Home Affairs Portfolio Audit Outcomes; DHA & IEC 2022/23 Annual Reports; GPW 2021/22 Annual Report

Meeting report

The Chairperson welcomed the Commitee and the entities which included the Auditor-General of SA (AGSA), the Independent Electoral Commission of South Africa (IEC), the Government Printing Works (GPW) and the Department of Home Affairs (DHA).

The Chairperson afforded the entities the platform to make their presentations.

AGSA Briefing: Home Affairs Portfolio 2022/23

The AGSA took Members through the presentation, beginning by reviewing the 2021/22 recommendations made to the Portfolio Committee. The AGSA reflected on the implementation of the recommendations overall, noting there has been no progress on the prior year recommendations as the audit outcomes for DHA and GPW have remained stagnant. GPW has received a disclaimer of opinion for the past three years. The AGSA commended the IEC for continuously monitoring the design and implementation of action plans which resulted in the entity maintaining clean audit outcome.

The AGSA noted the regression over the administration term, where there was no significant improvement in the overall audit outcome, as only one entity within the portfolio maintained a clean audit. The portfolio indicates an environment failing to implement robust financial management systems that produce credible financial reporting. Compliance with laws and regulations is still a challenge for the portfolio. Key contributors to stagnation in audit outcome: (DHA & GPW):

• Ineffective audit action/ turnaround plans

• Review process and in year monitoring process not effective.

The AGSA presented on the GPW 2021/22 audit outcomes.

It moved on to look at the performance of the home affairs portfolio in meeting targets, looking at the 2023/24 Annual Performance Plans and targets not achieved. The presentation also looked at the BMA.

Members were taken through material irregularities in the portfolio, financial management and compliance, financial health, compliance with key legislation, procurement and payments, irregular expenditure and consequence management.

Recommendations

Key root causes:

• Inadequate monitoring of implementation of action plans, as plans did not effectively address repeat audit findings relating to IT, annual financial statements and compliance with laws and regulations (DHA and GPW)

• Reviews performed were inadequate to detect and correct material errors in the Annual Financial Statements (AFS), and therefore material adjustments were made to the financial statements (DHA)

• No documented policies and procedures to guide the collection of fines and penalties issued in terms of the Immigration Act,2002. (DHA)

• Inadequate business continuity plan and processes combined with a lack of adequate backup processes leading to the data loss of critical financial data (GPW)

Key recommendations

• Executive authority to influence optimal cooperation and support from other agencies/ departments through Cabinet on funding, capacitation and effective operationalisation of the BMA

• DHA management and executive authority to continue with defined monitoring and oversight activities on DHA ABIS project –to ensure that the project milestones are achieved

• Regular monitoring and implementation of the action plans to improve GPW’s ICT environment to ensure that adequate IT systems and related control measures are implemented in a timely manner.

• Capacitate IT division to ensure that critical skills are maintained and current recommendations are implemented (GPW & DHA)

 • ICT directorate is capacitated to support ICT services and that the key ICT initiatives arising from the DHA strategic plans are executed and monitored within the DHA programme and project management processes. (DHA)

Success would be attained when the portfolio is characterised by robust financial management systems, credible financial and performance reporting, compliance with applicable legislation and commitment to ethical conduct by all.

In this regard:

• The IEC is commended for maintaining its clean audit status;

• The department still has to improve internal controls on the preparation of annual performance reports and strengthen the compliance management systems.

• The GPW financial information remains unreliable due to continued impact of the systems crashes.

The AGSA noted positive progress in the ABIS project for the current financial year, however, continued adequate oversight is required to avoid reoccurrence of delays previously experienced.

Most of the performance targets relating to operationalisation of the BMA were not achieved (as per DHA APR). This is likely to cause delays and weaknesses in realising the entity’s overall objective to curb the non-integrated border management at the ports of entry and border lines.

The ICT environments for DHA and GPW were found to have multiple IT security vulnerabilities due to unsupported/legacy systems which increases the risk of compromise in the network environments and may result in unexpected system crashes and cyber-attacks.

See attached for full presentation

Department of Home Affairs Presentation: Annual Performance Report 2022/23

The Department took the Committee through the presentation looking at an overview of its performance over the past ten financial years: 71% of targets achieved in 2022/23. Out of a total of 31 planned targets for the 2022/23 financial year, 22 were achieved. The remaining nine targets, which equate to 29%, were not achieved. This is an improvement of 2% compared with 69% during the preceding financial year. The nine targets not achieved are dispersed within the three programmes. There were two targets in Programme 1, 3 in Programme three and the last four were in Programme 4. Programme 2 achieved all of its planned targets for the financial year. The following targets were not met:

1. DHA Bill tabled in Parliament
2. ABIS phase 2 operational: Iris, infant footprint and palm print backend recognition capability functional (identification, verification and latent search)
3. 85% of permanent residence applications per year adjudicated within eight months for applications collected within the RSA (from date of receipt of application until outcome is in scan at VFS Centre – office of application) (Above applications refer to: critical skills (s27b), general work (s26a) and business (s27c) only))
4. 95% of critical skills visas per year adjudicated within four weeks for applications processed within the RSA (from date of receipt of application until outcome is in scan at VFS Centre – office of application)
5. 90% of business and general work visas per year adjudicated within eight weeks for applications processed within the RSA (from date of receipt of application until outcome is in scan at VFS Centre – office of application)
6. BMA rolled out at 46 ports of entry by incorporating frontline Immigration, Port Health, Agriculture and Environmental functions into the BMA
7. BMA rolled out in phases along three segments of the land border law enforcement area (Border Guard)
8. BMA assumes responsibility for facilities management at 31 identified land ports of entry
9. Financial and contractual closure reached with bidders in respect of land development of six priority land ports of entry

See attached presentation for detailed performance per programme

2022/23 audit outcome

• Unqualified audit opinion with findings.

• This outcome is the same as that of the previous year.

• Improvements in compliance with legislation concerning the annual financial statements, performance and annual report, procurement, and contract management.

• Material irregularity on fines and penalties

• Material misstatement corrected – R300 million misclassification on accruals and payables

• Emphasis of matters:

• R540 753 000 was impaired as a result of the Department’s inability to recover these receivables (from Department of International Relations and Cooperation (DIRCO)

• Subsequent event:

• Port control function transferred to BMA

• Other matters: Only current and prior year figures for irregular and fruitless and wasteful expenditure disclosed in the notes (not the movements

Way forward

• Developed a draft audit action plan based on 2022/23 AGSA findings.

• Draft presented to Back-to-Basics meeting held on 14 September 2023.

• Draft updated by responsible managers by 20 September 2023.

• Final draft submitted to Internal Audit for checking adequacy of the audit action plan on 4 October 2023.

• Intend to present final audit action plan to next EXCO on 23 October 2023

• Developed a draft audit action plan based on 2022/23 AGSA findings.

• Draft presented to Back-to-Basics meeting held on 14 September 2023.

• Draft updated by responsible managers by 20 September 2023.

• Final draft submitted to Internal Audit for checking adequacy of the audit action plan on 4 October 2023.

• Intend to present final audit action plan to next EXCO on 23 October 2023.

See attached for full presentation

Independent Electoral Commission Annual Report 2023

The IEC began by highlighting electoral matters in 2023.

The Committee took special pride in achieved a third successive clean audit. The Committee also achieved 71& of its planned targets for the year.

See attached for detailed performance per programme

Government Printing Works Annual Report 2021/22

The GPW reported that its management appreciates an opportunity to present this Annual Report to the Portfolio Committee, and acknowledges the support received from the Committee in its oversight role.

The Annual Report for the financial year 2021/22 represents the progress made in achieving the performance targets set out in the Annual Performance Plan (APP) for the year under review.

GPW had a total of 18 targets set for the financial year and 13 of these targets were attained, translating into 72% achievement.

The remaining five targets that were not achieved relate to the following: implementation of the reviewed security model; obtaining a clean audit opinion; the attainment of the 10% net profit margin; the submission of the AFS and the In-Year-Monitoring Reports by the stipulated timeframes.

The targets within Branch: Finance were adversely affected by the system failure and data loss. Plans have been put in place to address challenges that contributed to non-achievement of these targets to improve overall performance.

GPW has enhanced its internal capacity with skilled professionals to support GPW in the execution of its plans in areas such as Finance, ICT and Legal Services.  

The Government Component continued striving to align its operations to the strategic goals that contribute to the national government outcomes and objectives outlined in the National Development Plan.

A gradual increase in revenue was experienced post-relaxation of the COVID-19 restrictions, which positively enabled GPW to sustain its operations.

The Ministerial Review Panel (MRP) was appointed to investigate circumstances around the ICT system crash. GPW is in the process of implementing the recommendations from the report and these are continuously monitored.

Challenges experienced

• GPW’s catastrophic hardware crash and systems failure that led to loss of critical data on February 2021 and March 2022, left a lasting impact on the Government Component’s ability to produce credible AFS and ultimately, the timeous tabling of the Annual Report to Parliament.

• The knock-on effect of this loss of financial information, will remain with GPW over the foreseeable future, but management has developed focused mitigating to address challenges relating to risks of systems

• To address above challenges, GPW management has been engaging critical stakeholders such as National Treasury, Office of the Accountant General (OAG) and the AGSA to present specific challenges caused by the system failure, including plans to address them.

Summary of GPW annual performance targets: APP 2021/22

A breakdown of the 18 targets for the 2021-22 GPW annual performance targets per branch is as follows:

• The office of the CEO had three (3) targets planned for the year and all targets were achieved.

• Branch: Operations and Production had five (5) planned targets for the financial year and all targets were achieved.

• Branch: Strategic management had four (4) targets planned for the financial year and only three were achieved; the target that was not achieved is the “Implementation of the reviewed security model for GPW”.

• Branch: Financial Services achieved one of the four targets planned for the financial year. The targets not achieved relate to “obtaining a clean audit opinion for the year 2020/21,’ the attainment of the 10% net profit margin and AFS by 31 May and 3 IYM report 30 days after each quarter

• Branch: Human Resources achieved two of its planned targets.

GPW had a total of 18 targets planned for the 2021/22 financial year. 13 targets were achieved, representing overall achievement of 72%, and five were not achieved

See attached for detailed performance per branch

AFS

• The AFS for 2020/21 were submitted to the AGSA on 31 May 2021, one year after its statutory submission date, due to the data losses experienced by GPW on 4 February 2021

• The audit report was signed off on 20 September 2022. The Annual Report for the same period was prepared by GPW management and tabled by 30 September 2022.

• GPW received a disclaimer audit opinion for the 2020/21 AFS due to the data loss which eroded the general ledger. The balances in the AFS were not supported by the general ledger which resulted in limitation of scope.

• GPW management put all its efforts into recapturing the data lost, covering the period from November 2019 to February 2021. Despite all these efforts, the recaptured data was lost again when the database crashed on 25 March 2022, and the financial data and supporting schedules were wiped out. 

• The data loss adversely impacted the opening balances from 1 April 2020. This negatively affected the compilation of credible financial statements for the 2020/21 financial year, and GPW will experience the knock-on effect in the next financial years. Consultation with relevant stakeholders such as National Treasury, OAG, and AGSA serves to address this challenge and to support the entity in finding solutions that will turn this situation around to the benefit of GPW. 

• GPW management has developed plans to address identified challenges related to the system failures and data losses in the short, medium and long term, to improve operations and gradually reverse the adverse audit opinions.  

Status of resolution of audit findings

•Internal Audit (IA) performs a follow-up assessment on all audit issues identified in completed internal audit reports, as well as AG management report.

•This is accomplished by performing appropriate verification (such as testing/discussion/evaluation) to determine if management actions provided in response to audit recommendations have been properly implemented.

•Once IA is satisfied that the audit findings have been sufficiently addressed and the route cause resolved, the issue is considered closed.

•GPW noted a volume of findings that are in progress of being resolved by management in various branches.

•For the financial year 2021/22 = 94 findings were raised by AG in July 2023 – not tested (follow-up review)

Status of implementation of Ministerial Review Panel (MRP) Recommendations

•The incident of 4 February 2021

•The server supporting key functions at the GPW crashed and resulted in the loss of critical data.

•MRP was appointed to investigate the incident in 2021

•In their investigation, the MRP focused on Information and Communication Technologies (ICT), Human resources, Finance, Operations and Production and Security functional areas.

•Report finalised and presented to the Portfolio Committee on Home Affairs on 5 July 2022.

• GPW Management received the report in September 2022.

• Immediately, GPW management developed action plans to systematically and adequately respond to MRP recommendations

• Historical organisational instability, has had an effect on organisational culture.

• Lack of handover between senior managers leaving the organisation impacted business continuity.

• GPW has an inherent challenge regarding institutional capacity due to structural gaps and vacancies. The approved organisational structure has been implemented since 01 April 2022 to address capacity gaps

• Progress on certain recommendations depends on other departments or entities outside GPW (i.e., Public Service Commission and National Treasury).

• Investigations, although time frames are allocated, depends on complexity of matters being investigated

• Action plans were developed based on the SMART principle.

• Project office is established to facilitate the implementation process.

• Implementation model has been developed to guide the implementation of recommendations.

• Government Technical Advisory Centre (GTAC) has been appointed and commenced with technical assistance.

• Work streams are established and meet bi-weekly. Work streams serve as implementation committees or platforms of MRP recommendations. They also assist in monitoring and evaluation of progress made.

• Investigations and progress made to date :

• Forensic investigating team appointed and GPW awaits the investigative team's consolidated report.
• A response has been received on cases referred to Public Service Commission and they have closed the matter.
• DPSA provided a team of labour relations specialists to support GPW on labour relations cases. The team is supporting GPW with all cases referred to them.

• GPW had a total of 167 Recommendations

• To date, 93 Recommendations have been completed (56%)
• To date, 74 Recommendations are currently in progress (44%)

Consequence management

• Disciplinary action taken against officials working in in the ICT business unit

• A total of nine officials, including eight Deputy Directors and a Director, were issued letters of intended disciplinary action.

• Based on their representations, six were reprimanded, one got a written warning and one official was put on precautionary suspension.

• A team of forensic investigators was appointed to investigate further system failures and data losses

• An investigation has been completed and the report submitted for implementation.

• Disciplinary action taken against acts of misconduct within GPW and sanctions implemented accordingly

Conclusion

GPW will continue to:

•  put all efforts in ensuring stabilisation and sustenance of its ICT operations to mitigate the risk of further system failures and data losses
• focus of current and emerging risks and implement the risk appetite and tolerance frameworks
• resolve all audit findings, strengthen internal controls to attain good governance and strive to attain a clean audit outcome
• optimally utilise expertise from external service providers which it has contracted across all functional areas, for the betterment of all its operations
• implement financial standards to improve the quality of its financial statements

GPW management commits to ensuring compliance with statutory dates for submission of reports and plans to Parliament, based on the guidance and support from all relevant stakeholders.

GPW enlists support from oversight structures such as the Ministry of Home Affairs and the Director-General, AGSA, National Treasury and Portfolio Committee on Home Affairs, in its transformation initiatives to achieve overall success

See attached for full presentation

Discussion

Mr A Roos (DA) stated that the AG and audit commitee have been facing challenges in monitoring and implementing action plans for the DHA and GPW which has been a source of concern since the DG report in 2019. The audit commitee was criticised for inadequate monitoring of action plans, compliance with laws and regulations, a lack of ICT controls, and the lack of documented policies for fines or penalties’ collection. The lack of capability in the Department has led to issues such as hiring legal professionals and hiring lawyers to sort out contingent liabilities.

In 2021, Home Affairs prepared a dynamic draft audit action plan which was submitted to the internal audit committee for validation. However, progress against the plan has not been monitored, leading to consequence management. The AG has been asked to strengthen the audit plans and hold officials accountable for preparing action plans. IT weaknesses have been raised since 2018/2019 with issues such as weak IT security and an outdated infrastructure. The AG was asked to review the latest work action plan and ensure it effectively addressed the repeated audit findings.

Ms L van der Merwe (IFP) said the Portfolio Commitee acknowledged the AG's good work and the IEC's clean audits. However, she was concerned about the ongoing disaster at the GPW, which has been a disclaimer for three years in a row. The Commitee was concerned about compliance, consequence management, and ICT issues.

The BMA, which the AG was raising, was also of concern. The Commitee would discuss these issues with the Department and its entities. She also wanted to know if there were a total number of fines that had not been collected and if employees were doing business with the state.

Ms Lufuno Mmbadi, Senior Manager, AGSA, discussed the non-collection of fines and penalties which have been a concern for the Department. The current financial year's balance was R273 million, with R269 million of these fines and penalties impaired. Ms Mmbadi also raised material irregularities related to potential financial laws in relation to the collection of these files. This issue has been ongoing for years, and the Department has been issuing non-compliance reports. In the current financial year, the Department has raised concerns about potential financial losses due to this non-compliance.

Ms Mmbadi also addressed questions about employees doing business with the state, specifically non-SMS members. She responded that Home Affairs is dealing with lower levels of employees. Ms Mmbadi also mentioned that there have been improvements in Home Affairs over the last financial year with three line items of material misstatement corrected in the current year. One such item was an allocation given to Home Affairs on 31 March, but no actual cash was transferred to the Home Office. This transaction required the Department to apply technical skills to account for it, which was not done before in the Department's history. Lastly, Ms Mmbadi also mentioned that the fines and penalties collected are still being dealt with and the Speaker has raised material irregularities related to this issue.

Mr Bongumusa Thabethe, Senior Manager, AGSA, responded that the GPW has been facing questions about the ITC action plan and its effectiveness in addressing issues. The MRP plan has been implemented, but some actions have taken longer than expected due to procurement issues and requests for exemptions from National Treasury. He found it concerning due to the recurring IT boots away from institutions. The GPW has had to go through the process of procuring new systems to enhance its environment.

The plan was slow and was not getting into action as quickly as possible, but it was informed by the capacity of the organisation. The issue of data loss has led to resignation at the level of the Chief Information Officer (CIO) and the appointment of a new CIO. The capacity at GPW was still weak and there was a need for more improvement in this area, said Mr Thabethe.

The GPW has called upon the Department of Home Affairs to assist them with capacity to improve. Without improvement, they may not be able to continue managing the issue of data loss. Data loss affected the organisation significantly as it removed historic information and reconstructed it over time. To move out of this situation, the GPW needed to monitor and rectify the matters raised.

There have been slower responses in some calls made by management in responding to system weaknesses. GPW was transacting with all government institutions, and they were not paying them. Mr Thabethe suggested that to address these issues, the GPW should use intergovernmental relationships to collect and validate data about who they owe and how much they are owed.

The DHA Director-General responded to questions on the DHA and its challenges, including staffing, budget allocation, and corruption. The DG highlighted the lack of female employees in the top eight management and senior management positions, as well as the lack of people with disabilities and female employees. The DG also mentioned that the Department only operates with about 42% capacity, making it difficult to reach its targets.

Ms van der Merwe recalled the DG's discussion and said that BMA’s focus was on dealing with illegal migration, but the AG raised concerns about the budget allocation and its ability to execute its mandate due to insufficient resources and budget.

The DG responded to the need for proper physical infrastructure and incrementally increasing the DHA's modernisation programme. The DG also mentioned the need to prosecute citizens who facilitate photo swaps and marriages of convenience which has not happened in the past.

The DG also discussed the Lubisi report which is an ongoing process, but the timeframe for finalising implementation is unclear. While the Department is meeting its inspection targets, it is not making a dent in the number of illegal migrants within South Africa's borders.

Ms van der Merwe said the focus should be on internal enforcement, as the Department has already had millions of undocumented persons within the borders.

If all the remedial actions proposed by the AGSA were implemented, there would be no problem with the GPW coming back next year with a clean audit. However, the biggest concern was the success of these implementation plans.

Ms T Legwase (ANC) suggested a session with the GPW audit commitee and National Treasury to address issues affecting the GPW and seek interventions.

She wanted to know what the Department's efforts were to address network interruptions which were causing long queues and hindering community satisfaction.

She also addressed the issue of late registration of births, a problem in Mafikeng where communities were referred to hospitals for DNA tests but the nearest hospital was over 200 kilometres away making it difficult for people to travel to the nearest one. Ms Legwase suggested that the Department negotiate with the hospitals to access services.

Mr Roos said the DHA in South Africa has been working on processing passports, IDs, and smart IDs quickly, but there is a need to improve resource management and technology. The current system is processing 385 million IDs, passports, and birth registrations within 30 days with 7 313 staff processing the same number of documents. This results in 850 000 fewer documents, causing lost revenue and opportunities for applicants.

The public sector wage bill, particularly in Home Affairs, needs to be brought under control to ensure productivity and reduce costs. Government's financial situation has been affected by the inability to recover receivables, which has led to a R514 million impairment and contingent liabilities of over R2 billion.

Mr Roos also raised the issue of green IDs - he said the issue of naturalised and South African-born citizens has been raised several times with some individuals being denied access to Smart ID cards after completing the verification process on their records. The AG has pointed out IT weaknesses since 2018/19 which have allowed corruption in permitting due to outdated systems and security lapses, said Mr Roos.

Internal enforcement inspections have also been a concern, with over 750 illegal miners being allowed to walk free on claims after an operation was conducted to arrest them. Mr Roos said the Department needs to address these issues and implement better procedures to ensure the smooth processing of applications.

In conclusion, DHA needs to address the challenges faced, such as resource management, staff productivity, and IT weaknesses. Mr Roos suggested that by addressing these issues and implementing better processes, the Department can work towards improving its overall efficiency and effectiveness.

Adv B Bongo (ANC) applauded the Department's implementation stage of the BMA however Adv Bongo expressed dissatisfaction with the immigration site and backlog. Adv Bongo suggested a force multiplier to address the issue, particularly in the permitting department. The AG's clean audit performance decreased from 77% to 71%, and they need to address the implications of this.

The GMW agreed that remedial action should be taken to prevent issues from being raised repeatedly. Adv Bongo raised concerns about a two-year data loss with no backup, and the AG's inability to verify financial data history. Adv Bongo also requested answers to the AG's concerns about ICT and recommendations.

Mr K Pillay (ANC) said the IEC has developed a commendable pattern of clean governance. DHA performance has also shown strides, but concerns are raised with the GPW, said Mr Pillay. Mr Pillay suggested that the Commitee consider the ministerial review report and the AG report to correct and strengthen the accounting practices. He also suggested that the Commitee should address data loss and sabotage in GPW's systems. Key to the AG’s report was the Committee’s concern about irregular expenditure and bad debts. The CEO should implement measures to accommodate consequence management and prevent data loss.

In the DHA, staff capacity is currently low with critical vacancies around immigration. The Department needs to address non-achievements in immigration and provide a roadmap for action. The Commitee should consider work studies and rotations to accommodate clients on weekends. The 10 000 unemployed graduate’s digitisation project is also under review and the status of the programme is unknown. Overall, Mr Pillay commended the work being done and appreciated the progress made in the entities under their oversight.

Mr Masego Sheburi, Deputy CEO, IEC, responded that the Electoral Commission had faced several challenges in the 2021 elections, including ICT regression, Voter Management Device (VMD) issues and online registration. The VMD was delayed due to disrupted global supply chains, and the Commission is planning a countrywide drive to test all systems, including the VMD, in October. The ink issue is one of many safeguards in an election, and Section 24A, which allows people to apply and vote anywhere in the country, has been amended by Parliament.

Mr Sheburi further discussed the requirement for a passport over an ID, an IT document that tests the currency of citizenship and the court's judgment on the status of citizenship of South Africans will be taken by Home Affairs. The basis of registering voters is to compare the ID numbers of applicants against the population register, and if Home Affairs confirms citizenship, the person will be included on the voters roll.

The Commission has also faced energy challenges with over 300 offices in the country and a target of maintaining 97% uptime. Loadshedding in rural settings affects accessibility and the uninterruptible power supply (UPS) is going down leading to a 5.18% missed target. The Commission is looking at newer technologies to ensure the resilience of backup issues and is considering court enforcement to enforce specific performance, said Mr Sheburi.

In conclusion, the Electoral Commission has made efforts to address these challenges and ensure the smooth functioning of the elections.

Ms Alinah Fosi, CEO, GPW, said that the GPW has implemented plans to address challenges in various environments including financial and internal controls. These plans were presented at EXCO meetings, where expert members were held accountable for progress made against them. The GPW engages with oversight structures to provide guidance in areas where progress was not gained.

Irregular expenditure has been addressed through a law firm appointed to investigate management reports and identify areas for further investigation. The current team was said to also be investigating irregular ways and fruitless expenditure.

The GPW has made commitments to submit documents in a timely fashion, including the AFS. However, due to the crash in February 2021, data was lost, affecting the compilation of the report. The audit was delayed due to the data being lost from November 2019 to February 2021. The GPW has since submitted the financial statements on time for 2022/23, but the audit report was submitted to the GPW on 28 July 2023.

Site 7 has been targeted for security upgrades including facial skin access control, cameras, and ISO compliance. The GPW has visited the South African Reserve Bank and the South African Bank Note to benchmark their security against those of other entities. They have also considered a service provider for security to help the GPW comply with all upgrades.

Consequence management has been meeting with management on areas of misconduct found in ongoing reports. They were committed to addressing these issues as soon as investigations were completed, said Ms Fosi.

In conclusion, the GPW has implemented effective plans to address challenges in various environments including financial and internal controls. They have also sought support from entities like National Treasury to ensure joint collaboration and successful completion of their projects.

