ATC110526: Report Budget Vote 8: Government Communication & Information System (GCIS) & its Entities: Media Development & Diversity Agency (MDDA) & International Marketing Council (IMC)

Communications and Digital Technologies

Report of the Portfolio Committee on Communications on its deliberations on Budget Vote 8: Government Communication and Information System (GCIS) and its entities: Media Development and Diversity Agency (MDDA) and International Marketing Council (IMC), dated 26 May 2011

 

The Portfolio Committee on Communications, having considered the strategic plans of GCIS, the MDDA and the IMC, reports as follows:

 

1. Background

 

Section 55(2) of the Constitution of the Republic of South Africa (Act 108 of 1996) states that the National Assembly must provide for mechanisms (a) to ensure that all executive organs of state in the national sphere of government are accountable to it; and (b) to maintain oversight of (i) the exercise of national executive authority including the implementation of legislation; and (ii) any organ of state. In terms of the Public Finance Management Act (No. 1 of 1999), the Accounting Officers must provide Parliament or the relevant legislature with their respective institution’s medium-term strategic plan and, where applicable, their annual performance.

 

The Minister in The Presidency: Performance Monitoring and Evaluation tabled the Medium Term Strategic Plan of the Government Communication and Information System (GCIS) and the Strategic Plans for the GCIS entities for 2011-2014 on 9 March 2011. The Committee held briefings with GCIS and its entities on 15 March 2011.

 

In performing its constitutional mandate, the Committee scrutinised the alignment of strategic plans (2011-2014) of GCIS and its entities with the following key government objectives:

• 2011 state-of-the-nation address;
• Budget statement;
• Government’s five priorities;
• Twelve deliverable government outcomes;
• New Growth Path;
• The Minister’s signed performance agreement with the President.

 

The above fundamental principles served as government’s underlying programme of action. The Committee wanted to establish whether the funds allocated would help to transform programmes into actual service delivery action plans within the borders of the country, especially in rural and underserviced areas and beyond.

 

 

 

 

 

 

2. Government Communications and Information System (GCIS) - R496 393 000.00

 

The Minister in the Presidency responsible for Performance, Monitoring and Evaluation to whom GCIS is accountable, Mr OC Chabane, presented an overview of the Strategic Plan of the GCIS. The mandate of the GCIS is to provide communication, leadership and support to government departments and government and its operational requirement is to keep the public informed about policies, legislations, programmes and activities of government through different platforms.

 

The following officials from the GCIS appeared before the Committee on 15 March 2011:

 

Mr OC Chabane - Minister in the Presidency: Performance, Monitoring and Evaluation;

Ms Dina Pule - Deputy Minister in the Presidency: Performance, Monitoring and Evaluation;

Mr Jimmy Manyi - Chief Executive Officer (CEO): GCIS;

Mr Vusi Mona - Deputy CEO: GCIS;

Ms Phumla Williams - Deputy CEO: GCIS..

 

The GCIS has the following programmes with their allocated budget and medium-term outputs:

 

Programme 1: Communication & Content Management – R290 969 000.00

 

The purpose of the programme is to provide strategic leadership in government communication for the purpose of ensuring coherence, coordination, consistency and quality and responsiveness. The programme focused on policy and research, media engagement, communication service agency and content and writing.

 

Programme 2: Government and Stakeholder Engagement – R92 238 000.00

 

The purpose of the programme was to provide leadership and strategic advice to the government communication system. The programme focused on provincial and local liaison, programme support and media development.

 

Programme 3: Administration programme – R113 186 000.00

 

The purpose of the programme is to provide efficient and effective support service to GCIS. The programme focused on finance and supply chain management, human resources, information technology and management, strategic planning and programme management and internal auditing.

 

The challenges facing GCIS includes public perception of government’s performance in relation to the five priorities. The highest negative perceptions were around the Departments of Heath on HIV and Aids, Police on crime, Social Development on grants, Labour, Economic Development and Land Reform. At the operational level under Communications and Content Management Programme, GCIS also experienced challenges in accessing political principals of state institutions and inability to have full authority over departmental and municipality communicators.

 

3. Media Development and Diversity Agency (MDDA) - R43 924 291.00

 

The MDDA is a statutory development agency for promoting and ensuring media development and diversity, set up a partnership between the South African Government and major print and broadcasting companies to assist in amongst others developing community and small commercial media in South Africa

 

The overall objective of the agency is to ensure that all citizens can access information in a language of their choice and to transform media access, ownership and control patterns in South Africa, to strengthen the sector through provision and leveraging of resources, knowledge and skills in pursuit of promoting media development and diversity.  

 

The MDDA was represented by the following persons:

 

Ms Phumelele Nzimande – Acting Chairperson;

Mr Lumko Mtimde – Chief Executive Officer;

Nebo Legoabe – Board member;

Nadia Bulbulia – Board member;

Louise Vale – Board member;

Mshiyeni Gungqisa – Chief Financial Officer;

Lihle Mndebela – HR & Corporate Affairs Manager;

Nkopane Maphiri – Programmes Director;

Kgomotso Moeketsi – Manager in the CEO’s office;

Hariet Mhlanga – Executive Secretary.

 

The MDDA has the following key result areas:

 

KRA 1: Grant and seed funding – R24 982,863.00

 

To promote and strengthen the small commercial print and community media, to enhance the sustainability of the community and small commercial media and to strengthen and consolidate beneficiary projects.

 

KRA 2: Fundraising and resource mobilisation – R600 000.00

 

To strengthen, grow and protect the MDDA capital base, thus accordingly increase the funding and resource base of the MDDA and its beneficiaries.

