1. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development South African Post Office Bill, [B2-2010] Dep. of Communications 24 February 2010 PCC 1

2. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Willie Vukela Director: Postal Policy Tel: 012- 427 8529 Fax: 012- 421 7134 Email:willie@doc.gov.za 2

3. Background  The South African Post Office (SAPO) is established in terms of the Post Office Act No 44 of 1958  In 1991 the Post Office Amendment Act separated the traditionally combined Post and Telecommunications sectors  Proposed Bill aimed at providing better instrument for governance of SAPO Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 3

4. Aims  Clean –up of Post Office Act, 1958  Dedicated Act for the South African Post Office  Promotion of openness, transparency and public involvement  Improvement on existing position such as Ministerial intervention in certain cases Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 4

5. Objectives  To provide for the continued corporate existence of the South African Post Office and its subsidiaries  To provide for its governance and staff  To provide for the separation of accounts between reserved and unreserved postal services Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 5

6. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement  The Bill is divided into 32 Clauses.  Clause 1: This clause provides for the definition of words used in the Act  Clause 2: Sets forth the purpose of the Act i.e. to provide for the continued existence of the company, the governance of the Post Office; the separation of accounts of the Post Office between reserved and unreserved postal services; ensure the provision of universal, accessible, reliable and affordable postal services; 6

7. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 2 continues : to ensure the provision of a wide range of postal services in the interest of the economic growth and the development of the Republic; and encourage the development of human resources and capacity building within the postal industry especially among historically disadvantaged groups 7

8. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 3: Provides for the continued existence of the Post Office which is deemed to be a public company and still known as the South African Post Office Limited, and the protection of existing rights, the continued existence of the Board  Clause 4: Makes provision for SAPO to account separately for the reserved and unreserved postal services  Clause 5: Outlines duties of Post Office to realize its objectives as set out in clause 2 of the Bill 8

9. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 6: Outlines powers of the Post Office which are subject to the provisions of the Public Finance Management Act  Clause 7: Provides for the Post Office to annually by a date determined by the Minister conclude a performance agreement with the Minister  Clause 8: Empowers the Minister with the concurrence of the Minister of Finance, to annually grant financial support to the Post Office in respect of normal expenditure 9

10. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 9: Post Office to be governed by the Board of Directors. Board shall consist of three executive members, and not more than thirteen non executive members, one of whom must be the managing director of the Postbank by virtue of his or her office. Chairperson and the Deputy Chairperson must be appointed by the Minister from non-executive board members 10

11. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 10: Outlines the functions of the Board. Board must inter alia give effect to the corporate plan as contemplated under section 52 of the Public Finance Management Act  Clause 11:Provides for the criteria for disqualification from membership of the Board  Clause 12:Outlines the procedure to be followed for appointing non-executive members of the Board 11

12. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 13:Makes provision for the procedure to be followed by non- executive member wishing to resign from the Board and provide for the circumstances that Minister may remove a member from office  Clause 14: Provides for fiduciary duties and disclosure. A member of the Board must for example declare whether or not he/she has any direct or indirect financial interest which could reasonably be expected to compromise the Board in the performance of its functions 12

13. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 15: Board may appoint committees from time to time. This clause provides for matters relevant to Committees such as their composition and powers.  Clause 16: Provides for the delegation and assignment of functions by the Board.  Clause 17: Provides for the appointment of the chief executive officer, chief financial officer and the chief operating officer by the Board with the approval of the Minister 13

14. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 18:Provides conditions of appointment of chief executive officer, chief financial officer and chief operating officer which is subject to conclusion of annual performance contract with the Post Office; they are appointed for a term not exceeding five years and may be reappointed for one additional term subject to the approval of the Minister  Clause 19: Provides for the termination of employment of chief executive officer, chief financial officer and chief operating officer and matters relevant thereto 14

15. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 20: Provides for the appointment of an acting chief executive officer, chief financial officer or chief operating officer, and the condition in which the Board may appoint employee to act  Clause 21: Provides for the delegation by chief executive officer, chief financial officer or chief operating officer, and the condition in which such delegation can be executed  Clause 22: Board to determine the staff establishment necessary to enable the Post Office to perform its functions 15

16. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 23: Provides for the application of the Public Finance Management Act to the Post Office  Clause 24:Empowers the Minister to appoint a person to investigate the affairs or financial position of the Post Office and compliance with this Act and provides for the provision of information  Clause 25:Provides for intervention measures enabling the Minister to direct the Post Office, to take action in cases such as mismanagement including the circumstances under which the Minister may intervene 16

17. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 26: This clause seeks to provide for the limitation of the liability of the Post Office and its employees  Clause 27: Provides for the application of Companies Act to Post Office  Clause 28: Provides for a mechanism to declare certain provisions of Companies Act to be inapplicable to Post Office  Clause 29: This clause empowers the Minister to make regulations to improve the administration of the Act 17

18. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Arrangement..  Clause 30: Outlines offences and penalties such as the unauthorized use of the name or logo of the Post Office  Clause 31: Provides for the repeal and amendment of other laws, more specifically all the amendments required to the Post Office Act, 1958.  Clause 32: Provides for this Act to be called the South African Post Office Act, 2010 and to come into operation on a date to be fixed by the Minister by notice in the Gazette 18

19. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Consultation  The Bill was widely consulted on and consultation workshops held in all nine provinces 19

20. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Conclusion  The Department believes that the Bill provides an important statutory framework for the Post Office in accordance with the accepted practice for SOE’s, including clear requirements. The Bill promotes transparency and accountability, and improves the oversight role over the Post Office 20

21. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development THANK YOU 21