e-government environment

•Community•Executive•Legislators•World Community •Portfolio Organisations•SMME’s

MANDATE

National Strategic Intent DoC

MandateKey

Deliverable Target

Convergence • Redefine Market Structure

•Reduce cost of doing business

• Economic growth

• Encourage Entrepreneurship

• Innovation and competition

• Appropriate policy for cost reduction

• SMMEs promotion

• Governmental Consensus

• Convert blue print into Act.

• Implementation plan for government

• New regulations

•Community

•Executive

•Legislators

•World Community

•Portfolio Organisations

•SMME’s

MANDATE National Strategic Intent

DoC Mandate

Key

Deliverable Target

Convergence • Redefine Market Structure

•Reduce cost of doing business

• Economic growth

• Encourage Entrepreneurship

• Innovation and competition

• Appropriate policy for cost reduction

• SMMEs promotion

• Governmental Consensus

• Convert blue print into Act.

• Implementation plan for government

• New regulations

•Community

•Executive

•Legislators

•World Community

•Portfolio Organisations

•SMMEs

DOC KPA’S

C o rpo ra teG o ve rna n ce

P o lic yD e ve lo p m e nt

S h are h o ld erM a na ge m e nt

R e sea rch &In n ova tive a p p lica tio ns

L eg a l In te rn a lA u d it

C o rpo ra teS e rv ices

F in an ce &R isk M a n .

S tra te g icM a na ge m e nt

D o CK P A 's

KEY PERFOMANCE AREAS POLICY UNIT

Strategic Objective key Indicator

Policy framework 2 facilitate universal access

•Approved universal access & service framework

Develop e-strategy framework •Cluster consultation

•Stakeholder consultation

•Policy document

•Cabinet process

Develop ICT competition framework

• Consult competition competition

•Cluster consultation

•Market competition analysis

•Stakeholder consultation

Develop ICT competition framework

• Formulate policy directives

• Review appropriateness of policy

• Parliamentary process

KEY PERFOMANCE AREAS POLICY UNIT

Strategic Objective key Indicator

Develop mechanisms to support local content

• Approved policy framework

Finalize Convergence Bill •Convergence Act

Migration policy to introduce new digital services

•Approved digital migration policy framework

Develop policy framework for Public Broadcasting

•Approved public broadcasting framework

KEY PERFOMANCE AREAS SHAREHOLDER MANAGEMENT UNIT

Strategic Objective key Indicator

Facilitate restructuring of SOE’s • Approve restructuring

• Completion of Due Diligence

• Manage Cabinet process

• Facilitate approval of restructuring plans

• Monitor implementation of restructuring plans

Oversee delivery of Government policy targets

• Approved Shareholder Compacts

Oversee delivery of Government policy targets (continued)

• Approved Shareholder Compacts (Continued)

Facilitate appointment of Boards of Directors of SOE’s

• Full representative board compliment

SHAREHOLDER MANAGEMENTKEY PERFOMANCE AREAS

Strategic Objective key Indicator

Analysis of SOEs Financial Performance

•Availability of latest up to date database and financial reports

Undertake benchmarking exercise on financial performance of SOE’s

• Baseline / Industry norms

Evaluate financial implications of Universal Obligations

•Optimal financing model

Analysis of convergent technologies

•Analysis Report;

Analyse viability of emergent technologies to enable universal access

•Feasibility study

•Service delivery Models

•Demonstrable applications.

KEY PERFOMANCE AREAS RESEARCH AND INOVATIVE APPLICATIONS

Strategic Objective key Indicator

To develop network model for provision of educational services

•Actual network model

Affordable and high quality access of regional broadcasting

•Analysis Report

Ensuring compatibility and interoperability of ICT standards

•Implementation of standards

KEY PERFOMANCE AREAS STRATEGY

Strategic Objective key Indicator

Facilitate development of Strategic planning

• Integrated strategic plan

Ensure effective participation in intergovernmental activities

•Coordinate intergovernmental activities

Promote equity of designated groups in DoC

• Increment in employment and procurement from designated groups

Build Mutually beneficial relations in the ICT sector

• Approved MOU’s

• Effective functioning of NEPAD ICT task force

Develop an effective SADC IICT sub-structure with a clear ICT programme

• Created ICT sub-structure

Promotion of SA business in the Continent and the world

• Established strategic alliance partners

KEY PERFOMANCE AREAS STRATEGY

Strategic Objective

key IndicatorProvide support service to Minister in performing her functions

•Timeous and relevant briefing to Minister

  To ensure and maintain effective, efficient & transparent systems of:

•- financial and risk management,

•- internal controls,

•- Procurement & Provision system which is fair

• Approved policies, procedures, delegations and systems

• PFMA review report

• Signed off compliance reports

KEY PERFORMANCE AREASFINANCE AND RISK MANAGEMENT

Strategic Objective key Indicator

Budget Management & Financial Reporting

• Approved Budget

• Appropriate expenditure management

• Signed off compliance reports

Timeous provision of relevant information

Provision of Secretary Service to the DTC

• Approved Tender Administrative Procedures

To ensure and maintain effective and appropriate steps to prevent unauthorised, irregular, fruitless and wasteful expenditures and losses

•Unqualified audit reports

• PFMA review reports

• Signed off compliance reports

CRITICAL SUCCESS FACTORS• Resource allocation particularly population of

structure

• Finalization Migration to new structure

• Transformation and Change management process

• HR retention and career pathing strategies

MEDIUM TERM EXPENDITURE ESTIMATE

ProgrammeAdjusted

appropriation

2003/04

Revised estimate

2003/042004/05

MTEF

2005/06 2006/07

1 Administration 88 607 84 198 91 269 95 292 101 008

2 Telecommunications

Policy

146 796 144 062 134 649 142 670 151 230

3 Postal Services 1 090 186 1 088 027 356 490 372 199 394 531

4 Multi-Media Services

Policy

312 948 312 319 285 668 296 904 316 298

5 Auxiliary and

Associated Services

6 682 6 356 7 124 7 438 7 884

TOTALTOTAL 1 645 2191 645 219 1 634 9621 634 962 875 200875 200 914 503914 503 970 951970 951

MTEF PER ECONOMIC CLASSIFICATION

Economic Classification

Adjusted appropriation

2003/04

Revised estimate

2003/042004/05

MTEF

2005/06 2006/07

Current payments

225 413 215 156 202 463 224 497 242 169

Transfers and subsidies

1 403 701 1 403 701 647 224 662 384 699 007

Payments for capital assets

16 105 16 105 25 513 27 622 29 775

TOTALTOTAL 1 645 2191 645 219 1 634 9621 634 962 875 200875 200 914 503914 503 970 951970 951

R750 million was allocated under transfers to the Post Bank for the 2003/04 financial year.

The 112 Emergency call centre has been allocated R20 million under capital assets whereas it was part of the transfers in the previous financial year.

DETAILS OF TRANSFER PAYMENTSTransfer to Adjusted

appropriation

2003/042004/05

MTEF

2005/06 2006/07

USA 14 211 15 884 17 500 20 100

USF 24 745 26 230 29 400 31 164

Advanced Institute for ICT 11 000 13 000 7 000 -

ISETT-seta - 2 350 2 800 3 300

Multi-Purpose Community Centres

- 2 000 3 000 3 500

South African Post Office subsidy

1 050 000 300 000 300 000 318 000

SAPO: PIT - 8 480 10 000 10 800

SAPO: Extension of services

- 7 950 8 500 9 000

DETAILS OF TRANSFER PAYMENTSTransfer to Adjusted

appropriation

2003/042004/05

MTEF

2005/06 2006/07

SABC: Public Broadcaster

44 717 47 400 50 455 53 482

SABC: TBVC States

40 000 - - -

SABC: Channel Africa

26 288 27 865 29 616 31 393

Community Radio Stations

9 000 9 540 10 255 10 870

Programme Production

30 100 28 500 31 000 33 200

NEMISA 15 153 16 878 18 163 19 199