DIRCO 2014/15 ANNUAL REPORT Presentation to the
Description: DIRCO 201415 ANNUAL REPORT Presentation to the Portfolio Committee Ambassador: JM Matjila Director General Presentation Outline Background Programmes performance information Financial Position as at 31 March 2015 Conclusion 2 Some Key
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slide1. DIRCO 2014/15 ANNUAL REPORT
Presentation to the Portfolio Committee
Ambassador: JM Matjila
Director General<br>
slide2. Presentation Outline Background
Programmes performance information
Financial Position as at 31 March 2015
Conclusion 2<br>
slide3. Some Key Highlights African Agenda forms the backbone of our foreign policy objectives
Recorded many success in pursuit of regional peace and stability as well as regional integration regional peace initiatives such mediation in Lesotho
As Chair of the SADC Organ on Politics, Defence and Security Cooperation deepened democracy through supporting election observer missions in Malawi; Mozambique; Namibia: Botswana; Mauritius: Zambia and Lesotho
Supported work on the SADC Free Trade Agreement which influenced signing of the SADC-East Africa Community Market for Eastern and Southern Africa Tripartite Free Trade Agreement 3<br>
slide4. Some Key Highlights Used membership of AUPSC to the causes of poverty and unemployment as drivers of violence and terrorism.
Continued to manage our South-South relations in formations such as BRICS, IBSA, IORA and the G77+China to advance the African Agenda.
Chairing the G77+China has enabled South Africa to position itself as the voice of developing countries on critical development issues facing the global community
On the home front the Department has concluded its organisational review in order to streamline its work for the achievement of its strategic objectives 4<br>
slide5. Programmes performance information 5<br>
slide6. Programme 1: Administration 6<br>
slide7. Programme 1: Administration 7<br>
slide8. Programme 1: Administration 8<br>
slide9. Programme 2: International Relations 9<br>
slide10. Programme 2: International Relations 10<br>
slide11. Programme 2: International Relations 11<br>
slide12. Programme 3: International Cooperation 12<br>
slide13. Programme 3: International Cooperation 13<br>
slide14. Programme 3.2:Continental Cooperation 14<br>
slide15. Programme 3: South –South and North –South Cooperation 15<br>
slide16. 16 Programme 4 Sub-programme 4.1: Public Diplomacy<br>
slide17. Programme 4 Sub-programme 4.2: State Protocol 17<br>
slide18. FINANCIAL POSITION AS AT 31 MARCH 2015 18<br>
slide19. 19 APPROPRIATION STATEMENT<br>
slide20. 2014/15 APPROPRIATION STATEMENT 20<br>
slide21. 21 2014/15 Expenditure Outcome …continued<br>
slide22. 2014/15 APPROPRIATION STATEMENT 22<br>
slide23. 2014/15 Expenditure Analysis Virements:
Virement of funds amounting to R114, 6 million was shifted from programmes 1, 3 and 4 to defrayment of over expenditure in Programme 2 and Programme 5 due the depreciation of the Rand against major foreign currencies, thus increasing operational costs incurred in missions abroad as well as the assessed contribution within Programme 5 as a result of foreign exchange fluctuation.
The department could not request additional funding from National Treasury as the depreciation of the Rand was after the adjustment estimates were concluded 23<br>
slide24. 2014/15 Expenditure Analysis Programme 1: Administration
The expenditure for 2014/15 expenditure of R1.3 billion has increase as compared to the 2013/14 of R1.2 billion . This is as a result of payment for construction projects which were planned to paid in 2013/14 were only paid in 2014/15 due to unforeseeable delays with the capital projects.
Programme 2: International Relations
The expenditure for 2014/15 expenditure of R3,1 billion has increase as compared to the 2013/14 of R2,9 billion. This is due to the depreciation of the rand against other major currencies on expenditure to be incurred in foreign currency in missions abroad. 24<br>
slide25. 2014/15 Expenditure Analysis Programme 3: International Cooperation
The expenditure for 2014/15 of R485 million has increase as compared to the 2013/14 expenditure of R452 million. This is due to the depreciation of the rand against other major currencies on expenditure to be incurred in foreign currency in missions abroad.
