PRESENTATION TO THE PORTFOLIO COMMITTEE ON TELECOMMUNICATIONS AND

PRESENTATION TO THE PORTFOLIO COMMITTEE ON TELECOMMUNICATIONS AND POSTAL SERVICES PRESENTATION OF PERFORMANCE FOR QUARTER 1 & QUARTER 2 OF THE 2017/18 FINANCIAL YEAR 20 February 2018

FIRST QUARTER PERFORMANCE INFORMATION PERIOD: 01 APRIL 2017 TO 30 JUNE 2017 Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 2

QUARTER 1 PERFORMANCE OVERVIEW q Department committed to achieving 26 Annual Performance Plan quarterly targets by the end of the 1 st quarter of the 2017/18 financial year. q This is a total number of APP quarterly targets of all five (5) Programmes of the DTPS. q As at the end of the first Quarter, 22 quarterly targets were Achieved while 4 of the quarterly targets were Not Achieved. q The above reflects 85% achievement as at the end of Quarter 1 22 25 Not Achieved, 15% 20 Achieved, 85% 15 4 10 5 0 Achieved Not Achieved Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 3

QUARTER 1 SIGNIFICANT ACHIEVEMENTS (1) q Development of ICT Policies & Strategies § The Department commenced with the process of the formal drafting and revision of prioritised ICT Legislation in line with the National Integrated ICT Policy White Paper. § The ICT SMME Development Strategy, the National e-Strategy and the e. Government Strategy were gazetted for public consultation. Extensive public consultations on the 3 Strategies were undertaken in all Provinces. q SOC Oversight § The Department finalised the SOC Rationalisation Report focusing on the State ICT Infrastructure Company and State IT Company. § With regards to the Postbank, the Postbank board members were appointed by Minister and the preferred option for the Bank Controlling Company was finalised. q Cybersecurity § The Operations of the Virtual Cybersecurity Hub were facilitated and 2016/17 quarter 4 monitoring report was developed. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 4

QUARTER 1 SIGNIFICANT ACHIEVEMENTS (2) q Advancing SA’s ICT Agenda In order to promote ICT policies and strategies at the International level and increase partnerships and investments, as well as increase SA’s presence and influence, the Department developed and consulted on the following: § Draft RSA Position on SADC Second Phase of Glide Path § Draft RSA Position for WTDC focused on developmental agenda on the internet and digital economy § Draft RSA Position on the reform of UPU § RSA Framework towards development of RSA position on localisation of ICT skills and innovation as part of the BRICS Partnership Programme q Implementation of the Climate and Culture Survey Action Plan 28% of the identified interventions were achieved in the First Quarter although the target was set at 25%. These included the following amongst others: § Hosting of Brown Bag sessions with all staff to discuss and address key matters stemming from the results of the Climate and Culture Survey § Pro-active communication to all staff of decisions taken by management structures § Improvement of the Infrastructure Bandwidth at DTPS. § Configuration of leave and user acceptance testing of the Smartgov System Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 5

QUARTER 1 AREARS OF UNDER-ACHIEVEMENT The Department did not achieve 4 of its 22 planned targets for Quarter 1, as reflected below: q Finalisation of the Organisational Structure The Department designed the draft high-level functional structure options. q Revision of prioritised Bills as per Ministerial direction The Department revised the prioritised Bills as per direction from the Director-General and submitted to Minister in June 2017, following which extensive engagements were undertaken with Minister to source the required direction. q Connectivity of 200 identified sites - Broadband The connectivity target was not met however the Department formally mandated the identified SOCs (SITA and Broadband Infraco) to roll-out Phase 1 of SA connect. q Conducting of Preliminary Technical and Regulatory studies in preparation for WRC- 19 and development of the first draft report The Department was not able to finalise the first draft Report however multi-country Technical and Regulatory Reports were submitted at ITU-R. Further details with regards to the above-mentioned targets as well as an explanation of the variance are reflected in the presentation Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 6

ADMINISTRATION Annual Target Quarterly Target Actual Performance Organisational structure approved and implemented Organisation al Structure finalised Draft high-level functional structure options designed Climate and Culture Survey Action Plan implemented and monitored 25% of identified interventions implemented and monitored in line with the Climate and Culture Survey Action Plan 28% of the identified interventions were achieved by end of Q 1 Status Not Achieved Explanation of Variance Current progress to date Protracted engagements towards developing functional structure options due to need for alignment between strategy and Service Delivery Model Functional organisational structure has been developed and submitted to the EA. N/A The consultation process with relevant stakeholders has commenced and process to appoint Work Study service provider is near conclusion Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 7

