ATC200609: Report of the Portfolio Committee on Home Affairs: Strategic and Annual Performance Plans And Budget of Vote 5 -Department of Home Affairs, Electoral Commission and Government Printing Works Dated 29 May 2020

Home Affairs

REPORT OF THE PORTFOLIO COMMITTEE ON HOME AFFAIRS: STRATEGIC AND ANNUAL PERFORMANCE PLANS AND BUDGET OF VOTE 5 -DEPARTMENT OF HOME AFFAIRS, ELECTORAL COMMISSION AND GOVERNMENT PRINTING WORKS DATED 29 MAY 2020.

The Portfolio Committee on Home Affairs (the Committee) met with the Department of Affairs (DHA) on 7 May 2020, the Electoral Commission of South Africa (IEC) and the Government Printing Works (GPW) on 11 May 2020 on their Strategic Plans and 2020/21 Annual Performance Plans (APPs). The Committee also met with the DHA and the entities on 3 March 2020 on their respective budgets and on 19 and 29 May 2020to consider this report, reports as follows:

1. The Department of Home Affairs

1.1. Introduction

The purpose of the Department of Home Affairs is to:

Determine and safeguard the identity and status of citizens.
Regulate immigration to ensure security, promote the development and fulfil South African international obligations.

Mandate: The mandate of DHA is derived from the Constitution and various acts of Parliament and policy documents. The DHA’s services are divided into two broad categories: Civic Services and Immigration Services. The DHA is mandated to manage citizenship and civic status international migration, refugee protection, and the population register. The DHA is the key enabler of national security, citizen empowerment, efficient administration and socioeconomic development. These functions must be managed securely and strategically.

Vision: A vision of the Department of Home Affairs is that of South Africa where identity, status and citizenship are key enablers of citizen empowerment and inclusivity, economic development and national security.

Mission: The DHA’s mission to carry out its mission in line with its commitment to citizen empowerment and inclusivity, economic development and national security, by:

Being an efficient and secure custodian of citizenship and civil registration
Securely and strategically managing international migration
Efficiently managing asylum seekers and refugees
Efficiently determining and safeguarding the official identity and status of persons

In order to fulfil the above, the Department of Home Affairs prepared the new Strategic Plans for the 2020 to 2025 period.The Strategic Plan was reported that is aligned with the new Medium Term Strategic Framework (MTSF) of Government.

The revised Framework for Strategic Plans and Annual Performance Plans (2019) was used for the development of the DHA strategic planning instruments (Strategic Plan for the 2020 to 2025 period and Annual Performance Plan for 2020/21). DHA Planning Instruments cover the following priorities:

National Priorities (as per the National Development Plan, Apex Priorities and MTSF related commitments).
Ministerial Priorities:

Establish an effective Border Management Authority (BMA)
Complete the Modernisation Programme
A comprehensive review of Immigration Policy and subsequent legislation
Upgrade the 6 priority land ports of entry / One-Stop Border Post (OSBP) Policy
Improved client experience through leadership (Moetapele)
Early birth registration
Critical skill visas
“War on Queues”
key elements of the White Paper on Home Affairs which was approved by Cabinet for implementation in December 2019
Improvement of service delivery initiatives (e.g. footprint development/access, efficient issuance of enabling documents.

The DHA has identified the following outcomes for the 2020 to 2025 period:

Secure management of international migration resulting in South Africa’s interests being served and fulfilling international commitments
Secure and efficient management of citizenship and civil registration to fulfil constitutional and international obligations
Efficient asylum seeker and refugee system in compliance with domestic and international obligations
Secure population register to empower citizens, enable inclusivity, economic development and national security
DHA positioned to contribute positively to a capable and developmental state

DHA’s contribution to the National Development Plan (NDP)

The National Development Plan aims to eliminate poverty and reduce inequality by 2030 and the major focus of the NDP is to confront the triple challenge of poverty, inequality and unemploymentby achieving higher growth rates.

The DHA has a critical contribution to make to the achievement of the NDP 2030 objectives:

The inclusion of all citizens in democracy and development is enabled by providing them with status and identity that gives them access to rights and services. This must be done in an efficient, effective, professional and secure manner.
A further priority for the DHA is to facilitate the acquisition of the critical skills needed for economic growth as determined by the Department of Higher Education and Training (DHET) to build our own skills base.
The DHA must continue to drive integrated and coordinated border management to ensure our borders are effectively protected, secured, and well-managed.
The DHA could play a key role in enabling regional development by working with SADC countries through the Department of International Relations and Cooperation (DIRCO) to establish efficient, secure and managed migration.
The DHA is central to harnessing the 4th industrial revolution and building a capable state. The modernization programme of the DHA can reduce fraud and the cost of doing business by enabling e-government which will attract more investment into the country.

1.3.The Medium Term Strategic Framework (MTSF) Commitments from 2019 to 2024.

APEX Priority	Link to Outcome	DHA contribution	MTSF Commitment (as per DPME)
Economic Transformation and Job Creation	Outcome 4 – Decent employment through inclusive economic growth	Secure the identity of citizens and foreigners Design and implementation of NIS Issuance of critical skill visas and implementation of revised visa regime (simplification aspects, the rollout of e-Visa, etc.)	95% of critical skills visas adjudicated within 4 weeks by 2022 Implementation of the revised visa regime
(5) Social Cohesion and Safe Communities	Outcome 3 – All people in SA are and feel safe	Secure the borders of the country through the establishment and operationalization of the BMA Continue with the implementation of a risk-based approach to immigration Provision of enabling documents to access rights and services, e.g. early birth registration and smart ID cards	BMA established by 2020 BMA operational by 2021 at 11 ports of entry and 5 segments of the land borderline (BMA fully operational by 2024) 100% of selected ports of entry equipped with biometric functionality Implementation of ABIS by 2022/23.
6) A Capable, Ethical and Developmental State	Outcome 12 - An efficient, effective and development-oriented public service	Reposition the DHA in support of a capable, ethical and developmental state through the implementation of new service delivery, operating and organizational models supported by the required policy and legislative framework
(7) A better Africa and World	Outcome 11 - Create a better South Africa, a better Africa and a better world	Introduce a world-class e-Visa regime and rollout of e-Visa

APEX Priority

Link to Outcome

DHA contribution

MTSF Commitment (as per DPME)

Economic Transformation and Job Creation

Outcome 4 – Decent employment through inclusive economic growth

Secure the identity of citizens and foreigners

Design and implementation of NIS

Issuance of critical skill visas and implementation of revised visa regime (simplification aspects, the rollout of e-Visa, etc.)

