Department of Transport Portfolio Committee on Transport Expenditure

Department of Transport Portfolio Committee on Transport Expenditure to Quarter 2 of 2012/13 13 November 2012 1

Contents: • • • Budget per programme Budget per economic classification Adjustments Virements Adjusted Budget vs Expenditure Analysis per Programme Expenditure on Conditional Grants Expenditure on Transfers Overview of Public Entities 2

BUDGET PER PROGRAMME Administration Voted (Main appropria -tion) Rollovers Unforesee n/ unavoida ble Virement s and shifts due to savings Selffinancing Declare d savings Significa nt and unforsee -able economi c and financial events Total adjustments Adjusted appropri a-tion 317, 473 - - 14, 969 - - 1, 407 16, 376 333, 849 88, 542 34, 900 - (5, 272) - - 322 29, 950 118, 492 Rail Transport 10, 298, 89 3 2, 308 - - 163 2, 471 10, 301, 3 64 Road Transport 17, 928, 80 9 4, 468 - - 297, 00 0 - 428 301, 89 6 18, 230, 7 05 70, 022 - 450, 000 - - - 284 450, 28 4 520, 306 138, 543 - 20, 000 (9, 697) - - 173 10, 476 149, 019 Public Transport 9, 986, 670 38, 700 - - - (32, 230) 353 6, 823 9, 993, 49 3 Total 38, 828, 95 2 80, 376 470, 000 - 297, 00 0 (32, 230) 3, 130 818, 27 6 39, 647, 2 28 3 Integrated Transport Planning Civil Aviation Maritime Transport

PER ECONOMIC CLASSIFICATION PER ECONOMIC CLASSIFICA-TION Voted (Main appropriati on) Current Payments 848, 083 Compensation of employees Goods and services Unforesee n/ unavoidab le Virements and shifts due to savings 80, 376 20, 000 (6, 100) 297, 000 - 3, 130 394, 406 1, 242, 489 316, 129 - - - 3, 130 319, 259 531, 954 80, 376 20, 000 (6, 100) 297, 000 - - 391, 276 923, 230 37, 976, 514 - 450, 000 4, 100 - (32, 230) - 421, 870 38, 398, 384 17, 324, 512 - - - - 17, 324, 512 9, 895, 405 - - 1, 000 - - - 1, 000 9, 896, 405 Higher education institutions 9, 648 - - - - 9, 648 Foreign governments and international organisations 6, 032 - - 3, 100 - - - 3, 100 9, 132 10, 227, 905 - 450, 000 - - 450, 000 10, 677, 905 17, 827 - - - - 17, 827 495, 185 - - (32, 230) 462, 955 4, 355 - - 2, 000 - - - 2, 000 6, 355 38, 828, 952 80, 376 470, 000 - 297, 000 (32, 230) 3, 130 818, 276 39, 647, 228 Transfers and subsidies Provinces and municipalities Departmental agencies and accounts Public corporations and private enterprises Non-profit institutions Households Payments for capital assets Machinery and equipment Total Rollovers Selffinancing Declared savings Significant and unforseeable economic and financial events Total adjustmen ts Adjusted appropriati on 4

ADJUSTMENTS: ROLLOVERS ROLL OVER (R’ 000) PRG 2: INTEGRATED TRANSPORT PLANNING Funds rolled over for the National Household Travel Survey 34, 900 PRG 3: RAIL TRANSPORT Funds rolled over for the development of Rail Policy and Act 2, 308 PRG 4: ROAD TRANSPORT Funds has rolled over for the S'hamba Sonke programme management support service, 4, 468 PRG 7: PUBLIC TRANSPORT Funds rolled over for the technical support and verification of bus contracts payments in Limpopo. 8, 500 Funds rolled over for the technical support and verification of road infrastructure payments in Limpopo 30, 200 TOTAL: ROLL OVER 80, 376 5

ADJUSTMENTS: UNFORESEEN AND UNAVOIDABLE PRG 5: CIVIL AVIATION Expenditure has been approved for the refurbishment of Mthatha Airport 450, 000 PRG 7: MARITIME TRANSPORT Expenditure has been approved for the removal of Seli 1 wreck from the Bloubergstrand beach near Table Bay TOTAL 20, 000 470, 000 OTHER ADJUSTMENTS Adjustments due to significant and unforeseeable economic and financial events 3, 130 6

ADJUSTMENTS: SELF FINANCING AND DECLARED SAVINGS SELF FINANCING PRG 4: ROAD TRANSPORT Funds collected from transaction fees and has been allocated to the department for the payment to the service provider for the maintenance and upgrade of the electronic National Traffic Information System (e. Na. TIs) 297, 000 DECLARED SAVINGS PRG 7: PUBLIC TRANSPORT Funds has been declared as under spending on Taxi recapitalisation transfer 32, 230 7

