ANNUAL PERFORMANCE PLAN. Department of Public Enterprises 2018/19. public enterprises REPUBLIC OF SOUTH AFRICA. Public Enterprises.

Transcription

1 ANNUAL PERFORMANCE PLAN Department of Public Enterprises 2018/19 public enterprises Department: Public Enterprises REPUBLIC OF SOUTH AFRICA

2 public enterprises Department: Public Enterprises REPUBLIC OF SOUTH AFRICA Department of Public Enterprises - Annual Performance Plan 2018/19 1

3 FOREWORD BY THE MINISTER Glossary... 6 PART A: STRATEGIC OVERVIEW...7 Updated situational analysis PART B: PROGRAMME AND SUB-PROGRAMME PLANS PROGRAMME 1 ADMINISTRATION AND CORPORATE MANAGEMENT PROGRAMME 2 SOC GOVERNANCE ASSURANCE AND PERFORMANCE PROGRAMME 3 BUSINESS ENHANCEMENT AND INDUSTRIALISATION PART C: LINKS TO OTHER PLANS Conditional Grants Public Entities Annexure Annexure Table of Contents 2 Department of Public Enterprises - Annual Performance Plan 2018/19

4 Growth, development and transformation depend on a strong and capable state. It is critical that the structure and size of the state is optimally suited to meet the national government departments. and governance challenges, which has impacted on the performance of the We will intervene decisively to stabilise and revitalise state owned enterprises. The recent action we have taken at Eskom to strengthen governance, root out Government will take further measures to ensure that all state owned companies We will need to confront the reality that the challenges at some of our SOEs operational costs. We will change the way that boards are appointed so that only people with expertise, experience and integrity serve in these vital positions. 3 FOREWORD BY THE MINISTER..Fellow South Africans, Minister therefore undertake a process of consultation with all stakeholders to review the funding model of SOEs and other measures. We will remove board members from any role in procurement and work with the Auditor-General to strengthen external audit processes. Department of Public Enterprises - Annual Performance Plan 2018/19

5 architecture of the state owned enterprises sector to achieve better coordination, oversight and sustainability. This is the year in which we will turn the tide of corruption in our public institutions. Mr Pravin Gordhan, MP Minister 4 Department of Public Enterprises - Annual Performance Plan 2018/19

6 5 Ms Tshegofatso so Motaung Date: Acting Deputy Director- General: Corporate Management Mr Bafenyi Lekoma Date: Mr Mogokare Richard Seleke Date: Director-General Approved by: Mr Pravin Gordhan, MP Date: Minister Department of Public Enterprises - Annual Performance Plan 2018/19

7 GLOSSARY OF ACRONYMS APP Annual Performance Plan BRICS CPI Consumer Price Index CSI CSDP DAFF DEA DMR Department of Mineral Resources DoE DPE Department of Public Enterprises DPSA DRDLR DTI Department of Trade and Industry EA EDF ESCAP ESD GDP Gross Domestic Products GFCF Gross Fixed Capital Formation IFLOMA IMC IRP IPAP Industrial Policy Action Plan MoA KM Kilometre MDS MOI Memorandum of Incorporation MPAT MPSA MTEF MTSF MVA MW MT NDP NEMA NERSA NGP NPAT NT National Treasury PICC Presidential Infrastructure Coordination Commission PFMA PRC PPPFA RBCT RMC SAFCOL SA Express SARB SDIP SEIAS Socio Economic Impact Assessment SONA SIP SOE SOC TOR Terms of Reference 6 Department of Public Enterprises - Annual Performance Plan 2018/19

8 PART A: STRATEGIC OVERVIEW

9 PART A: STRATEGIC OVERVIEW Updated situational analysis sustainability are: 8 Department of Public Enterprises - Annual Performance Plan 2018/19

10 is realised. Financial optimum capital structure Denel 2.08 Gearing 1.00 Transnet SA Express 0.00 Safcol 0.00 (Unaudited) Denel Eskom Transnet SA Express Safcol Alexkor 386 Department of Public Enterprises - Annual Performance Plan 2018/19

11 Decisive interventions Review of Operating model n Review of Funding models Optimization of resources Key Themes from the 2018 State of the Nation Address Stamp out corrupt practices at SOCs: and capability report instances of malfeasance How do we respond All Directors and employees SOCs Lifestyle audits for NEDs and Implementation of audit relations restore credibility 10 Department of Public Enterprises - Annual Performance Plan 2018/19

12 on Appointment of Boards and developmental mandate DenelSound leadership and governance EskomConfront corruption TransnetBetter co-ordination and oversight of government s role as shareholder Revenue (Rmillion)How do we respond mandate directors competence procurement reports are acted on independence and capability Appoint an independent and credible safely report cases of malfeasance PUBLIC TRUST IN THE DPE (PARLIAMENTARY ENQUIRY AND JUDICIAL COMMISSION ON STATE CAPTURE) Department of Public Enterprises - Annual Performance Plan 2018/19 11

13 of State Capture: corruption The following actions were taken at Eskom to strengthen governance, Table 2: Presidential Review Commission (PRC) on SOE Diagnosis Diagnosis Interventions SOC Reform 12 Department of Public Enterprises - Annual Performance Plan 2018/19

14 Diagnosis Interventions operations of SOCs examination capitalisation in some instances SOC Reform DOMESTIC ECONOMIC OUTLOOK Department of Public Enterprises - Annual Performance Plan 2018/19 13

