PRESENTATION TO PORTFOLIO COMMITTEE ANNUAL REPORT 2008/09 20 OCTOBER 2009

1. The Department of Home Affairs PRESENTATION TO PORTFOLIO COMMITTEE ANNUAL REPORT 2008/0920 OCTOBER 2009

2. Structure of the presentation • Presentation • Introductory remarks • Context of the Report: 2008/9 • Selected highlights from performance information • Financial information • Concluding remarks

3. Introductory remarks • The Department has received a series of disclaimers or qualified audits, pointing to serious weaknesses in financial management and controls. One of the priorities of the turnaround programme launched in 2007 has been to address these weaknesses. • The reports of the Audit general and Audit Committee acknowledge that progress has been made. This is reflected in the audit opinion moving from a disclaimer in 2008 to a qualified audit in 2009. • The qualified opinion was based on a number of shortcomings that we are taking very seriously. We are addressing each of the areas of greatest concern: departmental revenue, capital assets, payables and leases. We are also taking steps to improve overall financial management and governance.

4. The context of the Annual Report: 2008/09

5. What is the Department reporting against? 1/2 • The Annual Report for April 2008 – March 2009 reports against: • A 3-year Strategic Plan that is organised under 6 high level integrated strategic objectives in support of government priorities • The annual performance targets (2008-2009) for achieving the outcomes specified in the Strategic Plan. • The budget that was allocated and voted for.

6. What is the Department reporting against? 2/2 • The Annual Report also reports against the audited financial statements of the DHA and GPW, including: • The Accounting Officer’s Report – DHA • The Accounting Officer’s Report – GPW • The Appropriation Account and related notes

7. 2008 – 2009: The Departmental context 1/ 2 • The primary strategic goal of the Department is to secure and affirm the identity and status of citizens; and to manage immigration in the interest national security and development priorities. • To achieve this goal we are in the process of transforming into a modern, cost-effective and efficient organisation. This means having officials who are characterised by values of public service, honesty and patriotism. • In June 2007 a programme was launched to turnaround the Department. This followed a report by the Support Intervention Team that was requested by the Minister after an audit disclaimer. The report pointed to a wide range of deeply rooted problems. These included leadership and management, human resources, organisational design and information systems.

8. 2008 – 2009: The Departmental context 2/2

9. PROGRAMME PERFORMANCE Performance per Strategic Objective

10. Performance against Strategic Objectives Strategic Objective 1: To provide secure, efficient and accessible civic and related services and products to citizens and legitimate residents within specified timeframes Improved ID turnaround time from 127 days to an average of 40 days through the implementation of operations management, process reviews and ID Track and Trace (target was 60 days for first issues and 56 days for re-issues). Improvement in the quality of issuance of enabling documents through redesigned processes in frontline offices Online fingerprint verification was introduced at 217 offices enabling front office personnel to verify the identity of clients on application and reduces the need to forward the applications to the central ID production facility for manual fingerprint verification. This results in the on-the- spot issuance of temporary identity certificates and emergency and temporary passports within a maximum of two working days 10

11. Performance against Strategic Objectives Strategic Objective 1: To provide secure, efficient and accessible civic and related services and products to citizens and legitimate residents within specified timeframes New late registration of birth process implemented that is detached from the ID issuing process and requires: Supporting documents submitted in support of applications are thoroughly screened at provincial level All applicants and informants are interviewed by a regional screening committee The ten fingerprints of applicants are searched against records on AFIS (automated fingerprint identification system) to determine if previous records exist 11

12. Performance against Strategic Objectives Strategic Objective 1: To provide secure, efficient and accessible civic and related services and products to citizens and legitimate residents within specified timeframes National Population Register (NPR) clean up continued with 12077 cases resolved of multiple persons sharing same ID and 5682 of one person with multiple IDs Implemented SMS functionality for birth, marriage and death unabridged certificate system to inform applicants of collection information Track and trace functionality for Late Registration of Births implemented Large scale programme of providing IDs to 16year-olds undertaken in co-operation with the Department of Education 12

13. Performance against Strategic Objectives Strategic Objective 1: To provide secure, efficient and accessible civic and related services and products to citizens and legitimate residents within specified timeframes Support rendered for elections: verifying identity and issuing documents Access improved through opening of 45 additional service delivery points and the improvement in the functionality of mobile units Capacity of Client Service Centre was expanded to deal with 1 163 832 contacts made. 96.25% of calls are answered within 20 seconds (target was 80%). 13

14. Performance against Strategic Objectives Strategic Objective 2: To manage migration effectively by enabling the movement of skilled workers into the country and efficiently and securely facilitating the entry, stay and exit of visitors. 35 Large Accounts maintained and 17 additional accounts serviced (target was 50) Sustained adherence to turnaround times for temporary (business permits, visas, etc) and permanent residence permits Travellers cleared within 1.5 to 2 minutes at ORTIA, CTIA and Durban International Airport 2393 quota permits were issued to foreigners with scarce and critical skills (target was 2000) Law Enforcement Strategy adopted by ExCo – provides a foundation for the implementation of a uniform and standardised policy to enforce the Immigration Act 14

