Independent Electoral Commission & Film and Publication Board Annual Reports: Deputy Minister and Department’s briefings

Home Affairs

19 February 2008
Chairperson: Mr H Chauke (ANC)
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Meeting Summary

The Deputy Minister of Home Affairs addressed the Committee, congratulating both the Independent Electoral Commission (IEC) and Film and Publications Board (FPB) on their performance. He noted that the period covered by the Annual Report had included local government elections, and that the IEC was preparing itself for the 2008 elections. Work would be done on the abolition of floor crossing. He highlighted some of the research done by the FPB into issues of child pornography and noted that a conference would be convened in this year to further research and discuss the issue. He commented that FPB was hindered by an inadequate budget.

The IEC tabled and presented on its Annual Report 2006/7. It was doing substantial work in the international arena, although it could not always accede to all requests. It had undertaken a review of the organisation. Issues to be considered included funding, floor crossing, the IEC's independence, and the relationship with the Department of Foreign Affairs. New technology would improve management of elections. Staff attached to municipal offices had been reconsidered. It was indicated that there were now 145 registered political parties. The strategic objectives included entrenching IEC as the focal point for elections, maintaining an optimal network, communication with voters, effective participation parties, consolidating the organisational structures and infrastructure, ensuring effective functioning of support systems, and training. An overview of the financial statements was given. There had been an unqualified report, but matters of emphasis were raised. There was a surplus of R38 million (8% of budget). Full details of expenditure were contained in the detailed presentation. Members raised questions on the comments by the Auditor General, questioned the reference to provincial departments making donations, the reasons why the IEC had declined the request to report on Zimbabwe, the processes to register and encourage voters, particularly for by-elections, problems with demarcation and wards, and the resignations and steps taken to fill vacancies. They also asked about risk management, the comparison of figures from the previous and current year, risk management, security and the disaster recovery plan, arrangements for IEC staff seconded to other countries, contracts to companies, assistance to the Student Representative Councils, and the costs, and the need to link the voter registration to the ID system. .

The IEC addressed the Committee briefly on the issue of floor-crossing, setting out the history. The Committee agreed that there had been unforeseen consequences and abuses of the system that justified its abolition, and would ask for a briefing by the Executive and work closely with the Justice Portfolio Committee in the legislative amendments that would be required.

IEC then gave a very brief summary of the preparations for the 2009 election, noting that a more detailed presentation would be arranged for another date. Issues mentioned included the need to have new scanning technology, migration to the SAP records system, reviews of district boundaries, the people to be employed, education programmes and the target of 22 million voters on the roll. It was reiterated that the voter registration must go hand in hand with the ID campaign.

The Film and Publication Board gave a brief presentation on its Annual Report, covering relationships with other institutions, and focusing upon challenges of high staff turnover, the delay in passing the legislation, and the need to gain cooperation of internet service providers and mobile phone operators. The work of the Board sought a balance between freedom of expression and responsibility to those needing protection, particularly children. The progress in meeting the strategic objectives was set out. The Board had an unqualified audit report, with no matters of emphasis. It had improved its compliance and reporting systems. Implementation of the penalty system had improved compliance with the Act. The Board was working on implementation of standardised operating procedures for its monitors. It was responding to technology convergence, and mobile distributors would bring content through for classification. The efforts towards regional standardisation were outlined. Detailed statistics were presented of the number of games and films submitted, classified and exempted. The financial statements were tabled, showing total revenue of R35 million, with heavy dependence on the grant from Department of Home Affairs. An error in the performance bonuses was pointed out and was to be corrected. The Board requested the Committee’s assistance in obtaining more funding and in expediting the outstanding legislation, and the Deputy Minister was asked by the Committee to discuss the matter with the NCOP Committee. Many of the questions asked by Members would stand over to a further meeting, but some questions around web registration of complaints, performance bonuses, and education workshops were responded to. It was clear that substantial discussion was needed on regulation of illegal internet content. The Committee also needed to assess the impact of the workshop, and the public relations and advertising.

 

Meeting report

Chairperson's opening remarks
The Chairperson welcomed the Deputy Minister of Home Affairs, Hon Malusi Gigaba, to the meeting.

The Chairperson noted that this Committee had held a number of meetings with the Independent Electoral Commission (IEC), including meetings on the issue of floor crossing, in conjunction with the Standing Committee on Private Members' legislative proposals. However, the ANC conference had then taken a decision to abolish floor crossing. The Committee would need to talk about the international obligations of the IEC, which was called upon from time to time to perform tasks outside the borders of South Africa, and this was not specifically covered in the legislation.

