Speaking notes by the Minister of Transport, Ms Dipuo Peters, MP, on the Annual General Meeting of Railway Safety Regulator (RSR) at Lake Buena Vista Building, Centurion
Acting Chairperson of the Board,
Chief Executive Officer of RSR,
Board Members of RSR,
Officials from the department,
Distinguished guests,
Ladies and gentlemen.
Tomorrow, 24th September, we in South Africa will be celebrating or commemorating Heritage Day. We have a rich heritage as South Africans and it is our pride. We are reminded that as part of our 20th Year of a free and democratic South Africa, we need to tell our stories that will enhance the programmes of taking our nation forward.
We also take pride in our Constitution which has enabled us to establish a non-racial, non-sexist democratic state where the rights and dignity of every citizen, are respected. Our commitment to serve the citizens is reflected in our policies and legislation. In 2012, the National Development Plan was approved as Vision 2030 for South Africa we want.
Through the National Development Plan the government reconfirms its commitment to service delivery taking into account the development of critical infrastructure. The transport infrastructure is viewed as a critical infrastructure that enables socio-economic growth domestically and globally.
The key mandate of the Department of Transport is to ensure that the transport infrastructures are safe, affordable and reliable at all times. As such, the Railway Safety Regulator has a fundamental role to play in the realisation of our mandate. The Railway Safety Regulator has to ensure that the millions of passengers that commute by trains reach their destination safely, through an effective regulatory framework.
Since 1994 various policies, legislation and programmes have been developed to overcome our transport challenges. As we celebrate our 20 years of freedom as well as the Public Service month, the exceptional track record of the RSR in contributing to safe travel by train has to be acknowledged.
We also need to acknowledge RSR effort to promote regional integration through the harmonization of railway safety standards in Southern Africa Development Community (SADC). Although rail is the ideal mode of transport for large, uniform freight travelling further than 400 km, about 89% of all freight (measured by total tonnes) is conveyed by road.
Our responsibility as government is to provide suitable means for people and goods to move as efficiently, safely and cost effectively as possible. Mobility broadens social and economic access, alleviating poverty.
Corporate Governance
Ladies and gentlemen,
The Railway Safety Regulator (RSR) was established in terms of the provisions of the National Railway Safety Regulator Act of 2002. The RSR has been mandated to ensure a safe railway environment as well as to oversee and promote safe railway operations through appropriate support, monitoring and enforcement of an enabling regulatory framework. During the year under review the entity has complied with good corporate governance and ethical standards in discharging its mandate.
The Board ensured that all committees, as required by the Act, were in place and were fully functional.
Thus, in 2013/14, the Board has succeeded in establishing the following important governance framework:
- An Integrated Risk Management Strategy;
- A Fraud and Corruption Prevention Policy and Strategy; and
- An Information and Communication Technology Governance Framework.
Whilst we commend the Board for this accomplishment, we are also conscious of the number of meetings which you held which reflects lack of proper planning and strategy to focus on core mandate.
Boards that sit frequently does at times encroach on operational areas. The board must avoid the temptation of unnecessary Special board meetings. The Exco must plan well so as to avoid overloading the board with matters that they should have handled and must of necessity report on work done.
Performance Results
Out of 22 targets planned for 2013/14, the entity has achieved 17 targets. This implies an overall performance of 77%.
The RSR has exceeded its planned target in three performance areas. More safety audits were conducted, than planned. 30 investigations were completed against the planned target of 20. And, 92% of request for technology reviews were accomplished compared to the target of 85%.
Other achievements worth noting, in 2013/14, are:
- 36 operators have been issued with penalties for non-compliance,
- 2 Boards of Inquiry regarding the Cor Del Fos-Kalafong collision and the Hectorspruit collision have been conducted
- RSR donated a re-modelled Science Lab to the Noupoort Combined School
- Based on its investigations into train collisions, RSR introduced safer radio mode of communication between Train Control Officers and train drivers.
Furthermore the RSR played a major advisory role in:
- PRASA’s modernisation programme
- Transnet Freight Rail Market Demand Strategy rail projects
- The development and commissioning of the country’s first level crossings to be fitted with road traffic lights.
We acclaim the Railway Safety Regulator its achievements.
Challenges
The planned targets that have not been fulfilled in 2013/14 include:
- The development of certain rail safety regulations and rail safety standards
- The implementation of the Broad Based Black Economic Empowerment strategy
- The establishment of a Customer Care call centre
- The implementation of the communication strategy, namely a Railway Safety conference in 2013/14.
Furthermore it is observed that the entity does not have sufficient skills capacity to manage the development and implementation of large ICT projects. The recruitment of adequate skills and expertise is indeed a matter of concern from both the Audit Committee and the Department. It is imperative that management ensures that there is suitable human resource capacity to deliver on its strategic plan.
The Department is concerned that the annual report made no mention of the human resource recruitment and supply chain irregularities that are currently under review by the Office of the Public Protector. The entity is invited to brief the Department on this subject.
BBBEE and Women Empowerment
In the 2014/15 report, compliance with the B-BBEE requirements of skills development, enterprise development and socio-economic development needs to be spelled out, for a better understanding of the progress being made.
The report should also indicate the percentage of services that the entity procured from women enterprises, the initiatives in place to empower the youths and the breakdown of women employed in management and professional levels at RSR.
The public entities are encouraged to establish corporate social investment programmes that would uplift the depressed communities through job creation, skills development and creation of SMMEs.
Regarding women empowerment, our young girls have to be given an opportunity to become the future signalling engineers, train traffic controller, railway engineers, maintenance technicians and train drivers.
This can be done in conjunction with PRASA, Transnet and the Gautrain team. Investment in the education of our young girls amounts to investment in a gender equitable society.
Financial Results
The entity’s total revenue in 2013/14 financial year increased by 41% compared to last year’s revenue. Issuing of permit fees contributed R57, 9 million to the total revenue whilst penalties to non-compliant operators added R5,5 million to the revenue.
Compared to 2012/13, the government grant increased by 18% in 2013/14, following inflationary adjustment and annual increment as per the Medium Term Expenditure Framework.
On the other hand, the operating expenditure in 2013/14 surged by 32% compared to the previous financial year. A key factor behind this increase is the staff cost that grew by 21%. The costs of operating activities grew by a staggering 94% and the administrative expenses went up by 29% in 2013/14.
It is observed that despite the rise in the operating expenditure, the entity incurred a net surplus of R2,9 million in 2013/14. This is a remarkable achievement when compared to the deficit of R3,3 million in the last financial year.
We note that no irregular expenditure was incurred during the year under review. We congratulate the RSR for receiving an unqualified opinion from the Auditor General.
Ladies and gentlemen,
I welcome you to the Annual General Meeting of the Railway Safety Regulator.
Thank you!