15. Performance against Strategic Objectives Strategic Objective 2: To manage migration effectively by enabling the Movement of skilled workers into the country and efficiently and securely facilitating the entry, stay and exit of visitors. National Immigration Information System (NIIS) was put in place to link reception centres and to enable the efficient processing of asylum seekers Roll out of Inspectorate standardised processes and training delivered to all Inspectorate staff New middle management cadre of 30 deputy directors for Inspectorate was appointed in February 2009 Finalised the appointment of a centrally based Analysis Unit compromising of eight officials and implementation of integrated management reporting Special projects implemented addressing xenophobic incidents and management of displaced persons 15

16. Performance against Strategic Objectives Strategic Objective 3: To determine the status of asylum seekers and manage refugee affairs in accordance with international treaties and the bill of rights as enshrined in the constitution Single day processing capability instituted at each of the six national Refugee Reception Offices for the issuance of section 22 and section 24 permits Refugee status determination and granting of asylum finalised within 6 months (on average), a total of 3,746 Refugee Status were granted within the required period Refugee Travel documents issued within 10 days (on average), a total of 482 Refugee Travel Documents issued within the targeted period 16

17. Performance against Strategic Objectives • Strategic Objective 4: To foster domestic, regional and international co-operation towards improved economic growth and development, including events with strategic importance to the country, such as the FIFA world cup. • Foundation laid for Confederations and FIFA Soccer World Cup through sign off of user requirements and conceptual design to ensure organisational readiness • Memorandum of Understanding (MoUs) with China (visa agreements for diplomatic passport holders), Nigeria (visa agreement for diplomatic and official passport holders), Lesotho (Agreement on cross-border movement) and Zimbabwe (co-operation agreement) developed • MoU with Lesotho was signed but framework for implementation to be developed. MoU with Zimbabwe was signed on 4 May 2009 • Various awareness campaigns and community outreach initiatives successfully conducted, e.g. World Cup 2010, South African Passport ushered in successfully, Check your status campaign and ID collection.

18. Performance against Strategic Objectives • Strategic Objective 5: To deliver the department’s mandate effectively by implementing a new organisational model that is characterised by caring officials who serve with professionalism and by effective governance and operational control • DHA organisational structure finalised, adopted and implementation commenced through advertisement of 641 positions of which 528 were filled • 10 574 employees underwent key training interventions of which 277 related to Immigration Officers undergoing the 2010 Immigration training in preparation for the Confederation Cup, World Cup and beyond – detailed breakdown in next slide • SANAI Formative Training Programme was successfully completed that will lead to the professionalisation of the immigration cadre and improved immigration service • 65% achievement rate for finalised misconduct cases (target was 40%), 80% success rate in disputes in favour of DHA (target was 60%), 54,76% grievances reduction achieved against a targeted 40%

19. PROGRAMME PERFORMANCE FOR 2008/09 (1 Apr 08 to 31 Mar 09)

20. Performance against Strategic Objectives • Strategic Objective 5: To deliver the department’s mandate effectively by implementing a new organisational model that is characterised by caring officials who serve with professionalism and by effective governance and operational control • Learning Centre Operating Model has been redefined, the costing model completed and the processes and activities mapped out. The establishment of the DHA Learning Centre will ensure mainstreaming of training interventions and provision of accredited Home Affairs qualifications • Relationships between Organised Labour and the Department strengthened. Agreements on Turnaround were concluded between Unions and the Department • Departmental Bargaining Council, 9 Provincial Consultative Forums and Turnaround Consultation Forum structures established and functional. This will lead to improved stakeholder relations resulting from functional ER structures which enhances labour stability and enable business of DHA to continue un-interrupted • Guidelines on implementation of all priority policies have been developed that will ensure improved governance and compliance

21. Performance against Strategic Objectives • Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption • Information Services • Improved IT security through: • E-directory stabilization that will minimize unauthorized access to DHA systems • Stabilisation of Biometric Access Control Management (BACM) system • Deployment of anti-virus servers for HANIS and Waltloo and anti-virus on PC level • Repair and installation of 33 firewalls across the country leading to improved secured and protected systems and infrastructure • National Immigration Information System (NIIS) implemented at 6 refugee sites that will result in fraud minimisation • Online Verification System rolled out to 217 DHA offices to ensure faster, reliable and more effective customer services

22. Performance against Strategic Objectives • Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption • Information Services • 11 sites added to Virtual Private Network (VPN) resulting in faster, stable, reliable and managed network customized to the Department’s specific requirements • 45 Regional IT managers and Interns appointed and inducted • Death Status Queries system implemented. Over 40,000 queries received in 2 months since inception for dead/alive status via SMS) leading to a reduction in corruption and enhanced communication with clients • Expenditure for Who Am I Online was for the planning, procurement of infrastructure and implementation of back end systems which were used for testing of systems to be implemented in the live environment