The Slabbert Commission had made a number of recommendations, but the Committee had not yet had an opportunity to engage on this. At some point the Committee would need to reflect on whether it still wished to engage with the recommendations of that report.

In previous engagement with the IEC the question of resources had come out sharply and the Committee had agreed to engage with National Treasury around the funding. The Committee Report reflected the recommendations made. It had further engaged with the issue of municipalities doing work on behalf of the IEC, and it was agreed that the IEC should establish its own offices, so that it was not relying on municipal managers to deal with local elections. The Committee had raised the question of voter education and would like to hear what work had been done in preparation for the 2009 elections.

Deputy Minister's address
Hon Malusi Gigaba, Deputy Minister of Home Affairs, apologised that the Minister was unable to attend today. He noted that he and the Minister had been distressed to see a Sunday Times report that they were at loggerheads, which was denied by both. The two had had an excellent working relationship over many years, both in previous capacities and in this Ministry.

Mr Gigaba noted that both the Independent Electoral Commission (IEC) and the Film and Publication Board (FPB) had made great strides in implementation of their strategic plans as well as their financial situation. The IEC was one of the most important bodies, and one of the best performers, and must be congratulated particularly in light of challenges in election processes elsewhere on the continent. South Africa's elections had always been credible. The IEC had continued to conduct itself with integrity and awareness of its responsibility. He praised its strong leadership and quality and talented staff. IEC had also extended its reach to other parts of the continent, including the Democratic Republic of Congo, and was a stakeholder in attempting to achieve stability. Successful local government elections were held in 2006. The Department of Home Affairs (DHA) and the IEC would be engaging in the ID campaign to ensure that citizens were able to register to vote on time for the 2009 elections. IEC had again received an unqualified audit report. He extended his thanks to the IEC.

Mr Gigaba noted that the ANC national conference in 2007 had taken a decision to scrap floor crossing, and therefore there would be work to be done on this. The IEC last year had clearly indicated the challenges it faced in regard to this issue, and the Deputy Minister had seen examples in a municipality of numerous by-elections following floor crossing announcements.

In regard to the Film and Publication Board, Mr Gigaba noted that commendable progress had been made in pursuit of the strategic plan, and the management of finances had improved, as demonstrated by the unqualified audit report. There were still various challenges around its work. Recent research by the FPB had shown that 67% of children in the country had been exposed to pornography, with 81% of them knowing that their friends had pornographic images on cellphones. Some had been making video clips of other children involved in sex and violence. This had been extensively reported upon by the media in Cape Town, Durban and Johannesburg. There was need to raise the consciousness of children, parents and educators to the challenges. Later in the year, the Department would be convening a conference on anti child-pornography as a sequel to that convened in Port Elizabeth in 2005. A series of surveys would be presented and international experts would share their experiences. The biggest challenge related to the grossly inadequate budget, which hindered FPB’s ability to perform. It faced another challenge of high turnover in management. The CEO had been asked to find ways to retain managers, ensure sustainability and continuity. He wished express his thanks also to FPB leadership.

Independent Electoral Commission (IEC) Annual Report Briefing
Dr Brigalia Bam, Chairperson, IEC, expressed her appreciation for the time that the Committee gave to the IEC. All the comments made to the IEC had been implemented and followed. She apologised for the absence of the CEO. International work had increased. Just yesterday the African Union had asked Dr Bam to lead a team to Zimbabwe to assess their readiness for elections. In addition the United Nations had asked IEC to join a team to investigate what had gone wrong in Kenya. Mr Michael Hendricks, a member of staff, was presently in Nigeria to assist with an investigation into its electoral systems and electoral laws. She indicated that a third Deputy CEO had been appointed to strengthen civic education and education for democracy, which would cover how to vote, responsible citizenship and the consequences of being in a democratic society. Democracy remained a challenge to South Africa and the rest of Africa. Knowledge management and research, as well as communication, would be strengthened.

Dr Bam noted that IEC had celebrated ten years of its existence last year, and this enabled it also to perform a review of the organisation’s work, strengths and weaknesses. It had held an international conference, co-sponsored with the African Union. It had managed to get the Student Representative Councils (SRCs) from all the South African universities and technikons to meet. Funding and floor crossing issues would need to be finalised by Parliament. Questions had been raised also about the independence of the IEC and, whilst this had come as something of a surprise, it was an issue to be investigated. The IEC had benefited also from the review of Chapter 9 institutions. It was re-examining the Memorandum of Understanding (MOU) and relationship with the Department of Foreign Affairs (DFA), including questions of budgets and responsibility for delegates of the IEC who were observing elections.

