Report of the Select Committee on Labour and Public Enterprises on Oversight Visit to Limpopo, dated 12 November 2003:

The Select Committee on Labour and Public Enterprises, having visited Limpopo Province on 22 August 2003, reports as follows:

A. TERMS OF REFERENCE
In order to encourage the clustering of activities amongst committees of the NCOP, the Select Committees on Economic and Foreign Affairs and on Labour and Public Enterprises undertook a joint visit to Polokwane Province. This report captures those issues, which are relevant to the Select Committee on Labour and Public Enterprises (the Committee).

The aim of the visit was to assess the challenges faced by the Province within the telecommunications and postal services sectors.
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B. LOGISTICAL ARRANGEMENTS
The delegation consisted of the following persons:
Mrs C Nkuna (Chairperson)
Mr J B Tolo
Mr L G Lever
Mr R Z Nogumla
Mr N M Raju
Mrs D M Ramodibe
Ms P Mpoyiya (Committee Secretary)
Mr E Kgopa (Committee Secretary).

The Department of Communications (the Department) assisted with arranging the briefings, the site visit and the drafting of the programme for the week (refer to Annexure A).

C. FINDINGS
1. Briefing by Unit Manager, Postal Services: Department of Communications and visit to Public Internet Terminal (PIT) in Polokwane
Mr Makoni Masemola, Area Manager of the Post Office, welcomed the Committee and briefly identified the services offered by the Post Office. In response to the aim of the Committee's visit, Mrs B Motapanyane, Unit Manager: Postal Services, Department of Communications, made a presentation to the Committee.

A brief overview of the project/objectives
* The PIT is part of the Department's futuristic information strategy. The Com 2005 cluster of national projects within the Information Communications Technology (ICT) arena will be implemented over the coming years as the foundation for both the information society and the information economy.
* PIT is a joint project between the Department and the South African Post Offices Limited (SAPO).
* The objective of PIT is to create a communication structure through which the public will also be empowered to have electronic access to information and communication via electronic mail.
* There are six basic categories of services offered by PITs, which include government information, e-mail services, Internet browsing, business services, educational services and SMS transmission to a cellular telephone or an e-mail address.

Extension of postal services in Polokwane
The postal services sector is seen as a critical part of information and communications infrastructure and services to assist in bridging the digital divide through economic growth and improved access to basic communications services. To respond to this challenge the Department has introduced the concept of Citizens Post Offices (CPOs), which target communities serviced by rural post offices. The facility involves a bank of computers with e-mail and Internet connectivity, a photocopier, a printer, a scanner, a binder, a fax machine and public telephones. In Limpopo Province the Department has deployed a CPO at Elim Hospital in the Makhado area. Attempts are being made to roll out another CPO at Sekhukhune Post Office in the Greater Sekhukhune Municipality. A multi-purpose community center (MPCC) is to be rolled out at the Ximungwe Post Office and Casteel MPCC in the Bohlabela Municipality. These will be completed by 31 March 2004.

The trend in the use of the CPO at Elim Hospital CPO indicates that services such as photocopying, faxing and making calls from a public telephone are more popular than computer-based services. The challenge, therefore, is to popularise computer-based services through community awareness and outreach programmes. In order to address this matter, the SMEs are encouraged to participate in owning photocopiers and fax machines in order to generate business for themselves and for women to become business partners.

PIT sites
There are PITs throughout the country. In Polokwane, PITs have been established in the following areas:
* Boyne, Main Road, (next to Mori Head Quarters)
* Hoedspruit, Panther Street
* Bushbuckridge,/Jongilane, Stand 298, Arthurstone Farm
* Lebowakgomo, 13 Maudid Phasha Centre
* Mahwelereng, Shopping Complex Zone
* Pietersburg, Thabo Mbeki Street
* Thohoyhandou Shopping Centre
* Letsitele
* Namakgale Township
* Kgatswane MPCC

Integration of services
Government has adopted the concept of multi-purpose community centres to advance the co-ordination and integration of services between various government departments and organisations. As part of the Department's contribution to this concept, it has extended the citizen's post office concept to community post offices. These are retail postal agencies that are owned and managed by community structures, such as traditional authorities, non-governmental organisations and community-based organisations. They are more prevalent in Limpopo, Mpumalanga and the North-West Provinces and are being integrated with other government services.

Challenges in the postal services sector
* All post offices, MPCCs, municipal councils and shopping centres should have PiTs.
* Not all post offices have the required network infrastructure.
* All citizens should have an e-mail address.
* The design of PiTs should cater for the needs of a broader variety of citizens, for example people with disabilities.

The Post Office has a network of approximately 3 600 postal outlets throughout the country. These outlets are located within different communities with wide-ranging socio-economic circumstances. It is, therefore, a challenge for the Department to install a PIT at a post office that is located in an area with no network infrastructure, since the infrastructure is dependent on other role payers such as Telkom.

The Department is looking at moving beyond the Post Office network. Attempts are being made to get other stakeholders on board, such as schools, hospitals, clinics, etc.

Successes in postal services sector
* In addition to the 100 sites that are operating throughout the country, 200 other sites are currently being rolled out. The focus in relation to these 200 sites has been on priority areas, such as nodal points, which have been placed in rural or urban areas as part of the Universal Service Agency (USA).
* 200 sites for the year 2003/04 have been identified in rural and urban areas by Universal Service Agency.
* The Department is considering the possibility of using the PiT website on other computers around the world to access PiT services. One can also access the PiT website (www.pit.co.za) within the comfort of one's own home on one's own desktop.
* The integration of PiT with e-government initiatives, such as gateway projects, has been achieved.