Programme 4: Public Diplomacy and State Protocol
The expenditure for 2014/15 expenditure of R276 million has decrease as compared to the 2013/14 of R281 million. This was due to a once off expenditure in 2013/14 relating to the facilitation of the hosting of the 2014 Presidential Inauguration with regard to the protocol services provided to the invited Heads of State and Government. 25<br>
slide26. 2014/15 Expenditure Analysis Programme 5: International Transfers
The expenditure for 2014/15 expenditure of R863 million has decrease as compared to the 2013/14 of 978 million. This was due to the department containing cost in relations to voluntary transfer payments, which would have resulted in an unauthorised expenditure. 26<br>
slide27. ASSET MANAGEMENT 27<br>
slide28. PROCUREMENT MANAGEMENT 28<br>
slide29. EXPENDITURE MANAGEMENT 29<br>
slide30. REVENUE MANAGEMENT 30<br>
slide31. CONCLUSION The financial position of the department is healthy, however, the department remained exposed to Rand fluctuations as a result of that the department had to contain costs and defer some of the expenditure to avoid unauthorised expenditure.
The department will continue to engage National Treasury for a permanent or long term solution to assist the department to be able to perform as per the plans.
The department will continue to put more effort in addressing all audit issues – action plan has been developed and will be monitored by the office of the Chief Operating Officer. 31<br>
slide32. AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND ANNUAL REPORT 2014/15 Presentation to Portfolio Committee 14 October 2015<br>
slide33. Introduction I am pleased with the steady progress we are making in utilizing the ARF to meet policy and strategic objectives of our government.
The ARF has made significant strides in moving away from transfer payments to recipient countries towards ensuring that goods and services are procured locally.
This new approach has led to a significant decrease in disbursement due to strengthening of governance structures.
The Lesotho humanitarian project provided assistance to Basotho people while ensuring that there was a significant contribution to South African farmers. All commodities were procured locally and 40% of grain for production on maize meal was procured from small holder farmers.
South Africa continues to be at the forefront of promotion of democracy and good governance by participating in SADC Election observer missions. Observers were deployed for elections in Mozambique, Botswana, Namibia, Zambia and Mauritius. 33<br>
slide34. 34 ARF Annual Performance report 2014/15<br>
slide35. 35 ARF Annual Performance report 2014/15<br>
slide36. 36 ARF Annual Performance report 2014/15<br>
slide37. 37 ARF Financial report 2014/15<br>
slide38. ARF Financial report 2014/2015 2014/15 Approved projects:
(a) Humanitarian assistance to South Sudan R 15 000 000
(b) Drought relief in Namibia R 100 000 000
(c) Humanitarian assistance to Palestine R 11 200 000
(d) Emergency relief to Ebola disease R 32 500 000
(e) South Africa contribution to Lesotho peace
process R 20 000 000 38<br>
slide39. Governance structures 39<br>
slide40. Governance The fund is managed through the control of the DG of DIRCO.
The DG established a full time secretariat to monitor and evaluate projects, facilitate agreements and disbursements and provide secretarial services to Advisory Committee.
The Advisory Committee, through the Secretariat, regularized the relationship between Fund and department by means of Operational Framework.
The terms of reference for the Advisory committee and Secretariat were finalized and signed.
The risk and audit committees were established during the financial year. 40<br>
slide41. Governance The irregular expenditure incurred in the financial year was condoned by the Accounting Authority. It relates to projects that are long running with contracts that were irregular from previous periods.
We are addressing the challenge of procurement in remote areas where it is not possible to comply with SCM prescripts.
Finalization of agreements with recipient countries is an ongoing challenge which affects the disbursement of funds. 41<br>
slide42. SADPA/PFD bill The department is perusing efforts to review the legislative framework in order to consolidate international assistance provided by South African government.
The draft Partnership for Development Fund is planned to the tabled before parliament in the 2016/2017 financial year.