15 Percentage change Actual Estimate Forecast Gross domestic expenditure Exports Imports Real GDP growth GDP at current prices (R billion) macroeconomic performance and projections Source: National Treasury and Reserve Bank The importance of Capital Investment Programmes to Economic Development 14 Department of Public Enterprises - Annual Performance Plan 2018/19

16 Investment on Economic Infrastructure and Growth Source: SARB How is South Africa Performing in Developing its Economic Infrastructure Gross Fixed Capital Formation (GFCF) Department of Public Enterprises - Annual Performance Plan 2018/19 15

17 Public Entities Figure 1: Ratio of Gross Fixed Capital Formation to GDP Figure 2: Share of Gross Fixed Capital Formation Data Source: SARB Data Source: SARB Public Sector Infrastructure Investment 16 Department of Public Enterprises - Annual Performance Plan 2018/19

18 R billion 2014/ / / / / / /21 MTEF Outcomes Estimates Total Water and sanitation Education Human settlements Total National departments Public entities Total Source: National Treasury Department of Public Enterprises - Annual Performance Plan 2018/19 17

19 Capital Investment By Type Capital Investment Note: * 2016 Transnet Capital Investment * * * 2016 Transnet Source: StatsSA 18 Department of Public Enterprises - Annual Performance Plan 2018/19

20 Denel SA Express Safcol GFCF of 30 percent of Capital Investment Source: StatsSA Way Forward Department of Public Enterprises - Annual Performance Plan 2018/19 19

21 State Shareholding State Shareholding Revenue (R) 5.8 billion Revenue (R) 210 billion 270 million Total Assets (R) 9.7 billion Total Assets (R) 69 million Number of employees Number of employees 87 Description Forestry Plantation Description Airline State Shareholding State Shareholding Revenue (R) 900 million Revenue (R) 2.6 billion 170 million Total Assets (R) 5 billion Total Assets (R) 1.7 billion Number of employees Number of employees Description Description State Shareholding State Shareholding Revenue (R) 61 billion Revenue (R) 148 billion 5.3 billion 3.6 billion Total Assets (R) 328 billion Total Assets (R) 562 billion Number of employees Number of employees DPE SOC PORTFOLIO (2016/17) Description Armaments Manufacturer Description 20 Department of Public Enterprises - Annual Performance Plan 2018/19

22 Performance delivery environment optimised. Department of Public Enterprises - Annual Performance Plan 2018/19 21

23 Strengths help to achieve the objective Enhancement of the Strengths to achieve the objectives SERVICE DELIVERY IMPROVEMENT PLAN (SDIP) SWOT ANALYSIS INTERNAL RESOURCES ANALYSIS INTERNAL ORIIGIN system Weaknesses harmful to the objective Improvement of the Weaknesses - to achieve the objectives information submitted by SOC performance standards for all functions performed continuous performance discussion 22 Department of Public Enterprises - Annual Performance Plan 2018/19

24 Opportunities - help to achieve the objective Utilisation of the opportunities - to achieve the objectives Risks Risk Description Interventions PESTEL EXTERNAL ORIGIN credibility articulated to ensure role clarity Threats harmful to the objectives Avoidance of the threats to achieve the objectives Economic decline and its impact on SOC performance RISK MANAGEMENT Stakeholder cooperation and support Limited resource and capability Operational effectiveness Department of Public Enterprises - Annual Performance Plan 2018/19 23

25 Risks Risk Description Interventions Information integrity SOC Board Governance operations to full capacity Board rotations ORGANISATIONAL ENVIRONMENT Financial Internal audit Transportation 24 Department of Public Enterprises - Annual Performance Plan 2018/19

26 General Approved Programme Budget Structure PROGRAMME 1 - ADMINISTRATION AND CORPORATE MANAGEMENT Ministry Minister Deputy Minister Internal Audit PROGRAMME 2 - SOC GOVERNANCE ASSURANCE AND PERFORMANCE DDG Department of Public Enterprises - Annual Performance Plan 2018/19 25

27 PROGRAMME 3 - BUSINESS ENHANCEMENT, TRANSFORMATION AND INDUSTRIALISATION Industrialisation and Localisation Transport and Defence Transnet Denel 26 Department of Public Enterprises - Annual Performance Plan 2018/19

28 Alexkor Denel None Eskom Name of entity Legislative mandate relationship with the SOCs Nature of operations SAFCOL SA Express Transnet airline. Department of Public Enterprises - Annual Performance Plan 2018/19 27

29 Bills, policy and legislation Cabinet approved project plan. Government Shareholder Management (GSM) Bill Bill to repeal the Overvaal Resorts Limited Act (Act 127 of 1993) BILLS AND LEGISLATIONS 28 Department of Public Enterprises - Annual Performance Plan 2018/19

30 Average: Expenditure/ Total (%) R million 2017/ / / / / / / /21 R 000 R 000 R 000 R 000 Programme % 2.5% % 55.8% Programme % 0.5% % 14.2% Programme % 97.1% % 30.0% Total % 100.0% % 100.0% Change to 2017 Budget estimate (3.2) (3.5) (3.7) Current payments % 4.0% % 98.8% Compensation of employees % 2.4% % 62.0% Goods and services % 1.5% % 36.8% Transfers and subsidies % 0.4% % 0.0% Provinces and municipalities % % 0.0% Households % 0.0% % 0.0% Payments for capital assets % 0.1% % 1.1% Machinery and equipment % 0.1% % 1.1% Software and other intangible assets % % 0.0% Total % 100.0% % 100.0% n Programmes 1. Administration 2. State-owned Companies Governance Assurance and Performance 3. Business Enhancement, Transformation and Industrialisation Programme Revised estimate Average growth rate (%) Average: Expenditure/ Total (%) Medium-term expenditure estimate Average growth rate (%) Department of Public Enterprises - Annual Performance Plan 2018/19 29

