Annual Report 2007/08 - Dedea

Eastern Cape Province Department of 

Economic Development & Environmental Affairs 

Annual Report 2007/08

ECONOMIC DEVELOPMENT & 

ENVIRONMENTAL AFFAIRS 

Published by: 

Department of Economic Development 

and Environmental Affairs 

Province of the Eastern Cape 

Private Bag X0054 

Bhisho 5605 

South Africa 

© Department of Economic Development 

and Environmental Affairs, 2008 

Enquiries: 



Province of the Eastern Cape 

Private Bag X0054 

Bhisho 5605 

South Africa 

Telephone: +27 40 609 3094 

Fax: +27 40 609 3219 

Sixolile Makaula 

Communications Manager 



Tel: 040 609 3299 

Cell: 083 629 1533 

E-mail: sixolile.makaula@deaet.ecape.gov.za 

2

Foreword by the MEC for 

Economic Development and Environmental Affairs 

The Department has received a qualified audit for the year under 

review. The audit outcome is a result of a poor control environment 

in the finance and human resources components of the Department. 

However, measures have been taken to deal with issues raised by the 

Auditor General. In particular, a turnaround strategy has been drawn up, 

authority has been delegated to respective cost centres, and the CFO 

support programme is being implemented within the Department by 

the Provincial Treasury. Furthermore, the recruitment process is being 

outsourced in order to rapidly reduce the Department’s high vacancy 

rate. However, despite receiving a poor audit outcome, the Department managed to spend 97.5% of its 

allocated budget. 

During the year under review, the Department undertook to implement a number of projects and 

programmes. These include finalising the Provincial Industrial Strategy, reviewing legislation establishing 

some of its public entities, merging the Eastern Cape Parks Board (ECPB) and Eastern Cape Tourism 

Board (ECTB), developing a jobs barometer, developing a Provincial LED strategy as well as a provincial 

environmental IDP toolkit, reviewing the Provincial biodiversity strategy and action plans, and developing 

a Provincial cooperative strategy. The Department also undertook to work towards attracting investors 

into the Province’s two Industrial Development Zones (IDZs), strengthening the second economy, and 

improving the turnaround time for awarding records of decisions (RODs) in respect of projects requiring 

Environmental Impact Assessment. The Department has made progress towards achieving these 

objectives, despite experiencing a number of challenges. Most of the challenges relate to in sufficient 

capacity and global economic conditions. 

As we consolidate some of the gains of the financial year, we are mindful of the pressing needs of 

the rather populous Eastern half of the Province. Accordingly the Department recommit itself to work 

towards creating sustainable economic activities in the Umzimvubu Region of the Province, in line with 

the Provincial Growth and Development Plan (PGDP), the Provincial Industrial Strategy (PIDS) and the 

resolutions of the Growth and Development Summits (GDS). 

The Department realises that it will have to significantly improve its operational efficiency and enhance 

its effectiveness. To this end, the Department has, among other things, embarked on a process of 

implementing an ISO9001 certification programme, building the requisite capacity, developing a more 

apt organizational structure and strengthening governance arrangements with its Public Entities. 

Thank you 

PHUMULO MASUALLE 

MEMBER OF THE EXECUTIVE COUCNIL 

3

Table of Contents 

Foreword by the MEC for Economic Development and Environmental Affairs · · · · · 5 

Part 1 

GENERAL INFORMATION 

1.1 Submission of the Annual Report to the Executing Authority · · · · · · · · · 10 

1.2 Introduction by the Accounting Officer · · · · · · · · · · · · · · · · · 11 

1.3 Information on the Department · · · · · · · · · · · · · · · · · · · · 13 

1.4 Vision and Mission Statements · · · · · · · · · · · · · · · · · · · · 16 

1.5 Legislative Mandate · · · · · · · · · · · · · · · · · · · · · · · · · 17 

Part 2 

PROGRAMME PERFORMANCE 

2.1 Voted Funds · · · · · · · · · · · · · · · · · · · · · · · · · · · · 22 

2.2 Aim of the Vote · · · · · · · · · · · · · · · · · · · · · · · · · · 23 

2.3 Key Strategic Objectives · · · · · · · · · · · · · · · · · · · · · · · 24 

2.4 Departmental Revenue and Expenditure· · · · · · · · · · · · · · · · · 29 

2.5 Capital Investment, Maintenance and Asset Management Plan· · · · · · · · 31 

2.6 Programme Performance· · · · · · · · · · · · · · · · · · · · · · · 32 

Part 3 

ANNUAL FINANCIAL STATEMENTS 

3.1 Report by the Accounting Officer · · · · · · · · · · · · · · · · · · · · 102 

3.2 Report of the Auditor General · · · · · · · · · · · · · · · · · · · · · 117 

4.3 Report of the Audit Committee · · · · · · · · · · · · · · · · · · · · 124 

3.4. Appropriation Statement · · · · · · · · · · · · · · · · · · · · · · 126 

3.5 Notes to the Appropriation Statement · · · · · · · · · · · · · · · · · 137 

3.6 Statement of Financial Performance · · · · · · · · · · · · · · · · · · 140 

3.8 Statement of Changes In Net Assets · · · · · · · · · · · · · · · · · · 141 

3.7 Statement of Financial Position · · · · · · · · · · · · · · · · · · · · 141 

3.9 Cash Flow Statement · · · · · · · · · · · · · · · · · · · · · · · · 142 

3.10 Accounting Policies· · · · · · · · · · · · · · · · · · · · · · · · · 143 

3.11 Notes to the Annual Financial Statements · · · · · · · · · · · · · · · · 152 

3.12 Disclosure Notes to the Annual Financial Statements · · · · · · · · · · · 160 

3.13 Annexures to the Annual Financial Statements · · · · · · · · · · · · · · 165 

4

Part 4 

HUMAN RESOURCE MANAGEMENT 

4.1 Aim · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 172 

4.2 Service Delivery · · · · · · · · · · · · · · · · · · · · · · · · · · 172 

4.3 Expenditure · · · · · · · · · · · · · · · · · · · · · · · · · · · · 173 

4.4 Employment and Vacancies · · · · · · · · · · · · · · · · · · · · · 176 

4.5 Job Evaluation · · · · · · · · · · · · · · · · · · · · · · · · · · · 178 

4.6 Employment Changes · · · · · · · · · · · · · · · · · · · · · · · · 179 

4.7 Employment Equity · · · · · · · · · · · · · · · · · · · · · · · · · 183 

4.8 Performance Rewards · · · · · · · · · · · · · · · · · · · · · · · · 186 

4.9 Foreign Workers · · · · · · · · · · · · · · · · · · · · · · · · · · 188 

4.10 Leave Utilisation for the Period 1 January 2007 to 31 December 2007 · · · · · 188 

4.11 HIV&AIDS and Health Promotion Programmes · · · · · · · · · · · · · · 190 

4.12 Labour Relations · · · · · · · · · · · · · · · · · · · · · · · · · · 191 

4.13 Skills Development · · · · · · · · · · · · · · · · · · · · · · · · · 193 

4.15 Utilisation of Consultants · · · · · · · · · · · · · · · · · · · · · · 195 

4.14 Injury on Duty· · · · · · · · · · · · · · · · · · · · · · · · · · · 195 

Acronyms · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 197 

5

Part 1 

General Information 

6

1.1 Submission of the 

Annual Report to the Executing Authority 

Honourable P Masualle 

Member of the Executive Council for 

Economic Development and Environmental Affairs 

Report of the Accounting Officer of the Department of Economic Development and 

Environmental Affairs for the period 1st April 2007 to 31st March 2008. 

I have the honour of submitting the 2007/08 Annual Report of the Department of 

Economic Development and Environmental Affairs in terms of Section 40(1)(d) of the 

Public Finance Management Act, 1999. 

Dr E. Nkem-Abonta 

Accounting Officer 

Department of Economic Development and Environmental Affairs 

31 August 2008 

7

1.2 Introduction by the Accounting Officer 

As we take stock of the department’s performance, 

highlighting the achievements for the year against a 

backdrop of limited resources, capacity challenges and 

budgetary constraints, we must in the same breath 

reaffirm our commitment to a vision where the provincial 

economy can make visible change to the quality of life of 

all for the better. In the same vein we undertake to always 

ensure that our natural environment is well managed in 

the interest of sustainable development which caters 

for future generations. The support of all stakeholders including our social partners, 

sister departments, national counterparts and above all the public in general – whose 

contributions made it possible for the department to realise the development milestones 

set for the year – is highly appreciated. 

The challenges of underdevelopment in our province continue to demand strategic 

deployment of resources as well as integration in planning, cooperation and cohesion 

in implementing development strategies. Our plans for the 2007/08 financial year were 

made cognisant of the need for a concerted effort within the department, collaboration 

with and amongst its constituent arms of delivery and in partnership with the external 

stakeholders under a shared purpose of existence. It is therefore not the intention of this 

report to lament the many hurdles we had to scale in pursuit of our development goals, 

but rather to highlight the social, environmental, economic and developmental value of 

our interventions. These are the key result areas which the department is mandated to 

address under various pieces of legislation within the context of a policy regime that 

primarily seeks to accelerate economic growth and development and where the natural 

environment is not compromised. 

It must be emphasised that the relationship between economic development and 

environmental management is symbiotic, and so is that between business and 

consumers. Consequently we are all compelled to accept the realities of these equations 

so that the citizens of the Eastern Cape Province may derive sustainable benefits from 

growth and development. These are the principles which underscore the functions of the 

Economic Development and the Environmental Affairs Programmes. The programmes 

are respectively charged with: (a) local economic development, trade promotion and 

investment attraction, enterprise and tourism sector development, regulation of the 

liquor, gambling and betting industries, as well as promotion of a responsible business 

environment in the interest of consumers; and (b) protection, development, regulation 

and management of natural resources (flora and fauna) for sustainable use. 

8

During the 2007/2008 financial year the department’s programmes made numerous 

achievements, some of which include: 

• An inflow of investment into the province. 

• Creation of more direct jobs. 

• Accessing of development finance by SSMEs 

• Funding of LED projects. 

• A record number of decisions issued in favour of business development applications as 

well as housing projects. 

These achievements are covered in more detail in the annual reports of our public entities 

and under the section on performance information in this document. However, we must 

hasten to acknowledge that there are challenges the department still needs to address 

in the areas of governance and financial accountability. 

This report has been prepared in line with the treasury guidelines, and covers four 

areas, namely: General Information, Programme Performance, Audited Annual Financial 

Statements and Human Resource Management. 

The General Information section provides insight into the operating environment of 

the department whilst the Programme Performance section gives a detailed analysis of 

work undertaken during the period under review. A perspective on matters relating to 

governance and accountability is the focus of the two remaining sections which comprise 

the Audited Annual Financial Statements and Human Resource Management. 

Thank you. 

Dr E. Nkem-Abonta 

Accounting Officer 


9

1.3 Information on the Department 

The business of the department is directed from its Head Office in Bhisho and its 

operations are conducted through six (6) District Offices, five public entities (Eastern 

Cape Development Corporation [ECDC], Eastern Cape Tourism Board [ECTB], Eastern 

Cape Parks Board [ECPB], Eastern Cape Gambling and Betting Board [ECGBB] and Eastern 

Cape Liquor board [ECLB]) and the two Industrial Development Zones namely the East 

London Industrial Development Zone (ELIDZ) and the CEOGA Development Corporation 

(CDC). The district offices are located at Port Elizabeth (Cacadu District Municipality and 

Nelson Mandela Metro Municipality), East London (Amathole District Municipality), 

Mthatha (OR Tambo DM), Queenstown (Chris Hani DM), Aliwal North (Ukhahlamba DM) 

and Kokstad (Alfred Nzo DM). This arrangement allows the department a wider service 

delivery reach as well as providing an opportunity for the department’s officials to have 

a better understanding of issues on the ground, through direct interfacing with a wide 

range of stakeholders. 

During the period under review, the National Treasury gazetted standard programmes and 

objectives to which department complied. These mandatory requirements would have 

resulted in an increase in the total number of programmes from five (5) to thirteen (13). 

However, the two programmes for Economic Development and Environmental Affairs are 

under one department [DEDEA]. Only nine of the programmes could be implemented. 

PROGRAMME/SUB-PROGRAMME 

Programme 1: Administration 

Sub-programme 1.1: Office of the MEC 

OBJECTIVE OF PROGRAMME/SUB-PROGRAMME 

• Provide leadership, strategic management in accordance 

with legislation, regulations, policies & ensure appropriate 

support service to all other programmes. 

• To effectively & efficiently manage & direct the activities of the MEC. 

Sub-programme 1.2: Office of the HoD 

Sub-programme 1.3: Financial Management 

Sub-programme 1.4: Corporate Services 

Programme 2: 

Integrated Economic Development Services [IEDS] 

• To manage & direct departmental transversal administrative 

programmes that give leadership to the department. 

• To effectively maintain an oversight function of the 

whole department’s mandate & function. 

• To provide an efficient financial management function. 

• To ensure implementation of the PFMA, other 

related regulations & policies. 

• To provide planning & budgeting support. 

• To ensure that risk management is … 

• The programme provides strategic support function to 

the department. This function is made up of Human 

Resource Management & Development, Labour 

Relations, Legal, IT & Corporate Communication 

• To sustain economic development through shared partnerships. 

Sub-programme 2.1: Enterprise Development [ED] • To support & develop business enterprises. 

Sub-programme 2.2: 

Local Economic Development [LED] 

• To promote economic growth & development of local 

economies in partnership with key stakeholders by aligning 

LED initiatives with Government Programmes 

10



Economic Empowerment [EE] 

Programme 3: Trade & Industry Development [TID] 


Trade & Investment Promotion [TIP] 

Sub-programme 3.2: Sector Development [SD] 

Sub-programme 3.3: Industry Development [ID] 

Programme 4: 

Business Regulation & Governance [BRAG] 

Sub-programme 4.1: Corporate Governance 

Sub-programme 4.2: Consumer Protection 

Sub-programme 4.3: Liquor Regulation 

Sub-programme 4.4: Gambling & Betting 

Programme 5: 

Economic Planning, Research & Development 

Sub-Programme 5.1: Policy & Planning 

Sub-Programme 5.2: Research & Development 

Sub-Programme 5.3: Knowledge & Delepoment 

Sub-Programme 5.4: Monitoring & Evaluation 

Programme 6: Environmental Management 

and Sustainable Development Policy, 

Programme 7: International development cooperation 

Programme 8: Policy, Legislation, Coordination, 

Planning & Monitoring 

Programme 9: Planning, Impact, Pollution & Waste 

Management, 

Programme 10: Ecosystems, Biodiversity & 

National Heritage Planning 

Programme 11: Marine & Coastal Management 

Programme 12: Environmental Management & 

Sustainable Development Empowerment & Capacity 

Building Services 


Sustainable Enterprise & Infrastructure Development. 


Sustainable development & technical support 

services. 

Programme 15: Conservation of bio-diversity & the 

protection of the environment. 

OBJECTIVE OF PROGRAMME/SUB-PROGRAMME 

• To facilitate the process of empowerment & creation 

of an enabling business environment for PDIs. 

• To stimulate economic growth through industry 

development, trade & investment promotion 

• To facilitate trade, export promotion & attract investment. 

• To implement strategies for the positioning of the industrial 

sector as a key contributor to economic growth & development. 

• To facilitate the implementation of strategic programmes 

that will stimulate the competitiveness of priority sectors. 

• To ensure an equitable & a socially responsible 

environment that allows for predictability. 

• To lobby against & address barriers in the broader business 

environment which inhibits business development. 

• To develop, implement & promote measures that 

ensure the rights & interests of all consumers. 

• To promote & maintain an effective & efficient 

regulatory system for the liquor industry. 

• To promote & maintain an effective & efficient 

regulatory system for the gaming industry. 

• To inform economic planning & processes 

• To develop economic policies & strategies 

• To inform economic policy & planning processes 

• To centralise economic data as a common source of reference 

• Provide reliable economic indices 

• To ensure development of environmental policy 

legislation & compliance framework. 

• Not applicable 

• Consolidate provincial environmental legal framework 

• To promote cleaner production, waste minimization, reduction 

of air emissions & effective implementation of EIA regulation 

through integrated waste & air quality management planning. 

• Ensure that Provincial Biodiversity Strategy & Action Plan is finalized 

• Ensure that coastal development takes place in accordance 

with applicable policy & legal provisions 

• For 2007/2008 this program was integrated into Programs 6 to 11 



• Conserve the diversity of landscapes, ecosystems, habitats, biological 

communities, population, genes & species in the Eastern Cape 

11

The strategic areas of focus during the period under review were to: 

• Achieve better results from economic growth and development interventions through 

the Industrial Development Zone (IDZ) programmes 

• Improvement of SMME development through increased access to technical support of 

the Small Enterprise Development Agency (SEDA) and credit facilities provided by the 

Eastern Cape Development Corporation (ECDC) 

• Increase Foreign Direct Investment through the ECDC and IDZs interventions 

• Enhance consumers’ awareness about their rights and recourse with particular focus on 

the National Credit Act (NCA) 

• Reduce Environmental Impact Assessment (EIA) backlogs to facilitate responsible 

development and issue Records of Decision (ROD) in time 

• Improve regulatory frameworks and governance through legislative reviews and amendments. 

These milestones were realised despite the high average vacancy, limited operational 

capacity and budget available in these key areas of delivery. 

1.3.1 INSTITUTIONS REPORTING TO EXECUTING AUTHORITY 

Outlined below are provincial public entities accountable to the MEC for Economic 

Development and Environmental Affairs the boards of the public entities listed below 

are accountable to the office of the executing authority (MEC). 

• Eastern Cape Development Corporation (ECDC) 

• Eastern Cape Tourism Board (ECTB) 

• Eastern Cape Gambling and Betting Board (ECGBB) 

• Eastern Cape Liquor Board (ECLB) 

• Eastern Cape Parks Board (ECPB) 

1.3.2 BILLS SUBMITTED TO THE LEGISLATURE IN THE FINANCIAL YEAR 

• There were no Bills submitted for consideration by legislature during the period 200708. 

1.3.3 MEMBER OF EXECUTIVE COUNCIL VISITS ABROAD 

PLACE DATE PURPOSE 

United Arab Emirates 09 – 17 November 2007 Study Tour – Infrastructure Development 

Brazil 01 - 09 March 2008 LED Fact finding mission 

12

1.4 Vision and Mission Statements 

1.4.1 VISION 

The Department of Economic Development and Environmental Affairs strives for an 

Eastern Cape which is unified through integrated and sustainable economic, social and 

cultural development; thus providing an acceptable quality of life for all of its people in 

the context of a united, non-racial, non-sexist and democratic South Africa. 

1.4.2 MISSION 

To build a sound, growing and sustainable economy which facilitates economic 

empowerment and delivers an optimal quality of life for all citizens of the Province; 

especially through the efficient utilisation and management of environmental resources, 

the promotion of investment and the strategic deployment of the human and financial 

resources at its disposal. The Department’s core challenge is to grow the economy of the 

Eastern Cape and consequently, South Africa. 

13

1.5 Legislative Mandate 

The table below shows a summary of core mandates and derivative legislative frameworks: 

PROGRAMMES CORE FUNCTIONS ENABLING POLICY OR LEGISLATION 

Administration 

Economic 

Development 

Financial Management, Administrative & 

Planning Support 

• Public Finance Management Act (1) of 1999 

• Treasury Guidelines on Planning 

Information Management • Public Service Regulations, 1999 

• SITA Act 88 of 1998 

Monitoring & Evaluation of Programmes and • PFMA 1 of 1999 

Public Entities 

• Treasury Guidelines on Planning 

Economic Growth & Development Strategy 

Formulation and Implementation 

Marketing of the Eastern Cape, Trade 

Promotion and Investment Attraction, 

Development Finance, IDZ Programme 

Support , SMME Development and Support 

Tourism Sector Development 

• National Policy, Strategies and Legislation 

• Provincial Growth and Development Plan 

• Eastern Cape Development Corporation Act 2 of 1997 

• National Small Business Act of 1995 

• EC Tourism Act (8) of 2003:EC 

Gambling & Betting Regulation 

• National Gambling & Betting Act 

• Gambling and Betting Act (5) of 1997:EC 

Consumer Protection 

• Consumer Affairs Unfair Business 

Practices Act (5) of 1998:EC 

• Credit Agreement Act ( ) of ... 

Trade Inspection • Sales & Services Act 25 of 1965 

Environmental 

Affairs 

Regulation of The Liquor Industry • National Liquor Act 59 of 2003 

• EC Liquor Act 10 of 2003 (EC) 

Develop regulatory framework to promote • National Environmental Management 

conservation of biodiversity & protection Biodiversity Act (NEM:BA) 

of the environment for sustainable 

• National Environmental Management 

development in the Province 

Protected Areas Act (NEM:PAA) 

• Nature & Environmental Conservation 

Ordinance 19 of 1974 

• Ciskei Conservation Act 10 of 1987 

• Transkei Environmental Conservation Decree 9 of 1992 

• National Forest Act 84 of 1998 

• Veld & Forest Fire Act 101 of 1998 

• Marine Living Resources Act, 1998 

• Fencing Act 31 of 1963 

• Mountain Catchment Areas Act 63 of 1970 

• Sea Shore Act 21 of 1935 

• National Environmental Management Act 107 of 1998 

• National Environmental Management 

Air Quality Act (NEM: AQA) 

• Environmental Conservation Act 73 of 1989 

Manage & monitor implementation of policy. • EC Parks Board Act 12 of 2003:EC 

• Marine Living Resources Act, 1998 

• Problem Animal Control ordinance 26 of 1957 

14

1.5.1 FUNCTIONS/OBJECTIVES OF PUBLIC 

ENTITIES MANAGED BY THE DEPARTMENT 

This table below provides an overview of the establishment purpose of the each public 

entity and the core functions of the two IDZs: 

NAME OF THE ENTITY 

Eastern Cape Development Corporation 

(ECDC) 

Eastern Cape Tourism Board (ECTB) 

Eastern Cape Gambling and Betting Board 

(ECGBB) 

Eastern Cape Liquor Board (ECLB) 

Eastern Cape Parks Board (ECPB) 

Coega Development Corporation (CDC) 

East London Industrial Development Zone 

(ELIDZ). 

ESTABLISHMENT PURPOSE OR CORE FUNCTION 

To facilitate economic development in the Province by promoting investment, 

small business development and innovative development financing. 

Align and rationalise activities with the DTI SEDA programme in the Province. 

To facilitate tourism development in the Province through innovative product 

development, marketing and investment promotion. 

To regulate and manage the gambling and betting industry in the Province. 

To regulate the retail & micro manufacturing liquor industry in the Province. 

To establish efficient and effective environmental management systems in 

Protected Areas and to promote private sector investment opportunities in 

Protected Areas. 

To develop the Coega IDZ by investing in world-class infrastructure and to attract 

sustainable manufacturing investment. 

To develop the East London IDZ by investing in world-class infrastructure and to 

attract sustainable manufacturing investment. 

Important to note is that the status, funding relationships and ownership of the IDZ 

Programme could not be resolved during the course of 2007/08, particularly in the 

context of the Regional Industrial Development Strategy (RIDS). The discussions on this 

issue once finalised may change the current status and funding arrangements. 

15

1.5.2 ACCOUNTABILITY 

Accountability of the public entities to the department is governed by the PFMA, 

covering establishment, legislations and protocols for good governance. This relationship 

is formalised through the shareholder compacts and service level agreements (SLAs) 

provided mainly for planning, structured reporting, performance monitoring and 

evaluation. These formal arrangements set out mechanisms for reporting, determining 

cycles and assigning of responsibilities to officials at different levels of accountability. 

The department is represented by senior officials on various boards of the public entities 

and a reporting conference is convened by the Executing Authority on a quarterly 

basis. Further, the department has an oversight responsibility over the two Industrial 

Development Zones (IDZs) in which ECDC is the majority shareholder on behalf of the 

Eastern Cape Provincial Administration with 100% in the Coega Development Corporation 

and 74% in the East London Industrial Development Zone, the balance of 26% is held by 

the Buffalo City Municipality. 

Lastly, the Economic Growth and Infrastructure Cluster (EG&IC) is a platform where all 

our public entities get a foothold into the decision making organs of the state. Plans 

and proposals are channelled through the Department to the cluster and ultimately 

the Cabinet Committee on Economic Growth and Infrastructure Cluster. This process 

enhances cooperation and accountability within the DEDEA Group. 

16

Part 2 

Programme Performance 

17

2.1 Voted Funds 

The total budget allocated to the department under Vote 9 (Department of Economic 

Development and Environmental Affairs) was R757,973m (seven hundred and fifty seven 

million nine hundred and seventy three thousand Rand) for the year under review as it is 

listed in the Provincial Treasury White Book. The breakdown was as follows: 

2.1.1 APPROPRIATION PER PROGRAMME 

Per Programme 

Final 

Appropriation 

Actual 

Expenditure 

Variance 

Var. as a % of 

Final Appr. 

R’000 R’000 R’000 % 

1. Administration 85,624 78,814 6,810 7.9 

2. Integrated Economic Development Services 129,687 127,137 2,550 2.0 

3. Trade & industry Development 343,999 343,670 329 0.1 

4. Business Regulations & Governance 46,477 46,154 323 0.7 

5 Economic Planning 1,000 373 627 62.7 

6 Environmental Management 42,729 33,646 9,083 21.3 

7 Planning, Impact Pol & Waste 4,522 3,425 1,097 24.3 

8 Ecosystems Bio & Nat Her Ma 102,748 102,372 376 0.4 

9 Marine & Coastal Management 1,187 726 461 38.8 

757,973 736,317 21,656 

NB: The table above reflects a bigger allocation for programmes 2-9, the bulk of which is 

transferred to Public Entities responsible for key strategic outcomes. 

18

2.2 Aim of the Vote 

The aim of the Department of Economic Development and Environmental Affairs (Vote 9) 

is to promote sustainable economic growth in the Eastern Cape Province and to ensure 

that adequate measures are taken to protect the natural environment and to facilitate 

the growth of a viable tourism industry. 

The Department of Economic Development and Environmental Affairs presents to the 

Provincial Legislature the programme performance in accordance with the Strategic 

and Annual Performance Plans as tabled in Parliament in March 2007. The report gives 

an account of the Department’s activities and performance against service delivery 

objectives and targets outlined in its 2007/08 plans. It details achievements of the 

Department using resources allocated to it under vote 9 and other resources at its 

disposal during the same period. 

The Department subscribes to principles of good governance, transparency and public 

accountability in particular Section 27(4) of the PFMA which states the following: 

“When the annual budget is introduced in the National Assembly or a provincial 

legislature, the Accounting officer for each department must submit to Parliament or 

the provincial legislature, as maybe appropriate, measurable objectives for each main 

division within the department’s vote. The relevant Treasury may co-ordinate these 

submissions and consolidate them in one document.” 

19

2.3 Key Strategic Objectives 

These are the key strategic objectives of the Department: 

• to promote economic growth and development in the province, 

• develop and implement strategies to achieve specific policy objectives, 

• to improve the business environment in the interest of consumers, 

• to protect, develop, regulate and manage natural resources (flora and fauna) of the 

Eastern Cape Province, and 

• to manage marine and coastal resources and eliminate illegal coastal development activities 

2.3.1 PROGRAMMES 

The department has 15 programmes which are reflected in the table in 1.2 Introduction by 

the Accounting Officer, covering information on the Department. 

2.3.2 ACHIEVEMENTS 

The Department spent 97.5% of its 2007/08 allocated budget towards the realisation 

of achievements by the year end. Specific achievements of our Public Entities are listed 

in separate annual reports produced by these Public Entities. To this end we draw the 

attention of our stakeholders and the public to the notable achievements of the 

two programmes in their respective areas of responsibilities through the strategic 

interventions which yielded – amongst others – LED projects funded to a tune of R30m, 

mostly in rural parts of the province, and 2 000 records of decisions issued in favour of 

business development applications as well as housing projects. 

1. 

2. 

3. 

The following outputs were achieved in the 2007/08 financial year. 

Improved governance and accountability though shareholder compacts and quarterly 

reporting conferences between DEDEA and its public entities are now a feature of 

performance management by the Department. The Department, together with its public 

entities, was able to meet with political leaders, municipal managers, stakeholders and 

discuss projects funded by the Department. 

Boards of public entities have been stabilised and have been gender consolidated. Key 

management positions have been filled for efficient and effective execution of projects. 

Contributing to the MIDP, understanding/addressing challenges, communicating with 

government, infrastructure development plans (ports) and progress as well as identifying 

strategic areas for cooperation marketing. The DEDEA was one of the major funders of 

the first successful automotive week which was held in Port Elizabeth in September 

20

4. 

5. 

6. 

7. 

8. 

9. 

10. 

2007. Other interventions for sector and industry developments included the Tourism 

Summit Agreement, GDS etc 

A draft Provincial cooperative strategy was developed in line with the National cooperative 

strategy. The strategy will be concluded in the second quarter of 2008/09 year. 

New Projects were initiated in line with the strategic intent of the Provincial Industrial 

Development Strategy. These include timber and forestry, agro-processing, business 

process outsourcing and tourism. 

Two final licences out of a total of five were issued in 2007 (Zone 4 & 5, Queenstown 

and Mthatha). The Queenstown Casino opened partially in December 2007 and was fully 

operational by early July 2008. 

The commercialisation process of key Provincial parks was started in 2007. In addition 

more land was acquired in order to expand protected areas for conservation. 

The strategic focus of the Department was reviewed by top management. This resulted in 

the planning process being initiated for six key APEX projects aligned to the Department 

as identified by National Cabinet in June 2007. 

The Department launched the highly successful “the green scorpions” to counter 

environmental violators in December 2007. 

A backlog of 633 Environmental Impact Assessments (EIAs) generated within the old 

environment conservation act (ECA) was greatly reduced to 98 by end March 2008. 

Remaining backlogs should be cleared by the end of November 2008. 

2.3.3 OVERVIEW OF THE ORGANISATIONAL 

ENVIRONMENT FOR 2007/08 

A number of planning and review sessions were held to assess the impact of the 

organisational environment on the Department. Through these initiatives the department 

identified the key challenges to which it had to develop a structured response to address 

short to medium-term issues. Of primary importance was to appoint personnel at 

strategic management level, where a number of posts were occupied by officials in an 

acting capacity and to ensure that the boards of all public entities under the Department 

could operate at full capacity. To this end new members were appointed to all areas 

provided for by respective legislation including departmental representatives on each 

board. Despite these efforts the vacancy rate remains above acceptable levels as it is 

always difficult to attract new appointments at a rate which outperforms those of exits, 

let alone the ability to retain strategic skills in the public sector enevironment. Filling of 

vacant posts within 3 months has not been achieved due to challenges such as lengthy 

job evaluation processes, non-availability of job evaluation and interview panels. 

21

Despite all these challenges, the department was able to meet its targets with an 

average staffing-rate of 50%. The initiatives of the Office of the Executing Authority saw 

an improvement in stakeholder relationships through the establishment of forums for 

engagement with municipalities, with its extended arms of delivery, i.e. public entities, 

beneficiary communities and other members of the broader community through the 

outreach programme. 

The Department managed to complete the processing of employee trafers to the Eastern 

Cape Parks Board although there were delays in payment of their exit benefits. 

Staff development and training in respective areas of work showed significant improvement: 

• Performance of the IDZ programmes in areas of investment attraction was highly encouraging 

• SMME support was satisfactory compared to the previous year. 

2.3.4 OVERVIEW OF THE SERVICE DELIVERY 

ENVIRONMENT FOR 2007/08 

The new National Treasury programme budget structure, which was approved in 

2007/08 financial year, resulted in the Department now having 13 programmes instead 

of the original 5. However, due to the hurried nature in which the announcement to 

implement the programmes was made, implementation by the DEDEA was only possible 

for 9 programmes. 

This report is based on performance measures and targets specified in the Annual 

Performance Plan (APP) for 2007/08 to 2009/10 or, where more appropriate, from the 

Operational Plan for 2007/08. 

There are a number of changes in the national regulatory environment which affected 

the make-up of the department’s programmes and the orientation of priority areas of 

focus, particularly on public awareness raising initiatives. 

No new laws were introduced or enacted in the year under review. At a national level, the 

most notable legislation and regulations were for the environmental sector which include: 

• Amendment of Section 20 of the Environment Conservation Act 

• Review of Environmental Impact Assessment Regulations 

• Promulgation of the Air Quality Management Act 

• Enforcement and Compliance Regulations in terms of the National Environmental 

Management Act (NEMA), 107/1998 

22

Business plans were developed for four of the six APEX programmes which were identified 

by the National Cabinet in June 2007 for implementation during the current term of 

government. Funding could not be secured for these programmes since the National 

Cabinet had largely expected reprioritisation of existing budgets and programmes. 

The Service Delivery Improvement Plan was updated in the 2007/08 financial year. 

Preliminary service standards were developed for both the Department and its public 

entities. During 2008 consultations with DEDEA’s customers will be conducted in order to 

create credible service standards. A Departmental Service Charter will also be developed 

in the current financial year. 

2.3.5 STRATEGIC OVERVIEW AND KEY POLICY 

DEVELOPMENTS FOR THE 2007/08 FINANCIAL YEAR 

Policies and Strategies 

The Department of Economic Development and Environmental Affairs operates 

within the context of the PGDP which seeks to promote broad-based socio-economic 

development in the Province, supported by the overall principles of sound macroeconomic 

fundamentals at National levels. These fundamentals represent the outcome of 

diligent application, prudent spending and macro-economic discipline over several years, 

and constitute a foundation upon which to build regional and local initiatives towards 

growing the provincial economy. The PGDP is currently under review and adaptation and 

adoption of programmes will be made once information is made available. 

Linked to the PGDP is the Provincial Industrial Development Strategy and Action Plan. 

Nine sectors have been identified and approved by the Provincial Cabinet. An Industrial 

Action Plan is being finalised with the assistance of ECSECC in the current financial year. 

Some components of the Industry Action Plan are already being effected e.g. the Forestry 

and Timber Cluster, Agro-Processing, and BPO. 

Key operational programmes are implemented by our public entities and consequently, 

key operational functions are developed and managed by the ECDC, ECTB, and the ECPB. 

Essential regulatory and advisory services are provided by the ECGBB and the ECLB. 

The Department facilitates the strengthening of developmental local government based 

on Local Economic Development (LED) initiatives to create sustainable job opportunities 

and viable revenue bases. A trip to Brazil, with the support of Thina Sinako, was undertaken 

in order to learn about LED programmes in that country. 

23

Components of the Economic Transformation of the Eastern Cape as expressed by the 

ruling party earlier in the year, as well as the ASGISA priorities, have been prioritised and 

initiated by the Department. 

Legislative Changes 

New laws introduced or enacted by the Provincial Legislature affecting the Department 

during in the course of the year under review as well as approval of ammendmends to 

certain pieces of legislation and bills by the National Parliament are indicated below: 

• Amendment of Section 20 of the Environment Conservation Act 

• Promulgation of the Air Quality Management Act 

• Enforcement and Compliance Regulations in terms of the National Environmental 

Management Act (NEMA), 107/1998 

• The National Credit Act (0) of 2007 became effective 

Apart from the abovementioned developments at the National Level there were no new laws 

tabled before legislature by the Department nor enacted uopn in the year under review. 

24

2.4 Departmental Revenue and Expenditure 

2.4.1 COLLECTION OF DEPARTMENTAL REVENUE 

The table below presents a summary of amounts collected, transferred or retained 

for own revenue. 

