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10 June 2008

It is with humility that we commend to you Vote 4 of Home Affairs.

Most probably, this is the last Budget Vote we present to you before the end of our present term. It is therefore with a sense of duty and solemnity that we stand here before you to present our plans for the financial year that is now already upon us.

This Vote that we present today is a reflection of the difficult journey we have traversed during the past four years, as well as the choices we made during that time. On this Vote, therefore, we cast our eyes into the future, confident of success ahead.

The question of course arises whether the turnaround blueprint we are implementing is anything more than a paper tiger! For us, the distinguishing feature of this turnaround programme is that:
* It derives from a scientific and extensive, and yet brutally honest, diagnosis of the Department;
* It is predicated on a sound new vision and design and thus is not limited to tinkering with the status quo and is therefore not reformist;
* It is supported by an extensive turnaround team of experts whose sole mandate is to ensure that the revolutionary changes envisaged succeed and get embedded into the Department as the new of doing things;
* It enjoys the wholehearted support of the entire administration;
* It has a dedicated budget allocation to ensure it succeeds; and
* It enjoys the political support of the Executive.

In this way, we are certain that this programme has all the political and administrative support it requires to yield the desired outcomes. We know that the cynics and critics will continue to laugh at this vision and doubt whether it is authentic and will succeed. But, of this we are certain that there is no turning back now; we will succeed.

Youth development

During this, the youth month, we are happy to report that we have continued to seek ways to empower the youth, supporting the government's agenda for youth and skills development.

For 2008/09, 200 internship and 550 National Youth Service participants will be recruited, trained and placed throughout the Department. Working with Umsobomvu Youth Fund, the National Youth Commission, the Departmental mentors and other partners, we are developing further programmes to empower these youth through regular training and other capacity building programmes.

As a concrete commitment to this partnership, Umsobomvu Youth Fund pledged R4 million towards these programmes and this amount will be released after the Memorandum of Understanding between the two parties has been signed.

We are further developing empowerment and capacity building programmes for the youth in the Department within the context of the turnaround programme. This should assist young people in the Department to understand and participate in the turnaround programme, as well as to develop their leadership capabilities.

Films and Publications Board (FPB)

During this financial year, a total of R50,9 million has been budgeted for the FPB.

With regard to the governance and other legal challenges arising out of the legislation that we had previously raised, we are pleased that the Amendment Bill is now close to finality so that we can hasten to improve the effectives of the FPB.

This Bill will come into effect when both the Sexual Offences as well as the Children's Acts have already been passed, thus increasing our capacity and making our endeavours to protect children from abuse even more effective. While the disjuncture between the budget of the FPB and its ever growing mandate and demands remains a challenge, creative ways will continue to be found to enable the organisation to discharge its responsibilities.

The significance of this is underscored by the survey results the FPB has undertaken in the past two years which have highlighted serious challenges faced by the children. There is growing demand to protect children from sexual exploitation as well as from exposure to illicit material. Our capacity to fight this crime is constrained by a whole set of reasons. It is important that we should try to accumulate as much information as possible about the crime of child pornography, the threat of technology to children as well as the exposure of pornography to children. We must not delude ourselves: staggering numbers of children in South Africa are at risk of or are being exposed to illicit material as a result of their access to the internet and mobile phones. Under the able leadership of the Honourable Annelize van Wyk, the Ministerial Task Team on Child Pornography has worked hard to try to coordinate our efforts and lead the campaign to combat this crime.

As the phenomenon of internet child abuse is recent, research data is limited. No prior studies have been conducted in South Africa. The extent of the problem in South Africa is not known, and it is important to stress that the full reality will never be known, given the clandestine nature of the crime. However, some estimates claim that there are more than 1 million child sexual abuse images available on the internet. This figure is escalating given that unprecedented numbers of people now have private access to the internet which has made it much easier to distribute these images and to enter child chat rooms to groom children for abusive acts.

Children with internet and high end cell phones are more vulnerable to abuse. What is disconcerting is that in most cases children access and use these technologies without supervision. Great attention in the coming financial year will be focused on addressing these problems, bearing in mind though that technology continues to advance and to be accessible to increasing amounts of people.

