1. NATIONAL MACRO ORGANIZATION OF STATE PROJECT (NMOS) 2014 Presentation to the Portfolio Committee for Communications NATIONAL MACRO ORGANIZATION OF STATE PROJECT (NMOS) 2014 Presentation to the Portfolio Committee for Communications 19 August 2014

2. Layout of Presentation  Background  NMOS Approach  Legal Matters  Transfer of Functions and Entities  Progress by Cluster 2

3. Background  Following the appointment of the national Executive by the President on 26 May 2014 (President’s Act No 135 and 136) various administrative and legal steps were taken to give effect to the new Executive portfolios.  The NMOS Steering Committee was established comprising the DG: Presidency and the chairperson, DGs of All affected departments and the DGs; DPSA, NT, GCIS and DPW.  NMOS governance structures were establish to provide for:  Support by centre of government departments to affected departments.  A National Project Team comprising subject experts to assist departments  Departmental Project Teams and work streams to do the technical work in respect of the transfer of functions, staff and resourses between departments  Various guides have been drafted and shared with departments.  The National Project Team and departments meet bi-weekly to guide progress. 3

4. NMOS Approach Endorsed by Steering Committee  The NMOS process is limited to giving effect to the Presidential proclamations regarding the establishment of new or amended Executive portfolios, the renaming and establishment of new departments, and the transfer of legislation between Ministers in terms of the Constitution.  Introducing new policies and strategies and concomitant resourcing needs fall outside the scope of the NMOS.  Designing organisational structures are limited to the realignment of organisational structures of departments and excludes restructuring.  The deadline for the submission of proposed organisational structures to the MPSA for a determination is 25 August 2014.  The NMOS process to be concluded by 30 August 2014. Departments that are lagging will be dealt with as part of residual matters.  Staff will transfer with existing conditions of service (COS) benefits and retain those conditions of service until reviewed or re-negotiated. reviewed or re- negotiated. COS must be addressed in the shortest possible time or before the end of this financial year 4

5. Legal Matters  Proclamation (No. 43 of 8 July 2014) was Gazetted to amend Schedule 1 of the PSA to establish new and renamed departments.  To facilitate the transfer of functions and resources within a financial year existing Departments were retained as holders of current Votes.  Whilst retaining the current Votes, new Votes were created for new and renamed departments in terms of the 2014 Appropriation Bill, 2014.  The National Assembly and the NCOP passed the Appropriation Bill, which was submitted to the President for signing.  The Votes created by the Appropriation Act, allows Treasury to transfer funding between departments as they finalise the transfer of functions and staff, in-year.  Practically, the GCIS becomes the new Department of Communications with its Vote and the current Department of Communications becomes the Department of Telecommunications and Postal Services with its Vote.  Proclamation (No. 47 of 15 July 2014) was Gazetted to transfer the administration of legislation and entities from one Minister to another in terms of section 97 of the Constitution. 5

6. Transfer of Functions and Entities to the New Department of Communications  Government Communication and Information System Functions  ICASA (From “old” department of Communications)  SABC (From “old” department of Communications)  Brand SA (From the Presidency)  Media Development Diversity Agency (From the Presidency)  Film and Publication Board (From Home Affairs) 6

7. Transfer of Functions and Entities to the New Department of Telecommunications and Postal Services  Telecommunications Functions  Broadband Infrastructure Company (Pty) Ltd (From DPE)  South African Post Office Limited  Telkom SA Limited  National Electronic Media Institute of South Africa  State Information Technology Agency (From DPSA)  Universal Service and Access Agency of South Africa  Universal Service and Access Fund  Sentech Limited 7

8. Progress by Cluster as at 7 August 2014 DepartmentProgressChallenges and Recommendations Communications/ Telecommunications and Postal Services/ DPE Agreement reached on the transfer of functions. Overlaps in Ministerial mandates in the Electronics Communication and Transactions Act, ICASA Act, Broadcasting Act & Electronic Communication Act are being identified. INFRACO: INFRACO Board has agreed in principle with the transfer to a new shareholding Minister. Once the proclamation has been Gazetted the board will meet to ratify the transfer Minister of Telecommunications and Postal Services will officially replace the Minister of Public Enterprises as the shareholder representative. Proclamation to be finalised and submitted for President’s approval. The matters regulated in the Electronics Communication and Transactions Act, ICASA Act, Broadcasting Act & Electronic Communication Act to be interrogated. State Law Advisor to advise on the overlaps. The location of ICASA was also raised by the State Law Advisor. Stakeholders to be widely informed through emails and formal letters of the changes. Meeting held with 2 DGs to discuss a way forward. 8

9. THANK YOU 9