31 Goal statement Goal statement Expenditure Trends STRATEGIC OUTCOME ORIENTED GOALS OF THE INSTITUTION Strategic goal Strengthening the role of the Shareholder Strategic Objectives Strategic Objectives statement Strategic goal Strategic objectives Strategic objectives statement. 30 Department of Public Enterprises - Annual Performance Plan 2018/19

32 Goal statement km MVA stations and MW of capacity completed. Goal statement Objectives statement Objectives statement Strategic goal Ensure SOCs maintain commercially viable operations. Goal statement Strategic objectives Promote commercial viability of SOCs operation Strategic Objectives Statement. Strategic goal Delivery of capital projects Strategic objectives Accelerate capital project delivery Strategic Objectives Statement kilometers (KM), capacity by about Mega Volt Amp (MVA) MW Strategic goal Supporting the acceleration of transformation of the South African economy Strategic objective Accelerate transformation of the South African economy Strategic objectives Accelerate development of skills to support the needs of the economy. Department of Public Enterprises - Annual Performance Plan 2018/19 31

33 Goal statement Objective statement Strategic goal Advancing the re-industrialisation of the South African economy Strategic objectives Position SOCs to support the re-industralisation of the South African economy Strategic objectives statement Strategic objectives Provide strategic leadership, management and support services to the Department. 32 Department of Public Enterprises - Annual Performance Plan 2018/19

34 PART B: PROGRAMME AND SUB-PROGRAMME PLANS

35 PROGRAMME 1 ADMINISTRATION AND CORPORATE MANAGEMENT 34 Department of Public Enterprises - Annual Performance Plan 2018/19

36 PLANS 1. PROGRAMME 1 ADMINISTRATION AND CORPORATE MANAGEMENT Purpose of the programme: Programme overview: Corporate Services is responsible for: Security and Facilities Management: Information Management and Technology: Human Resources: Communications: Strategic Planning, Monitoring and Evaluation: Internal Audit: PROGRAMME OVERVIEW ON SERVICE DELIVERY Security and Facilities Management: early Information Management and Technology: Department of Public Enterprises - Annual Performance Plan 2018/19 35

37 Human Resources: Communications: 2015/ / / / / /21 Resource Plan and submit to DPSA by 30 June Strategic objective annual targets for Administration and Corporate Management for 2018/19 Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Medium-term targets Provide strategic leadership, management and support services to the department and submitted to DPSA by 30 June of None None None Human Resource Plan and submit to DPSA by 30 June None None None Resource Plan and submit to DPSA by 30 June Programme performance indicators and annual targets for Administration and Corporate Management for 2018/19 Performance indicator Estimated Audited/actual performance Medium-term targets performance 2015/ / / / / /21 Provide strategic leadership, management and support services to the department 1.1 Human Resource Plan None None None Resource Plan and submit to DPSA by 30 June Plan and submit to DPSA by 30 June Plan and submit to DPSA by 30 June Department of Public Enterprises - Annual Performance Plan 2018/19

38 Subprogramme 2014/ / / / / / /21 Ministry Communications Performance indicator Estimated Audited/actual performance Medium-term targets performance 2015/ / / / / /21 None None None Quarterly targets for Administration and Corporate Management for 2018/19 Performance indicator Reporting period Provide strategic leadership, management and support services to the department. Quarterly Plan and submit to DPSA by 30 June Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th One Human Resource Plan. None None None Quarterly Budget and MTEF Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Department of Public Enterprises - Annual Performance Plan 2018/19 37

39 Subprogramme 2014/ / / / / / /21 Human Resources Internal Audit Total Current payments Compensation of employees Social contributions Minor assets Audit costs: External Bursaries: Employees Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R Department of Public Enterprises - Annual Performance Plan 2018/19

40 Subprogramme 2014/ / / / / / / Contractors Entertainment accessories Consumable supplies Property payments Venues and facilities Transfers and subsidies Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Department of Public Enterprises - Annual Performance Plan 2018/19 39

41 Subprogramme 2014/ / / / / / / Municipalities Payments for capital assets Total Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Expenditure trends 40 Department of Public Enterprises - Annual Performance Plan 2018/19

42 PROGRAMME 2 SOC GOVERNANCE AND PERFORMANCE Department of Public Enterprises - Annual Performance Plan 2018/19 41

43 2. PROGRAMME 2 SOC GOVERNANCE ASSURANCE AND PERFORMANCE Programme purpose Objectives SUB-PROGRAMMES Management Legal Governance Financial Assessment and Investment Support Governance and Legal Assurance 42 Department of Public Enterprises - Annual Performance Plan 2018/19

44 PROGRAMME OVERVIEW ON SERVICE DELIVERY Department of Public Enterprises - Annual Performance Plan 2018/19 43

45 2.1 Strategic objectives Promote the development of a strong shareholder Strategic Plan (5 year target) Audited/actual performance Estimated performance and maintained Reduction in abuse of positions of recommendations are course. principles to ensure sound and Medium-term targets 2015/ / / / / /21 SOC stabilization Draft concept paper on Policy. Policy. submitted to Cabinet. None None None Fraud and Corruption None None None Report on lifestyle in SOCs. None None None Recommendations Forensic Reports from SOCs implemented. None None None practices produced. None None None appointed. for public consultation. Fraud and Corruption Hotline maintained. Recommendations lifestyle audits of implemented Implementation of from SOC Forensic Reports. implementation of recommended practices conducted. paper and submit to Cabinet. Fraud and Corruption Hotline maintained. Recommendations lifestyle audits of implemented Implementation of from SOC Forensic Reports. implementation of recommended practices conducted. 44 Department of Public Enterprises - Annual Performance Plan 2018/19