ICT INTERNATIONAL AFFAIRS (1) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date One (1) RSA Position developed in pursuit of BRICS Partnership Programme on the establishment of the BRICS Institute for Future Networks RSA Framework towards the position on localisation of ICT skills and innovation developed The RSA Framework towards development of RSA Position focused on localisation of ICT skills and innovation was developed Achieved N/A One (1) RSA Position developed for SADC focused towards the reduction of Cost to Communicate for affordable, reliable, accessible and secure ICT Infrastructure Draft RSA Position on SADC Second Phase of Glide Path developed The draft RSA position paper on SADC Second Phase of Glide Path was developed as planned Achieved N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 8

ICT INTERNATIONAL AFFAIRS (2) Annual Target One (1) RSA Position developed for SADC focused towards the reduction of Cost to Communicate for affordable, reliable, accessible and secure ICT Infrastructure Quarterly Target Actual Performance Status Draft RSA Position on SADC Second Phase of Glide Path consulted with ICT industry Following a workshop with the Regulator (ICASA) and Mobile operators, SA operators agreed to the SADC Glide Path, as part of the implementation of the SADC Home and Away Roaming. The draft RSA Position was developed indicating the status of the Glide Path. Draft RSA position for WTDC was developed. Stakeholder meetings were held to consult on RSA position for WTDC One (1) RSA Position Draft RSA developed for WTDC Position focused on developed and developmental agenda on consultation with the internet and digital identified economy stakeholders commenced Explanation of Variance Current progress to date Achieved N/A N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 9

ICT INTERNATIONAL AFFAIRS (3) Annual Target Quarterly Target Actual Performance Status One (1) RSA Position developed for the form of UPU in favour of equitable representation and democratic decision making Draft RSA Position developed and consultation with identified stakeholders commenced Draft RSA Position on UPU was developed and consulted with UPU, national, regional and international stakeholders. Concept document and proposal was developed and agreement was undertaken between UPU & DTPS for the operational readiness of e-Commerce at SAPO. 2 partnerships Concept secured for the Digital document Economy towards ICT developed on enterprise positioning development, SMME SAPO as an egrowth, e-skills and Commerce Hub innovation in line with for ICT SMMEs the ICT SMME Strategy Explanation of Variance Current progress to date Achieved N/A N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 10

ICT INTERNATIONAL AFFAIRS (4) Annual Target Quarterly Target 2 partnerships Proposal on secured for the Digital opportunities for Economy towards ICT SA on ICT enterprise Enterprise development, SMME development, growth, e-skills and SMME growth innovation in line with and innovation the ICT SMME developed Strategy Actual Performance 3 partnership proposals were engaged on and a several pledges were received. Status Achieved Explanation of Variance N/A Current progress to date N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 11

ICT POLICY, RESEARCH AND CAPACITY DEVELOPMENT (1) Annual Target Quarterly Target Draft ICT Prioritised Bills Legislation revised as per developed in Ministerial direction line with the National Integrated ICT Policy White Paper Formal drafting of prioritised Bills commenced ICT SMME Strategy approved Actual Performance Status Explanation of Variance Current progress to date Prioritised Bills revised as per direction from the Director -General as well as DTPS workshop. Revised prioritised Bills submitted to Minister (ECA, PSA and i. NESI Bills) Not Approval of Achieved Bills required extensive engagement with Ministry Formal Drafting of prioritised Bills have commenced Achieved N/A N/A ICT SMME Strategy The ICT SMME submitted to Cluster Support Strategy was for endorsement endorsed by the ESEID Cluster Prioritised Bills have been approved by Cabinet and gazetted for public consultation. Extensive stakeholder engagements have been undertaken Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 12

ICT POLICY, RESEARCH AND CAPACITY DEVELOPMENT (2) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date ICT SMME Strategy Public consultations on the Strategy approved public consultation Strategy were undertaken conducted between May and June in all 9 Provinces. Achieved N/A National ee-Strategy approved submitted to Cluster System for endorsement The National e-Strategy was presented to the ESEID Cluster and the Cabinet Committee and was Gazetted in April 2017. Written public comments were received. Achieved N/A National ee-Strategy public Strategy approved consultation conducted e-Strategy public consultations have been conducted in all Provinces between May and June 2017 Achieved N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 13