A Systems Applications Products (SAP) system had been instituted and would improve the technology in managing elections. She believed that registration, recruitment of staff, mapping and demarcation and verification of results could be improved in other countries by following similar systems. The issue of election coordinators had been resolved. Staff being attached to municipalities had become a sensitive issue, as questions were raised about their independence, impartiality and accounting procedures. IEC was aware of the issues. The International Affairs Department would again be looking at managing the staff time. The CEO was involved in the African Human Rights Conference. IEC had never expected to be involved internationally to such a degree, and needed to think through the impact of this on the staffing.

Dr Bam noted that there were now 145 registered political parties. The IEC had held by elections in 66 wards over the last few months. There was a valuable system of party liaison committees (PLCs), which enabled them to get together, debate and agree. That, to her mind, aided peaceful elections.

Mr Mosotho Moepya, Deputy CEO, IEC, gave a presentation on the strategic objectives. These were described in detail (see attached presentation). The first objective was to entrench the IEC as the focal point for elections. The review of the organisation had commenced and proposals for a new organisational structure were considered. Assistance was given on elections to various institutions (including schools), and technical assistance was provided with elections in the DRC and Comores. Discussions had been held with DFA to draft an MOU to support international work.

The second objective related to maintenance of an optimal network. The voters' roll had decreased by 419 913 during the period, mainly due to deaths. There had been continuous registration, leading to 19 199 new registrations. A more structured relationship was established with municipal development planning units and more than 2.5 million addresses had been captured.

The third objective was communication with voters. 61 by-elections had been held to fill vacancies in municipal councils. Voter turnout had averaged 31.6% and IEC recognised that more initiatives in outreach were needed. There had been collaboration with other institutions to work on education in specific sectors, and 500 schools were involved in education

IEC aimed also to ensure effective participation of parties. 93 parties were registered at national level, and 75 at local level. PLC meetings were held at local level and R79 million was allocated to represented political parties.

The fifth objective was maintaining and consolidating the organisational structures and infrastructure. The challenge was to ensure that all voting stations were equipped. Logistics information systems to plan the procurement and models for local delivery structure were discussed.

The sixth objective required that all financial, human, and IT resources, and all support systems were maintained to ensure effective functioning. Statutory monthly reports were submitted on time to National Treasury (NT) and the recommendations of internal and external auditors were implemented. There had been an unqualified audit report, and the financial control systems were functioning effectively. Staff turnover was low, and any vacancies pursuant to the organisational review were being filled. A stable and consistent IT structure was maintained.

The last objective related to training. There was continuation of work to develop the Centre for Elections Learning, and there was performance driven training. E-learning was being used.

Mr Zolisa Mafuya, Chief Financial Officer, IEC, gave an overview of the financial statements. R350 million was received from DHA and R138 million from the DFA. Further income was received from political party registration. IEC had spent R127 million of the DFA funds and the remaining R10.6 million was disclosed as a liability. All funds had been accounted for. He compared the spending against the budget. The total budget had been R495 million and R457 million was spent. There was a surplus of R38 million (8% of budget). The surplus was accounted for by lower expenditure across a range of items. Full details of expenditure were contained in the detailed presentation.

Discussion
Kgoshi K Morwamoche (ANC) congratulated the IEC on its unqualified report, the fact that there was no need for any disciplinary steps, and the linking of computers to Head Office. He noted that all recommendations from this Committee had been implemented, but asked for details on the statement in the Annual Report relating to donations from provincial departments of government, which the Committee had commented was undesirable on a previous occasion.

Dr Bam noted that the IEC had initially placed conditions on receipt of money. Finally it decided not to receive any money from anybody. The amounts reflected in the report had been outstanding for some time, and would probably go back to source.

The Chairperson noted that an office or department making donations to the IEC would also have to account for these funds to the Auditor General (AG) and its own oversight committee. For this reason this Committee had discouraged donations. He wondered what was the role of the DHA in relation to funding of international activities. He felt that this was a grey area to be addressed.

Kgoshi Morwamoche noted that the Auditor General (AG) had commented about internal controls and non-compliance with the Public Finance Management Act (PFMA), as also the fact that the strategic plan was not in line with the budget. Furthermore he had commented that some objectives were not measurable. There had been irregular payments. He asked for comment.

Mr Mafuya stated, in regard to the comment on the assets, that these had been understated. There was a difference in interpretation between IEC and the AG. When the differences were pointed out, they were corrected, and this was noted in the Annual Report. Prior to 2006, assets could be written off to R1 value. The new International Financial Reporting Standards (IFRS) noted that if an asset was still useful, it should not be written off, but its lifespan should be increased. That had now been done. The comment on the pre-payments was two-fold. Some were made in advance of a financial year, such as rentals. They had been listed. Some other payments had been made in error and these would not recur.

