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2012I 13

MAYIBUYE TRANSPORT CORPORATION


HEAD OFFICE
Corner of Mdantsane Access Road and Drummond Road
East London Reeston 5257
Phone: 043 745 2582
Fax: 043 745 2152
www.mayibuyetransport.co.za
MAYIBUYE TRANSPORT CORPORATION
REGIONAL DEPOTS
REESTON
( HEAD OFFICE)
Phone: 043 745 2582
Fax: 043 745 2152
Reeston@mtcec.co.za
ZWELITSHA
Phone: 040 654 1351
Fax: 040 655 1907
Zwelitsha@mtcec.co.za
ALICE
Phone: 040 653 1371
Fax: 040 653 0003
Alice@mtcec.co.za
QUEENSTOWN
Phone: 045 858 8826
Fax: 045 858 8290
Queenstown@mtcec.co.za
PR213/2013
ISBN: 978-0-621-42032-6
2012I 13
Acronyms and Abbreviations 03
Presentation of the Mayibuye Transport Corporation Annual Report for 2012/2013 04
CORPORATE PROFILE 06
Vision of MTC 07
Mission of MTC 07
Core Values 08
MTCs Legislative and Regulatory Framework 08
Policy Themes that inform Transport 09
Constitutional Mandate 10
Legislative Mandates 10
BUSINESS REPORTS 14
Message from the Chairperson 15
Overview by the Chief Executive ofcer 17
Overview of the Service Delivery Environment for 2012/2013 19
Areas of Operation 21
Revenue 21
Bus allocation per Depot for the fnancial year 22
Operating Grant-in-Aid 23
Financial Statistics for the fve years Ending March 2013 23
PROGRAMME PERFORMANCE 26
Overall Performance 28
Programme 1: Ofce of the CEO 29
Programme 2: Ofce of Strategic Management 31
Programme 3: Finance 39
Programme 4: Human Resources 45
Programme 5: Engineering 49
Programme 6: Operations 53
ANNUAL FINANCIAL STATEMENTS 60
Statement of Responsibility by the Accounting Authority For the 12 months ended 31 March 2013 61
Report of the Accounting Authority For the 12 months ended 31 March 2013 62
Corporate Governance Statement 65
Report of the Audit Committee 67
Report of the Auditor General 69
Report of Financial Position 73
Statement of Financial Performance 74
Statement of Changes in Equity 75
Cash Flow Statement 76
Accounting Policies For the 12 months ended 31 March 2013 79
Notes on the Annual Financial Statement For the 12 months ended 31 March 2013 83
HUMAN RESOURCES MANAGEMENT 94
Report by the Executive Manager: Human Resources 95
TABLE OF
CONTENTS
2012I 13
PAGE
01
DOCUMENT
WAY
FINDER
01
PAGE 06
CORPORATE
PROFILE
VI SI ON
MI SSI ON
VALUES
02
PAGE 14
BUSINESS
REPORTS
MESSAGE
FROM THE
CHAI RPERSON
OVERVI EW
BY THE CHI EF
EXECUTI VE
OFFI CER
03
PAGE 26
PROGRAMME
PERFORMANCE
05
PAGE 94
HR MANAGEMENT
REPORT
04
PAGE 60
ANNUAL
FINANCIAL
STATEMENTS
TABLE OF
CONTENTS
PAGE
02
AFS Annual Financial Statements
AG Auditor-General
AO Accounting Ofcer
APP Annual Performance Plan
ASGISA Accelerated and Shared Growth Initiative
for SA
BEE Black Economic Empowerment
CCA Ciskei Corporations Act of 1990
CEO Chief Executive Ofcer
CFO Chief Financial Ofcer
COS Certifcate of Fitness
CSI Corporate Social Investment
CSO Chief Strategy Ofcer
DoRA Division of Revenue Act
DOT Department of Transport
ECPA Eastern Cape Provincial Administration
EWP Employee Wellness Policy
EXCO Executive Council
FMS Fleet Management System
GRAP Generally Recognised Accounting
Practices
GSDE Guide to Service Delivery Excellence
HDI Historically Disadvantaged Individuals
HoD Head of Department
HRD Human Resource Development
HRM Human Resource Management
IA Internal Audit
IBAC Interim Bid Advisory Committee
IFMS Integrated Financial Management
Systems
IT Information Technology
IYM In-Year-Monitoring
MEC Member of the Executive Council
MTC Mayibuye Transport Corporation
MTEF Medium Term Expenditure Framework
MTSF Medium Term Strategic Framework
NTR National Treasury Regulations
OD Organisational Development
OHSA Occupational Health and Safety Act
PFMA Public Finance Management Act
PGDP Provincial Growth and Development Plan
PMDS Performance Management Development
System
SABEA South African Bus Employers
Association
SABOA South African Bus Operators System
SARPBAC South African Road Passenger
Bargaining Council
SCM Supply Chain Management
SCOPA Standing Committee on Public Accounts
SLA Service Level Agreement
SM Senior Management
SMME Small Medium Micro Enterprise
LIST OF
ACCRONYMS
PAGE
03
PRESENTATION OF THE MAYIBUYE TRANSPORT CORPORATION
ANNUAL REPORT FOR 2012/2013
Percival Lusapo
Camagu Maseti
Chairperson
Jonga Sydney
Nyengane
Deputy-Chairperson
Luthando Richmond
Mbinda
CEO of MTC Ex-Ofcio
Board Member
Pumelele Pazima
Balfour
Board Member
Angela Margaret
Church
Board member
Andr Joubert De Vries
Board Member,
Department of
Transport
Representative
Sindiswa Griselda
Gomba
Alternate Board
Member
Portia Ndileka
Eumera Loyilane
Board Member
Ruth Nalumaga
Luzuka
Board member
Agreement Sizwe
Mandla
Board Member and
Organised Labour
Representative
Dominic
Lebohang Qhali
Board Member and
Provincial Treasury
Representative
Mzwandile Vaaiboom
Board Member
In terms of the requirements of section 55(1) of the Public
Finance Management Act, Act 1 of 1999, the Accounting
Authority herewith presents the Annual Report of the
Mayibuye Transport Corporation (MTC), for the period
1 April 2012 to 31 March 2013, to the Executive Authority,
Department of Transport of the Eastern Cape. We declare
that the Annual Report fairly presents the state of afairs
of MTC, its business, fnancial results, performance
against predetermined objectives and fnancial position
as at the end of the fnancial period under review.
PAGE
04
2012I 13
PAGE
05
01
CORPORATE
PROFILE
VI SI ON
MI SSI ON
VALUES
PAGE
06
VISION OF MTC
MTCS VISION IS TO BE A LEADING QUALITY PUBLIC TRANSPORT SERVICE PROVIDER.
MISSION OF MTC
THE MISSION OF MTC, TOGETHER WITH STRATEGIC PARTNERS, WILL ENABLE POOR COMMUNITIES TO ACCESS
RESOURCES AND CONTINUOUSLY IMPROVE THEIR QUALITY OF LIFE.
MTC endeavours to maintain the highest possible standards in the provision of an efective and efcient transport service
to communities in the Province on selected routes by:
Providing an enabling environment
conducive to the provision of an
afordable, convenient and safe mode
of public transport
Keeping abreast of trends and
developments in the sector to meet
changing customer and stakeholder
needs; and
Creating strategies that lend
support to socio-economic growth in
the Eastern Cape in all MTCs areas
of operation.
CORPORATE
PROFILE
VISION &
MISSION
STATEMENTS
Mayibuye Transport Corporation is a registered entity in
terms of the Ciskei Act 16 of 1981 by Government Decree
number 89 of 1990. MTC is a schedule 3D public entity
in terms of the Public Finance Management Act. MTC is
currently considered a public entity and its shareholder is
the Eastern Cape Department of Transport.
Detailed below are the Vision, Mission and Values
of Mayibuye Transport Corporation. It is these key
components that fuel our commitment to the people of
the Eastern Cape.
ABOUT
MAYIBUYE
TRANSPORT
PAGE
07
These values are the cornerstone of MTCs organisational culture and its way of doing the business of public transport.
MTCS LEGISLATIVE AND REGULATORY FRAMEWORK
CORE
VALUES
MTC IS GUIDED BY AND COMMITTED
TO THE FOLLOWING VALUES:
Integrity
Work ethically, honestly and transparently.
Consultation
Create an enabling environment for community and stakeholder participation.
Innovation
Strive towards radical and revolutionary changes in thinking, services, processes or organisation.
Accountability
Act honourably and take ownership of our actions and the outcomes thereof.
Government has approved a Protocol on Corporate
Governance in the Public Sector, which is to be read
in conjunction with the King Report. The protocol is
applicable to all public entities listed in Schedule 2, 3B
and D of the PFMA. It is intended to provide guidance on
how to achieve the socio-politico-economic objectives
of government; good governance in the public sector;
freedom to manage and efective accountability of both
fnancial and non-fnancial matters.
MTC regards good corporate governance as integral
to good performance. It is critical for MTC to fulfl its
mandate in a manner that is consistent with best
practices and with regard to accountability, transparency,
fairness and responsibility. For this reason, MTC
subscribes to the principles of good governance on an
on-going basis as laid down by the King Report and the
Protocol on Good Governance in the Public Sector. MTC
undertakes to maintain efective governance and the
highest standard of ethics business operations.
MTC executes its mandate in accordance with its
constitutive documents and any applicable legislation
as refected in the Corporate Plan. Its Board exercises its
fduciary duties in pursuance of strategic objectives as
set out in the Corporate Plan. Furthermore, the Board
ensures that targets are met, monitored and reported on
a regular basis.
PAGE
08
National Land Transport Policy
The Policy focuses on subsidised
marginalised public transport users,
especially those with poor access to
socio-economic activities.
National Land Transport
Strategic Framework
Integration of land transport
functions with land use and
economic planning and
development. To ensure that
transport demand is managed and
investments are used efectively.
The framework provides for rural
transport and as such MTC is
committed to ensuring adequate
access of transport to rural areas
within its regions of operations.
Final Draft National Scholar
Transport Policy, 2009
The policy provides a single
framework and an enabling
environment for government and
other stakeholders to address
scholar transport challenges. It also
outlines the implementation
framework for scholar transport which
will assist government and relevant
stakeholders to efectively render
an improved scholar transport
service throughout the country.
Moving South Africa: A Transport
Strategy for 2020 (1999)
By 2020, transport in South
Africa will meet the needs of
freight and passenger customers
for accessible, afordable, safe,
frequent, high quality, reliable,
efcient and seamless transport
operations and infrastructure.