Description 2004/05 

Actual 

2005/06 

Actual 

2006/07 

Actual 

2007/08 

Target 


Actual 

% deviation 

from target 

R’000 R’000 R’000 R’000 R’000 % 

Tax Revenue 55,918 64,318 81,447 87,503 92,554 -5.8 

Sales of Goods and Services 

539 512 437 3,787 463 87.8 

other than capital assets 

Interest, dividends and rent 

1 161 152 218 388 -77.9 

on land 

Financial transactions in 

assets and liabilities 

9,613 28,777 8,589 - 6 151 - 

Total 66,071 93,768 90,625 91,508 99,556 -8.8 

Tariffs 

The Provincial Treasury has completed a study on tariffs and rates for the Province and 

its public entities. This information will be made available and channelled appropriately 

before any changes and implementations can be effected. 

Income from Protected Areas 

Open tender processes are followed by the Eastern Cape Parks Board with regard to the 

hunting and culling of game. An annual game auction is also held. 

Provision of Tourist Facilities 

Wherever possible tourist facility rates are market related. These are reviewed from time 

to time. 

Free Services 

The Department renders statutory free services related to the functions of the Department 

in respect of consumer affairs. No significant income would be generated from these 

services as most of the people served are in the low-income bracket. 

Public services provided by Programmes 6 - 13 in relation to Environmental Impact 

Management do not generate any revenue for the Department. 

25

2.4.2 DEPARTMENTAL EXPENDITURE 

The total spending is R 736, 3 million which represents 97.14% of the total budget. There 

is an improvement in comparison to the 96.3% and 95.7% spent in the 2006/07 and 

2005/06 financial years respectively. 

Programme 

The table below shows the expenditure for the year: 

Final Appropriation 

R’000 

Roll- 

Overs 

R’000 

Virement 

R’000 

Total 

Voted 

R’000 

Actual 

Expenditure 

R’000 

Variance 

R’000 

Variance 

as a % 

of Final 

Appropriation 

R’000 R’000 R’000 R’000 R’000 R’000 R’000 

1 Administration 85,624 – – 85,624 78,814 6,810 7.9 

2 Integrated Economic Development Services 129,687 – – 129,687 127,137 2,550 2.0 

3 Trade & industry Development 343,999 – – 343,999 343,670 329 0.1 

4 Business Regulations & Governance 46,477 – – 46,477 46,154 323 0.7 

5 Economic Planning 1,000 – – 1,000 373 627 62.7 

6 Environmental –Management 42,729 – – 42,729 33,646 9,083 21.3 

7 Planning, Impact Pol & Waste 4,522 – – 4,522 3,425 1,097 24.3 

8 Ecosystems Bio & Nat Her Ma 102,748 – – 102,748 102,372 376 0.4 

9 Marine & Coastal Management 1,187 – – 1,187 726 461 38.8 

Total 757,973 - - 757,973 736,317 21,656 2.9 

2.4.3 TRANSFER PAYMENTS 

The bulk of our budget is transferred to our public entities as per the vote. These transfers 

are for economic development related programmes. 

INSTITUTION AMOUNT R’000 

Eastern Cape Development Corporation [ECDC] 180 210 

Eastern Cape Gambling and Betting Board [ECGBB] 20 233 

Eastern Cape Liquor Board [ECLB] 22 305 

Eastern Cape Parks Board [ECPB] 99 407 

Eastern Cape Tourism Board [ECTB] 22 500 

Coega Development Corporation [CDC] 25 200 

East London Industrial Development Zone [ELIDZ] 192 000 

Total Amount Transferred 561 855 

Alfred Nzo District Municipality 5 250 

Amathole District Municipality 3 000 

Chris Hani District Municipality 5 250 

UKhahlamba District Municipality 5 250 

Nelson Mandela Bay Metropolitan 3 000 

OR Tambo District Municipality 5 250 

Cacadu District Municipality 3 000 

Total Amount Transferred 30 000 

26

INSTITUTION AMOUNT R’000 

Nelson Mandela University 1 000 

Inkayeni Event Organisers 4 000 

National Business Initiative (NBI) 4 000 

Total 600 855 

2.5 Capital Investment, 

Maintenance and Asset Management Plan 

2.5.1 CAPITAL INVESTMENT 

Capital expenditure during 2007/08 amounted to R6.907 million comprising machinery 

and equipment. 

2.5.2 MAINTENANCE 

The Department incurred R105 000 towards maintenance, repairs and running costs. 

2.5.3 ASSET MANAGEMENT 

The Department has an Asset Management Policy which is aligned to the requirements 

of the National Treasury guidelines. However the Asset Management Policy could not 

be fully implemented during 2007/08 financial year resulting in the qualification of the 

audit report. No assets have been disposed of during 2007/08 and the Department is 

in the process of identifying redundant/obsolete assets to be disposed during 2008/09 

financial year. 

27

2.6 Programme Performance 

2.6.1 PROGRAMME 1: ADMINISTRATION 

Office of Head of Department 

Purpose 

To co-ordinate relationships within the Department and between the Department and 

relevant institutions at the different levels of government, as well as directly managing 

those functions and sub-programmes which fall directly under the Office of the HOD. 

Measurable Objectives 

Key measurable objectives for the Office of the HOD are linked to the efficient coordination 

of the following relationships: 

• The relationship between the different programmes of the Department, and between 

the Head Office and District Offices of the Department 

• The relationship between the Department and its Public Entities, especially with regard 

to the transfer of funds, the drawing of service level agreements and the accountability 

of the entities to the Provincial Legislature 



Sub-Programme 1.1: Office of the MEC 

STRATEGIC GOAL 

• To provide effective, efficient political oversight and ensure operational and 

budgetary alignment between the Department’s activities and the PGDP are 

established in accordance with the priorities decided by the Economic Growth 

and Infrastructure (EG&I) Cabinet and Cluster Committees. 

STRATEGIC OBJECTIVE MEASURABLE OBJECTIVE PERFORMANCE MEASURE/ INDICATOR 

Provide policy and leadership 

support, and oversight to the work 

of the Department 

Oversee the strategic direction of 

the department linked with the 

organization’s political mandate 

Setting of strategic leadership and policy for the year 

Provide support for the entire department and its public entities 

28

• The relationship between the Department and its national equivalents, the Department 

of Trade and Industry and the Department of Environment and Tourism 

• The relationship between the Department and the Office of the Premier, including 

the Office of the Director-General, and the efficient performance of all responsibilities 

assigned to the Department by the Office of the Premier 

• The performance of the Economic Growth and Infrastructure Cluster of which the 

Department of Economic Development and Environmental Affairs is the lead department 

• Measurable objectives of Strategic Planning, Communications and the Special Programmes 

Unit are specified below. 

Analysis of Constraints and measures planned to overcome them 

• Key personnel shortages are a constraint to efficient and effective service delivery. The 

prolonged vacancy rate at middle management level reflects a need to improve approach 

to recruitment efforts so as to attract competent personnel. Based on an analysis of PGDP 

responsibilities reflected in the Five-Year Strategic and Performance Plan, the Department’s 

functional organisational structure will be reviewed to improve operational performance. 

• Service delivery will be strengthened by establishing a fully-fledged Procurement 

Management System in accordance with Provincial standards and Supply Chain 

Management procedures 

ACTUAL PERFORMANCE AGAINST TARGET 

TARGET FOR 2007/08 ACTUAL FOR 2007/08 

Presentation of Policy Speech and 

tabling of Strategic as well as 

Annual Performance Plans for the 

2008/09 financial year. 

Monthly meetings with Top 

Management & weekly meetings 

with HOD 

Reporting conference with Public 

Entities and PEDF meetings 

2008/09 Policy Speech presented 

and Strategic & Annual 

Performance Plans tabled at 

Legislature 

Meetings held with the HOD & Top 

Management. 

3rd Quarter reporting conference 

held. 

PEDF meeting did not take place. 

CHALLENGES/REASONS FOR NON 

PERFORMANCE 

Delays in finalization of the 

Departmental Plans and late 

submission by Public Entities. 

Departmental commitments. 

PLANS TO ADDRESS 

CHALLENGES/NON- 

PERFORMANCE 

Ensuring constant and 

effective monitoring of 

the planning process. 

Meeting was scheduled to 

take place in April 2008. 

29



Sub-Programme 1.2: Office of the HOD 


• Provide effective and efficient administrative support 

service and leadership for the department. 


Provide effective and efficient 

strategic leadership and support to 

the department 

Efficient management of financial 

resources within the budget 

Spending within the budget 

Developing and ensuring 

implementation of the integrated 

strategic plan 

Quarterly Reports and Annual Report in accordance with the 

planning and budgeting cycle 

Unqualified audit report 

Number of turnaround strategies/initiatives implemented 

Enhanced service delivery at 

regional level 

Number of reports submitted and exceptions identified and 

dealt with 

A Public Entity established to 

enhance tourism development 

Established merger between the Eastern Cape Parks Board and 

Eastern Cape Tourism Board 

Provide effective and efficient 

strategic leadership and support to 

public entities 

Enhanced tourism, environmental 

and economic development 

Effective relationship with entities, control monitoring and 

evaluationsystems and procedures in place 

30



Spending on target for each 

quarter 

Performance in accordance with 

the Detailed Implementation Plan 

of 2007/8 

Ensure policies are in place in line 

with the departmental mandate 

Adjust operational plan in 

accordance with recommendations 

made and implement, monitor & 

evaluate audit improvement plan 

Monitor and evaluate regional 

offices in line with the operational 

plan as per programmes executed 

Provision of the necessary support 

to assist with the merger process in 

accordance with the merger office 

plan of action. 

Monitor, evaluate and review the 

achievements of the public entities 

in line with the strategic objectives 

and Provincial Growth and 

Development Plan priorities 

Implementation of the funding 

and reporting protocols in line 

with public entities shareholders 

compact 

Departmental spending not 100% 

on target for each quarter 

Departmental performance not 

100% in accordance with detailed 

implementation plan of 2007/8 

Departmental policies are in place 

in line with the Departmental 

mandate 

Operational plan partly adjusted in 

accordance with recommendations 

made 

Regional Offices of the Department 

monitored according to quarterly 

reports submitted to the Office of 

the Head of the Department 

The necessary support to assist 

with the merger was provided, 

given the alteration of HODs of the 

Department which complicated 

continuous support. 

Public Entities were reviewed on 

a quarterly basis by means of 

quarterly conferences chaired 

by the Member of the Executive 

Council of the Department 

The funding and reporting 

protocols were implemented 

during 2007/8 


PERFORMANCE 

Capacity constraints in the 

Department complicated 100% 

spending on planned target per 

quarter 

Capacity constraints in the 

Department complicated 100% 

spending on planned target per 

quarter 

No significant challenges 

experienced 

Concept document of turnaround 

strategy for the Department 

established in April 2008 

Due to capacity constraints in 

the Strategic Management and 

Monitoring and Evaluation Unit of 

the Department, thorough analysis 

of reports was not feasible 

The alteration of the HODs of 

the Department complicated 

continuing of this project 

Due to capacity constraints in 

the Strategic Management and 

Monitoring and Evaluation Unit of 

the Department, thorough analysis 

of reports was not feasible 

Not applicable 



PERFORMANCE 

Capacity constraints will 

be addressed as a matter 

of urgency during 2008/9 

financial year 

Capacity constraints will 

be addressed as a matter 

of urgency during the 

2008/9 financial year 


Robust expansion of 

the Monitoring and 

Evaluation Unit is planned 

for the 2008/9 financial 

year 

Robust expansion of 

the Monitoring and 

Evaluation Unit is Planned 

for the 2008/9 financial 

year. 


31

Strategic Management 

Purpose 

The Strategic Planning Sub-Programme establishes, maintains and extends an internal 

strategic planning function to monitor progress related to the Department’s Five-Year 

Strategic and Performance Plan and to ensure that appropriate alignment linkages are 

developed with relevant aspects of the PGDP, ASGISA, IDP, and PIDS processes. 


• To develop, manage and administer Information Communication Technology systems in 

the Department as specified in the DGITO responsibilities 

• To establish and maintain a comprehensive economic, environmental and tourismrelated 

information management system and to ensure that adequate electronic and 

other systems are in place for the efficient utilisation and dissemination of information, 

including a GIS facility 

• To promote and facilitate the establishment of a comprehensive, integrated Provincial 

Information Management System 

• To establish a broad understanding regarding the principles of strategic planning systems 

in the Department and its public entities 

• To ensure that appropriate actions are taken within each Programme so as to adhere to 

the procedures required for efficient and effective strategic planning 

• To establish workable Key Performance Indicators (KPIs) for all Programmes as well as 

their Sub-Programmes. 

Strategic Planning and Management is designed to strengthen internal systems and 

procedures related to strategic planning, reporting, monitoring and evaluationas well as 

associated information management for the Department. 

This programme involves the management and co-ordination of comprehensive strategic 

management systems designed to ensure that appropriate procedures are maintained 

in the Department and its Public Entities which includes the following: 

• Alignment with strategic planning procedures in other Provincial Government 

Departments and Agencies which are part of the Economic Growth and Infrastructure 

Cluster arrangement 

• Alignment with planning, organisation, budgeting, implementation and M&E procedures 

linked to the Provincial Growth and Development Plan (PGDP) 

• Alignment with planning and implementation procedures associated with the Municipal 

Integrated Development Plans (IDPs), particularly at District and Metro Municipality levels 

32

Specified policies, priorities and strategic objectives 

Requirements of various key information users – notably the Provincial Treasury, the 

Portfolio Committee on Economic Affairs Environment and Tourism, the Office of the 

Premier, and the Presidency – are all linked to the strategic planning portfolio. The unit 

ensures there is convergence in terms of the vision, mission, key performance areas, 

performance measures and budgets for all key stakeholders of the Department. Key 

alignment instruments such as the PGDP, the NSDP, the EG&I’ HIPPs, IDPs, NSDP and other 

current policies are used to align the work of the Department and its Public Entities. 

The priorities of the programme are to ensure that shareholder compacts and reporting 

protocols between the DEDEA and Public Entities are fully established and functional. The 

programme will also ensure relevant information and data is sourced for consideration 

by various programmes to assist with planning. 

Progress analysis 

Every year the Department conducts a review of its plans to ensure they are in line with 

key demands, policies and priorities of the Province. The last strategic review session was 

conducted from 9 – 11 January 2008. Key participants included the Hon. MEC Sogoni, 

senior management and regional directors of the Department. 

The programme is still understaffed with only one person responsible for the whole strategic 

planning and M&E component in the Directorate. A deputy director for planning was only 

appointed in December 2007. Other posts were being processed through the job evaluation 

system while others had to be re-advertised when no suitable candidates were found. 

Analysis of constraints and measures planned to overcome them 

For effective planning to take place, quality data and information from operations should 

be readily available. Presently the Department relies on ad hoc data from Statistics South 

Africa, the Reserve Bank, Global Insights, ECSECC and other third parties. The Department 

does not have a data repository system. Performance measures are poorly defined for all 

programmes which make reporting problematic. 

In the 2008/09 financial year, a number of projects have been planned to address some 

of the shortcomings. These include: 

• Conducting an organisational performance assessment 

• Conducting and M&E assessment in preparation for a DEDEA M&E strategy and action 

plan and reviewing DEDEA strategy 

• Development of logic models 

• Refining the balanced score card 

33

• Management training on budgeting, strategic planning, defining key objectives and measures. 

• Restructuring the strategic management component to give it capacity. 

Interactions with key role players will be intensified to ensure more useful information 

for planning is available. The programme will conduct several sessions with managers of 

each sub-programme to ensure quality indicators are developed. 

The planning cycle need to be synchronised to ensure timely completion of tasks at hand. 

This requires more personnel to be engaged within the strategic planning and management 

portfolio. All outstanding posts will be advertised in the 2008/09 financial year. 

Description of planned quality improvement measures 

DEDEA will adhere to the Treasury planning instruments and ensure that reporting is 

premised on the Operational Plan for the year under review. DEDEA plans to develop a 

group plan upon which all divisions and public entities of the department derive their 

strategic objectives, measures and initiatives. Sessions to develop measures will be 

conducted in line with reporting instruments of the Provincial Adminsitration, National 

Treasury and Programme of Action. 

Information Technology 

The Departmental Government Information Technology Office (DGITO) Sub-Programme 

which is part of strategic management consists of three separately budgeted projects 

managed by the DGITO: 

• Systems Development: GIS, Web Solutions and Business Analysis 

• ITM & Automation 

• Knowledge Management: Resource Centre 

Progress analysis: 

Systems Development 

• The Sharepoint server which was piloted at head office and launched in December 2005 

was reviewed and is due for upgrade in the 2008/09 financial year. 

• The Master Systems Plan has been reviewed and developed. 

• The unit assisted environmental affairs to launch NEAS which is maintained under IT 

• GIS awareness sessions conducted throughout DEDEA’s regional offices 

• The process of reviewing the intranet and internet was started in the year under review. 

ITM & Automation 

• Monitoring of service response rate by SITA and delivery through Action Request System 

(ARS) so as to improve the quality of service was conducted. 

34

• Cabling and networking of East London office was done 

• MS EA upgrades implemented for servers and desktops 

Knowledge Management 

• Continued support to the EDMS project including scanning and indexing of documents 

done on a continuous basis 

• Document policy compiled and is yet to be approved 

• Registry procedure compiled 

• User awareness and change management sessions done 

Resource Centre 

• Library collection increased after purchase of books 

• Computers bought for resource centres not yet installed due to shortage of office 

accommodation in the regional offices. 

General 

Staff attended relevant ICT conferences, courses and workshops so as to improve skills 

and keep up to date with latest technologies. 


• Aligning ICT Organogram with MSP 

• Recruitment of staff to deliver services 

• Roll out of Back Office and Desktop software as per Microsoft Enterprise Agreement 

• SITA procurement procedures have caused delays in delivering services to Department 

and payment delays. The IT component will work with SITA to ensure improvement in 

service delivery. Meetings to be held monthly with SITA to address concerns. SITA has 

given firm commitment to enhance delivery 

• SITA skills levels: on-site Microsoft specialist included in current SLA 

• About 12 posts have not yet been filled. These will be advertised by the corporate services 

unit in the 2008/09 financial year. 

• Shortage of space for new recruits 

• Problems experienced with suppliers on procurement issues 


• The department will continue to make use of SITA services. 

• The signing of the MS EA is a step towards standardising the environment within the 

Department and thus stabilising Information Communication Technologies 

• Maintain close monitoring of Service Level Agreements to ensure that more efficient 

services are rendered 

35



Sub-Programme 1.2.1: 

Strategic Planning & Management 


• Comprehensive strategic management systems are established and 

maintained to ensure that appropriate procedures are developed in the 

Department and its Public Entities with respect to strategic planning, 

information management and monitoring and evaluation. 

• Appropriate organizational systems, policies and internal arrangements 

are established and maintained to manage and administer the financial, 

operational, human resources, information management, communications 

and legal resources in the Department and in its associated Public Entities. 


Establish and update sound 

Strategic Planning systems in the 

Department, including linkages to 

Public Entities and Provincial and 

National sector Departments 

DEDEA Strategic Plan complies 

with Treasury specifications. 

Availability of DEDEA planning 

calendar and key decision making 

points. 

Public Entity Strategic & business 

plans aligned with DEDEA Strategic 

Plan. 

% compliance of strategic plan, annual performance plan and 

operational plan to treasury regulations 

% availability of updated departmental calendar 

% alignment of public entities strategic and business plans to 

DEDEA’s plans. 

Co-ordination between Strategic 

Plan and Sector Department 

Strategic Plans. 

Improvement in Organizational 

Performance 

Number of EG&I cluster meetings attend 

Completion of Organization performance assessment 

Service Standards Monitoring & communication plan 

Policy outputs from DTI and DEAT 

included in the ECDC and DEDEA 

Strategic Plans and aligned with 

PGDP/IDPs. 

DTI and DEAT Strategic Plans assessed and linkages established. 

% alignment of DEDEA Strategic Plan, APP and OP 

New 5-year Strategic Planning cycle 

is established. 

% completion of data collection for planning from key partners 

Provide framework for monitoring 

and evaluation of core programmes 

Number of logic models developed 

DEDEA Strategic Plan is linked 

to PGDP expectations and 

specifications. 

Degree of DEDEA plans alignment with PGDP and HIPPs 

36




PERFORMANCE 

100% 100% Responses and inputs from 

programmes still weak. 

100% 100% Adherence to planned dates is a 

challenge. 

N/A 

N/A 



PERFORMANCE 

90% 40% Capacity to scrutinize report not 

available. 

Public Entities to be 

invited to DEDEA 

planning and vice versa. 

12 5 Meetings clashed with other 

priorities. 

N/A 

Assessment Report 

Terms of reference issued. 

Recommendations not carried 

through 

HoD felt consultants had limited 

capacity 

Set of Service Standards Set of service standards developed No significant challenges 

experienced. 

DEDEA plans reviewed and 

adjusted in line with DTI and DEAT 

plans 

DEDEA plans partly incorporated 

(Industrial strategy, bpo, forestry & 

timber) 

Capacity to assess and incorporate 

limited. 

Re-advertise in Q1 2008. 

N/A 

To employ short term 

staff. 

Plans aligned & linked with clear 

objectives and measures that talk 

to each set of plan 

100% alignment No significant challenges 

experienced. 

N/A 

100% 10% data collection Limited staff capacity To employ short term 

staff to assist with 

data and information 

collection. 

5 Logic models developed 0 Terms of reference developed and 

dispatched. Recommendations not 

carried forward. 

90% 80% Limited staff capacity could not 

allow the project to be conducted. 

N/A 

N/A 

37



Sub-Programme 1.2: 


Sub-Programme 1.2.2: DGITO 


• Establish and maintain appropriate organizational systems to 

manage and administer the financial, operational, information 

management, communications and legal resources in the 

Department and in its associated institutional structures. 

• Establish and maintain appropriate organizational systems, 

HR policies and practices to administer, manage, develop 

and retain the human capital in the Department. 


To establish, manage and 

maintain efficient and effective 

mechanisms and procedures to 

meet departmental and legislative 

requirements for information 

management and information 

technology systems 

Users in the department have 

access to relevant services on the 

LAN and WAN 

% availability of LAN connectivity 

% of users connected to the LAN 

% of managers/users with mobile access to services on the LAN 

% of users connected at 100mb speed 

Approved Business Continuity 

Extent of DRP implemented (none, limited, substantial, full) 

%of desktop computers with up to date antivirus software 

%of servers with up to date antivirus software 

Extent of security policies implemented (none, limited, 

substantial, full) 

% of users who have signed the Acceptable Use Policy 

Master Information Systems Plan 

fully implemented and updated 

Extent of MISP implementation 

Number of MISP updates, revisions completed 

Provide ICT governance framework 

Percentage involvement within the provincial ICT governance 

structures (PGITOC & Committees) 

SANS 27001 certification achieved 

Provide effective transversal 

systems 

Percentage availability of Persal to users in relation to normal 

office hours 

Percentage availability of BAS to users in relation to normal 

office hours 

Approved e-Gov strategy 

implemented 

Percentage availability of e-mail to users in relation to normal 

office hours 

%availability of Intranet services to users 

38




PERFORMANCE 



PERFORMANCE 

98% 98% No Manager or Assistant Manager. Employment of staff in 








Substantial Substantial No Manager or Assistant Manager. Employment of staff in 






Substantial Substantial No Manager or Assistant Manager. Employment of staff in 




Implement the first year targets 

from the MISP 

MISP is up to date with current 

trends and technologies 

100% PGITOC, PNIC, PSS, Transversal, 

Hardware meetings attended 

Investigate advantages and costing 

of certification 

MSP submitted for signature. MSP 

not yet signed. 

- Employment of staff in 


- - Employment of staff in 


3 X PGITOC, 3 X PNIC, 3 X PSS, 1 X 

Transversal, 3 X Hardware, 3 X e-Gov, 

3 X GIS meetings attended 

Investigation continuing. 

No staff to conduct this duty. 

Awaiting job evaluations of post. 

Employment of staff in 


Employment of staff in 




98% 98% Problem with getting new codes 

tables to the regions. No Manager 

or Assistant Manager. 

Meet with SITA and 

Finance to plan way 

forward. 



98% 98% None Employment of staff in 


39


% availability of Departmental Internet website 

% of comments received about the website are positive 

Number of electronic services offered to users/citizens 

Provide Departmental Spatial data 

ensuring alignment with provincial 

standards 

Extent of relevant departmental information spatially 

referenced in accordance to Provincial standards 

% of available departmental spatial information updated 

annually 

Level of awareness of Geographic Information Systems (GIS) to 

all levels of management within the department 

Level of usage by users according to their function within the 

department 

Knowledge management 

strategy developed and system 

implemented 

% Of user profiles updated 

% of EDMS operational in regions 

Provide an effective records 

management system 

% of documents/records scanned and filed 

% of documents indexed 

% of old documents scanned and filed 

Provide resource centre services 

% of requests processed within stipulated time 

% of classified and catalogued materials within a six month 

period 

% of sourcing and subscribing to electronic content completed 

% of linkages established with public entities and other 

government departments 

40







98% 98% None 


PERFORMANCE 

We do not have control over the 

Internet site it falls under Office of 

the Premier. Updates and changes 

are forwarded to them 



PERFORMANCE 

A new website is in 

the process of being 

developed which will be 

under our control. 

98% Works order has been received from 

Microsoft and waiting for proposal 

from SITA. 

Waiting for proposal from SITA. 

98% - - - 

Continue contacting all 

relevant stakeholders to 

get the proposal. 

98% - - - 

All new versions of software loaded 

and tested 

New EIA system fully deployed 

All regional office GIS awareness 

completed. 

Full system not delivered yet. 

Access has been given. Department 

conducting tests of functionality. 

None 

Systems not delivered yet. 

100% of all new users created 90% updated No designated administrator, the 

department relies on Waymark 

100% of software installed EDMS not rolled out to the regional No budget for the servers that were 

need for the task 

80% of documents scanned and 

filed as they arrive 

100% scanning and filing No significant challenges 

experienced. 

50% of documents indexed daily 90% of documents indexed No significant challenges 

experienced. 

60% of old records filed 70% of old documents indexed No significant challenges 

experienced. 

100% of all books and materials 

requested available 

100% of books catalogued and 

classified every six months 

Have unlimited access to electronic 

content 

% of library catalogues, annual 

reports, strategic plans obtained 

from public entities and other 

government institutions 

100% procurement No significant challenges 

experienced. 

100% of books catalogued and 

classified every six months 

Users allowed on SABINET 

database 

No activity 


experienced. 


experienced. 

Official assigned to a different task 

(file plan for the office of the MEC 

which was drafted, sent to the 

Provincial Archivist for Approval 

and was approved. The file plan has 

been loaded on t he EDMS) 

Numerous reminders to 

consultants have been 

sent and access has been 

given for department 

to test. 

EDMS administrator 

position has been sent to 

HR for advertisment 

Servers will be prioritized 

in first Q1 2008 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

41


Programme1: Administration 




Monitoring & Evaluation 


• Comprehensive strategic management systems are established and 

maintained to ensure that appropriate procedures are developed in the 

Department and its Public Entities with respect to strategic planning, 

information management and monitoring and evaluation. 




and legal resources in the Department and in its associated Public Entities. 


To inform communities of practice 

for information, actioning and 

decision making purposes. 

Establish sound, effective 

and efficient participatory 

departmental monitoring and 

evaluation capacity, systems and 

reporting. 

Institutional arrangements in place for monitoring and 

evaluation. 

Fully functional and rolled-out electronic M&E system for the 

department, meeting user needs and used by department and 

public entities. 

M&E capacity study conducted, recommendations approved 

and implemented in the department. 

M&E Training modules developed. Training sessions conducted 

in the Department. 

Relevant aspects of the national programme of action and other 

priority programmes co-ordinated and refined. 

M&E Audits and Reports of the outputs of the PGDP 

Assist in the timeous and speedy 

identification and resolution of 

various service delivery challenges. 

Increased departmental and 

public entity awareness and 

communication via various media 

from monitoring information and 

data 

Well co-ordinated and attended M&E meetings and agreed 

resolutions made and implemented 

A number and type of service delivery challenges identified, 

location of these challenges and the extent thereof, a number 

of challenges successfully resolved. 

Monthly update on DEDEA and Public Entities performance 

Develop database, core data sets; populate GIS 

Quarterly reports; half-yr reports; PoA; PGDP reports; end-yr 

reports 

Newsgroups; learning networks; structured communique; share 

point portal 

Economic, Environment & Tourism Series; 

Formative & Impact Evaluation of 3 Programmes (E,E,T); Strat & 

APP evaluation 

Refine data collection instruments incl. balanced score card & 

KPIs 

M&E Assessment & Strategy for the Department 

Framework for mid-term & end-term evaluation 

42




PERFORMANCE 

Reports with new system. Reports with new system. Managers not adhering to 

reporting protocols. 

All units in the Department fully 

utilize the system 

Terms of reference developed for 

circulation to service providers. 


experienced. 



PERFORMANCE 

Clear communication on 

reporting to be developed 

and shared with 

Managers. 

N/A 

None No action required for this quarter No significant challenges 

experienced. 

N/A 

Training completed None No capacity in the department. N/A 

Departmental POA report Departmental POA report No significant challenges 

experienced. 

1 programme evaluated/ reviewed None No inputs from relevant 

Programme Managers 

At least 2 meetings attended. 2 meetings attended Clash with other important 

meetings. 

2 service delivery challenges 

identified and resolved 

None 

Responsibility placed with each 

component. 

N/A 

A formal review/ 

evaluation programme 

to be presented to 

Management 

1 1 No significant challenges 

experienced. 

N/A 

20% of DEDEA indicators georeferenced 

None 

Function given to IT unit 

DEDEA Consolidated Report(s) DEDEA Consolidated Report(s) No significant challenges 

experienced. 

N/A 

2 new newsgroups None Staff shortage. Revise organogram to accom. 

more personnel in M&E. 

1 expert series meeting held 0 Staff shortage. Revise organogram to accom. 


1 formative evaluation conducted 0 Staff shortage. Revise organogram to accom. 


30% Data collection instruments 

modified. 

M&E plan for the Department and 

Public Entities 

0 Staff shortage. Revise organogram to accom. 


None Staff shortage. Revise organogram to accom. 


Mid-term review None Staff shortage. Revise organogram to accom. 


43

Financial Management 

Purpose 

To manage limited financial resources in order to ensure effectiveness, efficiency and 

appropriateness in the delivery of outputs required for financial planning, management 

and control of the Department. 


• Promote and monitor efficient financial management systems within the department 

• Review and align departmental financial regulations in relation with National and 

Provincial regulations 

• Facilitate the establishment of an internal control unit 

• Facilitate and monitor the introduction of Supply Chain Management and its processes 

• Liaise with key role players and facilitate a process for smooth change over to General 

Recognised Accounting Practices (GRAP) 

• Facilitate the integration of SPU programs within departmental core programmes 

• Develop and manage the communication strategy of the department 

• Promote and market the department’s core business, challenges and successes 

Service delivery objectives and indicators 

Progress Analysis 

Planning, Budgeting and Revenue Management 

• Alignment of the budget with the departmental strategic plan 

• Alignment of budget to SCOA requirements 

• Approval of revised revenue tariffs 

Supply Chain Management 

To improve the processes within the Supply Chain Management Unit as well as to ensure 

compliance with Supply Chain Management Regulations, the department procured an 

electronic procurement and asset management system 

Sound Expenditure and Liability Management 

• Payroll Management 

• Appointment of personnel for banking services and deduction office 

• Management of fleet vehicles 

Accounting and Reporting Requirements 

• Clearing of BAS suspense accounts, monthly 

• Successfully closed the books for the financial year end 

• PERSAL/BAS Reconciliation 

• Production of commitment/creditors reconciliation 

44

General 

• Continuous development and training of staff to improve financial management skills 

and implementation of Supply Chain Management Frameworks 

• Use of management letters and internal audit reports on an ongoing basis to address 

issues of compliancy and to improve performance 

• Introduction and implementation of an electronic supply chain management system 

continues to contribute to quality management 

• Treasury Circular No. 11 of 2004 was adhered to and underpins our financial discipline 

which prevents fruitless and wasteful expenditure 


Planning, Budgeting and Revenue Management 

Lack of integration and alignment of strategic planning processes, lack of capacity for 

decision making and procurement processes largely contributed to under-spending 


• Limited capacity to implement the Supply Chain Management processes 

• Training programmes have been put in place to alleviate this on an on-going basis 

Accounting and Reporting Requirements 

• Migration from hard copy to electronic systems continues to raise audit queries from the AG. 

• The new approved organogram provides for a unit to be populated that will assist the 

Programme Managers in monitoring and evaluating compliance by the public entities in 

terms of PFMA and Treasury Regulations 


• Implementation of iBudget and eMapp systems as management tool to assist in budget 

planning as well as expenditure management 

• Upgrading of the electronic Asset Management System 

• Implementation of the electronic Procurement System 

• DEDEA to engage Treasury to persuade the Auditor General to accept validated and 

authenticated electronic information 

• Various practice notices distributed to correct procedures and processes 

• Formulation of Risk Management Strategy 

• Projection of PERSAL/BAS allocation linkages to accommodate changes in Standard Chart 

of Accounts (SCOA) allocations 

• Roll out of security system to regions 

45



Sub-Programme 1.3.1: Financial Management 


• Provide an effective financial management function in 

line with the PFMA and other related financial regulations 

and policies at minimum risk to the Department 


To provide an effective Financial 

planning function 

Ensure sound and credible creditors 

management 

Payment of creditors within 30 days 

Controlling and maintaining 

of suspense and bookkeeping 

accounts in the Department 

Month end closure 

Efficient cash management 

Ensure funds are available in the PMG account 




Sub-Programme 1.3: Financial Management 

Sub-Programme 1.3.2: Budget & Revenue Management 




and legal resources in the Department and in its associated Public Entities 


To provide Budget & Revenue 

Management function 

Preparation and monitoring 

of credible budgets for the 

Department. 

Effective and efficient In-Year- 

Monitoring. 

Alignment of budget with strategic plan. Timely submission 

of budget to Treasury. Capturing of approved budget by 30th 

March. Implementation of budget policy. Budget monitoring 

evaluation on monthly basis. 

Monthly compilation of credible IYM. 

Effective revenue management. 

Ensuring effective and efficient 

salary management 

Ensuring effective rebates office 

functioning. 

Monthly revenue reports 

IYM revenue projections. 

Maximize revenue collection. 

Salary related expenditure as per salary run, normal and 

supplementary 

Tax reconciliations 

46



Ongoing process. Visit main 

suppliers to built sound 

relationships and perform 

statement reconciliations.. 

All relevant suspense accounts to 

be cleared by month end. Activity to 

be performed weekly 

Weekly/Monthly submissions in 

compliance with Circular 18 

Cash flow management report 

Partially performed. Suppliers 

visited 

All suspense accounts cleared on a 

monthly basis. 

Files signed off by CFO - 

preparations for audit. 

Weekly/Monthly cash flow 

submissions done. 


PERFORMANCE 

Capacity gaps identified during 

reconciliation process 

Problems experienced in clearing 

some debtors' accounts. Persal-BAS 

reconciliation performed on a 

monthly basis. 

Payment authorizations done after 

cash flow submission deadline. 



PERFORMANCE 

Training conducted to 

address capacity gaps. 

Awaiting approval for 

write-offs. No challenges 

experienced. 

Utilization of 

disbursement report to 

correct cash flow requests 



BAS reports. Budget Committee 

reports. 