VIREMENTS FROM: Programme by economic classification TO: Motivation R thousand Programme 1 Goods and services Motivation R thousand Programme 1 Funds shifted from the sub-programme: Ministry due to the reprioritization on goods and services. (2, 000) Programme 2 Goods and services Programme by economic classification Machinery and equipment Funds shifted within the sub- programme to fund the purchases of the new vehicle for the Minister. 2, 000 Funds shifted to Programme 1: Administration in the subprogramme: Management to fund the consultants to address the Auditor. General's report 5, 272 Programme 1 Funds shifted from Programme 2: Integrated Transport Planning in the subprogramme: Macro Sector Planning due to a departmental reprioritization process. (5, 272) Goods and services 8

VIREMENTS CONTINUED FROM: Programme by economic classification TO: Motivation R thousand Programme 5 Goods and services Programme by economic classification Motivation R thousand Programme 5 Funds shifted from the sub-programme: Aviation Safety and Security. Funds were initially reprioritized for the International Civil Aviation day on goods and services (1, 000) Departmental agencies and accounts Funds shifted to the subprogramme: Aviation Oversight to fund the International Civil Aviation Day. Funds will increase the transfer to the South African Civil Aviation Authority. 1, 000 Funds shifted from the sub-programme: Aviation Regulation which were initially reprioritized on goods and services to fund the SADC Safety and Airworthiness (3, 100) Foreign governments and international organisations Funds shifted to the subprogramme: Aviation Oversight to fund the SADC Safety and Airworthiness Funds will increase the transfer to the International Civil Aviation Authority 3, 100 9

VIREMENTS CONTINUED FROM: Programme by economic classification TO: Motivation R thousand Programme 6 Goods and services Programme by economic classification Motivation R thousand Programme 1 Funds shifted from Programme 6: Maritime Transport in the subprogramme: Implementation, monitoring and evaluation due to a departmental reprioritisation process. (9, 697) Goods and services Funds shifted to Programme 1: Administration in the subprogramme: Management to fund the consultants to address the Auditor. General's report a and the International Maritime Organisation Diplomatic conference 9, 697 10

ADJUSTED BUDGET VS EXPENDITURE PER PROGRAMME Adjusted Appropriation Total Expenditure April to Sept 2012 Expenditure as % of Adjusted Appropriation Available budget Administration 333, 849 166, 799 50. 0% 167, 050 Integrated Transport Planning 118, 492 28, 402 24. 0% 90, 090 Rail Transport 10, 301, 364 5, 142, 026 49. 9% 5, 159, 338 Road Transport 18, 230, 705 9, 397, 997 51. 6% 8, 832, 708 Civil Aviation 520, 306 32, 609 6. 3% 487, 697 Maritime Transport 149, 019 53, 002 35. 6% 96, 017 9, 993, 493 2, 890, 415 28. 9% 7, 103, 078 39, 647, 228 17, 711, 250 44. 7% 21, 935, 978 Public Transport Total 11

ADJUSTED BUDGET VS EXPENDITURE CONTINUED PER ECONOMIC CLASSIFICATION Current Payments Adjusted Appropriation Total Expenditure April to Sept 2012 Expenditure as % of Adjusted Appropriation Available budget 1, 242, 489 391, 321 31. 5% 851, 168 Compensation of employees 319, 259 149, 820 46. 9% 169, 439 Goods and services 923, 230 241, 501 26. 2% 681, 729 38, 398, 384 17, 316, 269 45. 1% 21, 082, 115 Provinces and municipalities 17, 324, 512 7, 043, 942 40. 7% 10, 280, 570 Departmental agencies and accounts 10, 346, 405 4, 968, 200 48. 0% 5, 378, 205 Higher education institutions 9, 648 4, 876 50. 5% 4, 772 Foreign governments and international organisations 9, 132 3, 231 35. 4% 5, 901 10, 227, 905 5, 113, 953 50. 0% 5, 113, 952 17, 827 8, 000 44. 9% 9, 827 462, 955 174, 067 37. 6% 288, 888 6, 355 3, 660 57. 6% 2, 695 6, 355 3, 597 56. 6% 2, 758 - 63 N/A (63) 39, 647, 228 17, 711, 250 44. 7% 21, 935, 978 Transfers and subsidies Public corporations and private enterprises Non-profit institutions Households Payments for capital assets Machinery and equipment Payments for financial assets Total 12

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME Programme 1: Administration The programme has been allocated a total adjusted budget of R 333. 8 million. To date the programme has spent R 166. 8 million or 50% of the allocated adjusted budget, against the benchmark expenditure drawings target of R 149. 7 million or 45%. 13

