ANNUAL REPORT 2016 | 2017

1 ANNUAL REPORT . 2016 | 2017 . public enterprises Department: Public Enterprises REPUBLIC OF SOUTH AFRICA. TABLE OF CONTENTS. PART A: GENERAL 3. 1. DEPARTMENT'S GENERAL 2. LIST OF ABBREVIATIONS / 3. FOREWORD BY THE 4. DEPUTY MINISTER'S 5. REPORT OF THE ACCOUNTING 6. STATEMENT OF RESPONSIBILITY AND CONFIRMATION. OF ACCURACY FOR THE ANNUAL 7. STRATEGIC 8. LEGISLATIVE AND OTHER 9. ORGANISATIONAL 10. ENTITIES REPORTING TO THE PART B: performance 20. 1. AUDITOR GENERAL'S REPORT : PREDETERMINED 2. OVERVIEW OF DEPARTMENTAL Service Delivery Service Delivery Improvement Organisational Key policy developments and legislative 3.

2 STRATEGIC OUTCOME ORIENTED 4. performance INFORMATION BY Programme 1: Programme 2: Legal and Programme 3: Portfolio Management and Strategic 5. TRANSFER Transfer payments to public Transfer payments to all organisations other than public 6. CONDITIONAL 7. DONOR Donor Funds 8. CAPITAL Capital investment, maintenance and asset management DPE - ANNUAL REPORT 2016 /17 1. PART C: 59. 1. 2. RISK 3. FRAUD AND 4. MINIMISING CONFLICT OF 5. CODE OF 6. HEALTH SAFETY AND ENVIRONMENTAL 7. PORTFOLIO 8. SCOPA 9. PRIOR MODIFICATIONS TO AUDIT 10.

3 INTERNAL CONTROL 11. INTERNAL AUDIT AND AUDIT 12. AUDIT COMMITTEE PART D: HUMAN RESOURCE 71. 1. 2. HUMAN RESOURCES OVERSIGHT PART E: FINANCIAL 93. 1. REPORT OF THE AUDITOR 2. ANNUAL FINANCIAL 2 DPE - ANNUAL REPORT 2016 /17. PART A. GENERAL INFORMATION. DPE - ANNUAL REPORT 2016 /17 3. 1. DEPARTMENT'S GENERAL INFORMATION. Physical Address: Suite 301. Infotech Building 1090 Arcadia Street Hatfield Pretoria Postal Address: Private Bag X15. Hatfield 0028. Telephone Number: 027 12 431 1000. Fax Number: 027 086 501 2624.

4 Email Address: Website Address: 4 DPE - ANNUAL REPORT 2016 /17. 2. LIST OF ABBREVIATIONS / ACRONYMS. Below is a glossary of acronyms used in the Department of Public Enterprises: AFS ANNUAL Financial Statement AFDB African Development Bank AGM ANNUAL General Meeting APP ANNUAL performance Plan ARC Audit and Risk Committee B-BBEE Broad-Based Black Economic Empowerment CAPEX Capital Expenditure CFO Chief Financial Officer CS Corporate Services CSI Corporate Social Investment CSDP Competitive Supplier Development Programme COE Compensation of Employees DAFF Department of Agriculture.

5 Forestry and Fisheries DBSA Development Bank of South Africa DCT Durban Container Terminal DDG Deputy Director-General DG Director-General DM Deputy Minister DMR Department of Mineral Resources DOD Department of Defence DPE Department of Public Enterprises DPSA Department of Public Service and Administration EDI Electricity Distribution Industry EE Economic Equity EIA Environmental Impact Assessments EIPA Economic Impact and Policy Alignment EMP Environmental Management Plan ERM Enterprise Risk Management EXCO Executive Committee FET Further Education and Training GCIS Government Communications and Information Systems HR Human Resources IGR Inter-Governmental Relations IRP Integrated Resource Plan ISMO Independent System and Market Operator ESEID Economic Sectors.

6 Employment and Infrastructure Development Cluster JV Joint Venture KLF Komatiland Forests KPI Key performance Indicator MISS Minimum Information Security Standards MPAT Management performance Assessment Tool MOI Memorandum of Incorporation MOU Memorandum of Understanding MTEF Medium-Term Expenditure Framework DPE - ANNUAL REPORT 2016 /17 5. MTSF Medium-Term Strategic Framework NDP National Development Plan NFLS National Freight Logistics Strategy NGP New Growth Path NMPP New Multi-Product Pipeline NSF National Skills Fund NSG National School of Governance NT National Treasury OEM Original Equipment Manufacturing OPP Operational performance Plan PFMA Public Finance Management Act PPP Public-Private Partnerships PSJV Pooling and Sharing Joint Venture PSP Private Sector Participation RMC Richtersveld Mining Company SAFCOL South African Forestry

7 Company Limited SARA Small African Regional Aircraft SAX South African Express Airways SCM Supply Chain Management SID Strategically Important Developments SHC Shareholder Compact SIP Supply Integrated Programme SLA Service Level Agreement SMF Significant and Materiality Framework SOC State Owned Company TEUs Twenty Feet Equipment Unit TNPA Transnet National Ports Authority TOR Terms of Reference TFR Transnet Freight Rail 6 DPE - ANNUAL REPORT 2016 /17. MS LYNNE BROWN, MP. Minister 3. FOREWORD BY THE MINISTER. W hen I tabled the ANNUAL performance Plan and Medium Term Strategic Plan for the Department at the beginning of the period he creation of a supportive policy T.

8 Framework to enable SOCs to diligently execute their mandates; and under review , I noted that they were introduced Coherence within Government on the role in a constrained and contested environment. of SOCs, and the development of new architecture in the Shareholder Function The South African economy had shown only to support the implementation of national sluggish growth since the global downturn policies. of 2008/2009, and some sectors of society continued to advocate for the privatisation of Pursuant to the achievement of these goals I.

9 Certain State-Owned Companies (SOCs). am pleased to announce a significant milestone in the SOC Reform Project. The principles of I emphasised, however, that in South Africa the new Shareholder Policy were approved by where the major part of the economy is Cabinet in the last financial year. controlled by the minority of the population, SOCs in the Department of Public Enterprises The policy is meant to improve the performance portfolio, with collective assets worth more than of SOCs as well as to strengthen and sharpen 1-trillion rand, had important roles to play in Government's role as shareholder, regulator accelerating the development of the economy, and policy maker in the governance of SOCs.

10 And ensuring poverty alleviation, inclusive The Department will continue to engage growth and socio-economic transformation. stakeholders and accelerate its efforts to I underscored the important role that SOCs introduce a Draft Shareholder Management Bill play in a developmental state, generally, and during the 2017 /18 financial year. specifically in supporting the attainment of the The Ministry and the Department's work in development goals defined in the National this domain forms an integral part of the wider Development Plan.