95% of critical skills visas adjudicated within 4 weeks by 2022

Implementation of the revised visa regime

(5) Social Cohesion and Safe Communities

Outcome 3 – All people in SA are and feel safe

Secure the borders of the country through the establishment and operationalization of the BMA

Continue with the implementation of a risk-based approach to immigration

Provision of enabling documents to access rights and services, e.g. early birth registration and smart ID cards

BMA established by 2020

BMA operational by 2021 at 11 ports of entry and 5 segments of the land borderline (BMA fully operational by 2024)

100% of selected ports of entry equipped with biometric functionality

Implementation of ABIS by 2022/23.

6) A Capable, Ethical and Developmental State

Outcome 12 - An efficient, effective and development-oriented public service

Reposition the DHA in support of a capable, ethical and developmental state through the implementation of new service delivery, operating and organizational models supported by the required policy and legislative framework

(7) A better Africa and World

Outcome 11 - Create a better South Africa, a better Africa and a better world

Introduce a world-class e-Visa regime and rollout of e-Visa

1.4. Progress on MTSF Commitments 2014 to 2019

MTSF Commitment 2014 to 2019	Progress	Challenges
Establishing and putting into operation the Border Management Authority by 2017/18		A major dependency for the establishment and operationalization of the BMA was the passing of legislation, which is linked to funding. It is anticipated that the BMA Bill will be finalized by Parliament by early 2020.
Phased implementation of the Integrated Border Management Strategy (IBMS) in conjunction with other departments and organs of state
Review of the policy on international migration and the amendment of relevant legislation in support thereof (Immigration and Refugees Acts)		Delays were experienced with the Socio-economic Impact Assessment System (SEIAS). SEIAS is an essential prerequisite to the next phases for the drafting of the Immigration Bill, and its subsequent consultation process with the identified clusters.
Registration of 810 000 or 74% of births within 30 calendar days
The rollout of biometrics to all ports of entry equipped with the enhanced movement control system (EMCS)		The interim biometric solution was rolled out to 10 ports of entry and selected counters at Cape Town harbour. Capacity limitations within the Information Services Branch. Connectivity challenges at 38 ports of entry. The further rollout was positioned against the priority of piloting the newly developed full biometric solution in the 2018/19 financial year.
Ensuring that 85% of critical skills visas are adjudicated within 4 weeks
Developing the National Identity System (NIS) by 2018/19 and having it operational by 2019/20		The delay with the NIS was mainly due to complexities around the supply chain management processes in the appointment of a preferred service provider. Dependency on service providers and a lack of internal IT capacity.
The establishment of the DHA contact center and two visa premium centers were achieved in the 2015/16 and 2016/17 financial years respectively

1.5. Progress against 5 Year Strategic Objectives for 2014 to 2019

Strategic Objective	5 Year Target	Progress
An integrated and digitized National Identity System (NIS) that is secure and contains biometric details of every person recorded on the system	NIS operational by 2019/20 (as per MTSF)	This target was not achieved due to: Supply Chain Management challenges in the appointment of a preferred service provider. Dependency on service providers and lack of adequate IS capacity in DHA.
Ensure that systems are in place to enable the capturing of biometric data of all travellers who enter or exit SA legally	100% of all designated ports of entry equipped with interim biometric systems capable of processing travellers (at ports of entry equipped with EMCS) by 2018/19 (as per MTSF)	The target was not achieved. Capacity limitations within the Information Services Branch. Connectivity challenges at 38 ports of entry. The further rollout was positioned against the priority of piloting the newly developed full biometric solution in the 2018/19 financial year.
Movement of persons in and out of the country managed according to a risk-based approach	SA’s borders effectively defended, protected, secured and well-managed through: Policy and legislation development (Immigration and Refugees Bills submitted to Parliament for approval by 2018/19 as per MTSF, BMA legislation finalized) Policy implementation (Integrated Border Management Strategy implemented as per APP, 2 Borderline surveys conducted, 400 Law enforcement operations/inspections conducted, 25 ports of entry and refugee reception infrastructure improvement)	The achievement of the target is dependent on the establishment of the BMA and the development of legislation to give effect to the White Paper on International Migration.
Enabling documents issued to foreigners efficiently and securely	Full compliance with service standards set for enabling documents issued to foreigners (permanent residence applications – specific sections, business and general work visas and critical skills visas) by 2019/20 85% for Permanent Residence Permits 90% for Business and General Work Visas 85% for Critical Skills Visas	The target was achieved up to the 2018/19 financial year. The DHA is on track for achieving the 2019/20 targets.
Refugees and asylum seekers are managed and documented efficiently	Establishment of public-private partnership process complied with (Request for Proposal submitted to National Treasury for approval)	The target was discontinued in the 2018/19 financial year pending agreement on a viable funding model in conjunction with National Treasury.
Eligible citizens are issued with enabling documents relating to identity and status	Enabling documents issued to 100% of identified citizens (births registered within 30 calendar days and smart ID cards issued to a projected 3 810 000 citizens)	The target was achieved up to the 2018/19 financial year.
	Full compliance with service standards set for enabling documents issued to citizens for adult passports (new live capture system) by 2019/20	The target was achieved up to the 2018/19 financial year. The DHA is on track to achieve the 2019/20 target.
Secure, effective, efficient and accessible service delivery to citizens and immigrants	A professional DHA cadre established through training of nominated staff in relevant initiatives to transform the DHA into a highly secure and modern department (100% of nominated staff trained)	The target was achieved up to the 2018/19 financial year.
	DHA repositioned as a modern, secure and professional department by 2019/20 (fifth phase)	The target was achieved up to the 2018/19 financial year.
Ethical conduct and a zero-tolerance approach to crime, fraud and corruption	Counter Corruption Strategy of DHA implemented in respect of Prevention, Detection, Investigations and Resolution by 2019/20 (100% of identified interventions implemented as outlined in the APP)	The target was achieved up to the 2018/19 financial year.
Good governance and administration	No audit qualification by 2019/20	The achievement of the target is subject to the audit outcome for 2019/20. Unqualified outcomes were recorded for the last three financial years.
Collaboration with stakeholders in support of enhanced service delivery and core business objectives	Communication Strategy implemented in respect of Corporate Communication Services, Media Relations and Public Awareness Engagement	The target was achieved up to the 2018/19 financial year.

