Department of Transport on its Annual Performance Plan

NCOP Economic and Business Development

07 June 2017
Chairperson: Mr M Rayi (ANC, Eastern Cape)
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Meeting Summary

The Department of Transport briefed the Committee on its strategic, annual performance plans and budget.

The briefing spoke to the revisions that the Department had made to its Strategic Plan 2015-2020. Members were given a breakdown on targets that had been revised as per the DoT’s Programmes ie Administration, Integrated Transport Planning, Road Transport, Civil Aviation, Maritime Transport and Public Transport.

Strategic Plan 2015-2020:

Programme 1: Administration

Due to the fact that government had capped expenditure on personnel the DoT could not maintain its Medium Term Strategic Framework (MTSF) target of having a vacancy rate of 10%.

Programme 2: Integrated Transport Planning

The MTSF target of having the Harrismith Hub Framework developed by March 2016 was not achieved as pertinent issues needed a political solution between the DoT and the Free State Province.

Programme 4: Road Transport

The MTSF target of inspecting Active Driving Licence Testing Centres (DLTCs) in line with the National Road Traffic Act, Act 93 of 1996 had been achieved.

Programme 5: Civil Aviation

The National Civil Aviation Policy had been submitted to cabinet by March 2016 as was planned. Programme 6: Maritime Transport

The target on having the Cabotage Policy for coastal, regional and continental waters submitted to cabinet by March 2016 was only partially achieved.

Programme 7: Public Transport

The targets of having the Rural Transport Strategy and the National Learner Transport Policy submitted to cabinet by March 2016 were achieved.

In respect of the Annual Performance Plan, the following was presented:

Programme 1: Administration

The planned annual target was to have nine community outreach programmes conducted on Gender, Disability, Youth and Children.

Programme 2: Integrated Transport Planning

The planned annual target was to have the final revised White Paper on the National Transport Policy submitted to cabinet by March 2018.

Programme 3: Rail Transport

The intention was to have the White Paper on the National Rail Policy submitted to cabinet by March 2018 and to have the National Rail Bill submitted to the Economic Sectors, Employment and Infrastructure Development (ESEID) Cluster. 

Programme 4: Road Transport

A planned annual target was to have the White Paper on Roads Policy submitted to the ESEID Forum for Director Generals (FOSAD) Cluster.

Programme 5: Civil Aviation

The plan was to have Draft Regulations for the Airports Company Amendment Act and Draft Regulations for the Air Traffic and Navigation Services (ATNS) Amendment Act developed.

Programme 6: Maritime Transport

Annual planned targets were to have the Maritime Transport Policy and the Merchant Shipping Bill submitted to cabinet by March 2018.

Programme 7: Public Transport

Planned annual targets were to have the Implementation Plan of the New Taxi Recapitalisation Programme and the Framework for the implementation of the Integrated Public Transport Turnaround Plan developed.

The Department reported that its budget is expected to increase at an average annual rate of 6.8 per cent in the period ahead, from R56.3 billion in 2016/17 to R68.6 billion in 2019/20. However, spending on goods and services is expected to decrease at an average annual rate of 1 per cent, from R751.8 million in 2016/17 to R729.1 million in 2019/20, due to reprioritisations to other transport spending priorities.