23. Performance against Strategic Objectives • Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption. • Finance • Disposal and Expenditure Review Committees established and functional • 33 Offices refurbished • Targeted staff (1105) trained at Head Office and in Provinces • Established revenue support team to address non-compliance • 96,90% of allocated budget spent (2008/09) • Asset Register compiled • Pilot of integrated receipt engine (IRE) for improvement of financial management conducted in two offices

24. Performance against Strategic Objectives • Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption • Internal Audit • 55 out of planned 60 audits conducted. Reasons for non achievement of target are moratorium on foreign travelling and audits conducted by Auditor-General themselves • Key issues identified are: ineffective controls over safeguarding of cash and assets, inadequate capacity in offices and training on basic internal controls, management oversight and inadequate document management (audit trails). Concerted efforts are underway to rectify these issues • Annual Internal Audit plan, Audit Committee Charter and Internal Audit Charter approved by Audit Committee • Compliance with Treasury Regulations in terms of number of Audit Committee meetings for the year was achieved

25. Performance against Strategic Objectives • Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption • Internal Audit Internal Audit function strengthened through: • Audit Services structure revised and approved • Capacity enhanced through appointment of 20 interns • Agreed Management Action and Risk Acceptance Policies approved by EXCO and Audit Committee • Branch Risk Representatives were appointed. On the job training on risk management was provided to risk representatives • Comprehensive Internal Audit procedure manual approved • Evaluation of performance evidence to strengthen internal systems and controls • Risk Register 2008/2009 was updated

26. Performance against Strategic Objectives • Strategic Objective 6: To create an enabling environment by putting in place support services that are effective, efficient, integrated and that prevent corruption • Counter Corruption and Security Services • Capacity enhanced through appointment of key staff (e.g. 4 Vetting Officers, 3 Prevention Officers, 15 Control Security Officers, 4 Investigating Officers, 1 Analyst and 3 Senior Security Administrative Officers appointed) • 62 Offices evaluated with regard to corruption related risks (target was 60) – focus is on preventative measures for key business processes • Pre-employment screenings for all requests finalised and 13 targeted service providers screened to enhance the integrity of DHA employees and service providers • 80 offices monitored for compliance with Minimum Information Security Standards (MISS) to ensure that key controls are in place

27. Concluding Remarks

28. Conclusion - Progress and Challenges 1 / 3 Progress The Annual Report reveals that we have made significant improvements in the way we deliver services. Steps have also been taken to improve quality and security, although these need to be far more comprehensive. A 2009 survey by GCIS indicates that the poor and marginalised in particular appreciate advances such as faster turnaround times, better information via our Client Service Centre and SMS notification. These advances are being maintained by a number of hard working officials, in spite of inadequate infrastructure and out of date systems – problems that require time and substantial resources to address.

29. Conclusion - Progress and Challenges 2 / 3 • CHALLENGES • Serious gaps in management, supervision and governance. • We acknowledge that a minority of officials, working with syndicates, continue to undermine our gains through corruption. • A generally poor culture of service delivery. • Low level of many officials in terms of qualifications and skills. • Out of date systems and enabling technology. • A legacy of poor infrastructure and a lack of a conducive environment for staff and citizens.

30. Conclusion - Progress and Challenges 3 / 3 • Our organisational strategy going forward has four main thrusts: • Putting in place strong management, leadership and governance to drive new values at every level of the organisation. • Intensive development of our staff through substantial training programmes that enable them to deliver on their mandates. • Continue improving our processes and systems, with a strong focus on security. • Taking robust measures to fight corruption in partnership with the public, other departments and other key stakeholders. The above measures will succeed if the mass of South Africans value and protect their citizenship and identity.

31. Questions and Comments

32. FINANCIAL INFORMATION

33. TABLE OF CONTENTS • Expenditure for 2008/09 financial year • Audit report • Challenges • Way forward

34. SUMMARY OF EXPENDITURE FOR 2008/09 PER PROGRAMME

35. SUMMARY OF EXPENDITURE FOR 2008/09 PER ECONOMIC CLASSIFICATION

36. Detail of Over/Underspending

37. Detail of Over/Underspending

38. Roll Overs

39. AUDIT REPORT

40. Capital Assets

41. Leases

42. Payables

43. Departmental Revenue

44. Departmental Revenue

45. Irregular Expenditure

46. Internal Control Deficiencies

47. Challenges • Organizational Structure (Relationship between Head Office and the Provinces) • Capacity within the organization • Training • Centralization of certain processes • Integration of business processes

48. Way Forward • Design and implement business processes • To decentralise certain finance and supply chain management functions • To review the structure to support finance can supply chain management processes • To strengthen the governance structures to ensure compliance to PFMA, Treasury Regulations and Public Service Regulations

49. Siyabonga Dankie Thank You Realeboga