1.6. Strategic Plan Outcome Targets 2020 to 2025

Outcome	Indicator	Baseline31 March 2020	5 Year Target (2025)	Responsible
Secure management of international migration resulting in South Africa’s interests being served & fulfilling international commitments	Risk-based & strategic immigration approach implemented against predetermined measures that ensure sovereignty, national security, public safety, stability & development	BMA legislation enacted.	BMA incrementally rolled out as per the BMA Roadmap 2032 to: 36 ports of entry 10 segments of the land borderline &2 community crossing points	Border Management Authority (BMA)
		Transaction Advisor appointed for the redevelopment of 6 priority land ports of entry.	Construction & redevelopment of six land ports of entry as one-stop border posts completed by 2025.	BMA
		BMCS piloted at 2 additional ports of entry Draft Immigration Bill (including amendments to the Refugees Act) submitted to Minister for approval 160 law enforcement operations/ inspections conducted to ensure compliance with immigration & DHA legislation.	A risk-based & strategic approach to immigration implemented in respect of: Legislation implemented to support the White paper on International Migration & Secure entry, documented stay & departure of persons through the rollout of biometric functionality & law enforcement operations.	(Immigration Services & Information System (IMS/ IS)
Secure management of international migration resulting in South Africa’s interests being served & fulfilling international commitments	Risk-based & strategic issuing of visas & permits against predefined, percentage-based targets to grow the economy by 2024/25	100% compliance with set service standards for: Permanent residence permits Business & general work visas Critical skill visas	100% compliance with set service standards for risk-based & strategic issuance of visas & permits to grow the economy by 2024/25 as outlined in the annual performance plans for: Permanent residence permits Business & general work visas Critical skill visas	IMS
	Risk-based & strategic visa system implemented	The pilot of e-Visa (Phase 1 - temporary residence visa for tourist module) in 6 missions	E-Visa rolled out to all selected countries (106) by 2025	IS
Secure & efficient management of citizenship & civic registration to fulfil constitutional & international obligations	Percentage of identified citizens & holders of permanent residence permits to which enabling documents are issued by 2024/25.	100% (3 810 000 - Smart ID cards = 3 million Births within 30 days = 810 000)	Enabling documents issued to 100% of identified citizens (including naturalized citizens) & holders of permanent residence permits (births registered within 30 calendar days & smart ID cards issued to a projected 19 050 000 by 2025).	Civic Services (CS)
	Legislation in operation in respect of the new Marriage Act	Green Paper on the recognition of marriages submitted to the Minister for approval.	New Marriage Act implemented to regulate all marriages	Infrastructure Planning & Support (IPS)
	Percentage of compliance with service standards set for adult passports issued (new live capture system) by 2024/25.	100% compliance with set service standard	100%	CS
Efficient asylum seeker &refugee system in compliance with domestic &international obligations.	Effective &efficient recording & monitoring of asylum seekers &refugees.	New PI	Asylum Seeker & Refugee System implemented	IS
Secure population register to empower citizens, enable inclusivity, economic development & national security.	National Identity System (NIS) operational as per requirements.	Specifications for NIS approved by DG.	NIS is operational by 2025.	IS
	Legislation in operation to regulate the collection, storage, accessing & processing of personal information.	Official Identity Management Policy submitted to Cabinet for public consultation	Population Register Act implemented to regulate the collection, storage, accessing & processing of personal information	IPS
DHA positioned to contribute positively to a capable & developmental state.	Measures implemented to reflect a repositioned DHA that contributes positively to a capable & developmental state.	White Paper on Home Affairs approved by Cabinet for implementation in December 2019. A final draft of the DHA Bill submitted to Cabinet for approval for public consultation.	DHA Act implemented to effect the repositioning of the department as a secure & modern department.	IPS
		New PI	Service Delivery Model implemented in line with repositioned DHA.	IPS
		DHA Access model approved by MMM	DHA Access Model implemented in support of the repositioning of the DHA.	IPS
		Communication Strategy implemented as per the communication plan.	Communication Strategy implemented as per the communication plan.	IPS
		Counter corruption strategy implemented as per set targets	Counter Corruption Strategy for DHA implemented in terms of initiatives outlined in Annual Performance Plans.	Counter Corruption & Security Service (CCSS)

1.7. Civic Services Annual Performance Plan (APP) Targets2020 to 2021

1.8. Summary of BMA and Immigration Services Annual Performance Plan (APP) Targets 2020 to 2021.

1.9. Summary of Administration Annual Performance Plan (APP) Targets 2020 to 2021.

1.10. Summary and Analysis of the Budget of the Department of Home Affairs for the financial year 2020/21

Over the medium term, the DHA will focus on repositioning itself as a modern and secure organization; improving and expanding client interfaces and service delivery imperatives; establishing and operationalizing a border management agency; streamlining and securing international migration; and establishing public-private partnership (PPP) in support of key infrastructure projects.