Members expressed disappointment that neither the Minister of Transport nor the Deputy Minister of Transport had made an effort to attend the meeting. Members were sensitive to the fact that cabinet meetings took place on Wednesday but felt that at least one of them could have made an effort to attend. Members asked why the South African National Taxi Council (SANTACO) received a grant from the DoT. Concern was raised about spillages that trucks made on roads. The DoT was asked what its plans were to regulate road freight. Members’ sentiments differed over the issue of Uber taxis as there were pros and cons to them entering the taxi market. The DoT was asked whether the Uber issue was receiving attention in its APP. The DoT also was asked to provide the Committee with the feasibility study that had been done on the Moloto Rail Corridor. Members also requested to see the cost benefit analysis on the Memorandum of Understanding with China CCC. Members were concerned that beneficiation was not taking place on major road infrastructure projects. How were local people to benefit? A further concern was that when bus contracts were being reviewed no provision for beneficiation was made. The DoT was asked when the Moloto Rail Project Plan was to kick off. Members did feel that provincial roads in SA needed to be reconstructed. There many accidents and fatalities due to poor condition of roads. Members were concerned about the huge delays in the completion of the logistics hub in Harrismith. The DoT was asked when corruption issues at the Public Rail Agency of SA (PRASA) were going to be dealt with. Members also asked when corruption around the issuing of illegal driving licences was going to be rooted out. The practise was going on for far too long. The DoT was asked to speak to the issue of the R5.19bn in kickbacks that had been paid to officials at Transnet by the Chinese. Members raised concern that there were taxi ranks that had been constructed but remained non-operational. One such example was in Bloemfontein. Members felt that taxpayers’ funds had been wasted. Members asked why the DoT had not given the Committee specifics on investigations into corruption. Members were concerned that figures on fruitless and irregular expenditures were increasing. What progress had been made on the Administrative Adjudication Road Traffic Offences (AARTO) Bill? Members asked what happened to PRASA’s Mr Collins Letsoalo’s R350 000 salary increase. Members also asked the DoT why it would take a year for it to come up with an anti-corruption strategy. It could be done much sooner. The DoT was asked to unpack its nine community outreach programmes. What was the DoT doing in each of the provinces? The DoT was asked to include persons with disabilities in its plans. Members noted that there were conflicting reports on whether delays at ports like Durban were decreasing or not. The DoT was asked to shed light on the matter. The Committee agreed that another meeting with the DoT, its Minister and its entities were needed as there were many issues that needed to be clarified. 

Meeting report

The Minister of Transport Mr Joe Maswanganyi and Deputy Minister of Transport Ms Lydia Chikunga extended apologies to the Committee as they were attending a cabinet meeting.

Briefing by Department of Transport (DoT) on its Strategic Plan (2015-2020) and Annual Performance Plan 2017/18
The delegation comprised of amongst others Mr Mathabatha Mokonyama, Acting Director General, Mr Collins Letsoalo, Chief Financial Officer, Mr Chris Hlabisa Deputy Director General: Roads, Mr Clement Manyungwana, Acting Deputy Director-General: Maritime Transport and Ms Khibi Manana, Acting Chief Operations Officer.

Mr Mokonyama undertook the briefing. He informed the Committee that the Department’s efforts were aligned with the National Development Plan, the Medium Term Strategic Framework (MTSF) and the State of the Nation Address (SONA) 2017.  The briefing spoke to the revisions that the DoT had made to its Strategic Plan 2015-2020. The good news was that most of the targets for the Strategic Plan had been achieved. Members were given a breakdown on targets that had been revised as per the DoT’s Programmes ie Administration, Integrated Transport Planning, Road Transport, Civil Aviation, Maritime Transport and Public Transport. Targets not achieved were also highlighted.

Strategic Plan 2015-2020:

Programme 1: Administration

Due to the fact that government had capped expenditure on personnel the DoT could not maintain its Medium Term Strategic Framework (MTSF) target of having a vacancy rate of 10%.

Programme 2: Integrated Transport Planning
The MTSF target of having the Harrismith Hub Framework developed by March 2016 was not achieved as pertinent issues needed a political solution between the DoT and the Free State Province.

Programme 4: Road Transport
The MTSF target of inspecting Active Driving Licence Testing Centres (DLTCs) in line with the National Road Traffic Act, Act 93 of 1996 had been achieved.

Programme 5: Civil Aviation
The National Civil Aviation Policy had been submitted to cabinet by March 2016 as was planned. The target of having the National Airports Development Plan submitted to cabinet by March 2016 was also achieved.

Programme 6: Maritime Transport
The MTSF target of having the African Maritime Charter submitted to Parliament by March 2016 was achieved. The target on having the Cabotage Policy for coastal, regional and continental waters submitted to cabinet by March 2016 was only partially achieved.

Programme 7: Public Transport
The targets of having the Rural Transport Strategy and the National Learner Transport Policy submitted to cabinet by March 2016 were achieved. The target of having the National Land Transport Amendment Bill submitted to parliament by March 2016 was also achieved.

The briefing continued with an overview of performance targets as set out in the Annual Performance Plan 2017/18. In total there were 37 targets divided amongst the DoT’s Programmes.

Annual Performance Plan 2017/18:
Programme 1: Administration

The planned annual target was to have nine community outreach programmes conducted on Gender, Disability, Youth and Children. Another target was to have a Human Resource Development Framework implemented.