Budget loading. 

Budget Committee established. 

Budget loaded 


PERFORMANCE 

Not yet functional 



PERFORMANCE 

Dates have been 

scheduled. 

IYM report submissions 

Cash flow Management report. 

Annual cash flow submission 

Revenue evaluation report. 

Prepared final revenue cash flow 

for next financial year. 

IYM report submitted on time. 

Monthly business plans per 

programme submitted. 

Annual cash flow submitted before 

the 1st of April. 

Revenue evaluation report 

submitted. 

Prepared final revenue cash flow 

for next financial year submitted. 

No challenges experienced. 

Actual expenditure much less than 

cash flow projections and variances 

not satisfactorily explained. 

No alignment between monthly 

spending an projections. 


Files ready for audit Files ready for audit Awaiting for tax directives for 

benefits above R30 000.00 

Final annual reconciliations 

Tax Reconciliations submitted 

Files signed off by CFO - 

preparations for audit. 

Final annual reconciliations 

performed. 

Tax Reconciliations not yet 

submitted. 

Payrolls signed. 


Capacity gaps identified 

Introduction of 

procurement plans for all 

programmes. 

Introduction of 

procurement plans for all 

programmes. 

Pro-forma tax directives 

requested from SARS. 

Training in progress. 

47




Sub-Programme 1.3.3: Compliance & Risk Management 


• Provide an effective compliance and risk management function 

in line with the PFMA and other related financial regulations 

and policies at minimum risk to the Department 


To improve internal financial 

controls 

Organizational performance 

through good governance practices 

and all risks are managed 

Combating risks within the department; Management of all 

losses 

Provide Internal Control Services 

Ensure compliance with PFMA, Treasury Regulations 




Sub-Programme 1.3.4: Supply Chain Management 


• Provide an effective supply chain management in line with the PFMA and other 

related financial regulations and policies at minimum risk to the Department 


Demand Management 

Integrated Procurement Plan 

Acquisition Management 

Contract Management 

The equitable engagement of suppliers / end-users in a 

transparent, competitive and cost effective manner 

Effective administration and management of all contracts 

within DEDEA. 

Asset Management 

Departmental electronic asset register 

Customized Departmental Asset Management Policy 

Logistics Management. 

Memorandum of understanding (MOU) with service providers. 

Sound Stores management 

48



Management of risks. 

Monitor the progress. 

Preparation for audit readiness. 

Risk strategy framework developed. 

Risk Management Committee 

established. Risk register updated. 

Anti-corruption and fraud 

prevention plan developed. 

Register of relevant prescripts to be 

complied with developed. 


PERFORMANCE 

Risk assessment not performed. 

Plan developed but not yet 

implemented. 

The pre-audit is not fully functional 

at some cost centers. 



PERFORMANCE 

Risk management reports 

to be generated. 

Policy review and 

awareness sessions. 

Facilitate for full 

implementation of preaudit 

function. 



Revision of procurement plan for 

2008/09 financial year 

Monitoring and Evaluation of the 

procurement system - review 

Population of an electronic data 

base 

Monitoring and evaluation of the 

contract database 

Training of staff on new contract 

management system 

Monitoring and evaluation of an 

electronic asset register. 

Updating of electronic asset 

register. 

Monthly reconciliation of Fleet 

Africa and subsidized vehicles\ 

Stock taking 

2008/09 procurement plan 

submitted. 

Reviewal performed. 

Register of lease contracts 

developed and updated. 

Electronic contract database not 

yet implemented as there were no 

contracts awarded above 

R 100 000.00 

Electronic asset register developed, 

populated and finalized. 

Electronic asset register updated. 

Full Maintenance Lease vehicles 

reconciliation performed. 

Stocktaking performed on the 31 

May 2008 as per requirement 


PERFORMANCE 

No challenges. 

PPPFA not implemented in 

procurement system. 

Signed contracts not reviewed by 

Legal Advisor 

No challenges 

Opening balances for the previous 

years. 


Payment of invoices within seven 

days in line with the signed 

contract. 

No challenges 

N/A 



PERFORMANCE 

Centralization of SCM 

activities. 

All signed contracts to 

be submitted to Legal 

Advisor for reviewal 

Team assigned to correct 

on the opening balances 

of the previous years. 

No remedial action. 

49

Corporate Services 

Purpose 

To establish and maintain appropriate organisational systems, HR policies and practices 

to administer, manage, develop and retain human capital within the department. 

Measurable objectives 

• Identify and introduce initiatives designed to develop the skills and competencies 

required by staff to meet business needs 

• Facilitate, assist and monitor and advise on performance management and development 

system for better planning and improved performance 

• Promote and maintain effective relations with management, staff and Trade Unions and 

manage change effectively 

• Review and analyse staff roles and responsibilities and realign in relation to legislative mandates 

• Promote quality and best planning and practices in Human Resource Management 

• Analysis of impact of HIV/AIDS and related diseases on the current skills base and 

organisational performance and provide interventions 

• Enhance customer care services 

• Facilitate and assist in the development of departmental personnel delegations in line 

with the PSR 

Achievements for the Year 2007/08 

• A comprehensive orientation programme over a period of two days was held 

• Increase in the number of contracted interns and their ultimate permanent appointment 

within the department 

• Issuing bursaries to learners in economic, business and environment related fields 

• Awareness workshops/sessions on all HRM issues conducted in all regions and at Head office 

• An Employee Wellness Day was held in Bhisho 

• Complete transfer of employees to Eastern Cape Parks Board and Ezemvelo KZN Wildlife 

• Active population of the new organogram 

Operational Achievements 

1. Filling of critical vacant posts 

The following critical funded posts were filled: 

• Assistant Manager – EAP 

• Manager – LED 

• Senior Manager – Western Region 

• Chief Director – Environmental Affairs 

• Manager – Expenditure Management 

• Network Controllers 

50

• Senior Manager – Strategic Planning 

• Manager – Waste and Air Quality 

• Regional Manager – Environmental Affairs (Chris Hani) 

• Assistant Manager – HRD 

2. 

Organizational Structure 

A new organisational structure was approved and partially implemented during the 

2007/08 financial year. 

3. 

Labour Relations 

24 misconduct cases have been finalised and dealt with within the prescribed time 

frames. 3 out of 5 have been finalised. Roadshows have been conducted in all regions to 

update managers and employees on grievance procedures and misconduct matters. 

4. 

Performance Management System 

Great improvement has been noted in terms of submissions of signed workplans. 

Quarterly reviews were conducted and the payment of incentives linked to performance 

was done in accordance with the correct measures and tools as specified in the 

Performance Management and Development System. 

5. 

Skills Development 

The department had an intake of 33 interns during this financial year and 29 of these 

interns were later appointed permanently within the department. There were 53 new 

bursary intakes in the Environmental, Tourism and Economics fields. An orientation 

session was conducted for all new employees. 

6. 

Service Benefits 

For the financial year 2007/08, a total of 305 leave gratuities and 43 Pension payouts 

were processed. There was a great improvement in turnaround time for the processing 

of service benefits for those employees that left the department through attrition. Leave 

gratuities were able to be processed and paid out within 1 month and pension payouts 

within 60 days. 

7. 

Employee Wellness Programme 

An EAP Assistant Manager and EAP Practitioner were appointed. Awareness Workshops 

and Election sessions for safety representatives were conducted in all the regions. 

Training has been conducted. 

51

8. 

Collective agreements 

Staff transfer to Ezemvelo KZN Wildlife and Eastern Cape Parks Board took place in 

2007/08. These agreements assisted in the smooth transition and transfer of employees 

to the relevant institutions. 



Sub-Programme 1.4: Corporate Services 


Human Resources Management 


• To promote effective Human Resources planning and HR practices 


To provide effective and sound 

human resource management 

To manage staff in the department 

Facilitate sessions on HIV and AIDS and other health related 

illnesses 

Coordinate and facilitate training of wellness role players 

Provide a team that will drive the employee wellness 

programme at Head Office and Regions 

Having a workplace that will look into the safety of its 

employees 

Skills Audit 

Workplace Skills Plan 

Induction Programme 

52

Analysis of constraints and measures planned to overcome them: 

Challenges for the Year 2007/08 

• Delays in turnaround time to fill in the vacant posts and the finalisation 

• Finalisation and payment of long outstanding exit benefits backlogs 

• Reluctance of officials to adapt and comply with demands of the PMDS processes. 

• Due to some trained job evaluation panellists leaving the department, there were delays 

in finalising job evaluation processes which had an impact on the filling of critical posts. 



Employees empowered to manage 

their illnesses 

Identification of Wellness 

Committee members 

Availability of first Aid kit, fire 

extinguishers and condoms 

Assessment of gaps and training 

needs 

Monthly sessions held 


PERFORMANCE 

Lack of commitment from trained 

peer educators who are supposed 

to drive the awareness program. 



PERFORMANCE 

Volunteers to be sought 

and trained to support 

the existing peer 

educators 

Not done No budget for accommodation To arrange training 

per region to avoid 

expenditure on 

accommodation 

Wellness committee meeting was 

held in EL 

All regions have condoms 

Skills audit was done to all regions 

/Programmes at Head Office to 

asses training needs and gaps 

Training and Development courses have taken place as follows 

3 persons for Contract Management 

3 persons for Data Quantitative Technology 

BUSARIES 

8 Completed their studies , 3 interested in our internship 

35 external candidates for 2008/09 awarded bursaries 

INTERNSHIP 

14 absorbed by the department 

3deceased 

61 currently 

Skills Development Committee meeting has been convened for awarding 

of bursaries , which will be completed on the 10: 04:2008 

90 new appointees including interns were inducted on the 26 and 27 

February 2008. 


experienced. 


experienced. 

Programmes are having their own 

training programmes not involving 

HRD or submitting reports 

Some of the courses selected 

ended up not being attended due 

to lack of cooperation between 

departments and service provider. 

This resulted in lack of addressing 

skills gap identified through PDP’s. 

Skills Development Committee 

partially dysfunctional 

The PERSAL report generated does 

not specify previous employer for 

MIP purpose. 

N/A 

N/A 

N/A 

53


Career Expo 

To promote sound labour relations 

Effective Management of Grievances in the Department 

Effective management of discipline in the Department 

maintained 

Effective Management of disputes maintained 





Organizational Development 


• To facilitate coordination of service delivery initiatives, efficiency services, 

skills development programmes and management of PMDS. 


To improve individual and 

organizational performance 

Departmental establishment 

Managed 

Employees are in correct responsibilities and objectives on 

Persal 

Realignment of activities to components 

54



Visited Nkonkobe Municipality which hosted their careers day on the 29 

March 2009 

The sub-directorate is in possession of 7 grievances from the staff which 

are currently handled between the unit and all the concerned parties 

The sub-directorate is in possession of 

5 grievance in January & February 2008. 

1 grievance in March 2008. 

8 Misconduct cases were handled in January. 

1 misconduct case was handled in February.2 misconduct cases were 

received in March. Disciplinary 

Hearings have been held for 3 of them with one waiting for the 

appointment of presiding officer and employer representative. 

One suspension has been effected during this reporting period 

6 disputes are currently handled in the unit of which 3 of them will be 

conciliated and arbitrated in the month of April. 


PERFORMANCE 

Department of Education 

has tendency of not taking 

responsibility as mother body of 

this exercise. 


experienced. 

The unit is still having a capacity 

gap in the pool of presiding and 

investigating officers that we have 


experienced. 



PERFORMANCE 

Training of identified 

managers management 

of discipline,grievances 

,appeals,incapacity and 

substance abuse has 

been arranged and is 

continuing. 

N/A 



Establishment maintained on 

Persal 

Activities are correctly aligned to 

component 

Done for the previous financial year 

Alignment of incorrect 

responsibilities and objectives 

completed in January 2008. 

Reviewal of exception report and 

correction where necessary was 

done in February 2008. 

Done, regular monitoring is 

maintained 

Realignment of activities to 

components finished in January 

2008. 

Exception report corrected where 

necessary in February 2008. 


PERFORMANCE 

Awaiting for BAS linking codes, to 

update establishment for current 

financial year 

Poor interaction between OD and 



experienced. 



PERFORMANCE 

To improve working 

relations 

N/A 

55


Correctness of pay points 

Development of job descriptions 

All DEDEA employees must have standard job description 

Job Evaluations 

All Jobs evaluated and updated on the Persal system 

Norms and standards 

Office Accommodation 

Specifications 




Sub-Programme 1.4.3: Office Management 


• To enhance office administration and customer care services 


To provide efficient and up to date 

office management function 

To provide logistical support to 

all staff 

% staff with requisite office space and equipment 

56



All the employees on the correct 

paypoints 

All job descriptions for employees 

are in their files 

All employees place on the correct 

salary levels 

Norms and standards for office 

accommodation in place 

Specification for office furniture 

and equipment in place 

Ukhahlamba region has not yet 

created pay point, still attached to 

Chris Hani Region 

Address for Ukhahlamba region will 

be available on the 1st May 2008 

80% of job descriptions developed 

by end February. 

60% of Identified posts have been 

evaluated 

Identified gaps and shortcomings 

in January 2008. 

Classification of occupational 

classes in February 2008. 

Reviewal of existing and 

development of new standards 


PERFORMANCE 

No address for Ukhahlamba, It is 

continuing problem of employee 

to be on wrong pay points, whilst 

we have provided HR Panning with 

newly created pay points 

Managers/Supervisors do not 

release subordinate to attend JD 

work session 

Job evaluation is regarded as an 

additional responsibility 

Official not aware of office 

standards 

Availability of concerned line 

managers 



PERFORMANCE 

HR Planning must consult 

OD when they hire new 

appointee/s 

Awareness campaign on 

the importance of having 

job descriptions for 

contracting 

Nomination and 

appointment of enough 

Panel Members and 

Analysts. 

Inclusion of Job 

Evaluation on the 

performance agreement 

of managers 

Working of departmental 

officials 

Workshop managers 

on the importance 

of occupational class 

specifications 

Maintenance 



In HOD’s office partitioning of 

offices is finished. 

Painting of offices is still in process. 

Fitting of carpet tiles at 2nd floor 

and 3rd floor receptions is finished. 

Built in cupboards and ceramic tiles 

at the 2nd floor kitchen is finished . 

Office space: 

Bisho Business Village Block 13 

Partitioning of front part of open 

plan space and made it a secured 

office is finished. 

Partitioning of open plan space into 

4 smaller offices is still in process. 

Air conditioning units : 


PERFORMANCE 

Office accommodation is a big 

challenge not only at Head Office 

and also in the regional offices and 

parking bays as well. 



PERFORMANCE 

This problem needs to be 

addressed at a high level 

in the Province. 

Office Space Provide adequate office space Inadequate office space DPW approached for a 

bigger office space 

57


Efficiency of cleaning services (yes/no/sometimes) 




Sub-Programme 1.4.4: Special Programmes 





and legal resources in the Department and in its associated Public Entities 


Policy implementation, monitoring 

and advocacy 

Compliance by the department 

in implementing policies and 

legislation with regards to 

the groups. To monitor the 

implementation of policy 

imperatives in respect of Youth & 

Gender 

All departmental policies and guidelines are reviewed and 

comply with legislation with regards to the marginalized 

groups. 

Each DEAET programme supports a project of marginalized 

groups. 

58



New installations 

6x under ceiling air conditioning 

units will be supplied and installed 

on Monday 07 / 04 /08. 

Faults and repairs of air 

conditioning units: 

8 x Air conditioning units were 

faulty and repaired. 

Affected offices were 321, 307 , 

335,158 , 216 , 206B , MEC’s Office 

and server room. 


PERFORMANCE 


experienced. 

N/A 



PERFORMANCE 

Telecommunications 

New telephone installations: 

2x Eggo line telephones in offices 

226 and 303. 

7x Baseline telephones in the 

following offices 

2 x in office 158. 

2x in office 154A 

1x in office 166 

1x in office 206B 

1x 2nd floor reception. 

Pin Codes: 

14 pin codes received from Treasury. 

Telephone faults and repaired: 

10x telephone extensions repaired 

including fax lines. 

Replacement of fused fluorescent 

tubes were done in the 1st floor 

,2nd floor and 3rd floor offices. 


experienced. 

N/A 

Housekeeping and Messenger 

Services 

2nd floor and 3rd floor toilet 

leakages have been fixed by 

Department of Public Works. 

Toilet leaks at the Bisho Business 

Village Block 13 have been done by 

the private company. 


experienced. 

N/A 



To facilitate the process of 

appointment of the Consultant for 

the development of the Gender 

Policy Guidelines. 

Appointment of the Consultant 

for the development of the 

Gender Policy Guidelines has been 

approved. 


PERFORMANCE 

Processes have been delayed due 

to the end of the financial year as 

well as the fact that R500 000 was 

taken from the unit’s budget for 

use in another project. 



PERFORMANCE 

Allocation of funds in the 

new year. 

System will accommodate 

the new budget. 

59


Celebration of Institutionalized and 

awareness days with an intention 

of disseminating information 

about departmental policies and 

programmes 

Information on departmental 

policies and programmes are 

disseminated through these 

activities 

Institutionalized days are celebrated and information on 

departmental policies and programmes is disseminated. All the 

celebrations will be based on the department’s core business. 

Departmental awareness raising sessions 

SMME support and development 

SMME are organized and supported 

with information on how to start 

and sustain their initiatives 

SMME structures in their development needs. Capacity building 

workshops held in each district including the metro. Meetings 

with partners and agencies to seek their support. Women are 

exposed with entrepreneurship opportunities 





Sub-Programme 1.4.5: Communications 

• To develop a comprehensive departmental communication 

strategy in line with the GCIS Handbook 


Media Liaison Media Monitoring & Liaison Media Management; Quarterly Media plan 

60



2 staff members to attend Gender 

Audit Training session. 1 to attend 

training on Disciplinary procedures 

The Draft roll out plan in 

preparation for the launch of 

the Youth Development and 

Empowerment Plan. 

Development of a Data base of 

Co-operatives for Women Youth 

and Disabled People in the Alfred 

Nzo region 

Draft of the departmental plan will 

be completed on the 12th March 

2008 

Infrastructural Accessibility Audit 

report on the 8th April 2008 

Institutionalized days were 

celebrated 

2 staff members attended Gender 

Audit Training session. 1 attended 

training on Disciplinary procedures 

A draft roll out for Youth 

Development and Empowerment 

Plan has been completed and 

forwarded to Manger for inputs. 

Developed a draft data base of 

Co-operatives for Women Youth 

and Disabled People in the Alfred 

Nzo region 

The draft has been completed 

All Public Entities were visited and 

the audit was done 

Institutionalized days were 

celebrated 


PERFORMANCE 


experienced. 

Most projects funded by the 

department do not mainstream 

youth. 

There is no consolidated data base 

in the local municipalities and the 

dept. It had to be sourced through 

the local structures i.e. Youth 

Council and Disabled forum which 

are doing voluntary work and are 

not paid for the job they are doing. 

Some of the activities are not 

speaking to the mandate of the 

Department 

The report has to be integrated 

with the Departmental Audit 

verification has to take place as it 

was done in 2006 


experienced. 



PERFORMANCE 

N/A 

Direct interaction with 

Programmes with a view 

of influencing them 

to plan using gender, 

disability and youth 

lenses. 

Have an arrangement 

with Enterprise 

Development 

Will be aligned to both 

HIV and AIDS Provincial 

Strategic Plan and the 

Departmental Policy 

Speech 

Will communicate with all 

SPU in regions 

N/A 

Workshops and meetings held. Workshops and meetings held. No significant challenges 

experienced. 

N/A 



Media briefing session (SMS & CEO 

Public Entities) 

Institutionalized days and 

departmental events 

No meeting has taken place 

Not achieved 


PERFORMANCE 

No meeting 

Waiting for the approval of the 

Draft Communication Strategy. 

Lack of information sharing 

platform and willingness to utilize 

Publications from the Directorates 



PERFORMANCE 

To prepare for the next 

meeting. 

An approval of the 

Communication Strategy 

61


Publications Marketing & Publicity Updating website with current information. Radio, publication 

and print advertising. Compile a branding strategy. Design and 

compile newsletter 

Events Management Calendar of events Consultation with all the Directorates 

Communication Strategy Develop a Communication Strategy Develop a fully consulted Communication strategy 

2.6.2 PROGRAMME 2: INTEGRATED 

ECONOMIC DEVELOPMENT SERVICES 

Purpose 

The Economic Development Programme is responsible for facilitating and supporting 

economic growth and development in the province. This objective is pursued in a context 

of high unemployment, endemic poverty and huge backlogs in social and economic 

infrastructure, on the one hand, and the imperative to seek advantages from the dynamics 

of economic globalization, on the other. The work of the Programme stems from a 

wide range of national and provincial pieces of legislation, strategies and programmes 

which are related to economic development, sector development, liquor and gambling 

regulatory functions, consumer protection, and business practice regulation. 

The functions of the Economic Development Programme are conducted through the 

following sub-programmes: 

• Integrated Economic Development Services 

• Trade and Industry Development 

• Business Regulation and Governance 

• Economic Planning 

62



Publicity on Women Empowerment 

Seminar and Tourism Summit 

Publicity of the departmental 

activities 

Awaiting for direction from OTP 

Consultation with all the 

Directorates 

Develop a Draft Communication 

strategy 

Publicity on the Women 

Empowerment Seminar and 

Tourism Summit took place as 

planned. 

Publicity of the departmental 

activities namely Women’s 

Empowerment Seminar and 

Tourism Summit. 

Branding Strategy- not approved 

at OTP. 

Process of compiling the newsletter 

Consultation with all the 

Directorates 

Develop a Draft Communication 

strategy 


PERFORMANCE 

No challenge, one through Media 

Releases only (free radio publicity). 

Done through assistance with 

ECTB. 

Women’s Seminar-Delay on 

procurement 

Tourism Summit –done through 

radio & print. 

Strategy –not yet approved by 

Cabinet/ Legislature. 

Currently compiled 70% of the 

content. 

Proper coordination of the activities 

from various Directorates 

A Draft Communication Strategy 

has been compiled and circulated 

electronically to SMS for inputs. 

No feedback as yet. 



PERFORMANCE 


Publicity took place 

through free community 

radio interviews (Unitra 

fm). 


To receive direction from 

OTP. 

To be completed before 

end Oct 2007. 

Forwarded to IT for 

intranet placement 

Presentation to SMS 

meeting for inputs 

Through these sub-programmers, the core business of Programme 2 is centred on the 

activities listed below: 

• Development of key sectors of the economy 

• Facilitate local economic development 

• Contribute to the formulation of economic policy development and articulate the 

economic development strategy for the Eastern Cape 

• Facilitate the increase in trade between the province and other economic regions; 

• Promote fixed investment into the province 

• Promote economic development through the championing of public-private partnerships 

• Promote and facilitate economic empowerment programmes 

• Promote SMME development 

• Promote technological innovation and increasing competitiveness in key sectors of the economy 

• Champion initiatives which improve the province’s logistics capabilities and enhance key 

supply chains 

• Provide integrated economic project support for selected categories of projects 

• Provide an effective and efficient consumer protection service 

• Ensure effective and prudent business regulation in the province 

63

Regional Offices are strategically located to facilitate, co-ordinate and monitor the 

implementation of targeted programmes and interventions. Public entities which are the 

implementing arms of some of the programmes’ key delivery areas, such as the ECDC, 

the CDC, ELIDZ, ECTB, ECGBB and ECLB are aligned to specific sub-programmes, with 

the aim of achieving operational effectiveness. In line with their respective mandates, 

public entities are responsible for the implementation of industry development, trade 

and investment promotion, sector development, tourism development, economic 

empowerment, regulation of liquor, gambling and betting activities and other economic 

growth responsibility programmes. SLAs are entered into for performance-based 

monitoring and evaluation with all implementing institutions. 

Through the Head Office, Public Entities, and the Regional Offices, the Economic 

Development Programme coordinates a number of economic instruments, in pursuit 

of sustained interventions to promote growth and development, through its Integrated 

Economic Development Services Unit. The Programme seeks to exploit the province’s 

regional comparative advantages through enterprise development and local economic 

development as well as economic empowerment. The interventions in this programme 

are necessarily sensitive to the dualistic nature of the province and its spatial diversity. 

Our interventions are aimed at building and enhancing the economic competitiveness 

of local economies, in order to encourage sustainable growth that is inclusive of local 

government, the private sector and non-government sectors. The work which is done in 

this Programme is strategic in linking the second economy to the first, in stimulating local 

economies to grow, compete and create more jobs. To date, our main areas of focus have 

been the provision of financial and programmatic support aimed at stimulating economic 

activity and the development of strategies and frameworks to enable such interventions. 

The Programme also focuses on Trade and Investment Promotion as a targeted approach 

to growth sectors that have been identified – based on the province’s current competitive 

advantage. This function is discharged through the ECDC. Apart from the Tourism Sector, 

the Programme has had limited focus in the area of Sector Development. This however is 

changing very rapidly with the focus on an Industrial Development Strategy for Province, 

to be launched in the 2008/2009 financial year. 

To date, in the area of and Industrial Development, the province has invested heavily in 

the development of the two Industrial Development Zones through the CDC and the 

ELIDZ. In addition to the ECTB, whose mandate is to develop products and market the 

province as a preferred tourist destination, the Tourism Unit in the Department focuses 

on creating an enabling environment for the sustainable growth and development of 

64

the tourism industry in the Eastern Cape. Another area that has received limited focus 

in terms of resourcing and capacitation is the Economic Planning function of the 

programme. This function should analyse policy, identify key intervention areas based on 

empirical research, and analyse the impacts of our programmes. There are plans in place 

to recruit personnel in the 2008/2009. 

The final delivery area of Programme 2 is Business Regulation and Consumer Protection. In 

this area, the programme aims to develop an efficient, equitable, and socially responsible 

business regulatory environment by promoting consumer rights, good corporate 

governance, and compliance with business regulations whilst protecting consumer 

rights. The programme also seeks to maintain an effective and efficient regulatory system 

for the liquor and gambling industry, through the ECLB and ECGBB. 


• Development of the Provincial SMME and Co-operatives Strategy 

• Increase the contribution of SMME’s to the growth of the economy 

• Inform Policy, Legislative Framework and Promote Dialogue 

• Inform IDPs to Reflect Provincial Economic Growth and Development Priorities 

• Sound Institutional Linkages To Enhance The Development of Local Economies 

• Ensure The Strategic Alignment of LED Initiatives To Government Programmes 

• Keep Track Of Investment Performance Trends 

• Stimulate Growth and Development in Investments 

• Enhance Sector Performance and Develop Sectors Competitiveness 

• Inform industrial growth & development strategies 

• Eastern Cape Tourism Master Plan review for 2007-2011 

• Tourism Sector Summit for stakeholder engagement and participation. 

• 2010 Tourism Readiness Project Plan focusing on entrepreneurial opportunities associated 

with hosting the 2010 FIFA World Cup. Investments in the identified projects. 

• Formulate a national tourism skills development strategy 

• Establish partnerships and assist emerging entrepreneurs. 

• Operate An Efficient Consumer and Business Support Programme 

• Raise awareness and promote compliance 


During the year under review, R30 million was allocated to LED Projects throughout the 

province, in support of IDP aligned interventions in municipalities. This translated to 16 

projects in the 6 District Municipalities and the Nelson Mandela Bay Municipality. The 

convergence framework was developed by DEDEA, the Department of Local Government 

and Traditional Affairs (DLGTA) and Thina Sinako, i.e. “convergence team”. A Pilot project in 

65

Amathole DM to evaluate LED Projects and ascertain impact on local economies was also 

conducted and is to be completed in the next financial year. 

Linkages have also been strengthened with the local sphere of government, wherein 

various workshops were hosted by the Programme to inform on LED, BEE and Cooperatives. 

The Programme also co-funded the conference and the workshop on the Small Towns 

Regeneration Strategy hosted by the Amathole Economic Development Agency (AEDA), 

and a Tourism Summit. 

The LED Unit undertook a benchmarking study visit in the Department of Economic 

Development (DED) and the Gijima LED Support Programme in KwaZulu-Natal. In terms 

of funding, training and academic institutions, both the LED and Enterprise Development 

units engaged some potential partners, and this is to culminate into signed MOUs in the 

next financial year. 

The programme also reviewed and developed a strategy to improve the image and the 

effectiveness of the Office of the Consumer Protector, in order the be more visible to 

the public. 28 consumer affairs officials received training by an NCR accredited trainer, 

and 30 officials, responsible for consumer advice and compliance, were trained in usage 

and application of the Integrated System (Resource File), and on handling of complaints 

arising out of the credit agreements by the NCR. Research surveys on implications of 

apparent shortcomings in the processing and management of court orders on the 

credit market and consumers were also conducted, and a Consumer Rights Day was 

successfully hosted. 

In the areas of tourism, a situational analysis report of the Tourism Master Plan was 

completed, and a report on the 2010 Tourism Readiness Study was also completed. 


The Economic Development Programme has had a consistent challenge with the 

filling of critical posts in the year under review, in virtually all the sub-programmes. The 

position of Programme Manager has been largely vacant, only to be filled in March 2008. 

This instability in such a critical position has affected other areas of delivery. Also, the 

Department at large, has had challenges in optimizing efficiencies in oversight over 

its delivery arms, namely, the regional offices and the public entities. As a shareholder 

department, the monitoring tools and systems are not intact and well applied. 

As a province which is in need of development, the responsiveness of the provincial 

government to second economy interventions must be optimised. We have become 

66

aware that the business support needs of SMMEs and co-operatives have increased 

dramatically, but the Department has not been responsive enough in terms of the 

capacity required to respond to these needs. In local economic development, the main 

constraint stems from inadequate monitoring and project management systems, as 

well as limited financial resources made available to LEDs to actually make a sustainable 

impact on local economies. Apart from the interventions on tourism, the Department 

has also not been responsive to the needs of other critical sectors in the province in order 

to assist them to be competitive both locally and internationally. 


Plans for the 2008/2009 financial year are to significantly change the face of the 

programme in terms of building all the requisite skills and capacity needed. The 

Department is also reviewing its delivery model, and plans are in place to enhance both 

the effectiveness of regional representation as well as oversight over public entities. Plans 

are also in place to finalise within the next financial year a number province-specific 

economic frameworks and strategies which will guide the province in implementing 

economic tools that have a visible and a sustainable impact. The plans that are in place 

will ensure that Department is adequately capacitated to be an economic reference point 

in the province, has increased its ability to provide leadership and direction and control 

to and over its public entities and has the capability to develop, implement and monitor 

effective strategies. 

At sub-programme level, the plan is to finalise LED, Cooperatives, SMME, and BEE 

strategies. The Sector Development sub-programme will produce sector plans aligned 

to the PIDS. The sub-programme will also introduce the cluster system and processes to 

support emerging cluster participants. 

We will also facilitate the participation of SMMEs and BEE companies in the mainstream 

of targeted value-chain sectors. 

Strategic Goal 

Effective programmes, procedures and systems are established which will generate higher 

levels of economic growth and employment creation and which will assist in reducing 

spatial and racial inequalities in the Province. Effective advisory services to promote and 

protect the rights of consumers are established and maintained. Appropriate institutional 

structures established and maintained to administer and regulate the gambling and 

liquor industries in accordance with prevailing national and provincial legislation. Sectorfocused 

Public Entities are established, financed and monitored to ensure that quality 

services are available and delivered to all citizens of the Province. 

67


Programme 2: 

Integrated Economic Development Services 

Sub-Programme 2.1: Enterprise Development 


• Develop an Integrated and Sustainable Pro-Poor Provincial Economy 


To Sustain Economic Growth and 

Development Through Shared 

Partnerships 

Development of the Provincial 

SMME Strategy 

Development of the Provincial Cooperatives 

Strategy 

Inputs and policy proposal 

Full participation in National, Provincial and Local initiatives 

pertaining to Co-operatives, Enterprise and Industrial 

Development 

Increase the contribution of 

SMME’s to the growth of the 

economy 

Quarterly Workshops/ seminars/ 

Coordinate Institutional Support 

for Enterprise Development 

Integrated institutional 

development support 

Reports on SMME financial and non-financial support rendered 

Institutional co-operation on socioeconomic 

research and enterprise 

development 

Coordinated framework for Research and Development of 

Enterprises 



Programme 2: 


Sub-Programme 2.2: Local Economic Development 

• To Sustain Economic Growth and Development Through Shared Partnerships 


To Promote Economic Growth and 

Development of Local Economies in 

Partnership with Key Stakeholders 

by Aligning LED Initiatives with 

Government Programmes 

Inform Policy, Legislative Framework 

and Promote Dialogue 

Inputs Towards Provincial LED Policy Development Processes 

68



Initiation of the project in terms of 

Development of TORs 

Hold 6 consultative workshops, 

inclusive of NMM 

Approved provincial Cooperatives 

strategy 

1 Business opportunities workshop 

to inform potential SMMEs of 

opportunities in order for them to 

make informed decisions. 

1 BBBEE workshop on awareness 

about codes of good practice 

ECDC and SEDA reports 

TORs completed, and process of 

procurement initiated 

3 District workshops held 

Strategy process not completed, 

but in process 

1 workshop held at Ukhahlamba 

District Municipality 

Workshop was successful, and time 

specific resolutions were taken on 

key sectors: tourism; agriculture, 

and agro-processing. There will be 

a follow-up reporting session in 6 

months on the progress made 

Data on Financial and non-financial 

support rendered not yet analyzed 

due to late submission of reports 


PERFORMANCE 


experienced. 

Remainder of 3 workshops affected 

by delays due to end of FY 07/08 

SLA’s signed late and that impacted 

on service delivery 

1 BBBEE workshop was postponed 

on request by the business forum 

in Kokstad 

The absence of agreed reporting 

guidelines in terms of deadlines 

has resulted in unclear 

expectations 



PERFORMANCE 

N/A 

3 workshops have been 

rescheduled to first 

quarter of FY 08/09. The 

strategy development 

process will be completed 

in the first quarter of FY 

08/09 

A new date has been set 

for 21 May 2008 

The Department will 

specify protocols of 

reporting, including 

target dates in the SLA 



Participate in LED Planning 

Sessions with DLGTA and 

Thina Sinako in preparation 

for the LED Consultative and 

Planning Workshops in 6 District 

Municipalities and the Metro, 

in order to promote coherent 

provincial LED hands-on support to 

municipalities. 

LED Planning Sessions with DLGTA 

and Thina Sinako were successfully 

convened. The roadmap for 

the consultative and planning 

workshops was conceived in these 

sessions. 

LED Consultative and Planning 

workshops successfully in 6 district 

municipalities and NMM. 

Stakeholders were updated on 

the convergence framework, 

performance and expected future 

plans towards LED support 


PERFORMANCE 

Poor attendance by some 

stakeholders 



PERFORMANCE 

Programme meeting with 

LED units in all regions 

to discuss challenges in 

implementation to be 

arranged 

The LED Consultative 

and Planning Workshop 

Report to be presented in 

the PEDF, MUNMEC and 

EXCO, where challenges 

will be discussed and 

clarified 

69


Participation in all LED and PEDF forum meetings 

Integrated Strategy and Implementation Processes Practiced 

Inform IDPs to Reflect Provincial 

Economic Growth and 

Development Priorities 

Participate and make inputs in the IDP review processes 

and status reports around ISRDP and URP to reflect on 

Departmental priorities 

Existence of policy aligned provincial & district plans and 

related projects 

Enhanced Department Institutional Capacity 

Record Of Year To Year improvement and accelerated service 

delivery 

Research and Development Support Programme. Enhanced 

support to HIV & AIDS victims and communities 

Sound Institutional Linkages To 

Enhance The Development of Local 

Economies 

Ensure The Strategic Alignment 

of LED Initiatives To Government 

Programmes 

Existence of purpose-driven structures: well functioning forum 

for proper assessment and channeling of LED-related issues 

Programmes aligned with the priorities of the NSDP / PGDP / 

IDP / ASGISA / Thina Sinako 

70



Provincial LED Strategy Guidelines 

finalized and distributed. 