The DHA plays a crucial role in safeguarding the identity and status of citizens and regulate immigration to ensure security, promote the development and fulfil South Africa’s international obligations. The department is currently overhauling its IT infrastructure, introducing the E-VISA regime, piloting the One-Stop Border Posts, and Parliament is due to pass the Border Management Authority (BMA) Bill.

The 2020/21 financial year budget supports the long-standing policy priorities of the DHA. Some of the key highlights of Vote 5 include:

To maintain the issuance of smart identity cards and registration of birth as an entry to the National Population Register (NPR). The DHA targets to issue 9 million smart identity cards over the MTEF. In this regard, DHA has allocated an amount of R7.5 billion for Service Delivery to Provinces to achieve this target.
The Department has embarked on the program to simplify the issuance of permits and visas. This will be achieved by removing unnecessary barriers to requirements. In this regard, the DHA has entered into visa waiver agreements with selected countries while also rolling out the e-visa system starting with Kenya and India, with the intention to extend it to Nigeria and China. The Department has allocated R 759.6 million for this purpose.
To improve and expand client interface, the DHA requires adequate and skilled personnel. Therefore, R7.1 billion is set aside over the medium term for expenditure on compensation of employees.
The DHA is planning to incrementally implement the Border Management Agency (BMA) during the MTEF. The processing of the BMA Bill is in its final stages and is likely to be signed into law during the 2020/21 financial year. As such, an amount of R109.5 million has been set aside over the MTF period.
In line with the implementation of the BMA, the Department continues to streamline and secure international migration. The DHA is introducing an advanced passenger processing system, which would enable passenger screening at the point of departure, instead of arrival. Over the medium term, the Department will allocate an additional R606 million for the Admission Service sub-programme in the immigration programme, and R486 million for the advanced passenger processing system over the same period.

Table 2: Overall Budget 2019/20 and 202/21 – Department of Home Affairs

Programme	Budget		Nominal Increase / Decrease in 2020/21	Real Increase / Decrease in 2020/21	Nominal change in 2020/21	Real change in 2020/21
R million	2019/20	2020/21	Nominal Increase / Decrease in 2020/21	Real Increase / Decrease in 2020/21	Nominal change in 2020/21	Real change in 2020/21
1. Administration	R2 540,5	R2 349,1	-R171,4	-R270,4	-7,53%	-11,43%
2. Civil Affairs	R5 692,9	R5 066,6	-R626,3	-R838,8	-11%	-14,75%
3. Immigration Affairs	R1 294,3	R1 614,0	R319,7	R251,7	24,7%	19,45%
TOTAL	R 9 527,7	R9 029.7	-R478,0	-R858,6	-5,23%	-9,22%

*Nominal Increase/Decrease*	*Is when inflation is not taken into account*
*Real Increase/Decrease*	*Is when inflation is taken into account*

Source: National Treasury (2020)

The DHA receives only a share of 1.2 percent from the R1.95 trillion. For the 2020/21, the Department receives an allocation of R9.029 billion compared to the R9.527 billion adjusted allocations for 2019/20. As stated previously, the adjusted budget includes revenue generated by the Department. Without inflation (nominally), the Department’s budget decreases by 5.2 percent from the previous year. This allocation is much lower in real terms as the Department is allocated a decrease of 9.2 percent, which translates into a decrease of R858.6 million in real rand value. The Department’s responsibilities keep increasing considering the BMA, One-Stop-Boarder-Post and modernisation of its IT infrastructure.

Only the Immigration Affairs Programme which shows a real increase of R251.7 million (19.5 percent). This increase could be attributed to the implementation of the One-Stop Border Post, the E-Visa regime and the procurement of the Advanced Passenger Processing System. Both Administration and Civil Affairs programmes have been allocated a smaller budget from the adjusted allocation of 2019/20. However, given the fact that the Department’s revenue collected will be appropriated in September 2020, its respective programme budgets are likely to increase.

The Administration Programme budget is reduced by R 270.4 million (11.43 percent) in real rand value when taking into consideration inflation. Programme 2: Civil Affairs experiences the largest budget reduction by R838.8 million (14.75 percent) in real terms. In terms of economic classification, the main cost drivers for the Vote is a compensation of employees (COE) at 42.8 percent (R3.892 billion), goods & services at 30.3 percent (R2.734 billion) and transfer payments to the Electoral Commission at 26.4 percent (R2.218 billion).

1.11 Allocation per programme

Figure 2 below shows a comparison of the proportional allocations per the main programme between 2019/20 adjusted and 2020/21 voted funds. The Citizen Affairs programme retains its above 55 percent share of the total budget. There is an increase in terms of percentage share for Immigration Affairs up from 15 percent in 2019/20, to 18 percent whereas there is a decline 2 percent for Administration from 28 percent in 2019/20 to 26 percent in 2020/21 financial year.

Figure 1: comparison of the split of the Department of Home Affairs budget between programmes

Programme 1: Administration

The Administration programme is entrusted to provide leadership, management and support services to the department.

Table 3: Programme 1: Administration

Programme	Budget		Nominal Increase/ Decrease in 2020/21 Rand)	Real Increase/ Decrease in 2020/21 (Rand)	Nominal Percent change in 2020/21	Real Percent change in 2020/21
R million	2019/20	2020/21	Nominal Increase/ Decrease in 2020/21 Rand)	Real Increase/ Decrease in 2020/21 (Rand)	Nominal Percent change in 2020/21	Real Percent change in 2020/21
Ministry	42.6	38.7	-3,9	-5,5	-9,15%	-12,98%
Management Support Services	248.3	207.5	-40,8	-49,5	-16,43	-19,95
Corporate Services	795,3	587,2	-208,1	-232,8	-26,17%	-29,28%
Transversal Information	909,6	940,9	31,3	-8,4	3,44%	-0,92%
Technology Management
Office Accommodation	544,8	574,7	29,9	5,7	5,49%	1,04%
TOTAL	2 540,6	2 349,1	-191,6	-290,6	-7,57	-11,44%

Source: National Treasury (2020)

The Administration programme receives R2.349 billion for 2020/21 compared to an adjusted appropriation of R2.539 billion the previous year. The current allocation translates into a decrease of 7.57 percent (or R191.6 million) before inflation, and 11.4 percent (or R290 million) when inflation is considered. Except for the Office Accommodation sub-programme, all others decline in real terms. The Office Accommodation sub-programme budget shows an increase of R 6 million (1.04 percent) in real terms. This sub-programme will fund the refurbishment of its existing mobile unit fleet and procuring an additional 15 units in the 2020/21 financial year. Over the medium term, expenditure will, however, decrease as funds will be shifted to Programme 2 to increase IT capacity in provinces.

