portfolio committee on justice and constitutional development department of justice and...

PORTFOLIO COMMITTEE ON JUSTICE AND CONSTITUTIONAL DEVELOPMENT

DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT ANNUAL REPORT 2009/10

13 OCTOBER 2010

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CONTENTS

1.Introduction

1.Strategic and Operational Highlights

1.Financial Report

2009/10 Budget and Expenditure OutcomeAudit OutcomesMedium Term Expenditure

1.Challenges

1.Conclusion

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• The Department of Justice and Constitutional Development (DoJ&CD) has the critical mandate of ensuring that justice is realised by all in South Africa in our Constitutional Democracy (as referenced in the Introduction of the Annual Report (AR) page 9 - 11). In promoting this, the Department continued in the period under review with the pursuance of its Strategic Goals relating to:

– Access to justice;

– Enhancing organisational efficiency; and

– Transforming Justice, State and Society.

• The Department’s approach is premised on its Vision to achieve “Accessible and transformed justice services committed to the promotion of constitutional values” and is underpinned by the Mission “Together we provide accessible, fair, speedy, cost-effective and quality justice for all.”

• In addition, the Department also provide certain legal services to the Government.

1. INTRODUCTION

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• In the period under review the Department continued to deal with its core functions through services based on the following principles and values:

– Commitment to Constitutional Values and a Culture of Human Rights;

– Batho Pele;

– Good Governance;

– Ubuntu;

– Professionalism and Continuous Improvement; and

– Open Communication.

1. INTRODUCTION (cont.)

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• The Department’s Key Strategic Measurable Objectives are as follows (AR page 14):– Capacitating and restructuring the courts and integrating the justice system;– Catering for the needs of vulnerable groups;– Improving the maintenance system to relieve pressure at courts and enhance standards of

service delivery;– Broadening access to justice; and– Improving the efficiency of the National Prosecuting Authority (NPA) through its

Programmes and Units.

• In terms of the National Treasury estimates of National Expenditure Programmes, the Department’s activities and expenditure is dealt with through the following Programmes (AR page 14 - 16):

– Programme 1: Administration– Programme 2: Court Services– Programme 3: State Legal Services– Programme 4: National Prosecuting Authority– Programme 5: Auxiliary and Associated Services

1. INTRODUCTION (continued)

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• Summary of Highlights, Achievements and noteworthy aspects:

– Ensuring equitable access to justice services for all (AR page 17, 28)• The Department continued to focus on people living in townships and rural areas who previously

had limited access to courts. • During the period under review it had already become clear that budget constraints will have an

impact on future work done in this regard in terms of capital projects etc.

• Highlights in this regard are: – The Department continued to correct and realign Magisterial Districts with Municipal

Districts with 15 Branch Courts converted to full service courts: » Motherwell, Daveyton, Alexandra, Thembisa, Madadeni, Tiyane, Enkangala,

Groblershoop, Jan Kempdorp, Kakamas, Keimoes, Poffader, Kathu, Atlantis and Khayelitsha

– Established more Small Claims Courts (17) – Promoted the use of indigenous languages in the District Courts (Pilot Project 27 District

Courts). – Completed 3 New Courts:

» Galeshewe (N. Cape), Colesburg (N. Cape), Lutzville (W. Cape)– 3 Courts under construction:

» Katlehong (GP), Polokwane High Court (LP), Ntuzuma.

2. OPERATIONAL HIGHLIGHTS

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2. OPERATIONAL HIGHLIGHTS (cont)

Improving Access to Justice (Court Infrastructure)

Name Description

Soshanguve Magistrate’s Office Additional accommodation

Bityi Periodical Court New periodical court

Garies Magistrate’s Office New magistrate’s office

Sundumbili Magistrate’s Office New magistrate’s office

Humansdorp Magistrate’s Office Additional accommodation

Dimba Magistrate’s Office New magistrate’s office

Lothair Periodical Court New periodical court

Ngome Periodical Court New periodical court

Orlando Magistrate’s Office New magistrate’s office

Plettenberg Bay Magistrate’s Office New magistrate’s office

Richard’s Bay Magistrate’s Office New magistrate’s office

Budget constraints

Although planning has already started on the 12 projects listed below, there are not sufficient funds for implementation and this may impact on service delivery in the future.