It will do so in a constantly
upgrading, innovative, fexible and
economically and environmentally
sustainable manner. In doing so,
transport will support and enable
government strategies, particularly
those for growth, development,
redistribution, employment creation
and social integration, both in South
Africa and the Southern Africa region.
The Moving South Africa project
(MSA) provides a transport strategy
for the country over the next 20
years. It informs of the strategic
action that extends the short to
medium-term policy formulation
documented in the Transport White
Paper into a long-term strategic
formulation embodying the sets of
trade-ofs and choices necessary to
realise the vision as set out in the
White Paper which is provide safe,
reliable, efective, efcient and fully
integrated transport operations and
infrastructure which will best meet
the needs of freight and passenger
customers at improving levels of
service and cost in a fashion which
supports government strategies for
economic and social development
whilst being environmentally and
economically sustainable.
Provincial Growth and Development
Plan (PGDP), 2005
The aims of the PGDP are to:
Develop a framework for the future
direction of policy and strategy
development;
Outline strategic interventions,
goals and targets to direct
development and planning
initiatives; and;
The PGDP provides strategic
direction based on key provincial
priorities that address the social
needs of the people and the
realisation of the economic growth
potential of the province.
Rural Transport Strategy for
South Africa 2007
The rural transport strategy is
seen as a stimulant to social
development and economic growth
of rural areas, which would in turn
grow the economic resource of
district municipalities. The strategy
calls for the Rural Transport Service;
this includes services provided by
users themselves (e.g. head loading,
private vehicular transport) and by
operators of all modes of motorised
and non-motorised transport, and
the promotion of non-motorised and
intermediate modes of transport.
The Medium Term Strategic
Framework (2009-2014)
The MTSF is a statement of intent
identifying the development
challenges facing South Africa and
outlining the medium-term strategy
for improvements in the conditions
of life of South Africans and for our
enhanced contribution to the cause
of building a better world.
Road Infrastructure Strategic
Framework for South Africa
(RISFSA), 2005 by the National
Department of Transport.
Good roads play a signifcant role
in economic development. Classic
economic theory suggests that
productive infrastructure, including
road and transport assets, is one
of several key preconditions for
national economic growth. The
theory holds that, by investing in
assets like bridges, roads ports, or
even telephone lines, a nation can
structure development by reducing
transport and communications
costs, thereby facilitating further
trade and creation of wealth.
Indeed, transport is generally seen
POLICY
THEMES
THAT INFORM
TRANSPORT
PAGE
09
as an engine of growth and a
guarantor of national integration,
both internally and with the external
global economy
White Paper on National
Transport (1996)
The policy document provides a
basis for transport to play a more
strategic role in social development
and economic growth. It outlines six
broad goals which seek to achieve the
vision for transport in South Africa:

Provide safe, reliable, efective,
efcient, and fully integrated
transport operations and
infrastructure which will best meet
the needs of freight and passenger
customers at proving levels of
service and cost in a fashion which
supports government strategies for
economic and social development
whilst being environmentally and
economically sustainable.
The Corporation derives its existence and operations from the following legislative mandates:
The Bill of Rights in the Constitution of the Republic of South Africa (Act No 108 of 1995) is the cornerstone of
democracy and enshrines the rights of all people in our country and afrms the democratic values of human dignity,
equality and freedom.
The Mayibuye Transport Corporation, through its provision of public transportation, in addition to advancing the values
of human dignity, equality and freedom, ensures the realisation of economic and social advancement of the citizens of
the Eastern Cape whilst contributing to the overall economic growth of the Province.
CONSTITUTIONAL
MANDATE
LEGISLATIVE
MANDATE
Constitution of the Republic of South Africa Act,
1996 (No. 108 of 1996)
Ciskei Corporations Act (1990).
White Paper on National Transport Policy (1996)
National Road Trafc Act (Act No. 93 of 1996)
Urban Transport Act (No 78 of 1977)
National Land Transport Transition Act (No. 22 of 2000)
Eastern Cape Roads Act (No. 3 of 2003)
Passenger Transportation (Interim Provisions)
Act (No 11 of 1999)
Road Transportation Act (No. 74 of 1977)
Public Finance Management Act
(No 1 of 1999 and 29 of 1999)
Public Service Act (No.103 of 1994)
Skills Development Act (No. 97 of 1998)
Skills Development Levy Act (No. 9 of 1999)
Preferential Procurement Policy Framework Act
(No. 5 of 2000)
Employment Equity Act (No. 55 of 1998)
Occupational Health and Safety Act
Regulations emanating from the above legislation
PAGE
10
BUT IT
WAS A
SYDNEY
POITIER
SO ITS BEEN KIND OF A
LONG ROAD,
GOOD
JOURNEY
ALTOGETHER.
PAGE
11
PAGE
12
2012I 13
PAGE
13
02
BUSINESS
REPORTS
MESSAGE FROM
THE CHAI RPERSON
OVERVI EW BY THE
CHI EF EXECUTI VE OFFI CER
PAGE
14
TRANSPORT IS NOT ONLY AN ESSENTIAL BUT ALSO ONE OF THE SINGLE
MOST VISIBLE ELEMENTS OF CONTEMPORARY SOCIETY.
To this end Mayibuye Transport Corporation has continued to be visible and to showcase its resilience under very
challenging conditions.
MESSAGE
FROM THE
CHAIRPERSON
PERCY L. C. MASETI
Chairperson of the Board of Directors
The Corporation has continued to
reap the benefts of its services
and it is worthy to note that the
Corporation performs admirably
under tough economic conditions.
As we endeavour to ensure that
we continue to serve the rural
communicates of our Province,
proper fnancial management,
compliance and good governance
shall remain key to the Corporation.
I wish to echo the sentiments
expressed by the Board in
congratulating the management
team of Mayibuye Transport
Corporation on the transportation
of over two million passengers
during the period under review. We
furthermore welcome the clean audit
on performance information a frst
in the history of the Corporation.
Considering the history of the entity,
it is now no longer unrealistic to
talk about a soon-to-be completed
metamorphosis from the Corporation
of the past to the premier public
transport service provider of the future.
Our strategic partners, namely, the
Provincial Department of Transport
and the Portfolio Committee on
Transport, have been absolutely
critical to our operational success.
The transport experience of our
passengers and commuters has
improved over the years primarily
because our partners have come
along with us on the journey of
continuously intensifying our eforts
to improve customer service. We
proudly refect on the 83% Customer
Satisfaction rate achieved.
Serving as the Chairperson of
the Board of Mayibuye Transport
Corporation has been very rewarding
and enriching experience for me
and this particularly so through
the continued interaction with our
management team, so competently
led by Luthando Mbinda, our Chief
Executive Ofcer.
To my colleagues on the Board,
a heartfelt appreciation for your
commitment in executing the
oversight role you play and the
considered guidance provided to the
management team. I wish to take this
opportunity to recognise and thank
you for the diligent manner in which
you discharged your responsibilities.
Finally, I would like to thank the
Honourable MEC Marawu for her
support. We look forward to carry on
working with her for the continued
beneft of the people of our Province
that we serve.
PAGE
15
WERE
SHAPING
YOUR TOMORROW
TODAY
PAGE
16
Throughout every year since it
began in 1990, the Mayibuye
Transport Corporation (MTC) has
kept the Eastern Cape moving.
I am pleased to share this annual
report titled Steadfast growth,
unlimited possibilities.
The past year presented many
challenges in transporting our
deserving clients and our buses
running. Like you, we had to fnd
ways to do more with less. And we
did. Despite lack of sufcient grant
funding, Mayibuye provided more
than 2.2 million people with a ride
on our buses.
As the Chief Executive Ofcer of the
Mayibuye Transport Corporation I am
pleased and honoured to share the
2012/13 MTC Annual Report with you.
As you are aware, 2012 was a
challenging year for transportation
funding. We faced obstacles
that we never had before, and
hopefully, never will again. But
more importantly, you will see how
MTC used these challenges as
opportunities to improve mobility
and the quality of life for Eastern
Cape residents.
With the continued under funding
and marginal sales revenue
increase, it was an extremely
challenging year for our bus
system. Throughout the extensive
planning and implementation of
cost reductions, MTC staf worked
diligently to minimize the impact
on our customers and to keep them
engaged every step of the way.
Hard work coupled with focused
strategies is the essence of what
we do here at Mayibuye Transport.
Our employees are driven to
achieve specifc goals which are
measured so that MTC can attain
its vision of being a leading quality
public transport service provider.
Throughout this past year we have
safely navigated the improving, but
still difcult, economic times and
successfully completed numerous
feet projects and efciently delivered
our many services and programs.
Whether it is through our tirelessly
maintaining our ageing feet to
improve the number of vehicles
available; the advanced and
defensive training being ofered to
our drivers in support of passenger
safety; or our on-going strategic
analysis and augmentation of the
best practice management systems;
we are driven to perform at the
highest level so that the residents of
the Eastern Cape can see the return
on their investment. To this end
we are proud to announce that we
have now achieved a clean audit for
performance information, a frst for
the entity and a massive achievement
in terms of credible and transparent
service delivery reporting.
This years annual report centres on the following quote:
STRIVING FOR SUCCESS WITHOUT HARD WORK
IS LIKE TRYING TO HARVEST WHERE YOU HAVENT PLANTED.
- David Bly
OVERVIEW
BY THE
CHIEF
EXECUTIVE
OFFICER
LUTHANDO RICHMOND MBINDA
CEO of MTC Ex-Ofcio Board Member
PAGE
17
Detailed below are the highlights as well as challenges identifed by the core functions:
a) Achieve 82% of our annual targets - a performance
which was achieved under very strenuous and
unfavourable conditions as the Corporations is
operating with inadequate resources.
b) Maximise our revenue by collecting R27 606 895 and in
so doing exceeding our target by 9.6%
The core function of the programme is to transport
people of the Eastern Cape in all our designated routes.
The department however remains hamstrung due to
ageing buses in our system which regularly break down
and are removed from the road due to defects.
The misconduct of the bus drivers who are entrusted
with the responsibility of collecting cash from the
customers has manifested in many negative ways as we
have seen experienced and skilled drivers being dismissed
for theft of revenue leaving MTC with inexperienced and
unskilled bus drivers who should still be upskilled by MTC.
This has also frustrated Engineering as their maintenance
costs escalated due to buses that were constantly breaking
down due inexperienced drivers.
