National Consumer Tribunal 2016/17 Annual Report

Meeting report

Briefing by the National Consumer Tribunal (NCT) on its Annual Report 2016/17
The delegation comprised of Prof Joseph Maseko Executive Chairperson, Ms Marelize Bosch Chief Operations Officer (COO), Mr Nelson Lolwane Corporate Services Executive and Mr Ahmed Moolla Chief Financial Officer (CFO). Prof Maseko undertook the briefing.

The Committee was provided with background on the NCT’s organisational environment. The case load of the NCT had increased by 22.83% from 2015/16 to 2016/17. Net cases received minus withdrawals and duplicate filings were 22 673. The financial resources of the NCT sat at R52.8m for the period under review.  Administration and Adjudication was the core programmes of the NCT and members were given insight into their performance.

Adjudication Programme
On the average number of days from the date of filing of Debt Rearrangement Applications (DRAs) to the date of issuing an order to filing parties the annual target for the turnaround time was set at 100 days. Performance was much better at 71.35 days. On the percentage of decisions overturned on appeal or review the annual target was set at 5% maximum. Actual performance sat at 0%.  Only 2 cases out of 21 494 had been won on appeal so the winning percentage was negligible.

Administration Programme
On the percentage of positions filled on an approved organisational structure the annual target was set at having 85% of positions filled. Actual performance surpassed the target with 88.98% of positions being filled. On the number of interns employed through structured opportunities created for youth development the annual target was set at four. Actual performance was that six youth were appointed.

On case management, the introduction of motion courts during 2015/16 assisted with the managing of the NCT’s caseload resulting in only 11 041 cases being brought forward into 2016/17. The digitisation of records remained a focus area, especially with high reliance on Information Communication Technology (ICT) interventions. On appeals and reviews as at 31 March 2017 there had only been sixteen in total since inception. On human resources and facilities management the NCT had developed a recruitment strategy and had conducted a human resources review by an external service provider. The Committee was also provided with figures on gender and employment equity for the NCT. 62.5% of the organisation was female with 37.5% being male. The majority of the organisation was African with the figure sitting at 72%. The NCT received its fifth successive clean audit. On financial management the income from filing fees was increasing as a result of the increase in the number of cases being filed. The income from filing fees for 2016/17 was just over R4.4m. There was an increase in expenditure from 2015/16 to 2016/17 and this was mainly due to the implementation of motion courts and the number of cases being adjudicated on. Irregular expenditure of R137 857 was incurred during 2016/17 due to a bid being awarded based on a copy of Broad Based Black Economic Empowerment (B-BBBEE) certificate being accepted. The original certificate was later received and the irregular expenditure was condoned by National Treasury.
 
Discussion
The Chairperson asked that the Committee be provided with a breakdown of the number of cases in the nine provinces. He asked that the information be provided to the Committee within fourteen days.

Mr M Rayi (ANC, Eastern Cape) congratulated the NCT on a very good report. The Committee was satisfied with its Annual Report. He asked if the NCT should have a presence by way of a motion court in each and every province whether its budget would be increased by such a huge amount. He added that members were dealing with the Administrative Adjudication of Road Traffic Offences (AARTO) Amendment Bill at present and one of the issues that had emerged was whether the suggested Appeals Tribunal was taking away the public’s right to go to court. He asked whether the public could go to court if they were not satisfied with the NCT’s judgements. If indeed it is so, he asked how many cases were referred to court after the NCT had dealt with it. In as much as an explanation was given for the reason behind withdrawals he nevertheless felt the figure of 13 000 to be far too much. On non-debt re-arrangement applications he asked what the condonations were for and why they had been refused.

Prof Maseko, on a motion court going to each and every province, responded that unfortunately there was limited funding from government. As a result the NCT could not spread out its reach and rent offices in provinces. The only options for the NCT was to adhocly go to places. Areas where cases emanated from were targeted. Most of the cases were referred by debt councillors. He explained that the NCT tried to reach out to places in a post modernistic way ie electronically. Social media could send the traffic to Thusong Centres in even rural areas. The NCT could make computers and posters available explaining its services. The NCT covered various areas in an adhoc manner by sending staff to those areas for a couple of days. Cities covered included Cape Town and Durban. The bulk of the NCT’s work was however in the Gauteng Province. The NCT had members in various provinces. The NCT sent members the files and evidence electronically. However non debt re-arrangement files had to be sent physically. The NCT even used Skype. He explained that the 13 000 withdrawals was a unique case. The case involved a debt counsellor defrauding clients. Amongst the 13 000 supposed cases were non cases for the NCT. Cases of the NCT could be taken on appeal or review. Out of 21 000 cases only two cases succeeded on appeal in the High Court. By and large the courts agreed with the decisions of the NCT. It was either credit regulators or banks that took the NCT matters on appeal. 