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Appointment of key staff and decrease in vacancy rates

ACHIEVEMENTS

• Vacancy rate: Vacancy rate dropped from 13.6% in 2008/09 to 10.7% in 2009/10

• Key Appointments: Key appointments finalised include Director General, National Director of Public Prosecutions, Chief

Justice and Public Protector

Post levelTotal appointments

i n 2008/9Total appointments

i n 2009/10

Judges 18 30Senior management 266 46

Supervisory and Middle Management(level 9 and 12) 350 711

Levels 1 to 8 3289 2307Grand total 3 923 3 094

Appointments finalised during the period under review:

During the period under review, we focused on strengthening our leadership and building capacity for improved service delivery

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Training through the Justice College

ACHIEVEMENTS

The Department improved capacity through training in strategic and operational areas

Trainees No of courses presented

Total delegates trained

Magistrates 35 1 668Clerks and other officers of the court 37 926Registrars of the High Court 1 10Maintenance officers 5 99Maintenance investigators 3 73Maintenance prosecutors 3 61Court interpreters 11 322Master’s personnel 14 371Prosecutors 54 1 452Managers in the department 13 313All officials (levels 2 to 8) 9 230Legislative drafters 7 88Total 192 5 613Target 5 000

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• The development and roll-out of the Integrated Case Management System (ICMS) that spans all disciplines of cases administered in the justice environment was finalised

– ICMS: 11 773 896 case and business transactions conducted through ICMS. (AR page 18)

– The Justice Management Information System (JMIS), which deals with extracting info for management purposes from the ICMS, was developed and rolled out in the previous years, is now fully functional. (AR page 53)


ICMS Usage Users Transactions

ICMS civil courts 1 783 41 498

ICMS small claims courts 791 45 187

ICMS criminal courts 3 447 277 694

ICMS Master’s offices 1 783 81 292

National Register for Sex Offenders 52 225

Justice Deposit Account System 2 183 11 328 000

• Challenges: IT infrastructure needed to support the roll-out of ICMS to courts is not fully funded; Existing servers and other systems are ageing and will need replacing; Further system development has been heavily affected by budget cuts. (Require about R128m)

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– Facilitating the resolution of civil and criminal cases (AR page 18, 112)• In 09/10 the performance data of the Department and the NPA has been aligned and

indicates that in contrast to previous financial years, more cases have been finalised in general (the finalisation rate improved by 12.5%) .

• In this regard the statistics indicate the court sat an average of 03:46 hours a day, enrolled 1 044 346 new cases and disposed of 1 065 269 cases, resulting in a positive clearance ration of 2%. (See next slide graphical illustration – this is dealt with in more detail by NPA)

• Positive also was that more use was made of Alternative Dispute Resolution mechanisms (ADRM) (increase by 31.1%) and that less cases were withdrawn (15.6% less) .

• Both lower and high courts maintained high conviction rates – High Courts: 87.7%; Regional Courts: 74%; District Courts: 90.5%.

• Sexual Offences Courts improved their conviction rate to 68%.• At 31 March 2010 there was 16.7% of backlog cases on the court rolls. (AR page 108)

There was a continuation in the reduction of the Regional Court Backlogs: 46 Regional Backlog Courts managed to remove 6 830 cases during the period under review. The outstanding cases were reduced by 2.1% for the Regional Courts. In total since the project was initiated in November 2006, 19 942 cases have been removed from the Regional Court Rolls (which contributed to a 21.5% decrease in the backlogs). (AR page 109)

• The number of backlog cases in the District Courts was reduced by 15.7%. (AR page 109)


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Overview of Court Performance

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FIFA World Cup Courts (AR page 73)

Key Activities during the planning of the FIFA World Cup led to the very successful coordination of the administration of justice and Cluster activities in this regard in 2010. During the period under review planning included:

• Identification of 56 courtrooms (37 district; 19 regional) as dedicated courts in nine host cities• Appointments of:

• 110 magistrates• 260 prosecutors• 110 Legal Aid attorneys• 93 foreign language interpreters • 110 local language interpreters• 1 140 court officials• 327 court orderlies

• The integration of departmental plans with Safety and Security Cluster plans through the National Joint Operational and Intelligence Structure (NATJOINTS).

• The training of foreign language interpreters in court processes and procedures, where required.

• The recruitment of staff to ensure fewer disruptions of normal day-to-day operations.

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• Protection and promotion of the rights of vulnerable groups (AR page 19, 78)• The Department continued to interact with other departments within the JCPS Cluster to

develop legislation, policies and programmes that are aimed at protecting and promoting the rights of children, the aged, the disabled, women, the poor and other disadvantaged groups. The Department facilitated the preparation of the implementation of the Children’s Act, 2005 and the Child Justice Act, 2008. A National Policy Framework (NPF) on Child Justice was drafted and work on a draft NPF for sexual Offences and a Restorative Justice Strategy continued.

• Children’s Cases:– 32 288 cases involving children were registered, 319 were diverted (pre-Child Justice

Act)– 71% of Children’s Cases finalised within 3 months

• The number of awaiting trial children were reduced by 50% in the 09/10year to less than 300

Domestic Violence Cases

Applications enrolled 291546

Orders granted 141159

Set aside 31154

Struck off 49366

Warrants for breach 14948


Maintenance Cases

Applications enrolled 189988

Orders by default 9420

Section 31 orders by default 24494

Emolument orders 34165

Warrants of execution 2978

Attachments of debt 2049

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– Developing legislation (AR page 20, 141)• During the year under review various substantive Bills as well as subordinate laws

and Rules of Court (10) were dealt with.

