EXECUTIVE SUMMARY

The constitution of South Africa (Act 108 0f 1996) recognises that Legislatures have important role to play in overseeing the performance of Departments and Public Entities. Section 65 of the Public Finance Management Act requires that Ministers table the annual reports for the Department and Public Entities for which they are responsible by 30 September each year.

On the 6^th September 2005, the Department of Environmental Affairs and Tourism and its Statutory Bodies namely, South African National Biodiversity Institute, Greater St Lucia Wetlands Authority, South African National Parks, South African Tourism and South African Weather Services tabled their 2004/05 Annual Reports and Financial Statements to Parliament in terms of the of Sections 65(1)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999).

Upon the referral by the National Assembly on 30 September 2005, the Portfolio Committee on Environmental Affairs and Tourism scheduled extended briefing session on the 11^th of October 2005 with the Department of Environmental Affairs and Tourism and its Public Entities to present their annual reports and Financial Statements including the Report of the Auditor-General on the Financial Statements for 2004-2005.

After welcoming and according a platform to officials from the Department and Public Entities to introduce themselves, the Chairperson, Mr Langa Zita, then indicated in his introduction that the main purpose of the meeting was to provide platform to the officials from the Department and Public Entities to brief members of the contents of 2004/05 annual reports submitted to Parliament in terms of Public Finance Management Act. The presentations generally focused on 2004/05 targets, achievements and, audited Financial Statements ending at 31 March 2005.

The first 2004/05 annual report presented was of Department of Environmental Affairs and Tourism. The Acting Director General, Ms J Yawitch presented the report The main focus of the presentation was on 2004/05 targets and achievements related to programmes such as Administration, Environmental Quality and Protection, Marine and Coastal Management, Tourism, Biodiversity and Conservation, Auxiliary and Associated Services, audit committee report, baseline over the MTEF period, budget allocation per programme and economic classification, actual expenditure in previous and current financial year, transfer payments and, HR matters.

The second 2004/05 annual report presented was of South African National Parks. The Chief Executive Officer, Dr David Mabunda presented the report. The presentation focused on vision and mission statements, business architecture, conservation, Tran frontier conservation, tourism business, people and conservation, operations and management, expanded public works programme, staff and employment equity statistics, black economic empowerment and financial report.

The third 2004/05 annual report presented was of the South African Weather Service. The Acting Chief Executive Officer, Mr JN Nphepya presented the report. The presentation focused on vision, mission, key focus areas, long term goals, implementation of recap plan, achievements in terms of services improvement, total staff complement, management and professional staff, commercial income and revenue highlights and, audit report comments.

The fourth 2004/05 report presented was of South African Tourism. The Chief Executive Officer, Mr Moeketsi Mosola presented the report. The presentation focused on 2004 overview, foreign tourists arrival in South Africa, growth of tourist arrival, arrival from Africa and Europe, global tourism growth, comparison between South Africa and Australia and, tourism sector GDP growth.

The fifth 2004/05 annual report presented was of South African National Biodiversity Institute. The presentation focused on vision and mission, 2004/05 key achievements, targets for 2005/06 and 07 and 2004/05 highlights related to education programme, learners visitor statistics, audit committee report and, income and expenditure

The final 2004/05 annual report presented was of the Greater St Lucia Wetland Park. The Chief Executive Officer, Mr Andrew Zaloumis presented the report. The presentation focused on vision and mission of the authority, strategy, and achievements related to socio economic environmental development, tourism development, park management and conservation, research, regulatory matters and audited financial statement

Based on the presentation of 2004/05 annual reports and audited financial statements; the committee has generally observed that:

• The 2004/05 annual reports of the Department and Public Entities have clearly provided information on service delivery and have reported the financial statements, management and audit reports against the performance targets and budgets as outlined in their strategic plans and Estimate of National Expenditure
• In terms of the audit committee opinions, the financial statements fairly present, in all material respects, the financial positions of the Department and its Public Entities at 31 March 2005 and the result of their operations and cash flows for the year then ended, in accordance with prescribed accounting practice and in the manner required by the Public Finance Management Act, 1999 (Act No.1 of 1999).