Programme 2: Integrated Transport Planning
The planned annual target was to have the final revised White Paper on the National Transport Policy submitted to cabinet by March 2018. In addition, the plan was also to have a Road Freight Strategy Implementation Plan developed.

Programme 3: Rail Transport
The intention was to have the White Paper on the National Rail Policy submitted to cabinet by March 2018 and to have the National Rail Bill submitted to the Economic Sectors, Employment and Infrastructure Development (ESEID) Cluster. 

Programme 4: Road Transport
A planned annual target was to have the White Paper on Roads Policy submitted to the ESEID Forum for Director Generals (FOSAD) Cluster. Another planned target was to conduct stakeholder consultations on the draft Access Road Development Plan.

Programme 5: Civil Aviation
The plan was to have Draft Regulations for the Airports Company Amendment Act and Draft Regulations for the ATNS Amendment Act developed. A further target was to have the Civil Aviation Amendment Bill submitted to cabinet.

Programme 6: Maritime Transport
Annual planned targets were to have the Maritime Transport Policy and the Merchant Shipping Bill submitted to cabinet by March 2018. A further target was to have the 2020 World Maritime Day Project Implementation Plan submitted to cabinet.

Programme 7: Public Transport
Planned annual targets were to have the Implementation Plan of the New Taxi Recapitalisation Programme and the Framework for the implementation of the Integrated Public Transport Turnaround Plan developed. Another planned target was to have the Draft Transport Appeal Tribunal (TAT) Amendment Bill developed.        

Over the medium term, the Department will focus on improving mobility and access to social and economic activities by maintaining the provincial and national road networks, upgrading and maintaining rail infrastructure, and improving public transport for rail and road commuters. These activities contribute to the realisation of outcome 6 (an efficient, competitive and responsive economic infrastructure network) of government’s 2014-2019 medium-term strategic framework. The Department’s total expenditure over the medium term will mainly be driven by transfers to public entities, provinces and municipalities for infrastructure spending, operations and maintenance. These transfers constitute 98.1 per cent of the department’s budget over the medium term. The Department’s budget is expected to increase at an average annual rate of 6.8 per cent in the period ahead, from R56.3 billion in 2016/17 to R68.6 billion in 2019/20. However, spending on goods and services is expected to decrease at an average annual rate of 1 per cent, from R751.8 million in 2016/17 to R729.1 million in 2019/20, due to reprioritisations to other transport spending priorities. These include: R15.9 million to support the operations of the Maritime and Aeronautical Rescue Coordination Centre; R19 million to strengthen the regulatory capacity of the Ports Regulator of South Africa; and R6 million to develop rail economic regulation capacity in the Department in preparation for the establishment of the Single Transport Economic Regulator. As part of Cabinet’s decision to lower the national aggregate expenditure ceiling, the budget for goods and services has been reduced by R49.6 million over the MTEF period.

Discussion
Mr E Makue (ANC, Gauteng) asked why the SA National Taxi Council (SANTACO) received a grant from the DoT. On the cut in the Public Transport Operational Grant, he asked what the Committee could do to assist. He understood the importance of road freight as the preferred mode of transport. What were the Department’s plans to regulate trucks on roads? This needed to be regulated as these trucks often spilled their contents like sand on roads. These transgressions often went unpunished. He also stated that motor car meter taxi drivers expressed concerns to him about Uber affecting their ability to make a living. Was this matter covered in the APP?

Mr Mokonyama explained that SANTACO was created by government. In the mid 1990s - when taxi violence broke out - government, businesses and taxi operators came together to find a solution. The decision was taken for government to assist. The National Taxi Task Team was formed and agreement was reached to finance SANTACO. On and off members from SANTACO broke away from the organisation. The DoT had a strategy in place to shift modes from road to rail. There were targets in place. The intention was also to reduce the number of trucks on the road. Trucks were the mode of choice as the customer received door to door service. Efforts were being made to regulate trucks. However law enforcement capacity was lacking. Overloading was a huge problem.

Mr Mokonyama said that the advent of uber brought good and bad outcomes. The bad is that other meter taxi drivers’ livelihoods were affected. The good however is that people liked to travel with Uber. The DoT needed to ensure that there was equity and fair treatment in the industry. The DoT was introducing legislation to cover application based taxis like Uber versus metered taxis. Regulation was needed. Legislation required an operating license. There were also issues which related to the conveyance of passengers. Provinces did offer operators charter licenses. The company Uber did not own the taxis. He conceded that as a user he would use Uber but at the same time regulation was needed.  
 