Working with aged manpower in critical management
positions where change management was imminent has
also posed a major challenge as training such people in
new methods is not always received with enthusiasm and
therefore not absorbed at all.
ENGINEERING
In spite of conditions that are not conducive to proper training and development within our facilities, the corporation
is proud to report that two automotive electrician apprentices acquired artisanship during the period under review.
The Corporation absorbed both of them as permanent employees in two diferent depots in positions that existed
before they qualifed.
The lack of capital funding did not preclude the Corporation from improvising to ensure that two used buses were
acquired from the operating revenue at a total cost of R1m. In addition to this achievement, we managed to erect proper
fencing in Reeston which is encroached by an informal settlement with a history of high incidents of break-ins.
The refurbishment of Bus 22 from Queenstown was also made possible through the transfer of funds from our
operating budget to that of our capital expenditure budget.
The Engineering Department had numerous challenges to deal which due to the feet recapitalisation plan which is yet to
be approved. This was coupled with:
OPERATIONS
The Operations Department took advantage of the Performance Management System implemented by the Ofce of
Strategic Management and through efective control of staf Performance we were able to:
In spite of conditions that are not
conducive to proper training and
development within our facilities,
the corporation is proud to report
that two automotive electricians
apprentices acquired artisanship
during the period under review. The
Corporation absorbed both of them
as permanent employees in two
diferent depots in positions that
existed before they qualifed.
The lack of capital funding did
not preclude the corporation from
improvising to ensure that two
used buses were acquired from the
operating revenue at a total cost of
R1m. In addition to this achievement,
we managed to erect proper fencing
in Reeston which is encroached
by informal settlement with high
incidents of break-ins before such
a project was implemented. This
is an obligation on the Accounting
authority to ensure that risk
management and protection of
assets is enhanced in the spirit of
the PFMA.
The refurbishment of Bus 22 from
Queenstown was also made possible
through the operating expenses.
PAGE
18
ROUTE AND PRIVATE HIRE REVENUE COLLECTION
Year Budget Actual Variance
2010 21,171,560 18,513,578 (2,657,982)
2011 18,650,942 18,633,508 (17,434)
2012 20,447,636 23,835,306 3,387,670
2013 25,229,258 27,606,895 2,377,637
EXPENDITURE
Item 2013 Actual 2012 Actual 2011 Actual 2010 Actual
Profit / (Loss)
from operations
(2,970,318) (440,451) 164,385 5,009,206
Personnel 46,506,195 41,314,771 35,165,181 31,021,556
Audit fees
(including internal audit fees for current year)
3,537,849 2,693,371 1,763,700 1,793,083
Operating expenses 29,565,572 34,859,052 25,861,552 24,871,027
Depreciation 14,947,105 11,614,771 7,207,526 11,492,104
2012/2013 Funding Source Budget Expenditure Variance
Leasing of Buses DOT Grant 5,000,000 6 028 176 (1,028,176)
New Buses & Refurbishment Own Revenue 1,559,703 1,559,703 0
Ancillary Vehicles Own Revenue 0 0 0
Operating Equipment Own Revenue 4,445 4,445 0
Workshop Equipment Own Revenue 130,032 130,032 0
Office Furniture & Equipment, IT Infrastructure Own Revenue 1,073,340 1,073,340 0
Depot Upgrading Own Revenue 260,926 260,926 0
Spare Parts & Units Own Revenue 5,025,231 5,025,231 0
Total 13,053,677 (14,081,853) (1,028,176)
2011/2012 Budget Expenditure Variance
New Buses & Refurbishment 5,250,000 10,429,115 (5,179,115)
Ancillary Vehicles 1,820,000 1,291,159 528,841
Operating Equipment 190,000 426,501 (236,501)
Workshop Equipment 600,000 383,715 216,285
Office Furniture & Equipment, IT
Infrastructure
1,110,000 830,467 279,533
Depot Upgrading 1,030,000 278,575 751,425
Spare Parts & Units - 6,548,033 (6,548,033)
Total 10,000,000 20,187,565 (10,187,565)
OVERVIEW OF
THE SERVICE
DELIVERY
ENVIRONMENT
FOR 2012/2013
CAPITAL EXPENDITURE
The Corporation has received a capital grant from the Department of Transport which has been spent as follows:
PAGE
19
2011/2012 Budget Expenditure Variance
New Buses & Refurbishment 5,800,000 8,115,333 (2,315,333)
Ancillary Vehicles 300,000 351,678 (51,678)
Operating Equipment 2,770,000 3,295,872 (525,872)
Workshop Equipment 400,000 13,660 386,340
Office Furniture & Equipment, IT
Infrastructure
150,000 533,284 (383,284)
Depot Upgrading 440,000 175,512 264,488
Spare Parts & Units - 4,428,499 (4,428,499)
Total 9,860,000 16,913,834 (7,053,838)
Busses - Body
12.5%
Ancillary
Vehicles
25%
Busses - Chassis,
Engine, etc
8.33%
Workshop
Equipment
25%
Ofce
Equipment
20%
Spare Parts
& Units
50%
Ofce
Furniture
10%
Operating
Equipment
20%
Buildings
2%
DEPRECIATION
RATES FOR
ASSETS
PAGE
20
AREAS OF
OPERATION
MTC operates
predominantly in the
former Ciskei Region
QUEENSTOWN
DEPOT
The Queenstown Depot
covers the areas of
Ntabethemba, Whittlesea
and Swartwater.
A total of 629 818 passengers
were conveyed with 691 040
kilometres travelled.
ZWELITSHA
DEPOT
The Zwelitsha Depot covers
the areas of King Williams
Town and Keiskammahoek.
A total of 749 894 passengers
were conveyed with 867 315
kilometres travelled.
REESTON
DEPOT
The Reeston Depot covers
the areas of East London.
A total of 592 800 passengers
were conveyed with 538 873
kilometres travelled.
ALICE
DEPOT
The Alice Depot covers the
areas of Alice and Middledrift.
A total of 288 841 passengers
were conveyed with 252 171
kilometres travelled.
Republic of
SOUTH AFRICA
EASTERN
CAPE
EAST
LONDON
REVENUE GENERATION BY DEPOT WAS AS FOLLOWS:-
Depot 2013 2012 2011
Zwelitsha 10,465,251 9,743,285 7,196,358
Reeston 6,412,940 4,956,850 4,161,776
Queenstown 7,985,357 7,032,149 5,713,287
Alice 2,743,346 2,103,022 1,562,087
TOTAL 27,606,895 23,835,306 18,633,508
The own-revenue has been achieved by an average number of 48 operating buses (2012:50, 2011:51) with a total number
of 2 519 661 kilometres travelled. Private hire kilometres amounted to 169 716 (2012: 215 387, 2011:137 765) while route
kilometres stood at 2 349 945 (2012: 2 239 345, 2011: 2 203 745) for the fnancial year.
REVENUE Total own-revenue generation for the fnancial period under review
amounted to R 27,606,895
A grand total of 2,261,353 passengers
Were carried with 2,349,945 route kilometers
Travelled during the year under review.
2,261,353
PASSENGERS
PAGE
21
COMBINED REVENUE HAS BEEN GENERATED BY EACH DEPOT AS FOLLOWS:
Depot 2013 2012
Route Private Hire Route Private Hire
Zwelitsha 8,410,782 2,054,470 7,697,496 2,045,789
Reeston 4,811,029 1,601,911 3,632,929 1,323,921
Queenstown 7,361,547 623,810 6,451,039 581,111
Alice 2,397,076 346,270 1,855,562 247,460
TOTAL 22,980,434 4,626,461 19,637,025 4,198,281
BUS ALLOCATION PER DEPOT FOR THE FINANCIAL YEAR WAS AS FOLLOWS:
Depot 2013 2012 2011
Zwelitsha 17 19 18
Reeston 13 12 12
Queenstown 13 13 15
Alice 5 6 6
Total Operating Buses 48 50 51
BUS ALLOCATION
PER DEPOT
For the Financial Year
AVERAGE ROUTE REVENUE
per bus was as follows:-
EASTERN
CAPE
EAST LONDON
QUEENSTOWN
DEPOT {2013}
566,273
2012: 496,234, 2011: 344,882
ALICE DEPOT
{2013}
474,415
2012: 309,260, 2011: 229,801
REESTON DEPOT {2013}
370,079
2012: 302,744, 2011: 272,611
ZWELITSHA DEPOT {2013}
494,751
2012: 405,131, 2011: 359,915
PAGE
22
The Corporation receives a grant-in-aid from the Eastern Cape Department of Transport.
The grant serves to subsidize bus fares and partly fund the Corporations operating activities.
Allocation for the fnancial year under review was as follows:-
Details 2013 2012 2011 2010 2009
Revenue 27,606,895 23,835,306 18,629,433 18,513,578 19,426,462
Grant-in-Aid 63,773,000 51,429,000 41,809,000 43,000,000 31,895,000
Capital Grant-in-Aid 5,000,000 10,000,000 9,860,000 8,500,000 5,000,000
Route Passengers 2 261 353 2,223 040 1,790,793 1,808,717 2,053,531
Route Kilometres 2 349 945 2,239,345 2,203,745 2,231,356 2,432,486
Buses at Year end 63 63 63 65 62
Revenue Cents per Km 1174 1064 845 830 799
OPERATING
GRANT-IN-AID
{2013}
63,773,
000
{2012}
51,429,
000
{2011}
41,809,
000
FINANCIAL
STATISTICS
for the fve years
ending March
2013
IN CLOSING
Mayibuye will continue to capitalise on its close working
relations with Government Departments; District and
Local Municipalities and other state owned enterprises
in order to enhance its capacity to service its customers.
We will also continue to monitor the fndings of the
Legislature and actively work towards the implementation
of its resolutions.
We have developed and submitted a strong business case
by way our recapitalisation plan which we will continue to
lobby capital funding for with the relevant stakeholders.
An approved recapitalisation plan will see
to sizable improvements in passenger numbers due
to a complete revamping or our depot infrastructure, a
substantially increased feet and the acquisition of much
needed workshop equipment. The Corporations strategic
objectives and mandate will be unattainable should the
recapitalisation plan remain unfunded.
We will continue to accomplish great feats due to our
commitment and continued eforts to develop and deliver
transportation solutions to enhance the quality of life and
facilitate Eastern Cape mobility.
PAGE
23
We look forward to continuing to do our part to keep the
Eastern Cape moving towards economic opportunity for all.