These guidelines are developed to 

inform provincial LED Strategy and 

municipal LED strategies and plans 

Obtain policy direction on the 

implementation of the National 

LED Framework by participating in 

the National LED Forum 

DEDEA funded LED Projects 

evaluated to ascertain impact in 

the local economies. 

Develop TORs for project on 

Funding Criteria that will inform 

credible business plans, and 

possible continuous funding for 

projects, taking into consideration 

the MTEF 

The Draft document of the 

Provincial LED Strategy Guidelines 

has been done. 

The National LED Forum meeting 

not attended, but the report from 

the forum meeting will be tabled at 

the next PCG meeting 

ToR criteria developed and service 

provider identified 


PERFORMANCE 

Delayed submission of the final 

document by the Service Provider 

has affected the deadline 

Challenges with staff availability 

constraints. 

Resultantly, the outcomes of the 

Provincial LED Consultative and 

Planning workshops were not 

presented at the Forum. 

Identified service provider not 

yet registered in Departmental 

database 

- - - - 



PERFORMANCE 

The Convergence Team 

(DEDEA, DLGTA and Thina 

Sinako) to decide on a 

new deadline. 

Recruitment process 

to enhance the staff 

complement of the LED 

sub-programme will be 

initiated. 

Internal Project Steering 

Committee (PSC) 

established to review the 

inception report on 16 

April 2008. 

Service provider now 

registered. 

Undertake benchmarking study 

visits to other provinces 

Terms of Reference (ToR) for District 

and NMM Municipal Capacity 

Assessment developed 

National Business Initiative 

(NBI) Workshop for training and 

mentorship engagement to 

strengthen PPI and Leadership 

Benchmarking study visit to DED 

in KZN undertaken and report 

submitted and circulated 

ToRs developed and service provider 

appointed to pilot in CDM, NMBM 

and ADM 

NBI Workshop attended and 

mentor allocated 

None 

Delays due to Acquisition of the 

required quotations from service 

providers 

Only one (1) NBI mentor allocated 

- - - - 

None 

Invite service providers to 

provide quotations 

Follow-up with HRM 

Develop a Project Implementation 

Plans in collaboration with 

University of Fort Hare (UFH) on 

HIV & AIDS R&D 

Walter Sisulu University (WSU)on 

rural development 

CSIR on natural fibers and plant 

fibers 

Service Level Agreement (SLA) 

submitted by UFH 

MOU with WSU commented on 

MOU discussed 

Project Proposal by CSIR considered 

for funding 

None 

Delays in the finalization of MOU 

None 

Consistent 

communication with WSU 

None 

Partnerships developed 

Developed partnership with DBSA 

in collaboration with DLGTA and 

Thina Sinako 


experienced. 

N/A 

LED Projects finalized 

Input in the PGDP review process 

List of LED projects submitted for 

consideration and approval by the 

Executive Authority 

DEDEA inputs considered and 

accepted by the PGDP Review 

Committee or Reference Group 

Delayed submission of documents 

from some regions 

Objective 2 of the PGDP (Agrarian 

Transformation and Food Security 

now changed to Household 

Security) 

Programme meeting with 

LED units in all regions 

to discuss challenges in 

implementation to be 

arranged 

PGDP Review Committee 

or Reference Group 

has replaced Nutrition 

Security with Household 

Security 

71


Programme 2: 


Sub-Programme 2.3: Economic Empowerment 




The Programme for Integrated Economic Development Service does provide for its three sub-programmes although the sub-programme for 

Economic Empowerment is assigned to the ECDC and as such would be accounted for by the ECDC. 

2.6.3 PROGRAMME 3: TRADE & INDUSTRY DEVELOPMENT 


Programme 3: Trade & Industry Development 

Sub-Programme 3.1: Trade & Investment Promotion 




To Facilitate Trade, Export 

Promotion And Attract Investment 

To Strategically Position Industries 

In Support Of Economic Growth 

And Development 

To Facilitate Implementation Of 

Strategic Programmes That Will 

Stimulate The Competitiveness Of 

Priority Sectors 

Realize Benefit From Investment 

Opportunities 

Keep Track Of Investment 

Performance Trends 

Growth in Investments, Jobs Saved 

and Created [ECDC Assignment] 

Enhance Sector Performance 

Develop Sectors Competitiveness 

[ECDC Assignment] 

Inform industrial growth & 

development strategies 

Stimulate Growth and 

Development 

Trade and Investment Plan, Value of Investment Realized (Net 

investment, income, jobs, and equity) 

Record of periodic sector performance 

Number of jobs created 

Sector profiles, development plans and performance reports 

Sector support programmes developed 

Existence of and Alignment Provincial Strategies With RIDS 

alignment 

Facilitate industrial growth and development 

72




PERFORMANCE 



PERFORMANCE 




PERFORMANCE 



PERFORMANCE 

The Programme for Integrated Economic Development Service does provide for its three sub-programmes although the sub-programme for 

Trade & Investment Promotion is assigned to the ECDC and as such would be accounted for by the ECDC. 

73


Programme 3: Trade & Industry Development 

Sub-Programme 3.2: Sector Development 


• The development and marketing of tourism to aid sustainable 

development in the Eastern Cape Province. 


Inform policy and strategy. 

Eastern Cape Tourism Master Plan 

review for 2007-2011. 

A Tourism Master Plan completed. 

Tourism Sector Summit for 

stakeholder engagement and 

participation. 

A Tourism Sector Summit conducted 

Tourism Product Development and 

Investment. 

Tourism Skills Development. 

2010 Tourism Readiness Project 

Plan focusing on entrepreneurial 

opportunities associated with 

hosting the 2010 FIFA World Cup. 

Investments in the identified 

projects. 

A national tourism skills 

development strategy is being 

formulated. 

A study on the state of tourism in the three focal areas [KSDM, 

NMBM & BCM] has been presented. A report is produced. 

A Tourism Sector Skills Plan 

Black Economic Empowerment 

-Transformation of the tourism 

sector. 

Establish partnerships and assist 

emerging entrepreneurs. 

Number of partnerships developed 

Promotion of tourist safety and 

security. 

A safe and secure environment for 

local people and visitors. 

A Provincial Safety and Awareness Strategy is developed 

74



Tourism Master Plan completed 

Tourism Summit Agreement 

developed 

A report on the 2010 Tourism 

Readiness Study 

Situational Analysis Report of the 

Tourism Master Plan completed 

Tourism Sector Summit Agreement 

developed and signed by the 

Summit participants 

A report on the 2010Tourism 

Readiness Study completed 


PERFORMANCE 

Delay in the payment of the first 

milestone due to flaws in the 

tendering processes 

Inability to generate the Tourism 

Summit Report timeously resulted 

in the delay in the implementation 

of Tourism Summit Action Plans 


experienced. 



PERFORMANCE 

Milestones have been 

revised and addendum 

to the original Service 

Level Agreement has been 

drawn to reflect revised 

time frames 

Meeting for all 

signatories of the Tourism 

Summit Agreement is 

scheduled to discuss 

the implementation the 

Action Plans 

N/A 

Participation in the National Skills 

Development Forum 

Partnerships established 

A Provincial Safety and Awareness 

Strategy developed 

A National Sector Skills Plan is in 

place 

No partnership established in 

terms of BBBEE 

Strategy not in place 

The Province does not have a 

sector skills plan as the Provincial 

Skills Audit is being conducted 

and will only be done once this is 

completed. 

Initiatives towards addressing the 

advancement of Black Economic 

Empowerment were only started 

late in the year and no considerable 

progress has been made. 

The process was only started 

in January 2008 and has been 

planned for the 2008/09 Financial 

Year. 

The National Skills Sector 

Plan is being used a guide 

to the implementation of 

skills development 

A good working 

relationship has been 

established with the 

Tourism Empowerment 

Council of South Africa 

where the tourism 

program is participating 

in the Provincial BEE focal 

points – an information 

sharing platform on 

tourism BBBEE across the 

provinces. 

The development of this 

strategy is underway 

in consultation with 

Department of Safety and 

Liaison 

75

2.6.4 PROGRAMME 4: BUSINESS REGULATION & GOVERNANCE 


Programme 4: Business Regulation & Governance 


Corporate Governance & Consumer Protection 


• Accessible Advisory and Support Services To Promote 

Consumer And Business Interests 


To Lobby Against And Address 

Barriers In The Broader Business 

Environment Which Inhibit 

Business Development 

Influence Policy, Strategy and 

Legislation 

An Enabling Regulatory Framework and Operational 

Environment That Supports Business Development. - Record of 

sessions held & submission made on policy and legislation 

Record of inputs and submissions made 

Record of briefing sessions held on national legislation 

Operate An Efficient Consumer 

and Business Support Programme 

Record of training and status of services rendered by BRAG 

Integration in planning, harmonization of systems and coherent 

implementation of consumer support services 

Integrity of information, data quality and status 

Raise awareness & promote 

compliance 

Number of targeted awareness promotion conducted 

76



Proposed draft amendments ready 

for consideration by the Executing 

Authority 

5 workshops on the Consumer 

Protection Bill conducted 

1 briefing session on 

implementation of the National 

Credit Act held 

All officials responsible for 

consumer advice and business 

compliance trained so as to render 

accredited services by year end. 

Development of systems and 

training of consumer affairs 

personnel on application of 

developed system. 

Release official statistics by end 4th 

quarter 

Panel discussion & radio 

campaigns 

Proposed 10% increase to fees & 

taxes by amending the Eastern 

Cape Gambling and Betting Act 

The proposed amendments to 1st 

draft have not yet been integrated 

None 

A briefing session on the NCR was 

held as rearranged and Joint plan 

has been developed 

28 consumer affairs officials 

received training by an NCR 

accredited 

13 met 80% passing mark 

30 officials responsible for 

consumer advice and compliance 

were work shopped by the NCR on 

handling of complaints arising out 

of the credit agreements 

30 officials responsible for 

consumer advice & compliance 

were trained usage and application 

of the Integrated System (Resource 

File) 

Commissioned two research 

surveys on implications of apparent 

shortcomings in the processing 

and management of court 

orders on the credit market and 

consumers 

Awareness Raising Coverage: 

Day session with sector regulators 

and business delegates hosted - 85 

delegates 

Print/Radio - 980 000 

15 March Consumer Rights Day held 

- 600 delegates 


PERFORMANCE 

The original cabinet memo 

accompanying amendment 

proposals of 10% increase in fees 

and taxes was not fully compliant 

with specimen of the legislature 

Draft 1 Proposed Amendments not 

yet incorporated 

Public hearing on the Consumer 

Protection Bill never materialized 

during the year due to delays 

in the processing of the Bill by 

National Government - therefore 

no workshops were held 

Time delays in implementing 

plans that are contingent upon 

performance by sister departments 

such as the sister the dti and other 

partners the NCR 

Apart from the delays related to 

explanation given above, it later 

transpired that accreditation 

requirements are not limited to 

training. 

Limited resources in relation to 

number of personnel involved 

Limited resources in relation to 

project scope 

Exposure and coverage below 

expectation due to weather 

conditions and logistical problems 



PERFORMANCE 

Cabinet Memo was 

modified to fully 

comply with legislature 

requirements and resubmitted 

Actual drafting of all 

pieces of legislation needs 

is specialized service and 

has to be outsourced to a 

competent legal firm. 

Public awareness 

workshops on the 

Consumer Protection 

Bill (Act) have been 

rescheduled for 2008/9 

Financial Year. 

Joint plan of action have 

been agreed to with the 

NCR and the dti will be 

engage for the same 

purpose. 

The plan referred to above 

will be implemented 

during the next financial 

year and covers issues 

pertaining to supporting 

qualifying officials toward 

registering as accredited 

debt counsellors. 

Training was staggered so 

as to afford everyone at 

different stages. 

An in-depth research 

on the topic is critical 

in assessing whether 

the NCA of broadening 

participation in the credit 

market will be realised 

without addressing 

the related consumer 

problems. 

More budget needed to 

secure prime time slots 

for effectiveness 

77


Render general and problem 

specific advice to consumers 

Number of consumers advised and benefit 

Maintain acceptable levels of trade 

and business compliance 

Number of businesses inspected and compliance levels 

Complaints settled by negations section (11) & (12) 

Optimize perform 

Implement targeted partnership campaigns 

2.6.5 PROGRAMME 5: ECONOMIC PLANNING 


Programme 5: Economic Planning 

Sub-Programme 5.2: Research And Development 


• Develop and facilitate focused economic research, policy alignment and 

strategy development to ensure integration into national policy frameworks. 


Lead Research on economic growth 

and Development 

Monitoring and evaluation of led 

projects - 2003/04 to 2007/08 FYs 

To evaluate DEDEA funded LED projects and consolidate 

information on these projects with effect from 2003/04 to 

2007/08 financial years to serve as a basis for further analysis 

of their viability and impact 

Institutional capacity assessment 

of district municipalities and the 

metro 

To identify areas requiring technical assistance and/or capacity 

support 

List of led projects for the 2008/09 

FY 

To collate projects’ documents to ensure that grants to 

municipalities are disbursed at the beginning of the financial 

year 

78



Respond and render appropriate 

advice to all consumer enquires 

General advice calls 1 700 


PERFORMANCE 

Monitoring and recording of results 

remains a challenge 

21 businesses per month Inspections = 123 limited personnel and capacity of 

regulators 



PERFORMANCE 

Self recording systems 

such as call centers are a 

viable proposition 

Partnerships are for now 

viable options 

Policy awareness 

Develop integrated tools and 

systems 

Received = 177 

Settled = 93 

Referred = 21 

Pending = 63 

The one day session on court orders 

with a bearing on the credit life of 

ordinary people served this purpose 

The Resource Manual is a useful 

tool for quick referral and decision 

making. 

limited personnel and capacity of 

regulators 

Participation of business remains 

less that expectation albeit with 

slight improvement 

Data sourcing and information 

management remain one of the 

biggest challenges 

Alternative forms of 

publicity are explored 

Recommendations to 

the IT to automate and 

improve data processing 

and validation 



Report on completed study 

Report on completed study 

Piloting has begun in Amathole 

District Municipality (ADM) by ENB 

Trade Solutions 

Inception Report to be dealt with 

on Friday, 04 April 2008 

Payment of R64,000 effected 

NMMU contracted to undertake 

task in ADM, Cacadu District 

Municipality (CDM) and NMBM 

Inception Report to be dealt with 

on Friday, 04 April 2008 


PERFORMANCE 

Acquisition of the required 

quotations because the service 

providers do not respond in time 

The Inception Report has not been 

discussed 

Acquisition of the required 

quotations because the service 

providers do not respond on time 

The Inception Report has not been 

discussed 

Report on completed study Submissions made by four districts Project Matrices; SLAs; and Letter of 

Compliance 

NMBM has not submitted by some 

districts. 



PERFORMANCE 

Review existing Terms of 

Reference to incorporate 

the revised threshold of 

R500,000 

The Inception Report will 

be dealt with on 16 April 


Review existing Terms of 

Reference to incorporate 

the revised threshold of 

R500,000 

Direct transfer of 

project funds to local 

municipalities (LMs). 

The LED Consultative and 

Planning Workshop on 13- 

14 February 2008 at Barkly 

East clarified a number 

of issues. 

79

2.6.6 PROGRAMME 6: ENVIRONMENTAL AFFAIRS 

Purpose 

The mandate of the Chief Directorate: Environmental Affairs is to ensure – through 

legislation – equilibrium between the need for economic, social and spatial development 

on the one hand, and sustainable use of renewable natural resources on the other, as 

well as the mitigation of negative impacts of development activities on the environment. 

The main goal is to ensure the conservation of biodiversity and the protection of the 

environment for sustainable development in the Eastern Cape Province. 

The Chief Directorate consist of 4 directorates, which accurately reflect the programme 

of Environmental Affairs. The four directorates are: 

• Directorate of Environmental Impact Management, 

• Air Quality and Waste Management, 

• Biodiversity Conservation and Coastal Management and 

• Compliance and Enforcement. 

The General Manager is the strategic leader of the programme giving the overall 

executive direction to the four directorates and the monitoring role to the Eastern Cape 

Parks Board parastatal. 

The above structure is reflected in the five regions of the province, where each region is 

headed by the regional manager and the assistant managers. 

Strategic Objectives 

• To provide strategic leadership and coordination of the Chief Directorate and Eastern 

Cape Parks Board. 

• To conserve the diversity of landscapes, ecosystems, habitats, biological communities, 

populations, species and genes in the Eastern Cape. 

• To promote conservation and sustainable utilisation of natural resources for the benefit 

of all. 

• To protect and enhance the quality of the environment for the benefit of humanity. 

• To promote environmental awareness 

• To ensure compliance and enforcement of the environmental legislations. 


• Review and consolidate the Eastern Cape Environmental Management Legislation. 

• Eastern Cape Biodiversity Conservation Plan developed 

80

• Environmental Awareness activities celebrated include:: 

• Eastern Cape Cleanest Town Competition 

• National Clean-up Week 

• National Marine Day 

• Clean Industry Awards and 

• World Wetlands Day. 

• Launch of Compliance & Enforcement Directorate (Green Scorpions) 

• ECA EIA Backlog significantly reduced 

• Environmental IDP Toolkit developed 

• GEF funding for the Wild Coast Programme through ECPB as an implementing agent. 

• Maloti Drakensberg Transfrontier Project (SA -Lesotho Transfrontier) in progress 


Constraints 

• Insufficient budget allocation to the Programme 

• Delay in filling critical vacant funded posts 

• High staff turnover 

Measures to overcome constraints 

• Sufficient budget allocation in line with the mandate 

• Appointment of staff to improve operations 

• Dedicated legal support for the Programme 


• Strengthening partnerships with various stakeholders 

• Dedicated support for the Chief-Directorate 

• Appointment of qualified candidates within acceptable time-frames 

• Recruitment and Retention strategy to be implemented for critical scarce skills 


Measurable Objectives, Performance Measures, Target and Actual Performance for 

2007/08 are indicated below: 

81



Sub-Programme 6.1: Ecosystems, Biodiversity And 

Natural Heritage Resource Use, Scientific Investigation 

& Authorization 


• Biodiversity Conservation Management 


Efficient and effective Ecosystems, 

Biodiversity and Natural Heritage 

management through planning, 

monitoring and reporting 

Development of a Provincial 

Biodiversity Strategy and Action 

Plan 

Provincial Strategy and Action Plan 

Participation in the National Law 

Reform Process 

Provincial Comments 

Implementation of Bioregional 

Programmes (MDTP, STEP, 

CAPE, SKEP, National Grassland 

Biodiversity Programme) 

Participation and financial commitments 

Implementation of the Endangered 

Species Conservation Project 

Provincial Strategy on Latifrons conservation 

Protected Area establishment, 

regulation and monitoring 

Aquatic and freshwater Ecosystems 

Management 

Sustainable management of 

Provincial Protected Areas 

Development of Freshwater Fisheries project 

Implementation and compliance monitoring of the Service 

Level Agreement 

Ecosystem, Biodiversity and 

Natural Resource use, Scientific 

Investigation and Authorization 

Effective and uniform permit 

administration 

Installation of computerized permit system and use thereof by 

all staff 

82



Develop maps of Provincial 

Biodiversity Strategy and Action 

Plan 

Participation in MinTech Working 

Group 1 

Identification of key species 

and habitats for biodiversity 

conservation including 

rehabilitation 

Conduct awareness and revitalize 

stewardship programmes 

Engagement with stakeholders 

and finalization of the Provincial 

Strategy on Latifrons conservation 

Submission of monthly and 

quarterly reports and attendance of 

quarterly board meetings 

Effective administration, 

compliance , monitoring and 

enforcement 

Launch of the Eastern Cape 

Biodiversity Plan held 

Training of Amathole District 

Municipality Officials on using 

ECBCP 

PEPC Meeting attended 

International Professional Hunting 

shows attended in USA with 

meaningful participation and 

assistance to Eastern Cape Hunting 

Outfitters 

1 Eastern Cape Implementation 

Committee (ECIC) meeting 

conducted 

Proposal by NMMM to initiate the 

process of publishing Bioregion 

presented and welcome by ECIC 

Continuous involvement and 

financial commitment in the MDTP 

implementation 

1 meeting held to formalize the 

Cycad Forum 

World Wetlands Day Celebrations 

held in Matatiele-Khoapa Location 

Meeting with ECP to table 

progress on the development of 

Management Plans 

Dwesa/Cwebe Workshop held 

with all the stakeholders including 

Dwesa/Cwebe Land Trust to re-look 

at the Settlement agreement 

Meeting held with MCM, DWAF, 

ECP to finalise Dwesa/Cwebe 

Management Plan 

People and Parks Workshop 

attended 

Permits issued 

CITES: 310 

Non- CITES: 538 

Professional Hunting: 58 

TOPS:61 

Hunting Contractors: 16 

Professional Hunting Registers 

sold : 13 

CAE’s: 47 

Hunting: 125 

Others: 442 

TOTAL NUMBER OF PERMIT 

ISSSUED: 1610 


PERFORMANCE 

Capacity for implementation of the 

Provincial Strategy and Action Plan 


experienced. 


experienced. 


experienced. 


experienced. 


experienced. 

Purchase of compatible computers 

for HO permit administration office 

delayed 



PERFORMANCE 

Establishment of 

Planning Unit within the 

Chief Directorate 

N/A 

N/A 

N/A 

N/A 

N/A 

83


Development, review and 

implementation of effective 

Operational Guidelines 

Approved Operational Guidelines 



Sub-Programme 6.2: Coastal Management 


• Sustainable utilization of Coastal Resources 


Coastal Zone Management - to 

ensure that the coast is managed 

according to national sustainability 

principles 

Inclusive & transparent coastal 

management 

Level of stakeholder participation in CM 

Number of policy guidelines produced 

Number of programs and projects facilitated 

Regulate Coastal resource use in 

accordance with sustainability 

principles 

Extent to which coastal planning aligns with national policy 

provisions 

Efficiency & effectiveness of ORV regulatory system 

Extent to which Coastal Conservation Area has been 

demarcated 

Efficiency & effectiveness of regulatory system for structures 

below the HWM 

84



Active involvement with 

Biodiversity Management 

Committee and drawing up of 

guidelines and public participation 

Ongoing interaction with 

stakeholders on biodiversity 

resource use management. 

TOPS Road shows conducted in 

Cacadu, Chris Hani and Amathole 

Regions to receive permit 

applications. 

Biodiversity Technical Committee 

meetings held to develop 

TOPS Regulations Delegations. 

Delegations developed and 

approved 

Monthly TOPS Working sessions 

held to evaluate progress on TOPS 

Regulations implementation 

Fencing specifications operational 

guidelines approved 


PERFORMANCE 


experienced. 



PERFORMANCE 

N/A 



Maintain optimal functioning of 

PCC & RCWG’s 

Formulation of CM operational 

guideline & decision-making 

support systems 

Facilitate & coordinate programs 

Facilitate integration of pertinent 

coastal planning provisions into 

municipal planning frameworks 

Ongoing licensing & 

recommendations to DEAT on 

permitting; awareness raising, 

monitoring & compliance 

enforcement 

Surveying implementation & 

erection of beacons & signage 

Ongoing permitting, awareness 

raising, monitoring & compliance 

enforcement 

PCC did not meet 

RCWG’s generally 

None facilitated or coordinated 

Hamburg and Qolora Site visits for 

Aquaculture were conducted 

Ad hoc achievements & progress 

but no systematic approach 

1 Jetty in Cacadu Alan – Krom 

authorized by the General Manager 

Environmental Affairs 

1 CCA building permit issued 

for Mdumbi in line with EIA 

authorizations – Regional Manager 

O.R. Tambo 

1 Off Road Vehicle Permit issued 

to Round Table at Xora Mouth – 

Regional manager O.R. Tambo – for 

Recreational Venture 


PERFORMANCE 

Due to resignation of Manager 

Coastal Zone Management 

O.R. Tambo and Cacadu continue to 

meet but Cacadu has a challenge 

of shortage of personnel. 

O.R. Tambo with the support of 

Inter – Departmental support and 

working group they were able 

to carry out the monitoring and 

patrols over the Easter Week-end 

successfully 

This will only be effective after the 

Integrated Coastal Management 

Bill is Enacted 

On target 


experienced. 



PERFORMANCE 

Appoint a Manager and 

officers in CZM. Adverts 

are out for EO’s posts will 

be filled soon 

N/A 

85


Eliminate illegal coastal 

development activities 

Extent of proliferation of illegal coastal developments 

Capacity Building and Training Number of officers trained Interpretation and implementation of the applicable tools in 

the Coastal Zone Management 




Environmental Impact Management 


• Environmental quality management 


Administration of EIA Regulations 

Administer NEMA applications as 

per regulations 

Applications processed within guideline time-frames 

Finalize outstanding ECA 

applications 

Outstanding applications finalized 

86



Review of legal strategy. Surveying 

and demarcation of Coastal 

Conservation Area in line with 

legislation 

Skill transfer 

1 X Cacadu illegal Jetty Construction 

handed to Compliance and 

Enforcement 

1 X at Ndlambe construction in 

the dune and a warning letter 

was issued by Regional Manager 

in consultation to C& E. Meeting 

held under cooperative governance 

spirit and awaiting response in 

committing to ROD conditions. 

Illegal Construction of a house at 

Ndlambe was stopped and the case 

has been handed over to C&E. 

O.R Tambo they have put a notice 

to demolish by end April a hut at 

Mpande Forest within the Dune. 

Case opened for illegal 

establishment of a Campsite 

within CCA against Owen Themba 

Ngudle. 

Demolition of illegal cottages by 

cottage owner as per High Court 

Order is being implemented 

and monitored closely by O.R. 

Tambo (Dakane, Black Sands and 

at Manteke only one owner has 

adhered to orders) 

Sand mining at Cwebeni and 

Mngazi within the CCA has 

been stopped and a meeting is 

scheduled for April 08. 

3 Interns were exposed to Coastal 

Awareness exposure at Cacadu at 

the Kouga Region. 

4 O.R. Tambo Interns and 1 officer 

were exposed in CZM through 

Easter Weekend Activities and 

patrols. 


PERFORMANCE 


experienced. 


experienced. 



PERFORMANCE 

N/A 

N/A 



Site visits, review of reports and 

issuing of authorizations 

A serious backlog threatened in 

Cacadu Region 


PERFORMANCE 

The organizational structure of 

that region is not adequate to deal 

with its workload 



PERFORMANCE 

An intervention to assist 

the region was designed 

and is being implemented 

Monitor service provider on the 

processing of ECA EIA application 

backlog within stipulated 

timeframe 

The number of ECA applications 

with Ninham Shand has been 

reduced to 93. Ninham Shand’s 

current contract ended in February 


Remaining applications are 

difficult to finalize due to gaps in 

key information and often poor 

processes. 

Motivation was made 

to DEAT to extend the 

Ninham Shand contract. 

DEAT has agreed and new 

contract will be concluded 

in April 2008. 

87


Co-ordination of appeals from 

regions 

Drafting responses to appeals for the MEC’s approval and 

liaising with the Regional offices 

Input in guideline development 

Guidelines developed 

Installation of electronic EIA system 

with all regional offices 

Web-generated electronic reports and Statistics 

Management of potentially 

negative impacts of developments 

not listed under EIA Regulations. 

Development of self-regulation 

mechanisms 

Environmental Management Frameworks developed 

Strengthen Environmental 

Management through co-operative 

Governance 

Establish, maintain and participate 

in key structures and forums 

IGR, Environmental Management Forum, REMDEC 



Sub-Programme 6.3: Air Quality & Waste Management 


• Environmental quality management 


Administration and 

implementation of Waste 

Management legislative framework 

Status quo report regarding waste 

site compliance 

Preliminary inspection report on waste sites in region 

Development of Provincial 

Integrated Waste Management 

Plans 

Roll-out of Waste Information 

System 

Provincial support to local Waste Management Planning 

Regional participation 

88



Handling of appeals 

Participation and input on internal 

working group meetings 

Establishment of EIA database/ 

register 

Identification of sensitive 

environments for limited 

developments 

Consultation with external and 

internal stakeholders 

Comment to planning processes 

and linkage with planning 

departments 

Five appeal reviews have been 

done , with 2 submitted to MEC. 

A submission was submitted 

regarding an appeal system for 

DEDEA 

5 draft guidelines were developed 

which needs to go through 

consultation processes in the 1st 

quarter of 2008/2009 

During the quarter NEAS was 

implemented on a trial basis. It 

became clear that the Department 

generally lacks the capacity to 

implement effectively. 

The Great Kei to Boknes EMF is 

on track. There is good public 

participation, except for key 

economic development drivers. 

Although some forums were 

attended, this objective was not 

achieved, compared to previous 

high standards 


PERFORMANCE 

Some appeals are legally very 

complex and time-consuming to 

review properly. 

IEM Working Group had to be 

postponed due to procurement 

obstacles. 

Power outages, insufficient 

network access, lack of 

administrative staff. 

Economic development drivers not 

adequately involved 

Procurement difficulties. Large 

number of forums that we are 

expected to attend. 



PERFORMANCE 

Complex appeals with 

legal implications will be 

discussed by an internal 

task team in April 2008. 

A submission has been 

made to HOD for a 

3-day working group 

session in the 1st quarter 

2008/2009 

It is clear that a revised 

implementation strategy 

will need to be devised 

in the 1st quarter of 

2008/2009. This will need 

to include assistance from 

SITA. 

A submission has been 

made to the HOD 

regarding a DEDEA driven 

workshop to address this 

issue. 

An analysis was done 

of current forums 

and submitted to 


Management Meeting. 

Decisions will be taken at 

the April 2008 meeting 



Site visits and monitoring 

Facilitate the development and 

review of Integrated Waste 

Management Plans (IWMP) 

Roll-out of Waste Information 

System 

Follow-up on waste management 

complaints in Maletswai 

Municipality (Dukathole), Elundini 

Landfill site (Maclear) and 

Amahlathi Landfill site vs Amatola 

Abattoir (Stutterheim). 

Process to restart in the new 

financial year due to the revised 

delegations. 

Regular reporting of participating 

industries and municipalities done 

and waste statistics submitted to 

DEAT 


PERFORMANCE 


experienced. 


experienced. 


experienced. 



PERFORMANCE 

N/A 

N/A 

N/A 

89


Strengthening environmental 

support to Local Authorities, 

industry and environmental 

organizations regarding waste 

management 

Participation in Cleanest 

Town Competition and waste 

management conferences 

Inter-sectoral information sessions & meetings 

Waste Management intervention 

in Mnquma & KSD Municipalities 

Significant initial clean-up of Butterworth and launch of CTC in 

OR Tambo 

Co-operative governance 

Input to planning processes and establish links with national 

development initiatives at local authority level 

Administration and 

implementation of Air Quality Act 

to facilitate improved air quality 

management 

Promote Clean Production 

Technology 

Low levels of pollution 

Strengthening environmental 

support to Local Authorities & 

industry re AQM 

Identify and implement effective interventions where 

municipalities require support 

Integrate Climate Change Response 

Strategies 

Provincial Climate Change Strategy 

90



Prepare presentations and papers 

for information sessions with 

stakeholders 

Complete and submit SLA and 

Business Plan and establish PSC 

Participate in reviewing Air Quality 

and Waste related EIA applications 

and provincial appeal process. 

Facilitate development of pollution 

prevention plans(PPP) by targeted 

industries 

Participation in national air quality 

planning framework intervention. 

Announcement of the Provincial 

CTC winner done during a 

Gala Dinner event held at the 

Queenstown Indoor Sports 

Centre. The winners are Inkwanca 

LM, Mhlontlo and Amahlathi 

Municipalities 

Clean-up operations conducted 

in Mnquma (Butterworth). 

Significant progress is observed on 

the cleanliness of the target areas 

and the project has submitted a 

proposal to extend the duration of 

the clean-up and move to second 

phase to rehabilitate the illegal 

waste disposal site. 

Participation on the review of the 

provincial appeal process of EIA 

applications and submission of 

input relating to Health Care Risk 

Waste (HCRW) and undertakers in 

rural areas. Participation in DEAT 

WGII on Waste and Air Quality 

discussions. 

Pollution and Waste Action 

Plans drawn in partnership 

with EC Branch of IWM-SA to 

conduct Industry Environmental 

Interventions in relation to the 

Clean Industry Awards conducted 

in the last quarter. 

Regular meetings with the 

established Provincial / Municipal 

Air Quality Forum and National 

/ Provincial Air Quality Officers 

Forum were held 


PERFORMANCE 


experienced. 


experienced. 


experienced. 


experienced. 


experienced. 



PERFORMANCE 

N/A 

N/A 

N/A 

N/A 

N/A 

Communication with various 

stakeholders and public interest 

groups 

Bilateral and site visit to Western 

Cape Department planned for May 



experienced. 

N/A 

91

2.6.8 PROGRAMME 8: PLANNING, IMPACT, 

POLLUTION AND WASTE MANAGEMENT, 



Sub-Programme 8.1 Compliance & Enforcement 


• Compliance, Enforcement and Rehabilitation 


Ensure effective compliance and 

enforcement for environmental 

quality management (EIA, waste 

and air quality) 

Reduction in incidents of 

environmental crime 

Number of cases in crime register and actions taken 

92



Information gathering 

Compiling Information gathering 

Reports 

Evaluate Information reports 

Compile and Execute Reaction Plan 

for poaching of Elephant and Rhino 

Rhino horn theft at Amathole 

Museum, 

Albany Museum, 

Ezulu Private Game Reserve 

Bedford, threat of rhino poaching 

on reserves, Cape parrot poaching 

Stutterheim, Cape Parrot illegal 

trade Port St Johns investigated in 

partnership with SAPS 

Outstanding complaints 

a)- Compliant from US Client of 

bad treatment during hunt in the 

Bedford district. 

b)-Illegal acting as Hunting 

Outfitter- several complaints Glen 

Connor/Kirkwood from United 

Kingdom 

c)-Poaching and Game theft 

Mathola Private Game Reserve 

Komghad)- 

The dockets for illegal trade in 

cycads in Berlin and Pelargonium is 

with the discussed and the Senior 

Advocate 

Illegal hunting of rhino or elephant 

plan compiled. 


PERFORMANCE 

Posts not funded 

Regional Offices have no dedicated 

enforcement officials 



PERFORMANCE 

National Job Evaluation 

process for Environmental 

cadreship completed 

Staff appointment in 

2008/09 FY 

Civil or criminal action 

Kenton on Sea Eco Estate –pre 

compliance notice issued 


experienced. 

N/A 

Aliwal North sewage spillage and 

pollution –warning issued 

Rainbow Valley – register criminal 

case 

Wild Coast Sewage spillages – issue 

warning letters to WCCOA and 

WCHA 

Kudus Kop – investigate reported 

contraventions 

93


Capacity building and training of 

staff 

Cooperative governance and 

stakeholder consultation (DEAT, 

SAPS, DPP, NPA, ECT, RESG, etc.) 

Minutes of meetings 

Accredited training 

Trained officials 

Internal training workshops 

Trained officials 

94



Consolidation of monthly crime 

statistics 

Submission to national 

Compiled Environmental Crime 

Statistics for the province for the 

past year and submitted to DEAT. 


