1

NPAPRESENTATION TO

PORTFOLIO COMMITTEE2 MAY 2007

CEO’s Report

Marion Sparg

2

Presentation• Auditor General’s Report• Budget and Expenditure• Establishment & Vacancy Rate• Employment Equity• Recruitment Progress• Labour Relations• Job Evaluation• Financial Disclosures• Loss Control• Vetting Statistics• Communications

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AG’s Report

• The NPA has achieved an unbroken 5-year record of an Unqualified Report from the Auditor-General since it was required to produce its own financial statements in 2001

• Key indicator for performance of government departments and state institutions

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Budget & Expenditure

• 2005/6 Financial & Audit Report Overview

• 2006/7 Preliminary/Unaudited financial overview

• 2007/8 Budget allocation

• MTEF Budget allocation

5

2005/6 Financial Overview

AdjustedAppropriation Virement

FinalAppropriation

ActualExpenditure Variance

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

Current payments          

Compensation of employees 905,156 -4,967 900,189 900,189 -

Goods and services 431,039 51,208 482,247 434,682 47,565

Financial transactions in assets and liabilities - 13 13 13 -

Transfers & subsidies          

Provinces & municipalities 1,580 1,520 3,100 3,025 75

Households 1,055 1,951 3,006 3,081 -75

Payment for capital assets          

Buildings & other fixed structures - 15,000 15,000 15,000 -

Machinery & equipment 15,980 28,156 44,136 43,933 203

Total 1,354,810 92,881 1,447,691 1,399,923 47,768*

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Budget split 2005/06

482,247 , 33.3%

6,106 , .4%

59,136 , 4.1%

900,189 , 62.2%

Compensation of employees

Goods and services

Transfers & subsidies

Payment for capital assets

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Budget re-prioritisation 2005/6

Received R77m from DOJ&CD iro:• R9.5m employer contributions to GEPF• R18m State Attorney Legal Fees• R15m GG Accounts• R2.5m implementation of Job Evaluation results• R22m Specialised Vehicles for DSO, WPU, NPS

& Security and Risk• R10m – Computer equipment

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ENE 2006/7

2,890,000, 0.1%

458,032,000, 29%

16,944,000, 1.1%

1,104,196,000, 69.8%

COMPENSATION OF EMPLOYEES

GOODS AND SERVICES

MACHINERY & EQUIPMENT

PROVINCIAL AND LOCAL GOVERNMENT

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ENE Budget split 2006/07

2,890,000, 0.1%

458,032,000, 29%

16,944,000, 1.1%

1,104,196,000, 69.8%

COMPENSATION OF EMPLOYEES

GOODS AND SERVICES

MACHINERY & EQUIPMENT

PROVINCIAL AND LOCAL GOVERNMENT

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Monthly Exp vs Cash

Flow Projections

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Actual Expenditure

Cash Flow Budget

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2006/7 Budget & Exp overview

Item_Level_3

Actual Expenditure as

at 30 March 2007

Adjustment Estimate

Additional funds from

DOJ&CDTotal Allocated

Budget Variance%

Spent

BUILDINGS & OTHER FIX STRUCT 0 0 0 0 0

COMPENSATION OF EMPLOYEES 1,059,247,591 1,104,196,000 0 1,104,196,000 44,948,409 96%

DEPARTMENTAL AGENCIES & ACCOUNT 0 0 0 0 0

FIN TRANS IN ASSETS&LIABILITIE 11,110 0 0 0 -11,110

GOODS AND SERVICES 450,742,446 458,074,70012,348,76

6 470,423,466 19,681,020 96%

HOUSEHOLDS 2,561,848 407,763 0 407,763 -2,154,085 628%

MACHINERY & EQUIPMENT 17,187,445 16,944,000 0 16,944,000 -243,445 101%

PROVINCIAL AND LOCAL GOVERNMENT 1,092,896 2,439,537 0 2,439,537 1,346,641 45%

SOFTWARE & OTHER INTANGIBLE AS 0 0 0 0 0

Grand Total1,530,843,33

61,582,062,00

012,348,76

61,594,410,76

663,567,43

0 96%

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2006/7 Budget & Expenditure Overview