46 and submit to Cabinet. and Corruption Hotline maintained. Recommendations from Implementation of recommendations from SOC Forensic Reports. implementation of practices conducted. Performance indicator Promote the development of a strong shareholder Estimated Audited/Actual performance Medium-term targets performance 2015/ / / / / / SOC reform policy SOC stabilisation Draft concept paper on to Cabinet. for public consultation. and Corruption Hotline 2.3 Report on lifestyle audits produced. 2.4 Forensic Reports from recommendations implemented. produced. None None None and Corruption Hotline None None None Report on lifestyle audits produced. None None None Recommendations from Reports from SOCs implemented. None None None practices produced. and Corruption Hotline maintained. Recommendations from Implementation of recommendations from SOC Forensic Reports. implementation of practices None None 1 board appointed Boards. conducted. Department of Public Enterprises - Annual Performance Plan 2018/19 45

47 Conduct lifestyle audits and Corruption Hotline. Implement recommendations from Reports from SOCs. Monitor SOCs implementation of practices Performance indicator Reporting period Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th Promote the development of a strong shareholder 2.1 SOC reform policy Quarterly submitted to Cabinet. Consultation Policy submitted to Cabinet 2.2 Report on lifestyle audits produced. Quarterly Report on lifestyle audits produced. None None Conduct lifestyle audits Fraud and Corruption maintained. Quarterly Fraud and Corruption maintained. Corruption Hotline. and Corruption Hotline. and Corruption Hotline. 2.4 Forensic Reports from recommendations implemented. Quarterly Recommendations Reports from SOCs implemented. Fraud and Corruption Implement recommendations from Reports from SOCs. Implement recommendations from Reports from SOCs. Reports from SOCs. produced. Quarterly practices produced. Compile a report recommendations for implementation by SOCs Monitor SOCs implementation of practices 46 Department of Public Enterprises - Annual Performance Plan 2018/19

48 performance Performance indicator Reporting period Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th Boards and appoint 5 Boards performance Boards and Committees at 2018 AGMs 2.2 Sub-programme: Financial Assessment and Investment Support PROGRAMME OVERVIEW ON SERVICE DELIVERY Department of Public Enterprises - Annual Performance Plan 2018/19 47

49 2015/ / / / / /21 reports produced. implementation of SOCs allocated reports produced. implementation of SOCs allocated Strategic objective annual targets for Financial Assessment and Investment Support for 2018/19 Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Medium-term targets Promote independent sustainability of SOCs. None None produced. are produced annually. forum for SIPs. assessment allocated implementation of SOCs and implementation of None None None 6 SOCs corporate plans None None None 6 SOCs corporate Final SOC 6 SOCs corporate None None None None Draft DPE Final DPE Optimal Capital Structure for implemented. None None None Final Optimal Capital Structure proposal for 3 SOCs. Final Optimal Capital Structure proposal for 3 SOCs. Implementation of Capital Structures. 48 Department of Public Enterprises - Annual Performance Plan 2018/19

50 2015/ / / / / /21 Programme performance indicators and annual targets for Financial Assessment and Investment Support for 2018/19 Implement None None Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Medium-term targets Promote independent sustainability of SOCs. Standardized assessment tools None None None Finalise standardised Performance indicator Estimated Audited/Actual performance Medium-term targets performance 2015/ / / / / / Number of corporate plans 3.5 Optimal Capital Structure None None produced. None None 6 SOCs corporate plans None None None None None None Final Optimal Capital Structure proposal for 3 SOCs produced. 6 SOCs corporate plans Final Optimal Capital Structure proposal for 3 SOCs produced. 6 SOCs corporate plans None SOC Optimal Capital Structures None None Department of Public Enterprises - Annual Performance Plan 2018/19 49

51 None Consultation for 2 SOCs SOP for Draft of DPE Optimal capital structure report for 3 SOCs Quarterly targets for Financial Assurance for 2018/19 Performance indicator Reporting period Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th 3.2 Number of corporate plans Quarterly reports produced. Annually 6 SCOs corporate plans None None drafts drafts. Annually Consultation Consultation Annually Consultation Consultation 3.5 SOCs Optimal Structure Annually Optimal Capital Structure None for 1 SOC Annually None assessment 50 Department of Public Enterprises - Annual Performance Plan 2018/19

52 2014/ / / / / / /21 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R Total Current payments Compensation of employees Social contributions Contractors Reconciling performance targets with the budget and MTEF Expenditure estimates Table 3: SOCs Governance Assurance and Performance Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline Financial Assessment and Department of Public Enterprises - Annual Performance Plan 2018/19 51

53 2014/ / / / / / /21 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Entertainment Venues and facilities Transfers and subsidies Payments for capital assets Total Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline Performance and expenditure trends 52 Department of Public Enterprises - Annual Performance Plan 2018/19

54 3. PROGRAMME 3 BUSINESS ENHANCEMENT AND INDUSTRIALISATION Programme purpose: Objectives basis by: Sub-programmes Business Enhancement Services Energy Resources SAFCOL. Research and Economic Modelling Transport and Defence Express and Denel. Business Enhancement adoption processes. Skills Development Department of Public Enterprises - Annual Performance Plan 2018/19 53

55 disabilities. and supply. Transformation performance assessment on CSI and ESD. PROGRAMME OVERVIEW ON SERVICE DELIVERY International and Intergovernmental Relations Transformation: 54 Department of Public Enterprises - Annual Performance Plan 2018/19