Mr Mafuya noted that the provisions for debt related to travel agents' orders where the agent was unable to invoice the IEC until they themselves were invoiced. Three years was allowed for the purposes of prescription, but the AG had asked for this to be changed.

Mr Mafuya noted that accounts receivable were over-stated. The DFA had given money to fund DRC activities. There was no banking system in DRC. When people from the IEC needed to stay in hotels and hire cars in DRC, DFA was asked to transfer money to the embassy in the DRC. There was a difference of R1 million between what was transferred, and what was owed. That had since been cleared.

The Chairperson noted that every detail should be available and every cent had been accounted for. He would like to have full details relating to all financial information, before the Committee would be able to adopt the report.

Mr Mafuya noted that the comment relating to software also had to do with the useful life of the asset. The software contract had been "indefinite" but the AG had insisted on a period being allocated to it. Although he could not remember the exact period, he would send the details through to the Committee.

Mr C Louw (DA) commented also that it was encouraging to see a clean audit report. However, he too was concerned about the internal and financial controls and compliance with Treasury regulations and he hoped that this would be improved in future.

Mr Norman du Plessis, Deputy CEO, IEC, said that Treasury Regulations required that permission must be obtained if systems that were not generally in use in the public service were being used. Permission was granted in 1999 to use a non-standard system. When there was change-over to SAP, IEC did not think it had to apply again for permission. However, formal approval had now been requested. It was not a contentious issue.

Mr Louw referred to page 69 of the Annual Report, noting that there was R8 million outstanding from UN Development Programme and R4.5 million from the DFA. He asked if that had been received. He also asked what the irrecoverable debts of R226 000 represented.

Mr Moepya responded hat the money had been received from the UN and the DFA shortly after the financial year end.

Mr Louw wondered why so much money was being kept "on hand", not invested in short term or other investments.

Mr Terry Tselane, Commissioner, IEC, noted that the issue of the matching of budget to strategic objectives had been corrected. Most of the issues had been dealt with by developing a clear programme, so they would not recur.

Mr Louw asked why there was not a breakdown of salaries to Commissioners.

Mr Moepya noted that this had been noted and would be dealt with in future.

Mr Louw asked Dr Bam why she had declined the request to the IEC to assist with Zimbabwe.

Dr Bam responded that the IEC had decided in principle that it could not, on moral grounds, pass judgment or make a negative assessment on colleagues in another country. The invitation had come from the AU, but Dr Bam was known as Chairperson of the South Africa IEC. For similar reasons she had declined an invitation to assess the situation in Kenya, since she was in possession of information that might affect her impartiality from her role in the UN.

Ms I Mars (IFP) asked if newly eligible voters were registered. She was concerned about the voter turnout and asked whether that represented voter apathy, or lack of understanding of the importance of by-elections.

Dr Bam responded that there was indeed very little interest in by elections. The IEC was not sure why, but intended to improve its own communication campaigns further. Parties should, but did not always assist the IEC in campaigning. Local government elections were important as they would give ordinary citizens the opportunity to interface with local councillors. Voter registration had been a challenge, as people had to register within the correct district. The death rate was higher than the new voter rate. Those who registered had to have an ID. The IEC had, over the ten years, had special weekends to"rehearse" what would happen on the election day, and most registrations were effected on those weekends. Because by-elections were held during the week, voters would need to ask for leave to go and vote, and this might pose a further problem.

Ms Mars said that there had been a dramatic decrease, by comparison with the previous year, on expenditure, including salaries. She asked for an explanation.

Mr Moepya noted that when there was a general election, additional staff would be hired for a fixed contract.

Mr P Sibande (ANC) commented that the AG had raised various challenges, including lack of supporting evidence, and lateness in submitting reports. He asked if the IEC conducted risk management, and who constituted this unit.

Mr Tselane noted that the internal finance and audit committees were developing a process for a proper risk management committee, which would be driven by the CEO. These issues had been previously handled by the internal audit committee.

Ms M Maunye (ANC) asked about general controls in the technology environment. The AG had raised concerns around the security policy and the disaster recovery plan. She asked what was being done in this regard.

Mr du Plessis noted that since the audit these issues had been updated and adapted and would not recur.

Ms F Mathibela (ANC) noted that there were problems in the rural areas with demarcation issues, that the distance within the wards to polling stations had increased and often voters were not interested in walking long distances, or crossing rivers or mountains in order to vote.

Dr Bam agreed that there were indeed voting stations that were not ideally placed. IEC, the political parties and the Demarcation Board did try to reach agreement on the sites of the stations, especially if complaints were laid. They were all in the process of trying to refine the areas.