The FPB has however intensified its stakeholder relations programme with law enforcement agencies in combating child pornography on and off line. These partnerships include the Youth Research Unit of the Bureau of Market Research at the University of South Africa (Unisa) where various research projects will be done about the new media used by the youth. Above all else, however, is the urgent need to intensify the public education and awareness programme targeting parents, teachers and children themselves about the potential harm of technology to children and how they can learn to use it responsibly.

On the 1st and 2nd of June this year, we held the National Indaba on preventing the sexual abuse and exploitation of children and combating child pornography which was attended by various stakeholders. The Indaba, amongst other things, expressed alarm at the escalation of child pornography, especially through mobile phones in schools as well as the lack of integrated approach among the child protection services. The Declaration which constitutes the basis for the Programme of Action for the next two years is available on the website of Home Affairs and the FPB. It shall further be distributed to the participants and other government departments.

On 1 July 2008, the FPB will launch a hotline website service that will afford members of the public an online opportunity anonymously to report any unsolicited child pornography or sexual abuse images discovered accidentally on the internet. This may also include child-grooming activities hosted in the chat rooms and other online social networks. The hotline will be available 24 hours a day and seven days a week. Our internet content analysts will assess the contents of any reported website and will forward a detailed report to the law enforcement agencies in South Africa for further action.

The FPB is also looking to join a network of internet hotlines worldwide by becoming a member of the International Association of Internet Hotlines (INHOPE). This will assist it to exchange information about illegal content with other INHOPE members worldwide thereby enhancing the capability to respond to reports of suspected illegal websites. The international networking with INHOPE will allow us to take action against images of child sexual abuse images on the internet which are hosted outside South Africa.

The website, a first of its kind on the African continent, is also intended to alert Internet Service Providers of criminal activities, relating to child pornography and or sexual abuse images hosted on their servers or distributed through their infrastructure.

During the 2008/09 financial year, we will:
* Implement the National Indaba Programme of Action;
* Implement the Amendment Bill once it has been finally passed into law;
* Strengthen the capacity and capability at all levels within the Board, focusing on the people;
* Enhance compliance with corporate governance principles by implementing an FPB developed corporate governance framework aligned to appropriate resources;
* Enhance broader stakeholder participation by developing and implementing a stakeholder management strategy in line with the new vision and increased mandate;
* Enhance international cooperation on child pornography through some of the measures we have outlined above, forging strategic partnerships with similarly mandated organisations and benchmarking with other classification authorities;
* Position the FPB properly in line with the five year strategy and proposed legislative amendments that impact positively on the mandate of the FPB;
* Develop a back-up and data recovery infrastructure for the organisation; and
* Develop infrastructure to support the Knowledge Information Management (KIM) strategy.

Government Printing Works (GPW)

Because the GPW is a trading account and hence generates its own revenue, it has been allocated R135 222 for 2008/09.

The security printing capabilities of the GPW in the South African scenario has given it strong confidence of its ability to provide security printing service in the Southern African Development Community (SADC). We have provided security printing services for the Kingdom of Lesotho, the government of Malawi and the Governments of Mozambique and Algeria have expressed an interest in having their ID's and passports printed at GPW.

The GPW has procured the state of the art equipment to further enhance the security of face value documents as well as travel documents plus those it will be producing in the region. In order to take advantage of this competitive and niche market growing in the continent, GPW is gearing itself to meet the 2010 deadline set by ICAO for countries to be compliant in the issuance of Machine Readable Travel Documents (MRTD) by aggressively engaging with some of the countries whose passports do not meet this criterion to print passports on their behalf.

It should be noted that the state of the art machinery which will be commissioned during the course of this year has both capabilities of producing the MRTD and e-MRTD (e-passport).

We are still pursuing the objective to secure a new facility that would be appropriate for high security printing. Whilst there have been delays in this regard, we are still working hard to realise this objective. We have completed the needs analysis; site analysis and procurement model. However, thus far, the Department of Public Works (DPW) has helped us secure alternative 'temporary' location to house its passport manufacturing machine. It may eventually that this becomes our permanent home.

During the past year, we strengthened our strategic partnerships and research capabilities, working with SAPPI and the SA Banknote. Once the new site is developed we intend to establish a forensic laboratory to conduct limited analysis of all face value documents GPW produces on behalf of the state.