56 Employment/Job creation Corporate Social Investment (CSI) and transformation. Procurement Localisation/Enterprise and Supplier Development Environmental Alignment Department of Public Enterprises - Annual Performance Plan 2018/19 55

57 SUB-PROGRAMME 3-BUSINESS ENHANCEMENT AND INDUSTRIALISATION 56 Department of Public Enterprises - Annual Performance Plan 2018/19

58 implementation of and priority implementation of DPE Localisation implementation of and priority implementation of DPE Localisation 3.1 Sub-programme: Business Enhancement and Industrialisation Strategic objectives/annual targets for Business Enhancement and Industrialisation for 2018/19 Strategic objectives Accelerate development of skills to support the needs of the economy. Accelerate transformation of the South African economy Strategic Plan (5 year target) Quarterly reports implementation of CSI produced on an annual basis. Estimated Audited/actual performance Medium-term targets performance 2014/ / / / / / /21 None learners enrolled None None None None None Annual Report on implemented produced. learners enrolled Annual Report on implemented produced. learners enrolled Annual Report on implemented produced. Position SOCs to support reindustrialisation of the South African economy Quarterly reports on priority produced. None forum for SIPs. assessment allocated priority implementation allocated priority implementation of and priority Quarterly reports None Industrialists Policy Cabinet DPE Industrialists Six business industrialists. DPE Localisation Department of Public Enterprises - Annual Performance Plan 2018/19 57

59 Programme performance indicators and annual targets for Business Enhancement and Industrialization for the year 2018/ / / / / / / /21 of learners enrolled on SOCs scarce produced. produced. Strategic objectives Position SOCs to support reindustrialisation of the South African economy Strategic Plan (5 year target) Estimated Audited/actual performance Medium-term targets performance 2014/ / / / / / /21 None None None for SMME participation consolidation plan implementation implementation Performance indicator Audited/actual performance Estimated performance Medium-term targets Accelerate development of skills to support the needs of the economy. of SOCs contribution produced None None None of learners enrolled on SOCs scarce produced. of learners enrolled on SOCs scarce produced. Accelerate transformation of the South African economy by DPE and SCOs produced. None None rural areas. produced. produced. 58 Department of Public Enterprises - Annual Performance Plan 2018/19

60 2014/ / / / / / /21 Performance indicator Reporting period Annual targets Quarterly targets of DPE localisation produced. Monitor DPE ESD plan. 2018/19 1st 2nd 3rd 4th Assessment of Q2 Assessment of Q3 Performance indicator Audited/actual performance Estimated performance Medium-term targets Position SOCs to support reindustrialization of the South African economy and implementation of None of an forum for SIPs. assessment allocated priority implementation of produced. produced. produced. None None None DPE Localisation of DPE localisation produced. None None None SMMEs participation plan. ESD plan. Quarterly targets for Business Enhancement and Industrialisation for 2018/19 Accelerate development of skills to support the needs of the economy. produced learners enrolled on SOCs produced. Assessment of Q4 Assessment of Q1 Department of Public Enterprises - Annual Performance Plan 2018/19 59

61 Performance indicator Reporting period Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th assessment report. assessment reports. None DPE Localisation None Accelerate transformation of the South African economy implemented by DPE and SCOs Annually implemented produced. None None None 1 annual report produced. Position SOCs to support re-industrialisation of the South African economy Quarterly produced. assessment report. assessment report. Position SOCs to support re-industrialisation of the South African economy Annually None Draft DPE Localisation Annually None Draft DPE ESD 60 Department of Public Enterprises - Annual Performance Plan 2018/19

62 SUB-PROGRAMME: ENERGY AND RESOURCES Department of Public Enterprises - Annual Performance Plan 2018/19 61

63 3.2 Sub-programme: Energy and Resource Management - Eskom Alexkor SAFCOL - Responsible for the following SOCs: 1. Eskom SOC Limited Support the security of supply by: basis 2. Alexkor SOC Limited 3. SAFCOL term. forestry companies. basis. 62 Department of Public Enterprises - Annual Performance Plan 2018/19

64 Medium-term targets 2014/ / / / / / /21 and life of plants. Compacts and life of plants. Compacts PROGRAMME OVERVIEW ON SERVICE DELIVERY sustainability. Strategic objectives and annual targets for Energy and Resources for 2018/19 Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Promote commercial viability of SOCs operations. None operations to minimise load Position paper on operational sustainability operational performance and life of plants. annually. None None None Compacts Department of Public Enterprises - Annual Performance Plan 2018/19 63

65 Medium-term targets 2014/ / / / / / /21 None None plan. plan. implementations recommendations Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Promote commercial viability of SOCs operations. to ensure sustainable business operation. None None None Recommendation allocation model Limpopo. restore INDUSTRIAIS FLORESTAIS MOZAMBIQUE to full capacity. None None None INDUSTRIAIS FLORESTAIS MOZAMBIQUE Consolidate and optimize state assets. None None None Assessment Plan. Commission a study on State Assets to propose an optimum implementations recommendations 64 Department of Public Enterprises - Annual Performance Plan 2018/19

66 Medium-term targets 2014/ / / / / / /21 increase in 4 assessment Medium-term targets None 4 assessment 2014/ / / / / / /21 life of plants. None life of plants. Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Accelerate capital project delivery Annual Electricity None None None increase in Quarterly assessment completion of produced. Quarterly assessment Capex operational performance. 4 assessment Promote independent sustainability of SOCs by None None None Report on model. Programme performance indicators and annual targets for Energy and Resource for 2018/19 Performance indicator Audited/actual performance Estimated performance Promote commercial viability of SOCs operation 5.1 Number of reports performance and None None Position paper operational sustainability operational performance life of plants. Department of Public Enterprises - Annual Performance Plan 2018/19 65