Mr Hlabisa, on the unroadworthiness of trucks on the road and the spilling of sand on roads, said that traffic officers were doing their level best. Spilling of sand on roads was a chargeable offence. It was illegal. The relevant authorities were addressing the issue.  
 
Mr Manyungwana stated that there was a national registration for trucks. The DoT proposed that it should be housed in departmental entities.

Mr S Mthimunye (ANC, Mpumalanga) noted that he had not seen the feasibility study on the Moloto Rail Corridor. He also wished to see a cost benefit analysis on the Memorandum of Understanding with China Compulsory Certification Certificate (CCC). He was concerned about beneficiation not taking place on major infrastructure projects. How were local people to benefit? On bus contracts that were under review it seemed as if there was no beneficiation taking place. On the Moloto Rail Project Plan he asked when it was going to kick off.

Mr Mokonyama, on bus contracts, said that in the Western Cape the big player was Golden Arrow. Long term contracts with the bus company PUTCO had been cut. When the DoT heard they were receiving funds from National Treasury the intention was to get other companies into the subsidy fold. The DoT was however not yet there on transforming the system. There was no indication that the funds would be received anytime soon. A public transport roundtable would be held. The PUTCO contract had been looked into. The model being considered was to break up the huge contract into four manageable contracts. The DoT engaged communities on the Moloto Project. On construction, the DoT worked with local businesses and contractors. The DoT would provide the Committee with the documentation on the Moloto Rail Project Plan. He explained that what the Public Rail Agency of SA (PRASA) had signed with the Chinese was an intention to cooperate. It was a two page document which covered talks before talks. It was more about a meet and greet. There was nothing concrete as yet. It was however a viable project which government wished the DoT to implement.
 
Mr Letsoalo explained that the Public Transport Network Grant was in support of the old contracts. As part of the transformation process the idea was for competition to make operators more efficient.

Mr M Chabangu (EFF, Free State) felt that all provincial roads needed to be reconstructed. The road between Reitz and QuaQua had killed many people. He was concerned about the completion of the logistics hub in Harrismith as it was long overdue. Only fencing and electrification had been done. He asked when things were going to be corrected regarding the corruption at the Public Rail Agency of SA (PRASA). He asked when corruption was going to be rooted out when it came to illegal drivers licenses. He also asked the DoT about the R5.19bn in kickbacks paid to officials at Transnet by the Chinese. On the taxi recapitalisation programme he said that there were still taxi ranks in his constituency that were unused and were white elephants.

Mr Mokonyama, on logistics, said that provinces had issues with the alignment of the Moloto road. Provinces had brought forward an alternative plan which would be taken forward. There was a shared vision on that was to be achieved at Harrismith. The DoL could ask the PRASA to present its strategic plan to the Committee. It should shed light on expenditures. He did not have information on the Transnet kickbacks. Transnet could be called to appear before the Committee as well. He said that the Free State Province was investigating the taxi rank in Bloemfontein. There was a great deal of infighting. There were also problems relating to the infrastructure layout of the taxi rank. The taxi rank had been built by the municipality duly assisted by the Province. 

Mr Manyungwana, on the Harrismith Hub, said that funds had been allocated for construction from the start. The allocation for designs was R1.2bn. A public-private partnership would be invested in on the Hub.

Mr W Faber (DA, Northern Cape) expressed disappointment that neither the Minister nor the Deputy Minister had made the effort to attend the meeting. He was aware that cabinet meetings took place on Wednesdays but at least one of them could have attended the meeting. He felt that there were no issues with Uber. Uber taxis were clean, affordable and safe. It was all about free economic enterprise and healthy competition. He pointed out that there were 142 contracts worth R24bn that were being investigated for corruption. He asked why specifics were not provided to the Committee. The DoT was also asked what the situation with the PRASA was. He pointed out that fruitless expenditure had increased from R2.3bn in Quarter 1 of 2016/17 to R4.6bn in Quarter 2 of 2016/17. Irregular expenditure sat at R15bn and it was increasing. He was concerned that there was R2.65bn worth of trains that could not run on SA’s rail networks. Why could these trains not be used? He asked what progress had been made on the Administrative Adjudication of Road Traffic Offences (AARTO) Bill. The DoT was further asked what happened to the PRASA’s Mr Collins Letsoalo’s R350 000 salary increase.