Sincerely,
LUTHANDO RICHMOND MBINDA
CEO of MTC Ex-Ofcio Board Member
DEDICATION
TO OUR
CLIENTS
IN EVERYTHING WE
IMAGINE
PLEASE KNOW
THAT WE COULD
NOT HAVE
ACHIEVED THESE
RESULTS WITHOUT
YOUR SUPPORT.
PAGE
24
2012I 13
PAGE
25
03
PROGRAMME
PERFORMANCE
PAGE
26
WE
TRANSPORT THE
HEART
OF YOUR
COMMUNITIES
PAGE
27
STRATEGIC GOALS AND OBJECTIVES
Mayibuye Transport Corporation has streamlined its performance management objectives and increased its strategic focus by reducing the
number of strategic goals to three main outcomes namely:
Ensure an efficient, effective and service
oriented organisation
1.1. Provide Strategic direction through effective leadership and good governance
1.2. Develop and implement stakeholder relationship management strategy
1.3. Implementation of organisation wide Performance Management System
1.4. Design and implement an effective Business Performance Improvement Strategy
1.5. Establish and implement an organisation wide Business Excellence Model
1.6. Maintain reliable and sustainable Financial Management practices
1.7. Provide a reliable and integrated ICT platform
1.8. Establish a world class and compliant Procurement Management System
1.9. Implement an individual Performance Management and Development System (PMDS)
1.10. Develop and implement an Integrated Human Resource Plan
1.11. Implement an effective and efficient inspectorate and safe operating environment
Render a safe, affordable and reliable
service
2.1. Enhance vehicle availability
2.2. Implement fleet maintenance and refurbishment program
2.3. Enhance passenger safety
2.4. Ensure adequate and conducive infrastructure for productive operations
Institutionalise operations best practices
3.1. Improve driver performance
3.2. Increase ridership
3.3. Maximise Revenue
OVERALL
PERFORMANCE
PAGE
28
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.1 Compliance with the approved
Board Charter monitored
0001 Number of quarterly reports on
compliance
4 4 0 Not applicable. Target Achieved. Not required
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.2 Annual Board Programme
completed
0002 % Approved Board Programme
Completed
100 150 -50 Additional Board Meeting processed in support of
urgent motivations and the Audit Action Plan
The Board Plan for 2013/2014 has been updated
to allow for additional meetings
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.3 Annual Board Development
Programme completed.
0003 % Annual Board Development
Programme Completed
100 100 0 Not applicable. Target Achieved. Not required
STRATEGIC GOAL
Ensure an efcient, efective and service oriented organisation.
PURPOSE
The Ofce of the Chief Executive Ofcer (CEO) facilitates the coordination between the Board of Directors, Shareholder,
Heads of Department and Stakeholders. The Board of Directors serves as the Accounting Authority for MTC in terms of
the Public Finance Management Act. The CEO is responsible for the formulation of policy as a non-ofcio member of
the Board of Directors and accountable for the implementation of policy and strategy as the most senior executive in
the organisation. The Ofce of the CEO ensures that efective planning and reporting systems are established based
on internal management co-operation and communications, and that external partnership networks are developed and
managed for the beneft of the Mayibuye Transport Corporation.
PROGRAMME STRUCTURE
Chief Executive Compliance Management Board Secretarial Services
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.4 100% Legal Cases Managed 0004 % of Legal Cases Managed 100 - - No cases for the year were reported The indicator was set to cater for legal cases as
an emerging risk. No further action is required
2.3. Enhance passenger safety 2.3.2.1 Zero accidents caused by MTC 0115 Number of accidents caused by
MTC
0 3 -3 Text Text
SERVICE DELIVERY OBJECTIVES, INDICATORS AND ACHIEVEMENTS
The Ofce of the CEO has been able to demonstrate results against its predetermined objectives as indicated below:
PROGRAMME 1
Ofce of the CEO
PAGE
29
STRIVING FOR
SUCCESS WITHOUT
HARD WORK IS LIKE
TRYING TO HARVEST
WHERE YOU
HAVENT PLANTED.
- David Bly
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.1 Compliance with the approved
Board Charter monitored
0001 Number of quarterly reports on
compliance
4 4 0 Not applicable. Target Achieved. Not required
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.2 Annual Board Programme
completed
0002 % Approved Board Programme
Completed
100 150 -50 Additional Board Meeting processed in support of
urgent motivations and the Audit Action Plan
The Board Plan for 2013/2014 has been updated
to allow for additional meetings
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.3 Annual Board Development
Programme completed.
0003 % Annual Board Development
Programme Completed
100 100 0 Not applicable. Target Achieved. Not required
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.4 100% Legal Cases Managed 0004 % of Legal Cases Managed 100 - - No cases for the year were reported The indicator was set to cater for legal cases as
an emerging risk. No further action is required
2.3. Enhance passenger safety 2.3.2.1 Zero accidents caused by MTC 0115 Number of accidents caused by
MTC
0 3 -3 Text Text
PAGE
30
STRATEGIC GOAL
Ensure an efcient, efective and service oriented organisation.
PURPOSE
The Ofce of Strategic Management exists to orchestrate the connection between strategy and execution. It oversees
alignment of all management processes with strategy and is responsible for the coordination and preparation of the
strategic plan, planning processes, reporting and organizational performance improvement. MTC is engaged in an
on-going planning process designed to facilitate strategic conversations to improve organizational results. The Ofce
of Strategic Management provides strategic leadership and management in accordance with legislation, policies and
furthermore ensured support to the Ofce of the CEO, the Board and all programmes within the Corporation.
PROGRAMME STRUCTURE
Strategic Management Corporate Performance Management Employee Performance Management Marketing
PROGRAMME 2
Ofce of Strategic
Management
OVERVIEW OF DEPARTMENTAL PERFORMANCE
The Corporate Performance Strategy:
The strategy aims to optimise
organisational performance by
enhancing project selection criteria,
design integrated development
solutions, and to enhance learning
and innovation. Corporate
Performance Management aims to
narrow the gap between strategy
and execution. As an integrated,
evidence-based management
practice, it involves planning,
forecasting, budgeting. It utilises
business intelligence; systematically
to monitor, analyse and measure
strategic and operational activities
against targets in performance
indicators. The framework is structured
around six core elements: Analyse,
Plan, Allocate Resources, Implement
and monitor, Evaluate and Report.
A comprehensive Employee
Performance Management System
ground breaking in its approach
of alignment, accountability and
calculability; the EPMS provides the
golden thread between strategy and
execution. Due to its intricacies, the
detailed system is yet to be rolled out
to staf below junior management.
It allows for the objective setting of
standards and review of performance
completely aligned to the corporate
performance of the entity. The entire
organisation has been subjected to
performance management training
and for the frst time in its history, all
levels of MTC staf members have
concluded performance agreements
and assessments.
The Excellence Framework Project:
MTC previously had no scientifc
means of self-assessing its
continuous business improvement
processes. Furthermore, there
was no feedback data available
to the performance management
system. Triggers for breaks in
controls were not set therefore
many key risks remain unidentifed
and early detection not benefted
from. The Corporation also has
no means to benchmark against
other likeminded organisations nor
did it have a scientifc means to
support an organisational culture
of excellence. With the adoption
of the South African Excellence
Framework, MTC has now geared
itself to introduce organisational
performance excellence by
way of a comprehensive and
integrated practical model. Quality
minded companies show great
performance improvement trends
after the application of total quality
management programmes due to the
strong correlation between business
excellence and quality.
The 2012/2013 fnancial year has proven extremely
exciting as from 1 April 2012, the Corporation found itself
with a dedicated Strategic Management Department.
Tasked with translating policies and priorities into
strategies for efective service delivery, managing,
monitoring and controlling the Corporations Performance
as well as providing Strategic Direction, the Ofce of
Strategic Management drove the design and delivery of
numerous organisational development initiatives.
MTCs Strategic Vision of becoming a leading quality
public transport service provider is grounded in the
belief that chronic transport defciencies can only be
successfully eradicated through a targeted, integrated,
comprehensive long term strategy and programmes.
This position is supported by the fact that while there
have been substantial investments in social transport
development and signifcant achievements since 1994,
poverty has proven intractable and inequality has deepened.
Hence, through its Ofce of Strategic Management, the entity embarked on a wide-scale performance improvement
project which resulted in several changes being implemented including:
PAGE
31
An eGovernance Initiative:
MTC have seen considerable savings
in time spent on administration
since the implementation of
its eGovernance Initiative.
Communications and logistics have
dramatically improved as the Board
spans a wide geographic area where
board papers were couriered at great
expense. With the eGovernance
solution, last minute inclusions and
corrections can be easily updated
without the need to reprint and
distribute packs; this has reduced
both time and cost. The Board has
all of its governance information
available at their fngertips, and can
review, annotate and make decisions
on the move, maximising the use
of their time and running a more
efective board.
An Annual Operational Plan and
Budget Model:
A detailed Annual Operational
Plan had been created within each
department which culminated
in a tactical strategy document
which seeks to fully support the
implementation of the Annual
Performance Plan. The AOP explains
how MTC will deliver the goals and
other high level targets set out in
the Annual Performance Plan and
how the Corporation will modernise
and reform itself to get better value
for money in achieving them. In
broad terms the Plan demonstrates
how performance will be improved
within the Corporation and the
Departments; how performance will
be proved in support of providing
assurance to stakeholders; how the
Departments will focus more closely
on the needs of customers of its
services; and how the Corporations
Human and IT resources will be
managed to achieve change, to
include diversity and equality issues.
The plan centres on delivering
key results and sets out how
Departments will deliver their targets.
A critical success factor to the rollout
of the AOP was the development
of a budget model. Again a frst
in the history of the Corporation,
budgets have been allocated per
project allowing for critical analysis of
performance against cost.
Risk Management Methodology
Enhancements
The management of risk is critically
important to the on-going success
of Mayibuye Transport Corporation
(MTC). MTC regards risk as the
impact of uncertainty on objectives
that could be related to projects and
project execution, health and safety,
the environment, the economy, and
talent management, among others.
The efective management of risk
is closely interwoven into MTCs
business strategy. A comprehensive
risk register tool has been developed
in which all risks are now directly
linked to measurable objectives
and are weighted in terms of
fnancial implications. Root causes
are identifed in support of better
ft-for-purpose mitigation strategies
and controls. The Risk Register tool
also forms the basis of documenting
the Corporations tolerance level for
each risk (acceptable level) as well
as monitoring the percentage of
risks which have been reduced to an
acceptable level. MTC now faces 9
strategic risks of which two strategic
risks are set to be reduced to an
acceptable level by 31 March 2014.