67 Medium-term targets 2014/ / / / / / /21 recommendations Assets None Performance indicator Audited/actual performance Estimated performance None None None Assets None None None Assessment Commission a study propose an optimum structure recommendations Assets 5.4 Feasibility study on capacity conducted plan for Industriais None None None feasibility study Limpopo. None None None Industriais Florestais None None Accelerate capital project delivery. None None None 66 Department of Public Enterprises - Annual Performance Plan 2018/19

68 Medium-term targets 2014/ / / / / / /21 4 reports on 4 reports on None Performance indicator Audited/actual performance Estimated performance None Wind Farm 4 reports on model produced None None None model. model. model. None Performance indicator Reporting period 2018/19 Annual targets Quarterly targets 1st 2nd 3rd 4th Promote commercial viability of SOCs operation 5.1 Number of reports on operational performance None None Quarterly None None 5.3 Feasibility study on capacity conducted Quarterly Limpopo. Commission a study consultation on Feasibility study capacity completed. Department of Public Enterprises - Annual Performance Plan 2018/19 67

69 Continent. 1 Assessment report Performance indicator Reporting period 2018/19 Annual targets Quarterly targets 1st 2nd 3rd 4th Assets. None Draft study on State to propose an optimum structure. None Completed study 5.5 for Industriais Florestais Quarterly for Industriais recommendations on IFLOMA business plans IFLOMA business plan. Commission a study on Forestry opportunities in Africa. Accelerate capital project delivery. Quarterly Quarterly 4 Assessment reports 1 Assessment report 1 Assessment report 1 Assessment report produced Annually None None None 68 Department of Public Enterprises - Annual Performance Plan 2018/19

70 SUB-PROGRAMME: TRANSPORT AND DEFENCE Department of Public Enterprises - Annual Performance Plan 2018/19 69

71 3.3 Sub-programme: Transport and Defence Management - Transnet SA Express Denel The programme is responsible for the following SOCs: Transnet SOC Limited South African Express Airways SOC Limited and commercial sustainability. Denel SOC Limited PROGRAMME OVERVIEW ON SERVICE DELIVERY 70 Department of Public Enterprises - Annual Performance Plan 2018/19

72 Medium-term targets 2014/ / / / / / / mtpa by 2019 operational performance of sea ports and inland terminals from 28 to by Compacts Denel and SA None None Compacts Denel and SA model. Strategic objectives and annual targets for Transport and Defence for 2018/19 Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Promote commercial viability of SOCs operations Promote commercial viability of SOCs operations 207 to 330 mtpa from 2014 to performance of sea ports and inland terminals from 28 to by 2019 annually. Denel and SA None None None 235 mtpa by None None None None None operational ports and inland by None None None None Compacts Denel and SA None None None implementation model. corporate structure airline assets None None proposal for structure of airlines structure for airline assets implementation corporate structure. implementation corporate structure. implementation of optimal structure. Department of Public Enterprises - Annual Performance Plan 2018/19 71

73 Medium-term targets 2014/ / / / / / /21 implementation corporate structure. Programme performance indicators and annual targets for Transport and Defence for 2018/19 Performance indicator Audited/actual performance Estimated performance Promote commercial viability of SOCs operations 330mtpa by 2019 operational performance of sea ports and inland terminals from 28 to 35 sustainability None None None mtpa by None None None performance of sea ports and inland terminals from 28 to by None None None None None None model. mtpa by performance of sea ports and inland terminals from 28 to by model. None performance of sea ports and inland terminals from 28 to by model. structure. None None airlines. structure for State implementation corporate structure. implementation corporate structure. 72 Department of Public Enterprises - Annual Performance Plan 2018/19

74 None performance of sea ports and inland terminals from 28 to None Report on Denel Quarterly targets for Transport and Defence for 2018/19 Performance indicator Reporting period Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th Promote commercial viability of SOCs operations 2019 Annually mtpa by None None mtpa by 2019 operational performance of sea ports and inland terminals from 2019 Quarterly performance of sea ports and inland terminals from 28 to performance of sea ports and inland terminals from 28 to by performance of sea ports and inland terminals from 28 to by performance of sea ports and inland terminals from 28 to Annually None None Annually Report on implementation of plan. Monitor implementation of plan Monitor implementation of plan Monitor implementation of plan structure. Annually implementation of structure None None None implementation corporate structure Department of Public Enterprises - Annual Performance Plan 2018/19 73

75 SUB-PROGRAMME: RESEARCH AND ECONOMIC MODELLING 74 Department of Public Enterprises - Annual Performance Plan 2018/19

76 basis. 3.4 Sub-programme: Research and Economic Modelling Management - Economic modeling - Research modeling Objectives PROGRAMME OVERVIEW ON SERVICE DELIVERY transformation. Department of Public Enterprises - Annual Performance Plan 2018/19 75

77 Medium-term targets 2014/ / / / / / /21 impact assessment selected capital 2014/ / / / / / /21 impact assessment selected capital impact assessment of Strategic objectives/annual targets for Economic and Research Modelling for 2018/19 Strategic objectives Strategic Plan (5 year target) Audited/actual performance Estimated performance Accelerate transformation of the South African economy Conduct economic impact assessment on a selected SOC per annum. None Economic impact assessment report. Economic impact assessment on selected SAFCOL CAPEX completed. None impact assessment selected capital Conduct Macroeconomic and annum. basis. None None None Macroeconomic and industry None None None implications of SOCs compliance. Macroeconomic and industry implementation Macroeconomic and industry None Programme performance indicators and annual targets for Research and Economic Modelling for the year 2018/19. Performance indicator Audited/actual performance Estimated performance Medium-term targets Accelerate transformation of the South African economy 7.1 Impact Assessment reports None None None impact assessment of 76 Department of Public Enterprises - Annual Performance Plan 2018/19