In terms of economic classification expenditures, the biggest cost drivers in this programme are the following current payments:

Compensation of employees – R547.4 million (22.8 percent)
Goods and Services – R1.785 billion (76.5 percent). The mobile unit fleet will be refurbished and additional units purchased to expand the DHA client interfaces, and continue the IT modernization processes (including a paperless live capture system).

Programme 2: Citizen Affairs

The Citizen Affairs branch is responsible for providing secure, efficient and accessible services and documents to citizens and lawful residents. It ensures that entry to the population register happens within 30 days of a child’s birth. It maintains the number of smart identity cards and it has targeted at least 3 million per year. Citizen Affairs targets to issue 90 percent of machine-readable adult passports through the new live capture process within 13 working days.

Table 3: Programme 2: Citizen Affairs

Programme	Budget		Nominal Increase/ Decrease in 2020/21	Real Increase/ Decrease in 2020/21	Nominal Percent change in 2020/21	Real Percent change in 2020/21
R million	2019/20	2020/21	Nominal Increase/ Decrease in 2020/21	Real Increase/ Decrease in 2020/21	Nominal Percent change in 2020/21	Real Percent change in 2020/21
Citizen Affairs Management	25,5	19,3	-5,9	-7.0	-23,41%	-26,64%
Status Services	1 084,2	91,9	-992,2	-996,2	-91,52%	-91,88%
Identification Services	316,4	322,8	6,4	-7,2	2,02%	-2,28
Service Delivery to Provinces	2 096,7	2 248,9	152,2	57,4	7,26%	2,74%
Electoral Commission	2 012,7	2 218,9	206,2	112,7	10,24%	5,60%
Represented Political Parties’ Fund	157,8	164,7	6,9	0,0	4,37%	-0,03
TOTAL	5 693,0	5 066,6	-626,4	-839,9	-11,0%	-14,75%

Source: National Treasury (2020)

The Citizen Affairs branch budget declines from R 5.693 billion in 2019/20 adjusted allocation to R5.066 billion in the 2020/21 financial year. This is a reduction of R626.4 million (or 11.0 percent) in nominal terms and R839.9 million (or 14.75 percent) with inflation. The Electoral Commission and Service Delivery to Provinces sub-programmes show increases in both nominal and in real terms. The Electoral Commission increases from R2.012.7 billion in 2019/20 to R2.218 billion. This is a growth of 10.24 percent in nominal terms and 5.6 percent real terms. Whilst the Service Delivery to Provinces sub-programme shows an increase from R2.096 billion in 2019/20 to R2.248 billion in 2020/21 financial year. With inflation, this represents a 2.74 percent increase from the 2019/20 adjusted budget.

The increases on both sub-programmes could be attributed to the preparation of the local government election due to take place in 2021. As per the norm, the Electoral Commission will shortly initiate the voter registration campaign and will need additional resources to prepare for the local government election. The Service Delivery to Provinces sub-programme will increase efforts to issue identification documentation to potential voters.

Programme 3: Immigration Affairs

The immigration affairs branch facilitates and regulates the secure movement of people through ports of entry into and out of the Republic of South Africa. It also determines the status of asylum seekers and regulates refugee affairs. Programme 3 has four sub-programmes under it.

Figure 2: Comparison between 2019/20 and 2020/21 Immigration Affairs budget

Constituting only 17.8 percent of the Department’s budget, the Immigration Affairs programme has the lowest spending area. However, the programme’s budget increases from R1.294. billion in 2019/20, to R1.614billion in 2020/21. This is the only main programme within the Department in which allocation grows in both nominal and real terms from the adjusted allocation of 2019/20.

Table 4: Programme 3: Immigration Affairs

Programme	Budget		Nominal Increase/ Decrease in 2020/21	Real Increase/ Decrease in 2020/21	Nominal Percent change in 2020/21	Real Percent change in 2020/21
R million	2019/20	2020/21	Nominal Increase/ Decrease in 2020/21	Real Increase/ Decrease in 2020/21	Nominal Percent change in 2020/21	Real Percent change in 2020/21
Immigration Affairs Management	61,1	22,6	-38,5	-39,5	-63,01%	-64,57%
Admission Services	768,8	1 106,9	338,1	291,4	43,98%	37,91%
Immigration Services	257,6	272,4	14,8	- 3,3	5,75%	1,29%
Asylum Seekers	206,9	212,1	5,2	- 3,72	2,51%	-1,81%
TOTAL	1 294,4	1 614,0	319,6	251,6	24,7%	19,44%

Strong growth in this programme is driven by t the Admission Services sub-programme (37.91 real growth) On the contrary, the Immigration Affairs Management sub-programme has been drastically reduced to R22.6 million from R61.1 million the previous year.

Growth in the Immigration Affairs programme is intended to fund the establishment of the Border Management Authority – which will incrementally assume responsibility for enforcing border law at ports of entry-, as well as establishing new immigration-related systems. A passenger name record system and advanced passenger processing system will be funded through the Admission Services sub-programme.

2. THE ELECTORAL COMMISSION OF SOUTH AFRICA

The Electoral Commission of South Africa (IEC) is South Africa’s electoral management body. The IEC is an independent organization established under Chapter 9 of the Constitution of South Africa1. Its independence as an autonomous body is underwritten by the Electoral Commissions Act 51 1996, 3(1), (2). In terms of Section 190(1) of the Constitution, the Electoral Commission must manage elections at national, provincial and municipal legislative bodies in accordance of national legislation; ensure that those elections are free and fair; and declare the results of those elections within a period that must be prescribed by national legislation and that is as short as reasonably possible.