Stakeholder Management Strategy:
This stakeholder engagement
strategy outlines our approach to
communicating and working with our
stakeholders and seeks to provide
and a clear focus in the management
of stakeholder relationships by MTC.
Engagement is an integral part of
developing our understanding of
the public transport industry along
with the risks and opportunities it
presents. This helps us to shape a
substantial socio-economic
contribution and our future plans
and priorities.
However, like all other organisations,
MTC was required to strike the
correct balance between meeting the
organisations mandate and programme
obligations whilst maintaining
optimum efciency levels.
The introduction of performance
information standards, monitoring
and control, proved challenging
to many of the existing staf
members. This has negatively
impacted on departmental
performance as implementation of
OSM recommendations were not
timeously concluded. Furthermore,
the organisational climate was not
accustomed to the high speed of
innovation and adoption required
in order to secure the desired
outcomes. Despite these challenges
and related set-backs, the Ofce
of Strategic Management is proud
to report that MTC has for the frst
time in its history obtained a clean
audit for performance information.
This result is staggering considering
the short period of 1 year in which
the turnaround strategy and
various related initiatives had to be
developed and implemented. We take
this opportunity to thank each and
every staf member committed to this
performance drive as well as to the
CEO and Board of Directors for their
continued support and leadership.
A hurdle which remained throughout
the 2012/2013 fscal year was the
non-implementation of OSMs
recommendation for alignment of the
budget in the fnance system to the
approved AOP. A new fnance system
has been procured and additional
fnance staf sourced in order to
ensure that from the 2013/2014
fnancial year, complete alignment
and control is realised.
Going forward, the Ofce of Strategic
Management remains committed to
ensuring that all the projects within
the Corporation are fully implemented
within the set parameters.
Furthermore, as the Corporate
Performance System develops, so too
will MTCs ability to provide credible
business intelligence and foresight.
OSM will continue to focus on the
implementation and value add of the
Strategic Management Framework,
the knowledge base development,
the continual review of the strategic
risks that could impact the entity and
any areas that will improve the focus
on total quality management and the
business excellence culture within
MTC. United as a Corporation we will
deliver best-practice service delivery
models and results.
PAGE
32
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.5 Four reports on the relationship
between MTC and its identified
stakeholders
0014 Number of reports on the
stakeholder relationships.
4 4 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.7 Annual report consolidated and
submitted 31 August.
0023 Number of Annual Reports
consolidated and submitted by 31
August 2012
1 1 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.8 Performance Reports approved
and submitted for each quarter
0024 Number of quarterly performance
reports approved and submitted.
4 4 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.9 One Annual Performance Plan
(APP) and Corporate Plan aligned
to Treasury guidelines.
0025 Number of Annual Performance
Plans approved by the
Accounting Authority
1 1 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.9 One Annual performance Plan
(APP) and Corporate Plan aligned
to Treasury guidelines.
0026 Number of Corporate Plans
approved by the Accounting
Officer
1 1 0 Not applicable. Target Achieved. Not required
1.4. Design and implement an effective
Business Performance Improvement
Strategy
1.4.1.1 Comprehensive organisation
wide excellence model
established
0031 South African Excellence
Framework model adopted
1 1 0 Not applicable. Target Achieved. Not required
1.4. Design and implement an effective
Business Performance Improvement
Strategy
1.4.1.2 Three business processes refined
for organisational performance
improvement
0032 Number of business processes
refined for organisational
performance improvement
3 3 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.2 Integrated communication
strategy developed
0034 Integrated communication
strategy developed
1 1 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.3 Corporate branding strategy
developed
0035 Corporate branding strategy
developed
1 1 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.6 4 Workshops with key
stakeholders facilitated
0038 Number of workshops with key
stakeholders facilitated
4 4 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.7 4 Quarterly reports on
engagements with stakeholders
0039 Number of quarterly reports on
engagements with stakeholders
4 4 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.2.1 Social Media Optimisation
Options researched
0040 Report on social media
optimisation options
1 1 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.2.2 50% of Approved Social
Media Optimisation Platform
implemented
0041 % of Approved Social Media
Optimisation Platform
implemented
50 50 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.2.3 50% of Approved Social
Media Optimisation Platform
implemented
0042 Number of reports on
implementation of selected social
media optimisation platform
submitted
3 3 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.1 45% of Master Systems Plan
Implemented
0064 % of Master Systems Plan
Implemented
45 35 10 CCSIT have started an SQL class. There will be a
delay in certificates due to this action taken by
the ICT Manage because this course is only run
on an adhoc basis when enough students are
available to attend
There are 3 courses that still need to be run, the
LAN and ITS technician need only to write the
exam. The ICT Manager needs to complete the
course. Exams will be written on a monthly basis
starting from 15 05 2013
1.7. Provide a reliable and integrated ICT
platform
1.7.2.2 Disaster Recovery Plan 2013/2014
costed and approved
0065 % of Disaster Recovery Plan
costed and approved
50 50 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.4 70 Staff Members using the
Company Intranet
0067 Number of Intranet Users 70 70 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.3.1 75% of Enterprise Resource
Planning System Implemented
0069 % of Enterprise Resource
Planning System Implemented
75 75 0 Not applicable. Target Achieved. Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.1.1 100% Compliance with the
approved Performance
Management Policy
0083 % Approved Performance
Agreements submitted by
prescribed deadline.
100 29.41 71 This is the entry year for the new PMDS system
and substantial levels of assistance and review
has been required. A number of employees are
not office bound resulting in logistical challenges
in developing and concluding performance
agreements.
The shortfall in agreements will be completed
in time for the Annual Assessments. Additional
human resources will be appointed to assist
with the system admin in addition to training
and development in support of timeous PMDS
outcomes
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.1.1 100% Compliance with the
approved Performance
Management Policy
0084 % Approved Performance
Assessments submitted by
prescribed deadline.
100 0.42 100 This is the entry year for the new PMDS system
and substantial levels of assistance and review
was required. A number of employees are not
office bound resulting in logistical challenges
in developing and concluding performance
agreements and performance assessments.
The shortfall in annual assessments will
be concluded prior to the external audit on
predetermined objectives
SERVICE DELIVERY OBJECTIVES, INDICATORS AND ACHIEVEMENTS
The Strategic Management Department has been able to demonstrate results against its predetermined objectives
as indicated below:
PAGE
33
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.5 Four reports on the relationship
between MTC and its identified
stakeholders
0014 Number of reports on the
stakeholder relationships.
4 4 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.7 Annual report consolidated and
submitted 31 August.
0023 Number of Annual Reports
consolidated and submitted by 31
August 2012
1 1 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.8 Performance Reports approved
and submitted for each quarter
0024 Number of quarterly performance
reports approved and submitted.
4 4 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.9 One Annual Performance Plan
(APP) and Corporate Plan aligned
to Treasury guidelines.
0025 Number of Annual Performance
Plans approved by the
Accounting Authority
1 1 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.9 One Annual performance Plan
(APP) and Corporate Plan aligned
to Treasury guidelines.
0026 Number of Corporate Plans
approved by the Accounting
Officer
1 1 0 Not applicable. Target Achieved. Not required
1.4. Design and implement an effective
Business Performance Improvement
Strategy
1.4.1.1 Comprehensive organisation
wide excellence model
established
0031 South African Excellence
Framework model adopted
1 1 0 Not applicable. Target Achieved. Not required
1.4. Design and implement an effective
Business Performance Improvement
Strategy
1.4.1.2 Three business processes refined
for organisational performance
improvement
0032 Number of business processes
refined for organisational
performance improvement
3 3 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.2 Integrated communication
strategy developed
0034 Integrated communication
strategy developed
1 1 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.3 Corporate branding strategy
developed
0035 Corporate branding strategy
developed
1 1 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.6 4 Workshops with key
stakeholders facilitated
0038 Number of workshops with key
stakeholders facilitated
4 4 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.7 4 Quarterly reports on
engagements with stakeholders
0039 Number of quarterly reports on
engagements with stakeholders
4 4 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.2.1 Social Media Optimisation
Options researched
0040 Report on social media
optimisation options
1 1 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.2.2 50% of Approved Social
Media Optimisation Platform
implemented
0041 % of Approved Social Media
Optimisation Platform
implemented
50 50 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.2.3 50% of Approved Social
Media Optimisation Platform
implemented
0042 Number of reports on
implementation of selected social
media optimisation platform
submitted
3 3 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.1 45% of Master Systems Plan
Implemented
0064 % of Master Systems Plan
Implemented
45 35 10 CCSIT have started an SQL class. There will be a
delay in certificates due to this action taken by
the ICT Manage because this course is only run
on an adhoc basis when enough students are
available to attend
There are 3 courses that still need to be run, the
LAN and ITS technician need only to write the
exam. The ICT Manager needs to complete the
course. Exams will be written on a monthly basis
starting from 15 05 2013
1.7. Provide a reliable and integrated ICT
platform
1.7.2.2 Disaster Recovery Plan 2013/2014
costed and approved
0065 % of Disaster Recovery Plan
costed and approved
50 50 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.4 70 Staff Members using the
Company Intranet
0067 Number of Intranet Users 70 70 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.3.1 75% of Enterprise Resource
Planning System Implemented
0069 % of Enterprise Resource
Planning System Implemented
75 75 0 Not applicable. Target Achieved. Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.1.1 100% Compliance with the
approved Performance
Management Policy
0083 % Approved Performance
Agreements submitted by
prescribed deadline.
100 29.41 71 This is the entry year for the new PMDS system
and substantial levels of assistance and review
has been required. A number of employees are
not office bound resulting in logistical challenges
in developing and concluding performance
agreements.
The shortfall in agreements will be completed
in time for the Annual Assessments. Additional
human resources will be appointed to assist
with the system admin in addition to training
and development in support of timeous PMDS
outcomes
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.1.1 100% Compliance with the
approved Performance
Management Policy
0084 % Approved Performance
Assessments submitted by
prescribed deadline.
100 0.42 100 This is the entry year for the new PMDS system
and substantial levels of assistance and review
was required. A number of employees are not
office bound resulting in logistical challenges
in developing and concluding performance
agreements and performance assessments.
The shortfall in annual assessments will
be concluded prior to the external audit on
predetermined objectives
PAGE
34
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.5 3 Strategic Risks reduced to an
acceptable level
0005 Number of Strategic Risks
reduced to an acceptable level
3 1 2 Due to the delayed approval of the
recapitalisation plan, the mitigation systems in
support of Operations and Engineering risks
could not be implemented.