ICT POLICY, RESEARCH AND CAPACITY DEVELOPMENT (3) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date e-Government The e-Government Strategy approved Strategy was submitted to Cluster and submitted to gazetted in April 2017. Cluster System for endorsement Achieved N/A e-Government Provincial Consultations on the Strategy approved public National e-Government consultation Strategy was conducted in all 9 conducted provinces Achieved N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 14

ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT (1) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date Implementation of the SOE Rationalisation Report focusing on the State ICT Infrastructure Company and State IT Company SOC Rationalisation Report submitted for approval SOC Rationalisation report finalised and submitted to the Minister for approval. Achieved N/A Corporatisation of the Postbank and licensing facilitated Board members appointed for Postbank board members were appointed by Minister. Achieved N/A Options on the establishment of the Bank Controlling Company finalised Bank controlling company preferred option was finalised Achieved N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 15

ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT (2) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date Corporatisation of the Postbank and licensing facilitated Compliance Plan for Postbank developed Compliance plan for Postbank was developed and monitored Achieved N/A Service delivery performance and compliance of SOC against strategic plans and relevant prescripts monitored and evaluated and quarterly state of the SOC reports developed Consolidated State of the SOCs Report for 2016/17 Quarter 4 developed and submitted 4 th quarter consolidated state of SOCs report was developed and submitted. Achieved N/A 4 th Quarter joint performance review meeting held with Chief Executive Officers of the SOCs and Departmental Executive Committee 4 th quarter joint performance review meeting between CEOs and DEC was hosted Achieved N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 16

ICT INFRASTRUCTURE SUPPORT (1) Annual Target Quarterly Target Actual Performance Status Project Manage Broadband the roll-out of Connectivity the Broadband Implementation Plan connectivity finalised and 200 Implementation sites connected Plan Phase 1 towards connecting 2700 identified sites The Department has formally mandated the State Owned Companies (SITA and Broadband Infraco) to roll-out Phase 1 of SA connect Operations of the Virtual Cybersecurity Hub facilitated and monitored Operations of the Achieved Virtual CS Hub were facilitated and 2016/17 quarter 4 monitoring report developed. Operations of the Virtual Cybersecurity Hub facilitated and 2016/17 quarter 4 monitoring report developed Explanation of Variance Current progress to date The delay in The Department and the Not SOCs have signed Master Achieved the appointment Service Agreements to of the service enable implementation of provider has the project. impacted in The Infrastructure roll-out the delivery of plan has been finalised. the Q 1 2 sites connected as a targets proof-of-concept. District Task teams have been established through Provincial Steering Committees. N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 17

ICT INFRASTRUCTURE SUPPORT (2) Annual Target Preliminary technical and regulatory studies conducted to inform Draft SA’s position for WRC-19 Quarterly Target Preliminary Technical and Regulatory studies conducted in preparation for WRC- 19 and first draft report developed Actual Performance Multi-country Technical and Regulatory Reports submitted at ITU-R on: • In band adjacent band co-existence and compatibility studies • Proposed frequency arrangement for the band 3300 -3600 MHz, • Considerations for the use of terrestrial IMT systems in the band 1427 -1518 MHz. Status Explanation of Variance Lack of Not Achieved human resources to develop first draft report Current progress to date Final draft preliminary views/positions have been developed which includes technical & regulatory studies conducted & submitted to ITU-R Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 18

FINANCIAL INFORMATION QUARTER ONE PERIOD: 01 APRIL TO 30 JUNE 2017 Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 19

EXPENDITURE PER PROGRAMME Budget R'000 Budget % Expenditure R'000 Available R'000 % Spent Administration 198 130 12% 49 934 144 308 25% ICT International Affairs 50 920 3% 30 399 17 394 60% Policy Research & Capacity Dev 85 523 5% 16 453 73 912 19% ICT Enterprise Dev & SOE Oversight 251 691 16% 62 864 188 251 25% ICT Infrastructure Support 1 027 942 64% 176 158 854 533 17% Total 1 614 206 100% 335 808 1 278 398 21% Programme Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 20

EXPENDITURE PER ECONOMIC CLASSIFICATION Classification Budget R’ 000 Budget % Expenditure R’ 000 Available R’ 000 Spent % Compensation of Employees 214 706 13% 52 555 162 151 24% Goods & Services 580 836 36% 31 594 549 242 5% Transfers & Subsidies 806 713 50% 249 543 557 170 31% - 0% 21 (21) - 11 951 1% 2 095 9 856 18% 1 278 398 21% Payments for Financial Assets Payments for Capital Assets Total 1 614 206 100% 335 808 Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 21

