Transport Department committed to good governance

Friday, June 23, 2017

Pretoria – Transport Minister Joe Maswanganyi says he is committed to ensuring good governance systems are in place in the State-owned enterprises (SOEs) that fall under his department.  

The Minister on Friday briefed the media in Pretoria on the performance of 12 SOEs in his portfolio, most of which show an improvement from the 2014/15 financial year. 

To sustain this upward trajectory in performance, Minister Maswanganyi said financial analysis will be improved by enhancing oversight capacity. 

"Furthermore, the flow of information to the department will be improved by mandatory, regular and detailed reporting from all the SOEs,” Minister Maswanganyi said.

The Department of Transport will play a leadership and catalytic role in the transformation and development of its SOEs. This, the Minister said, will be achieved through transparent and development-focused procurement processes, gender parity and progression and targeted skills development.

“Through viable financial principles, we will measure how well our SOEs deliver on their core mandates, as well as meeting their determined developmental objectives.

“The principles will take into account the fact that in some SOEs, viability will have a bottom line or commercial orientation, while in some SOEs, other attributes will have equal or even more importance in determining viability and adequate funding will be necessary to ensure viability,” Minister Maswanganyi said.  

SOE performance

The Minister said the South African National Road Agency (SANRAL) in 2015/16 received an unqualified audit report from the Office of the Auditor General for the 13th year in succession and attained 99% of its performance target.

“The Road Accident Fund (RAF), in the period under review, managed to reduce the number of outstanding claims to 217 182 by 31 March 2016, despite a sharp increase in registered claims.

“It is encouraging to note that despite the obvious challenges affecting both the country and the RAF in particular, there was an improvement in performance, with the organisation fulfilling 90% of its APP [Annual Performance Plan] targets,” he said.

The Road Traffic Management Corporation (RTMC) achieved 92% of its performance targets in the 2015/16 financial year. This was due to the entity’s rigorous focus on its goals throughout the year and the intensified road safety and law enforcement programmes supported by robust marketing campaigns.

The South African Civil Aviation Authority (SAACA) attained, for the second year in a row, 100% of the targets set for the 2015/16 financial year.

The Airports Company South Africa (ACSA) recorded 96%, up from the 89% achieved in the previous year, as stipulated in the Shareholders’ Compact.

The Passenger Rail Agency of South Africa (PRASA) achieved 45% in 2015/16 of its pre-determined objectives, compared to 35% in the previous year. The organisation, however, only partially met 10% of its objectives during the 2015/16 financial year.

The Rail Safety Regulator (RSR) achieved over 90% of the annual targets in the 2015/16 financial year.

Meanwhile, the South African Maritime Safety Authority (SAMSA) performance for the 2015/16 financial year is at 70.5%.

The Air Traffic and Navigation Services managed to achieve 33 of its 43 planned targets. The company achieved a 76.7% performance level, with it being 73.6% the previous financial year. –

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