• Bills introduced into Parliament included: – Constitution Seventeenth Amendment Bill (Municipal Functions)– Protection of Personal Information Bill– Protection from Harassment Bill– Prevention and Combating of Trafficking in Persons Bill

• Bills that were on the Department’s legislative programme for the year under review: – Recognition of Muslim Marriages Bill– Legal Practice Bill– Judicial Matters Amendment Bill– State Liability Bill– Prevention and Combating of Hate Speech, Racial Discrimination, Xenophobia and Related

Intolerance Bill– South African Human Rights Commission Amendment Bill


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Developing and promoting the Constitution (AR page 21)

• The Department continued with promotion of the guarantees in the Constitution through legislation such as Promotion of Access to Information Act, 2000 (PAIA), Promotion of Administrative Justice Act, 2000 (PAJA) and Promotion of Equality and Prevention of Unfair Discrimination Act, 2000 (PEPUDA).

– In the period under review the Department designated all Magistracy Courts as Equality Courts and has seen an increase in the number of cases enrolled at these Courts. Cases increased from 447 in 08/09 to 508 in 09/10

– The training material for the PAJA Act was completed during the preiod under review

– The Department also increased its programmes aimed at educating the public on justice and constitutional matters and strengthening participatory democracy (in partnership with the European Union and the Foundation for Human Rights) by providing support to civil society to protect and promote a human rights culture.

– In the period under review, 166 schools were visited. Approximately 43 000 people have been reached so far in terms of promoting awareness of constitutional rights. Additional Funds were received from the EU in January 2010 to support our constitutional development.

– The department ran radio shows to educate the public about justice and constitutional matters (next slide)


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Justice on the Airwaves and Law on Call were produced as a result of a partnership between the department and the SABC to educate the public about the values contained in the Constitution and the process of accessing justice services.

Public Education and Communication (AR page 59)

Station Episodes

Zibonele Community Radio 26Bush Radio 26Radio 26Jozi FM 26Mosupatsela Community Radio 6 15QwaQwa Community Radio 26Univen Community Radio 26Unitra Community Radio 22Vukani Community Radio 22Nkqubela Community Radio 22Community Radio 26Moutse Community Radio 19Youth Radio 14Community Radio 26Radio Mafisa 16

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Station EpisodesUmhlobo Wenene 9Thobela 11Phalaphala 7Monghana Lonene 13Ukhozi 12Lesedi 6Ligwalagwala 11Ikwekwezi 13Total 82


Justice on the Airwaves

Law on Call

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Improving Access to Services of the Master

• There are 14 Masters offices in the High Courts

• All Magistrate Courts are designated as service points for Master’s Services• To improve access to the Guardian’s Fund, the department is integrating the Guardian Funds

system with the ICMS system, which will lead to Guardian Funds services delivered in 480 magistrate’s courts.

• Aspects pertaining to Deceased Estates are contained in the next slide.

Challenges:

Appointment of Assistant Masters in magistrate courts is delayed by lack of funds

Accommodation (office space and infrastructure) is a challenge in certain courts


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Guardians fund Growth in beneficiary receipts and payments


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– Supervising the administration of Deceased and Insolvent Estates (AR page 21)

• In the period under review the Department experienced an increase of 10% of Estate Matters received (130 635 new matters of which 88 551 were files on estates of less than R125 000). Of the 88 551 estates 92% were finalised.


Deceased and Insolvent Estates

• Letters of execution issued: 37 989• Letters of appointment issued: 63 057

CasesNo of cases

finalised% finalised

Estates < R125 000 88 551 81 122 92%

Estate > R125 000 42 084 29 092 69%

Total new estate matters 130 635 110 214 84%

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– Providing Legal Advice Service and Protection of all Organs of State (AR page 21)

• To deal with the functions in this regard the Department expanded the establishment of the State Attorney by 209 posts (unfortunately not all filled due to lack of funds) and appointed 24 advocates to deal with 648 High Court matters.

• The Department won 14% of the cases, lost 6%, settled 18% out of court, 7% awaiting judgment and 55% judgments postponed (mainly because there are not enough judges, particularly in North and South Gauteng and because of the level of complexity of the cases)

• The Department saw an improvement of the provision of advice and certification of international agreements and legislation:

– 294 requests for certification of international agreements received and 285 finalised

– 187 requests for the certification of bills and regulations received and 155 finalised


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– Transformation of the Legal System

• During the period under review, State Legal Services issued 5 804 briefs to Black practioners to the value of R261, 941 million (74% of the total)

• Other Legislative instruments that will support transformation within the legal system are:

The Legal Practice Bill

Superior Courts Bill

Constitutional Amendment Bill


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– JCPS Cluster Activities (AR page 22)

• The Minister and the Department plays a leading role in the Cluster and the coordination of activities to ensure that all people in South Africa are and feel safe . The mandate of the Department relating to the upholding of the protection of the Constitution and the Rule of Law was continued through collaboration within the JCPS Cluster.