Having considered the 2004/05 Annual Reports and Financial Statements of the Department of Environmental Affairs and Tourism and its Public Entities, the Portfolio Committee recommends that; during the 2006 Parliamentary Committee period:

4.1.The Department of Environmental Affairs and Tourism should come and brief members on the findings of draft Asbestos study report and approved regulation by the cabinet, 2006/07 Strategic Plans and Budget Allocation, mechanisms to be put in place to ensure that BEE and, programs related to Genetically Modified Organism and Mari Culture

4.2. South African National Parks should come and brief members on elephant management strategy; implementation of transfrontier conservation programme and, mechanisms put in place to ensure the management of the park in accordance with the Protected Areas Act (57 of 2003)

4.3. South African Weather Service should come and brief members of its re-capitalisation plan, strategies to reduce the impact of adverse weather conditions on vulnerable communities and,

4.4. South African Tourism should come and brief members on Evaluation Report on Short Left Campaign, Eco Tourism, Action Plans and preparations for 2010, Strategic Plans and 2006/07 Budget Allocation

4.5. South African National Biodiversity Institute should come and brief members on 2006/07 Business Case, Strategic Plans and Budget Allocation, progress made in respect of the Greening of the Nation Project, Succulent Karoo Ecosystem Program and its success in meeting the socio -economic goals of the country

4.7. Greater St Lucia Wetland Park should come and brief members on action to be taken ensure the promotion of broad –based black economic empowerment in new tourism industry in the park, status of all the existing poverty alleviation projects and their impact on poverty alleviation and sustainable job creation.

The Portfolio Committee on Environmental Affairs and Tourism having used 2004/05 Annual Reports of the Department of Environmental Affairs and Tourism and its Public Entities as Oversight Mechanism during the Extended Briefing Session, dated 11 October 2005, Reports to Parliament as Follows:

On the 11 October 2005 the Department of Environmental Affairs and Tourism and its Public Entities namely, South African National Parks, South African Weather Service, South African Tourism, South African National Biodiversity Institute and, Greater St Lucia Wetland Park presented their 2004/05 annual reports and financial statements to the Portfolio Committee as tabled to Parliament in terms of Sections 65(1)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), as amended (PFMA).

1. DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND TOURISM

The Deputy Director General, Ms J Yawitch presented the 2004/05 annual report and audited financial statement of the department. The main focus of the presentation was on 2004/05 targets and achievements related to programmes such as Administration, Environmental Quality and Protection, Marine and Coastal Management, Tourism, Biodiversity and Conservation, Auxiliary and Associated Services, audit committee report, baseline over the MTEF period, budget allocation per programme and economic classification, actual expenditure in previous and current financial year, transfer payments and, HR matters. Some of the major departmental achievements reported during the period under review included:

• Drafting of Uniform National and Provincial Budget Structure
• Establishment of National Environmental Advisory Forum,
• Finalisation of Environmental Management Cooperation Agreement Guidelines and Environmental Impact Assessment Register and Database
• Completion of Thor Chemical Environmental Impact Assessment and coasting
• Finalization of Climate Change Response Strategy and development of draft asbestos regulations
• Completion of draft report on proposal for rehabilitation of fishing harbours
• Drafting of new policy framework for the white shark cage diving and boat based whale watching industry
• Revision and amendment of the 4x4 regulations and promulgation of 2 new Marine Protected Areas.

3.SOUTH AFRICAN NATIONAL PARKS

The Chief Executive Officer, Dr David Mabunda presented the report. The presentation focused on vision and mission statements, business architecture, conservation, Tran frontier conservation, tourism business, people and conservation, operations and management, expanded public works programme, staff and employment equity statistics, black economic empowerment and financial report. The main 2004/05 achievements reported by the Chief executive officer relate to progress made in respect of:

• Completion of Giriyondo border post
• Opening of 28 bed rest camp in March 2005 at Sendilingsdrif
• Completion of planned tourism infrastructure in Mapungubwe
• Pre-grading of all Kruger accommodations and camps sites in Addo and Storms River Mouth
• Launching of public-private partnership between South African national parks, the department of environmental affairs and tourism, the Department of Education and Pick ‘n Pay for the implementation of kids in the parks programme

4. SOUTH AFRICAN WEATHER SERVICE

The Acting Chief Executive Officer, Mr JN Nphepya presented the report. The presentation focused on vision, mission, key focus areas, long term goals, implementation of recap plan, achievements in terms of services improvement, total staff complement, management and professional staff, commercial income and revenue highlights and, audit report comments. In the opinion of the Acting Chief Executive Officer, the main achievement of the South African Weather Services during the 2004/05 financial periods included:

• Deployment of the Umtata Weather Radar
• Establishment of 5 automatic Weather Stations in the Eastern Cape
• Implementation of Weather Data Capturing Programme
• Improvement of longer term forecasting ability
• Completed the air borne monitoring campaign
• Received an international award for rainfall enhancement
• Filled all time scales with new forecasting suite of products – addressing all timescales
• Reduced the impact of adverse weather conditions on vulnerable communities
• Used new high resolution weather satellite
• Introduction of an aviation display system

5. SOUTH AFRICAN TOURISM

The Chief Executive Officer, Mr Moeketsi Mosola presented the 2004/05 annual report of the South African Tourism. The presentation focused on 2004 overview, foreign tourists arrival in South Africa, growth of tourist arrival, arrival from Africa and Europe, global tourism growth, comparison between South Africa and Australia and, tourism sector GDP growth. Some of the major achievement of the South African Tourism reported during the 2004/05 financial period included:

• Recording of highest number of foreign tourism arrivals

• Growth of foreign tourism arrival across all the regional portfolio except Europe
• Growth of South African Tourism as compared to Australia
• Successful roll out of short left campaign with the aim of persuading more South African to travel within their own country
• Development of a comprehensive guide to graded products as well as aggressive business tourism strategy and action plan
• Negotiated a three-year sponsorship contract for the emerging tourism entrepreneur of the year award with ABSA.
• Successfully gained market share in France while lost significantly in Netherlands and Germany
• The tourism GDP figures have been modelled using WTO figures and foreign direct spend in South Africa

6. SOUTH AFRICAN NATIONAL BIODIVERSITY INSTITUTE

The Director of Biodiversity Policy and Program, Ms Kristal Maze presented the 2004/05 annual report of the Institute. The presentation focused on vision and mission, 2004/05 key achievements, targets for 2005- 07 and 2004/05 highlights related to education programme, learners visitor statistics, audit committee report and, income and expenditure The key achievements and programme highlights presented to the committee included:

• Transfer of key management posts to Pretoria
• Opening of a new biodiversity centre in Pretoria
• Opening of visitor facilities in lowveld, Walter sisulu and Pretoria national botanical garden
• Initiation of greening of the nation project
• Initiation of municipal capacity program in eastern cape
• Establishment of succulent karoo ecosystem programme coordination unit
• Initiation of one-stop biodiversity information system
• Launching of grasslands bioregional programme.
• Rehabilitated 65 wetlands and created 1749 jobs
• Managed the working for programme on behalf of Department of Environmental Affairs and Tourism
• Facilitated garden based environmental education programme.

1. GREATER ST LUCIA WETLAND PARK

The final 2004/05 annual report presented was of the Greater St Lucia Wetland Park. The Chief Executive Officer, Mr Andrew Zaloumis presented the report. The presentation focused on vision and mission of the authority, strategy, and achievements related to socio economic environmental development, tourism development, park management and conservation, research, regulatory matters, audit committee report and summary of financial performance, income statement and employment equity. According to the Chief Executive Officer, the main achievements of the park during the period under review included:

• Spending of R17. 9 M on Park Development and Implementation of Alien Clearing Plan
• Creation of 330 jobs in tourism and related industries and Establishment of 7 Agricultural Gardens
• Implementation of Communication strategy
• Appointment of branding team and completion of brand architecture
• Translocation of 700 units of warthog, oribi, giraffe, white and black rhino, buffalo and wild dog
• Initiated Lubombo tourism and reached agreement on location and process for the development of Bhangazi heritage site
• Development of drama into a training tool for broader community and park employees.

Based on 2004/05 annual reports and audited financial statements presented; the committee has generally observed that:

• The 2004/05 annual reports of the Department and Public Entities have clearly provided information on service delivery and have reported the financial statements, management and audit reports against the performance targets and budgets as outlined in their strategic plans and Estimate of National Expenditure
• In terms of the audit committee opinions, the financial statements fairly present, in all material respects, the financial positions of the Department and its Public Entities at 31 March 2005 and the result of their operations and cash flows for the year then ended, in accordance with prescribed accounting practice and in the manner required by the Public Finance Management Act, 1999 (Act No.1 of 1999).

• The tabling of 2004/05 annual reports and financial statements of the Department and Public Entities to Parliament on the 6 September 2005 by Minister of Environmental Affairs and Tourism has complied with the requirements of Public Finance Management Act.

9. CONCLUSION AND RECOMMENDATIONS

Having considered the 2004/05 Annual Reports and Financial Statements of the Department of Environmental Affairs and Tourism and its Public Entities, the Portfolio Committee recommends that; during the 2006 Parliamentary Committee period:

9.1.The Department of Environmental Affairs and Tourism should come and brief members on the findings of draft Asbestos study report and approved regulation by the cabinet, 2006/07 Strategic Plans and Budget Allocation, mechanisms to be put in place to ensure that BEE and, programs related to Genetically Modified Organism and Mari Culture

9.2. South African National Parks should come and brief members on elephant management strategy; implementation of trans-frontier conservation programme and, mechanisms put in place to ensure the management of the park in accordance with the Protected Areas Act (57 of 2003)

9.3. South African Weather Service should come and brief members of its re-capitalisation plan, strategies to reduce the impact of adverse weather conditions on vulnerable communities and,

9.4. South African Tourism should come and brief members on Evaluation Report on Short Left Campaign, Eco Tourism, Action Plans and preparations for 2010, Strategic Plans and 2006/07 Budget Allocation

9.5. South African National Biodiversity Institute should come and brief members on 2006/07 Business Case, Strategic Plans and Budget Allocation, progress made in respect of the Greening of the Nation Project, Succulent Karoo Ecosystem Program and its success in meeting the socio -economic goals of the country