The recapitalisation plan has been resubmitted
to Treasury and the Corporation is awaiting
feedback.
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.9 100% Compliance with the
approved Risk Management and
Fraud Prevention Policy
0009 % Compliance with the approved
Risk Management and Fraud
Prevention Policy
100 70.60 29.40 Due to time and human resource constraints,
certain policy revisions and workshops have not
taken place.
The policy revisions, workshops and remaining
strategy developments will take place during the
new financial year
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.1 25% of the Board Approved
Stakeholder Relationship
Management Strategy
Implemented
0010 % Approved Stakeholder
Relationship Management
Strategy Implemented
25 25 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.2 Stakeholder Relationship
Management Strategy Developed
and Approved
0011 % of Stakeholder Relationship
Management Strategy Developed
and Approved
100 100 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.3 25% Stakeholder Management
System Implemented
0012 % of Stakeholder Management
System Implemented
25 25 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.4 Satisfaction Survey Conducted on
identified stakeholders
0013 Number of Stakeholder
Satisfaction Surveys Conducted
1 1 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.6 100% Compliance with the
Shareholder's Compact
0015 % Compliance with the
Shareholder's Compact
100 100 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.7 50% Board Portal Implemented 0016 % Board Portal Implemented 50 50 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.1 100% Compliance with identified
legislation
0017 % Compliance with identified
legislation
100 100.00 0.00 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.10 75% Compliance with the
approved Corporate Performance
Framework
0027 % Compliance with the approved
Corporate Performance
Framework
100 100 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.11 75% of Corporate Performance
Management System
Implemented
0028 % of Organisational Performance
Management System
Implemented
75 75 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.12 75% of Employee Performance
Management System
Implemented
0029 % of Employee Performance
Management System
Implemented
75 75 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.13 5 Workshops held on
Performance Management and
Development
0030 Number of Workshops held on
Performance Management and
Development
5 5 0 Not applicable. Target Achieved. Not required
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.2.1 Skills development plan fully
implemented to address
employee development needs
0085 %Workplace Skills Plan
Implemented
100 77.62 22 Training has to be provided by accredited service
providers with valid Tax Clearance Certificates
and they are not always available
Training scheduled for April 2013
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.2.2 Skills Development Plan
developed to build capacity
and improve organisational
performance; identify skills
gaps and promote employees
development needs.
0086 Number of Workplace Skills Plans
developed.
1 1 0 Not applicable. Target Achieved. Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.3.1 100% Employee Wellness
Management Plan Implemented
0087 % Employee Wellness
Management Plan Implemented
100 100 0 Not applicable. Target Achieved. Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.3.2 Conduct an Annual Health and
Safety Risk Assessment
0088 Report on annual Health and
Safety risk assessment.
1 1 0 Not applicable. Target Achieved. Not required
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.5 4 Health and Safety Act
Compliance Reports submitted
to the CEO
0103 Reports on Compliance with
Health and Safety standards.
4 4 0 Not applicable. Target Achieved. Not required
PAGE
35
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.5 3 Strategic Risks reduced to an
acceptable level
0005 Number of Strategic Risks
reduced to an acceptable level
3 1 2 Due to the delayed approval of the
recapitalisation plan, the mitigation systems in
support of Operations and Engineering risks
could not be implemented.
The recapitalisation plan has been resubmitted
to Treasury and the Corporation is awaiting
feedback.
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.9 100% Compliance with the
approved Risk Management and
Fraud Prevention Policy
0009 % Compliance with the approved
Risk Management and Fraud
Prevention Policy
100 70.60 29.40 Due to time and human resource constraints,
certain policy revisions and workshops have not
taken place.
The policy revisions, workshops and remaining
strategy developments will take place during the
new financial year
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.1 25% of the Board Approved
Stakeholder Relationship
Management Strategy
Implemented
0010 % Approved Stakeholder
Relationship Management
Strategy Implemented
25 25 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.2 Stakeholder Relationship
Management Strategy Developed
and Approved
0011 % of Stakeholder Relationship
Management Strategy Developed
and Approved
100 100 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.3 25% Stakeholder Management
System Implemented
0012 % of Stakeholder Management
System Implemented
25 25 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.4 Satisfaction Survey Conducted on
identified stakeholders
0013 Number of Stakeholder
Satisfaction Surveys Conducted
1 1 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.6 100% Compliance with the
Shareholder's Compact
0015 % Compliance with the
Shareholder's Compact
100 100 0 Not applicable. Target Achieved. Not required
1.2. Develop and implement stakeholder
relationship management strategy
1.2.1.7 50% Board Portal Implemented 0016 % Board Portal Implemented 50 50 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.1 100% Compliance with identified
legislation
0017 % Compliance with identified
legislation
100 100.00 0.00 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.10 75% Compliance with the
approved Corporate Performance
Framework
0027 % Compliance with the approved
Corporate Performance
Framework
100 100 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.11 75% of Corporate Performance
Management System
Implemented
0028 % of Organisational Performance
Management System
Implemented
75 75 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.12 75% of Employee Performance
Management System
Implemented
0029 % of Employee Performance
Management System
Implemented
75 75 0 Not applicable. Target Achieved. Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.13 5 Workshops held on
Performance Management and
Development
0030 Number of Workshops held on
Performance Management and
Development
5 5 0 Not applicable. Target Achieved. Not required
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.2.1 Skills development plan fully
implemented to address
employee development needs
0085 %Workplace Skills Plan
Implemented
100 77.62 22 Training has to be provided by accredited service
providers with valid Tax Clearance Certificates
and they are not always available
Training scheduled for April 2013
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.2.2 Skills Development Plan
developed to build capacity
and improve organisational
performance; identify skills
gaps and promote employees
development needs.
0086 Number of Workplace Skills Plans
developed.
1 1 0 Not applicable. Target Achieved. Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.3.1 100% Employee Wellness
Management Plan Implemented
0087 % Employee Wellness
Management Plan Implemented
100 100 0 Not applicable. Target Achieved. Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.3.2 Conduct an Annual Health and
Safety Risk Assessment
0088 Report on annual Health and
Safety risk assessment.
1 1 0 Not applicable. Target Achieved. Not required
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.5 4 Health and Safety Act
Compliance Reports submitted
to the CEO
0103 Reports on Compliance with
Health and Safety standards.
4 4 0 Not applicable. Target Achieved. Not required
PAGE
36
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.1 100% of approved Marketing Plan
implemented
0033 % of Approved Marketing Plan
Implemented
100 100 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.4 3 Marketing Tools Developed 0036 Number of Marketing Tools
Developed
3 3 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.5 2 Quarterly Internal Newsletters
Circulated
0037 Number of quarterly internal
newsletters circulated
2 2 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.3 Unqualified strategic
management audit report
0045 Number of strategic management
qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.4 Strategic Management maximum
budget variance of 5 percent
maintained
0056 % Budget Variance Maintained 5 - - The actual performance cannot be determined
as expenditure against budget for the Strategic
Management Department is not yet being tracked
by the Financial Management System.
Finance Division to ensure that the Strategic
Management Budget is loaded onto the Financial
Management System (Pastel Evolution)
1.7. Provide a reliable and integrated ICT
platform
1.7.1.1 The servers have a maximum
downtime of 8 hours throughout
the year.
0063 Hours of server downtime within
the year
8 0 8 Target Exceeded due to back-up systems in place Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.3 100% of Admin Systems Software
licensed
0066 % of Admin Systems Software
licensed
100 100 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.5 3 ICT Policies approved by the
Board
0068 Number of policies approved 3 3 0 Not applicable. Target Achieved. Not required
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.3.2 100% Compliance with Study
Loan Agreements
0097 % Compliance with Study Loan
Agreements
100 100 0 Not applicable. Target Achieved. Not required
3.2. Increase ridership 3.2.1.2 Conduct a bi-annual customer
satisfaction survey on each route
0125 Number of Bi-Annual Customer
Satisfaction Surveys Conducted
43 43 0 Not applicable. Target Achieved. Not required
PAGE
37
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.1 100% of approved Marketing Plan
implemented
0033 % of Approved Marketing Plan
Implemented
100 100 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.4 3 Marketing Tools Developed 0036 Number of Marketing Tools
Developed
3 3 0 Not applicable. Target Achieved. Not required
1.5. Establish and implement an organisation
wide Business Excellence Model
1.5.1.5 2 Quarterly Internal Newsletters
Circulated
0037 Number of quarterly internal
newsletters circulated
2 2 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.3 Unqualified strategic
management audit report
0045 Number of strategic management
qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.4 Strategic Management maximum
budget variance of 5 percent
maintained
0056 % Budget Variance Maintained 5 - - The actual performance cannot be determined
as expenditure against budget for the Strategic
Management Department is not yet being tracked
by the Financial Management System.
Finance Division to ensure that the Strategic
Management Budget is loaded onto the Financial
Management System (Pastel Evolution)
1.7. Provide a reliable and integrated ICT
platform
1.7.1.1 The servers have a maximum
downtime of 8 hours throughout
the year.
0063 Hours of server downtime within
the year
8 0 8 Target Exceeded due to back-up systems in place Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.3 100% of Admin Systems Software
licensed
0066 % of Admin Systems Software
licensed
100 100 0 Not applicable. Target Achieved. Not required
1.7. Provide a reliable and integrated ICT
platform
1.7.2.5 3 ICT Policies approved by the
Board
0068 Number of policies approved 3 3 0 Not applicable. Target Achieved. Not required
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.3.2 100% Compliance with Study
Loan Agreements
0097 % Compliance with Study Loan
Agreements
100 100 0 Not applicable. Target Achieved. Not required
3.2. Increase ridership 3.2.1.2 Conduct a bi-annual customer
satisfaction survey on each route
0125 Number of Bi-Annual Customer
Satisfaction Surveys Conducted
43 43 0 Not applicable. Target Achieved. Not required
PAGE
38
STRATEGIC GOAL
Ensure an efcient, efective and service oriented organisation.
PURPOSE
This programme also ensures the provision of systematic fnancial management systems designed to co-ordinate
the organisations budget and resource requirements. Such activities include ensuring compliance with regulatory
provisions required to facilitate the funding of the MTC as well as to take appropriate steps to ensure that expenditure
occurs within the approved budget and to prevent overspending of the budget. Systematic fnancial management
systems also entail the maintenance of a procurement system that is fair, equitable, transparent and cost-efective; and also
ensures that efective and appropriate steps are taken to prevent unauthorised, irregular or fruitless and wasteful expenditure.