PERFORMANCE 


experienced. 



PERFORMANCE 

N/A 

Consultation with SAPS, State 

Prosecutors, Director Of Public 

Prosecutions Offices and 

Municipality 

The Rhino horn trade Moratorium 

submitted by the Eastern Cape 

Department 

Professional Hunting 

Several meetings were held with 

the Provincial Head of Organized 

Crime in Zwelitsha. 

A consultation session was held 

with the Buffalo city Municipality 

on pollution management. 

Moratorium approved by MINTEC 

for submission to MINMEC 

Presented lectures on Professional 

Hunting Legislation at PH schools 

in Tarkastad Supervised the 

compulsory exams. 

Attended SCI Hunting Conventions 

in USA to ensure compliance 

EMI Training 

Assistant manager completed the 

six months EMI course Assistant 

Manager completed firearm 

competency testing successfully. 

Awaiting the formal 

Competency certificates from 

the national Fire arm Register in 

Pretoria. 

Coordinate and monitor regional 

compliance 

A session held with Cacadu 

Regional Office 


experienced. 

N/A 

95

Part 3 

Annual Financial Statements 

96

3.1 Report by the Accounting Officer 

To the Executive Authority and Parliament/Provincial Legislature of the Republic of 

South Africa. (Where the information required hereunder is included in another part of 

the financial statements, reference should be made between this report and that section 

of the financial statements.) 

1 GENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS 

Important policy decisions and strategic issues facing the department 

Programme structure changes to align the departmental programmes with the National 

gazetted structures significantly changed the allocations to various programmes. 13 

Programmes replaced the previous 5 programmes during the accounting year under 

review of which four (4) programmes were not budgeted for in the year under review as 

they relate to national competencies. Starting in 2007/08, the name of the department 

changed from the Department of Economic Affairs, Environment and Tourism to the 

Department of Economic Development and Environmental Affairs. This however did not 

mean that tourism was no longer a priority, but that it had been incorporated under 

Sector Development of the Economic Development Programme. 

During the year 2007/08, like the previous year, the department participated actively in 

consolidating its work in line with National, Provincial and Local Government priorities. 

To this end, the department embraced the resolutions from National Cabinet in June 

2007 which were relevant to this Department. The priorities were listed as 24 APEX 

Programmes of Government. The Department also undertook to implement priority 

projects emanating from the Provincial Legkotla of August 2007. During the greater part 

of 2007, this Department was actively searching for information and data to enhance 

its performance. This culminated in a strategic planning session in early January 2008, 

which took a deeper view of the mandate of the department in line with constant 

changes in the environment. Some of these changes have been in response to the review 

of the Provincial Growth and Development Plan (PGDP), the key outcomes of the Growth 

and Development Summits (GDs), emerging trends and programmes at DEAT and the 

Department of Trade and Industry (DTI) and key decisions of our Provincial Cabinet and 

Cluster priorities. It is within this context that we see the work of 2007/08 as value 

accruing to our customers and stakeholders. 

97

Comment on significant events that have taken place during the year 

The department has been active in the development of a Provincial Industrial Development 

Strategy, which will be launched during the first half of 2008. The accompanying sector 

action plans will be developed thereafter. Ongoing collaboration with ASGISA Pty Ltd 

during 2007/08 set the stage for intensifying departmental efforts to share resources 

with the rest of the Province after successfully implementing two huge industrial 

platforms in the form of Coega and the East London Industrial Development Zone. The 

two zones have notched significant investments in the year under review. High-level 

commitment to inter-sectoral participation at District, Provincial and National levels was 

evident during 2007/08 which contributed to the sharing, planning, implementation 

and monitoring of our stakeholders’ priorities. The progress which the department made 

during 2007/08 has been persistent despite obstacles and challenges. 

The year under review witnessed many changes and achievements in the Department 

including the following: 

• The execution of a comprehensive outreach programme in June 2007 covering all corners 

of the Eastern Cape; 

• The signing of shareholder compacts and reporting protocols between the Department 

and its Public Entities; 

• The co-hosting of the automotive week in Port Elizabeth in September 2007; 

• The successful hosting of the Tourism Summit in September 2007; 

• The investments in the industrial development zones; 

• The expansion of Provincial nature reserves; and 

• The issuing of gambling and betting licences in Queenstown and Mthatha. 

• The offices in Bhisho - Head Office were burgled in February 2008 and among the items 

stolen were computers and documents. 

• The department initiated the appointment of a firm of forensic auditors to investigate 

alleged violation of internal controls. 

Comment on major projects undertaken or completed during the year 

The strategic objectives of 2007/08 made an attempt to embrace the priorities of the 

Provincial Cabinet, Economic Growth and Infrastructure Cluster, 24 APEX programmes 

of National Cabinet, ASGISA, and the revised PGDP and importantly the Provincial 

Industrial Development Strategy. These performance areas were planned through the 13 

programmes of the Department which were headed by Programme Managers and their 

respective Senior Managers. The Department was active in fostering development in all 

the Districts of the Province. This is evident through the Economic Development Forum 

which is chaired quarterly by the MEC. Early in 2007/08 financial year, R30 million was 

released to District Municipalities for LED projects in all the Districts of the Eastern Cape. 

98

In delivering services in the Province, the department worked closely with all seven Public 

Entities which it supports financially. The bulk of the departmental budget was transferred 

to these Public Entities. Consequently it was important that the department provided an 

appropriate monitoring and evaluation support mechanism. During 2007/08, the need 

was recognized that partnerships with other institutions must be created in order to 

improve departmental operations. 

The call for reassessing legislation governing the operations of Public Entities was 

furthermore identified as a mechanism to enhance the work of the department. This will 

be done in phases over the coming financial years. The past twelve months is proof that 

the work of the Public Entities is strengthened by the shareholder compacts which were 

put in place during the previous financial year. 

Some programmes were initiated in the 2007/08 financial year, such as: 

• Funding and reporting protocols (standard reporting structures and schedules developed) 

were introduced and implemented and were integrated into the shareholder compacts 

in 2007/08; 

• Provincial Economic Development Forum-meetings took place according to schedule 

• Public entities have been stabilized at both management and board levels. 

• Functional Internal control unit. 

• Infrastructure development at both IDZs (Coega and ELIDZ) reached their schedule 

resulting in investments in excess of R40 billion at Coega and R1.7 billion at ELIDZ. 

• The year saw the introduction of the rationalization plan for the Eastern Cape Parks and 

Tourism Boards which will usher a merged institution by 2008/09. 

• National Treasury budget programme structure was introduced and the Department’s 

programmes aligned to that structure. 

• The PGDP is under review with DEDEA playing a key role in its key performance areas. 

• Legislation of the liquor board is under review. 

• A concerted recruitment process was initiated in July 2007 to fill outstanding critical posts. 

• Key systems have been implemented such as Proqure & Proquote System, iBudget and 

eMapp to improve the operational efficiency of the Department Financial Management. 

Spending trends 

The total adjusted budget for the Department is R757, 973 million in 2007/08 financial 

year. The total spending is R 736, 3 million which represents 97.14% of the total budget. 

There is an improvement in comparison to the 96.3% and 95.7% spent in the 2006/07 

and 2005/06 financial years respectively. 

99

The table below shows the budget, expenditure, variance and percentage over or underspending 

for the year. 

Per Programme 

Final 

Appropriation 

Actual 

Expenditure 

Variance 

Variance as 

% of final 

Appropriation 

R’000 R’000 R’000 % 

1. Administration 85,624 78,814 6,810 7.9 


3. Trade and Industry Development 343,999 343,670 329 0.1 

4. Business Regulation and Governance 46,477 46,154 323 0.7 

5. Economic Planning 1,000 373 627 62.7 

6. Environmental Management 42,729 33,646 9,083 21.3 

7. Planning Impact, Pollution and Waste Magt 4,522 3,425 1,097 24.3 

8. Ecosystems, Bio-diversity and Natural Herit Mngt 102,748 102,372 376 0.4 

9. Marine and Coastal Management 1,187 726 461 38.8 

Totals 757,973 736,317 21,656 

Per Economic Classification 

Final 

Appropriation 

Actual 

Expenditure 

Variance 

Variance as 

% of final 

Appropriation 

R’000 R’000 R’000 % 

Current payment: 154,724 128,555 26,169 12.7 

Compensation of employees 95,344 79,459 15,885 16.7 

Goods and services 59,380 49,096 10,284 17.3 

Transfers and subsidies: 594,386 600,855 (6,469) -1.1 

Departmental agencies and accounts 560,386 561,855 (1,469) -0.9 

Public corporations and private enterprises 4,000 (4,000) -1.0 

Universities - 1,000 (1,000) 0.0 

Non-profit institutions 34,000 34,000 - 0.0 

Payments for capital assets: 8,863 6,907 1,956 22.1 

Machinery and equipment 8,863 6,907 1,956 22.1 

Totals 757,973 736,317 21, 656 

Reasons for under/over spending. 

The Department experienced problems in recruiting staff during the year. While we did 

not experience significant losses at management level, the brain drain was more apparent 

at operational level posts. Since we were still implementing the organogram that was 

approved in May 2006, we continued to face challenges with respect to job evaluations. 

Impact on programmes and service delivery 

The non-filling of the approved vacant funded post had a negative impact on the expenditure 

under economic classification Goods and Services and Capital. The problem was noticeable 

in the Environmental Affairs Programme where environmental impact assessments had to 

100

e conducted. Lack of capacity also meant that we were not able to provide the necessary 

monitoring and oversight role over our agencies and all our operations. 

Actions taken or planned to avoid recurrence. 

A new electronic Environmental Impact Assessment (EIA) register has been developed 

to provide monthly statistics that are reported to the National DEAT on a quarterly basis. 

The Environmental Conservation Act (ECA) EIA backlogs have been reduced from 633 (Q1 

2007/08) to approximately 91 cases by the end of the financial year using an appointed 

service provider, Ninham Shand. 

Development & Implementation of Integrated Waste Management Plans in most Districts 

was facilitated and finalized while the Air Quality management plans process started 

in the second half of 2006/07 Financial Year. Provincial Hazardous Waste Management 

Plans bidding process was initiated. 

Virement: 

There were no virements made between main divisions or between economic 

classification items in main divisions by the department during the year under review. 

Any other material matter 

(including description of the reasons for unauthorised, fruitless and wasteful expenditure 

and the amounts involved as well as steps taken to address and prevent a recurrence.) 

There has been a reprinting of Annual Reports for 2006/07 financial year which resulted 

to fruitless and wasteful expenditure amounting to R 149,499.60. The incident has been 

reported to the Head of Department. 

2 SERVICE RENDERED BY THE DEPARTMENT 

The Department provides the following services: 

• Economic development: 

• Enterprise Development, 

• Local Economic Development, 

• Economic Empowerment, 

• Trade and Investment Promotion, 

• Industry Development, 

• Tourism Development, 

• Corporate Governance, 

101

• Consumer Protection, 

• Liquor Regulation, 

• Gambling and Betting, 

• Monitoring & Evaluation, 

• Environmental Management and Sustainable Development Policy, 

• Legislation, Coordination, Planning, Impact, 

• Pollution and Waste Management, 

• Ecosystems, Biodiversity and National Heritage Planning; 

• Marine and Coastal Management; 

• Environmental Management and Sustainable Development Empowerment and Capacity 

Building Services; 

• Environmental Management and Sustainable Enterprise and Infrastructure 

Development. 

• Conservation of bio-diversity and the protection of the environment. 

• Strategic planning and management and Information management services. 

In addition the department was responsible for oversight responsibilities for goods and 

services offered by our Public Entities (five public entities and 2 subsidiary public entities) 

in the Province. 

Tariff policy 

The tariff structure of the Department is determined through submissions made and 

approved by the MEC. 

Current 2007/08 approved tariff structure of the Department is listed as follows: 

DESCRIPTION 

FEE 

ENVIRONMENTAL AFFAIRS 

Hunting License (RSA) 

Hunting License (Ciskei) 

R 20.00 per year* 

R 10.00 per year* 

Permit to act as a Professional Hunter R 50.00 per year * 

License to sell protected flora R 20.00 per year * 

Professional Hunting register 

R 90.00 per register 

Fresh water angling licences R 2.00 per year * 

Off Road Vehicle permit 

Boat launching site 

As per Marine and Coastal Management Task 

Team recommendation 

R5,000 for a three year period from date of issue 

EASTERN CAPE LIQUOR ACT, 10/2003 

LODGEMENT FEES 

102

DESCRIPTION 

FEE 

Lodgement fees: Temporary registration R 100.00 

Lodgement fees: Registration R 300.00 

Lodgement fees: To procure a controlling interest in the business to which the 

registration relates 

R 150.00 

Lodgement fees: Transfer of a certificate of registration R 200.00 

Lodgement fees: Removal certificate R 200.00 

Lodgement fees: For a copy of a registration certificate and 

conditions thereto or of any application 

R 100.00 

Lodgement of an Appeal R 200.00 

Registration fees payable in respect of a new registration 

Section 20(a) – Retail sale of liquor for consumption off the premises R2,000 

Section 20(b) – Retail sale of liquor for consumption on the premises R1 000.00 

Section 20(c) – Retail sale and consumption of liquor on and off the premises 

(shebeen/tavern) 

R 300.00 

Section 20 (d) – Retail sale and consumption of liquor at special events R1,000 

FEES PAYABLE IN RESPECT OF THE TRANSFER OR REMOVAL OF A REGISTRATION 

Section 20(a) – Retail sale of liquor for consumption off the premises R 750.00 

Section 20(b) – Retail sale of liquor for consumption on the premises R 500.00 



R 100.00 

ANNUAL LICENCE FEES 

Section 20(a) – Retail sale of liquor for consumption off the premises R1,000 

Section 20(b) – Retail sale of liquor for consumption on the premises R 500.00 



R 200.00 

GENERAL: 

Private photostat copies 

Private telephone calls 

Private faxes send 

Official Housing 

Domestic services 

Contract tariffs 

Post Office tariffs 

Post Office tariffs 

As per tariffs as determined by Department 

of Public Works 

Actual costs 

Note: * These tariffs are linked to the Provincial Legislation and can therefore not be 

altered until such time as new Legislation is gazetted. 

Liquor Licences 

The Eastern Cape Liquor Act no 10 of 2003 regulates the tariffs charged. 

103

Gambling Fees and Licences 

Free Services 

The Department renders statutory free services. These are related to the functions of the 

Department in respect of Consumer Affairs. No significant income would be generated 

from these services as most of the people served are in the low-income bracket. 

Inventories 

Inventories are recorded on BIN cards at cost, on receipt of the item. Cost of the inventory 

is defined as the total cost of acquisition. 

Inventory on hand at year end is valued at R715, 088.60 made up as follows: 

DESCRIPTION 

AMOUNT 

Stationery and printing (including computer consumables) 480,801.93 

Domestic consumables 184,499.98 

Fuel, oil and gas – 

Food supplies 12,989.17 

Crockery 7,016.19 

Others 29,781.33 

Total 715,088.60 

3 CAPACITY CONSTRAINTS 

The Department reviewed the organizational structure, which was approved in May 

2006. Immediately thereafter, a process of job evaluation was implemented. This process 

is still continuing for all posts above level 8 and the recruitment process is ongoing. 

Furthermore challenge was experienced with regard to the retention of staff due to the 

competitiveness in employee benefits between Municipalities and the Public Sector, 

specifically with regard to scarce skills within key programmes of the Department. 

However we also noted that the current organogram was limited in scope. In 2008/09 

financial year, we will be undertaking a programme of realigning our organogram with 

operations and ensuring that we improve operational efficiency through systems, 

processes, partnerships, priority projects, job profiles, and teams among other measures. 

In particular, we would like to build strong capability 

104

4 UTILISATION OF DONOR FUNDS 

No donor funding was received. 

5 TRADING ENTITIES AND PUBLIC ENTITIES 

The following is a brief summary of functions of Public Entities under our control: 

NAME OF PUBLIC ENTITY 

Eastern Cape Development 

Corporation (ECDC) 

Eastern Cape Tourism Board (ECTB) 

The Eastern Cape Gambling and 

Betting Board (ECGBB) 

LEGISLATION UNDER WHICH 

ESTABLISHED 

National Small Business Act of 1995. 

Businesses Act 71 of 1991. 

Eastern Cape Development Corporation 

Act 2 of 1997 (EC). 

Policy documents from the DTI. 

Eastern Cape Tourism Board Act No 8 of 

2003 (EC). 

Gambling and Betting Act 5 of 1997 (EC). 

MAIN PURPOSE OF THE PUBLIC ENTITY/REASONS 

FOR TRANSFERS 

To facilitate economic development in the 

Province by promoting investment, small 

business development and innovative 

development financing. 

To promote and facilitate tourism and tourism 

development in the Province, including 

sustainable investment and job creation. 

To regulate and manage the gambling and 

betting industry in the Province. 

The Eastern Cape Liquor Board The Liquor Act No 10 of 2003. To regulate and manage the retail sale of liquor in 

the Province. 

The Coega Development 

Corporation 

(ECDC subsidiary) 

The East London Development 

Zone Corporation 

(ECDC subsidiary) 

The Industrial Development Zone 

Programme of the DTI. 

The Industrial Development Zone 

Programme of the DTI. 

To promote and facilitate the establishment of 

the Coega IDZ and the new deepwater Coega Port 

as a focus for private sector investment. 

To promote and facilitate the establishment of 

the East London IDZ and the further development 

of the Port of East London as a focus for private 

sector investment. 

Eastern Cape Consumer Tribunal Consumer Affairs Act No 5 of 1998. To adjudicate disputes arising from unfair 

business practices in the Province. 

6 ORGANISATIONS TO WHOM TRANSFER PAYMENTS WERE MADE 

The Department supports 5 public entities and 2 subsidiaries. In 2007/08 financial year, 

the following was allocated to our public entities: 

AGENCY/ACCOUNT 

TRANSFER ALLOCATION (R’000) 

Eastern Cape Tourism Board 22,500 

Eastern Cape Gambling and Betting Board 20,233 

Coega Development Co-operation 25,200 

East London Industrial Development Zone 192,000 

Eastern Cape Parks Board 99,407 

105

AGENCY/ACCOUNT 

TRANSFER ALLOCATION (R’000) 

Eastern Cape Development Corporation 180,210 

Eastern Cape Liquor Board 22,305 

Universities 1,000 

Private Enterprises 4,000 

Local Economic Development 30,000 

Non Profit Institution 4,000 

TOTAL 600,855 

With regard to reasons for transfers, see 4.1.5 above. 

7 CORPORATE GOVERNANCE ARRANGEMENTS 

Internal Audit 

The Department made use of shared internal audit services which was located in 

Provincial Treasury, in terms of section 38 (1) (a) (ii) of the PFMA, under the direction of 

the Audit Committee. This assisted the Department in accomplishing its objectives by 

bringing a systematic disciplined approached to the evaluation and improvement of the 

effectiveness of risk management, internal control and governance processes. 

Audit Committee 

The department has a functioning Audit Committee which has been established in terms 

of Section 77 of the PFMA. The Committee meets to evaluate the effectiveness of the 

corporate governing structures and offer guidance for compliance purposes. 

The committee has held its four (4) statutory meetings during the 2207/2008 financial year. It has 

reviewed and agreed the SIAS operational plan for the department and compliance issues. 

Internal Control 

The Department established an internal control unit within the Department through 

financial management information system interface. The turnaround time for payment of 

creditors was within the prescribed time frames in terms of the applicable legislation. 


The Department implemented an electronic procurement system ensuring compliance 

with the PFMA and Supply Chain Management Framework to: 

• Establish an electronic supplier data base 

• Ensure rotation of suppliers 

• Establish an electronic audit trail 

106

• To ensure effective and efficient record management of SCM documentation 

• Ensure reduction in turnaround time 

• Produce an electronic asset management system 

Risk Management 

The Department, through the engagement of the service provider developed a risk 

strategy framework and departmental risk register. Subsequent to which a departmental 

risk committee was established. 

Fraud Management 

A Fraud Prevention Plan was developed and approved. 

Committees 

The Department established various committees; these include the various Bidding 

Committees and the Monitoring & Evaluation Committee. Furthermore monthly top 

management forum meetings were held to discuss strategic issues. 


The department drew up an intervention plan to address all the weaknesses that were 

raised by the Auditor-General in the previous year. Provincial Treasury seconded a CFO 

Support to the department to assist it in the implementation of the plans. 

Policies 

The following under listed Departmental policies are in place: 

• Resettlement Policy 

• Special Leave Policy 

• Induction Policy 

• Supply Chain Management Framework 

• Revenue Strategy 

• Political Office Bearers Vehicle Policy 

• Asset Management Policy 

• Financial Rules 

• Debts Write-off Policy 

8 DISCONTINUED ACTIVITIES/ACTIVITIES TO BE DISCONTINUED 

No activities were discontinued or will be discontinued. 

107

9 NEW/PROPOSED ACTIVITIES 

The Department aims to develop strong monitoring and evaluation capacity, and 

strengthening of regional offices as well as planning economic development and 

environmental management for the whole Province. We also propose to implement the 

industrial development action plans by employing sector specialists and other focal skills 

to implement our mandate. 

Communities and citizens of the Province are an important player in our operations. 

The Department, working together with other government departments, will prepare 

and mobilize these groups in order for them to benefit from public entity programmes. 

Additionally a more focused approach towards provision of local government support 

will be pursued. The departmental outreach programme, which was initiated in 2007/08, 

will be deepened in 2008/09. Priority focal projects through the HIPPs and 24 priority 

projects will be implemented in 2008/09. These include: 

• Business process outsourcing (BPO) projects 

• Supplier development support measures 

• Skills development and market access 

• Incubator projects for priority sectors (9 sectors selected for the Province) 

• Investment promotion and facilitation strategy 

• Payment call centre and integrated call centre for the province 

• Creation of register of investors for the province 

• Conduct trade analysis for the province 

• BEE entry into the manufacturing sector 

• Local procurement strategy 

• Completion of tourism development strategy and plan 

• Mentorship of tourism operators 

• Fast tracking of EIA processes 

• Integration and support of regional tourism authorities 

• Craft development programme 

• Training of tourism ambassadors 

The Department continues to play a critical role in developing the eastern part of the 

Province. The Provincial ASGISA Programme for Umzimvubu will be implemented. 

The Department is participating in the preparation of the 2010 soccer showpiece. Our 

efforts are related to economic and tourism opportunities. Our priority is to develop 

projects linked to community participation and involvement through the Provincial 

2010 tourism readiness plan. Already the department has engaged the services of a 2010 

108

tourism manager to focus on departmental 2010 projects with a total value of R100 

million in 2008/09 financial year 

10 ASSET MANAGEMENT 

The Department engaged the services of a service provider to ensure the roll out of 

an electronic procurement system to comply with the PFMA and the Supply Chain 

Management Framework to produce an electronic asset management system. The Asset 

Management Policy of the Department has been approved. The Department is in the 

process of identifying items to be disposed off. 

11 EVENTS AFTER THE REPORTING DATE 

There was a provincial dispute with the Department of Roads and Transport with regards 

to services rendered by Fleet Africa which resulted to a legal decision whereby the 

department was ordered to pay an amount of R 1 023 878.67 due to outstanding payments 

including interest accrued for R 402 669.99. The amount was subsequently paid by the 

department in 2008/09 financial year. The amount was disclosed as an accrual in the 

disclosure notes to the annual financial statements for the year ended 31 March 2008. 

12 PERFORMANCE INFORMATION 

During the 2007/08 financial year, the Strategic Planning Unit endeavoured to establish 

formal processes which will deliver performance information. Due to capacity constraints 

the anticipated processes was not realized as planned. The Unit however planned all 

processes against the background of the Framework for Programme Performance 

Information of National Treasury and the Government-Wide Monitoring & Evaluation 

System of The Presidency. The main process for delivering performance information 

was through the coordination of quarterly performance reports of all programmes and 

sub-programmes of the Department. Towards the end of the 2007/08 financial year the 

Strategic Planning Unit together with the newly established Monitoring & Evaluation 

Unit embarked on a robust strategy for initiating formal processes for monitoring 

performance information of the Department. 

The urgency for this development was underscored by the Provincial Monitoring 

& Evaluation Framework of the Office of the Premier and the Policy Framework for 

109

Government-Wide Monitoring & Evaluation issued by the Presidency in November 2007. 

The aforementioned strategies are captured in the Department Annual Performance Plan 

of 2008/09. As part of the envisaged Departmental monitoring-system for the 2008/09 

financial year, the Monitoring & Evaluation Unit initiated a Monthly Performance 

Reporting-system for all Programmes of the Department in order to build-up a database 

of information which will enable analysis and evaluation. The Monitoring & Evaluation 

Unit plans to expand its capacity during the 2008/09 financial year in order to fully 

adhere to the requirements from The Presidency and National Treasury. The Monitoring & 

Evaluation Unit realizes the urgency to monitor its Public Entities much more effectively 

and is consciously working towards achieving that state of affairs. 

13 SCOPA RESOLUTIONS 

Include a table in the management report on the SCOPA resolutions. The table should 

conform to the following format: 

REFERENCE TO PREVIOUS 

AUDIT REPORT AND SCOPA 

RESOLUTIONS 

SUBJECT 

FINDINGS ON PROGRESS 

Unauthorised Expenditure for 

2003/04 & 2005/06 

Compensation of Employees 

Goods and Services 

Local and Foreign Assistance 

Unauthorised expenditure amounting to 

R3,827 million 

Transfer of employees to the Eastern Cape 

Parks Board 

Non-submission of documentation 

requested 

Incorrect disclosure of the revenue and 

expenditure 

An unauthorised expenditure amounting to 

R382, 000 for 2003/04 was approved by SCOPA. 

However, R772, 000 for 2003/04 & 2005/06 was 

not considered as an unauthorised expenditure 

and R 2,673 million for 2005/06 was not approved. 

The findings for the 2005/06 & 2006/07 financial 

years have as yet not been tabled 

See above 

See above 

Housing Guarantees Incorrect disclosure of Contingent Liability See above 

Commitments Incorrect commitments listed. See above 

Lease Commitments Incorrect Lease Commitments exposure See above 

Capital Assets No proper Fixed Assets Register See above 

Leave Entitlement Incorrect calculation of leave entitlements See above 

Journals Inadequate narrations to Journals See above 

110

14 PRIOR MODIFICATIONS TO AUDIT REPORTS 

• Actual Verification System (AVS) has been implemented as a mechanism to address the 

audit findings by the Auditor General. 

• Proqure & Proquote System was utilised to generate the commitment register 

• Appointment and absorption of internship programme and unemployed graduates 

15 OTHER 

A new Head of Department was appointed in November 2007 and a new Chief Director 

for Economic Development was appointed in February 2008. 

16 APPROVAL 

The Annual Financial Statements set out on pages 20 to 72 have been approved by the 

Accounting Officer. 

Dr E Nkem-Abonta 

Head of Department 

31 May 2008 

111

3.2 Report of the Auditor General 

REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE 

ON THE FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION OF VOTE NO. 9: 

DEPARTMENT OF ECONOMIC DEVELOPMENT AND ENVIRONMENTAL AFFAIRS FOR THE 

YEAR ENDED 31 MARCH 2008 

REPORT ON THE FINANCIAL STATEMENTS 

1. 

Introduction 

I have audited the accompanying financial statements of the Department of Economic 

Development and Environmental Affairs which comprise the appropriation statement, 

statement of financial position as at 31 March 2008, statement of financial performance, 

statement of changes in net assets and cash flow statement for the year then ended, and 

a summary of significant accounting policies and other explanatory notes, as set out on 

pages 102 to 169. 

Responsibility of the accounting officer for the financial statements 

2. The accounting officer is responsible for the preparation and fair presentation of 

these financial statements in accordance with the modified cash basis of accounting 

determined by the National Treasury, as set out in accounting policy note 1 and in the 

manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA). 

This responsibility includes: 

• designing, implementing and maintaining internal control relevant to the preparation 

and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error 

• selecting and applying appropriate accounting policies 

• making accounting estimates that are reasonable in the circumstances. 

3. 

Responsibility of the Auditor-General 

As required by section 188 of the Constitution of the Republic of South Africa, 1996 read 

with section 4 of the Public Audit Act, 2004 (Act No. 25 of 2004) (PAA), my responsibility is 

to express an opinion on these financial statements based on my audit. 

4. 

I conducted my audit in accordance with the International Standards on Auditing and 

General Notice 616 of 2008, issued in Government Gazette No. 31057 of 15 May2008. 

Those standards require that I comply with ethical requirements and plan and perform 

the audit to obtain reasonable assurance on whether the financial statements are free 

from material misstatement. 

112

5. 

An audit involves performing procedures to obtain audit evidence about the amounts 

and disclosures in the financial statements. The procedures selected depend on the 

auditor’s judgement, including the assessment of the risks of material misstatement of 

the financial statements, whether due to fraud or error. In making those risk assessments, 

the auditor considers internal control relevant to the entity’s preparation and fair 

presentation of the financial statements in order to design audit procedures that are 

appropriate in the circumstances, but not for the purpose of expressing an opinion on 

the effectiveness of the entity’s internal control. 

6. An audit also includes evaluating the: 

• appropriateness of accounting policies used 

• reasonableness of accounting estimates made by management 

• overall presentation of the financial statements. 

7. 

I believe that the audit evidence I have obtained is sufficient and appropriate to provide 

a basis for my audit opinion. 

Basis of accounting 

The department’s policy is to prepare financial statements on the modified cash basis of 

accounting determined by the National Treasury, as set out in accounting policy note 1. 

Basis for qualified opinion 

8. 

Capital assets 

The department did not exercise sufficient controls over the maintenance of the fixed 

asset register. As a result, the fixed asset register submitted for audit purposes totaled 

R7,8 million whereas the closing balance disclosed in disclosure note 28 totals R24,6 

million resulting in a misstatement of R16,8 million for which the department are unable 

to provide an adequate explanation. Furthermore, additions to tangible assets disclosed 

in disclosure note 28.1 to the annual financial statements have been understated by 

an amount of R1,5 million included in accruals, in respect of machinery and equipment 

purchased and received prior to year end but not paid for. In addition, the fixed asset 

register did not contain adequate information to enable me to confirm the existence of 

assets contained therein. 

9. 

Consequently, I was unable to verify the accuracy, existence, completeness and valuation 

of assets included in the tangible assets closing balance of R24,6 million as disclosed in 

disclosure note 28 to the financial statements. 

113

10. 

Accruals 

I was unable to obtain sufficient appropriate audit evidence for accruals to the value 

of R445 678. In addition, accruals has been overstated by an amount of R1,04 million 

representing expenditure paid for during the year and invoices for which goods and 

services had not yet been received at year end and understated by an amount of R452 952 

representing goods and services received during the year but were not paid for at year 

end. Consequently, I was not able to verify the existence, completeness and accuracy of 

accruals disclosed in disclosure note 21 to the financial statements in the amount of 

R4,38 million. 

11. 

Commitments 

I was unable to obtain sufficient appropriate audit evidence for commitments to the 

value of R417 290. In addition, amounts totaling R558 050 are included in accruals and 

should have been disclosed as commitments. It was thus not possible to confirm the 

existence, completeness and accuracy of the commitments disclosed in disclosure note 

20 to the financial statements in the amount of R1,4 million. 

12. 

Departmental revenue to be surrendered to the revenue fund 

I was unable to obtain sufficient appropriate audit evidence for departmental revenue 

to be surrendered to the revenue fund as disclosed at R5,4 million in the statement of 

financial position and note 15 to the financial statements. Alternative audit procedures 

that were performed and according to a confirmation received from the provincial 

revenue fund resulted in the conclusion that this amount is understated by R5.5 million. 

The department was not able to provide an adequate explanation for the difference. 

13. 

Contingent liabilities 

I was unable to obtain sufficient appropriate audit evidence related to the housing loan 

guarantees to the value of R553 870.Alternative procedures were performed but were not 

successful to enable me to confirm the accuracy, validity and classification of the amount 

of R1.2 million disclosed in disclosure note 19 to the financial statements. 

Qualified opinion 

14. In my opinion, except for the effects of the matters described in the Basis for qualified 

opinion paragraphs, the financial statements present fairly, in all material respects, the 

financial position of the Department of Economic Development and Environmental 

Affairs as at 31 March 2008 and its financial performance and cash flows for the year 

then ended, in accordance with the modified cash basis of accounting and in the manner 

required by the PFMA. 

114

Emphasis of matters 

I draw attention to the following matters: 

Highlighting critically important matters presented or disclosed in the financial 

statements 

15. 

Irregular expenditure 

As disclosed in note 25 to the financial statements, irregular expenditure amounting 

to R6,5 million was incurred by the department during the year ended 31 March 2008. 

This expenditure relates to departmental funds committed without the approval of the 

provincial legislature, as required by Treasury Regulation 21.1.1. 

Fruitless and wasteful expenditure 

16. As disclosed in note 10 to the financial statements, fruitless and wasteful 

expenditure amounting to R149 000 was incurred by the department for the year 

ended 31 March 2008. 

17. 

Material under spending of the budget 

As disclosed in the appropriation statement, the department has materially under spent 

its budget to the amount of R21,4 million for the financial year under review. 

18. 

Restatement of corresponding figures 

Disclosure note 10 and annexure 3A to the annual financial statements indicates that the 

previously issued financial statements were restated due to the department attempts to 

rectify the disclosure of housing guarantees. 

OTHER MATTERS 

I draw attention to the following matters that relate to my responsibilities in the audit 

of the financial statements: 

115

19. 

Internal controls 

Section 38(1)(a)(i) of the PFMA states that the accounting officer must ensure that the 

department has and maintains effective, efficient and transparent systems of financial 

and risk management and internal control. The table below depicts the root causes that 

gave rise to the inefficiencies in the system of internal control, which led to the qualified 

opinion. The root causes are categorised according to the five components of an effective 

system of internal control. In some instances deficiencies exist in more than one internal 

control component. 

REPORTING ITEM 

CONTROL 

ENVIRONMENT 

RISK 

ASSESSMENT 

CONTROL 

ACTIVITIES 

INFORMATION 

AND COMMUNI- 

CATION 

MONITORING 

Capital assets 

 

Accruals 

 

Commitments 

 

Departmental revenue to be 

surrendered to the revenue fund 

 

Contingent liabilities 

• Control environment: establishes the foundation for the internal control system by providing fundamental discipline and 

structure for financial reporting. 

• Risk assessment: involves the identification and analysis by management of relevant financial reporting risks to achieve 

predetermined financial reporting objectives. 

• Control activities: policies, procedures and practices that ensure that management’s financial reporting objectives are achieved 

and financial reporting risk mitigation strategies are carried out. 

• Information and communication: supports all other control components by communicating control responsibilities for financial 

reporting to employees and by providing financial reporting information in a form and time frame that allows people to carry 

out their financial reporting duties. 

• Monitoring: covers external oversight of internal controls over financial reporting by management or other parties outside the 

process; or the application of independent methodologies, like customised procedures or standard checklists, by employees 

within a process. 

Matters of governance 

20. The PFMA tasks the accounting officer with a number of responsibilities concerning 

financial and risk management and internal control. Fundamental to achieving this is the 

implementation of certain key governance responsibilities, which I have assessed as follows: 

MATTER OF GOVERNANCE YES NO 

Audit committee 

The department had an audit committee in operation throughout the financial year. 

The audit committee operates in accordance with approved, written terms of reference. 

 

 

The audit committee substantially fulfilled its responsibilities for the year, as set out in section 77 of the PFMA 

and Treasury Regulations 3.1.10. 