The objective of the bill is to support South Africa’s outgoing development cooperation policy by providing funding and technical support for development initiatives. 42<br>
slide43. 43 THANK YOU<br>
Presentation to the Portfolio Committee
Ambassador: JM Matjila
Director General<br>
slide2. Presentation Outline Background
Programmes performance information
Financial Position as at 31 March 2015
Conclusion 2<br>
slide3. Some Key Highlights African Agenda forms the backbone of our foreign policy objectives
Recorded many success in pursuit of regional peace and stability as well as regional integration regional peace initiatives such mediation in Lesotho
As Chair of the SADC Organ on Politics, Defence and Security Cooperation deepened democracy through supporting election observer missions in Malawi; Mozambique; Namibia: Botswana; Mauritius: Zambia and Lesotho
Supported work on the SADC Free Trade Agreement which influenced signing of the SADC-East Africa Community Market for Eastern and Southern Africa Tripartite Free Trade Agreement 3<br>
slide4. Some Key Highlights Used membership of AUPSC to the causes of poverty and unemployment as drivers of violence and terrorism.
Continued to manage our South-South relations in formations such as BRICS, IBSA, IORA and the G77+China to advance the African Agenda.
Chairing the G77+China has enabled South Africa to position itself as the voice of developing countries on critical development issues facing the global community
On the home front the Department has concluded its organisational review in order to streamline its work for the achievement of its strategic objectives 4<br>
slide5. Programmes performance information 5<br>
slide6. Programme 1: Administration 6<br>
slide7. Programme 1: Administration 7<br>
slide8. Programme 1: Administration 8<br>
slide9. Programme 2: International Relations 9<br>
slide10. Programme 2: International Relations 10<br>
slide11. Programme 2: International Relations 11<br>
slide12. Programme 3: International Cooperation 12<br>
slide13. Programme 3: International Cooperation 13<br>
slide14. Programme 3.2:Continental Cooperation 14<br>
slide15. Programme 3: South –South and North –South Cooperation 15<br>
slide16. 16 Programme 4 Sub-programme 4.1: Public Diplomacy<br>
slide17. Programme 4 Sub-programme 4.2: State Protocol 17<br>
slide18. FINANCIAL POSITION AS AT 31 MARCH 2015 18<br>
slide19. 19 APPROPRIATION STATEMENT<br>
slide20. 2014/15 APPROPRIATION STATEMENT 20<br>
slide21. 21 2014/15 Expenditure Outcome …continued<br>
slide22. 2014/15 APPROPRIATION STATEMENT 22<br>
slide23. 2014/15 Expenditure Analysis Virements:
Virement of funds amounting to R114, 6 million was shifted from programmes 1, 3 and 4 to defrayment of over expenditure in Programme 2 and Programme 5 due the depreciation of the Rand against major foreign currencies, thus increasing operational costs incurred in missions abroad as well as the assessed contribution within Programme 5 as a result of foreign exchange fluctuation.
The department could not request additional funding from National Treasury as the depreciation of the Rand was after the adjustment estimates were concluded 23<br>
slide24. 2014/15 Expenditure Analysis Programme 1: Administration
The expenditure for 2014/15 expenditure of R1.3 billion has increase as compared to the 2013/14 of R1.2 billion . This is as a result of payment for construction projects which were planned to paid in 2013/14 were only paid in 2014/15 due to unforeseeable delays with the capital projects.
Programme 2: International Relations
The expenditure for 2014/15 expenditure of R3,1 billion has increase as compared to the 2013/14 of R2,9 billion. This is due to the depreciation of the rand against other major currencies on expenditure to be incurred in foreign currency in missions abroad. 24<br>
slide25. 2014/15 Expenditure Analysis Programme 3: International Cooperation
The expenditure for 2014/15 of R485 million has increase as compared to the 2013/14 expenditure of R452 million. This is due to the depreciation of the rand against other major currencies on expenditure to be incurred in foreign currency in missions abroad.