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont. ) Programme 2: Integrated Transport Planning The programme has been allocated a total adjusted budget of R 118. 5 million. The programme has spent R 28. 4 million to date or 24% of the allocated adjusted budget, against the benchmark expenditure drawings target of R 44. 3 million or 37%. The under spending is mainly due delays on projects such as the National Household Travel Survey, the update of the National Freight databank, and cross border optimization plan. The service level agreements have been signed on most of the projects and the expenditure is expected to escalate in the coming months. 14

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont. ) Programme 3: Rail Transport A total adjusted budget of R 10. 301 billion has been allocated. The programme has spent R 5. 142 billion to date or 50% of the allocated adjusted budget, against the benchmark expenditure drawings target of R 5. 149 billion or 50%. The under spending of R 7 million against the expenditure drawings target was mainly due in the following goods and services projects; Feasibility Study Rail Manufacturing, Rail Economic Regulator, Rail safety gap analysis and Institutional Reform in Republic of South Africa (RSA) project and the delay in the approval of Rail Policy & Act. Expenditure is expected to escalate in the coming months. 15

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont. ) Programme 4: Road Transport A total adjusted budget of R 18. 231 billion has been allocated. The programme has spent R 9. 398 billion to date or 52% of the allocated adjusted budget, against the benchmark expenditure drawings target of R 9. 406 billion or 52%. The under spending is mainly due delays on the following projects: Decade of Action for Road Safety, and review of drivers training manual. The programme is busy with the process to appoint the service providers and expenditure is expected to escalate in the coming months. 16

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont. ) Programme 5: Civil Aviation A total budget of R 520. 8 million has been allocated. The programme has spent R 32. 6 million to date or 6. 3% of the allocated adjusted budget, against the benchmark expenditure drawings target of R 37. 7 million or 7. 2%. The under spending is mainly due to delays in the establishment of Regulating Committee and the establishment of the Civil Aviation Safety Investigation Board. 17

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont. ) Programme 6: Maritime Transport A total adjusted budget of R 149 million has been allocated. The programme has spent R 53 million to date or 36% of the allocated adjusted budget and against the benchmark expenditure drawings target of R 67. 5 million or 45%. The under spending is mainly due to delays in concluding the contract for the watchkeeping services and late invoices for oil pollution prevention. 18

DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont. ) Programme 7: Public Transport A total adjusted budget of R 9. 993 billion has been allocated. The programme has spent R 2. 890 billion to date or 30% of the allocated adjusted budget and against the benchmark expenditure drawings target of R 2. 970 billion or 30%. The under spending is mainly due to lengthy administration process with regard to the transfer payment for Taxi recapitalisation. The under spending on goods and services was mainly due to delays in the following projects: the development of the scholar transport framework, the development of migration plan for scholar transport and integrating the Shova Kalula into scholar transport services. Expenditure is expected to escalate in the coming months of the financial year. 19

EXPENDITURE ON CONDITIONAL GRANTS Details of Grants Cumulative amounts (R’ 000) Quarter 1 July August Sept Payment Schedules: Rural Roads Asset Management 0 37, 295 Public Transport Infrastructure & Systems 0 228, 000 458, 000 Provincial Roads Maintenance 1, 995, 463 4, 390, 017 Public Transport Operations 1, 122, 490 1, 467, 870 1, 813, 250 2, 158, 630 Rural Roads Asset Management 0 31, 967 37, 295 Public Transport Infrastructure & Systems 0 158, 000 228, 000 458, 000 Provincial Roads Maintenance 1, 995, 463 4, 211, 580 4, 390, 017 Public Transport Operations 1, 122, 490 1, 467, 870 1, 813, 250 2, 158, 630 Rural Roads Asset Management 0 5, 328 0 0 Public Transport Infrastructure & Systems 0 70, 000 0 0 Provincial Roads Maintenance 0 178, 437 0 0 Public Transport Operations 0 0 Payments made: Variances: 20

EXPENDITURE ON CONDITIONAL GRANTS (Cont. ) Details of Grants Cumulative amounts (R’ 000) Quarter 1 July August Sept Variances: Rural Roads Asset Management 0 5, 328 0 0 Public Transport Infrastructure & Systems 0 70, 000 0 0 Provincial Roads Maintenance 0 178, 437 0 0 Public Transport Operations 0 0 Variances in July 2012 were due to payments that were rejected on the Safety. Net system: Rural Roads Asset Management Grant: • Bank accounts were amended - payments were rejected and paid in August 2012: Uthungu, Amajuba and Umgungundlovu District Municipalities Rm 1, 776 each Public Transport Infrastructure & Systems Grant: • Payments to Metropolitan Municipalities were rejected and paid in August 2012: Ekhurhuleni R 10 m, Nelson Mandela Bay R 10 m and Johannesburg R 50 m Provincial Roads Maintenance Grant: • The payment to North West Provincial Treasury was rejected and paid in August 2012 21