 

Internal audit 

The department had an internal audit function in operation throughout the financial year. 

 

116

MATTER OF GOVERNANCE YES NO 

The internal audit function operates in terms of an approved internal audit plan. 

The internal audit function substantially fulfilled its responsibilities for the year, as set out in Treasury 

Regulations 3.2. 

Other matters of governance 

The annual financial statements were submitted for audit as per the legislated deadlines (section 40 of the 

PFMA). 

The financial statements submitted for audit were not subject to any material amendments resulting from the 

audit. 

No significant difficulties were experienced during the audit concerning delays or the unavailability of 

expected information and/or the unavailability of senior management. 

The prior year's external audit recommendations have been substantially implemented. 

SCOPA resolutions have been substantially implemented. 

 

 

 

 

 

 

 

OTHER REPORTING RESPONSIBILITIES 

Report on Performance Information 

21. 

I have reviewed the performance information as set out on pages 32 to 99. 

Responsibility of the accounting officer for the performance information 

22. The accounting officer has additional responsibilities as required by section 40(3)(a) 

of the PFMA to ensure that the annual report and audited financial statements fairly 

present the performance against predetermined objectives of the department. 

Responsibility of the Auditor-General 

23. I conducted my engagement in accordance with section 13 of the PAA read with General 

Notice 616 of 2008, issued in Government Gazette No. 31057 of 15 May 2008. 

24. In terms of the foregoing my engagement included performing procedures of an audit 

nature to obtain sufficient appropriate evidence about the performance information 

and related systems, processes and procedures. The procedures selected depend on the 

auditor’s judgement. 

25. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis 

for the audit findings reported below. 

117

Audit findings (performance information) 

Non-compliance with regulatory requirements 

26. Supporting evidence that performance reports for each quarter were compiled and 

submitted to the executive authority, as required by Treasury Regulation 5.3.1, could not be 

produced for audit purposes. Consequently, it was not possible to ascertain whether effective 

performance monitoring, evaluation and corrective action had been implemented. 

27. 

Measurable objectives not consistent 

The strategic plan of the department did not in all respects include measurable objectives 

and expected outcomes, as required by Treasury Regulation 5.2.2(d). 

Lack of sufficient appropriate audit evidence 

28. Sufficient appropriate audit evidence could not be obtained in relation to performance 

information in respect of programmes 3 and 9 to substantiate the actual performance as 

reported in the annual report of the department. 

OTHER REPORTS 

Investigations 

29. An independent investigation is being conducted to probe the potential deviations from 

normal payment procedures and processes. The investigation was still ongoing at the 

reporting date. 

APPRECIATION 

30. The assistance rendered by the staff of the Department of Economic Development and 

Environmental Affairs during the audit is sincerely appreciated. 

East London 

31 July 2008 

118

4.3 Report of the Audit Committee 

1 OVERVIEW 

We are pleased to present our report for the financial year ended 31 March 2008. 

2 AUDIT COMMITTEE MEMBERS AND ATTENDANCE 

The Audit Committee consists of the members listed hereunder and meets as often as it 

deems necessary as per the approved terms of reference. 

During the period under review, there were six meetings held. 

NAME OF MEMBER POSITION DATE APPOINTED # OF MEETINGS 

HELD 

Mr. V.G. Magan Chairperson December 2005 6 6 

Ms. L. Steele Member December 2005 6 6 

Ms. H.N. Jaxa Member December 2005 6 6 

Mr. M du Toit Member November 2006 6 6 

# OF MEETINGS 

ATTENDED 

3 AUDIT COMMITTEE RESPONSIBILITY 

The Audit Committee reports that it has complied with its responsibilities arising from 

Section 38(1) (a) of the Public Finance Management Act and Treasury Regulations 

The Audit Committee also reports that it has adopted appropriate formal terms 

of reference as its audit committee charter, has regulated its affairs in compliance 

with its charter and has discharged its responsibilities as contained therein. 

4 THE EFFECTIVENESS OF INTERNAL CONTROL 

During the year under review internal audit performed certain assignments. Reports 

presented to management highlighted certain internal control weaknesses where 

management had failed to comply with certain prescripts and/or legislation. 

Management acknowledged the findings and recommendations of internal audit. 

However, difficulties are often experienced by the department in terms of implementing 

these recommendations. 

119

Internal Audit 

The province has a shared internal audit services (SIAS) and audit committee function in 

respect of 8 departments which is administered by the Provincial Treasury Department. 

As required by the Institute of Internal Auditors, an external quality assurance review 

commenced in March 2008. 

SIAS continues to experience an inherent challenge of high staff turnover and is in the 

process of identifying means of attending to this matter. 

Notwithstanding these constraints, the audit committee is satisfied that the internal 

audit function operated effectively and efficiently during the year under review. 

5 GOVERNANCE 

Risk Management 

A service provider was engaged to develop a risk strategy and a departmental risk register. 

These documents are still in draft stage and will be further refined and adopted in the 

forthcoming financial year. 

6 EVALUATION OF FINANCIAL STATEMENTS 

The Audit Committee concurs and accepts the Auditor Generals’ conclusions on the annual 

financial statements and is of the opinion that the audited annual financial statements 

be accepted and read together with the report of the Auditor General with the exception 

of items under matters of governance relating to the Audit Committee and the Internal 

Audit function, in that, in our opinion, substantial compliance has been achieved. 

7 APPRECIATION 

The committee expresses its sincere appreciation to the Honorable MEC, Accounting 

Officer, Senior Management team, Shared Internal Audit Services and the Auditor General. 

Chairperson of the Audit Committee 

Date: 30 July 2008 

120

3.4. APPROPRIATION STATEMENT 

for the year ended 31 March 2008 

APPROPRIATION PER PROGRAMME 

Adjusted 

Appropriation 

Shifting 

of Funds 

Virement 

Final 

Appropriation 

2007/08 2006/07 

Variance 

Actual 

Expenditure 

Expenditure 

as % 

of final 

Appropriation. 

Final 

Appropriation 

Actual 

Expenditure 

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 

1.Administration 

Current payment 75,100 75,100 69,344 5,756 92.3 65,824 53,450 

Transfers and subsidies 4,000 4,000 4,000 – 100 25 26 

Payment for capital assets 5,614 5,614 4,773 841 85.0 5,111 3,262 

2. Integrated Economic Development Services 


Transfers and subsidies 108,031 108,031 113,500 (5,469) 105.1 85,007 85,008 

Payment for capital assets 600 600 460 140 76.7 1,159 270 

3. Trade & Industry Development 

Current payment 3,389 3,389 3,212 177 94.8 – – 

Transfers and subsidies 340,410 340,410 340,410 – 100.0 360,331 360,331 

Payment for capital assets 200 200 48 152 24.0 – – 

4. Business Regulations & Governance 

Current payment 3,939 3,939 3,614 325 91.7 3,268 2,097 


Payment for capital assets – – 2 (2) 0.0 – – 

5. Economic Planning 

Current payment 1,000 1,000 373 627 37.3 – – 

Transfers and subsidies – – – – – – – 

Payment for capital assets – – – – – – – 

6. Environmental Management SDP L & CO & MO 


Transfers and subsidies – – 1,000 (1,000) 0 43 – 

Payment for capital assets 2,449 2,449 1,624 825 66.3 1,000 405 

7. Planning, Impact Pol & Waste 

Current payment 4,522 4,522 3,425 1,097 75.7 2,056 846 

Transfers and subsidies – – – – – – – 


8. Ecosystems Bio & Nat Her Ma 

Current payment 3,341 3,341 2,965 376 88.7 3,315 27,236 



121

Adjusted 

Appropriation 

Shifting 

of Funds 

Virement 

Final 

Appropriation 


Variance 

Actual 

Expenditure 

Expenditure 

as % 

of final 

Appropriation. 

Final 

Appropriation 

Actual 

Expenditure 

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 

9. Marine & Coastal Management 

Current payment 1,187 1,187 726 461 61.2 1,226 422 

Transfers and subsidies – – – – 0.0 – – 

Payment for capital assets – – – – 0.0 – – 

Subtotal 757,063 757,063 735,620 21,443 97.2 702,412 676,610 

Statutory Appropriation 

Current payment 910 910 697 213 76.6 810 480 

Transfers and subsidies 

Payment for capital assets 

TOTAL 757,973 757,973 736,317 21,656 97.1 703,222 677,090 

Reconciliation with Statement of Financial Performance 

Add: 

Prior year unauthorised expenditure approved with funding 382 

Departmental receipts 8,048 635 

Local and foreign aid assistance received – 

Actual amounts per Statements of 

Financial Performance (Total revenue) 766,403 703,857 

Add: 

Local and foreign aid assistance 

Prior year unauthorised expenditure approved 3,055 

Prior year fruitless and wasteful expenditure authorised 

Actual amounts per Statements of Financial Performance 

(Total expenditure) 739,372 677,090 

122

APPROPRIATION PER ECONOMIC CLASSIFICATION 

Current payments 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 

final Appropriation. 

Final 

Appropriation 

Actual 

Expenditure 

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 

Compensation of employees 94,434 94,434 78,762 15,672 83.4 86,758 73,614 

Goods and services 59,380 59,380 49,096 10,284 82,7 49,641 40,318 

Interest and rent on land 

Financial transactions in 

assets and liabilities 


Provinces and municipalities 

Departmental agencies 

and accounts 

560,386 560,386 561,855 (1,469) 100.3 538,668 538,668 

Universities and technikons 1,000 (1,000) 0 

Foreign governments and 

international organisations 

Public corporations and private 

enterprises 

4,000 (4,000) 0 

Non-profit institutions 34,000 34,000 34,000 - 100.0 20,000 20,000 

Households 75 73 

Payments for capital assets 

Buildings and other fixed structures 

Machinery and equipment 8,863 8,863 6,907 1,956 77.9 7,270 3,937 

Biological or cultivated assets 

Software and other intangible assets 

Land and subsoil assets 

Total 757,063 757,063 735,620 21,443 97.2 702,412 676,610 

123

STATUTORY APPROPRIATION 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 

List all direct charges against the 

National/Provincial Revenue Fund 

President and Deputy President 

salaries 

Member of executive committee/ 910 910 697 213 76.6 810 480 

parliamentary officers/legislature 

Judges and magistrates salaries 

Sector education and training 

authorities (SETA) 

National Skills Fund 

TOTAL 910 910 697 213 76.6 810 480 

124

DETAILS PER PROGRAMME FOR THE YEAR ENDED 31 MARCH 2008 

Programme 1 – Administration 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 

DETAILS/SUB-PROGRAMME R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 

1.1 Office of the MEC 

Current Payment 5,538 5,538 5,322 216 96.1 5,411 4,788 

Transfers and Subsidies 2 1 

Payment for Capital Assets 200 200 123 77 61.5 106 

1.2 Office of the HOD 

Current Payment 27,115 27,115 22,173 4,942 81.8 22,201 12,934 

Transfers and Subsidies 4,000 4,000 4,000 0 100.0 12 4 

Payment for Capital Assets 4,002 4,002 3,267 735 81.6 3,805 2,735 

1.3 Financial Management 

Current Payment 21,698 21,698 22,117 (419) 101.9 21,685 23,503 


Payment for Capital Assets 700 700 719 (19) 102.7 800 293 

1.4 Corporate Services 



Payment for Capital Assets 712 712 664 48 93.3 400 234 

TOTAL 84,714 84,714 78,117 6,597 92.2 70,960 56,738 

DETAILS/ECON. CLASSIFICATION R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 

Current payments: 


Goods and services 32,210 32,210 30,712 1,498 95.3 26,654 24,704 

Transfers and subsidies to: 

Non-profit institutions 4,000 4,000 4,000 0 100.0 


Payments for capital assets: 

Machinery and equipment 5,614 5,614 4,773 841 85.0 5,111 3,262 

TOTAL 84,714 84,714 78,117 6,597 92.2 70,960 56,738 

125

Programme 2 – Integrated Economic Development Services 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 


2.1 Enterprise Development 


Transfers and Subsidies 11,031 11,031 15,500 (4,469) 140.5 

Payment for Capital Assets 600 600 460 140 76.7 

2.2 Local Economic Development 

Current Payment 2,986 2,986 1,710 1,276 57.3 1,119 626 

Transfers and Subsidies 30,000 30,000 31,000 (1,000) 103.3 20,000 20,000 

Payment for Capital Assets 93 

2.3 Economic Development 

Current Payment 14,935 12,709 

Transfers and Subsidies 67,000 67,000 67,000 0 100.0 65,007 65,008 

Payment for Capital Assets 1,159 177 

TOTAL 129,687 129,687 127,137 2,550 98.0 105,020 100,932 




Goods & Services 6,997 6,997 1,156 5,841 16.5 5,591 5,392 


Departmental agencies and 

78,031 78,031 79,500 (1,469) 101.9 65,000 65,000 

accounts 

Public corporations and private 

4,000 (4,000) 

enterprises 

Non-profit institutions 30,000 30,000 30,000 0 100.0 20,000 20,000 



Machinery and equipment 600 600 460 140 76.7 1,159 270 

TOTAL 129,687 129,687 127,137 2,550 98.0 105,020 100,932 

126

Programme 3 – Trade and Industry Development 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 


3.1 Trade & Investment Development 

Transfers and Subsidies 20,410 20,410 20,410 0 100.0 14,200 14,200 

3.2 Sector Development 

Current Payment 3,389 3,389 3,212 177 94.8 


Payment for Capital Assets 200 200 48 152 24.0 

3.3 Industry Development 

Transfers and Subsidies 217,200 217,200 217,200 100.0 224,200 224,200 

TOTAL 343,999 343,999 343,670 329 99.9 360,331 360,331 



Compensation of employees 902 902 502 400 55.7 

Goods & Services 2,487 2,487 2,710 (223) 109.0 



accounts 

340,410 340,410 340,410 0 100.0 360,331 360,331 


Macinery and equipment 200 200 48 152 24.0 

TOTAL 343,999 343,999 343,670 329 99.9 360,331 360,331 

Programme 4 – Business Regulations and Governance 

Actual 

Expenditure 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 


4.1 Corporate Governance 


4.2 Consumer Protection 

Current Payment 1,576 1,576 1,435 141 91.1 1,000 482 

Payment for Capital Assets 0 0 2 (2) 0.0 

4.3 Liquor Regulation 


4.4 Gambling & Betting 


TOTAL 46,477 46,477 46,154 323 99.3 36,905 35,734 

127

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 



Compensation of employees (1) 1 

Goods & Services 3,939 3,939 3,615 324 91.8 3,268 2,097 



accounts 

42,538 42,538 42,538 0 100.0 33,637 33,637 


Macinery and equipment 2 (2) 

TOTAL 46,477 46,477 46,154 323 99.3 36,905 35,734 

Programme 5 – Economic Planning 

Actual 

Expenditure 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 


5.1 Policy & Planning 

Current Payment 150 150 0 150 0.0 

5.2 Research & Development 


5.3 Knowledge Management 


5.4 Monitoring & Evaluation 

Current Payment 300 300 373 (73) 124.3 

TOTAL 1,000 1,000 373 627 37.3 



Goods & Services 1,000 1,000 373 627 37.3 

TOTAL 1,000 1,000 373 627 37.3 

128

Programme 6 – Environmental Management and Sustainable Development 

Policy, Legislation Coordination & monitoring 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 


6.1 Corporate Governance 

Current Payment 836 836 1,432 (596) 171.3 

Payment for Capital Assets 9 (9) 

6.2 Inst. & Leg. Development 


Transfers and Subsidies 1,000 (1,000) 43 

Payment for Capital Assets 1,000 405 

6.3 Sus. Dev. & Sus Mon & Reporting 

Current Payment 3,461 3,461 2,341 1,120 67.6 

Payment for Capital Assets 2,449 2,449 1,615 834 65.9 

TOTAL 42,729 42,729 33,646 9,083 78.7 42,899 14,632 




Goods and services 4,297 4,297 3,896 401 90.7 7,531 4,564 


Universities and Technikons 1,000 (1,000) 

Households 43 


Machinery and equipment 2,449 2,449 1,624 825 66.3 1,000 405 

TOTAL 42,729 42,729 33,646 9,083 78.7 42,899 14,632 

Programme 7 – Planning, Impact, Pollution and Waste Management, 

Actual 

Expenditure 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 


7.1 Compl., Enforcement & Rehab. 

Current Payment 1,393 1,393 829 564 59.5 1,200 627 

7.2 Air Quality Management 

Current Payment 966 966 775 191 80.2 856 219 

7.3 Waste Management 

Current Payment 2,163 2,163 1,821 342 84.2 

TOTAL 4,522 4,522 3,425 1,097 75.7 2,056 846 

129

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 



Goods & Services 4,522 4,522 3,425 1,097 75.7 2,056 846 

TOTAL 4,522 4,522 3,425 1,097 75.7 2,056 846 

Programme 8 – Ecosystems, Biodiversity and National Heritage Planning 

Actual 

Expenditure 

Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 


Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 


8.1 Eco Bio Nat Her PMR 


Payment for Capital Assets 39 

8.2 Protected Area Establishment 


8.3 Eco Bio Nat Her Rus Invest 

Current Payment 939 939 1,384 (445) 147.4 

TOTAL 102,748 102,748 102,372 376 99.6 83,015 106,975 



Compensation of employees 24,943 

Goods & Services 3,341 3,341 2,965 376 88.7 3,315 2,293 



accounts 

99,407 99,407 99,407 0 100.0 79,700 79,700 


Macinery and equipment 39 

TOTAL 102,748 102,748 102,372 376 99.6 83,015 106,975 

130

Programme 9 – Marine and Coastal Management, 

Environmental Management and Sustainable Development 


Adjusted 

Appropriation 

Shifting 

of 

Funds 

Virement 

Final 

Appropriation 

Actual 

Expenditure 

Variance 

Expenditure 

as % of 


Final 

Appropriation 

Actual 

Expenditure 


9.1 Marine & Coastal Res 

Current Payment 387 387 163 224 42.1 1,226 422 

9.2 Marine & Coast Rusia 


9.3 Marine Pol. Man & Reg. 


TOTAL 1,187 1,187 726 461 61.2 1,226 422 



Compensation of employees 600 600 482 118 80.3 

Goods & Services 587 587 244 343 41.6 1,226 422 

TOTAL 1,187 1,187 726 461 61.2 1,226 422 

131

3.5 Notes to the Appropriation Statement 

1. 

Detail of transfers and subsidies as per Appropriation Act (after Virement): 

Detail of these transactions can be viewed in note 9 (Transfers and subsidies) and 

Annexure1(A-K) to the Annual Financial Statements. 

2. 

Detail of specifically and exclusively appropriated amounts voted (after Virement): 

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual 

Financial Statements. 

3. 

Detail on financial transactions in assets and liabilities 

Detail of these transactions per programme can be viewed in note 8 (Financial transactions 

in assets and liabilities) to the Annual Financial Statements. 

4. 

Explanations of material variances from Amounts Voted (after Virement): 

The variance are recorded as material when they exceed 5% of the voted amount of a programme. 

Final 

Appropriation 

Actual 

Expenditure 

Variance Variance as a % 

of Final 

Appropriation 

4.1 PER PROGRAMME R’000 R’000 R’000 R’000 

1 Administration 85,624 78,814 6,810 7.9 


3. Trade & industry Development 343,999 343,670 329 0.1 

4 Business Regulations & Governance 46,477 46,154 323 0.7 

5 Economic Planning 1,000 373 627 62.7 

6 Environmental Management 42,729 33,646 9,083 21.3 

7 Planning, Impact Pol & Waste 4,522 3,425 1,097 24.3 

8 Ecosystems Bio & Nat Her Ma 102,748 102,372 376 0.4 

9 Marine & Coastal Management 1,187 726 461 38.8 

Total 757,973 736,317 21,656 

132

Final 

Appropriation 

Actual 

Expenditure 

Variance Variance as a % 

of Final 

Appropriation 

4.2 PER ECONOMIC CLASSIFICATION R’000 R’000 R’000 R’000 

Economic Classification 

Current payment: 154,724 128,555 26,169 12.7 

Compensation of employees 95,344 79,459 15,885 16.7 

Goods and services 59,380 49,096 10,284 17.3 

Transfers and subsidies: 594,386 600,855 (6,469) -1.1 

Departmental agencies and accounts 560,386 561,855 (1,469) -0.9 

Public corporations and private enterprises 4,000 (4,000) -1.0 

Universities - 1,000 (1,000) 0.0 

Non-profit institutions 34,000 34,000 - 0.0 

Payments for capital assets: 8,863 6,907 1,956 22.1 

Machinery and equipment 8,863 6,907 1,956 22.1 

Totals 757,973 736,317 21, 656 

Explanations of material variances from Amounts Voted (after Virement): 

The variance are recorded as material when they exceed 5% of the voted amount of a programme 

a. 


Compensation of employees 

The Programme planned to recruit more senior managers in the Strategic Planning, 

Compliance & Risk Management and the Supply Chain Management Units and the 

operational staff. For the new posts, the recruitment could only begin when the jobs had 

been fully evaluated as required by the Public Service Regulations. Unfortunately the 

job evaluation could not be completed during the year under review and therefore, the 

budget for Compensation of Employees could not be spent. 

b. 


Recruitment of new staff normally results in new equipment, especially computers and 

office furniture, being bought. The under-spending is partly attributable to the inability 

of the department to complete the job evaluation and subsequent recruitment of the 

senior management staff for which new equipment would have been purchased. 

The department however placed orders for capital assets but they could not be delivered 

by the suppliers before the year ended and therefore payment could not be made. The 

amount involved is included in the List of Commitments at the end of the year. 

133

a. 

Programme 5: Economic Planning 

Goods and services 

The Programme planned to commission consultants to undertake research in various 

areas in economic development and also to develop knowledge database that will assist 

the department in meeting its obligation. Since this was a new programme in line with 

the gazetted budget programme structure, the staffing was done late in the financial 

year and therefore the budget for goods and services could not all be spent. 

a. 

Programme 6: Environmental Management & Sustainable 

Development Policy,Legislation, Co-ordination & Monitoring 


The recruitment process of some key staff in the Environmental Affairs - Chief Directorate 

- got off late and therefore the budget for compensation of employees could not be spent. 

The advert for the additional key staff has been placed in the newspapers in April 2008. 

b. 


As a result of the inability of the department to recruit the additional technical staff in 

the Environmental Affairs Chief Directorate, the planned purchase of office furniture and 

computers for the envisaged new staff could not take place. 

a. 

Programme 7: Planning, Impact, Pollution & Waste Management 

Goods and Services 

This programme was also a new programme in terms of the gazetted budget programme 

structure and in the first place, there were difficulties in the recruitment process to get 

the right technical staff and secondly the planning processes began only when the staff 

had been appointed. There was thus under-expenditure of the budget for goods and 

services. 

a. 

Programme 9: Marine And Coastal Management 


The budget for Compensation of Employees for the Environmental Affairs Programme was 

allocated under Programme 6 – Environmental Management. This means there should 

not have been a budget allocation for Compensation of Employees for this programme 

– Marine and Coastal Management. Hence the under-spending of Compensation of 

Employees budget. 

b. 

Goods and services 

As a result of the inability of the department to recruit staff to this programme, the 

department could not spend some of the budget for goods and services. 

134

3.6 STATEMENT OF FINANCIAL PERFORMANCE 


REVENUE 

Note 2007/08 2006/07 

R’000 R’000 

Annual appropriation 1 757,063 702,412 

Statutory appropriation 2 910 810 

Appropriation for unauthorised expenditure approved 9 382 - 

Departmental revenue 3 8,048 635 

TOTAL REVENUE 766,403 703,857 

EXPENDITURE 

Current expenditure 

Compensation of employees 5 79,459 74,094 

Goods and services 6 49,096 40,318 

Unauthorised expenditure approved 9 3,055 - 

Total current expenditure 131,610 114,412 

Transfers and subsidies 7 600,855 558,741 

Expenditure for capital assets 

Machinery and equipment 8 6,907 3,937 

Total expenditure for capital assets 6,907 3,937 

TOTAL EXPENDITURE 739,372 677,090 

SURPLUS 27,031 26,767 

Add back unauthorised expenditure 9 - 2,673 

Add back fruitless and wasteful expenditure 10 149 - 

SURPLUS FOR THE YEAR 27,180 29,440 

Reconciliation of Surplus for the year 

Voted Funds 14 19,132 28,805 

Departmental Revenue 15 8,048 

SURPLUS FOR THE YEAR 27,180 29,440 

135

3.7 STATEMENT OF FINANCIAL POSITION 

as at 31 March 2008 


R’000 R’000 

ASSETS 

Current assets 4,560 10,647 

Unauthorised expenditure 9 - 3,827 

Fruitless and wasteful expenditure 10 306 157 

Cash and cash equivalents 11 2,738 6,242 

Receivables 12 1,516 421 

Non-current assets 270,870 239,373 

Investments 13 270,870 239,373 

TOTAL ASSETS 275,430 250,020 

LIABILITIES 

Current liabilities 4,560 10,647 

Voted funds to be surrendered to the Revenue Fund 14 (962) 3,426 

Departmental revenue to be surrendered to the Revenue Fund 15 5,486 7,119 

Payables 16 36 102 

TOTAL LIABILITIES 4,560 10,647 

NET ASSETS 270,870 239,373 

Represented by: 

Capitalisation reserve 270,870 239,373 

TOTAL 275,430 250,020 

3.8 STATEMENT OF CHANGES IN NET ASSETS 



R’000 R’000 

CAPITALISATION RESERVES 

Opening balance 239,373 172,755 

Transfers: 31,497 66,618 

Movement in Equity 

Movement in Operational Funds 

Other movements (Non-cash movement from ECDC) 31,497 66,618 

Closing balance 270,870 239,373 

TOTAL 270,870 239,373 

136

3.9 CASH FLOW STATEMENT 



R’000 R’000 

CASH FLOWS FROM OPERATING ACTIVITIES 

Receipts 838,570 768,468 

Annual appropriated funds received 1.1 737,722 677,033 

Statutory appropriated funds received 910 810 

Appropriation for unauthorised expenditure received 9 382 - 

Departmental revenue received 3 99,556 90,625 

Net (increase)/decrease in working capital 2,517 (4,971) 

Surrendered to Revenue Fund (105,368) (111,825) 

Current payments (131,461) (114,412) 

Unauthorised expenditure – current payment 9 - 2,673 

Transfers and subsidies paid (600,855) (558,741) 

Net cash flow available from operating activities 17 3,403 (18,808) 

CASH FLOWS FROM INVESTING ACTIVITIES 

Payments for capital assets (6,907) (3,937) 

(Increase) in investments (31,497) (66,618) 

Net cash flows from investing activities (38,404) (70,555) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Increase in net assets 31,497 66,618 

Net cash flows from financing activities 31,497 66,618 

Net increase/(decrease) in cash and cash equivalents (3,504) (22,745) 

Cash and cash equivalents at the beginning of the period 6,242 28,987 

Cash and cash equivalents at end of period 18 2,738 6,242 

137

3.10 ACCOUNTING POLICIES 


The Financial Statements have been prepared in accordance with the following policies, 

which have been applied consistently in all material aspects, unless otherwise indicated. 

However, where appropriate and meaningful, additional information has been disclosed 

to enhance the usefulness of the Financial Statements and to comply with the statutory 

requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 

29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of 

Revenue Act, Act 2 of 2006. 

1 PRESENTATION OF THE FINANCIAL STATEMENTS 

1.1.1 Basis of preparation 

The Financial Statements have been prepared on a modified cash basis of accounting, 

except where stated otherwise. The modified cash basis constitutes the cash basis of 

accounting supplemented with additional disclosure items. Under the cash basis of 

accounting transactions and other events are recognised when cash is received or paid. 

1.2 Presentation currency 

All amounts have been presented in the currency of the South African Rand (R) which is 

also the functional currency of the department. 

1.3 Rounding 

Unless otherwise stated all financial figures have been rounded to the nearest one 

thousand Rand (R’000). 

1.4 Comparative figures 

Prior period comparative information has been presented in the current year’s financial 

statements. Where necessary figures included in the prior period financial statements 

have been reclassified to ensure that the format in which the information is presented is 

consistent with the format of the current year’s financial statements. 

1.5 Comparative figures - Appropriation Statement 

A comparison between actual amounts and final appropriation per major classification 

of expenditure is included in the appropriation statement. 

138

2 REVENUE 

2.1 Appropriated funds 

Appropriated funds are recognised in the financial records on the date the appropriation 

becomes effective. Adjustments to the appropriated funds made in terms of the 

adjustments budget process are recognised in the financial records on the date the 

adjustments become effective. 

Total appropriated funds are presented in the statement of financial performance. 

Unexpended appropriated funds are surrendered to the National/Provincial Revenue 

Fund. Amounts owing to the National/Provincial Revenue Fund at the end of the financial 

year are recognised in the statement of financial position. 

2.2 Statutory Appropriation 

Statutory appropriations are recognised in the financial records on the date the 

appropriation becomes effective. Adjustments to the statutory appropriations made in 

terms of the adjustments budget process are recognised in the financial records on the 

date the adjustments become effective. 

Total statutory appropriations are presented in the statement of financial performance. 

Unexpended statutory appropriations are surrendered to the National/Provincial 

Revenue Fund. Amounts owing to the National/Provincial Revenue Fund at the end of 

the financial year are recognised in the statement of financial position. 

2.3 Departmental Revenue 

All departmental revenue is paid into the National/Provincial Revenue Fund when received, 

unless otherwise stated. Amounts owing to the National/Provincial Revenue Fund at the 

end of the financial year are recognised in the statement of financial position. 

Amounts receivable at the reporting date are disclosed in the disclosure notes to the 

annual financial statements. 

2.3.1 Tax revenue 

Tax revenue consists of all compulsory unrequited amounts collected by the department 

in accordance with laws and or regulations (excluding fines, penalties & forfeits). 

Tax receipts are recognised in the statement of financial performance when received. 

139

2.3.2 Sales of goods and services other than capital assets 

The proceeds received from the sale of goods and/or the provision of services is recognised 

in the Statement of Financial Performance when the cash is received. 

2.3.3 Fines, penalties & forfeits 

Fines, penalties & forfeits are compulsory unrequited amounts which were imposed by a 

court or quasi-judicial body and collected by the department. Revenue arising from fines, 

penalties and forfeits is recognised in the Statement of Financial Performance when the 

cash is received. 

2.3.4 Interest, dividends and rent on land 

Interest, dividends and rent on land is recognised in the statement of financial 

performance when the cash is received. 

2.3.5 Sale of capital assets 

The proceeds received on sale of capital assets are recognised in the Statement of 

Financial Performance when the cash is received. 

2.3.6 Financial transactions in assets and liabilities 

Repayments of loans and advances previously extended to employees and public 

corporations for policy purposes are recognised as revenue in the Statement of Financial 

Performance on receipt of the funds. 

Cheques issued in previous accounting periods that expire before being banked are 

recognised as revenue in the Statement of Financial Performance when the cheque 

becomes stale. When the cheque is reissued the payment is made from Revenue. 

Forex gains are recognised on payment of funds. 

2.4 Local and Foreign Aid Assistance 

Local and foreign aid assistance is recognised as revenue when notification of the 

assistance is received from the National Treasury or when the department directly 

receives the cash from the donor(s). 

All in-kind local and foreign aid assistance are disclosed at fair value in the annexures to 

the annual financial statements 

The cash payments made during the year relating to local and foreign aid assistance 

projects are recognised as expenditure in the Statement of Financial Performance. The 

140

value of the assistance expensed prior to the receipt of the funds is recognized as a 

receivable in the statement of financial position 

Inappropriately expensed amounts using local and foreign aid assistance and any 

unutilised amounts are recognised as payables in the statement of financial position. 

3 EXPENDITURE 

3.1 Compensation of employees 

3.1.1 Short-term employee benefits 

Salaries and wages comprise payments to employees (including leave entitlements, 

thirteenth cheques and performance bonuses). Salaries and wages are recognised as 

an expense in the Statement of Financial Performance when final authorisation for 

payment is effected on the system (by no later than 31 March of each year). Capitalised 

compensation forms part of the expenditure for capital assets in the Statement of 

Financial Performance. 

All other payments are classified as current expense. 

Short-term employee benefits that give rise to a present legal or constructive obligation 

are disclosed in the disclosure notes to the financial statements. These amounts are not 

recognised in the Statement of Financial Performance or Position. 

3.1.2 Post retirement benefits 

The department provides retirement benefits (pension benefits) for certain of its 

employees through a defined benefit plan for government employees. These benefits are 

funded by both employer and employee contributions. 

Employer contributions (i.e. social contributions) to the fund are expensed when the final 

authorisation for payment to the fund is effected on the system (by no later than 31 March 

of each year). No provision is made for retirement benefits in the financial statements of the 

department. Any potential liabilities are disclosed in the financial statements of the National/ 

Provincial Revenue Fund and not in the financial statements of the employer department. 

The department provides medical benefits for certain of its employees. Employer 

contributions to the medical funds are expensed when final authorisation for payment 

to the fund is effected on the system (by no later than 31 March of each year). 

141

3.1.3 Termination benefits 

Termination benefits such as severance packages are recognised as an expense in the 

Statement of Financial Performance as a transfer (to households) when the final authorisation 

for payment is effected on the system (by no later than 31 March of each year). 

3.1.4 Other long-term employee benefits 

Other long-term employee benefits (such as capped leave) are recognised as an expense 

in the Statement of Financial Performance as a transfer (to households) when the final 

authorisation for payment is effected on the system (by no later than 31 March of each year). 

Long-term employee benefits that give rise to a present legal or constructive obligation 

are disclosed in the disclosure notes to the financial statements. These amounts are not 

recognised in the Statement of Financial Performance or Position. 

3.2 Goods and Services 

Payments made for goods and/or services are recognised as an expense in the Statement of 

Financial Performance when the final authorisation for payment is effected on the system 

(by no later than 31 March of each year). The expense is classified as capital if the goods 

and services were used for a capital project or an asset of R5000 or more is purchased. All 

assets costing less than R5000 will also be reflected under goods and services. 

3.3 Interest and Rent on Land 

Interest and rental payments are recognised as an expense in the Statement of Financial 

Performance when the final authorisation for payment is effected on the system (by no 

later than 31 March of each year). This item excludes rental for the use of buildings or 

other fixed structures. If it is not possible to distinguish between payment for the use of 

land and the fixed structures on it, the whole amount should be recorded under goods 

and services. 

3.4 Financial Transactions in Assets and Liabilities 

Debts are written off when identified as irrecoverable. Debts written-off are limited to 

the amount of savings and/or underspending of appropriated funds. The write off occurs 

at year-end or when funds are available. No provision is made for irrecoverable amounts 

but amounts are disclosed as a disclosure note. 

All other losses are recognised when authorisation has been granted for the recognition 

thereof. 

142

3.5 Unauthorised Expenditure 

When discovered unauthorised expenditure is recognised as an asset in the statement 

of financial position until such time as the expenditure is either approved by the relevant 

authority, recovered from the responsible person or written off as irrecoverable in the 

Statement of Financial Performance. 

Unauthorised expenditure approved with funding is recognised in the Statement of 

Financial Performance when the unauthorised expenditure is approved and the related 

funds are received. Where the amount is approved without funding it is recognised as 

expenditure, subject to availability of savings, in the Statement of Financial Performance 

on the date of approval.. 

3.6 Fruitless and wasteful expenditure 

Fruitless and wasteful expenditure is recognised as an asset in the statement of financial 

position until such time as the expenditure is recovered from the responsible person or 

written off as irrecoverable in the Statement of Financial Performance. 