• Part and parcel of the activities in this regard was the continuation of the implementation of the Seven Point Plan following the finalisation of the CJS Review research and investigations and the development of the JCPS Delivery Agreement dealing with the Government’s Cluster priorities and outcomes.

• Through the CJS we have adopted an integrated approach to ensure that the CJS is a holistic continuum that stretches from where a crime is committed to the police, to the prosecutors, to the courts, to Social Development and Correctional Services, and to restoration and integration back into the communities.


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• In terms of the implementation of the Seven Point Plan various protocols were developed and implemented to enhance the integration and effectiveness of the CJS, screening mechanisms and the trial readiness of cases, as well as a protocol on the taking and processing of forensic samples, and the Court Protocol on Legal Aid Cases, improving coordination between SAPS, NPA, Legal Aid South Africa, DCS, DoJ&CD and the Judiciary as well as Departments such as Health, Social Development, Home Affairs and Education.

• The video postponement system that was developed between courts and correctional facilities is now available in 45 courts.

• An Inter-sectoral Management of Remand Detainees Task Team, at deputy director-general level, has been appointed to fast-track initiatives regarding improving the awaiting trial detainee situation.

• Various standard operating procedures (SOPs), manuals and policies have been developed, e.g. case flow management.

• Bail management has been strengthened and the use of information technology systems to provide an integrated management information system to the cluster departments and the Justice Crime Prevention and Security (JCPS) Cluster overall.


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– Transformation of the Judiciary (AR page 25)

• Significant progress has been made in ensuring the entrenchment of the independence of the judiciary and the rule of law and substantial work been done relating to the Constitution Amendment Bill and the Superior Courts Bill.

• The Office of the Chief Justice has been strengthened as a precursor in the transition to the establishment of a separate Court Administration for the Judiciary.

• A number of staff have been deployed to the Office of the Chief Justice to assist with the strengthening of the Office of the Chief Justice and to deal with research and the development of proposals and action plans.

• Principles to underpin policy in the above have been developed.


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Extension of Civil Jurisdiction

Terms of Reference for the Civil Justice System Review were developed and the preparation for the extension of Civil Jurisdiction to the Regional Courts received attention.

The Jurisdiction of Regional Courts Amendment Act makes it possible for Regional Courts to hear divorce matters. Implementation Plans required capacitating of Regional Court staff to handle these cases; training; as well as accommodation for the additional staff.


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2009/10 BUDGET AND EXPENDITURE OUTCOME(This is dealt with in the Annual Report as Part 4, as part of the

Annual Financial Statements)

3. FINANCIAL REPORT

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• The Department received substantially less funding than was requested to deal with all its increased responsibilities, including the implementation of legislation.

• Improved departmental spending – expenditure increased from 99,4% in 2008/09 to 99,8% in 2009/10.

• Under spending decreased with R28 million from R41,4 million in 2008/09 to R13 million in 2009/10.

• Spending on compensation of employees at 99,5 % of parliamentary approved budget whilst absorbing carry through costs of OSD expenditure within baseline through reprioritisation and cost curtailment.

• Goods and services spending at 100%.• Reprioritisation to fund Guarding Services and Capital Works.

3. FINANCIAL REPORT

Key Observations: 2009/10 Financial Year

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Department of Justice and Constitutional Development – Excluding NPA (AR page 213 par 1.4)

3. FINANCIAL REPORT (cont)

2007/08 2008/09 2009/10

Final Budget 5,677,401 6,403,716 7,528,269

Less Expenditure

5,513,497 6,362,176 7,514,440

Balance 163,904 41,540 13,829

Percentage Expenditure

97,1% 99,4% 99.8%

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ProgrammesFinal

Appropriation

Actual expenditur

e

Expenditure as a % of final

appropriationVariance

Programme 1: Administration1 044 387 1 031 487 98.8% 12 900

Programme 2: Court Services 4 088 008 4 087 100 99.9% 908

Programme 3: State Legal Services 548 583 548 564 100% 19

Programme 4: National Prosecuting AuthorityProgramme 5:Auxillary and Associated Services 1 847 291 1 847 289 100% 2

Total 7 528 269 7 514 440 99.8% 13 829

Departmental expenditure (R’000) (AR page 239)

Voted Funds Report

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Expenditure per Economic Classification (AR –page 240)

Budget R'000

Expenditure R'000

Percentage Actual Spend

Available Funds R'000

Current payments

Compensation of employ ees 2,739,932 2,727,382 99.5% 12,550

Financial transactions in Assets & Liabilities 1,844 1,842 99.9% 2

Interest and rent on land 4,624 4,624 100.0% 0

Goods and services 2,625,542 2,625,520 100.0% 22Total current payments 5,371,942 5,359,368 99.8% 12,574Transfers and subsidies to:

P rovinces and Municipalities 82 80 97.6% 2Depart. Agencies & accounts/Municipalities 1,397,671 1,397,334 100.0% 337Foreign Gov and International Organisations 13,127 13,127 100.0% 0Non- profit institutions 2,651 1,754 66.2% 897Households 32,492 32,490 100.0% 2Total Transfers and Subsidies 1,446,023 1,444,785 99.9% 1,238 Payments for capital assets Buildings and other fixed structures 621,673 621,672 100.0% 1 Machinery, Equipment and Motor Vehicles 84,925 84,924 100.0% 1Software and other intangible assets 3,706 3,691 99.6% 15Total payments for capital assets 710,304 710,287 100.0% 17

7,528,269 7,514,440 99.8% 13,829

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2006/07actual

2007/08actual

2008/09actual

2009/10actual

Tax revenueFines, penalties and forfeits

262 616 238 025 271 508 296 410Non-tax revenueInterest dividends and rent on land 13 394 48 700 44 872 16 821Sale of goods and services other than capital assets 10 786 14 027 13 248 43 659Transfers received - 411Sales of capital assets (capital revenue) - - 11 264Financial transactions (recovery of loans and advances)

32 708 11 682 22 872 14 051Total departmental receipts

319 510 312 434 352 511 371 615

Departmental revenue (R’000) (AR page 29 )

• Fines, penalties and forfeits is revenue from court fines, penalties on appeals lost and court orders as well as forfeits or unclaimed monies.

• Interest represents interest made on bank accounts and debt.• Sales include revenue from legal fees, photocopies, licences and waste paper.• Transfers received refer to monies received as donations other than RDP-funds.• Sale of capital assets is revenue obtained through the sell of capital assets.• Financial Transactions mainly refer to revenue from the recovery of loans, parking, cash surpluses.

Voted Funds Report

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Transfer Payments (‘000) (AR page 29)

Name of institution Amount transferred

Estimated expenditure

South African Human Rights Commission 70 120 70 120

Commission on Gender Equality 49 112 49 112

Special Investigating Unit 154 737 154 737

Legal Aid Board 917 408 917 408

Public Protector 108 860 108 860

Represented Political Parties’ Fund 92 823 92 823

Education, Training and Development Practices SETA 4 274 4 274

President’s Fund 1 -

Total 1 397 335 1 397 334

Voted Funds Report

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AUDIT OUTCOMES

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– Ensuring effective and efficient management of the Department and its resources (AR page 17)

• During the period under review, the Department sustained its programmes to improve processes and systems of financial and asset control.

• The Department managed a remarkable spending rate of 98% of the R7.5 billion (adjusted vote fund). The operational cost, delayed payments for security at courts and delayed finalisation of renovation and maintenance projects by DPW contributed to an under spending of only 0.2%. Significant funds were spent on improving the management of courts (54.4%).

• The Department now has a proper fixed asset register based on physical verification covering all locations. The total number of assets registered stands at 459 044 (value R1.3 billion). (AR page 18)

• The Department has continued with the priority objective to improve internal control systems and achieve unqualified audit reports in all its financial, non-financial and human resource areas. However some challenges in this regard will be dealt with later.

• Grievances and Disciplinary Cases: 181 of 226 registered Disciplinary Cases finalised; 187 of 220 grievances finalised. (AR page 39)


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2000/01 2001/02 2002/03 2003/04 2004/05

Disclaimed audit opinion

Qualified audit report:1. Paymaster General2. Revenue3. Suspense & disallowance accounts

Qualified audit report:1. Suspense & disallowance accounts

NAQ NAQ

2005/06 2006/07 2007/08 2008/09 2009/10

Qualified audit report:1. Third Party Funds

Qualified audit report:1. Third Party Funds2. Assets

Qualified audit report:1. Third Party Funds2. Assets3. Commitments

Qualified audit report:1. Third Party Funds2. Assets3. Leases (New)4. Leave (New)5. Irregular expenditure condoned (Finance leases) (New)

Qualified audit report: 1. Third Party Funds2. Irregular expenditure (PPPFA non-compliance) (New)

Audit Qualifications History

Audit qualifications for the last 10 years


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• The Strategic Turnaround Plan targets key failure points in governance, people management, methods and practices as well as addressing the impact on changes in the wider operating environment.

• On a detailed level, specific action plans have been drawn up to address perennial hotspots such as Supply Chain Management, Asset Management and Management of Third Party Funds.