Still to be processed for the 2006/07 financial year Total Amount

SA Legal Fees 4,529,358

GG Interface 1,500,000

Request for Roll-overs

Capital - Furniture 6,619,741

Dispute 46,500,000

59,149,099

Less: Currently Available 63,567,430

63,567,430

Anticipated under spending for the 2006/07 Financial Year 4,418,331

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Request for additional funding from DOJ&CD

2006/07

• R15m - Outstanding rental payable to the Department of Public Works

• R7m - State Attorney Legal Fees

• R22m - Sale and leaseback contract

• R6m - Additional Security equipment

• R18m - IT Equipment

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Additional Funding Received from DOJ&CD

• On 29 March 2007 received R81m from DOJ&CD for capital works (Innes Chambers in Johannesburg, new offices for DSO in Durban and East London)

• Also received R12m for purchase of IT equipment

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Actual Expenditure2004/05 – 2006/07

Prior years Actual Exp

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

2004/05

2005/06

2006/07

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MTEF Allocations

NPARevised Estimate

R Thousand 2006/07 2007/08 2008/09 2009/10

Public Prosecutions 1,115,975 1,265,099 1,468,754 1,686,412

Witness Protection Programme 59,271 104,435 126,171 139,744

Directorate of Special Operations 352,900 373,100 414,650 469,555

Asset Forfeiture Unit 53,916 62,057 75,739 85,200

Total 1,582,062 1,804,691 2,085,314 2,380,911

Medium -term expenditure estimates

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MTEF Allocations Cont.MTEF Allocation Letter 2007/08

R Thousand 2007/08 2008/09   2009/10

Additional Accommodation - NPA 25,000 30,000

21,000

Witness Protection Unit (Compensation of Employees & Goods and Services)

40,000 38,000

40,000

NPA - Increase in capacity (Compensation of Employees & Goods and Services)

10,000 22,000

30,000

Reducing criminal case backlog (Compensation of Employees & Goods and Services)

45,000 80,000

108,000

  120,000 170,000 199,000

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MTEF Allocations Cont.Business Unit Budget 2006/07 Budget 2007/08 % Increase

ASSET FORFEITURE UNIT 43,267,916 51,888,991 19.9%

CORPORATE SERVICES 302,286,893 339,434,471 12.3%

DIRECTORATE OF SPECIAL OPERATIONS 210,391,793 252,615,301 20.1%

NATIONAL PROSECUTING SERVICES 816,484,676 941,271,356 15.3%

OFFICE OF THE NDPP 9,310,246 9,848,861 5.8%

COMMUNICATION UNIT 8,122,611 11,309,968 39.2%

INTEGRITY MANAGEMENT UNIT 9,440,617 12,252,054 29.8%

PRIORITY CRIME LITIGATION UNIT 7,449,517 8,790,488 18.0%

SEXUAL OFFENCES & COMM. AFF UNIT 19,548,317 25,528,716 30.6%

SPECIALISED COMMERCIAL CRIME UNIT 46,048,622 54,499,039 18.4%

WITNESS PROTECTION UNIT 63,210,792 97,251,756 53.9%

Grand Total 1,535,562,000 1,804,691,000 17.5%

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Establishment & Vacancy Rate as at 1 February 07

BUSINESS UNIT APPROVED NO OF POSTS FILLED VACANT VACANCY %

AFU 145 76 69 47

WPU 148 40 108 73

NPS 3498 2935 583 16

DSO 815 450 365 45

SOCA 65 28 37 57

SCCU 152 89 63 41

PCLU 8 6 3 38

IMU 27 18 9 33

NDPP 13 10 4 31

CS 355 217 138 39

TOTALS 5248 3874 1374 26

Percentage 26.18%

Note: approximately 1200 posts created late 2006 and early 2007 in response to additional MTEF allocations.