TRANSFERS APPROPRIATION ACTUAL TRANSFER AVAILABLE % SPENT Foreign Governments & International Organisations 25 532 24 533 999 96% NEMISA 85 785 25 095 60 690 29% USAASA 75 684 19 767 55 917 26% Sentech: Dual Illumination 193 000 96 500 - 50% Sentech: Migration of Digital Signals 53 000 - 100% USAF 54 614 10 614 44 070 19% SAPO: Broadcasting Digital Migration 240 000 - 240 000 0% USAF: Broadcasting Digital Migration 79 098 19 774 59 324 25% 806 713 249 283 557 500 31% Total Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 22

SECOND QUARTER PERFORMANCE INFORMATION PERIOD: 01 JULY 2017 TO 30 SEPTEMBER 2017 Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 23

QUARTER 2 PERFORMANCE OVERVIEW q Department committed to achieving 23 Annual Performance Plan (APP) quarterly targets by the end of the second quarter q This is a total number of APP quarterly targets of all five (5) Programmes of the DTPS. q As at the end of the second Quarter, 20 quarterly targets were Achieved while 3 of the quarterly targets were Not Achieved. q The above reflects 87% achievement as at the end of Quarter 2 20 Not Achieved, 13% 20 18 16 14 12 10 Achieved, 87% 3 8 6 4 2 0 Achieved Not Achieved Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 24

QUARTER 2 SIGNIFICANT ACHIEVEMENTS (1) q Development of ICT Policies & Strategies § The SEIAS Reports were developed on three prioritised Bills after which the Department concluded the drafting of the prioritised Bills. § The ICT SMME Support Strategy, the National e-Strategy and the National e. Government Strategy and Roadmap were revised and submitted to the ESEID Cluster for tabling and consideration. q SOC Oversight § Mandates for the new State ICT Infrastructure Company and the State IT Company were developed. q Cybersecurity § The Operations of the Virtual Cybersecurity Hub were facilitated and the 2017/18 Quarter 1 monitoring report was developed. q Preliminary Technical and Regulatory studies conducted in preparation for WRC-19 and second draft report developed § The second Draft Report on Preliminary Technical and Regulatory Studies in preparation for WRC-19 was developed. § Furthermore, SA preliminary positions were developed and submitted at relevant Regional Forums (SADC and ATU). Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 25

QUARTER 2 SIGNIFICANT ACHIEVEMENTS (2) q Advancing SA’s ICT Agenda In order to promote ICT policies and strategies at the International level and increase partnerships and investments, as well as increase SA’s presence and influence, the Department developed and consulted on the following: § RSA Position in pursuit of BRICS Partnership Programme on the establishment of the BRICS Institute for Future Networks. § RSA position focused towards the reducing of SADC Second Phase glide Path which was advanced at the SADC ICT Ministerial meeting. q Implementation of the Climate and Culture Survey Action Plan 50% of the identified interventions were achieved by the end of the second Quarter. These included the following amongst others: § Hosting of Brown Bag session with all staff on ICT trends. § Designing of a Leadership Breakthrough and Alignment session. § Hosting of monthly inter-branch meetings to foster synergy and alignment of cross-cutting projects. § Creating of platforms for consultation of all staff members when taking decisions impacting DTPS. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 26

QUARTER 2 AREARS OF UNDER-ACHIEVEMENT The Department did not achieve 3 of its 23 planned targets for Quarter 1, as reflected below: q Conducting of job evaluations The Department was not able to conduct job evaluations for the newly created posts and revised jobs as planned. However the analysis of employee qualifications and experience was conducted for all employees. q Development of draft Business Case on SAPO as an e-Commerce Hub and submission of Business Case for approval Albeit that the draft business case was developed on SAPO as an e-commerce Hub, there were delays in submitting the Business Case for approval. q Connectivity of additional 800 identified sites - Broadband The connectivity target was not met however the Department signed the Tripartite Master Services Agreement (MSA) between DTPS, SITA and BBI. Further details with regards to the above-mentioned targets as well as an explanation of the variance are reflected in the presentation Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 27