 

KRA 3: Research, knowledge management, monitoring and evaluation – R572  818.00

 

To enhance learning and innovation in the sector and to strengthen relations with MDDA contractual and non-contractual stakeholders.

 

KRA 4: Advocacy for media development and diversity – R350 000.00

 

To contribute towards improving the operating environment of the community and small commercial media sectors, to enhance and position MDDA as leader in the media development and diversity sector and to promote media literacy and culture of reading.

 

KRA 5: Diverse and quality content – R2 000 000.00

 

To enhance and improve programming, production and build capacity in the community broadcasting sector.

 

The major challenge for the MDDA remains a sharp decline of the financial support by mainstream print media to the community print. The other challenge includes inadequate financial support from all spheres of government to sustain the community media through placing of advertisements that advocates government programmes and activities.

 

In terms of the tariffs, the MDDA brought to the attention of the Committee that although the regulations divide tariffs payable by licensees to ICASA in different categories, namely commercial, community and public media, community broadcasting is charged the same amount (R82 000 a month) as if they fall into other categories. This causes financial instability and in many instances leads to the closure of the community media sector.

 

Under human resources there were two challenges: firstly, there was diminished capacity for the MDDA to manage, monitor, evaluate and report adequately due to limited financial resources to recruit and retain best employees that the market could offer. Secondly, there was general dissatisfaction among staff regarding salaries and benefits offered by the organisation compared to the knowledge and skills requirements, given the broad spectrum of projects across the country.

 

4. International Marketing Council of South Africa (IMC) - R146 589 000.00

 

The mandate of the IMC is to build South Africa’s national brand reputation in order to improve South Africa’s global competitiveness, to develop and articulate the value proposition and positioning that will drive the long-term reputation of Brand South Africa, to build pride and patriotism among South Africans with the aim of uniting the nation by encouraging all South Africans to “live” the Brand, and in so doing define “South Africanness”. The ultimate aim is to increase South Africa’s global competitiveness by developing symbiotic partnerships with all stakeholders who deliver on (and leverage) the national brand and aligning them to enhance South Africa’s reputation.

 

The IMC presentation was done by Ms Anitha Soni, Chairperson of the Board, and Mr Miller Matola, Chief Executive Officer.

 

In pursuit of its overarching objectives, the IMC has the following six specific strategies:

 

Brand Strategy Development and Management – R34 650 000.00

 

The strategy is aimed at the articulation and roll out of brand positioning and to ensure that all stakeholders are aligned to the national brand in terms of corporate identity, messaging and imaging.

 

Reputation Management – R24 400 000.00

 

To develop a thought leadership and media strategy aligned to the new positioning to influence global perceptions that will drive the long-term reputation and Brand South Africa.

 

Knowledge Management – R16 200 000.00

 

Maintenance of an integrated research and knowledge management strategy across global and domestic platforms (e.g. international and domestic brand tracking studies etc.). Research and tracking of Brand South Africa’s key performance indicators.

 

Stakeholder & Partners Alignment and Integration – R31 300 000.00

 

The IMC follows a collaborative approach in marketing Brand South Africa, ensuring consistency and alignment in how South Africa is projected locally and internationally.

 

Organisational Development – R3 260 000.00

 

Ongoing enhancement of internal processes and systems towards a stakeholder-driven, project management, strong organisation; Board development; ongoing refinement of governance framework; and corporate social investment (CSI) strategy roll out.

 

Prudent Financial Management and Control – R35 841 000.00

 

Ensuring proper financial management control; governance and compliance; Risk Management and Rescue Plan; cost-saving and environmental measures; and the IMC funding model.

 

 

 

 

 

5. Recommendations

 

5.1        The Committee is satisfied with the GCIS Strategic Plan (2011-2014) in terms of what it seeks to do. As stipulated in the Money Bills Amendment Procedure and Related Matters Act which vests powers in Parliament to reject or recommend budgets of departments. The Portfolio Committee on Communications in this regard, therefore, recommends the following:

 

·         GCIS should be given more authority over government spokespersons in order to intervene where necessary;

·         The Head of Communications and spokespersons of government departments should be allowed to attend high-level departmental meetings in order to speak from an informed perspective and authority

·         Attendance of the National Communicators’ Forum must be attached to the performance agreement of all government communications personnel;

·         Speeding up the process of appointing a service provider for the communications curriculum;

·         The Committee, however, recommends that the budget for GCIS be supported.

 

5.2        The Committee acknowledges the achievements of the MDDA regardless of the budgetary constraints, particularly in supporting local community media and providing opportunities for the youth.

 

·         The Committee, however, recommends that in order for the agency to fulfil its mandate, GCIS should initiate discussions with National Treasury for the possibility of allocating more funds to the MDDA.

·         GCIS as a leader of government communications must influence all government departments, municipalities and state entities to contribute a certain percentage of their total budget allocation to communications chief directorates or divisions towards advertising through the community media to ensure long-term sustainability of the sector. Failure to adhere to this will result in an amendment to the MDDA Act to force departments to do so.

·         The Committee also recommends that the MDDA and ICASA should urgently attend to the issue of tariffs as specified in the MDDA Act.

·         The Committee also acknowledges the HR financial constraints and therefore recommends that the MDDA conducts a comparative study regarding competitive employees’ salaries and benefits from other countries

 

5.3        The Committee supported the IMC for branding and marketing the country internationally and requested the entity to provide the Committee members with relevant information in order to further develop a better understanding of the entity’s activities.

 

Report to be considered.