The Electoral Commission Act, 51 of 1996 outlines the duties and functions of the IEC defined in Section 5. This includes to manage any elections; ensure that any election is free and fair; promote conditions conducive to free and fair elections; promote knowledge of sound and democratic elections processes and compile; maintain a register of parties; compile and maintain a voter's roll to mention but a few examples.

The purpose of this brief is to provide a summary and analysis of the budget and Annual Performance Plan (APP) of the IEC for the 2020/21 financial year. To provide the context ofthis analysis, the paper commences by outlining the IEC’s strategic objectives and then provides a brief analytical overview of the 2018/19 performance.

2.1 Policy priorities for the electoral commission for 2020/2021

For the 2019 to 2024 Medium Term Strategic Framework (MTSF), the IEC will focus on the following key policy priorities:

strengthen the regulatory space concerning the requirements for electoral participation;
place South Africa’s electoral democracy on the cutting edge of digital innovation with a view
to increased voter convenience;
increase public confidence in electoral outcomes;
work with partners in electoral democracy to increase voter participation, especially among the youth;
anticipate and provide advice concerning the national policy debate on the electoral system; and
assess the viability of composite elections in the Republic.

2.2 Overview of the Electoral Commission performance during 2018/19

The IEC’s performance for the 2019/2020 financial year will be contained in its Annual Report, which is expected to be released during September 2020. Therefore, a brief overview of the performance of the IEC for 2018/19, will be provided.

Tracking the progress on set targets and strategic goals (outputs) of the entity is important to determine how well it functions in the attainment of constitutional and legislative mandates for the benefit of society. It also improves transparency and accountability, and assists Parliament, members of the public and other stakeholders with information to hold the Electoral Commission executives accountable.

Table1:Performancebythe programmefor 2018/19

Programme	Strategic Outcome-orientedGoal	# targets	# achieved	notachieved	Achieved
Programme 1:Administration	Goal 1: Strengtheninggovernance, institutionalexcellence,professionalismandenablingbusinessprocessesatalllevelsoftheorganization	10	7	3	70%
Programme 2:ElectoralOperations	Goal2:Achievingpre-eminenceintheareaofmanagingelectionsandreferenda,includingthestrengtheningofaco-operativerelationship withpolitical parties.	10	6	4	60%
Programme 3:Outreach	Goal3:Strengtheningelectoraldemocracy	5	5	0	100%
Total		25	18	7	72%

TheElectoralCommissionachieved18ofthe25targetedoutcomessetfor2018/19.Itsoveralltargetachievementwas72%whileitwasnotsuccessful indelivering28%ofitstargets.OnlyProgramme3achieved100%ofitstargets.Onthecontrary,Programme1and2achieved70%and60%respectively.The key cost drivers for the 2020/21 are summarised below:

• The Electoral Commission needs to replace its obsolete zip-zip barcode scanners with approximately 60,000 new devices in preparation for the 2021 LGE.

• Extensive Civic and Democracy Education and communication campaigns

• Maintaining of addresses on the voters’ roll.

• The appointment and training of approximately 350,000 fixed-term and temporary electoral employees.

• ICT network, connectivity and security expenditure.

• The procurement, distribution and warehousing of registration materials.

• The rental & infrastructure associated with opening approximately 23,200 voting stations.

2.2Summary and analysis of IEC 2020/21 budget allocation per programme

TheElectoralCommissionisallocatedR2.02billion forthe2020/21financialyearsharedamongstprogramme1,2and3.Programme4hadnotbeenallocatedanyfundingfortheyearunderreviewasitwillonlybeappropriatedinthenextfinancialyear.Programme2receivesthelargestshareoftheallocationatR1.12billion(55.3%),oftheIECoverallbudget.TheAdministrationProgrammereceivesR683.68million(33.7%)whileProgramme3receivesonlyR221.84million(11%)oftheoverall budget.

Table 5:IEC BudgetAllocation2020/21

PROGRAMME	2020/21 Budget R’000	% of TotalBudget
Programme1:Administration	683 688	33.7%
Programme2: ElectoralOperations	1 120620	55.3%
Programme3: Outreach	221 840	11%
TOTAL	2 026148	100%

The key cost drivers for the 2020/21 are summarised below:

The Electoral Commission needs to replace its obsolete zip-zip barcode scanners with approximately 60,000 new devices in preparation for the 2021 LGE.
Extensive Civic and Democracy Education and communication campaigns
Maintaining of addresses on the voters’ roll.
The appointment and training of approximately 350,000 fixed-term and temporary electoral employees.
ICT network, connectivity and security expenditure.
The procurement, distribution and warehousing of registration materials.

Programme 1:AdministrationBudget

The Administrationprogrammemainpurposeistoachievethestrategicoutcomesofstrengtheninginstitutionaleffectivenessatalllevelsoftheorganization.Thisprogrammeiscomprisedofthreesub-programmes,namely,Management;CorporateServicesandFinancial Management.

BudgetallocationunderthisprogrammeisdirectedatsupportingthestrategicmanagementandcorebusinessoftheIEC.TheAdministrationprogrammeisallocatedR683.69million(33.7%)forthe2020/21.Thecurrentallocationtranslatesintoadecreaseof9.09%(-R65.5million)inrealrandvaluetermsfrom the previousyearallocation of R 720.38 million.

Theprogramme’scostdriversarelargelymadeupofICTcostsandofficeaccommodation.ICTwhichreceivesthelargestshareofthe Programmes’budgetat33%(R247.13 million)ismadeupmainlyofprofessionalservicestomaintainthesecurityandintegrityofthedataheldattheIEC.TheofficeaccommodationconsistsofthecostoftheNationalIECheadoffice,nineprovincialoffices,10warehousesand213localelectronicofficesandisallocated23%(R151.49million)oftheprogramme’sbudget.