ADMINISTRATION (1) Annual Target Organisational structure approved and implemented Quarterly Target Actual Performance Analysis of employee Analysis of qualifications and employee experience qualifications and conducted for experience affected employees. conducted for all employees. Status Explanation of Variance Achieved N/A Job evaluations not Not Job evaluations conducted for newly yet conducted Achieved are dependent created posts and on the Work revised jobs Study analysis which is yet to be completed. Current progress to date N/A Functional organisational structure has been developed and submitted to the EA. The consultation process with relevant stakeholders has commenced and process to appoint Work Study service provider is near conclusion Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 28

ADMINISTRATION (2) Annual Target Quarterly Target Climate and 50% of identified Culture Survey interventions Action Plan implemented and implemented monitored in line with and monitored the Climate and Culture Survey Action Plan Actual Performance 50% of the Action Plan interventions were achieved as planned Status Explanation of Variance Achieved N/A Current progress to date N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 29

ICT INTERNATIONAL AFFAIRS (1) Annual Target One (1) RSA Position developed in pursuit of BRICS Partnership Programme on the establishment of the BRICS Institute for Future Networks Quarterly Target Actual Performance RSA Position was developed focusing developed in pursuit of on areas of BRICS Partnership innovation, local Programme on the ICT skills, research establishment of the and development BRICS Institute for the BRICS Future Networks Institute for Future Networks One (1) RSA BRICS partners Position developed engaged on the in pursuit of BRICS RSA Position Partnership Programme on the establishment of the BRICS Institute for Future Networks Status Explanation of Variance Current progress to date Achieved N/A All BRICS partners Achieved N/A were engaged through electronic engagement platforms, relevant forums and the BRICS ICT Ministerial meeting N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 30

ICT INTERNATIONAL AFFAIRS (2) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date One (1) RSA Position developed for SADC focused towards the reduction of Cost to Communicate for affordable, reliable, accessible and secure ICT Infrastructure RSA Position on SADC Second Phase of Glide Path finalized, approved and implementation commenced The RSA position focused Achieved N/A towards the reducing of SADC Second Phase glide Path was developed and finalized with ICASA. SADC ICT Ministerial meeting was held in September 2017 where the RSA position was advanced. N/A One (1) RSA Position developed for SADC focused towards the reduction of Cost to Communicate for affordable, reliable , accessible and secure ICT Infrastructure SADC ICT Ministerial meeting toward regional integration hosted The SADC ICT Ministerial Achieved N/A Meeting towards regional integration was hosted on 04 - 07 September 2017, in the Kingdom of Kwa-Zulu, Natal, and Durban. Outcomes included SADC Declaration on the 4 th Industrial Revolution. N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 31

ICT INTERNATIONAL AFFAIRS (3) Annual Target Quarterly Target Actual Performance One (1) RSA Position developed for WTDC focused on developmental agenda on the internet and digital economy Consultation with identified stakeholders on the draft RSA Position concluded 2 partnerships secured for the Digital Economy towards ICT enterprise development, SMME growth, eskills and innovation in line with the ICT SMME Strategy Draft Business Draft business case was Case developed on SAPO as an an e-commerce Hub. e-Commerce Hub in line with SAPO Strategic Turn-around Plan and submitted for approval Status Explanation of Variance Consultation was done Achieved N/A with identified stakeholders. Both South Africa’s proposals on Gender Mainstreaming and Accessibility for People with Disability accepted as African common proposal. Not Delays in the Achieved Submission of the Business Case for approval was due to the extensive consultation needed between the Department and SAPO. Current progress to date N/A Engagements concluded with SAPO and UPU on the e-Commerce implementation. Engagements held with National Treasury on the e. Commerce Cooperation Agreement. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 32

ICT INTERNATIONAL AFFAIRS (4) Annual Target Quarterly Target 2 partnerships Proposal on secured for the Digital opportunities for Economy towards ICT SA on ICT enterprise Enterprise development, SMME development, growth, e-skills and SMME growth innovation in line with and innovation the ICT SMME consulted with Strategy relevant stakeholders Actual Performance Internet for All initiative adopted and approved by Cabinet focused on ICT enterprise development, SMME development and innovation. A partnership agreement has been signed between SENTECH and Intelsat on the deployment of satellite infrastructure in the country. Status Explanation of Variance Achieved N/A Current progress to date N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 33