• As a result , 4 out of the previous 5 audit qualifications (2008/09) were resolved through the following initiatives:

• Asset Turnaround project (see next slide)• Leases project• Leave management initiatives• Training of financial staff in Regions & Branches

Achievements – DoJ & CD Turnaround Plan


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Asset Turn Around Project


Route map towards and unqualified audit opinion in respect of assets

FY06/07

FY07/08

FY08/09

Goal for FY 09/10

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During the 2009/10 financial year the Department embarked on the following projects to eliminate previous financial audit qualifications as well as other critical areas of concern highlighted by the Auditor General:

– Asset Turnaround project (Multi-year initiative)– Leases project (One year project)– Training to Branches and Regions with regards to the submission of accurate and reliable

information for the compilation of Financial Statements (One year initiative)

As a result of the aforementioned initiatives these issues were resolved, however sustainability thereof is a challenge due to the following:

– High staff turnover (CFO vacancies - 29%;)– Lack of competencies and skills– Insufficient financial management capabilities– Financial constraints– Third Party Fund PPP – National Treasury possible funding suspension

Sustainability of previous initiatives


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Third Party Funds (TPF)

i. Departmental Revenue, ii. Contingent Liability Disclosure note and iii. Receivables for Departmental Revenue Disclosure note • Previous audit qualification

• Qualification refers to the impact of the financial administration of the Third Party Fund (TPF) on the Vote Account

• Awarding of tender for a service provider to produce reliable, accurate and complete AFS from 2007/08 – 2010/11; (Subject to availability of funding from National Treasury). Tender evaluation in final stages.

• The establishment of TPF as a Trading Entity in order to resolve the lack of a legal framework for separate reporting (In progress)

• Public Private Partnership (PPP) (In progress)• Electronic Maintenance Payments (Centrally) (see next slide)• Piloting Decentralisation of the Electronic Maintenance Payments to improve turnaround

times

Vote Account Qualifications


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Growth in Electronic maintenance payments and Regional Distribution

2. OPERATIONAL HIGHLIGHTS (cont)3. FINANCIAL REPORT (cont)

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Irregular Expenditure * New audit qualification • The qualification on irregular expenditure relates to payments made in contravention

with the Preferential Procurement Policy Framework Act – the Department applied the BBBEE Code of Good Practice instead of the PPPFA regulations. These contracts were entered into between the period 1 July 2005 to 31 December 2009 (BIDS) and with regards to quotations 2005 to date. The audit qualification relates to the fact that the amount of irregular expenditure from 2005 could not be determined by the time of finalizing the audit report.

• Due process in quantifying the full extent of this non-compliance is underway where after National Treasury would be approached as per the Treasury Guidelines.

• The department is resolving the non-compliance through training initiatives.

Vote Account Qualifications


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Key Initiatives to Achieve NAQ

1. DoJ&CD is one of 10 Departments included in the National Treasury’s Strategic Support Plan

National Office of the CFO – Formulating and guiding, consolidating and monitoring the implementation of the Turnaround Initiatives (Monthly Financial Management Monitoring Matrix) – Template derived from Financial Management Maturity Survey conducted by NT Basics of good financial management)

1st survey – 20082nd survey – 2010Monthly report back on action plans to address deficiencies

Root cause analysis done 2009 includedSCOPA resolutions – progress included AG management letter – findings included AG Key Controls Reviews - includedCompliance monitoring – includedAFS Key Disclosure notes – included


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1. National Treasury Strategic Support Plan

The objectives are to: • Enhance financial maturity in general• Improve audit outcomes of the department• Ease financial control in general

Focus areas:• Asset management (sustainability of 2009/10 initiative)• Third Party Funds • Finance leases (sustainability of 2009/10 initiative)• Goods & Services• Compensation of employees• Transfer of payments• Performance Information• Internal Audit 1. Risk Management


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1. The Monthly Financial Management Monitoring Matrix (MFMMM) replaces Audit Action Plans – components included:

• SCM/Asset Management• Expenditure Management• Liability Management• Revenue Management• Human Resources / Compensation of Employees• Transfer Payments• Other focus areas• Performance Information

2. Regions / Branches Monthly Financial Management Monitoring Matrix (MFMMM) – monthly reporting by regions / branches for consolidation by NO CFO champions.

1. The Appointment of Project Manager in the Office of the DG for overall monitoring of Turnaround Initiatives.


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1. Interim Capacity Support – Identified focus areas

1. CFO Training and Capacity Building Initiatives Training Initiatives :

o Cash Hall Training ( Vote, TPF & SCM)o SCM (Preferential Procurement Policy Framework )o Finances for Court/Office Managers (Budgets, Internal Controls, SCM, Payments,

Receipts legislation and policies)

7. Audio Visual Aids Distribution to All Area Court Managers, FOMS and Regional Functionaries

o Leases – Procedure & Payment Presentationo BAS – Financial transaction capturing and report requesto Cash Hall Procedures – Payments, Receipts, Petty Cash, PAYE and Agency Services


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Forensic Audit Investigations for 2009/10

• In the 2009/10 financial year the Department has received 149 cases of which 86 cases were received during November 2009 from the Office of the Public Service Commission.

Of the 86 cases received: 31 cases have been finalized 13 have been referred to SAPS for criminal investigation. All cases referred to the SAPS are work in progress.

• During the same period 15 cases from different financial years were referred to the Legal Section for Civil Recovery.

• During the same period 14 cases were referred to the responsible managers in the Department for further action. However, the cases referred to the responsible managers for further action covers different financial years. The line managers took further action by instituting the necessary sanctions in dealing with recommendations made by the Forensic Audit Unit.

