1. Relations between DAC and the PanSouth African Language Board Presentation to the Portfolio Committee on Arts and Culture Presented by: Vuyo Jack Date: 3 March 2015

2. 2 PanSALB’s Mandate 2

3. 3 Mandate The Pan South African Language Board (PanSALB) was implemented in terms of, Section 6 of the Constitution (Act 108 of 1996) which states that: –“[A] Pan South African Language Board be established by national legislation which must: (a) Promote and create conditions for, the development and use of- (i) all official languages; (ii) the Khoi, Nama and San languages; and (iii) South African Sign language; and (b) Promote and ensure respect for- (i) all languages commonly used by communities in South Africa”. 3

4. 4 Objectives The PanSALB Act (No 59 of 1995 as amended) established the organisation with the objective of: –Promoting respect for and ensure the implementation of the Constitutional principles related to language. –Furthering the development of the official South African languages. –Promoting respect for and the development of other languages used by communities in South Africa, and languages used for religious purposes –Promoting knowledge of and respect for the other provisions of and the constitutional principles contained in the Constitution dealing directly or indirectly with language matters. –Promoting respect for multilingualism in general. –Promoting the utilisation of South Africa's language resources. 4

5. 5 Resourcing the Mandate 5

6. 6 Budget Allocation The organisation is predominantly financed through an annual allocation approved through Vote 14 (Arts and Culture). Over time, the budget has increased by an average of 9% over the last 9 years 6 Entity 2009/102010/112011/122012/132013/14 2014/15 MTEF 2015/162016/172017/18 PanSALB 47 55650 15652 87156 11969 48083 497 87 33891 967 96 565 % increase 8.9%5.5%5.4%6.1%23.8%20.2%4.6%5.3%5%

7. 7 Spending Patterns Administration costs, and particularly management and corporate services costs have increased dramatically, rising from 59% in 2009 to 75% in 2013 (Source: PARI,2014) The liabilities of the institution exceed its assets; it is therefore technically bankrupt 7

8. 8 Governance and Administration 8

9. 9 Governance The institution has had numerous sustained periods of crisis since its establishment PanSALB has consistently argued that it is underfunded, and over time, there has been substantive instability in senior management and board structures In 2011 DAC dissolved the PanSALB board based on the recommendations of a review of the organisation which found that: –PanSALB had materially failed to meet its mandate and was unable to translate its mandate into a meaningful and aligned set of strategic objectives and performance activities. –that there were serious and deep rooted problems in the functioning of the PanSALB board and the organisation itself. 9

10. 10 A caretaker CEO to assist in the development and implementation of a turnaround strategy, unfortunately this process did not yield the desired result: –The organisation continued to incur fixed costs it could not accommodate within its allocated budget, largely through the creation of a series of new posts –Escalating legal costs from a number of years of poorly administered legal matters created significant deficits In 2013 Treasury commissioned a review of the government language system, which found significant problems at PanSALB pertaining to performance and expenditure In early 2014 Treasury approved a R17,2 million bail out package at the request of the DAC, on condition that: –A forensic audit be initiated –A cost cutting strategy be implemented 10 Governance (cont.)

11. 11 A new board was appointed in 2014, taking over an institution already in a state of financial crisis There have been numerous meetings between the Board and DAC, and the entire staff and board of PanSALB with the Deputy Minister and the Portfolio Committee to stabilise the organisation, but to no avail. In addition, the National Lexicography Units (NLUs) have approached the Presidency, Ministry and Department for assistance as they have not been granted the necessary audience with the new Board to discuss matters impacting on their work 11 Governance (cont.)

12. 12 Conclusion The Acting CEO and the Board have brought the institution further crisis and disrepute by: –Not adhering to the Treasury’s request for a cost cutting plan –Not co-operating with forensic auditors appointed by Treasury –The summary dismissal of all new staff appointed by the Caretaker CEO on the grounds that their appointment was unlawful –Contesting the authority of the Minister in the courts to get involved in mediating discussions between PanSALB and the newly dismissed staff –Not submitting the Strategic Plan, Annual Performance Plan and budget information as required –Not submitting the required quarterly financial or performance report for the third quarter as required –Not participating in DAC processes of sector-wide planning, risk assessment or marketing –Requesting the DAC officials no longer contact the organisation as PanSALB regards its role merely as a conduit of funds 12

13. 13 THANK YOU