ICT POLICY, RESEARCH AND CAPACITY DEVELOPMENT (1) Annual Target Draft ICT Legislation developed in line with the National Integrated ICT Policy White Paper ICT SMME Strategy approved Quarterly Target Actual Performance Status Explanation of Variance Current progress to date Initial SEIAS Reports have Achieved N/A Reports been developed on three developed of all prioritised Bills N/A Formal drafting of three Achieved N/A of prioritised Bills have been concluded N/A ICT SMME Strategy submitted to Cluster for approval N/A ICT SMME Support Achieved N/A Strategy was submitted to the ESEID Cluster on 11 October 2017 Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 34

ICT POLICY, RESEARCH AND CAPACITY DEVELOPMENT (2) Annual Target Quarterly Target Actual Performance Status Explanation of Variance National e-Strategy approved revised and submitted to cluster for approval The National e-Strategy was Achieved N/A revised and submitted to ESEID Cluster for approval. e-Government Strategy approved Strategy submitted to cluster for approval The revised National e. Achieved N/A Government Strategy and Roadmap was submitted to ESEID Cluster with approved SEIAS document by DPME Current progress to date N/A The SEIAS Final Report was signed-off by DPME for submission of the National e. Strategy to the Cluster. N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 35

ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT (1) Annual Target Implementation of the SOE Rationalisation Report focusing on the State ICT Infrastructure Company and State IT Company Corporatisation of the Postbank and licensing facilitated Quarterly Target Actual Performance Mandate for the new State IT Company was Company developed as planned developed Status Explanation of Variance Current progress to date Achieved N/A Mandate for the new Achieved N/A new State Infrastructure Company was developed Company as planned developed N/A Application for the licensing of the Postbank facilitated N/A Bank license application Achieved N/A was facilitated, and follow -up engagements with SARB were held Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 36

ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT (2) Annual Target Quarterly Target Actual Performance Status Explanation of Variance Current progress to date The consolidated state Achieved N/A of SOCs report developed and submitted as planned N/A The meeting between Achieved N/A the CEOs of the SOCs review meeting and the DEC took held with Chief place on 21 Executive Officers September 2017 of the SOCs and Departmental Executive Committee N/A Service delivery Consolidated performance and State of the SOCs compliance of SOC Report for against strategic plans 2017/18 Quarter 1 and relevant prescripts developed and monitored and evaluated submitted and quarterly state of the 1 st Quarter joint SOC reports developed performance Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 37

ICT INFRASTRUCTURE SUPPORT (1) Annual Target Project Manage the roll-out of the Broadband connectivity Implementation Plan Phase 1 towards connecting 2700 identified sites Quarterly Target Connectivity to an additional 800 identified sites project managed and monitored Operations of the Virtual Cyber security Cybersecurity Hub facilitated and 2017/18 quarter 1 monitored monitoring report developed Actual Performance Status Explanation of Variance Current progress to date Signed Tripartite Not The signing of Master Services Achieved MSA took longer Agreement (MSA) than anticipated was signed between DTPS, SITA and BBI. The Treasury process to 2 sites connected as transfer funds to a proof-of-concept to BBI & SITA has streamline the required process of upgrading extensive the sites that are engagement currently connected. with N. T. The Infrastructure roll-out plan has been finalised. District Task teams have been established through Provincial Steering Committees The Cybersecurity Achieved Hub for 2017/18 quarter 1 monitoring report was developed and submitted to DDG for signature. N/A Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 38

ICT INFRASTRUCTURE SUPPORT (2) Annual Target Quarterly Target Preliminary technical and regulatory studies conducted to inform Draft SA’s position for WRC-19 Preliminary Technical and Regulatory studies conducted in preparation for WRC- 19 and second draft report developed Actual Performance Status Explanation of Variance Regulatory studies Achieved N/A conducted in preparation for WRC- 19 and Second Draft Report on Preliminary Technical and Regulatory Studies in preparation for WRC-19. Current progress to date N/A SA preliminary positions submitted at SADC during the 2 nd SADC meeting in Zambia. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 39

FINANCIAL INFORMATION AS AT 30 SEPTEMBER 2017 Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 40

EXPENDITURE PER PROGRAMME Budget R'000 Budget % Expenditure R'000 Available R'000 % Spent Administration 198 130 12% 107 808 90 323 54% ICT International Affairs 50 920 3% 38 026 12 894 75% Policy Research & Capacity Dev 85 523 5% 32 782 52 742 38% ICT Enterprise Dev & SOE Oversight 251 691 16% 134 932 116 760 54% ICT Infrastructure Support 1 027 942 64% 419 064 608 879 41% Total 1 614 206 100% 732 612 881 596 45% Programme Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 41

