1. Annual Report Briefing to the Portfolio Committee on Transport 10 October 2013 by Sipho G. Khumalo

2. Presentation Outline Mandate Strategic Tasks Audit Outcomes
Review of Organisational Performance
Financial Information
Employment Equity
Community Development Programmes
Strategic Imperatives and Challenges
Conclusion

3. Mandate
The Cross-Border Road Transport Agency’s (C-BRTA) legislative mandate is to improve the flow of passengers and freight by road transport in the region, introduce regulated competition in cross-border road transport, reduce operational constraints for the cross-border road transport, trade facilitation, provide oversight and monitoring functions, and to build industry partnership to strategically reposition the work of the C-BRTA

4. Strategic Imperatives
To improve the unimpeded flow of passenger and freight movements across regional borders
To liberalise market access in respect to freight transport
To introduce regulated competition in respect to passenger transport
To reduce operational constraints for the cross-border road transport industry
To enhance and strengthen the capacity of public sector
To empower the cross-border road transport industry

5. Reflecting on the 10 Point Plan
Item
Intervention
Progress 1
Recruiting suitably qualified personnel 2
Consensus on organisational mandate 3
Improve image of Agency by obtaining a clean audit 4
Resolving governance lapses at Board level 5
Developing a sound funding model 6
An organisational structure consistent with the mandate 7
Developing leadership cohesion at all levels 8
Organisational culture and values 9
Inculcating a performance driven culture 10
Developing strategic partnerships with stakeholders

6. Audit Outcomes
The Agency attained its first unqualified audit opinion since establishment 15 years ago.
2012/13
2010/11
2011/12
UNQUALIFIED
AUDIT
QUALIFIED
AUDIT
QUALIFIED
AUDIT

7. Audit Outcomes - 2013 Outcomes
Annual financial statements unqualified – with no material misstatements
Emphasis of Matter:
Funding of Operations – Litigation on the increase in permits tariff
Predetermined objectives unqualified - No material findings on the reliability and usefulness of the performance information
Additional Matter:
32 of the 62 performance indicators not 100% achieved
Reduction of Irregular expenditure from R14 million in the previous financial year to R920K in 2012/13 – mainly due to contracts entered into in the previous years

8. Review of Organisational Performance
Performance targets
Number of indicators
% Obtained
Performance targets fully achieved (100%) 30
48%
Performance targets partially achieved (60% %) 8
13%
Performance targets not achieved (30% %) 9
15%
Performance targets not achieved (above 0% up to 29.9%) 4 6%
Performance targets not achieved (0%) 11
18%
TOTAL 62
100%

9. Review of Organisational Performance - Law Enforcement
Work Activity
2011/12
2012/13
Difference
% Movement
Year-on-year movement
Vehicle Inspections
7 748
6.2%
Prosecutions
11 549
15 384
3 835
33.2%
Compliance Rate
90.55%
88.79%
(1.76%)
(1.90%)

10. Review of Organisational Performance - Permits Issued
Work activity
2011/12
2012/13
% Movement
Year-on-year movement
Total Permits issued
71 100
75 000
5.49%
PERMITS ISSUED PER CATEGORY
Passenger transport - Taxi
11 950
10 539
(11.81%)
Passenger Transport - Buses
2 367
3 144
32.83%
Freight transport
54 827
55 053
0.41%
Tourist transport
1 956
1 682
(14.01%)

11. Permits Issued for Passenger Transport (Taxi)
Permits issued in 2011/12 and 2012/13
Permits issued per country during 2012/13
Country
2011/12
2012/13
% Movement
Year-On-Year Movement
Botswana
405
339
(16.30%)
Lesotho
2,762
2,968
7.46%
Malawi 2
0.00%
Mozambique
5,177
4,332
(16.32%)
Namibia 98 79
(19.39%)
Swaziland
681
453
(33.48%)
Zambia 8 40
400.00%
Zimbabwe
2,729
2,312
(15.28%)
Carbotage 88 14
(84.09%)
Total
11,950
10,539
(11.81%)