Future plans
* A further roll out of 400 PiTs by March 2004.
* Rollouts will focus on MPCCs, post offices, health facilities, schools (ABET), municipal councils, shopping centres and SMMEs.
* PiT community pilot projects will be established in order to capture and collate stories about communities multimedia and which can be accessed from a PiT.
* MPCCs will in future be connected by V-Sat (satellite) because of the lack of the SAPO local area network.
* More joint projects are planned with government departments, such as the Department of Health on health education and with the Department of Agriculture and Land Affairs on the branding of animals.

Assessment of the usage of PiT centres
A national study was conducted on the use of PiT centres. Findings of the study indicated that people used the facilities for different reasons, such compiling a CV, e-business, education, e-mail, and government and internet searches. Out of these activities, e-mail was the most popular activity.

Question-and-answer session
What is the department doing to ensure that all services are centralized to provide a one-stop service?
The MPCCs were meant to serve this purpose, but departments chose to decentralise their services.
However, the trend is towards decentralising and integrating services within MPCCs.
What is the rationale behind the establishment PiTs in Polokwane, which has services, and not in rural areas?

The statistics in the report given to members are only for post offices with connectivity i.e. PiT. The Department aims to target all areas, especially those with MPCCs.

Statistics on use of PiTs in Limpopo are too low when compared to the rest of the country. Can this be viewed as a success for the Department?

The Department uses the information systems to capture information, thus it is possible through the PIT system to get this information.

Does the government provide for services in MPCCs?
MPCCs are government-driven and are open to the public. Most of these services are free.

The Department of Home Affairs indicated that it is unable to provide these services in areas where they are needed most due to security reasons. The PiT system and MPPC concept are very useful. Is there integration with other departments? Are PiT centres prone to vandalism?

In terms of service delivery, people look to government and not to departments. Negotiations about integrating government services have begun.

There are no statistics on vandalism in relation to PiTs. It is very hard to vandalise the facility since it is placed in secure areas inside the post office. In respect of maintenance, managers are required to keep a record of malfunctions and the relevant companies are ready to maintain the facility.

What is the relationship with the Department of Home Affairs?
The Department of Home Affairs is not participating in the project.

What is a gateway project?
A gateway project is similar to the MPCC concept. It is an initiative of the Department of Public Service and Administration. Facilities similar to those of MPCCs. They are established in urban areas, where different departmental services are offered to the public.

What is V-sats?
V-sats is a Saphan, a local area network satellite which requires a Telkom or Eskom line to operate.
What is the purpose of the proposed system on animal branding by the Department of Agriculture and Land Affairs?

The system is aimed at assisting and controlling the movement of animals and keeping them quarantined in the event of an outbreak of disease.
Would it be possible for a child to collect the pension grant for a pensioner by using the smart card system?

It is not possible because the system requires fingerprint identity.

Recommendations by Committee
The revelations on the lack of participation by the Department of Home Affairs needed to be deliberated further with the Select Committee on Social Services and Department of Home Affairs.

2. Report on oversight visit to telecommunications sector: Universal Services Agency
Visit to Mankweng Telecentre
Ms Maleka, a member of the community and board member of the telecentre welcomed the Committee. On arrival the delegation was met by members of the Mankweng community, and Board member who took the delegation on a tour of the telecentre.

Background
The telecentre was established as a result of the initiatives by the community, who identified the need for such a facility. Through interaction with the Universal Service Agency, the telecentre was opened.

The telecentre offered services such as computer training, faxing, telephoning, photocopying, e-mailing and Internet access.

Findings
During its tour of the centre, it became clear to the delegation that the center was underutilised. There were a few facilities that were offered to the public, and those that were available could not be used properly. For example, there were three public booths without telephones. One person was using a computer. The photocopier and the fax machine were in working order. The building was also used as a day-care centre for young toddlers.

Successes of the telecentre
People no longer have to walk long distances to make calls, surf the Internet or use a fax machine. Through training some have become computer literate.

The following were highlighted as challenges facing the community of Mankweng
* The high level of crime and burglaries made it difficult for the centre to function optimally.
* The equipment in the centre was in need of repair.
* In respect of connectivity, the center ran up huge telephone accounts as a result of the technology supplied by Telkom, which was not conducive for internet operations - it took long to download information.
* Some members of the community competed with the centre by operating public telephone cubicles in the vicinity.

Question-and-answer session
How frequently do members of the community use the facilities in the centre?
After the centre's door were opened, 70% of the community was using facility. However, due to challenges indicated, the numbers have dwindled. Attempts are under way by the Universal Service Agency to understand the problem and consider solutions in order to encourage more usage of the centre by the community.

Is there accreditation for lessons/courses learnt at the centre?
In the absence of a centre manager, no training is being offered. Learners attend training at the neighbouring centres. The USA has a contract with the Wits Link Centre, by which managers are offered a train-the-trainer course, which is accredited by Wits Technikon.

After training, does the centre assist the trainees with placements?
The centre does not have a direct placement plan. However, most of the learners who underwent training obtain jobs as volunteers with the Department of Public Works as well in the schools around the area.

Is it not possible for Telkom to adjust their tariffs?
The USA tried to negotiate with Telkom on this matter, but no deals could be reached.

How does the USA ensure that the relevant skills are acquired through the telecentre?
The USA has devised a system where, before giving training, individuals are required to commit themselves for 18 months.