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Employment Equityas at 1 February 2007

African Asian Coloured White Non-Permanent

Permanent Grand Total

UNIT M F M F M F M F

AFU 15 15 6 6 1 6 15 14 2 76 78

CS 84 87 6 3 17 7 13 27 27 217 244

DSO 152 76 15 13 27 20 100 48 4 447 451

IMU 8 9 0 0 0 0 1 0 1 17 18

NDPP 2 5 0 1 0 0 2 0 1 9 10

NPS 1061 714 55 134 104 151 355 522 163 2935 3096

PCLU 1 1 0 0 1 0 3 2 3 5 8

SCCU 30 22 2 7 3 4 21 13 6 96 102

SOCA 10 18 0 0 0 3 1 4 15 28 43

WPU 9 9 0 4 5 1 4 8 0 40 40

Total 1374 964 84 168 159 190 517 643 226 3874 4100

%

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Employment Equity Cont.

African % Asian % Coloured % White %

AFU 38.5 15.4 9.0 37.2

CS 70.4 3.6 9.7 16.3

DSO 50.5 6.2 10.4 32.8

IMU 94.4 0 0 5.6

NDPP 70.0 10.0 0 20.0

NPS 57.3 6.2 8.2 28.3

PCLU 22.2 11.1 11.1 55.6

SCCU 51.0 8.8 6.9 33.3

SOCA 55.1 9.0 9.3 25.6

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Recruitment Campaign• Commenced with new recruitment drive in October 2006• Deployed new technology (automated recruitment

system) and brought in 20 additional human resources on contract basis to speed up response handling

• Objectives were to reduce vacancy rate and increase personnel spending

• Started slowly by handling 468 CV’s in 1st week of campaign, growing to 5275 in 2nd week, 8796 in 3rd week and 15261 in weeks 4 & 5

• In November 2006, 30 375 applications were received and all were scanned and captured for interview purposes within 6 weeks

• In January 2007, 17 296 applications were received and 11 410 were scanned and captured

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Recruitment Cont.• Recruitment Drive Targets / Objectives

– Filling of 1374 current vacancies– Implementation of an automated recruitment system– Streamlined recruitment and appointment processes– Enhancement of Aspirant Prosecutor programme

• Recruitment Drive Progress / Highlights– Eradication of “backlogged” appointments during November 2006 (380)– Nov 2006 Campaign

• Applications related to 700 vacancies (30 300 Applications processed) • Short listing & Interviews taking place

– January 2007 Campaign• Applications related to 250 vacancies (24 000 Applications processed)• Short listing and Interviews Scheduled

– Automated recruitment system – First phase implementation completed– Appointments made since November 2006: November 101; December 115; Jan

61; February 26; March 129 (aspirant prosecutors only)

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“Revolving Door” Syndrome

• Whilst over 400 appointments made since November 2006, more than 80% of these consisted of internal promotions

• Every appointment creates a further vacancy & recruitment challenge

• Need new approach to grow overall size of the establishment

• Aspirant prosecutor/learnership (SAPS strategy)• Current approach has also increased average

cost per personnel due to increased number of senior appointments

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Magistrates’ Salaries• Salary disparities between prosecutors and

magistrates continue to present a major challenge

• Regional Magistrate now earns R458 813 compared to C5 prosecutor who earns R151 173 and D1 prosecutor who earns R196 503)

• Over last three years have lost 112 senior prosecutors (45 in 04/05; 21 in 05/06 and 43 in 06/07) to the magistracy

• Senior Prosecutors constitute 80% of new magistrates appointed

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TERMINATIONS REPORT 1 APRIL 2006 TO FEBRUARY 2007

 RESIGNATIONS

RETIREMENTS(AGE)