Ms Mathibela asked for further details about the 16 resignations, and whether the vacancies had been filled.

Mr du Plessis responded that the 16 vacancies represented a low percentage. Most had left because their work at IEC was a strong recommendation for promotion to other positions in the public service or private sector.

The Chairperson pointed out that the vacancies had included senior positions. He asked if these positions had been filled.

Mr du Plessis said that the true vacancy situation did not quite match the figures in the Annual Report. The IEC had been undergoing reorganisation, and so a decision was taken not to fill the posts until the new organisational structure was finalised, as it would include capacity at provincial offices. There were now 153 vacancies, including 101 at provincial and local level. 50 posts had been advertised at the provincial level. 52 vacancies existed at the national office, with around 30 in the IT sector. These would be advertised at the end of February and it was hoped to fill them by June. At the moment the IT posts were filled by contract personnel. There had to be revision of the employment equity structure also when making appointments.

Mr W Skhosana (ANC) said that there were comments raised previously about the work of IEC officials outside the borders, including issues of insurance and their safety. He asked whether there had been attention to this.

Dr Bam said that this was the first time that DFA had to work with IEC. Neither had appreciated that IEC would have to do so much work around elections in other countries. DFA had own policies relating to their own staff members, usually those in embassies. DFA and IEC were on a learning curve and were trying to work out what would be most acceptable, and who took the responsibility for circumstances of illness, evacuation, and so forth. The MOU would be addressing these issues, and would also assist DFA in looking at its own policies of insurance. IEC would like DFA to take full responsibility for IEC members in a particular country. DHA would be involved once a meeting had been held.

Mr Skhosana noted the reference to the Student Representative Council assistance. He asked how much had been spent on this exercise.

Mr Moepya noted that when the IEC assisted bodies other than statutory bodies, it did not do so on a "for profit" basis. Any costs would be borne by the institutions themselves. SRCs had a budget for their own elections.

Kgoshi Morwamoche reminded the IEC that in a previous meeting there had been a promise made about the local election structures, and he had not seen any documentation around this. In the previous years, certain officials had been excluded from the list submitted to the Department of Labour (DOL). He asked if they were now included.

Mr du Plessis said that the local offices were established. Around 500 staff became IEC employees as from 1 August 2007, and their previous service in elections was regarded as IEC service. 52 advisory positions had been created, and IEC estimated to be able to fill 45 by the end of the month. The structure was settled before the preparations for elections began in earnest. The plan inherently confirmed the discussion with the Portfolio Committee. If it had not been submitted, then it was an oversight. All employees had always been included in UIF, but had not previously been included in the Employment Equity plan. That had now been done.

Kgoshi Morwamoche noted that the Portfolio Committee had previously been concerned that contracts to black economic empowerment (BEE) companies related mostly to urban based companies. He asked if there had been any changes.

Mr Moepya noted that progress had been made. A report had been printed that identified the reach of service providers, by name and address. A copy had been made available to the Chairperson of this Committee.

Mr F Beukman (ANC) noted that there was a target of 2 million voters, aged 18 to 25 and that there would be communication campaigns supported by the website. He pointed out that in the USA new methods of communication were being used. He asked, particularly in the urban areas, if the IEC was geared to reach the target groups, and suggested there was a need to reconsider methods of communication.

Mr Gigaba said that the work to attract voters should also be done by the political parties. The challenge of getting younger voters to vote had already been an issue in the 2004 elections. Even older voters must always be given new reasons why they should participate in an election. Other European countries would automatically register voters as soon as they turned 16. In South Africa manual mobilisation might be helpful to parties as part of the outreach process, but IEC would have to consider if this was the most effective way of getting people on the voters' roll. Perhaps, as part of ensuring that every 16-year old received an ID, there could be a linked process to the voters' roll. There was only so much that the IEC could do.

Mr Louw noted that the Committee could not actually ensure that the IEC forced people to vote, but clearly the issue was important.

The Chairperson said that these points were critical. Given the problems with the current population registers, and the systems of DHA, it would be important for the Committee to hold a separate meeting on this issue alone. Every child of 16 must get an ID book and this would be a focus area for the Committee this year. The problem was that people still had to pay, even if only for photographs or transport to the offices, to get their ID book. In the rural areas many people had no money even for food. He was aware of the mobile units, but they did not have enough cameras or assistance to first-time voters.

Floor crossing issues
The Chairperson noted that this issue had been debated by this Committee, together with the Standing Committee on Private Members' legislative proposals. The resolution of the ANC conference to abolish floor crossing was also supported by other parties. However, the issues around deposits and allowances would still need to be discussed.