TheFacilitiesManagementandLegalServicessub-programmesreceivedasignificantpercentagebudgetreductionof-31%(R18.72million)and-16,96%(R3.82million)inrealrandvalueterms.TheprogrammeswhichareallocatedaslightincreaseisCorporateServices(4%);RiskManagement(3,8%)andAccommodation (3%).Referto table 6below forthebudgetallocatedtosub-programmesforthe Administrationprogramme.

Table6:Programme1Budget

Programme	Budget		NominalIncrease/Decrease2020/21Rand)	RealIncrease/Decrease2020/21(Rand)	NominalPercentchange2020/21	RealPercentchange2020/21
(R’000)	2019/20	2020/21	NominalIncrease/Decrease2020/21Rand)	RealIncrease/Decrease2020/21(Rand)	NominalPercentchange2020/21	RealPercentchange2020/21
Management	23815	24966	1151	98,8	4,83%	0,41
Corporate ServicesManagement	3141	3408	267	123,4	8,50%	3,93%
FinancialManagement	91416	95263	3847	-167,9	4,21%	0,18
Human ResourcesManagement	84899	76289	-8610	-11825,2	-10,14%	-13,93%
LegalServices	22543	19544	-2999	-3822,7	-13,30	-16,96
InternalAudit	19859	20967	1108	224,3	5,58%	1,13%
ICT	272373	247138	-25235	-35650,8	-9,26	-13,09
FacilitiesManagement	59532	42606	-16925	-18720,7	-28,43	-31,45
RiskManagement	1865	2021	156	70,8	8,38%	3,80%
Accommodation	140940	151486	10546	4161,5	7,48%	2,95%
TOTAL	720382	683688	-36694	-65508,4	-5.1%	-9,09

Programme 2:Electoral OperationsBudgetAnalysis

Thepurposeofthisprogrammeistofocusonthestrategicoutcomeofmanaginganddeliveringfreeandfair elections.The expenditureunder thisprogrammeincreasessignificantlyinanelection yearcomparetoanon-electionyear.Duringthe2020/21financialyear,expenditureforonemainregistration drivewillbeincurred with theactualregistrationweekendbeinginthefirstweekofApril2021.Thusexpenditureforthisregistrationweekendwillbelargelyincurredinthe2021/22financialyear.Newvoterregistrationdeviceswillbeprocuredin2020/21whichhasbeenincludedinprogramme2Refertotable7belowforthesub-programmebudgetbreakdownforprogramme2.

TheElectoralOperationsprogrammeisallocatedabudgetofR1.12billion forthe2020/21financialyear.ThebudgethasbeenreducedbyR171.5million(13,8%)inrealrandvaluetermsfromthepreviousfinancialyearallocationofR1.24billion.Allsub-programmesreceiveareducedbudgetexceptforProvincialandLocalOfficeswhichreceived4%increase(R19.55million)inrealrandvalueterms.TheElectoralMattersandElectoralOperationsManagementsub-programmesreducedbudgetsis -41,37%(-R56.4 million)and-38,81%(-80.45 million)inrealrandvalueterms.

TheoutlierinthisprogrammeisthePoliticalPartiesFundingsub-programmereducedallocationof

-94%(-R48.63million).Themuch-reducedallocationcanbeattributedtotheIECintroducingthe4thProgrammeinthe2020/21APPwheremostoftheactivitiesofthissub-programmewillbecarriedoutandbefundedfrom.

Table7:Programme2BudgetAllocation

Sub-Programme	Budgetallocation		NominalIncrease/Decrease2020/21	RealIncrease/Decrease2020/21	NominalPercentchange2020/21	RealPercentchange2020/21
Rmillion	2019/20	2020/21	NominalIncrease/Decrease2020/21	RealIncrease/Decrease2020/21	NominalPercentchange2020/21	RealPercentchange2020/21
ElectoralOperationsManagement	6366	4306	-2060	-2241,5	-32,36%	-35,21%
ElectoralMatters	136189	83363	-52826	-56399,4	-38,79%	-41,37%
LogisticsandInfrastructure	207262	132394	-74868	-80447,8	-36,12%	-38,81
PoliticalParties	51838	3345	-48493	-48634	-93,55%	-93,82%
ProvincialandLocalOffices	485645	527419	41774	19545,6	8,60%	4,02%
ElectoralCapacityBuilding	357604	369793	12189	-3396	3,41%	-0,95%
TOTAL	1244904	1120620	-124284	-171513,2	-10%	-13,78%

Programme 3:OutreachBudgetAnalysis

Constitutingonly10%oftheIECbudget,theOutreachprogrammehasthelowestspendingarea.Budgetallocationunderthisprogrammeisdirectedatinformingandeducatingcivilsocietyondemocracyandelectoralprocesses. ExpenditurepeaksduringtheregistrationandelectionperiodwhentheCivicandDemocracyEducationandcommunicationpeak.Afurtherfactoristheinternational observer missionthatarehostedbycommissionservicesduringthisperiod.

The budgetfortheoutreachprogrammeincreasesinbothnominalandrealvaluetermsfromR195.8millionin2019/20,toR221.84millionin2020/21.ThisistheonlymainprogrammewithintheIECwhich grewinbothnominal(13,3%)andrealrandvalueterms (8,52%)fromtheadjustedallocationof2019/20.StronggrowthinthisprogrammeisdrivenbytheCommunicationsub-programme(27,26%realgrowth)whichisexpectedtoincreasetheIECpublicrelationscampaigninthelead-uptotheLGEin2021.Onthecontrary,theInternationalLiaisonsub-programmehasbeendrasticallyreducedfromR6.milliontoR3.5million(-44%).Thenearconsistency(minus-1%inrealrandvalueterms)intheCivicandDemocracyEducationandResearchsub-programmeisintendedforvotereducation inthebuild-up towards2020 LGE.