Programme 4: Public Diplomacy and State Protocol
The expenditure for 2014/15 expenditure of R276 million has decrease as compared to the 2013/14 of R281 million. This was due to a once off expenditure in 2013/14 relating to the facilitation of the hosting of the 2014 Presidential Inauguration with regard to the protocol services provided to the invited Heads of State and Government. 25<br>
slide26. 2014/15 Expenditure Analysis Programme 5: International Transfers
The expenditure for 2014/15 expenditure of R863 million has decrease as compared to the 2013/14 of 978 million. This was due to the department containing cost in relations to voluntary transfer payments, which would have resulted in an unauthorised expenditure. 26<br>
slide27. ASSET MANAGEMENT 27<br>
slide28. PROCUREMENT MANAGEMENT 28<br>
slide29. EXPENDITURE MANAGEMENT 29<br>
slide30. REVENUE MANAGEMENT 30<br>
slide31. CONCLUSION The financial position of the department is healthy, however, the department remained exposed to Rand fluctuations as a result of that the department had to contain costs and defer some of the expenditure to avoid unauthorised expenditure.
The department will continue to engage National Treasury for a permanent or long term solution to assist the department to be able to perform as per the plans.
The department will continue to put more effort in addressing all audit issues – action plan has been developed and will be monitored by the office of the Chief Operating Officer. 31<br>
slide32. AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND ANNUAL REPORT 2014/15 Presentation to Portfolio Committee 14 October 2015<br>
slide33. Introduction I am pleased with the steady progress we are making in utilizing the ARF to meet policy and strategic objectives of our government.
The ARF has made significant strides in moving away from transfer payments to recipient countries towards ensuring that goods and services are procured locally.
This new approach has led to a significant decrease in disbursement due to strengthening of governance structures.
The Lesotho humanitarian project provided assistance to Basotho people while ensuring that there was a significant contribution to South African farmers. All commodities were procured locally and 40% of grain for production on maize meal was procured from small holder farmers.
South Africa continues to be at the forefront of promotion of democracy and good governance by participating in SADC Election observer missions. Observers were deployed for elections in Mozambique, Botswana, Namibia, Zambia and Mauritius. 33<br>
slide34. 34 ARF Annual Performance report 2014/15<br>
slide35. 35 ARF Annual Performance report 2014/15<br>
slide36. 36 ARF Annual Performance report 2014/15<br>
slide37. 37 ARF Financial report 2014/15<br>
slide38. ARF Financial report 2014/2015 2014/15 Approved projects:
(a) Humanitarian assistance to South Sudan R 15 000 000
(b) Drought relief in Namibia R 100 000 000
(c) Humanitarian assistance to Palestine R 11 200 000
(d) Emergency relief to Ebola disease R 32 500 000
(e) South Africa contribution to Lesotho peace
process R 20 000 000 38<br>
slide39. Governance structures 39<br>
slide40. Governance The fund is managed through the control of the DG of DIRCO.
The DG established a full time secretariat to monitor and evaluate projects, facilitate agreements and disbursements and provide secretarial services to Advisory Committee.
The Advisory Committee, through the Secretariat, regularized the relationship between Fund and department by means of Operational Framework.
The terms of reference for the Advisory committee and Secretariat were finalized and signed.
The risk and audit committees were established during the financial year. 40<br>
slide41. Governance The irregular expenditure incurred in the financial year was condoned by the Accounting Authority. It relates to projects that are long running with contracts that were irregular from previous periods.
We are addressing the challenge of procurement in remote areas where it is not possible to comply with SCM prescripts.
Finalization of agreements with recipient countries is an ongoing challenge which affects the disbursement of funds. 41<br>
slide42. SADPA/PFD bill The department is perusing efforts to review the legislative framework in order to consolidate international assistance provided by South African government.
The draft Partnership for Development Fund is planned to the tabled before parliament in the 2016/2017 financial year.
The objective of the bill is to support South Africa’s outgoing development cooperation policy by providing funding and technical support for development initiatives. 42<br>
slide43. 43 THANK YOU<br>