Mr Fanie van der Merwe, Commissioner, IEC, tabled some notes setting out the background to floor crossing. He noted that the elections were carried out on a party-system, with the party being allocated a number of seats to be filled from the party lists. If a member ceased to be a member of the party, he would lose the seat. In 2002 a Constitutional amendment was however introduced by the Minister of Justice and Constitutional Development. This allowed members, during a 15 day window period in the second and fourth years, to defect to a different or new party, but still keep their seats which would then be held by their new party. In 2006 the matter was debated, and the President noted that the whole principle needed to be debated by Parliament, not deferred to the Executive. IEC had prepared a submission, but was not able to establish whether there had been a review.

In the meantime the Standing Committee then began to debate the issue. IEC was of the view that floor crossing may have been justified as a vehicle for the inevitable re-alignment of political groupings after the government of National Unity had run its course in 1999. If so, it had now served its purpose There was general consensus from all parties that floor crossing should be abolished, because of its undesirable and unintended consequences. IEC had no information on the legislation that would be needed to change the issue, but assumed that this was being done.

The Chairperson said this Committee had previously worked closely with the Justice Portfolio Committee, knowing that this Committee would administer the amendments once introduced and would no doubt do so again. The repealing of the relevant section in the Electoral Act would come back to this Committee. The Executive was engaging around these issues and he thought that the Executive should be asked to give a briefing. He agreed that there had been lack of discipline and an abuse of the process. The Committee would support the scrapping. It must be dealt with urgently.

Preparations for 2009 Election: IEC Briefing
The Chairperson asked for a very brief summary, as a further date would be allocated for more detail to be given.

Mr Moepya noted that the review of the IEC had been completed. Consultations with regard to the establishment of the electoral unit had been completed with South African Local Government Association (SALGA). Operationally, the major issue was that the scanner was quite old, and IEC was looking to replace it. There were time lines set out. On the systems side, the technology was also old, and some issues raised in the Audit Report would be followed through by migration to the SAP system. The review of district boundaries would proceed until May. The IEC had set a target of 22 million on the voters roll.

Specific dates were set out in the presentation. An issue had been raised about the kind of people employed. Committees and panels were used, and IEC wanted parties to be present to raise objections, if they had them, as it was keen only to employ those above board. Another issue discussed in the presentation related to education programmes. The methods of communications were summarised, but he stressed that these were not exclusive. Most spoke to the young people, and that was why those targets had been chosen.

The Chairperson said that at a later stage questions could be asked. However, he reiterated that the voter registration must go hand in hand with the ID campaign that the DHA was expected to be running.

Film and Publication Board (FPB) Annual Report 2006/7 Briefing
Ms Nandisile Mpumlwana, Chairperson, FPB, apologised for the late arrival of the Annual Report, which was due to late printing. She stressed that the team at FPB had worked well, and had received much cooperation from distributors. There had been a strengthening of relationships nationally and internationally and there was good cooperation with the South African Police Services, and Departments of Education and Social Development. However, there were still challenges. The first was the high staff turnover, which was largely due to the lower salaries, and limited mobility. The legislation was another stumbling block. She hoped that the Committee could give support to having the legislation passed so that FPB could be properly configured, not only internally but also with the stakeholders. FPB remained concerned with the balance between freedom of expression and responsibility to those needing protection, particularly children.  She had hopes for future cooperation from internet service providers, because of the explosion in internet and SMS content.

Ms Shokile Bopape-Dlomo, CEO, FPB, noted that the Board was a statutory body created to regulate distribution of films and publications. It did so by age ratings and by advice on suitability. The Board sought to regulate the media environment through the classification of content. It conducted scientific research, and sought to balance the rights of freedom of expression with the protection of children from exposure to potentially disturbing harmful and inappropriate materials.

There was much that the FPB had achieved. It had made progress in pursuing the Strategic Plan, as outlined from page 46 of the Annual Report. This was the first time that the FPB had achieved a clean audit report, with no emphasis of matter raised by the AG. It had succeeded in implementing infrastructure, had invested in the IT infrastructure, and was supported also by DHA. It had much still to do. The Board had been better capacitated, although it was not yet at optimal level. There had been some destabilisation due to high turnover of staff, particularly key portfolio managers. There had been improved compliance, and systems had been set up to ensure reporting in line with requirements. The Amendment Bill had been tabled in Parliament. Stakeholder relationships had been improved.

The strategic objectives and key performance indicators were outlined. She stressed that improvement on systems, including compliance to the PFMA, had been a major focus. The Internal Audit Committee was doing an excellent job. Corporate government had improved, but the fact that the legislation was still outstanding made this a difficult task. There had been implementation of a risk management strategy in this year, and processes were being reviewed. In-house assurance and consulting activities would also get the support of the audit committee.