Mr Mokonyama stated that the AARTO Bill was still in the National Assembly. On the issue of Mr Collins Letsoalo the courts of the land had cleared him. Paragraphs 21 and 22 of the court judgement said that the PRASA Board had not told the truth. The Board had known what Mr Letsoalo was entitled to. 

Mr Hlabisa explained that the AARTO Bill was with the Portfolio Committee on Transport. The DoT had the previous week attempted to consolidate all the inputs on the Bill which had not happened. The DoT was expecting a new date to consolidate the inputs. The Portfolio Committee had asked that the Bill be referred to the Committee. Once the Portfolio Committee was done with the Bill then it would come before the Committee.

Mr L Magwebu (DA, Eastern Cape) on good governance pointed out that the Department of Public Service and Administration (DPSA) required departments to have anti corruption strategies. The DoT planned to have a strategy. He however felt that it did not take a year to develop such a strategy. A strategy could be developed within two quarters. Fraud and corruption was rife in SA. Motor vehicle driving licence fraud had been going on for far too long. The DoT was asked to unpack its nine community outreach programmes. What was the DoT doing in each province? On the PRASA Rail Modernisation Programme he asked why it was stated in the briefing document that approximately 110 engineers and 170 artisans were receiving training in Europe and Brazil. Why the use of the word “approximately”? The Committee needed to be provided with exact figures.

Mr Mokonyama, on corruption, said that the DoT did do unannounced visits. It was true that the DoT was yet to come up with an Anti Corruption and Fraud Strategy. The DoT needed to consult widely with provinces on such Strategy. On DPSA matters the DoT had its own processes. There were strategies in place to combat corruption. Not having an Anti Corruption and Fraud Strategy did not mean that anti corruption and anti fraud work was not done. People who were involved in corruption and fraud were being arrested and this included the people involved in illegal driving licenses. The DoT wished for there to be a consolidated effort. He explained that there were nine outreach programmes, one for each province. Details of the outreach programmes could be provided to the Committee. He agreed to provide the Committee with exact figures on the training of artisans and engineers.

Mr Makue noted that when the Committee had visited port authorities at Durban and Richards Bay members were informed that they were cutting down on delays. However a report from the University of Stellenbosch said that trucks and ships were still being delayed at ports. Was there improvement in delays? Transnet had stated that there was improvement.

Mr Mokonyama noted that Transnet were the ones that could shed light on delays at ports in Durban. Perhaps the Committee should call them to account. It fell within the domain of Transnet.

Mr Manyungwana responded that the University of Stellenbosch had not linked Transnet’s plans with its study. Transnet had infrastructure improvement designs. The KwaZulu-Natal Province and municipalities had to also bring in their investments. Road infrastructure constraints caused delays. National would bring in the funding on the Moloto Corridor. Work was being done. How to attract investment was the issue.

The Chairperson asked the DoT that when it provided the Committee with information on the Moloto Project Plan and the China MOU that specifics on its nine outreach programmes also be provided.

Mr Magwebu asked for specifics on the trained engineers as well.

Mr Mokonyama reiterated that there was one programme for each province. He would nevertheless ensure that details on the outreach programmes be provided to the Committee. Information on the training of engineers would also be included.

Mr Chabangu said that he was unhappy about the taxi rank in Bloemfontein. The Free State Province and the Bloemfontein Municipality had misused taxpayer’s funds. After all these years the taxi rank remained non-operational. The rank did not allow taxis to come in and out at the same time.

Mr Mokonyama explained that the issue of the taxi rank belonged to the Province and the Municipality. He was aware of the taxi rank. The DoT as a national department could not take them to task. The Committee could subpoena the Municipality and the Province to account.

Mr Faber on the irregularities of the PRASA said that the Committee could call on the Minister of Transport to account.

Mr Mthimunye said that once the Committee was done with the process of APPs and budgets the DoT, its entities and the Minister could be invited to a meeting.

Mr Makue said that when the Department of Labour had appeared before the Committee members had urged them to create employment opportunities for persons with disabilities. He urged the DoT not to forget persons with disabilities in their plans. Persons with disabilities struggled to get onto buses. Government needed to be sensitive to their needs. 

Committee Minutes
Committee Minutes dated 31 May 2017 was adopted unamended.

The meeting was adjourned. 



 

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