EXPENDITURE PER ECONOMIC CLASSIFICATION Budget R’ 000 Budget % Expenditure R’ 000 Compensation of Employees 214 706 13% Goods & Services 580 836 Transfers & Subsidies Payments for Financial Assets Classification Payments for Capital Assets Total Available R’ 000 Spent % 106 479 108 226 50% 36% 66 607 514 230 12% 806 713 50% 551 395 255 318 68% - 0% 22 (22) - 11 951 1% 8 109 3 842 68% 1 614 206 100% 732 612 881 616 45% Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 42

TRANSFERS (1) APPROPRIATION ACTUAL TRANSFER VARIANCE % SPENT Foreign Governments & International Organisations 25 532 25 964 (432) 102% NEMISA 85 785 50 190 35 59% USAASA 75 684 40 284 35 400 53% Sentech: Dual Illumination 193 000 0 100% Sentech: Migration of Digital Signals 53 000 0 100% USAF 54 684 28 535 26 149 52% SAPO: Broadcasting Digital Migration 240 000 120 000 50% USAF: Broadcasting Digital Migration 79 098 39 548 39 550 50% Total 806 783 550 521 256 262 68% Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 43

TRANSFERS (2) 900 000 806 783 800 000 700 000 600 000 550 521 500 000 400 000 300 000 240 000 193 000 200 000 100 000 25 532 25 964 85 785 50 190 120 000 75 684 40 284 53 000 54 684 28 535 79 098 39 548 Foreign National Universal Sentech: Dual Sentech: Universal South African Universal governments Electronic Service and Illumination Migration of Service and Post Office: Service and Media Institute Access digital signals Access Fund Broadcasting Access Fund: international of South Africa Agency of Digital Broadcasting organisations South Africa Migration Digital Migration Appropriation TOTALS Actual Transfer Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 44

2016/2017 AUDIT ACTION PLAN Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

AUDITOR - GENERAL’S AUDIT OUTCOMES FINDINGS CATEGORY Audit Report Management Letter Overall Opinion FY 2014/15 FY 2015/16 FY 2016/17 3 2 4 27 15 22 Unqualified Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 46

INTERVENTIONS TO ADDRESS AUDIT OUTCOMES q In order to address the AG’s findings, the Department has developed and is implementing an Integrated Action Plan (IAP) that focuses on: § Providing a systemic resolution of the findings § Ensuring that root causes are effectively identified and addressed q The effective implementation of the IAP is monitored on a regular basis by: § The Governance Integrated Action Plan Committee § The Departmental Executive Committee q CD: Internal Audit Services conducts follow-up audits as independent monitoring of progress on the implementation of the IAP q Audit Committee provides independent oversight, holding Executive Management to account on effective implementation of the IAP. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 47

SUMMARY OF PROGRESS ON AUDIT ACTION PLAN Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 48

AUDIT ACTION PLAN Continuous Improvement Plan Implementation Status Per Programme 16 16 14 12 10 8 6 4 4 3 2 2 2 1 2 0 0 0 0 1 0 0 0 Finance 0% - Not Addressed Supply Chain Management 25% In- Progress Human Resource Management 50% Implemention Achieved Performance Information Management 75% Adequately Effective Governance and Administration 100% Fully Effective Information Technology Not due for implementation Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 49

PROGRESS ON AUDIT ACTION PLAN Continuous Improvement Plan - Implementation Progress 2 5 0% - Not Addressed 0 25% In- Progress 50% Implemention Achieved 11 75% Adequately Effective 100% Fully Effective Not due for implementation 24 0 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 50

PROGRESS ON AUDIT ACTION PLAN Area of Audit Finding Details of Finding Action Plan Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 51

PROGRESS ON AUDIT ACTION PLAN Area of Audit Finding Details of Finding Action Plan Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 52

PROGRESS ON AUDIT ACTION PLAN Area of Audit Finding Details of Finding Action Plan Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 53

PROGRESS ON AUDIT ACTION PLAN Area of Audit Finding Details of Finding Action Plan Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 54

PROGRESS ON AUDIT ACTION PLAN Area of Audit Finding Details of Finding Action Plan Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 55

PROGRESS ON AUDIT ACTION PLAN Area of Audit Finding Details of Finding Action Plan Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 56

THANK YOU Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 57