Programme 4:Partyfunding

Programme4isanewadditionalbranchtotheIEC2020-25StrategicPlan.Theprogrammeisintendedtofocusonthestrategicoutcomeofcontributingtotheenhancementoftransparencyinelectionsandpartyfunding.For 2020/21,this programme has notbeen allocated anyfundingintheentity’sappropriation.TheIECwasallocatedadditionalfundingofR50millioninthe2019/20financialyearfortheestablishmentof thenewPartyFunding branch.Thesefundswereallocatedtocover costsfor both2019/20and2020/21.

OfthisR50million allocatedtotheIECduring2019/20forthe establishment ofthis programme,itisestimatedthatapproximatelyR38millionwillberolledovertofundtheunitin2020/21.TheexpenditureusedtodatehasbeenforICTsystemsimplementation,staffcostsandresearchanddevelopmentunit.Thebudgetstructurewithsub-unitprogrammesisbeingdraftedandwillbesubmittedtoNationalTreasuryforapprovalduringthe2021MTEFprocessandrelatedindicatorsand targets intheamended APP.

Overviewof the IECAnnual/Strategic plansper programme

AnumberofstrategicprioritieshavebeensetoutbytheIECintheStrategic Planfor2020-2025,aswellasasetofplannedannualtargets,containedintheAPPfor2020/21.Thissectionprovidesan analysisoftheIEC2020/21APPperprogramme.Theannualtargetsforthe2020/2021financialyeararepresented below.

Sub-Programme	Budgetallocation		NominalIncrease/Decreasein2020/21	RealIncrease/Decreasein2020/21	NominalPercentchangein2020/21	RealPercentchangein2020/21
(R’000)	2019/20	2020/21	NominalIncrease/Decreasein2020/21	RealIncrease/Decreasein2020/21	NominalPercentchangein2020/21	RealPercentchangein2020/21
OutreachManagement	5180	5121	-59,0	-274,8	-1,14%	-5,31%
Civic and DemocracyEducationandResearch	108656	112389	3733	-1003,7	3,44%	-0,92
Communication	75895	100830	24935	20685,5	32,85%	27,26%
InternationalLiaison	6070	3500	-2570	-2717,5	-42,34%	-44,77%
TOTAL	195808	221840	26032	16682,4	13,3%	8,52%

Table 9:Comparisonof targetscontainedinthe APP for2019/2020and2020/2021.

Programme	NumberofStrategicOutcomes		NumberofTargets		Budget
R ‘000	2019/2020	2020/2021	2019/2020	2020/2021	2019/2020	2020/2021
Programme1	1	1	10	11	R720,382	R683,688
Programme2	1	1	10	10	R1244,904	R1120620
Programme3	1	1	5	8	R195,808	R221,840
Programme4	0	1	0	3	R000	R000
Total	3	4	25	30	R2161094	R2 026,148

The2020/2021APPcontainsatotalof4strategicobjectivesand30targets,incomparisontothe2019/20120APP,whichcontained3strategicgoalsand25targets.Thenumberofstrategicoutcomesandtargetsincreasesto4and30respectivelyduetotheadditionofthe4thprogramme,the PartyPolitical Funding.Asummary ofeachprogramme will beprovidedbelow.

Programme 1: Administration

While the programme strategic outcome remains the same, the number of targets increases from 10 in 20219/20 to 11 in 2020/21. The Administration programme is allocated R 683.68 million (33.7%) for 2020/21 which is a decline from last year’s allocation of R 720.38 million.

Programme 1 strategic outcome is to promote efficient and effective administrative processes. Below are the number of targets and output indicators:

StrategicObjective 1:Exerciseleadershipandgovernance,monitoringandevaluationtoensuretheeffectiveimplementationofIEC’scoremandate,strategicoutcomesandoutputs,alignedwith thecorrespondingbudget allocationsandriskscompliance

Target & Output Indicators:

4: Number of quarterly performance reports approved by the CEO within 30 days after the start of the next quarter and submitted to the Commission for review and input.
4: Number of quarterly reviews of the strategic register by the Executive Risk Management Committee within 30 days after the start of the next quarter.

StrategicObjective 2:StrengthenassurancemanagementprocedureswithintheElectoralCommission

Target & Output indicator:

4: Number of quarterly internal audit progress reports per annum prepared by the Chief Audit Executive and reviewed by the Audit Committee each year within 60 days after the start of the next year.

Strategicobjective 3:Provideacutting-edge,stable,secureICTenvironmentthatmeetsallfunctionalneeds ofthe Electoral Commissionandsupportsinnovativebusinessprocesses.

Target and Output Indicator:

97% of 2 232 hours’ achievement: Minimum annual percentage network and application systems availability measured in hours’ system-generated report available).
New: Review and approve or review, approve and implement an ICT governance frameworkin each year covered by this plan New.
Platform upgrade completed (Phase 3): upgrades of platforms and systems to be aligned with business needs and technological developments as indicated in the applicable year.

Strategic objective 4:Recruitandretain a talentedpermanentstaffcomplementto meetoperational requirements,as wellasconstitutional obligations.

Target and Output Indicator:

90%: Number of permanent staff positions filled per annum.
100% of qualifying staff: Extent of compliance with a performance management system as evidenced by the existence of performance agreements and performance assessments for the year under review.

Strategic objective 5:Developandupskillinstitutional capacitytoenabletheElectoralCommissionto deliveronits constitutional mandate

Target & Output Indicator:

180: Number of permanent staff who were provided with developmental training interventions per annum.

Strategicobjective 6:Effectively managefinancialresourcesincompliancewithlegislation.

Target & Output Indicator:

0: Number of repeat findings that result in irregular expenditure as defined in the audited annual financial statements.
4: Number of quarterly statistical analysis reports of procurement spend towards B-BBEE per annum.

2.3.2 Programme 2: Electoral Operations

The Electoral Operations programme is allocated a budget of R 1.12 billion for the 2020/21 financial year.

Strategicobjective 1:ManagefreeandfairelectionsinaccordancewiththeapplicableelectoraltimetablestoensuretheefficientandcredibleexecutionofthemandateoftheElectoralCommission