78 2014/ / / / / / /21 Macroeconomic and 2 macroeconomic industry Performance indicator Audited/actual performance Estimated performance Medium-term targets 7.2 Macroeconomic and industry None None None Macroeconomic and Macroeconomic and None None None compliance. None Quarterly targets for Research and Economic Modelling for 2018/19 Performance indicator Reporting period Annual targets Quarterly targets 2018/19 1st 2nd 3rd 4th Accelerate transformation of the South African economy Assessment reports of Annually Assessment report of None assessment report of 7.2 Macroeconomic and conducted. 2 macroeconomic and conducted. None reports. Annually None None Department of Public Enterprises - Annual Performance Plan 2018/19 77

79 2014/ / / / / / /21 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R Transport and Defence Total Current payments Compensation of employees Social contributions Contractors Entertainment Budget and MTEF Table 4: Business Enhancement, Transformation and Industrialisation Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline 78 Department of Public Enterprises - Annual Performance Plan 2018/19

80 2014/ / / / / / /21 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R Venues and facilities Interest and rent on land Transfers and subsidies enterprises Public corporations Payments for capital assets Total Audited outcome Audited outcome Adjusted Appropriation Audited outcome Adjusted Appropriation Revised Baseline Revised Baseline Revised Baseline Revised Baseline Department of Public Enterprises - Annual Performance Plan 2018/19 79

81 Performance and expenditure trends 80 Department of Public Enterprises - Annual Performance Plan 2018/19

82 PART C: LINKS TO OTHER PLANS

83 PART C: LINKS TO OTHER PLANS Links to long-term infrastructure and other capital plans (MTSF and SOCs plans) Name of entity Legislative mandate Nature of operations Outputs Budget Timeframe Alexkor None None None Denel None None None None Eskom SAFCOL State Forests Act residential customers and redistributors. None None None None SA Express None None None Transnet Conditional Grants Not applicable Public Entities Not applicable None None None 82 Department of Public Enterprises - Annual Performance Plan 2018/19

84 2018/19 Annual Performance Plan Annexure 1 Programme name Strategic Objective in the 2014/ /2019 Strategic Plan model. performance performance and Industrialisation. and Industrialisation. and Industrialisation. and Industrialisation. and Industrialisation. economy economy. None Department of Public Enterprises - Annual Performance Plan 2018/19 83

85 Annexure 2 TECHNICAL INDICATOR DISCRIPTION (TIDs) Programme 1: Administration and Corporate Management 1.1 Indicator Title Human Resource Plan Data limitations None Type of indicator Output Calculation type Annually Yes Desired performance Indicator responsibility 1.2 Indicator Title Training interventions 84 Department of Public Enterprises - Annual Performance Plan 2018/19

86 Data limitations 1.2 Indicator Title Training interventions Letters of bursary allocation. Proof of attendance Data limitations None Type of indicator Output Calculation type Annually Yes Desired performance Indicator responsibility PROGRAMME 2: SOC GOVERNANCE ASSURANCES AND PERFORMANCE. 2.1 Indicator Title Develop Shareholder policy (SOC Reform) Type of indicator Output Department of Public Enterprises - Annual Performance Plan 2018/19 85

87 Calculation type None Annually Desired performance Indicator responsibility 2.2 Indicator Title Shareholder Anti-Fraud and Corruption Hotline established and maintained Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility 2.3 Indicator Title Lifestyle audits reports Number of lifestyle audits reports conducted. 86 Department of Public Enterprises - Annual Performance Plan 2018/19

88 2.3 Indicator Title Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility 2.4 Indicator Title SOCs forensic audits Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility Department of Public Enterprises - Annual Performance Plan 2018/19 87

89 2.5 Indicator Title Governance and Risk practises Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility 2.6 Indicator Title Appointment of new Board members Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance 88 Department of Public Enterprises - Annual Performance Plan 2018/19

90 Minister. Corporate plans submitted to DPE. 2.6 Indicator Title Appointment of new Board members Indicator responsibility DDG Sub-programme: Financial Assurance 3.1 Indicator Title SOCs Financial reviews reports Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility DDG 3.2 Indicator Title SOCs corporate plans review Data limitations None Type of indicator Output Department of Public Enterprises - Annual Performance Plan 2018/19 89

91 3.2 Indicator Title SOCs corporate plans review Calculation type None Annually Desired performance Indicator responsibility 3.3 Indicator Title Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility DDG: Financial Assurance. 3.4 Indicator Title Investment policy and monitoring framework. 90 Department of Public Enterprises - Annual Performance Plan 2018/19

92 3.4 Indicator Title Investment policy and monitoring framework. Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility DDG: Financial Assurance. 3.5 Indicator Title Optimal Capital Structure Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility DDG: Financial Assurance. Department of Public Enterprises - Annual Performance Plan 2018/19 91

93 3.6 Indicator Title Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility DDG: Financial Assurance. Programme 3: Business Enhancement and Industrialisation 4.1 Indicator Title SOCs skill development programme Data limitations None Type of indicator Outcome Calculation type None 92 Department of Public Enterprises - Annual Performance Plan 2018/19