• The cases referred for disciplinary proceedings involve 28 officials. The status of the disciplinary proceedings is as follows: 10 officials received Written warnings; 3 officials have been dismissed; 3 officials were arrested for fraud and corruption; 1 official was not found guilty; 1 official`s matter is still pending before the Labour Court; 3 officials have resigned as a result of investigations; and 7 disciplinary proceedings are still work in progress.

Action Steps pertaining to Fraud and Corruption


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Misconduct Cases 2009/10



Types of misconduct cases Total

Unauthorised absence 23

Fraud 23

Loss of state money 26

Theft

16

Negligence 13

Abscondment 13

Insubordination 12

Abuse of state property 16

Corruption 7

Alcohol abuse 2

Other 30

Total 181

The 30 other misconduct cases referred to in Table 23 include charges such as nepotism, political activities during working hours, conspiracy to commit theft, refusing to carry out instructions, bringing the department into disrepute, unauthorised expenditure and loss of an estate file. A total of 45% (79) of the misconduct cases involve action taken against officials in breach of regulations relating to the management of state assets.

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Preventative Measures for Fraud and Corruption

• The current Fraud Prevention Plan has been reviewed and the Whistle blowing Policy has been separated to focus more on implementing the Protected Disclosures Act and reporting to the SAPS in terms of the Prevention and Combating of Corrupt Activities

• The department is actively involved in the anti-corruption structures of the government, that include the Anti-Corruption Coordinating Committee (ACCC), the Governance and Administration Working Group on implementing the anti-corruption action plan of the public service to address initiatives identified by government, the National Anti-Corruption Forum (NACF).

• The successes up to date in the public service forum that the department is participating in include the development of an Anti-Corruption Programme Course for anti-corruption practitioners in the public service. The course has been accredited at NQF level 4 and is intended to assist officials within the departments to implement measures to prevent, detect and monitor corruption related behavior as well as reporting.

• NACF is initiating the participation of the private sector, public sector and civil society in collaborating on combating corruption in society. The department is participating through the Deputy Minister of DOJ&CD and officials in Risk Management Chief Directorate. A task team to ensure proper implementation of resolutions of the NACF has been tasked to formulate a concept document that will be adopted in due course.



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Preventative Measures for Fraud and Corruption

A three day workshop for all officials covers anti-corruption and internal controls:– Creating an ethical organizational culture that is consistent with the values and principles that are

embedded in the department’s Strategic Plan(MTSF);– The legal definition of corruption and the understanding or corruption to interpret ethical behavior

that may amount to corruption and or fraud;– The legal obligation of reporting the criminal offence of corruption by managers to the Police Station in

compliance with the Prevention and Combating of Corrupt Activities Act 12 of 2004;– The management of ethics that include the keeping and maintaining of a gift register for the offices,

compliance with the Departmental Financial Instruction on management of gifts(chapter 20 of DFI), compliance with the Code of Conduct of the Department, focus on service delivery in terms of developing service standards, educating and encouraging officials on ethical conduct when assisting members of the public who are access of centres.

Other activities to combat fraud and corruption are discussed under the Audit Turnaround Plan



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MEDIUM TERM ESTIMATES


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MTEF BUDGET ALLOCATIONS:Year on Year Growth

2009/2010‘000

2010/2011‘000

2011/2012‘000

2012/2013‘000

Approved budget

Year On Year Growth

11,390,708 12,180,353

6,9%

13,187,874

8,3%

13,982,456

6%


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Reduced budget allocations … do more with less… Minister of Finance

2009/2010‘000

2010/2011‘000

2011/2012‘000

2012/2013‘000

2009 MTEF

2010 MTEF

Total Cuts

R202m R237m

R195m

R432m

R251m

R230m

R481m

R264m

R305m

R569m

Reducing budgets with R1,482 billion …. But expected to absorb inflationary pressures and still expand services


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Budget Allocations per Programme

2009/10 2010/11 2011/12 2012/13

Revised Medium-term estimates

estimate MTEF Baseline

1. Administration 1,436,840 1,472,940 1,604,196 1,693,061

2. Court Services 3,524,604 3,871,934 4,241,061 4,555,014

3. State Legal Services 595,093 644,102 677,942 711,822

4. National Prosecuting Authority 2,382,238 2,439,624 2,586,841 2,718,310

5. Auxiliary and Associated Services 1,782,244 1,821,883 1,973,672 2,052,379

Total for programmes 9,721,019 10,250,483 11,083,712 11,730,586

Direct charge against the National Revenue Fund 1,669,689 1,929,870 2,104,162 2,251,870

Judges' and Magistrate salaries 1,669,689 1,929,870 2,104,162 2,251,870

Departmental total 11,390,708 12,180,353 13,187,874 13,982,456


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Budget Allocations per Economic ClassificationProgramme 2009/10 2010/11 2011/12 2012/13