PROGRAMME STRUCTURE
Financial Management Supply Chain Management Creditors Payments and Reconciliations
Revenue Management Salaries Administration
PROGRAMME 3
Finance
OVERVIEW OF DEPARTMENTAL PERFORMANCE
The Finance Department has for
the major part of the fnancial year
under review operated without a
Chief Financial Ofcer and this
has resulted in some performance
targets not being achieved. The
annual performance report for the
period refects an overall score of
67% for the division which compares
positively to the overall 63 %
achievement by the entity against
its Annual Operational Plan.
These positive results are due to
additional eforts implemented in
the 4th quarter which has resulted in
noteworthy achievements such as:
75% of the Pastel Evolution
System has been implemented,
100% of the fxed asset registers
being compliant with GAAP,
88% of the internal audit
intervention plan implemented.
In order to support continuity
of service delivery, the Finance
Department has within the limited
fnancial resources at its disposal
continued meeting its fnancial
obligations with its service
providers. This includes among
other things the setting aside of R5
million for the servicing of bus fnance
lease obligations.
In order to enhance service delivery,
the entity has for the 2014 fnancial
year set aside R12,2 million for the
purchase of additional buses while
a further R1 million has been set
aside for the refurbishment of the
current feet of buses.
In order to enhance the skills within
the Finance Department, the entity
will in the 2014 fnancial year
appoint a permanent Chief
Financial Ofcer.
PAGE
39
PUSHING FOR
TOTAL
PERFORMANCE
PAGE
40
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.7 Unqualified financial
management audit report
0049 Number of financial management
qualifications
0 1 -1 Non-cash items have failed tests for
completeness of revenue
Q Merit Reports to be reconciled will include non-
cash and emergency ticket items
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.2.1 AFS approved by the Accounting
authority and submitted to the AG
by 31 May 2012
0050 Submission of Annual Financial
Statements by 31 May.
1 1 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.3.1 100% of Internal and External
Audit Recommendations
Implemented
0051 % of internal and external audit
recommendations implemented.
100 88 12 The unresolved findings relate to the format of
the AFS as well as certain reconciliations which
remain due
The unresolved findings will be resolved in
preparation for the 2012/2013 AFS
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.4.1 100% Fixed Asset Registers
compliant with SA GAAP
0052 % of fixed asset registers
compliant to SA GAAP
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.6.1 Approved break even operational
budget by 31 March 2013
0062 Approved operational budget 1 1 0 Not applicable. Target Achieved. Not required
1.8. Establish a world class and compliant
Procurement Management System
1.8.1.1 All approved Supply Chain
Management policies reviewed
0070 % of approved of policies
reviewed
100 0 100 Review not complete as there are new changes
and updates from Treasury to be included.
All SCM policy reviewed will be concluded during
Q1 of 2013.2014. In addition, SCM regularly checks
the Treasury website for new SCM updates and
apply such to our SCM Policy.
1.8. Establish a world class and compliant
Procurement Management System
1.8.2.1 Report on the implementation of
procurement plan
0071 Number of reports on
implementation of approved
procurement plan
2 0 2 The Procurement Plan was only recently finalised
and therefore no implementation thereof has
taken place.
The Procurement Plan will be updated in
accordance with 2013/14 requirements and
implemented accordingly
1.8. Establish a world class and compliant
Procurement Management System
1.8.1.1 Approved corporation
procurement plan.
0072 Corporation procurement plan
developed and approved
1 0 1 Procurement plans are in draft format and not yet
refined for Board approval
Submit the procurement plan for Board approval.
1.8. Establish a world class and compliant
Procurement Management System
1.8.2.1 Tenders Awards Report submitted
to the Board on a quarterly basis
0073 Number of reports to Board on
tenders awarded
4 2 2 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.4.2 Provide SCM compliance reports
to the Audit Committee
0074 Number of Supply Chain
Management compliance reports
submitted.
1 0 1 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.4.3 Report on disposal of corporate
assets
0075 Number of reports on disposal of
corporate assets
4 1 3 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.5.1 60% of Project Funding spent
with HDIs and SMMEs
0076 % of Project Funding spent with
HDIs and SMMEs
60 0 60 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.6.1 Report on Business Process
Optimiser (BPO).
0077 Number of monthly Inventory
reports generated from the
Business Process Optimiser
(BPO) system.
12 12 0 Not applicable. Target Achieved. Not required
1.8. Establish a world class and compliant
Procurement Management System
1.8.7.1 Report on Supplier performance 0078 Number of Reports on Supplier
performance.
1 0 1 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.8.1 Conduct quarterly stock counts 0080 Number of stock counts
conducted on all stock
4 4 0 Not applicable. Target Achieved. Not required
1.8. Establish a world class and compliant
Procurement Management System
1.8.9.1 Conduct quarterly asset
verifications
0081 Number of verifications
conducted on all assets
4 4 0 Not applicable. Target Achieved. Not required
SERVICE DELIVERY OBJECTIVES, INDICATORS AND ACHIEVEMENTS
The Finance Department has been able to demonstrate results against its predetermined objectives as indicated below:
PAGE
41
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.7 Unqualified financial
management audit report
0049 Number of financial management
qualifications
0 1 -1 Non-cash items have failed tests for
completeness of revenue
Q Merit Reports to be reconciled will include non-
cash and emergency ticket items
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.2.1 AFS approved by the Accounting
authority and submitted to the AG
by 31 May 2012
0050 Submission of Annual Financial
Statements by 31 May.
1 1 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.3.1 100% of Internal and External
Audit Recommendations
Implemented
0051 % of internal and external audit
recommendations implemented.
100 88 12 The unresolved findings relate to the format of
the AFS as well as certain reconciliations which
remain due
The unresolved findings will be resolved in
preparation for the 2012/2013 AFS
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.4.1 100% Fixed Asset Registers
compliant with SA GAAP
0052 % of fixed asset registers
compliant to SA GAAP
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.6.1 Approved break even operational
budget by 31 March 2013
0062 Approved operational budget 1 1 0 Not applicable. Target Achieved. Not required
1.8. Establish a world class and compliant
Procurement Management System
1.8.1.1 All approved Supply Chain
Management policies reviewed
0070 % of approved of policies
reviewed
100 0 100 Review not complete as there are new changes
and updates from Treasury to be included.
All SCM policy reviewed will be concluded during
Q1 of 2013.2014. In addition, SCM regularly checks
the Treasury website for new SCM updates and
apply such to our SCM Policy.
1.8. Establish a world class and compliant
Procurement Management System
1.8.2.1 Report on the implementation of
procurement plan
0071 Number of reports on
implementation of approved
procurement plan
2 0 2 The Procurement Plan was only recently finalised
and therefore no implementation thereof has
taken place.
The Procurement Plan will be updated in
accordance with 2013/14 requirements and
implemented accordingly
1.8. Establish a world class and compliant
Procurement Management System
1.8.1.1 Approved corporation
procurement plan.
0072 Corporation procurement plan
developed and approved
1 0 1 Procurement plans are in draft format and not yet
refined for Board approval
Submit the procurement plan for Board approval.
1.8. Establish a world class and compliant
Procurement Management System
1.8.2.1 Tenders Awards Report submitted
to the Board on a quarterly basis
0073 Number of reports to Board on
tenders awarded
4 2 2 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.4.2 Provide SCM compliance reports
to the Audit Committee
0074 Number of Supply Chain
Management compliance reports
submitted.
1 0 1 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.4.3 Report on disposal of corporate
assets
0075 Number of reports on disposal of
corporate assets
4 1 3 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.5.1 60% of Project Funding spent
with HDIs and SMMEs
0076 % of Project Funding spent with
HDIs and SMMEs
60 0 60 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.6.1 Report on Business Process
Optimiser (BPO).
0077 Number of monthly Inventory
reports generated from the
Business Process Optimiser
(BPO) system.
12 12 0 Not applicable. Target Achieved. Not required
1.8. Establish a world class and compliant
Procurement Management System
1.8.7.1 Report on Supplier performance 0078 Number of Reports on Supplier
performance.
1 0 1 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
developed during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.8.1 Conduct quarterly stock counts 0080 Number of stock counts
conducted on all stock
4 4 0 Not applicable. Target Achieved. Not required
1.8. Establish a world class and compliant
Procurement Management System
1.8.9.1 Conduct quarterly asset
verifications
0081 Number of verifications
conducted on all assets
4 4 0 Not applicable. Target Achieved. Not required
PAGE
42
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.6 1 Finance (Admin Programme)
strategic risk reduced to an
acceptable level
0006 Number of Finance strategic risks
reduced to an acceptable level
- 0 - Not applicable. No target for the period under
review
Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.5 100% Compliance with identified
Finance related legislation
0021 % Compliance with identified
Finance related legislation
100 84 16 The Corporation did not obtain approval from the
MEC when committing to bus lease obligations.
The corporation has motivated to DoT to utilise
the 2013/14 capital grant to settle part of the long-
term lease liabilities.
1.3. Implementation of organisation wide
Performance Management System
1.3.1.6 100% Compliance with identified
Supply Chain related legislation
0022 % Compliance with identified
Supply Chain related legislation
100 96 4 Training in terms of the Framework for Minimum
Training and Deployment has not taken place.
The necessary training will be included in the
2013.214 Workplace Skills Plan and implementing
by the end of the new financial year
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.1 Unqualified Audit Opinion 0043 % Audit report Unqualified 100 90.91 9.09 2 Qualifications were obtained due to R1.6 m non-
cash items having failed tests on completeness of
revenue and asset impairment
Q Merit Reports to be reconciled will include non-
cash and emergency ticket items
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.4 Unqualified supply chain
management audit report
0046 Number of supply chain
management qualifications
0 1 -1 Only one stock count was done in the previous
year and BPO has not been set correctly hence
there were misallocation of stock issues
A request to CO3 was sent to correct the usage
settings for all categories per depot.
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.1 100% Compliance with approved
Audit Committee Charter
0053 % Compliance with approved
Audit Committee Charter
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.2 Maximum Budget variance of 5
percent maintained
0054 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.3 Executive Office maximum
budget variance of 5 percent
maintained
0055 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.5 Finance maximum budget
variance of 5 percent maintained
0057 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.6 Supply Chain Management
maximum budget variance of 5
percent maintained
0058 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.8. Establish a world class and compliant
Procurement Management System
1.8.7.2 100% Compliance with Lease
Agreements
0079 % Compliance with Lease
Agreements
100 0 100 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
devloped during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.9.2 Conduct quarterly asset
verification.