FPB was committed to implementing the penalty system, which had improved compliance with the Act. It had also committed to implementing standardised operating procedures for monitors, particularly those doing work outside the main office. Priority was being given to the compliance monitoring function, with more monitors having been appointed. Registration of distributors and exhibitors was improving, including registration of the largest retailers.

FPB was committed to being able to respond to technology convergence, including the registration of mobile distributors. They would now bring in content to the FPB for classification. That process was under way. The FPB had continually to review the appropriateness of the age ratings. Researchers would be commissioned, and the FPB would then ensure that the results would impact upon the age rating. It had managed to classify everything that was to be classified, including foreign language films, through seeking expertise outside the FPB.

FPB had promised to initiate dialogue in Southern African Development Community (SADC) in an attempt to standardise across the region. It had established contact in three countries, had assisted Namibia to set up a similar Board, and was in dialogue with Botswana and Nigeria, in light of the amount of material emanating from that country. A standardised rating system with broadcasters and other electronic service providers had started. FPB was working with SABC, including involving them in training programmes. It could have a better relationship with Independent Communications Authority of South Africa (ICASA), but was trying to re-establish this.

FPB had to revisit tariff structures. There had been consultation with stakeholders. It had decided to keep the ratings stable until the new Act was passed. It was committed to reviewing the capacity of the Board to deal with issues of child pornography. Research was done, and a report from the Human Sciences Research Council (HSRC) had been received. The Internet Watch Foundation from UK had assisted in training of content analysts who would trace child pornography. It had also committed to implement the national plans of anti child-pornography arising from the conference in 2005, and had done everything it had promised to do, including initiating changes to the legislation, developing research capacity, and intensifying public awareness. It had also embarked on other communication programmes around safety on the internet and the implications of child pornography, reaching around 53 000 learners. It was up to Parliament to raise and elevate issues relating to child pornography and put them on the agenda.

FPB gave administrative support to the Review Board. It had not made commitments to the IT systems, knowing that it could not deal with everything in this year. Disaster recovery plans, however, were in place. Human resources issues were being dealt with. Employee wellness programmes remained a challenge but DHA was assisting, due to limited resources on the part of the FPB.

Detailed statistics were presented of the number of games and films submitted, classified and exempted. She explained that exemptions would apply to films with no classifiable elements, such as a documentary or sporting programme. Quite a high number had been classified as X-rated, and around 40% as all ages. New classifications were introduced for categories where a child under ten should be accompanied by an adult.

Ms Mapula Makola, CFO, FPB noted that although she had not been appointed until after the end of the financial year, she could deal with the figures. She said that there had been total revenue of R35 million, including a grant of R25 million from DHA. The grant had increased substantially in the past year. FPB was dependent on this grant, which represented about 70% of the total income. Almost all of the regulation fees were taken up in personnel expenses, leaving little for running of programmes. There had been a surplus, but the majority of this was already committed to new IT.

Salaries had increased about 50% from the previous year, as a result of increased capacity, set out in detail in the Annual report. The operating expenditure had almost doubled. Most of the money went to administration staff, followed by examiners' costs and salaries, which represented around 19% of the expenditure in total, but 78% of the figure received from regulation fees. The FPB was considering how to increase its resources. There had been around 10% spent on public relations and marketing, which was also broken down on page 28 of the Annual Report. There had been spending to bring the computer IT up to scratch. About R1.9 was spent on roadshows for anti child-pornography. The balance sheet was tabled and comparisons were given to the previous year's financial position.

Ms Bopape Dlomo noted that the performance bonuses, listed in the Annual Report, had been misstated as a result of a printing error. They amounted to about R300 000, and not R2 million.

Ms Bopape-Dlomo said that the major challenge arose from the delay in passing the Amendment Bill. Regulation of illegal content on cellphones and internet was a problem. There was a need to increase compliance monitoring. The lack of updated technology, retention of skills, and implementation of the new five-year strategy would also pose challenges.

Priorities for 2008 would include the enactment of the Act, strengthening of international partnerships, ensuring retention of skills, and implementing the new strategy and structures. She therefore requested the Committee to assist with lobbying for further resources and fast tracking the passing of the Act.

Discussion
Mr F Beukman asked about the web registration of complaints, and asked if this was already in operation.

Ms Bopape-Dlomo said that the website was being set up.

Mr Beukman asked what management vehicles were used to come to a decision on performance bonuses.

