Annual Report Briefing to the Portfolio Committee on Transport

10 October 2013

by Sipho G. Khumalo

Presentation Outline

• Mandate• Strategic Tasks• Audit Outcomes• Review of Organisational Performance• Financial Information• Employment Equity• Community Development Programmes• Strategic Imperatives and Challenges• Conclusion

Mandate

The Cross-Border Road Transport Agency’s (C-BRTA)

legislative mandate is to improve the flow of

passengers and freight by road transport in the region,

introduce regulated competition in cross-border road

transport, reduce operational constraints for the cross-

border road transport, trade facilitation, provide

oversight and monitoring functions, and to build

industry partnership to strategically reposition the

work of the C-BRTA

1. To improve the unimpeded flow of passenger and freight movements across regional borders

2. To liberalise market access in respect to freight transport

3. To introduce regulated competition in respect to passenger transport

4. To reduce operational constraints for the cross-border road transport industry

5. To enhance and strengthen the capacity of public sector

6. To empower the cross-border road transport industry

Strategic Imperatives

Reflecting on the 10 Point PlanItem Intervention Progress

1 Recruiting suitably qualified personnel

2 Consensus on organisational mandate

3 Improve image of Agency by obtaining a clean audit

4 Resolving governance lapses at Board level

5 Developing a sound funding model

6 An organisational structure consistent with the mandate

7 Developing leadership cohesion at all levels

8 Organisational culture and values

9 Inculcating a performance driven culture

10 Developing strategic partnerships with stakeholders

Audit Outcomes

• The Agency attained its first unqualified audit opinion since establishment 15 years ago.

2010/11 2012/132011/12

QUALIFIED AUDIT

QUALIFIED AUDIT

UNQUALIFIED AUDIT

Audit Outcomes - 2013

OutcomesAnnual financial statements unqualified – with no material misstatements

Emphasis of Matter:Funding of Operations – Litigation on the increase in permits tariff

Predetermined objectives unqualified - No material findings on the reliability and usefulness of the performance information

Additional Matter:32 of the 62 performance indicators not 100% achieved

Reduction of Irregular expenditure from R14 million in the previous financial year to R920K in 2012/13 – mainly due to contracts entered into in the previous years

Review of Organisational Performance

PERFORMANCE TARGETS NUMBER OF INDICATORS % OBTAINED

Performance targets fully achieved (100%) 30 48%

Performance targets partially achieved (60% - 99.9%) 8 13%

Performance targets not achieved (30% - 59.9%) 9 15%

Performance targets not achieved (above 0% up to 29.9%) 4 6%

Performance targets not achieved (0%) 11 18%

TOTAL 62 100%

Review of Organisational Performance -Law Enforcement

WORK ACTIVITY 2011/12 2012/13 DIFFERENCE % MOVEMENT

YEAR-ON-YEAR

MOVEMENT

Vehicle Inspections 124 624 132 372 7 748 6.2%

Prosecutions 11 549 15 384 3 835 33.2%

Compliance Rate 90.55% 88.79% (1.76%) (1.90%)

Review of Organisational Performance -Permits Issued

WORK ACTIVITY 2011/12 2012/13 % MOVEMENT

YEAR-ON-YEAR

MOVEMENT

Total Permits issued 71 100 75 000 5.49%

PERMITS ISSUED PER CATEGORY

Passenger transport - Taxi 11 950 10 539 (11.81%)

Passenger Transport - Buses 2 367 3 144 32.83%

Freight transport 54 827 55 053 0.41%

Tourist transport 1 956 1 682 (14.01%)

Permits Issued for Passenger Transport (Taxi)

Permits issued in 2011/12 and 2012/13 Permits issued per country during 2012/13

11

Country 2011/122012/13 % Movement

Year-On-Year

Movement

Botswana 405 339 (16.30%)

Lesotho 2,762 2,968 7.46%

Malawi 2 2 0.00%

Mozambique 5,177 4,332 (16.32%)

Namibia 98 79 (19.39%)

Swaziland 681 453 (33.48%)

Zambia 8 40 400.00%

Zimbabwe 2,729 2,312 (15.28%)

Carbotage 88 14 (84.09%)

Total 11,950 10,539 (11.81%)

Permits Issued for Passenger Transport (Buses)

Permits issued in 2011/12 and 2012/13 Permits issued per country during 2012/13

12

Country 2011/12 2012/13 % Movement

Year-On-Year

Movement

Botswana 36 100 177.78%

DRC 23 23 0.00%

Lesotho 468 595 27.14%

Malawi 207 127 (38.65%)

Mozambique 339 631 86.14%

Namibia 113 110 (2.65%)

Swaziland 17 182 970.59%

Zambia 115 77 (33.04%)

Zimbabwe 989 1,299 31.34%

Total 2,307 3,144 36.28%

Permits Issued for Freight Transport

Permits issued in 2011/12 and 2012/13 Permits issued per country during 2012/13

Country 2011/12 2012/13 % Movement

Year-On-Year

Movement

Botswana 8,785 7,769 (11.57%)

DRC 4,275 4,950 15.79%

Lesotho 4,423 4,315 (2.44%)

Malawi 1,130 1,322 16.99%

Mozambique 7,351 8,463 15.13%

Namibia 5,680 5,800 2.11%

Swaziland 5,899 5,357 (9.19%)

Zambia 8,154 8,574 5.15%

Zimbabwe 8,426 8,432 0.07%

Carbotage 704 71 (89.91%)

Total 54,827 55,053 0.41%

Permits Issued for Tourist Transport

2011/2012 2012/2013 % MovementYear-On-Year

Movement

Regional 1,956 1,682 (14.01%)

Financial Performance 2012/13

2012/13 2011/2012

REVENUE

Permit Income R165,93m R164,89m

Penalty Income R20m R15,07m

Other Income R2,14m R 3,15m

Interest Received R4,92m R 2,45m

EXPENSES

Employee Costs R101m R70,75m

Operating Expenses

R57,58m R44,49m

SURPLUS R34,50m R71,05m

Financial Position 2012/13

ASSETS LIABILITIES

2012/13 2011/2012

CURRENT ASSETS

Receivables R3,81m R2,69m

Cash and Cash Equivalents

R125,46m R84,65m

NON-CURRENT ASSETS

Property, Plant and Equipment

R8,27m R7,57m

Intangible Assets R1,15m R1,07m

TOTAL ASSETS R138,68m R96m

2012/13 2011/2012

CURRENT LIABILITIES

Lease obligations R0,68m R0,76m

Payables R18,20m R12,57m

Provision R9,06m R6,19m

NON-CURRENT LIABILITIES

Retirement benefit obligation

R1,65m R1,88m

TOTAL LIABILITIES R29,59m R21,40m

ACCUMULATED SURPLUS

R109,10m R74,60m

Employment Equity

RACE GENDER

Recruited 21 Trainee Inspectors for a 12 months Training in 2013

Intake of 10 Internship Students in 2013Development of a Women-In-Transport programme

aimed at introducing women operators to cross-border road transport

On-Going SMME Development Programmes For Aspiring Cross-Border Operators

Donated Furniture to Rakgotso High School in Mamelodi

Community Development Programmes

Strategic Imperatives

Activation of the mandate to enable seamless and efficient passenger and freight logistics in South Africa, Regionally and Globally – positioning of our borders as trade facilitation points!

Need to resolve ‘misunderstandings’ pertaining to the mandate and role of the C-BRTA

Strengthening Partnerships with SARS and other Border Authorities

Appreciating the changing dynamics in border towns and the need to respond to provincial imperatives

Key Challenges & Intervention Areas Addressing the question of unroadworthy cross-border vehicles and

the review of SADC vehicle standards Need for protection S.A. domestic operators in regard to conditions

obtaining in our neighbouring countries – need for review of Bilateral Agreements & implementation of the SADC Protocol

Provision for dealing with overloaded cross-border vehicles (below 3.5 tons) and use of bus trailers for the transportation of goods

Resolution of the Lesotho/Free State Cross Border passenger transport issue

On-going litigation on the increase of permit tariffs

Concluding Remarks

• The C-BRTA is geared to demonstrate its commitment to adding public value through its strategic interventions.

• This Agency is also poised to support the National Programme of Action of government of industrialization and job creation.

• The Agency has broken the cycle of audit qualifications and attained an unqualified audit opinion

• Going forward, the C-BRTA is gearing itself to expand its service offerings to our provincial offices, thus taking our services to the people.

i thank you