Mr Kuben Moodley, Manufacturing and Engineering, GPW, responded to the issue of safety and security of manufacturing products and said that the GPW has not experienced any infrastructure issues related to financial systems or corporate systems, including passports, IDs, and production manufacturing systems. These systems are segregated and protected with security servers and infrastructures were not affected. Manufacturing systems are designed to service only equipment and are centralised and linked to DHA. There are assurances and coordination for the manufacturing portion, and no concerns have been raised regarding the safety and security of manufacturing products.

Mr Zwelibanzi Gwiba, CIO, GPW, discussed the backup process and the need for collaboration with the State Information Technology Agency (SITA). The MRP report indicated a business agreement was needed to ensure a sound backup process. SITA has been working closely with the managing director to explore procurement options and cloud options. Assessment reports show SITA's efforts in understanding the impact of incidents and ensuring plans are avoiding recurrence. SITA is implementing an MPLS network for the GPW, and the team hopes to monitor this network to improve the environment and controls.

Mr Gwiba also discussed the importance of Microsoft patches and the need for an enterprise architecture project to comply with government processes. These initiatives will be undertaken in conjunction with SITA and industry consultation to ensure best practices are implemented.

Mr Sihle Ngubane, Chief Director: Operations, GPW, said that the GPW's key strategy is expanding in the static region through national commissions, and engaging four countries through binational commissions: Namibia, Kenya, Ethiopia, and the DRC. GPW has agreements with Namibia and Kenya, and a Service Level Agreement (SLA) with Eswatini. Research and development are also important, with the GPW conducting market analysis to understand demand and risks. Progress has been made in delivering 300 000 certificates to Namibia and graduation certificates to the University of Eswatini. The GPW expects to engage with Lesotho and Eswatini, and plans to open warehouses in Kwa-Zulu Natal, the Free State, and Mpumalanga as part of its expansion strategy. Mr Ngubane said this will help expand into new markets and improve revenue.

Mr Tommy Makhode, Director-General, DHA, responded to the Commitee and said the Annual Report presented details about expanding the Justice, Crime Prevention and Security (JCPS) footprint including the opening of offices in Polokwane and expansion at malls beyond the mainland. Work is currently underway in Cresta Mall and Southgate in Kwa-Zulu Natal with plans to expand the fleet. The Minister mentioned expanding Home Affairs on wheels, with 127 mobile trucks currently in production.

The Commitee discussed issues raised about the composition of females and males, with females being more in lower-level directors. The JCPS has developed a strategy to deal with issues related to illegal immigrants which is being implemented through a government approach that included all stakeholders.

Mr Modiri Matthews, Acting Deputy Director-General: Immigration Service, DHA, said that the process evaluation for photo swaps has identified root causes and closed loopholes stopping third-party collections and dismissing officials involved. Two officials were sentenced to ten years for criminal involvement. No recurrence has been observed since then. The last photo swap cases occurred in 2021. The issue of marriages of convenience has been successful, but awareness sessions are being conducted to educate communities about the wrongfulness of such marriages.

The operation in the Northern Cape has transferred 145 people for deportation to Lindela, with 145 confirmed as being illegal foreigners. The foreign office coordination unit and waiver unit still exist providing functions related to visa adjudication. The backlog clearance exercise project aims to target spousal and relatives’ visas, which take out 64 000 visa applications. With enhanced capacity, a team will focus on the Annual Performance Plan target. A transaction advisor has been appointed to examine the triple P process for service providers for visa adjudication. The plan will provide updates on how backlogs are being addressed and the selection of a service provider at the end of the current contract.

The Council for Scientific and Industrial Research (CSIR) has contracted a project to complete a defined period of work with the goal of achieving the desired outcome. The commitee has scheduled a meeting to discuss the Facilities and Bed Restoration facility. The CSIR has categorised vet facilities into five priorities: those capable of giving over 5 000 births per year, those with less than that, two priority three, and priority four. The facility has the capacity to register 91% of births. The CSIR believes investing in technology and infrastructure connectivity will not provide value for money. They plan to service those using mobile solutions. The project has completed screening of the second cohort of 4 000 young people, and over 5 million images have been scanned for digitalisation. The project is progressing well despite unavailable international hubs.

The Department is working to increase the representation of female Senior Management Service (SMS) members at various levels with only one female member at the executive level and fewer at the Chief Director level. The director levels are higher than the male and SMS members. The goal is to move the 2% lagging behind from 48 closer to 50% by the end of this year.

The Chairperson thanked the three entities and everyone who participated.

The meeting was adjourned.