94 4.1 Indicator Title SOCs skill development programme Quarterly No Desired performance Reduced unemployment rate. Indicator responsibility 4.2 Indicator Title CSI Strategic and high impact projects Data limitations None Type of indicator Output Calculation type Annually Yes Desired performance Indicator responsibility 4.3 Indicator Title Monitoring of Top 40 Strategic and Priority Projects Number of assessment reports produced. Department of Public Enterprises - Annual Performance Plan 2018/19 93

95 4.3 Indicator Title Monitoring of Top 40 Strategic and Priority Projects Data limitations None Type of indicator Output NonCalculation type Quarterly Yes Desired performance Indicator responsibility DDG 4.4 Indicator Title Localisation strategic framework. Data limitations None Type of indicator Output Calculation type Annually Yes Desired performance Support of localization by SOCs. Indicator responsibility 4.5 Indicator Title Enterprise and Ssupplier Ddevelopment (ESD) Sstrategy. 94 Department of Public Enterprises - Annual Performance Plan 2018/19

96 Desired performance 4.5 Indicator Title Enterprise and Ssupplier Ddevelopment (ESD) Sstrategy. Data limitations None Type of indicator Output Calculation type Annually None Desired performance Indicator responsibility Sub-programme: Energy and Resources 5.1 Indicator Title Monitor Eskom operational performance Number of ESKOM operational performance reports. Data limitations None Type of indicator Outcome Calculation type Quarterly No Indicator responsibility Department of Public Enterprises - Annual Performance Plan 2018/19 95

97 5.2 Indicator title Signed Shareholder Compact (ESKOM, SAFCOL and Alexkor) Data limitations None Type of indicator Output Calculation type Quarterly No Desired performance Indicator responsibility 5.3 Indicator Title Optimisation of the State Owned Mining Assets. Data limitations None Type of indicator Output Calculation type Quarterly No 96 Department of Public Enterprises - Annual Performance Plan 2018/19

98 5.3 Indicator Title Optimisation of the State Owned Mining Assets. Desired performance Indicator responsibility 5.4 Indicator Title Internal processing capacity at SAFCOL South African operations. Simple count Data limitations None. Type of indicator Output. Calculation type None Quarterly Desired performance Indicator responsibility 5.5 Indicator Title IFLOMA agreement restored. Data limitations None Type of indicator Output Department of Public Enterprises - Annual Performance Plan 2018/19 97

99 period. 5.5 Indicator Title IFLOMA agreement restored. Calculation type Yearly Yes. Desired performance Indicator responsibility 5.6 Indicator Title Electricity reserve margin. Data limitations None. Type of indicator Outcome. Calculation type Quarterly. Yes. Desired performance Indicator responsibility 5.7 Indicator Title Delivery of Eskom Capital Programme 98 Department of Public Enterprises - Annual Performance Plan 2018/19

100 5.7 Indicator Title Delivery of Eskom Capital Programme Data limitations None Type of indicator Output. Calculation type Quarterly. No. Desired performance Indicator responsibility 5.8 Indicator Title Eskom operating cost model Data limitations None. Type of indicator Output. Calculation type Quarterly. Yes. Desired performance Indicator responsibility Department of Public Enterprises - Annual Performance Plan 2018/19 99

101 Sub-programme: Transport and Defense 6.1 Indicator Title Tonnage moved on rail (Transnet) Data limitations None Type of indicator Outcome Calculation type Quarterly Yes Desired performance Indicator responsibility DDG: Transport and Defense. 6.2 Indicator Title Operational performance of cranes in sea ports and inlands terminals. Data limitations None Type of indicator Outcome Calculation type Quarterly Yes 100 Department of Public Enterprises - Annual Performance Plan 2018/19

102 6.2 Indicator Title Operational performance of cranes in sea ports and inlands terminals. Desired performance Viable inland intermodal and sea ports facilities Indicator responsibility DDG: Transport and Defense 6.3 Indicator title Signed Shareholder Compact (Transnet, SAX and Denel) Data limitations None Type of indicator Output Calculation type Quarterly No Desired performance Indicator responsibility DDG: Transport and Defense. 6.4 Indicator Title Denel operating cost model Data limitations None Type of indicator Output Department of Public Enterprises - Annual Performance Plan 2018/19 101

103 6.4 Indicator Title Denel operating cost model Calculation type None Annually Desired performance Indicator responsibility 6.5 Indicator Title Aviation optimal structure Data limitations None Type of indicator Output Calculation type None Annually Desired performance Indicator responsibility 102 Department of Public Enterprises - Annual Performance Plan 2018/19

104 Sub-programme: Research and Economic Modelling 7.1 Indicator Title Socio-Economic Impact Assessment Number of Socio Economic Impact Assessment conducted Data limitations None Type of indicator Output Calculation type None Quarterly No Desired performance Socio Economic Impact. Indicator responsibility 7.2 Indicator Title Data limitations None Type of indicator Output Calculation type None Quarterly No Department of Public Enterprises - Annual Performance Plan 2018/19 103

105 7.2 Indicator Title Desired performance Indicator responsibility 7.3 Indicator Title SOCs environmental compliance Data limitations None Type of indicator Output Calculation type Quarterly Yes Desired performance Indicator responsibility 104 Department of Public Enterprises - Annual Performance Plan 2018/19

106 Title of Publication: Department of Public Enterprises: Annual Performance Plan 2017/2018 DEPARTMENTAL INFORMATION Physical address Suite 301 Infotech Building 1090 Arcadia Street Postal address Private Bag X Telephone: Fax: Website: RP92/2018 ISBN: