Suspension of Director-General and Ambassador Faisel Moosa: briefing by Minister; DIRCO and African Renaissance Fund – reports on Quarters 3 & 4 of 2020/21

Meeting report

The Chairperson welcomed everyone and the Minister. He thanked Committee Members who ensured directives given to them by Parliament were executed and said he looked forward to working with all Members of the Committee. He hoped all Members would work together and learn from each other. Committee Members must at all times show respect to one another and also to the Department. When dealing with matters that may come across as complex or difficult issues, the Committee must make sure they are level headed. As an oversight body, the Committee will put the interest of the people first when dealing with the Department. It will also ensure the mandate given to the Committee by National Assembly finds its expression within the work of the Committee. Both legislative and executive arms of the state must at all times cooperate based on the constitution of the country. As the legislative arm, the Committee must at all ensure, whatever they do is informed by policies, laws and regulations set out in the Constitution. The international relations environment is very fluid.

The Chairperson said he is not a master of multiplicity and hopes he can learn from fellow Committee Members. He said Members must not be overly directed by their inherent political ideologies. As a new Chairperson he was still learning the complexities of the international relations environment. There are many of issues which the Committee has been dealing with since the start of the sixth administration. He urged Members to be patient with him as he would not be able to deal with these issues first hand and it will take him some time to get through these issues.

The Chairperson said if proposals are not clearly discussed in Committee meetings and a Member has further proposals, he gladly invites Members to make those proposals to him. These proposals would not end between the Chairperson and the Member, but will find expression on the Committee’s agenda.

Mr D Bergman (DA) welcomed the Chairperson on behalf of Democratic Alliance and said he is happy with what the Chairperson said; this is an indication of positive change. He has sat on this Committee since 2015 and there has been good cooperation between all parties. All Committee Members have agreed on issues [under consideration] regarding the Department of International Relations and Cooperation (DIRCO). These were long running matters since [the time of] Minister Nkoana-Mashabane. All members agreed that it was time these matter be addressed and solved.

Mr M Chetty (DA) hoped there will be fruitful engagements with the Chairperson in the interest of all South Africans. This was the third consecutive meeting where the Acting Director-General (DG) was not present. He said this matter must be taken seriously as the Committee on many accounts raised the issue of absence by the acting DG. After the meeting the previous week, the Acting DG took to Facebook disrespecting the Committee. This is an issue the Chairperson needs to look into. The Chairperson lost a golden opportunity to engage with Committee Members prior to having this meeting. This could have given the Chairperson some background in what the Committee has been dealing with. All Members decided that this meeting should be held in person but unfortunately it was changed to a virtual meeting. Had the Chairperson had an engagement with Members he would understand the need for a physical meeting. He said the Chairperson was now “the captain of this ship” and when one Member was undermined, the whole Committee was being undermined. The Committee yet again had to learn from the media about the outcomes of the investigation into the DG. Surely the Minister should have briefed the Chairperson? This had happened continuously. The Committee had to learn from the media on the suspension of the DG. He hoped that under the Chairperson the Committee will continue to be vigorous in dealing with DIRCO.

Mr T Mpanza (ANC) welcomed the Chairperson on behalf of the African National Congress and looked forward to working with the new Chairperson. The Committee has always capitalised on the collective wisdom of Members and Committee members will take their lead from the Chairperson.

Mr X Nqola (ANC) said members are raising a number of issues and when time permits they will be properly dealt with. The Committee has always practiced a non-partisan approach and it was positive that the Chairperson will continue this practice. Members have found a way to work together regardless of the fact that all members come from different political parties with different objectives.

The Chairperson welcomed Members’ views. He said if the situation had allowed, a meeting prior to this one would have been held. He had only had a chance to speak to the previous Chairperson that day and had already met with Committee staff. The Facebook matter has been raised with the Minister and she will give the Committee feedback on this matter after she has verified the facts. He said it is unfortunate that a physical meeting could not take place but for the convenience of all members and the Department, the Chairperson requested to have a virtual meeting. There was no intent to undermine decisions taken by Members and as soon as the situation allows there will be a physical meeting. The Chairperson said he does not know much about the New York Project but he is in the process of learning about the matter and as soon as he has applied his mind, the Committee will deal with the New York matter. All matters will be dealt with.

Update on consequence management, especially cases regarding the DG and Ambassador Faisel Moosa: Minister Naledi Pandor

Dr Naledi Pandor, Minister of International Relations and Cooperation, congratulated the Chairperson on his appointment as Chairperson. DIRCO looked forward to working with the Chairperson and will build an engaged and dynamic relationship with not only the Chairperson but with all members as the Committee continues to exercise its oversight role. DIRCO’s work has been severely affected by COVID-19 not only DIRCO’s programmes but staff has also been affected. DIRCO has been working hard at continuing its international role and has used digital means to stay in touch with colleagues all over the world. It has been difficult to conduct bilaterals. President Ramaphosa and President Biden had played an important role by ensuring an African response to the ongoing pandemic.

She said there is much that still needs to be done regarding consequence management; DIRCO will elaborate when engaging the Committee on issues of consequence management. She would only be able to give the Committee a brief description on what has happened so far and asked the Chairperson to allow DIRCO to submit a detailed report on consequence management after disciplinary processes have been concluded against the DG and Ambassador Faisel Moosa and it became legally permissible for DIRCO to share some of the information. DIRCO is constrained at moment as these processes are still underway.

The disciplinary hearing against Mr Kgabo Mahoai, [the suspended] Director-General, had commenced on the 17 March 2021. It had been concluded, after several delays and a request for postponement, on 24 July 2021. Both DIRCO and Mr Mohoai submitted their heads of argument to the presiding officer who is a judge. DIRCO is awaiting the final report from the presiding officer. The Minister said she was aware that there has been a leak to the media of this judgement. As Minister she is not in possession of the judgement. DIRCO anticipates the case will be finalised by the end of September 2021.

As part of the communication from the former Chairperson, there was an instruction to update the Committee on consequence management regarding Ambassador Faisel Moosa and that his suspension should be immediately lifted. As Minister, she did not have the power to lift the suspension. The Ambassador’s disciplinary hearing commenced on 8 June 2021 and both DIRCO and the Ambassador are still presenting heads of argument, hearings will continue on 1 and 2 September 2021. The correct procedure was followed in suspending Ambassador Moosa. He is currently challenging his precautionary suspension at the General Public Service Sector Bargaining Council (GPSSBC). DIRCO can’t discuss the matter further until it has been concluded.

The disciplinary hearing of DIRCO’s Chief Financial Officer, Mr Caiphus Ramashau started on 20 April 2021 and it was concluded, after multiple requests for postponement, on 23 July 2021 in terms of presenting evidence. DIRCO was to present its heads of argument to the disciplinary committee before the end of August 2021. She had not been informed if DIRCO presented its head of arguments yet. In terms of the Public Service Act there are particular procedures to follow and the Minister is not directly involved in this process. It is anticipated that the case of the CFO will be finalised by the end of September 2021.

DIRCO has done all that it should to ensure disciplinary cases that included suspensions are handled in terms of the Public Service Bargaining Council resolution of 2003, which sets out the disciplinary code for public servants and procedures that must be followed. Alongside this, the senior management handbook and its content on discipline was also utilised. All procedures are in terms of the Public Service Act.

The Minister said once all these processes are concluded, she will come back to the Committee and give full responses. The previous Chairperson had asked the Minister to respond on eight issues but these issues are directly related to the cases mentioned and that is why she can’t give information on these issues as they are still undergoing the relevant processes. The Minister sought advice from the Speaker of the National Assembly, on whether to provide information on disciplinary cases that are still in the process of being concluded and pursued and she is still awaiting a response from the Speaker.

Discussion

Mr Chetty said the Committee was well aware of the situation of the DG. The Committee had been informed that the suspension of the DG was not related to the New York Pilot Project by the Minister herself. This was the first discussion the Committee had with her around this matter. Was the Minister in a position to inform the Committee what the charges against the DG entail? The Minister said she is still awaiting a final report on the matter. Yet, the Mail and Guardian has published an exclusive article on this matter. He asked the Minister for clarity on this matter but would accept and respect it “if the Minister pleads the fifth”. The Committee has a role to ensure they exercise their oversight diligently. The Public Service Act only allows for a maximum of 60 days’ suspension of an official, yet the timeframes provided by the Minister far exceeds those 60 days. These officials are still getting paid and this will contribute to fruitless and wasteful expenditure.

Mr Bergman said the Committee is talking about an issue which has already been discussed in the media. Often officials and the executive hide behind the word subjudice. He did not want to imply the Minister is hiding behind this term and he meant no disrespect, but the Committee knows these matters are in the media. The Committee had to find out about the suspension through the media. DIRCO’s own spokesperson said it had to do with New York but the Minister denied this. The spokesperson then back tracked. The Committee was surprised because the DG had nothing to do with New York.

The Committee would never be able to do oversight on this issue because DIRCO was not being honest on this matter. Tax payers’ money was wasted when the Committee went to New York and saw the DIRCO was paying millions of rand for renting a parking lot. Subjudice only applies on matters that are currently discussed in court. Some of these matters are already done, so subjudice does not apply. It is not too late to call on the President to suspend the previous Minister who held this post. The CFO is already on his second suspension. He said there are three ministers, yet things are not working at DIRCO. He appealed to the Chairperson not to allow the subjudice rule to prevent Committee members from discussing thus issue and fulfilling their task of oversight.

Rev K Meshoe (ACDP) said the Committee was told DG was not suspended because of New York Pilot Project. It came as a surprise to the Committee when it heard through the media, it had to do with the New York Pilot Project. This brings into question people’s integrity. He asked is the Committee being told the truth or being lied to. If there are people who are deliberately lying, then the Committee needs to be informed about this. The Committee can’t do its work if DIRCO is [not] being honest. He asked if there was an investigation being done on the person who leaked the information to the media. It was not fair when direct questions are being asked to the Minister and the Committee only receives direct answers from the media. The subjudice rule cannot be used not to answer a simple question. The question was: is the DG being suspended for corruption. The Minister does not need to give details; she just need to answer why the DG was suspended. The Minister wants to work on a trusting relationship with the Committee but accountability can’t be left aside.

Mr D Moela (ANC) said he understands these matters are subjudice, but the Committee still needs clarifying facts. Some of these issues are already out in the media. He appreciates the brief report the Minister gave and understands the Minister will report back to the Committee and discuss all these matters and accepts the report by the Minister. He asked the Minister to look into the matter on the Acting DG disrespecting the Committee on Facebook. The issue of leaking information from DIRCO is a serious matter and needs to be addressed urgently, if this matter is not dealt with soon, DIRCO will continue to look inadequate, there cannot be a situation where officials are undermining the executive authority.

Mr W Faber (DA) said the previous Minister was getting a free pass on this issue. There was gross mismanagement under her leadership. He asked if it is possible to summon the previous Minister and interrogate her on these issues which she presided over. The Committee decided there must be accountability on this matter and that must include the previous Minister. She must account for failures which happened under her watch. The Chairperson needs to stand firm on this issue.

Mr Nqola said the governing rules of the Portfolio Committee and those of National Assembly, rule 89 speaks on subjudice matter. It says no Member may reflect on merits of any matter that is still undergoing a judicial outcome in a court of law. The rule clearly says any matter and matters that have not reached a conclusion in a court of law. He did not want to be redundant and discuss the same matter while other matters are being left alone. Committee members are however correct to ask DIRCO to account. The Committee wanted to know: were these officials suspended because of the New York Pilot Project? That question does not qualify to be the merits of these suspension cases. The Committee notes the merits and just wants to know why these people were suspended. The Minister said these maters will be finalised by the end of the month. He asked the chairperson to note this and ask the Minister to come back and give a detailed report of these matters.

Mr Mpanza agreed with what most Members raised and said the Minister must come back and give full details. He said it was important to put in on record that the letter that was written by the former chairperson of the Portfolio Committee comprised questions that were dealing with process issues and not procedure issues. Oversight questions were also included. He asked the Minister to include the letter she wrote to the National Assembly Speaker in the report she will give to the Committee at the end of the month. He said the issue of senior officials not taking the Committee seriously was a problem. He asked the Minister to deal with this matter and also include it in her report.

Minister Pandor’s Response

The Minister said no one used the term subjudice. That was used by Mr Bergman and not by her. She said she did not want to go into a mode of defence or pointing fingers. There were concerns of the Portfolio Committee learning in the media about the suspension of the DG. A meeting was held at which Committee members asked whether the basis of suspension was the report of the Portfolio Committee following its oversight visit in New York. She indicated in the meeting, that she could not go into the substance since it was immediately after the suspension of the DG. She was not able to speak on the matter of the source or basis. She said it was always her intention for the matter to proceed without hindrance or allegations that some form or guilt was pronounced before all legal processes were concluded.

The Minister said Members are correct that 60 days had long passed [since the initial suspensions]. But Members would have also heard there had been requests for postponement and those requests were agreed to. She could have further informed the Committee of COVID-19 infections, but she cannot at this point. The number of days were exceeded, however the core concern must be whether, in suspension or any other process, the right of the public servant and rules and regulations which governs public servant’s suspension had been respected. She tried to ensure that. She understands members’ concerns around the delays since the matter has been going on for a long time. She has been dealing with it since she became Minister of the portfolio. Mr Bergman asserted that the DG had nothing to do with New York. She could not go into the ins and out of this and appealed to Committee Members to accept that all the processes have been properly followed. When these procedures and processes are concluded, she will come back to the Committee and give an in-depth report.

The Minister was saddened that Reverend Meshoe almost implied that she was lying to the Portfolio Committee. She would never do such a thing and was it painful for that to come from a person she holds in high regard. She has tried to communicate properly and she didn’t leak the document. The executive is not part of the disciplinary process and she tries her level best in all her roles to be accountable. She finds the words used by Reverend Meshoe troubling and hopes, when she comes back after the processes have concluded, that members will accept she was not in any way attempting to bypass the Portfolio Committee. She agreed with members that information should not be learned through the media and at minimum the Chairperson at least is briefed on critical matters. She said she will improve on this. She will look at the Facebook matter and DIRCO will look into the matter of leaking. She notes the issue raised by Mr Faber, but when a Minister takes up a new role, she takes on all the responsibilities of the Department and this was what she has attempted to do. The Acting DG is currently on leave. It was overdue leave she had to take according to the Public Service Act and someone was standing in for her in the meeting.

The Chairperson thanked the Minister and said going forward the Minister will continuously report back to the Committee relating the New York Project and Qatar in such a way that it does not hamper the processes and the cases itself. As soon these matters are concluded the Committee expects a detailed report on these matters. The Minister must also report back to the Committee within 14 days on the matter of the Acting DG disrespecting the Committee on Facebook. The letter written by the previous Chairperson of the Portfolio Committee must be discussed in a detailed report and this report must include the letter written to the Speaker of National Assembly. The Chairperson also resolved that senior’s officials must be present in meetings held by the Portfolio Committee. Lastly when matters arise in between meetings, even when it is in the media, the Minister must engage the Chairperson on it.

Presentation: Third & Fourth Quarterly Report 2020/21

Ambassador Ndumiso Ntshinga led the presentation on behalf of DIRCO. [See the slide presentation for full details]. He said the reporting period was characterised by the effects of the COVID-19 pandemic, both domestically and globally. Most countries introduced travel restrictions and resorted to digital means to conduct their business.

Programme 1: Administration

1.Digital Strategy Adopted with the following strategic objectives, no target was set for this objective and its implementation started during the third quarter.

• Modernisation in respect of data, storage, applications, network, telephony and cybersecurity ICT infrastructure
• Automation of business processes and the integration of business information systems.

2.Gap analysis and development of implementation plan on building institutional capacity to deliver the African Union (AU) / United Nations (UN) languages.

• This target was not achieved in Q3. The gap analysis, which was a Q1 target, was deferred to Q2 and subsequently delayed the implementation, which was then completed in Q4.

Programme 2: International Relations

Regional report on outcomes of Structured Bilateral Mechanisms & High-Level Visits

The high-level and political engagements with countries focused on

• Strengthening bilateral cooperation in the fields of agriculture, culture, defence, gender and health (particularly dealing with the COVID-19 pandemic), regional and global politics, trade issues and areas of potential cooperation.
• The handing over of the Chairship of the AU, hosting of the Bi-National Commission and the Grand Inga Hydro Project.
• Cooperation on infrastructure development South Africa (Mzimvubu River Water Project, Small Harbour Project).

South African Investment Conference (SAIC)

DIRCO’s role in investment mobilisation included identifying potential investors for the 3rd SAIC - 23 South Africa Missions and 14 foreign Missions accredited to South Africa provided 755 names of investors that were invited.

A total investment commitment for 2020 is R109.6 billion, which brings the total investment drive commitment to R773.6 billion, meaning that 64.4% of the target has been achieved. The foreign investment component is almost 49.4% of the total. The bulk of the projects originate from the private sector.

Regional trade strategy aligned with the National Export Strategy (NES)

Mission engagements resulted in a beef purchase agreement worth $90 million that was signed between Karan Beef and Greenland Global Commodity Trading Hub through the SA-China Cross Border E-commerce Association.

The award of a USD 26 million services contract to a South African member-company group, indicating the growing success of the export of defence and defence-related products and services

Missions also reported on Transnet’s negotiations with its Ghanaian counterparts and prospective partners on the development of the Western Line and on venturing into the standard gauge, as well as the Airlink Johannesburg - Lubumbashi service which was launched with a future commitment to increase the service from three days to seven days a week.

Regional tourism

Tourism promotion initiatives focused on

• Discussions with stakeholders in order to develop a visa application awareness campaign and improve the efficiency and turnaround times for issuing visas
• The São Tomé and Principe Minister of Culture and Tourism requested assistance from South Africa on English Language training for the School of Tourism.
• Supported South African Tourism to engage different stakeholders, including tour operators, Rwanda Air, Ethiopian Airlines, Kenya Airways, Etihad and Emirates, hotels and leisure/hospitality entities. However, the COVID-19 pandemic prevented other related activities from taking place.

SA’s contribution towards: Peace; stability; socio-economic development; good governance; democracy; and the implementation of the Regional Indicative Strategic Development Plan (RISDP)

• Supported the finalisation of a comprehensive regional response in support of the Republic of Mozambique
• Proposed the involvement of the South African Development Community (SADC) in the exit strategy for the United Nations Stabilisation Mission in the Democratic Republic of Congo (known as MONUSCO).

Programme 3: International Cooperation

Develop a long- term strategy for South Africa’s membership /candidatures and identify which memberships to pursue.

• Could not be achieved. Due to a combination of factors, including concurrent United Nations Security Council (UNSC) membership and Chairship of the AU, coupled with the impact of COVID-19 lockdowns, the process could not be completed.

Programme 4: Public Diplomacy and State Protocol and Consular Services.

All targets set out in the fourth and third quarter under these programmes were met.

Observations on Departmental Financial Report.

Actual total expenditure for the 3rd quarter amounted to R1.429 billion as compared to the projected expenditure of R1.266 billion representing a variance of 13% higher than what had been projected. The variance analysis per programme is further explained in the presentation.

Actual total expenditure for the 4th quarter amounted to R1.542 billion as compared to the projected expenditure of R1.282 billion representing a variance of 20% higher than what had been projected. The variance analysis per programme is further explained in the presentation.

Presentation: African Renaissance and International Co-Operation Fund (ARF) third and fourth quarter report 2020/21.

Ms Hlengiwe Bhengu, Acting CFO, DIRCO lead the presentation on behalf of DIRCO. [Please see the presentation slides].

South Africa, through President Cyril Ramaphosa, pledged to support international efforts to combat covid-19 in Africa. Contribution towards the development of new vaccines to combat the COVID-19 virus, as well as the development of new tests to rapidly diagnose the disease through BIOVAC.

In promoting democracy and good governance, ARF supported the presidential and legislative elections in the Central African Republic. The Secretariat has continued to monitor the active projects in collaboration with missions abroad to ensure that funds are utilized for what they were intended for.

Performance Summary per Quarter

There were twelve targets for both quarter three and quarter four. Quarter three had seven targets, of the seven, three targets were achieved and four were not achieved. Quarter four had five, of the five, two targets were achieved, three were not achieved.

Reasons for non-achievement.

• One request was not evaluated by the ARF Advisory Committee due to unavailability of the presenter who had conflicting meetings- Strengthening local and national capacities for peace project and agenda for conflict prevention and resolution (PRC).
• There were no physical observers sent for elections due to COVID19 restrictions.
• No requests were considered for operationalisation of the African Continental Free Trade Agreement (AfCFTA) and socio-economic development and integration projects.

The following two proposals were not reviewed by the ARF Advisory Committee.

• Project proposal to the ARF for assistance in strengthening local and national capacities for peace project, an agenda for conflict prevention and resolution. The proposal was deferred to the next meeting.
• Proposals for assistance in utilization of science, technology and innovation in developing safe and quality medicines from African indigenous plants. The proposals were received a day before by committee members, the proposal was deferred to the next meeting as well.

ARF Financial Reporting [said to be at 30 March 2020]

[Please see the slide]

Discussion

Mr Faber asked the ARF about the loan to Cuba: what is the extent of this loan. How much exactly was given to Cuba? Was it only through the ARF that money was given to Cuba or are there other Departments and entities. What amount does Cuba still need to pay back?

Ms B Swarts (ANC) asked DIRCO to explain to the Committee in detail what the real impediments were for finalising the plans in programme 1. Does DIRCO have capacity challenges or is it a matter of not prioritising the task. DIRCO is failing to live up to the energy it had when it discussed the passing of the Act. ICT matters have plagued DIRCO for many years now and it doesn’t seem like the problem will ever go away. She asked what are the real reasons for the ICT programme being stalled and why does it take so long for ICT equipment being procured. Why is it taking so long to replace Evergreen, the service provider on the global wide network, and how long will it take to appoint a new service provider.

The recent presentation by DIRCO’s Audit Committee shows the committee is not independent and was only presenting what the Department wanted it to present. DIRCO must assure the Portfolio Committee, that the Audit Committee is independent. The Portfolio Committee commended DIRCO for overcoming asset management issues. The only matter that led to DIRCO getting an unqualified audit opinion was the failure to disclose a disallowance amount of R 188 million. She asked if investigations will be conducted on this. She said at least there was no irregular spending on Personal Protective Equipment (PPE), but what steps is DIRCO taking towards the complete eradication of irregular expenditure and non-compliance. DIRCO said work around regulations was done. Did DIRCO consult stakeholders and Parliament on this matter? What is DIRCO doing to expedite the review process considering it is the core mandate of the Department. COVID-19 has impacted DIRCO severely in implementing its programmes, how does the Department plan on overcoming this challenge.

The finance branch of DIRCO is still not adequately capacitated, the previous CFO was not a qualified chartered accountant and had a qualification around economics. If there is someone running a programme, they must have the appropriate skills. The Auditor-General (AG) is always commenting on miss-statements and skills capacity within the finance branch. DIRCO should have had an action plan around this. Why is there still no action plan on this matter? When will DIRCO prioritise the ARF Bill, and when will the bill come into effect.