RETIREMENT ILL HEALTH

DEATH

DISMISSAL ABSCONDMENTSEARLY RETIREMENT

TOTALREASONS FOR RESIGNATIONS

AFU 8     1       9Better Remuneration

NPS 92 0 2 10 14 0 2 120Better Remuneration

DSO 12 0 3 0 3 0 1 19  

CS 36 0 0 0 1 0 0 3Lack of Training & Working Conditions

SOCA               0  

SCCU 3 0 0 0 0 0 0 3Better Remuneration

PCLU               0  

WPU               0  

IMU               0  

NDPP               0  

CEO               0  

188

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Labour Relations Report

Types of misconduct Male Female Total

Theft, bribery, corruption, defeating the ends of justice, dishonesty and fraud

9 4 13

Improper, disgraceful and unacceptable conduct at work 3 1 4

Poor performance 2 1 3

Negligence 2 1 3

Dereliction of duty 1 0 1

Possession of drugs and stolen dockets 0 1 1

Incapacity 0 1 1

Absenteeism 0 1 1

Grand Totals of disciplinary hearings/pending hearings 17 10 27

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Labour Relations cont.Active Grievances & Types of Grievances Male Female Total

Transfer 0 2 2

Merit awards 2 0 2

Merit assessments 1 2 3

Notch increments 0 2 2

Salary levels 0 1 1

Performance assessments 8 9 17

Promotion 1 0 1

Job Evaluation 9 6 15

Appointment 3 4 7

Victimisation 1 0 1

Total 25 26 51

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Labour Relations cont.

• Total number of conciliations recorded, including those carried over: 25

• Total no. of arbitrations recorded including those carried over: 17

• Total no. of disputes: 42– No. of disputes completed: 8– No. of disputes decided in favour of employees: 2– No. of disputes pending: 29– No. of disputes dismissed: 1– No. of disputes withdrawn: 2

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Job Evaluation• Process commenced in 2004• Currently NPA has completed evaluation of 99% of all posts• The final phase of evaluation of 1% is underway and consists of approximately 34

posts• Implementation of the results of evaluation has had to take place in phases due to

financial constraints, commencing in June 2005 and mostly finalised February 2007.– Phase1: Regional Court Prosecutors and Control Prosecutors; Junior State Advocates;

Relief Prosecutors – Phase 2: District Court Prosecutors; Advanced District Court Prosecutors, Head Control

Prosecutors, State Advocates, Senior Prosecutors, Senior State Advocates, Deputy Director of Public Prosecutions, Chief Prosecutors and a range of management and administrative support positions, Chief Investigating Officers, Senior Special Investigators, Special Investigators, Assistant Analysts and a range of other DSO operational support posts, senior management enforcement in AFU.

– Phase 3: Crime Analysts, forensic accountants, several DSO management positions, and range of management and other posts in Corporate Services.

– Phase 4: DSO Regional Heads, maintenance prosecutors and some posts in CS.– Phase 5: Management posts in CS and various administrative support posts.– Phase 6: WPU posts, court preparation officers and various administrative support posts.

• JE should be completed by 31 March 2007 & NPA will then move into a maintenance phase.

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Financial Disclosures

• NPA had 213 SMS members in 2005/6 FY

• 206 disclosed their financial status for 2005/6 FY

• 22 of these were received after due date

• Seven did not disclose; two had resigned; remaining five either on suspension, incapacity or maternity leave.

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Security & Risk

• Total no. of 118 loss control cases received for investigation with a value of R263 420,59. Have thus far recovered 32% or R84 163,77 from employees.

• 29 threats against employees of NPA investigated. Counter measures for protection implemented in 19 cases. Total value of employee protection provided is R3.2m.

• Total compliance with vetting requirements of 74% for all NPA personnel was achieved in this FY. (The DSO has compliance level of 100%.) This represents a 38% improvement in overall compliance for the 2006/07 FY and a reduction of 36% in the vetting backlog.

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Communications

• Results of a brand audit, December 2006:– Strengths: innovative, cutting-edge crime resolutions

tactics– Weaknesses: mostly internal staff-related issues– NPA should be professional, efficient, unbiased,

independent, fair, sensitive, honest and accountable– Stakeholders generally expected NPA “personality”

to be fearless, stealthy and powerful and wise, understanding and caring

– Inconsistent and confusing application of the logo

• Now on 2nd phase: developing a brand strategy for the organisation.

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Thank You