12. Permits Issued for Passenger Transport (Buses)
Permits issued in 2011/12 and 2012/13
Permits issued per country during 2012/13
Country
2011/12
2012/13
% Movement
Year-On-Year Movement
Botswana 36
100
177.78%
DRC 23
0.00%
Lesotho
468
595
27.14%
Malawi
207
127
(38.65%)
Mozambique
339
631
86.14%
Namibia
113
110
(2.65%)
Swaziland 17
182
970.59%
Zambia
115 77
(33.04%)
Zimbabwe
989
1,299
31.34%
Total
2,307
3,144
36.28%

13. Permits Issued for Freight Transport
Permits issued in 2011/12 and 2012/13
Permits issued per country during 2012/13
Country
2011/12
2012/13
% Movement
Year-On-Year Movement
Botswana
8,785
7,769
(11.57%)
DRC
4,275
4,950
15.79%
Lesotho
4,423
4,315
(2.44%)
Malawi
1,130
1,322
16.99%
Mozambique
7,351
8,463
15.13%
Namibia
5,680
5,800
2.11%
Swaziland
5,899
5,357
(9.19%)
Zambia
8,154
8,574
5.15%
Zimbabwe
8,426
8,432
0.07%
Carbotage
704 71
(89.91%)
Total
54,827
55,053
0.41%

14. Permits Issued for Tourist Transport
2011/2012
2012/2013
% Movement
Year-On-Year Movement
Regional
1,956
1,682
(14.01%)

15. Financial Performance 2012/13
2011/2012
REVENUE
Permit Income
R165,93m
R164,89m
Penalty Income
R20m
R15,07m
Other Income
R2,14m
R 3,15m
Interest Received
R4,92m
R 2,45m
EXPENSES
Employee Costs
R101m
R70,75m
Operating Expenses
R57,58m
R44,49m
SURPLUS
R34,50m
R71,05m

16. Financial Position 2012/13 ASSETS LIABILITIES 2012/13 2011/2012 R3,81m
CURRENT ASSETS
Receivables
R3,81m
R2,69m
Cash and Cash Equivalents
R125,46m
R84,65m
NON-CURRENT ASSETS
Property, Plant and Equipment
R8,27m
R7,57m
Intangible Assets
R1,15m
R1,07m
TOTAL ASSETS
R138,68m
R96m
2012/13
2011/2012
CURRENT LIABILITIES
Lease obligations
R0,68m
R0,76m
Payables
R18,20m
R12,57m
Provision
R9,06m
R6,19m
NON-CURRENT LIABILITIES
Retirement benefit obligation
R1,65m
R1,88m
TOTAL LIABILITIES
R29,59m
R21,40m
ACCUMULATED SURPLUS
R109,10m
R74,60m

17. Employment Equity
RACE
GENDER

18. Community Development Programmes
Recruited 21 Trainee Inspectors for a 12 months Training in 2013
Intake of 10 Internship Students in 2013
Development of a Women-In-Transport programme aimed at introducing women operators to cross-border road transport
On-Going SMME Development Programmes For Aspiring Cross-Border Operators
Donated Furniture to Rakgotso High School in Mamelodi

19. Strategic Imperatives
Activation of the mandate to enable seamless and efficient passenger and freight logistics in South Africa, Regionally and Globally – positioning of our borders as trade facilitation points!
Need to resolve ‘misunderstandings’ pertaining to the mandate and role of the C-BRTA
Strengthening Partnerships with SARS and other Border Authorities
Appreciating the changing dynamics in border towns and the need to respond to provincial imperatives

20. Key Challenges & Intervention Areas
Addressing the question of unroadworthy cross-border vehicles and the review of SADC vehicle standards
Need for protection S.A. domestic operators in regard to conditions obtaining in our neighbouring countries – need for review of Bilateral Agreements & implementation of the SADC Protocol
Provision for dealing with overloaded cross-border vehicles (below 3.5 tons) and use of bus trailers for the transportation of goods
Resolution of the Lesotho/Free State Cross Border passenger transport issue
On-going litigation on the increase of permit tariffs

21. Concluding Remarks
The C-BRTA is geared to demonstrate its commitment to adding public value through its strategic interventions.
This Agency is also poised to support the National Programme of Action of government of industrialization and job creation.
The Agency has broken the cycle of audit qualifications and attained an unqualified audit opinion
Going forward, the C-BRTA is gearing itself to expand its service offerings to our provincial offices, thus taking our services to the people.

22. i thank you