Mr B Nkosi (ANC) said that DIRCO keeps on moving the goal post for its targets and keeps adding new targets. This will create a problem because it creates a lot of targets which the Department is unable to meet and report on. There is no clear indication of what DIRCO is doing if they are able to shift targets if they are not achieved. DIRCO needs to find a way to achieve targets each quarter. Five task teams were created to operationalise the Foreign Service Act, but this target is disappearing and the target is being shifted continuously. DIRCO presented to Parliament saying this Bill is their priority as it will allow DIRCO to deal with a range of issues that have been persistent within the Department.

He said if DIRCO deaccelerates this programme then there will be a problem. He asked if the task teams could report back to the Committee on how far the process is. He also asked when the South African Development Partnership Agency (SADPA) will be replaced. There are a few South African companies based on the African Continent facing a backlash. Checkers is closing most its outlets on the continent, MTN is faced with multiple tax issues and MultiChoice is also facing problems on the continent. This shows there is no political engagement with the private sector or support from DIRCO to these companies.

Mr Mpanza said it seemed like DIRCO did not know how to control their targets. DIRCO can’t achieve these targets because they are unmeasurable. There is a clear performance system set out and principles guiding Annual Performance Plans (APPs) but it seems like DIRCO is not following these prescripts since they set targets that are unmeasurable and unachievable. There is also a practice within the Department to continuously shift targets. He said there can’t be a system which allows DIRCO to have moving targets. He asked why the issue on organisational structure has not been prioritized. He asked how it is possible for the ARF, an entity within DIRCO under the leadership of the same CFO, has positive audit outcomes compared to DIRCO.

The Chairperson asked why legal matters were a target, because the outcomes of these matters can’t be predicted. Why was it difficult to meet the target on media statements and opinion pieces which are quite simple tasks to do? He said it will be important going forward to quantify matters of the economy in relation to foreign direct investments and trade South Africa is directly involved in, if there could be a link to its normal reporting. The Acting CFO mentioned financial management issues and the problem with the central supplier data base, The Chairperson asked what DIRCO was looking to achieve regarding financial management and what discussions are being had with National Treasury on the central supplier data base.

Response

Ambassador Ntshinga said he would lead DIRCO’s response, and on some issues other officials might add. He said the question on linking the economy to DIRCO’s reporting will need more time and DIRCO currently won’t be able to provide such a report. The Minister however has been working with the private sector in creating a footprint on the continent. A mechanism was set up involving the three relevant departments that will discuss the approach to take on the continent. One of the problems identified was that departments don’t approach matters on the continent in a unified matter and approach matters individually. There needs to be better coordination between relevant Departments. This mechanism will be launched as soon as possible and will include the Department of Public Enterprises, the Department of Trade, Industry and Competition and DIRCO.

Ms Dineo Mathlako, Head: African Renaissance Fund Secretariat, confirmed an initial loan amount of R63 million was granted to Cuba and the whole amount was subsequently repaid. Cuba has reserved a loan facility of R131 million and R22 million has been transferred to Cuba. The loans that have been given to Cuba are for the procurement of South African goods, the money is spent on South African companies and the loans are repaid back with interest.

Ambassador Nozipho Mxakatso-Diseko said Cuba relates to South Africa as a responsible partner. The relations with Cuba go far back and South Africa will always be indebted to Cuba. She said the perception that the Cuba relationship is bad is a narrative which is not true. Cuba has fully paid its debt in all regards.

Ms Bhengu said the ICT procurement process has been finalised and DIRCO is awaiting delivery from its service provider. The restrictions regarding COVID-19 caused a delay in the delivery but DIRCO received a commitment letter and it stated delivery should happen within September. She said the global network project was cancelled in April 2021. It was subsequently reissued and evaluation has started on this project. This project will be finalised before the end of the financial year. Much of the delays which are ICT related are around delivery of devices. As soon as these devices are delivered, objectives of these strategies should be implemented.