3.7 Irregular Expenditure 

Irregular expenditure is recognised as expenditure in the Statement of Financial 

Performance. If the expenditure is not condoned by the relevant authority it is treated as 

an asset until it is recovered or written off as irrecoverable. 

3.8 Transfers and Subsidies 

Transfers and subsidies are recognised as an expense when the final authorisation for 

payment is effected on the system (by no later than 31 March of each year). 

3.9 Expenditure for Capital Assets 

Payments made for capital assets are recognised as an expense in the Statement of 

Financial Performance when the final authorisation for payment is effected on the 

system (by no later than 31 March of each year). 

4 ASSETS 

4.1 Cash and Cash Equivalents 

Cash and cash equivalents are carried in the statement of financial position at cost. 

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on 

hand, deposits held, other short-term highly liquid investments and bank overdrafts. 

143

4.2 Other Financial Assets 

Other financial assets are carried in the Statement of Financial Position at cost. 

4.3 Receivables 

Receivables included in the statement of financial position arise from cash payments 

made that are recoverable from another party. 

Receivables outstanding at year-end are carried in the statement of financial position 

at cost. 

4.4 Investments 

Capitalised investments are shown at cost in the statement of financial position. Any 

cash flows such as dividends received or proceeds from the sale of the investment are 

recognised in the statement of financial performance when the cash is received. 

Investments are tested for an impairment loss whenever events or changes in 

circumstances indicate that the investment may be impaired. Any loss is included in the 

disclosure notes. 

4.5 Inventory 

Inventories purchased during the financial year are disclosed at cost in the notes. 

4.6 Capital assets 

A capital asset is recorded on receipt of the item at cost. Cost of an asset is defined as 

the total cost of acquisition. Where the cost cannot be determined accurately, the capital 

asset should be stated at fair value. Where fair value cannot be determined, the capital 

asset is included in the asset register at R1. 

Projects (of construction/development) running over more than one financial year 

relating to assets, are only capitalised as assets on completion of the project and at the 

total cost incurred over the duration of the project. 

Disclosure Notes 37 and 38 reflect the total movement in the asset register for the current 

financial year. 

144

5 LIABILITIES 

5.1 Voted Funds to be surrendered to the Revenue Fund 

Unexpended appropriated funds are surrendered to the Provincial Revenue Fund. Amounts 

owing to the Provincial Revenue Fund at the end of the financial year are recognised in 

the Statement of Financial Position 

5.2 Departmental Revenue to be surrendered to the Revenue Fund 

Amounts owing to the Provincial Revenue Fund at the end of the financial year are 

recognised in the statement of financial position at cost. 

5.3 Payables 

Recognised payables mainly comprise of amounts owing to other governmental entities. 

These payables are recognised at historical cost in the statement of financial position. 

5.4 Contingent liabilities 

Contingent liabilities are included in the disclosure notes. 

5.5 Commitments 

Commitments are not recognised in the statement of financial position as a liability 

or as expenditure in the statement of financial performance but are included in the 


5.6 Accruals 

Accruals are not recognised in the statement of financial position as a liability or 

as expenditure in the statement of financial performance but are included in the 


5.7 Employee Benefits 

Short-term employee benefits that give rise to a present legal or constructive 

obligation are disclosed in the disclosure notes to the financial statements. These 

amounts are not recognised in the statement of financial performance or the 

statement of financial position. 

145

5.8 Lease Commitments 

Lease commitments are not recognised in the statement of financial position as a 

liability or as expenditure in the statement of financial performance but are included in 

the disclosure notes. 

Operating and finance lease commitments are expensed when the payments are made. 

Assets acquired in terms of finance lease agreements are disclosed in the annexures and 

disclosure notes to the financial statements. 

6 RECEIVABLES FOR DEPARTMENTAL REVENUE 

Receivables for departmental revenue are disclosed in the disclosure notes to the annual 

financial statements. 

7 NET ASSETS 

7.1 Capitalisation Reserve 

The capitalisation reserve comprises of financial assets and/or liabilities originating in a 

prior reporting period but which are recognised in the statement of financial position for 

the first time in the current reporting period. Amounts are transferred to the National/ 

Provincial Revenue Fund on disposal, repayment or recovery of such amounts. 

7.2 Recoverable Revenue 

Amounts are recognised as recoverable revenue when a payment made in a previous 

financial year becomes recoverable from a debtor in the current financial year. 

8 KEY MANAGEMENT PERSONNEL 

Compensation paid to key management personnel including their family members 

where relevant, is included in the disclosure notes. 

146

3.11 NOTES TO THE ANNUAL FINANCIAL STATEMENTS 


1 Annual Appropriation 

1.1 Annual Appropriation 

Included are funds appropriated in terms of the Appropriation Act for National 

Departments (Voted funds) and Provincial Departments :** 

Final 

Appropriation 

Actual Funds 

Received 

Funds not 

requested/ 

not received 

Appropriation 

received 

2006/07 

R’000 R’000 R’000 R’000 

1. Administration 84,714 80,219 4,495 56,408 

2. Integrated Economic Development Services 129,687 127,137 2,550 476,750 

3. Trade & Industry Development 343,999 343,670 329 

4. Business Regulations & Governance 46,477 46,154 323 

5. Economic Planning 1,000 373 627 

6. Environmental Management SDP L & CO & MO 42,729 33,646 9,083 143,875 

7. Planning, Impact Pol & Waste 4,522 3,425 1,097 

8. Ecosystems Bio & Nat Her Ma 102,748 102,372 376 

9. Marine & Coastal Management 1,187 726 461 

Total 757,063 737,722 19,341 677,033 

2 Statutory Appropriation 


R’000 R’000 

Member of executive committee/parliamentary officers 910 810 

Actual Statutory Appropriation received 910 810 

3 Departmental Revenue 

Description (Specify material amounts separately) 


R’000 R’000 

Tax revenue 92,554 81,447 

Sales of goods and services other than capital assets 3.1 463 437 

Interest, dividends and rent on land 3.2 388 152 

Financial transactions in assets and liabilities 3.3 6,151 8,589 

Total revenue collected 99,556 90,625 

Less: Departmental Revenue Budgeted 15 91,508 89,990 

Departmental revenue collected 8,048 635 

147

3.1 Sales of goods and services other than capital assets 


R’000 R’000 

Sales of goods and services produced by the department 463 437 

Sales by market establishment 

Administrative fees – 437 

Other sales 463 – 

Sales of scrap, waste and other used current goods 

Total 463 437 

3.2 Interest, dividends and rent on land 


R’000 R’000 

Interest 388 152 

Dividends 

Rent on land 

Total 388 152 

3.3 Financial transactions in assets and liabilities 

Nature of recovery 


R’000 R’000 

Other Receipts including Recoverable Revenue 6,151 8,589 

Total 6,151 8,589 

4 Local and Foreign Aid Assistance 

Assistance received in cash: Other 


R’000 R’000 

Local 

Opening Balance – 350 

Revenue 

Expenditure – 350 

Current 350 

Capital 

Closing Balance – – 

Total assistance 

Opening Balance – 350 

Revenue 

Expenditure – 350 

Current 350 

Capital 

Closing Balance – – 

148

5 Compensation of Employees 

5.1 Salaries and Wages 


R’000 R’000 

Basic salary 51,028 51,430 

Performance award 220 116 

Service Based 5,121 3,030 

Compensative/circumstantial 2,362 461 

Periodic payments 21 - 

Other non-pensionable allowances 10,771 9,058 

Total 69,523 64,095 

5.2 Social contributions 


R’000 R’000 

Employer contributions 

Pension 6,427 6,565 

Medical 3,497 3,496 

Bargaining council 12 (62) 

Total 9,936 9,999 

Total compensation of employees 79,459 74,094 

Average number of employees 488 471 

6 Goods and Services 


R’000 R’000 

Advertising 2,416 812 

Attendance fees (including registration fees) 414 442 

Bank charges and card fees 15 13 

Catering 1,323 1,060 

Communication 4,765 3,899 

Computer services 3,776 3,842 

Consultants, contractors and special services 6,804 8,991 

Courier and delivery services 1 - 

Entertainment 2 3 

External audit fees 6.1 2,493 2,055 

Equipment less than R5000 645 435 

Inventory 6.2 4,681 2,147 

Legal fees 872 774 

Maintenance, repairs and running costs 105 46 

Medical Services 25 32 

Operating leases 1,882 1,549 

Resettlement costs 884 328 

Owned and leasehold property expenditure 186 139 

Travel and subsistence 6.3 12,874 10,501 

149


R’000 R’000 

Venues and facilities 1,697 661 

Protective, special clothing & uniforms 3 138 

Training & staff development 3,233 2,451 

Total 49,096 40,318 

*Note: Catering and Entertainment for 2006/07 has been re-classified 

6.1 External audit fees 


R’000 R’000 

Regulatory Audits 2,493 2,055 

Total 2,493 2,055 

6.2 Inventory 


R’000 R’000 

Domestic consumables 539 168 

Food and food supplies 373 93 

Fuel, oil and gas 12 4 

Other consumables 1,709 418 

Parts and other maintenance material 7 11 

Stationery and printing 2,041 1,452 

Medical supplies - 1 

Total 4,681 2,147 

6.3 Travel and Subsistence 


R’000 R’000 

Local 12,516 10,097 

Foreign 358 404 

Total 12,874 10,501 

7 Transfers and Subsidies 

R’000 R’000 

Departmental agencies and accounts Annex 1G 561,855 538,668 

Universities and technikons Annex 1H 1,000 - 

Public corporations and private enterprises Annex 1I 4,000 - 

Non-profit institutions Annex 1K 34,000 20,000 

Households Annex 1L 73 

Total 600,855 558,741 

150

8 Expenditure for Capital Assets 


R’000 R’000 

Machinery and equipment 28 6,907 3,937 

Total 6,907 3,937 

9 Unauthorised Expenditure 

Reconciliation of unauthorised expenditure 


R’000 R’000 


Unauthorised expenditure – current year 2,673 

Amounts approved by Parliament/Legislature (with funding) (382) – 

Current expenditure (382) 



Amounts approved by Parliament/Legislature (without funding) (2,673) 

Current expenditure (2,673) 



Transfer to receivables for recovery (not approved) (772) 

Unauthorised expenditure awaiting authorisation – 3,827 

10 Fruitless and Wasteful Expenditure 

Reconciliation of fruitless and wasteful expenditure 


R’000 R’000 

Opening balance 157 157 

Fruitless and wasteful expenditure – current year 149 

Current 149 

Fruitless and wasteful expenditure awaiting condonement 306 157 

Analysis of Current Year Fruitless and wasteful expenditure 

2006/07 

R’000 

Incident 

Disciplinary steps taken/criminal 

proceedings 

Double printing of Annual Reports for 2006/07 financial year Reported to the Head of Department 149 

Total 149 

151

11 Cash and Cash Equivalents 


R’000 R’000 

Consolidated Paymaster General Account 3,107 8,351 

Cash receipts (5) (8) 

Disbursements (364) (2,101) 

Total 2,738 6,242 

12 Receivables 


R’000 R’000 

Less than one 

year 

One to three 

years 

Older than three 

years 

Staff debtors 12.1 301 141 256 698 396 

Other debtors 12.2 818 818 25 

Total 301 959 256 1,516 421 

12.1 Staff Debtors 


(Group major categories, but list material items) R’000 R’000 

Debt Account, Debt Receivable Income, Debt Receivable 

Interest 698 396 

Total 698 396 

Total 

Total 

12.2 Other debtors 


(Group major categories, but list material items) R’000 R’000 

Sal: Medical 11 25 

Sal: Income Tax 19 – 

Sal: Pension Fund 16 – 

Claims Recoverable (Provincial Treasury) 772 – 

Total 818 25 

152

13 Investments 


R’000 R’000 

Securities other than shares 

Annex 2A 

(List investments at cost) 

Eastern Cape Development Corporation – Share Capital 270,870 239,373 

Total 270,870 239,373 

Total non-current 270,870 239,373 

Analysis of non current investments 


Non-cash movements 31,497 66,618 


14 Voted Funds to be surrendered to the Revenue Fund 


R’000 R’000 

Opening balance 3,426 607 

Transfer from Statement of Financial Performance 19,132 28,805 

Voted funds not requested/not received 14.1 (19,341) (25,379) 

Paid during the year (4,179) (607) 

Closing balance (962) 3,426 

14.1 Voted funds not requested/not received 


R’000 R’000 

Funds not to be requested (19,341) – 

(19,341) – 

15 Departmental Revenue to be surrendered to the Revenue Fund 


R’000 R’000 


Transfer from Statement of Financial Performance 8,048 635 

Departmental revenue budgeted 3 91,508 89,990 

Transfer from local and foreign aid assistance 

Paid during the year (101,189) (111,218) 


153

16 Payables – Current 


R’000 R’000 

30 Days 30+ Days Total Total 

Clearing accounts 16.1 36 36 102 

Total 36 36 102 

16.1 Clearing accounts 


(Identify major categories, but list material amounts) R’000 R’000 

Sal: ACB Recalls: and Sal: Deduction Disallowance 36 102 

Total 36 102 

17 Net Cash Flow Available from Operating Activities 


R’000 R’000 

Net surplus as per Statement of Financial Performance 27,180 29,440 

Add back non cash/cash movements not deemed operating activities (23,777) (48,248) 

(Increase) in receivables – current (1,095) (43) 

(Increase)/decrease in other current assets 3,678 (2,673) 

Increase/(decrease) in payables – current (661) (2,255) 

Expenditure on capital assets 6,907 3,937 

Surrenders to Revenue Fund (105,368) (111,825) 

Voted funds not requested/not received (19,341) (25,379) 

Other non-cash items 91,508 89,990 

Net cash flow generated by operating activities 3,403 (18,808) 

18 Reconciliation of Cash and Cash Equivalents for Cash Flow Purposes 


R’000 R’000 

Consolidated Paymaster General account 3,107 8,351 

Cash receipts (5) (8) 

Disbursements (364) (2,101) 

Total 2,738 6,242 

154

3.12 DISCLOSURE NOTES TO 

THE ANNUAL FINANCIAL STATEMENTS 


19 Contingent Liabilities 


R’000 R’000 

Liable to 

Nature 

Housing loan guarantees Employees Annex 3A 1,291 563 

Claims against the department Annex 3B 7.206 2,533 

Other departments (interdepartmental unconfirmed balances) Annex 5 - 429 

Total 8,497 3,525 

*Opening balances of the housing guarantees have been re-classified 

20 Commitments 


R’000 R’000 


Approved and contracted 235 3,101 

Approved but not yet contracted 

Capital expenditure 

Approved and contracted 1,178 1,288 

Approved but not yet contracted 

1,413 4,389 

Total Commitments 1,413 4,389 

21 Accruals 


R’000 R’000 

Listed by economic classification 30 Days 30+ Days Total Total 

Goods and services 2,918 2,918 357 

Machinery and equipment 1,466 1,466 

Total 4,384 4,384 357 

Listed by programme level 119 

Administration 3,040 67 

Integrated Economic Development Services 549 

Trade & Industry Development 120 

Business Regulations & Governance 237 

Environ Management & Sus Dev Pol, Leg, Co & Mo 149 171 

Planning, Impact, Pollution & Waste Management 209 

Ecosystems, Biodiversity & Nat Heritage Management 22 

Marine & Coastal Management 58 

4,384 357 

Confirmed balances with other departments Annex 5 5 

Confirmed balances with other government entities Annex 5 

5 

155

22 Employee benefits 


R’000 R’000 

Leave entitlement 3,745 1,951 

Thirteenth cheque 2,306 2,048 

Performance awards 944 876 

Capped leave commitments 14,475 14,069 

Total 21,470 18,944 

23 Lease Commitments 

Operating leases 

2007/2008 Land Buildings & 

Fixed Structures 

Machinery & 

Equipment 

R’000 R’000 R’000 R’000 

No later than 1 year 194 3,719 3,913 

Later than 1 year & no later than 5 years 5,942 5,942 

Later than 5 years 

Total present value of lease liabilities 194 9,661 9,855 

Total 

2006/2007 Land Buildings & 


Machinery & 

Equipment 

R’000 R’000 R’000 R’000 

No later than 1 year 879 879 



Total present value of lease liabilities 5,260 5,260 

Total 

Finance leases** 

2007/2008 Land Buildings & 


Machinery & 

Equipment 

R’000 R’000 R’000 R’000 


Later than 1 year & no later than 5 years 985 985 



Total 

2006/2007 Land Buildings & 


Machinery & 

Equipment 

R’000 R’000 R’000 R’000 





Total 

156

24 Receivables for Departmental Revenue 


R’000 R’000 

Tax Revenue 7,764 7,438 

Total 7,764 7,438 

25 Irregular Expenditure 

Reconciliation of irregular expenditure 


R’000 R’000 


Add: Irregular expenditure – current year 6,500 40,457 

Less: Amounts condoned 




Less: Not condoned 




Irregular expenditure awaiting condonement 236,049 229,549 

Analysis of awaiting condonement per classification 

Current expenditure 40,457 40,457 

Transfers and subsidies 195,592 189,092 


236,049 229,549 

Analysis of awaiting condonement per age classification 

Current year 6,500 

Prior years 229,549 229,549 

Total 236,049 229,549 

26 Key Management Personnel 

No. of 


Individuals 

R’000 R’000 

Political office bearers (provide detail below) 1 699 685 

Officials 

Level 15 to 16 3 771 727 

Level 14 (incl CFO if at a lower level) 4 1,838 1,670 

Family members of key management personnel 

Total 3,308 3,082 

157

27 Provisions 


R’000 R’000 

Potential irrecoverable Debts 

Staff debtors 698 

Total 698 

28 Tangible Capital Assets 

Movement in tangible capital assets per asset register for the year ended 31 March 2008 

Opening 

Balance 

Current 

year Adj. to 

prior year 

Balances 

Additions Disposals Closing 

Balance 

R’000 R’000 R’000 R’000 R’000 

Machinery and Equipment 13,303 6,907 20,210 

Transport assets 22 – 22 

Specialised military assets – – – 

Computer equipment 3,345 5,570 8,915 

Furniture and office equipment 587 1,337 1,924 

Other machinery and equipment 9,349 – 9,349 

Land and Subsoil Assets 4,350 – 4,350 

Land 4,350 – 4,350 

Mineral and similar non-regenerative 

resources 

Total Tangible Assets 17,653 6,907 24,560 

28.1 Additions to tangible capital assets per asset register for the year ended 31 March 2008 

Cash Non-Cash (Capital 

work in 

prog. current 

costs) 

Received 

current, not 

paid /(Paid 

current year, 

received 

prior year) 

R’000 R’000 R’000 R’000 R’000 

Machinery and Equipment 6,907 6,907 

Transport assets 

Specialised military assets 

Computer equipment 5,570 5,570 

Furniture and office equipment 1,337 1,337 

Other machinery and equipment 

Total 6,907 6,907 

Total 

158

28.2 Movement in tangible capital assets per asset register for the year ended 31 March 2007 

Opening 

Balance 


Balance 

R’000 R’000 R’000 R’000 

Machinery and Equipment 9,366 3,937 13,303 

Transport assets 22 – 22 

Specialised military assets – – – 

Computer equipment – 3,345 3,345 

Furniture and office equipment 587 587 

Other machinery and equipment 9,344 5 9,349 

Land and Subsoil Assets 4,350 4,350 

Land 4,350 4,350 

Mineral and similar non-regenerative resources 

Total Tangible Assets 13,716 3,937 17,653 

29 Intangible Capital Assets 

Movement in intangible capital assets per asset register for the year ended 31 March 2008 

Opening 

Balance 

Current 

year Adj. to 

prior year 

Balances 


Balance 

R’000 R’000 R’000 R’000 R’000 

Computer Software 1,144 1,144 

Total Intangible Assets 1,144 – – – 1,144 

Movement in intangible capital assets per asset register for the year ended 31 March 2007 

Opening 

Balance 


Balance 

R’000 R’000 R’000 R’000 

Computer Software 1,144 1,144 

Total – 1,144 – 1,144 

159

4.13 ANNEXURES TO THE 

ANNUAL FINANCIAL STATEMENTS 


ANNEXURE 1G 

Statement of Transfers to Departmental Agencies and Accounts 

Department/Agency/Account 

Adjusted 

Appr.Act 

Transfer Allocation Transfer 2006/07 

Roll Overs 

Total 

Available 

Actual 

Transfer 

% of 

Avail. funds 

Transf. 

Final 

Appr. Act 

R’000 R’000 R’000 R’000 R’000 % R’000 

EC Tourism Board 22,000 22,000 22,500 102.3 21,000 

EC Gambling & Betting 20,233 20,233 20,233 100.0 19,246 

Coega Development 

25,200 25,200 25,200 100.0 - 

Corporation 

East London Industrial 

192,000 192,000 192,000 100.0 224,200 

Development Zone 

EC Parks Board 99,407 99,407 99,407 100.0 79,700 

EC Development Corporation 179,210 179,210 180,210 100.6 180,131 

EC Liquor Board 22,305 22,305 22,305 100.0 14,391 

560,355 560,355 561,855 538,668 

University/ 

Technikon 

ANNEXURE 1H 

Statement of Transfers to Universities and Technikons 

Nelson Mandela 

University 

Adjusted 

Appr.Act 


Roll Overs 

Total 

Available 

Actual 

Transfer 

Amount not 

Transf. 

% of 

Avail. funds 

Transf. 

Final 

Appr. Act 

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 

1,000 (1,000) 0.00 

1,000 (1,000) 

Corporation/ 

Pvt Enterprise 

Inkanyezi Event 

Organisers 

ANNEXURE 1I 

Statement of Transfers/Subsidies to Public Corporations and Private Enterprises 

Adjusted 

Appr.Act 


Roll Overs 

Adjustments 

Adjustments 

Adjustments 

Total 

Available 

Actual 

Transfer 

% of 

Avail. 

funds 

Transf. 

Capital Current Final 

Appr. Act 

R’000 R’000 R’000 R’000 R’000 % R’000 R’000 R’000 

4,000 

4,000 

160

ANNEXURE 1K 

Statement of Transfers to Non-Profit Institutions 

Non-Profit Institution 

Adjusted 

Appr.Act 


Roll Overs 

Total 

Available 

Actual 

Transfer 

% of 

Avail. funds 

Transf. 

Final 

Appr. Act 

R’000 R’000 R’000 R’000 R’000 % R’000 

Transfers 

Amathole 3,000 3,000 3,000 100 2,000 

Cacadu 3,000 3,000 3,000 100 2,000 

Alfred Nzo 5,250 5,250 5,250 100 3,500 

Ukhahlamba 5,250 5,250 5,250 100 3,500 

Chris Hani 5,250 5,250 5,250 100 3,500 

OR Thambo 5,250 5,250 5,250 100 3,500 

Nelson Mandela 3,000 3,000 3,000 100 2,000 

National Business Initiative 4,000 4,000 4,000 100 – 

34,000 34,000 34,000 20,000 

Subsidies 

Total 34,000 34,000 34,000 100 20,000 

Household 

ANNEXURE 1L 

Statement of Transfers/Subsidies to Households 

Adjusted 

Appr.Act 


Roll Overs 

Adjustments 

Adjustments 

Total 

Available 

Actual 

Transfer 

% of 

Avail. funds 

Transf. 

Final 

Appr. Act 

R’000 R’000 R’000 R’000 R’000 % R’000 

RSCL 73 

73 

ANNEXURE 1M 

Statement of Gifts, Donations and Sponsorships Received 

Name of Organisation Nature of Gift, Donation or Sponsorship 2007/08 2006/07 

R’000 R’000 

Received in Cash 

Intengu Communications Provincial Growth and Development summit – 757 

Subtotal – 757 

Total – 757 

161

ANNEXURE 1O 

Statement of Gifts, Donations and Sponsorships made and Remmissions, Refunds 

and Payments made as an act of Grace for the year ended 31 March 2008 

Nature of Gift, Donation or Sponsorship 2007/08 2006/07 

(Group major categories but list material items including name of organisation) R’000 R’000 

Paid in cash 

Society for conservation 1,000 – 

South African Automotive Week 4,000 – 

South African Rugby Institute/Alicedale Rugby Academy 1,000 – 

Eastern Cape Tourism Board – Madiba Action 500 

Subtotal 6,500 – 

Total 6,500 – 

ANNEXURE 2A 

Statement of investments in and amounts owing by/to 

national/provincial public entities as at 31 March 2008 

Name 

of Public 

Entity 

State Entity’s 

PFMA 

Schedule 

type (state 

year end 

if not 31 

March) 

% 

Held 

07/08 

% 

Held 

06/07 

Number of shares 

held 

Cost of investment 

Net Asset value 

of investment 

Profit/(Loss) for 

the year 

Losses 

guaranteed 

R’000 R’000 R’000 

‘07/08 ‘06/07 ‘07/08 ‘06/07 ‘07/08 ‘06/07 ‘07/08 ‘06/07 Y/N 

Nat./Prov. 

Publ. Entity 

ECDC Schedule 3D 100 100 270,870 239,373 270,870 239,373 

Subtotal 270,870 239,373 270,870 239,373 

Other 

Total 270,870 239,373 270,870 239,373 - - - - 

162

ANNEXURE 3A 

Statement of Financial Guarantees Issued as at 31 March 2008 – Local 

Guarantor 

institution/Guarantee in 

respect of 

Orig. 

guaran. 

capital 

amount 

Opening 

balance 

1 April 

2007 

Guaran. 

draw 

downs 

during 

the 

year 

Guaran. 

repayments/ 

cancelled/ 

reduced/ 

released 

during 

the year 

Revaluations 

Closing 

balance 

31 March 


Guaran. 

interest 

for year 

ended 31 

March 


Realised 

losses not 

recoverable 

i.e. 

claims 

paid out 

R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 

Motor vehicles 

Housing 

Standard Bank 103 95 11 187 

Ned Bank Ltd - 120 - 120 

FirstRand Bank 16 218 - 234 

Ned Bank(INC B ) 13 - - 13 

ABSA 153 317 20 450 

Unique Finance 6 - - 6 

Peoples Bank 114 15 45 84 

FNB – Former SA 35 7 - 42 

Old Mutual(NedB/P) 123 32 - 155 

Total 563 804 76 1,291 

*Note: Opening balances of the Housing Guarantees have been re-classified 

ANNEXURE 3B 

Statement of contingent liabilities as at 31 March 2008 

Nature of Liability 

Opening Liabilities incurred Liabilities paid/ Liabilities recoverable 

Closing 

(Provide 

Balance 

during the year cancelled/reduced 

Balance 

during the year details hereunder) 

01/04/2007 

31/03/2008 

R’000 R’000 R’000 R’000 R’000 

Claims against the department 

Pending court cases 2,533 4,476 7,000 

Department of Justice 50 50 

Department of Health 11 11 

Department of Foreign Affairs 44 44 

South African Police Services 2 2 

Department of Provincial Treasury 99 99 

Total 2,533 4,673 - - 7,206 

163

ANNEXURE 4 

Inter-Government Receivables 

Government Entity 

Confirmed balance outstanding 

Unconfirmed balance 

outstanding 

31/03/2008 31/03/2007 31/03/2008 31/03/2007 31/03/2008 31/03/2007 

R’000 R’000 R’000 R’000 R’000 R’000 

Department 

Provincial Legislature 7 – 7 

TOTAL 

– – – 7 – 7 

Other Government Entities 

Eastern Cape Parks Board 6,740 – 6,740 

– – – 6,740 – 6,740 

TOTAL – – – 6,747 – 6,747 

ANNEXURE 5 

Inter-Government Payables 

Government Entity 

Confirmed balance outstanding 

Unconfirmed balance 

outstanding 

31/03/2008 31/03/2007 31/03/2008 31/03/2007 31/03/2008 31/03/2007 

R’000 R’000 R’000 R’000 R’000 R’000 

Departments 

Current 

Provincial Treasury 31 – 31 

Dept of Environmental Affairs, Nat. 5 – 5 

Dept of Social Department 357 – 357 

Dept of Justice 41 – 41 

Subtotal 5 – 429 – 434 

Total 5 – 429 – 434 

TOTAL 

164

Part 4 

Human Resource Management 

165

4.1 AIM 

To render Human Resources Administration, Human Resources Development 

Organisational Development and Labour Relations Services to the Department. 

4.2 SERVICE DELIVERY 

4.2.1 MAIN SERVICES PROVIDED AND STANDARDS 

MAIN SERVICES ACTUAL CUSTOMERS POTENTIAL CUSTOMERS STANDARD 

OF SERVICE 

Provision of efficient 

HRM services in the 

department 

Implement sound 

labour relations 

between management 

and employees 

Implement wellness 

programmes(EAP,HIV/ 

AIDS,SHE) by providing 

care and support for 

affected and infected 

employees 

Ensure effective 

organizational 

development and 

efficiency services 

Improve performance 

of all staff in line 

with organisational 

objectives 

Line functionaries Job applicants Providing the right 

skilled employees at the 

right time 

Management and all 

employees 

All employees of the 

department 

Management and 

employees of the 

department 

All employees of the 

department 

Organised labour and 

sector councils 

Immediate family 

members and medical 

practitioners 

Organised labour 

None 

Effective and efficient 

management of 

discipline maintained 

Confidentiality and 

professionalismreferrals 

dealt with on 

time 

A functional 

organisational structure 

maintained 

Signed and validated 

performance 

plans,reviews and 

assessments conducted 

ACTUAL ACHIEVEMENT 

AGAINST STANDARDS 

Competent employees 

appointed 

Facilitation and advice 

provided 

All referrals attended to 

timeously 

Facilitated needs 

analysis and interviews 

from all programmes 

and staff 

100% signed 

performance plans, 

reviews done. 

4.2.2 CONSULTATION ARRANGEMENTS WITH CUSTOMERS 

TYPE OF ARRANGEMENT ACTUAL CUSTOMERS POTENTIAL CUSTOMERS ACTUAL ACHIEVEMENTS 

Meetings: information sharing 

sessions , reports 

Management and employees OTP,DPSA, PSC, PSCBC Reports submitted on time 

4.2.3 SERVICE DELIVERY ACCESS STRATEGY 

ACCESS STRATEGY 

Staff meetings and workshops on HR issues 

ACTUAL ACHIEVEMENTS 

Workshops and HR Sessions held 

166

4.2.4 SERVICE INFORMATION TOOL 

TYPES OF INFORMATION TOOL 

Employee files 

Persal System 

Vulindlela 

Intranet, e-mail and departmental website 


100% compliant 

100% information updated 

Quarterly updates 

High rate of utilisation for Departmental information 

4.2.5 COMPLAINTS MECHANISM 

COMPLAINTS MECHANISM 

Designated employees 

Negotiating Team 

Appeals Authority 

Local Employment Equity Consultative Forum 


Designated employees appointed in writting 

Labour-Management Forum established and functional 

Appeals authority appointed and functional 

Employment Equity Forum established and functional 

4.3 EXPENDITURE 

4.3.1 PERSONNEL COSTS BY PROGRAMME, 2007/08 

Programme 

Total Expenditure 

Personnel 

Expenditure 

Training Expenditure 

Professional 

and Special 

Services 

Personnel cost 

as % of total 

expenditure 

Average personnel 

cost per 

employee 

R’000 R’000 R’000 R’000 % R’000 

Programme 1 78,814 39,328 3,233 5,075 49.7 

Programme 2 127,137 12,021 410 9.5 

Programme 3 343,670 502 1,629 .1 

Programme 4 46,154 -1 

Programme 5 373 73 

Programme 6 33,646 27,126 210 80.6 

Programme 7 3,425 398 

Programme 8 102,372 1,000 

Programme 9 726 482 9 66.4 

Total 736,317 79,459 3,233 8,804 

*Note All training expenditure has been managed through programme 1: Administration, 

sub-programme Corporate Services 

167

4.3.2 PERSONNEL COSTS BY SALARY BANDS, 2007/08 

Salary bands 

Personnel 

Expenditure 

(R’000) 

% of total personnel 

cost 

Average personnel 

cost per 

employee 

R’000 % R’000 

Lower skilled (Levels 1-2) 7,133 9.3 70,624 

Skilled (Levels 3-5) 7,689 10 72,538 

Highly skilled production (Levels 6-8) 27,398 35.7 138,374 

Highly skilled supervision (Levels 9-12) 17,389 22.7 252,014 

Senior management (Levels 13-16) 10,248 13.4 445,565 

Contract (Levels 3-5) 10 0 

Contract (Levels 6-8) 262 0.3 262,000 

Contract (Levels 9-12) 1,043 1.4 347,667 

Contract (Levels 13-16) 930 1.2 310,000 

Abnormal Appointment 1,587 2.1 18,241 

TOTAL 73,689 96 124,685 

4.3.3 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE 

AND MEDICAL ASSISTANCE BY PROGRAMME, 2007/08 

Programme Salaries Overtime Home Owners Allowance Medical Assistance 

Amount 

(R’000) 

% of 

personnel 

cost 

Amount 

(R’000) 

% of 

personnel 

cost 

Amount 

(R’000) 

% of 

personnel 

cost 

Amount 

(R’000) 

% of 

personnel 

cost 

R’000 % R’000 % R’000 % R’000 % 

Programme 1 26,072 66.3 5 .01 1,334 3.4 1,891 4.8 

Programme 2 8,526 70.9 315 2.6 446 3.7 

Programme 3 345 68.7 43 8.6 5 1 

Programme 4 -1 100 

Programme 5 

Programme 6 15,633 57.6 540 2 1,155 4.3 

Programme 7 

Programme 8 

Programme 9 482 100 

Total 51,028 64.2 5 2,231 2.8 3,497 4.4 

168

4.3.4 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE 

AND MEDICAL ASSISTANCE BY SALARY BANDS, 2007/08 

Salary Bands Salaries Overtime Home Owners 

Allowance 

Medical Assistance 

Amount 

(R’000) 

% of 

personnel 

cost 

Amount 

(R’000) 

% of 

personnel 

cost 

Amount 

(R’000) 

% of 

personnel 

cost 

Amount 

(R’000) 

% of 

personnel 

cost 

R’000 % R’000 % R’000 % R’000 % 

Lower skilled (Levels 1-2) 5,081 69.3 374 5.1 562 7.7 

Skilled (Levels 3-5) 5,397 69.6 456 5.9 632 8.1 

Highly skilled Prod. (Levels 6-8) 2,0281 71.5 794 2.8 1,435 5.1 

Highly skilled Supervision 

(Levels 9-12) 

Senior management 

(Levels 13-16) 

12,332 66.9 243 1.3 556 3 

6,050 55.1 313 2.8 252 2.3 


Contract (Levels 6-8) 169 64.5 

Contract (Levels 9-12) 662 60.7 47 4.3 


Abnormal Appointment 10 0.6 

TOTAL 50,546 65.9 2,227 2.9 3,437 4.5 

4.4.1 EMPLOYMENT AND VACANCIES BY PROGRAMME, 31 March 2008 

PROGRAMME NO. OF POSTS NO. OF POSTS 

FILLED 

VACANCY RATE 

% 

NO. OF POSTS 

FILLED ADD. TO 

ESTAB. 

Pr1:administration, Permanent 305 217 28.9 43 

Pr2:policy plan res&infosys, Permanent 22 16 27.3 

Pr3:economic affairs, Permanent 84 56 33.3 1 

Pr4:environmental affairs, Permanent 778 195 74.9 1 

TOTAL 847 568 59.3 45 

169

4.4 EMPLOYMENT AND VACANCIES 

4.4.2 EMPLOYMENT AND VACANCIES BY SALARY BANDS, 31 March 2008 

SALARY BAND NO. OF POSTS NO. OF POSTS 

FILLED 

VACANCY RATE 

% 

NO. OF POSTS 


ESTAB. 