Ms Bopape-Dlomo said that there was a performance management system. However, FPB had been asked by this Committee not to submit the documentation detailing this until requested, and she had not yet received a formal request.

Mr Beukman noted that there were service problems with two travel agencies. He asked if that had been finalised and if there had been any loss to the FPB.

Ms Bopape-Dlomo said that the service problems related to poor service, such as flights not having been confirmed or paid for, and that this had caused inconvenience to staff. There had been no financial loss.

Mr Skhosana asked about the children who were targeted for education. He asked whether this figure could be broken down into provinces, and rural and urban schools.

Ms Bopape-Dlomo said that there were various workshops outlined on page 27. Most were held in those areas where the medium of instruction was English. Fifteen schools had been targeted per province.

Dr S Huang (ANC) noted that page 84 of the Annual Report referred to office rental. He asked why there was only rental listed for Gauteng and Cape Town. He also asked for details of the public works subsidy.

Dr Huang also questioned that there had been a huge increase in the public relations campaign.

Dr Huang noted that in 2007 there had been spending on legal and research services, although this was not shown for the previous year.

Mr Louw thanked the FPB for its presentation and congratulated it on its work. He noted that although there was a clean report, there was still room for improvement of internal controls. He asked what the FPB was doing to address the "significant shortcomings in the system of internal control".

Mr Louw asked why there was no classification business unit in Kwazulu Natal.

Mr Louw noted that the net asset position showed a difference of about R10 million over 2 years, most due to the Public Relations Campaign. He asked how successful the campaign had been and how its success could be measured. He also asked what the Committee could do to get other measures in place.

Mr Louw asked why so much had been spent on subsistence and travelling and the international visit, and what the value of that visit had been.

Ms Mathibela thanked the FPB for the gift of diaries to the Committee. She asked whether FPB was able to monitor children downloading pornography to cell phones.

Mr Gigaba said that this could not presently be regulated. Perhaps the issue would only be addressed if there was a total ban on downloading to a mobile phone.

Kgoshi Morwamoche referred to shortage of monitors in the provinces, and asked how the needs of the provinces were being addressed. Two people could not possibly monitor the whole of Limpopo.

Mr Gigaba said that this was an objective problem. There were too few monitors, and they were already costing a substantial amount.

Kgoshi Morwamoche asked about challenges arising from by laws passed by Local Government. The opening of a porn shop next to Parliament had been challenged. The owner had obtained a licence under a municipal ordinance, although the law stated clearly that there were restrictions on the licensing of this type of premises. He asked if there had been any discussions with Local Government around this issue.

Mr Gigaba said that there was a programme to engage municipalities through SALGA.

Dr Huang asked about regulation of illegal internet content, and how this could be addressed.

Mr Gigaba said that this challenge would continue for some time. Some measures in the Amendment Bill were trying to address illegal content on cell phones and internet. However, in regard to mobile phones, it was likely that extra measures would have to be taken. There would be huge controversy around the issue. It would be difficult to regulate mobile phones in possession of children. Parents could be asked to exercise responsibility, but it was obvious that not all parents were responsible. The public relations campaign was trying to educate the public. The DHA had also been engaging with the mobile operators, and the operators had signed a self-regulation code in 2006. An education campaign, in conjunction with the Department of Education, would target schools. The Department of Public Service and Administration had issued instructions to install filters on all public service computers to prevent their staff downloading indecent material. This would be extended also to computers on public libraries. However, no matter how many regulations were put up, the challenges would remain. There was still nothing to prevent two children from going into a toilet and photographing each other in sexual activity. The children would be aware that they were doing something wrong in photographing and distributing the material, but would not necessarily be aware that they were violating the FPB Act. Education would go part of the way, but did not address all the issues.

The Chairperson noted that there was still need for an addendum to correct the incorrect information in the Annual Report. He proposed that the adoption of the Report would be considered on 26 February. He also proposed that the responses to the remaining questions should be given on that date, as there was no time to continue with the matter now. There were still a number of issues to be debated, including an assessment of the impact of the workshop, and comments on the public relations and advertising.

The Chairperson noted that there was clearly a problem with the Amendment Bill. The National Assembly had done its work. He asked the Deputy Minister to engage with the NCOP to speed up their process.

Committee Programme
The Chairperson noted that the Committee had requested that the provincial managers of Home Affairs should appear before the Committee, but this request had not been acceded to by the National Department. The Committee should resolve that the provincial managers must attend, and the meeting of 26 February would be set aside, hopefully as a full day, otherwise two consecutive days, for their appearance. Their appearance would therefore not take place this Friday. He noted also that the Department of Home Affairs would be appearing before the Standing Committee on Public Accounts the following day.

The meeting was adjourned

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