She said DIRCO had started looking at matters raised by the Audit and Risk Committee. An agreement was reached that when the 2021/22 audit plan gets developed those matters must be part of the audit plan. DIRCO had a meeting with the AG that same day [2 September 2021] and it was a very positive engagement. There are some improvements on DIRCO’s side on asset management and receivables. The AG has not finalised DIRCO’s financial report. DIRCO will strive for a clean audit outcome on compliance and a new unit has been established called contract management, as this was one of the serious problems raised by the AG. DIRCO is in process to finalise advertisements for the posts to fill this unit. The documents governing this unit, workshops and a risk management evaluation have been done on the establishment of this unit. As soon as this soon is up and running, issues around compliance will start to decrease. There has also been a steadily decrease in irregular expenditure. The central supplier database is fully under control of National Treasury and the main issue was DIRCO could not place an order through the main supplier data base because the supplier DIRCO had to pay did not comply with all tax related issues. But these issues have been solved and payment was made through the central database. She said there is a chartered accountant within the Department and the head of internal audit is also a chartered accountant. Audit submissions get reviewed by the head of internal audit before it gets submitted to the Auditor-General. Time has been a factor in submitting all information, since DIRCO needs to wait for all missions to submit their information. DIRCO is also exploring having a chartered accountant within the financial management unit.

At the time of the annual report, DIRCO had not concluded the organisational review but it was part of the last set of targets that needed to be signed off. DIRCO however had to submit its annual report. On paper this target was not included, but the review has been concluded. The targets were formulated using the appropriate guidelines. In programme 4, which entails consular services, DIRCO can’t foresee what the request will be and it is seen as a response target. This is a service target and DIRCO must include whatever request is being made for consular services or for legalisation. The AG looks at the registry for services requested and compares that with services concluded and then a response is made. However, when DIRCO reports on this, it is put into a real number.

Mr Clayson Monyela, Deputy Director-General: Public Diplomacy, DIRCO said DIRCO will reach out to the Committee since there are public diplomacy issues that can be amplified by the Committee. The presentation has DIRCO’s annual targets but then unpacks how these performed during quarter three and four, so it may appear a target was not reached when it actually was reached [over the full financial year]. The targets on media and opinion pieces were reached and DIRCO even over-performed. The reason why there is a media target, is to pressure the team to look for daily opportunities in terms of reaching people to communicate the work DIRCO is currently doing. Having a target forces DIRCO to be agile and to look for new opportunities.

Ms Mathlako said a draft of the SADPA Bill has been submitted to the Minister of Finance as part of the consultation before it makes its way to Cabinet and then to Parliament via the Portfolio Committee. The submission happened at a time when there was a transition between Ministers at National Treasury and they have assured DIRCO the current Minister is considering the matter and DIRCO will receive a response soon.

Adv Sandea de Wet, state law advisor, DIRCO, said the process to implement the Foreign Service Act is taking a bit longer than anticipated. There were five work streams that consisted of members of the various branches to ensure DIRCO is not working in silos and to have a rich discussion across various issues, COVID-19 did play a role in stopping the work streams from doing their work since not all members of the work streams had tools of trade to work virtually. The work streams managed to finalise their work and this was sent to the DG. An opportunity to consult stakeholders has started and a deadline was been sent to all departments to make submissions which closed on 13 August. The Presidency was also approached to ask for an exemption to comply with the requirements to do a socio-economic impact assessment. DIRCO is working through all the comments sent by departments and is still awaiting comments from a few other departments. The draft comments will be finalised and presented to the Committee.

The Minister said steps are being taken with the private sector to address some of the issues they faced in some foreign countries. These companies are faced with very difficult situations, but a mechanism is being developed to address these.

The Chairperson thanked the Minister and the Department. The Chairperson said he wished to convey a message to the Minister and the Committee from Rev Meshoe. Rev Meshoe would like to profusely apologise for what he said. It was not meant to insult the Minister or her character. He unfortunately used the wrong words and apologises for his actions. He will try by all means to reach the Minister and apologise as he unfortunately had to leave the meeting before the closing. The Chairperson said Committee meetings should not end so late and next time Members must try to be concise.

The meeting was adjourned.