During last year's Budget Vote, we indicated that we were on the verge of finalising the GPW Conversion model and strategy. We have been meticulous in this regard, careful not to adopt a model that would end in inevitable failure. We must emphasise it here that the conversion of the GPW is not intended for the purpose to increase the salaries of executive managers, but to make the organisation efficient and effective in the discharge of its mandate as a state security printing agency.

Today, we wish to report to you that we are closest than we have ever been towards concluding this process. A feasible business case can be made for the corporatisation of GPW to a Schedule 3B Public Entity over a five-year period. There are, however, a number of critical success factors, assumptions and risks associated with the implementation of the proposed solution. First, GPW must undertake to strengthen its internal capacity and seek an implementation partner to effectively prepare for the longer-term strategy. In the shorter term, GPW needs assistance in the corporatisation process of becoming a Schedule 3B Public Entity. The medium term focus will be the restructuring of its internal operations and to become an efficient and effective printing service provider for Government customers within South Africa. Once stabilised GPW must focus on the longer term goals and expand its operations into the SADC market.

In 2007, GPW made a presentation of its business case to a joint Department of Public Service and Administration (DPSA) and National Treasury (NT) panel to solicit their opinions and criticism of the strategy.

In order to fast track this process, the Ministry solicited the Turnaround Project to attach a consultant to assist to strengthen the business case and look at issues and gaps which could delay the approval of the conversion process. Subsequent engagement with the DPSA and NT has resulted in the proposal that we convert the GPW into a Government Component, in terms of the legislation approved on the 1st April 2008. This was based on the Joint Panel's view that the GPW's state of readiness was not at a point of a full and successful conversion. The Government Component would provide GPW with an appropriate model to achieve its objectives but in a phased and sustainable manner.

This new model will allow GPW to achieve the ultimate Schedule 3B goal over a period of time as it consolidates its financial viability. In order to ensure successful conversion, GPW's vision and core business must be clearly encapsulated, that it will be the State Security Printer by mandate and statute. The business case being crafted will be aligned with this new model and vision.

Over the next five years, GPW will generate approximately R1 billion revenue in printing that includes passports, identity documents, legislative documents, examination papers, revenue stamps and other security materials. In providing these printing services, especially security-related documents, GPW will offer a valuable service and operate as a diplomat between Government and the public of South Africa.

In order for GPW to achieve their objectives and deliver on its vision, it has no choice but to optimise the efficiencies of the organisation and make substantial changes in its policies, procedures and business processes. It must improve its services and marketing strategy, internal operations, human resources, machinery and equipment, materials and particularly its finances. By doing so, it will be able to focus on its core business, operating as a self-funded entity and provide value to the economy of South Africa.

The transformation of GPW must therefore be dealt with in a very responsible and prudent manner, taking into account the requirements of Government whilst at the same time considering the interest of the public and the important service rendered to South Africa.

The following has accordingly been accomplished:
* The adjustment of the business case (the feasibility study);
* Inter-Departmental Consultation involving the Departments of Home Affairs, Public Service and Administration and National Treasury; and
* The publishing of the Establishment Notices.

What is now outstanding is:
* The Joint Evaluation Panel to evaluate the progress and determine if we can finalise it;
* The Inter-Ministerial Consultation involving the Ministers of the relevant Departments;
* A briefing to the Executive through a Memorandum; and
* The publishing of the Notice of Operation of GPW by 30 June 2008.

During this financial year, the GPW will consolidate the transformation process it began to embark upon in the previous year. These shall include:
* Completing the establishment of the Government Component;
* Proceeding with the technology upgrade, upgrading our machinery and IT systems;
* Implementing the Marketing and Alignment Strategy focusing on both retaining current clients as well as developing new local and regional markets; and
* Continuing to seek new premises to ensure operational effectiveness.

To implement all these plans will take a lot of effort, especially given that this is a difficult year during which we shall both be embedding and implementing the turnaround as well as beginning preparations for the 4th General Elections.

We trust that the Portfolio Committee shall support us in this endeavour.

I wish to thank the Minister, Director-General, the CEOs of both the GPW and FPB, as well as all the Officials of he Minisry and the Department as a whole for their support, tolerating our demands. I must also thank the Chairperson and Deputy Chairperson of the GPW, and the Honourable Annelize van Wyk and members of her Team for their efforts.

Thank you.

Issued by: Department of Home Affairs
10 June 2008
Source: Department of Home Affairs (http://www.dha.gov.za)