Economic classification '000 '000 '000 '000Current payments 7,829,498 8,137,191 8,702,429 9,220,439 Compensation of employees 4,681,640 4,987,079 5,358,854 5,686,978 Goods and services 3,147,290 3,149,513 3,342,744 3,532,594 Interest (Incl. interest on finance leases) 568 599 831 867 Transfers and subsidies 1,307,946 1,485,637 1,617,744 1,673,961 Provinces and municipalities – – – –Departmental agencies and accounts 1,280,974 1,448,389 1,577,527 1,631,836 Public corporations and private enterprises – – –Foreign governments and international organisations 4,494 4,719 4,955 5,203 Non-profit institutions 2,651 – – –Households 19,827 32,529 35,262 36,922 Payments for capital assets 583,575 627,655 763,539 836,186 Buildings and other fixed structures 445,844 479,765 598,515 694,441 Machinery and equipment 135,785 147,822 164,936 141,656 Cultivated assets – – –Software and other intangible assets 1,946 68 88 89 Land and subsoil assets – – – –

1,669,689 1,929,870 2,104,162 2,251,870

Total 11,390,708 12,180,353 13,187,874 13,982,456

6.9% 8.3% 6.0%

Indicative Medium-term allocation

Year on Year Growth

Direct Charges

Growth in personnel cost with limited growth in operational cost funding


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Medium Term: Spending Pressures

• Additional accommodation– Capital investment in new court infrastructure and additional office accommodation.

• Personnel establishment expansion – DOJ currently funding new courts with no concurrent additional allocations for personnel and operational

expenditure.– Regional capacitation – additional personnel for regions including court personnel (Interpreters, finance

and supply chain management personnel– Internship, learning and development and recruitment

• Technical personnel adjustments

• Compensation of employees – OSD for legally qualified personnel Phase 2 DOJ/NPA/LASA and entities

• Information Technology– Improve business productivity – Additional Investment in IT infrastructure – Hardware renewal, network infrastructure, data security and

expansion of roll out of IT and information systems (E-scheduler, JDAS and GFS etc)– maintenance, licensing, hardware renewal and backup


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• Implementation cost of new and proposed legislation – – Civil Jurisdiction of Regional Courts. – Child Justice and Children's Act– Traditional Courts Bill – Superior Courts Bill - High Courts for Mpumalanga and Limpopo-

• Security and risk management

– Secure 127 justice service delivery points with integrated security infrastructure – Enhancing security of personnel, departmental records and state assets– Cash in Transit, Guarding Services and Security

• Review of the Criminal Justice System – – Implementation cost of recommendations after Cabinet and Parliamentary endorsement and approval

• Increased proximity of courts services to all, especially in townships and rural areas – Replace 46 of 230 branch courts to ensure that they provide full court services 2010/1– Introduce multilingualism in courts


Medium Term: Spending Pressures

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Medium Term: Spending Pressures - Other

• Filing - Document and Record Management• Enhancement of Constitutional Development programmes• Develop and implement the departments oversight mandate and functions• Enhancing communication services• Language Services at Court• Library Services in various provinces• Start-up and implementation cost of newly proposed Court Services Agency• Enhancing training and development capacity – Justice College, Judicial Education Institute

and HR• Civil Justice Review• Transformation of the Judiciary in relation to the establishment of the Court Administration

Agency


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Some Challenges (AR page 23)

• South Africa and its justice system has to contend with the fact that our society still comprises many poor people, many living in townships and rural areas, and are often trapped in prolonged periods of unemployment. This leads to the people being more exposed to human rights abuses and high levels of crime. It also impacts on the victims. As in many developing democracies, resource allocation is complex and difficult to balance, however the Department’s budget of R7.4 billion still rates as one of the smallest in the share of the national vote. This means the Department does not have sufficient resources to fulfill all its functions and effectively implement all its strategic objectives. This has a negative impact on the expansion of justice services, the capacitating of the organisation, training of its employees, maintenance of its capital infrastructure, modernisation of its information technology and its delivery of justice services to the public.

• Race and gender transformation of the bench remains an important constitutional imperative. While the Judicial Service Commission continues to play an important role in establishing a judiciary which is representative of the South African society, and has now for the first time since its establishment in 1994 recommended the appointment of the first woman to the office of the Judge-President, this still remains a focus area.

4. CHALLENGES

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The Annual Report tabled provides insight into the work we are doing as a department, the challenges we face and the prospects for the future as we strive for justice for all.

We would like to take the opportunity to thank all stakeholders and partners, both in and outside government, for their support and for holding us accountable to ensure we promote the concept of justice in a manner that enhances our constitutional democracy, and improves the wellbeing of all our people.

5. CONCLUSION

THANK YOU & QUESTIONS

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portfolio committee on justice and constitutional development department of justice and...

Documents

justice services

justice andimproving

quality justice

justice systemcatering

service courts

branch courts

constitutional democracy

following programmes