EXPENDITURE ON CONDITIONAL GRANTS (Cont. ) Provincial Roads Maintenance Grant: Summary 2011/12 to Quarter 2 of 2012/13 Total paid to Provinces R’ 000 % 10, 847, 371 100. 00% Total spent by Provinces 8, 591, 723 79. 2% Unspent to Quarter 2 of 2012/13 2, 255, 648 20. 8% Public Transport Operations Grant: Summary 2010/11 to Quarter 2 of 2012/13 Total paid to Provinces Total spent by Provinces Unspent to Quarter 2 of 2012/13 R’ 000 % 10, 185, 936 100. 0% 9, 732, 449 95. 55% 453, 487 4. 45% 22

EXPENDITURE ON CONDITIONAL GRANTS (Cont. ) Public Transport Infrastructure and Systems Grant: Summary 2005/06 to Quarter 2 of 2012/13 R’ 000 % Total paid to Municipalities 16, 113, 446 100. 0% Total spent by Municipalities 11, 467, 244 71. 2% 4, 646, 202 28. 8% Unspent to Quarter 2 of 2012/13 Rural Road Asset Management Grant: Summary 2011/12 to Quarter 2 of 2012/13 Total paid to Municipalities Total spent by Municipalities collectively R’ 000 72, 734 100% 2, 727, 851 100%+ Notes: Of the 21 Municipalities: • 9 Spent much more than the grant that was received on road asset management • 4 Did not yet spend funds received • 6 Started spending in the 1 st Quarter of 2012/13 – No funds were transferred in the 1 st Quarter 23

EXPENDITURE ON TRANSFERS (EXCL. CONDITIONAL GRANTS) Recipient Transfer (R’ 000) Phased Budget Phased Variance Notes Passenger Rail Agency of S. A. 5, 113, 953 0 S. A. National Roads Agency 4, 864, 026 0 Road Traffic Management Corporation 61, 809 41, 206 (20, 603) Railway Safety Regulator 19, 675 0 S. A. Civil Aviation Authority 8, 013 0 Ports Regulator 7, 535 0 Marine Rescue Co-Ordination Centre 3, 078 3, 079 1 S. A. Maritime Safety Authority 1, 565 0 Road Traffic Infringements Agency 2, 500 0 0 104 8, 000 8, 230 0 684 Universities 6, 207 8, 295 2, 088 Paid per schedules Foreign memberships 3, 231 3, 016 (215) Most fees already paid Transport Education & Training Authority S. A. National Taxi Association Search and Rescue organisations Advance payment Await training schedules Await reports 24

OVERVIEW OF PUBLIC ENTITIES R’ 000: As at 30 September 2012 - Financial Year 2012/13 Entity Retained Earnings Surplus (Deficit) Cash and Cash Equivalents Cash increase (decrease) Net Current Assets ACSA 9, 957, 849 703, 829 3, 196, 171 1, 215, 786 2, 832, 518 ATNS 1, 105, 546 151, 253 582, 640 56, 971 560, 330 (46, 056, 084) 411, 713 5, 494, 011 1, 249, 000 (4, 506, 612) RAF Of which 41, 688, 126 Provision for outstanding claims PRASA Group (2, 305, 191) (523, 561) 4, 130, 842 (329, 234) 3, 084, 468 SANRAL (7, 073, 602) (925, 909) 6, 154, 232 (3, 077, 699) 2, 934, 318 SACAA 67, 023 16, 086 185, 534 (4, 982) 99, 570 SAMSA 176, 346 (53, 778) 171, 863 56, 607 165, 202 C-BRTA 101, 610 27, 012 111, 139 26, 488 94, 313 22, 488 11, 150 8, 658 7, 370 29, 211 (207, 457) (4, 283) 212, 366 81, 925 (215, 184) 15, 785 9, 077 1, 668 15, 015 8, 518 3, 049 8, 032 2, 272 7, 592 RSR RTMC RTIA PR 25

ABBREVIATIONS Abbreviation Meaning PRASA RSR SANRAL RTMC CBRTA RTIA RAF ACSA ATNS SACAA SAMSA PR PRMG PTIS PTOG BEE SADC Passenger Rail Agency of South Africa Ltd. Railway Safety Regulator South African National Roads Agency SOC Ltd. Road Traffic Management Corporation Cross Border Road Transport Agency Road Traffic Infringements Agency Road Accident Fund Airports Company of South Africa Ltd. Air Traffic and Navigation Services Company Ltd. South African Civil Aviation Authority South African Maritime Safety Authority Ports Regulator of South Africa Provincial Roads Maintenance Grant Public Transport Infrastructure and Systems Grant Public Transport Operations Grant Black Economic Empowerment Southern African Development Community 26

Thank you 27