Lower skilled (Levels 1-2), Permanent 39 30 23.07 41 

Skilled (Levels 3-5), Permanent 155 150 3.22 

Highly skilled production (Levels 6-8), Permanent 450 245 45.55 

Highly skilled supervision (Levels 9-12), Permanent 163 121 25.30 1 

Senior management (Levels 13-16), Permanent 33 22 33.33 

Contract (Levels 6-8), Permanent 6 3 

Contract (Levels 9-12), Permanent 

Contract (Levels 13-16), Permanent 1 

TOTAL 847 568 59.3 45 

4.4.3 EMPLOYMENT AND VACANCIES 

BY CRITICAL OCCUPATION, 31 March 2008 

CRITICAL OCCUPATIONS NO. OF POSTS NO. OF POSTS 

FILLED 

VACANCY RATE 

% 

Administrative related 46 35 23.9 

NO. OF POSTS 


ESTAB. 

Agricul animal oceanogr. forestry & other scien 7 3 57.1 

Agriculture related 16 9 43.8 

Biochem. pharmacol. zoology & life scie.techni 128 21 83.6 10 

Bus and heavy vehicle drivers 1 1 

Cleaners in offices workshops hospitals etc. 116 19 83.6 

Client inform clerks(switchb recept inform clerks) 3 3 

Conservation labourers 133 53 60.2 

Farm hands and labourers 217 27 87.6 1 

Farming forestry advisors and farm managers 16 7 56.3 

Finance and economics related 11 8 27.3 

Financial and related professionals 12 11 8.3 

Financial clerks and credit controllers 32 20 37.5 

Food services aids and waiters 3 2 33.3 

Human resources & organisat developm & relate prof 15 7 53.3 

Human resources clerks 23 17 26.1 

Human resources related 2 2 

Identification experts 3 2 33.3 

170

CRITICAL OCCUPATIONS NO. OF POSTS NO. OF POSTS 

FILLED 

Language practitioners interpreters & other commun 1 1 

VACANCY RATE 

% 

NO. OF POSTS 


ESTAB. 

Library mail and related clerks 5 3 40 

Life sciences related 1 1 

Light vehicle drivers 2 2 

Logistical support personnel 2 2 

Material-recording and transport clerks 1 100 

Messengers porters and deliverers 1 1 

Motor vehicle drivers 1 1 

Nature conservation and oceanographical rel.techni 135 59 56.3 

Other administrat & related clerks and organisers 72 41 43.1 1 

Other administrative policy and related officers 29 21 27.6 

Other occupations 1 1 

Regulatory inspectors 10 5 50 

Secretaries & other keyboard operating clerks 85 57 32.9 1 

Security guards 18 15 16.7 

Security officers 4 3 25 

Senior managers 28 18 35.7 1 

Trade/industry advisers & other related profession 9 6 33.3 

TOTAL 847 568 59.3 41 

171

4.5 JOB EVALUATION 

4.5.1 JOB EVALUATION, 1 April 2007 to 31 March 2008 

Salary band 

No. of 

posts 

No. of Jobs 

Evaluated 

% of posts 

evaluated by 

salary bands 

Posts Upgraded 

Posts downgraded 

NO. 

% POSTS 

EVAL. 

NO.. 

% POSTS 

EVAL. 

Lower skilled (Levels 1-2) 39 

Skilled (Levels 3-5) 155 

Highly skilled production (Levels 6-8) 450 24 5.3 24 100 

Highly skilled supervision (Levels 9-12) 162 68 41.9 

Senior Management Service Band A 33 16 48 

Senior Management Service Band B 6 6 100 

Senior Management Service Band C 1 1 100 

Senior Management Service Band D 

Total 846 115 13.5 24 100 

4.5.2 PROFILE OF EMPLOYEES WHOSE SALARY POSITIONS WERE 

UPGRADED DUE TO THEIR POSTS BEING UPGRADED, 1 April 2007 to 31 March 2008 

BENEFICIARIES AFRICAN ASIAN COLOURED WHITE TOTAL 

Female 4 1 5 

Male 7 7 

Total 11 1 12 

Employees with a disability 

4.5.3 EMPLOYEES WHOSE SALARY LEVEL EXCEED GRADE 

DETERMINED BY JOB EVALUATION, 1 April 2007 to 31 March 2008 (in terms of PSR 1.V.C.3) 

OCCUPATION 

Total Number of Employees whose salaries exceeded the 

level determined by job evaluation in 2003/04 

Percentage of total employment 

NO. OF 

EMPLOYEES 

JOB EVAL. LEVEL REMUN. LEVEL REASON FOR 

DEV. 

N/A 

172

4.5.4 PROFILE OF EMPLOYEES WHOSE SALARY LEVEL EXCEEDED GRADE 

DETERMINED BY JOB EVALUATION, 1 April 2007 to 31 March 2008 (in terms of PSR 1.V.C.3) 

BENEFICIARIES AFRICAN ASIAN COLOURED WHITE TOTAL 

Female 

Male 

Total 

4.5.5 EMPLOYEES WITH DISABILITIES 

Total Number of Employees whose salaries exceeded the grades determined by job evaluation in 2003/ 04 

nil 

4.6 EMPLOYMENT CHANGES 

4.6.1 ANNUAL TURNOVER RATES BY SALARY BAND 

for the period 1 April 2007 to 31 March 2008 

Salary Band 

No. of employees 

per band as 

on 1 April 2004 

Appoint. and 

transfers into 

the Dept. 

Terminations 

and transfers 

out of the Dept. 

NO. NO. NO. 

Turnover rate 

Lower skilled (Levels 1-2), Permanent 102 252 65.6 

Skilled (Levels 3-5), Permanent 104 140 61.4 

Highly skilled production (Levels 6-8), Permanent 195 28 15.1 

Highly skilled supervision (Levels 9-12), Permanent 71 3 5.2 

Senior Management Service Band A, Permanent 18 2 15.4 

Senior Management Service Band B, Permanent 03 1 50 

Senior Management Service Band C, Permanent 1 0 0 

Other, Permanent 0 0 0 

Contract (Levels 6-8), Permanent 0 1 50 


Contract (Band B), Permanent 0 1 100 

Contract (Band C), Permanent 1 0 0 

Total 568 59.3 41 

173

4.6.2 ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION 

for the period 1 April 2007 to 31 March 2008 

Occupation 

No. of employees 

per band as 

on 1 April 2004 

Appoint. and 

transfers into 

the Dept. 

Terminations 

and transfers 

out of the Dept. 

Turnover rate 

NO. NO. NO. 

Administrative related 35 1 4 11.4 

Agricul animal oceanography forestry & other scien 12 4 33.3 

Agriculture related 4 3 0 

Building and other property caretakers 18 12 66.7 

Bus and heavy vehicle drivers 1 

Client inform clerks(switchb recept inform clerks) 7 


Farm hands and labourers 212 166 78.3 

Farming forestry advisors and farm managers 2 3 

Finance and economics related 9 2 2 22.2 

Financial and related professionals 9 

Financial clerks and credit controllers 19 2 10.5 

Food services aids and waiters 1 

Human resources & organisat developm & relate prof 6 3 2 33.3 

Human resources clerks 16 9 

Human resources related 2 1 

Language practitioners interpreters & other commun 1 

Library mail and related clerks 6 

Light vehicle drivers 3 

Logistical support personnel 2 

Material-recording and transport clerks 6 1 16.7 

Nature conservation and oceanographical rel.techni 61 13 17 27.9 

Other administrat & related clerks and organisers 46 4 12 26.1 

Other administrative policy and related officers 30 2 2 6.7 

Other occupations 64 1 19 29.7 

Rank: Unknown 1 

Regulatory inspectors 6 1 16.7 

Safety health and quality inspectors 1 

Secretaries & other keyboard operating clerks 37 18 12 32.4 

Security guards 7 0 1 14.3 

Senior managers 12 3 2 16.7 

Trade/industry advisers & other related profession 2 

Water plant and related operators 3 2 66.7 

TOTAL 847 568 59.3 41 

174

4.6.3 REASONS WHY STAFF ARE LEAVING THE DEPARTMENT 

TERMINATION TYPE NUMBER % OF TOTAL 

Death 3 

Resignation 14 

Expiry of contract - 

Dismissal – operational changes - 

Dismissal – misconduct 5 

Dismissal – inefficiency - 

Discharged due to ill-health - 

Retirement 2 

Transfers to other Public Service Departments 21 

Total 45 

Total number of employees who left as a % of the total employment 

Termination Type 

4.6.4 PROMOTIONS BY CRITICAL OCCUPATION 

Occupation 

Employees 

as at 1 April 


Promot. to 

another 

salary level 

Salary level 

promot. 

as a % of 

employees.. 

Progressions 

to another 

notch within 

a salary level 

Notch 

progressions 

as a % of 

employees 

NO. NO. % NO. % 

Administrative related 35 2 5.7 7 20 

Agricul animal oceanography forestry & other scien 12 3 25 

Agriculture related 4 3 75 0 

Building and other property caretakers 18 

Bus and heavy vehicle drivers 1 

Client inform clerks(switchb recept inform clerks) 7 5 71.4 


Farm hands and labourers 212 20 9.4 

Farming forestry advisors and farm managers 2 

Finance and economics related 9 1 11.1 3 33.3 

Financial and related professionals 9 1 11.1 

Financial clerks and credit controllers 19 3 15.8 7 36.8 

Food services aids and waiters 1 1 100 

Human resources & organisat developm & relate prof 6 1 16.7 1 16.7 

Human resources clerks 16 2 12.5 7 43.8 

Human resources related 2 1 50 1 50 

175

Occupation 

Employees 

as at 1 April 


Promot. to 

another 

salary level 

Salary level 

promot. 

as a % of 

employees.. 

Progressions 

to another 

notch within 


Notch 

progressions 

as a % of 

employees 

NO. NO. % NO. % 

Language practitioners interpreters & other commun 1 

Library mail and related clerks 6 1 16.7 3 50 

Light vehicle drivers 3 1 33.3 

Logistical support personnel 2 1 50 

Material-recording and transport clerks 6 1 16.7 2 33.3 

Nature conservation and oceanographical rel.techni 61 1 1.6 13 21.3 

Other administrat & related clerks and organisers 46 14 30.4 

Other administrative policy and related officers 30 5 16.7 

Other occupations 64 2 3.1 15 23.4 

Rank: Unknown 1 

Regulatory inspectors 6 2 33.3 

Safety health and quality inspectors 1 0 0 

Secretaries & other keyboard operating clerks 37 12 32.4 7 18.9 

Security guards 7 5 71.4 

Senior managers 12 1 8.3 

Trade/industry advisers & other related profession 2 

Water plant and related operators 3 1 33.3 

TOTAL 847 568 59.3 41 847 

4.6.5 PROMOTIONS BY SALARY BAND 

Occupation 

Employees 

as at 1 April 


Promot. to 

another salary 

level 

Salary level 

promot. as a 

% of employees 

Progres. to another 

notch in 


Notch 

progressions 

as a % of 

employees 

NO. NO. % NO. % 

Lower skilled (Levels 1-2), Permanent 384 38 9.9 

Skilled (Levels 3-5), Permanent 228 11 4.8 37 16.2 

Highly skilled production (Levels 6-8), Permanent 185 9 4.9 51 27.6 

Highly skilled supervision (Levels 9-12), Permanent 58 6 10.3 11 19 

Senior management (Levels 13-16), Permanent 16 4 25 

Other, Permanent 1 

Contract (Levels 6-8), Permanent 2 


Contract (Levels 13-16), Permanent 2 0 0 0 0 

TOTAL 847 568 59.3 41 

176

4.7 EMPLOYMENT EQUITY 

4.7.1 TOTAL NUMBER OF EMPLOYEES 

(including employees with disabilities) in each of the following occupational categories as on 31 March 2008 

Occupational categories (SASCO) Male Female Total 

AFRICAN COLOURED INDIAN WHITE AFRICAN COLOURED INDIAN WHITE 

Legislators, senior officials 

and managers 

9 9 1 8 8 

Professionals 82 1 83 14 78 1 1 80 

Clerks 42 42 89 3 92 

Service and sales workers 6 6 3 3 

Plant and machine operators and 

assemblers 

5 5 

Elementary occupations 73 73 5 60 3 63 

Other 2 2 3 3 

TOTAL 219 1 220 20 241 7 1 249 

4.7.2 TOTAL NUMBER OF EMPLOYEES 

(including employees with disabilities) in each of the following occupational bands as on 31 March 2008 

Occupational Bands Male Female Total 


Top Management 1 1 

Senior Management 9 9 3 10 10 

Professionally qualified and 

experienced specialists and midmanagement 

Skilled technical and academically 

qualified workers, junior 

management, supervisors, foremen 

Semi-skilled and discretionary 

decision making 

Unskilled and defined decision 

making 

33 1 34 7 23 1 24 

78 78 9 94 4 0 98 

33 33 68 3 0 71 

63 63 42 0 42 

Contract (Senior Management) 1 1 1 1 0 1 

Contract (Professionally qualified) 1 1 2 0 2 

Contract (Skilled technical) 1 0 1 

TOTAL 219 1 220 20 241 7 1 249 

177

4.7.3 RECRUITMENT FOR THE PERIOD 1 April 2007 to 31 March 2008 




Senior Management 2 2 5 9 





management, supervisors, foreman 

and superintendents 



4 1 1 4 1 11 

15 5 25 6 51 

44 1 49 1 95 

Contract (Top Management) 

Contract (Professional) 1 3 4 

Total 67 1 9 86 8 171 

Employees with disabilities 

4.7.4 PROMOTIONS FOR THE PERIOD 1 April 2007 to 31 March 2008 




Senior Management 2 2 5 1 9 


experienced specialists and 

midmanagement 





Semiskilled and discretionary 



making 

4 1 1 2 8 

40 

15 2 13 30 

22 1 19 42 

Contract (Professional) 1 1 

Total 56 3 1 7 52 2 1 6 128 

178

4.7.5 TERMINATIONS FOR THE PERIOD 1 April 2007 to 31 March 2008 



Top Management 1 1 2 

Senior Management 1 1 2 










making 

8 5 3 16 34 

1 1 2 

5 1 6 12 

Contract (Professional) 

Total 15 7 3 26 52 

4.7.6 DISCIPLINARY ACTION FOR THE PERIOD 1 April 2007 to 31 March 2008 

Disciplinary action 

Male Female Total 


Final written warning and 

counselling 

x 

One month suspension without pay 

and final written warning 

x 

Dismissal 

x 

Dismissal 

Dismissal 

Dismissal 

x 

x 

x 

One month suspension without pay 

x 

Final written and leave without pay 

x 

179

4.7.7 SKILLS DEVELOPMENT FOR THE PERIOD 1 April 2007 to 31 March 2008 

Occupational Categories Male Female Total 


Legislators, senior officials and 

managers 

23 1 7 47 2 80 

Professionals 20 1 6 16 6 51 

Technicians and associate 

professionals 

Clerks 37 82 3 6 128 

Service and sales workers 

Skilled agriculture and fishery 

workers 

Craft and related trades workers 

Plant and machine operators and 

assemblers 

Elementary occupations 22 15 37 

Total 102 2 13 160 3 14 296 

Employees with disabilities 1 1 

4.8 PERFORMANCE REWARDS 

4.8.1 PERFORMANCE REWARDS BY RACE, GENDER, AND DISABILITY, 

1 April 2007 to 31 March 2008 

Beneficiary Profile 

Cost 

NO. BENEF. 

TOTAL NO.OF 

EMPLOYEES 

% OF TOTAL 

WITHIN GROUP 

COST (R’000) 

AVERAGE COST 

PER EMPLOYEE 

African, Female 20 219 9.1 56 2,822 

African, Male 11 214 5.1 42 3,776 

Asian, Female 2 

Coloured, Female 1 8 12.5 3 3,309 

Coloured, Male 2 

White, Female 16 

White, Male 23 

TOTAL 32 484 6.6 101 9,907 

180

4.8.2 PERFORMANCE REWARDS BY SALARY BANDS FOR PERSONNEL 

BELOW SENIOR MANAGEMENT SERVICE, 1 April 2007 to 31 March 2008 

Salary Bands Beneficiary Profile Cost 

NO. BENEF. TOTAL NO.OF 

EMPLOYEES 

% OF TOTAL 

WITHIN GROUP 

COST 

(R’000) 

AVERAGE COST 

PER EMPLOYEE 

Lower skilled (Levels 1-2) 10 128 7.8 20 2,000 

Skilled (Levels 3-5) 10 102 9.8 26 2,600 

Highly skilled production (Levels 6-8) 10 176 5.7 41 4,100 

Highly skilled supervision (Levels 9-12) 2 58 3.4 14 7,000 

Contract (Levels 6-8) 2 

Contract (Levels 9-12) 3 

TOTAL 32 469 6.8 101 15,700 

4.8.3 PERFORMANCE REWARDS BY CRITICAL OCCUPATIONS, 

1 April 2007 to 31 March 2008 

Critial Occupation Beneficiary Profile Cost 

NO. BENEF. 

TOTAL NO.OF 

EMPLOYEES 

% OF TOTAL 

WITHIN GROUP 

COST 

(R’000) 

AVERAGE COST 

PER EMPLOYEE 

TOTAL 

4.8.4 PERFORMANCE RELATED REWARDS (CASH BONUS), 

BY SALARY BAND, FOR SENIOR MANAGEMENT SERVICE 

Salary Bands Beneficiary Profile Cost 

NO. BENEF. 

TOTAL NO.OF 

EMPLOYEES 

% OF TOTAL 

WITHIN GROUP 

COST 

(R’000) 

AVERAGE COST 

PER EMPLOYEE 

TOTAL COST AS 

% OF PERSON. 

EXPEND. 

Band A 19 

Band B 5 

Band C 1 

TOTAL 25 

181

4.9 FOREIGN WORKERS 

4.9.1 FOREIGN WORKERS BY SALARY BAND, 1 April 2007 to 31 March 2008 

Salary Band 1 April 2007 31 March 2008 Change 

NO. % OF TOTAL NO. % OF TOTAL NO. % CHANGE 

Lower skilled (Levels 1-2) – – – – – – 

Skilled (Levels 3-5) – – – – – – 

Highly skilled production (Levels 6-8) – – – – – – 

Highly skilled supervision (Levels 9-12) – – – – – – 

Senior management (Levels 13-16) – – – – – – 

Total – – – – – – 

4.9.2 FOREIGN WORKER BY MAJOR OCCUPATION, 1 April 2007 to 31 March 

Major Occupation 1 April 2007 31 March 2008 Change 

NO. % OF TOTAL NO. % OF TOTAL NO. % CHANGE 

Total – – – – – – 

4.10 LEAVE UTILISATION FOR THE PERIOD 

1 JANUARY 2007 TO 31 DECEMBER 2007 

4.10.1 SICK LEAVE, 1 JANUARY 2007 TO 31 DECEMBER 2007 

SALARY BAND 

TOTAL 

DAYS 

% DAYS WITH 

MEDIC. CERT. 

NO. OF 

EMPLOYEES 

USING SICK 

LEAVE 

% OF TOTAL 

EMPL. USING 

SICK LEAVE 

AVE. DAYS PER 

EMPLOYEE 

ESTIMATED COST 

(R’000) 

Lower skilled (Levels 1-2) 164 85.4 36 19.9 5 29 

Skilled (Levels 3-5) 192 79.7 48 26.5 4 39 

Highly skilled production 

(Levels 6-8) 

Highly skilled supervision 

(Levels9-12) 



273 82.8 70 38.7 4 123 

94 86.2 24 13.3 4 80 

6 50 2 1.1 3 13 

3 100 1 0.6 3 6 

Total 732 82.8 181 100 4 290 

182

4.10.2 DISABILITY LEAVE (temporary and permanent), 1 January 2007 to 31 December 2007 

SALARY BAND 

TOTAL 

DAYS 

% DAYS WITH 

MEDIC. CERT. 

NO. OF 

EMPLOYEES 

USING SICK 

LEAVE 

% OF TOTAL 

EMPL. USING 

SICK LEAVE 

AVE. DAYS PER 

EMPLOYEE 

ESTIMATED COST 

(R’000) 

Lower skilled (Levels 1-2) 3 – – – – – 

Skilled (Levels 3-5) 5 – – – – – 

Highly skilled production 

(Levels 6-8) 

Highly skilled supervision 

(Levels 9-12) 



9 – – – – – 

3 – – – – – 

- – – – – – 

Total 20 – – – – – 

4.10.3 ANNUAL LEAVE, 1 January 2007 to 31 December 2007 

SALARY BANDS TOTAL DAYS TAKEN AVE.PER EMPLOYEE 

Lower skilled (Levels 1-2) 610 9 

Skilled Levels 3-5) 736 9 

Highly skilled production (Levels 6-8) 1436.16 8 

Highly skilled supervision(Levels 9-12) 525 8 

Senior management (Levels 13-16) 81 5 

Total 3388.16 8 

4.10.4 CAPPED LEAVE, 1 January 2007 to 31 December 2007 

SALARY BANDS 

TOTAL DAYS OF CAPPED 

LEAVE TAKEN 

AVE. NO. OF DAYS TAKEN 

PER EMPLOYEE 

AVE. CAPPED LEAVE PER EM- 

PLOYEE AS AT 31.12.2007 

Lower skilled (Levels 1-2) 322 10 87 

Skilled Levels 3-5) 122 8 121 

Highly skilled production (Levels 6-8) 252 9 107 

Highly skilled supervision(Levels 9-12) 43 8 105 

Senior management (Levels 13-16) 

Total 739 9 103 

183

4.10.5 LEAVE PAYOUTS for the period 1 April 2007 to 31 March 2008 

The following table summarises payments made to employees as a result of leave that 

was not taken. 

REASON 

TOTAL AMOUNT 

(R’000) 

NO. OF EMPLOYEES AVE. PAYMENT PER 

EMPLOYEE 

Leave payout for 2007/08 due to non-utilisation of leave 

for the previous cycle 

Capped leave payouts on termination of service for 


739 9 103 

Current leave payout on termination of service for 2007/08 

Total 739 9 103 

4.11 HIV AND AIDS & HEALTH PROMOTION PROGRAMMES 

4.11.1 STEPS TAKEN TO REDUCE THE RISK OF OCCUPATIONAL EXPOSURE 

UNITS/CATEGORIES OF EMPLOYEES IDENTIFIED TO BE AT HIGH RISK OF CONTRACTING HIV & 

RELATED DISEASES (IF ANY) 

KEY STEPS TAKEN TO REDUCE THE 

RISK 

4.11.2 DETAILS OF HEALTH PROMOTION AND 

HIV & AIDS PROGRAMMES (tick the applicable boxes and provide the required information) 

QUESTION Y N DETAILS, IF YES 

1. Has the department designated a member of the SMS to implement the 

provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 

2001? If so, provide her/his name and position. 

2. Does the department have a dedicated unit or has it designated specific staff 

members to promote the health and well being of your employees? If so, indicate 

the number of employees who are involved in this task and the annual budget 

that is available for this purpose. 

3. Has the department introduced an Employee Assistance or Health Promotion 

Programme for your employees? If so, indicate the key elements/services of this 

Programme. 

4. Has the department established (a) committee(s) as contemplated in Part VI 

E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide 

the names of the members of the committee and the stakeholder(s) that they 

represent. 

5. Has the department reviewed its employment policies and practices to ensure 

that these do not unfairly discriminate against employees on the basis of their 

HIV status? If so, list the employment policies/practices so reviewed. 

X 

X 

X 

X 

x 

Senior Manager : HRM 

Mrs N.Qamata 

The programme is driven from 

Head Office where three personnel 

is employed full-time. In the 

regions the fuction is an add on to 

the HR Practitioners 

EAP,HIV/AIDS, SAFETY AND HEALTH 

ENVIRONMENT (SHE) 

Partly. Committees are a loose 

structure which consists of EW role 

players that were elected and no 

formal structure 

Recruitment Poilcy 

184

QUESTION Y N DETAILS, IF YES 

6. Has the department introduced measures to protect HIV-positive employees 

or those perceived to be HIV-positive from discrimination? If so, list the key 

elements of these measures. 

7. Does the department encourage its employees to undergo Voluntary Counselling 

and Testing? If so, list the results that you have you achieved. 

8. Has the department developed measures/indicators to monitor & evaluate the 

impact of its health promotion programme? If so, list these measures/indicators. 

x 

x 

We have not systematically 

captured and kept statistics after 

tests 

No impact assessment is in place 

4.12 LABOUR RELATIONS 

The following collective agreements were entered into with trade unions within the department. 

4.12.1 COLLECTIVE AGREEMENTS, 1 April 2007 to 31 March 2008 

SUBJECT MATTER 

DATE 

N/A – 

If there were no agreements, then use the following table: 

Total collective agreements 

None 

The following table summarises the outcome of disciplinary hearings conducted within 

the department for the year under review. 

4.12.5 MISCONDUCT AND DISCIPLINARY HEARINGS FINALISED 

OUTCOMES OF DISCIPLINARY HEARINGS NO. % OF TOTAL 

Correctional counselling 1 8 

Verbal warning 

Written warning 

Final written warning 4 31 

Suspended without pay 2 12 

Fine 

Demotion 

Dismissal 4 31 

Not guilty 2 15 

Case withdrawn 0 0 

Total 13 100 

185

If there were no disciplinary hearings, then use the following table: 

Disciplinary hearings – 2007/08 

None 

4.12.3 TYPES OF MISCONDUCT 

ADDRESSED AT DISCIPLINARY HEARINGS 

TYPE OF MISCONDUCT NO. % OF TOTAL 

Drunk on duty 

Damage to government vehicles 

Unacceptable conduct 8 73 

Misappropriation of funds 

Theft of state property 

Misuse of government vehicle 2 18 

Unauthorised use of government vehicle 

Fraud 

Misuse of state petrol 

Misuse of state telephone 

Unauthorised keeping of personal firearm in the state premises 

Unauthorised purchase/requisition of stock 

Fighting at work 1 9 

Sexual harrassment 

Total 11 100 

4.12.4 GRIEVANCES LODGED for the period 1 April 2007 to 31 March 2008 

NO. 

% OF TOTAL 

Number of grievances resolved 13 76.5 

Number of grievances not resolved 4 23.5 

Total number of grievances lodged 17 100.0 

4.12.5 DISPUTES LODGED WITH COUNCILS for the period 1 April 2004 to 31 March 2005 

NO. 

% OF TOTAL 

Number of disputes upheld 1 12.5 

Number of disputes dismissed 7 87.5 

Total number of disputes lodged 8 100.0 

186

4.12.6 STRIKE ACTIONS for the period 1 April 2007 to 31 March 2008 

Total number of person working days lost – 

Total cost (R’000) of working days lost – 

Amount (R’000) recovered as a result of no work no pay – 

4.12.7 Precautionary suspensions for the period 1 April 2004 to 31 March 2005 

Number of people suspended 3 

Number of people whose suspension exceeded 30 days 

Average number of days suspended 30 

Cost (R’000) of suspensions 

4.13 SKILLS DEVELOPMENT 

4.13.1 TRAINING NEEDS IDENTIFIED 1 April 2007 to 31 March 2008 

Occupational Categories Gender No. of 

empl. as at 

1.04.2007 

Training needs identified at start of reporting period 

LEARNER- 

SHIPS 

SKILLS PROGR. & OTHER 

SHORT COURSES 

OTHER FORMS 

OF TRAINING 

Legislators, senior officials & managers Female 38 38 

Male 39 39 

Professionals Female 42 42 

Male 40 40 

TOTAL 

Technicians and associate professionals 

Female 

Male 

Clerks Female 45 45 

Male 81 81 


Female 

Male 

Skilled agriculture and fishery workers 

Female 

Male 


Female 

Male 

187


empl. as at 



LEARNER- 

SHIPS 


SHORT COURSES 

OTHER FORMS 

OF TRAINING 

TOTAL 

Plant, machine operators & assemblers 

Female 

Male 

Elementary occupations Female 24 24 

Male 25 25 

Sub Total Female 149 149 

Male 185 185 

Total 334 334 

4.13.2 TRAINING PROVIDED 1 APRIL 2004 TO 31 MARCH 2005 


empl. as at 



Legislators, senior officials and 

managers 

LEARNER- 

SHIPS 


SHORT COURSES 

OTHER FORMS 

OF TRAINING 

Female 17 17 

Male 25 25 

TOTAL 

Professionals Female 26 26 

Male 21 21 

Technicians and associate professionals 

Female 

Male 

Clerks Female 139 139 

Male 75 75 


Female 

Male 

Skilled agriculture and fishery workers 

Female 

Male 


Female 

Male 

Plant, machine operators & assemblers 

Female 

Male 

Elementary occupations Female 25 25 

Male 29 29 

Sub Total Female 207 207 

Male 150 150 

Total 357 357 

188

4.14 INJURY ON DUTY 

4.14.1 INJURY ON DUTY, 1 April 2007 to 31 March 2008 

NATURE OF INJURY ON DUTY NO. % OF TOTAL 

Required basic medical attention only – – 

Temporary Total Disablement – – 

Permanent Disablement – – 

Fatal – – 

Total – – 

4.15 UTILISATION OF CONSULTANTS 

4.15.1 REPORT ON CONSULTANT 

APPOINTMENTS USING APPROPRIATED FUNDS 

PROJECT TITLE 

TOTAL NUMBER OF CONSULTANTS 

THAT WORKED ON THE PROJECT 

DURATION: 

CONTRACT VALUE IN 

WORK DAYS 

RAND 

– – 

– – 

TOTAL NUMBER OF 

PROJECTS 

TOTAL INDIVIDUAL CONSULTANTS 

TOTAL DURATION: TOTAL CONTRACT 

WORK DAYS 

VALUE IN RAND 

– – 

– – 

4.15.2 ANALYSIS OF CONSULTANT APPOINTMENTS 

using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) 

PROJECT TITLE 

PERCENTAGE OWNERSHIP BY 

HDI GROUPS 

PERCENTAGE MANAGEMENT 

BY HDI GROUPS 

NUMBER OF CONSULTANTS FROM HDI 

GROUPS THAT WORK ON THE PROJECT 

– 

– 

189

4.15.3 REPORT ON CONSULTANT 

APPOINTMENTS USING DONOR FUNDS 

PROJECT TITLE 

TOTAL NUMBER OF CONSULTANTS 

THAT WORKED ON THE PROJECT 

DURATION: 

CONTRACT VALUE IN 

WORK DAYS 

RAND 

– – 

– – 

TOTAL NUMBER OF 

PROJECTS 

TOTAL INDIVIDUAL CONSULTANTS 

TOTAL DURATION: TOTAL CONTRACT 

WORK DAYS 

VALUE IN RAND 

– – 

– – 

4.15.4 ANALYSIS OF CONSULTANT APPOINTMENTS 

using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) 

PROJECT TITLE 

PERCENTAGE OWNERSHIP BY 

HDI GROUPS 

PERCENTAGE MANAGEMENT 

BY HDI GROUPS 

NUMBER OF CONSULTANTS FROM HDI 

GROUPS THAT WORK ON THE PROJECT 

– 

– 

190

Acronyms 

AFS Annual Financial Statements ECTB Eastern Cape Tourism Board 

AIDC Automotive Industry Development Centre EDMS Electronic Document Management System 

APP Annual Performance Plan EG & I CLUSTER Economic Growth & Infrastrucutre Cluster 

AQA Air Quality Act EL East London 

AQM Air Quality Management EMI Environmental Management Inspectors 

AQMA Air Quality Management Act EU-LED European Union - Local Economic 

Development 

ASGI-SA 

Accelerated Shared Growth Initiative of 

South Africa 

GDS 

Growth & Development Summit 

BAS Basic Accounting System GEF Global Environmental Facility 

BBBEE Broad Based Black Economic Empowerment GIS Geographic Information System 

BPO Business Process Outsourcing GRAP Genereally Accepted Accounting Practice 

BRAG Business Regulation & Governance HIPPs High Impact Priority Projects 

CDC Coega Development Corporation HOD Head Of Department 

CDM Chris Hani District Municipality HRD Human Resource Development 

CFO Chief Financial Officer IDP Integrated Development Plan 

CITES 

Convention on International Trade & 

Endangered Species of Wild Flora & Fauna 

IDZ 

Industrial Development Zone 

CSIR Council of Scientific & Industrial Research IEM Integrated Environmental Management 

CZM Coastal Zone Management IGR Inter Governmental Relations 

DEAT Department of Economic Affairs & Tourism IT Information Technology 

DEDEA 

DGITO 

DLGTA 

DPLG 

Department of Economic Development & 


Departmental Government Information 

Officer 

Department of Local Government 

&Traditional Affairs 

Department of Provincial & Local 

Government 

IWMP 

IYM 

KPIs 

KZN 

Integrated Waste Management Plan 

In-Year Monitoring 

Key Performance Indicators 

Kwa-Zulu Natal 

DPW Department of Public Works M&E Monitoring & Evaluation 

DTI Department of Trade & Industry MEC Member of the Executive Council 

DWAF Department of Water Affairs & Forestry MINMEC Minister & Member of Executive Council 

EC Eastern Cape MINTEC Ministerial Inter-Provincial Technical 

Committee 

ECA Environmental Conservation Act MOU Memorandum Of Understanding 

ECDC Eastern Cape Development Corporation MS EA Microsoft Enterprise Agreement 

ECGBB Eastern Cape Gambling & Betting Board MSP Master Systems Plan 

ECL ACT Eastern Cape Liquor Act MSP Municipal Support Programme 

ECLB Eastern Cape Liquor Board MTREF Medium Term Revenue & Expenditure 

Framework 

ECPB Eastern Cape Parks Board NCA National Credit Act 

ECSECC 

Eastern Cape Socio Economic Consultative 

Council 

NCR 

National Credit Regulator 

191

NEAS 

National Environmental Authorization 

System 

SANBI 

South African National Biodiversity Institute 

NEMA National Environmental Management Act SAPS South Arican Police Service 

NMBMM 

Nelson Mandela Bay Metropolitan 

Municipality 

SCM 


NPA National Prosecuting Authority SCOA Standard Chart of Accounts 

NSDP National Spatial Development Plan SCOPA Standing Committee on Public Accounts 

OP Operational Plan SEA Strategic Environmental Assessment 

OTP Office of the Premier SEDA Small Eneterprise Development Agency 

PCC Provincial Co-ordinating Committee SIAS Shared Internal Audit Services 

PEDF Provincial Economic Development Forum SITA State Information Technology Agency 

PFMA Public Finance Management Act SLA Service Level Agreement 

PGDP Provincial Growth & Development Plan SMME Small, Medium & Macro Enterprises 

PGITOC 

Provincial Government Information 

Technology Council 

PIDS Provincial Industrial Development Strategy SP Strategic Plan 

PMDS 

Performance Management Development 

Systems 

SMS 

SPU 

Senior Management System 

Special Programme Unit 

PMS Performance Management Systems STATS – SA Statistics South Africa 

PPP Public Private Partnerships TID Trade & Indusrty Development 

PSR Public Service Regulation TIP Trade & Investment Promotion 

R&D Research & Development UFH University of Fort Hare 

RoD 

Record of Decision 

Notes 

192


Province of the Eastern Cape, South Africa 

www.deaet.ecprov.gov.za 

 

 

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