Ms Bosch on why four condonations had been refused explained that if matters were brought late the merits of the case were looked at to determine whether to condone or not. In most instances matters were condoned.

Mr L Magwebu (DA, Eastern Cape) noted that the NCT seemed to be attempting to disperse consumer justice. Access to consumer justice was paramount. Could people access the NCT? How would a grandmother living in a remote rural village access the services of the NCT? He also asked whether the judgements and jurisprudence of the NCT had been codified in places like libraries etc. Consumer justice had to speak to the poor.

Prof Maseko conceded that even though work was done in other provinces by members using electronic means to breach the reach it still did not deal with the issue of how the grandmother in the rural village could be reached. He explained that consumer protection authorities in provinces were people’s first port of call. Provinces also tackled consumer issues, so essentially provinces were well covered. A great deal of work was being done in provinces on consumer protection. He noted that NCT’s judgements were published on its website as well by the Southern African Legal Information Institute (SAFLII). It would also be published by Jutas and by Lexus Nexus but one had to pay to access them. 

Ms M Dikgale (ANC, Limpopo) pointed out that in rural areas people often use local radio stations to access information. She suggested that the NCT use different forms of media to inform people on what it did and how to access its services. On case management she asked how an individual would be informed that his/her case had been withdrawn. She asked why matters continuously lapsed. Were people provided with information?

Prof Maseko, on utilising media, said that the NCT did on occasion appear on television. It was perhaps a good idea for the NCT to approach radio stations especially community radio stations to get its message out there. The NCT had not really used the medium of radio as yet.

Ms Bosch added that sometimes members of the NCT got invited to radio stations. She agreed that awareness needed to be created and that it was part of the NCT’s strategy. The NCT did however have meetings with the Press Club. Journalists were thus given information about the NCT.   

The Chairperson on revenue collection observed that the interest earned by the NCT was considerable amounts. He linked the interest earned to the question of why there had been a rollover of funds. Why was there underspending?

Prof Maseko explained that the rollovers were as a result of savings made on going the information technology route. The NCT was trying to move towards getting applications electronically, doing adjudication electronically and giving judgements electronically. The internet made the world smaller and the NCT needed to maximise things. 

Ms Bosch stated that the interest amount was so high because the NCT had quite a huge amount of rollover funds. A total of R10.9m had been retained. The case load of the NCT had increased by 100% but the funding it received had not. The NCT was consequently allowed to retain funds that it had.

Mr Rayi asked what the NCT’s vacancy rate was. What were the semi-skilled jobs at the NCT? He asked about the disciplinary hearings that the NCT had held and asked what the written warnings given were for.

Ms Bosch responded that the semi-skilled workers were those who had diplomas and who had entry level positions such as a records officer. Written warnings were more serious than the verbal warning. Quality of work and time parameters was important to the NCT. Written warnings were given where critical deadlines were not met or if there was policy non-compliance. The vacancy rate of the NCT was 11%.

Prof Maseko explained that one of the written warnings was regarding an attempted fraud by an employee. A banking account wherein funds were to be transferred was in the employee’s personal name. Two employees were taken through disciplinary processes in this regard. One of them was dismissed whilst one got a written warning. These matters would be reflected in the NCT’s next Annual Report.

Ms Dikgale reacted that it seemed that when the NCT visited areas it was urban areas. What about rural areas? The NCT should visit traditional leaders.

Prof Maseko stated that in the strategic plan of the NCT Thusong areas were identified. He conceded that the NCT had overlooked traditional leadership facilities.

The Chairperson urged the NCT to look at intergovernmental relations. Just as social grants were to be handled by the South African Post Office (SAPO) the NCT too could link up with the SAPO. The National Lotteries Commission also wished to establish provincial offices so there was an opportunity for the NCT to link up with them. On media the Department of International Relations and Cooperation (DIRCO) had Ubuntu Radio which broadcast all over Africa in various vernaculars.  

Committee Minutes
Minutes dated 29 November 2017 was adopted unamended.

Draft Committee Programme January 2018 – March 2018
The Draft Committee Programme was adopted unamended.

Committee discussion on international study tours
The Chairperson state that the international study tour to Norway which was supposed to happen on 22 January 2018 had been rescheduled. The problem was that the Norwegians were not aware of the cancellation and Mr Faber informed him that the Committee was expected for lunch on a certain day.
He had attempted to do damage control by asking Mr Kgabo Mahoai the Director General of the DIRCO what was happening. Mr Mahoai was unaware of anything. He managed to get hold of the South African Embassy in Norway to do damage control and to communicate matters to the persons involved. He had also written a letter to the Chairperson of the National Council of Provinces (NCOP) Ms Thandi Modise informing her about the issue. The rescheduled date for the international tour to Norway was from 4-16 April 2018 which was constituency period. The Committee needed to write a letter to the DIRCO requesting an explanation for what happened. The Committee unanimously agreed to the rescheduled study tour to Norway.
   
The meeting was adjourned.