0082 Number of approved asset
register versions
4 4 0 Not applicable. Target Achieved. Not required
PAGE
43
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.6 1 Finance (Admin Programme)
strategic risk reduced to an
acceptable level
0006 Number of Finance strategic risks
reduced to an acceptable level
- 0 - Not applicable. No target for the period under
review
Not required
1.3. Implementation of organisation wide
Performance Management System
1.3.1.5 100% Compliance with identified
Finance related legislation
0021 % Compliance with identified
Finance related legislation
100 84 16 The Corporation did not obtain approval from the
MEC when committing to bus lease obligations.
The corporation has motivated to DoT to utilise
the 2013/14 capital grant to settle part of the long-
term lease liabilities.
1.3. Implementation of organisation wide
Performance Management System
1.3.1.6 100% Compliance with identified
Supply Chain related legislation
0022 % Compliance with identified
Supply Chain related legislation
100 96 4 Training in terms of the Framework for Minimum
Training and Deployment has not taken place.
The necessary training will be included in the
2013.214 Workplace Skills Plan and implementing
by the end of the new financial year
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.1 Unqualified Audit Opinion 0043 % Audit report Unqualified 100 90.91 9.09 2 Qualifications were obtained due to R1.6 m non-
cash items having failed tests on completeness of
revenue and asset impairment
Q Merit Reports to be reconciled will include non-
cash and emergency ticket items
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.4 Unqualified supply chain
management audit report
0046 Number of supply chain
management qualifications
0 1 -1 Only one stock count was done in the previous
year and BPO has not been set correctly hence
there were misallocation of stock issues
A request to CO3 was sent to correct the usage
settings for all categories per depot.
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.1 100% Compliance with approved
Audit Committee Charter
0053 % Compliance with approved
Audit Committee Charter
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.2 Maximum Budget variance of 5
percent maintained
0054 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.3 Executive Office maximum
budget variance of 5 percent
maintained
0055 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.5 Finance maximum budget
variance of 5 percent maintained
0057 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.6 Supply Chain Management
maximum budget variance of 5
percent maintained
0058 % Budget Variance Maintained 5 1 4 Target exceeded due to compliance with internal
controls and procedures
Not required. Target partially exceeded
1.8. Establish a world class and compliant
Procurement Management System
1.8.7.2 100% Compliance with Lease
Agreements
0079 % Compliance with Lease
Agreements
100 0 100 The compliance report has not yet been
developed due to Human Resource constraints
Additional resources have been allocated to
the SCM division. The compliance report will be
devloped during Q1 of 2013.2014
1.8. Establish a world class and compliant
Procurement Management System
1.8.9.2 Conduct quarterly asset
verification.
0082 Number of approved asset
register versions
4 4 0 Not applicable. Target Achieved. Not required
PAGE
44
STRATEGIC GOAL
Ensure an efcient, efective and service oriented organisation.
PURPOSE
Provides an internal enabling function and support service to the other programmes with regard to Human Resource
Management and Development.
PROGRAMME STRUCTURE
HR Management Services Security and Inspectorate Training and Development
Employment Relations and Integrated Wellness
PROGRAMME 4
Human Resources
OVERVIEW OF DEPARTMENTAL PERFORMANCE
Human Resource Management
(HRM) is anchored on the four core
values of the Corporation: integrity,
consultation, innovativeness and
accountability as it implements
Corporation Polices. Core functions
include Compensation of Employees,
Stafng, Integrated Wellness,
Industrial Relations, Employment
Equity, Training and Development.
HRM also forms strategic
partnerships in a collaborative
approach with other divisions in
managing people and the workplace
culture and environment. This is
done in order to enable employees
to contribute efectively and
productively to the overall corporation
direction that will result in the
accomplishment of the organizations
goals and objectives.
When the Corporation was
established in 1990, former Ciskei
Transport Corporation (CTC)
employees were employed in the
Operations and Engineering
Divisions to kick-start MTC. Natural
attrition is now catching up with
these employees and management
is seizing this opportunity by building
younger talent into the organization.
The fipside of this occurrence is that
experienced staf are exiting and in
some cases leaving a void within the
institutional memory of MTC.
The HRM Division did not do well
in achieving performance targets.
Performance management was
implemented for the frst time and
it is hoped that many lessons that
were learnt will be put into good use
moving into the future.
Positive changes include the hiring
of the Wellness Manager whom
has had a positive infuence on
Employment Relations. Several
workshops were conducted
culminating in Voluntary Counseling
and Testing of a signifcant number
of employees. The Employment Equity
targets set out in the Employment
Equity Plan were also achieved.
One of the biggest challenges
is the high bus driver turnover.
This is exacerbated by the zero
tolerance long adopted by the
Corporation on pilfering. In spite of
various interventions initiated by
management to mitigate this risk,
it has not abated.
PAGE
45
PAGE
46
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.4.1 Conclude all enquiry's and
appeals within 30 days from
start of case under normal
circumstances
0089 Maximum number of days to
finalise disciplinary hearings.
30 12.74 17 Target exceeded Presiding officers expediting
enquiries
Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.4.2 Unresolved grievances promote
toxic conversation amongst
the workforce; this may lead to
instability. Grievances shall be
resolved within 10 days
0090 Average number of days to
resolve internal disputes.
10 4 6 Target exceeded Presiding officers expediting
enquiries
Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.4.3 2 Workshops held on dealing
with Industrial Relations matters
for Managers at all levels
0091 Number of workshops on
Grievance Management, Work
Ethics and Chairing Disciplinary
enquiries.
2 2 0 Not applicable. Target Achieved. Not required
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.1.1 Maximum Vacancy Rate of 5% for
all Funded Positions
0092 Average vacancy % rate in the
Corporation
5 3.22 1.78 Target exceeded due to consistent monitoring by
HR and sending notices to programmes re vacant
positions
Not applicable. Target partially exceeded
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.1.2 Vacant positions filled within six
weeks of approved request
0093 Average number of days to
complete the recruitment process.
45 24 21 Overachievement due to HR interviewing bus
drivers and keeping those recommended for
employment in the data base
Target for 2013/2014 to be increased to 30 days
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.2.1 Improve employment equity
levels by ensuring that 22% of
all Funded Positions are held by
Women
0094 % of funded positions held by
Women
22 19 3 HR not getting enough female applicants in core
programmes that constitute bigger number of
Corporation employees
HR will initiate skills development programmes
targeting females
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.2.2 Improve employment equity
levels of MTC by employing a
physically challenged person
annually
0095 Number of Persons with
disabilities Employed.
1 1 0 Not applicable. Target Achieved. Not required
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.3.1 Approved HR Plan in place by 31
March 2013
0096 % approved HR Plan developed
and reviewed.
100 25 75 Not achieved due to time constraints and the
amount of work needed to be done
A consultant will be engaged to assist in finalising
the document
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.3.3 28 Women selected for
Management and Development
Programmes
0098 Number of women selected
for Management Development
Programmes.
14 0 14 Positions that were filled by males in Q3 were for
two diesel mechanics and three bus drivers. There
were no female applicants for these positions.
Recruitment targeting women applicants
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.1 100% Compliance with Minimum
Physical Security Standards
Compliance Checklist
0099 % Compliance with set Minimum
Physical Security Standards.
100 0 100 Policy was approved late Q4 only Compliance will be monitored as from the new
financial year
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.2 Approved Corporation security
policy with sets standards for
personnel, vehicles, information,
facilities and environment.
0100 Corporation Security Policy
Approved
1 1 0 Not applicable. Target Achieved. Not required
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.3 2 Reports on implementation
of the Approved Security Policy
submitted to Management and
the Board
0101 Approved quarterly reports on the
implementation of the Security
Policy.
2 0 2 Policy was approved late Q4 only Compliance will be monitored as from the new
financial year
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.2.1 100% of short-listed candidates
vetted before employment.
0104 % of personnel suitability check
reports issued on individual
short-listed candidates before
employment.
100 0 100 Policy not approved Policy will be resubmitted to the Board in May
2013
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.3. Implementation of organisation wide
Performance Management System
1.3.1.4 100% Compliance with identified
Human Resources legislation
0020 % Compliance with identified
Human Resources related
legislation
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.2 Unqualified human resource
management audit report
0044 Number of Human Resource
Management qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.7 Human Resources maximum
budget variance of 5 percent
maintained
0059 % Budget Variance Maintained 5 - - The actual performance cannot be determined
as expenditure against budget for the HR
Management Department is not yet being tracked
by the Financial Management System.
Finance Division to ensure that the HR
Management Budget is loaded onto the Financial
Management System (Pastel Evolution)
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.4 75% Compliance with the
approved Security Compliance
Policy
0102 % Compliance with the approved
Security Compliance Policy
75 0 75 Policy was approved late Q4 only Compliance will be monitored as from the new
financial year
SERVICE DELIVERY OBJECTIVES, INDICATORS AND ACHIEVEMENTS
The Human Resource Management Department has been able to demonstrate results against its predetermined
objectives as indicated below:
PAGE
47
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.4.1 Conclude all enquiry's and
appeals within 30 days from
start of case under normal
circumstances
0089 Maximum number of days to
finalise disciplinary hearings.
30 12.74 17 Target exceeded Presiding officers expediting
enquiries
Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.4.2 Unresolved grievances promote
toxic conversation amongst
the workforce; this may lead to
instability. Grievances shall be
resolved within 10 days
0090 Average number of days to
resolve internal disputes.
10 4 6 Target exceeded Presiding officers expediting
enquiries
Not required
1.9. Implement an individual Performance
Management and Development System
(PMDS)
1.9.4.3 2 Workshops held on dealing
with Industrial Relations matters
for Managers at all levels
0091 Number of workshops on
Grievance Management, Work
Ethics and Chairing Disciplinary
enquiries.
2 2 0 Not applicable. Target Achieved. Not required
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.1.1 Maximum Vacancy Rate of 5% for
all Funded Positions
0092 Average vacancy % rate in the
Corporation
5 3.22 1.78 Target exceeded due to consistent monitoring by
HR and sending notices to programmes re vacant
positions
Not applicable. Target partially exceeded
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.1.2 Vacant positions filled within six
weeks of approved request
0093 Average number of days to
complete the recruitment process.
45 24 21 Overachievement due to HR interviewing bus
drivers and keeping those recommended for
employment in the data base
Target for 2013/2014 to be increased to 30 days
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.2.1 Improve employment equity
levels by ensuring that 22% of
all Funded Positions are held by
Women
0094 % of funded positions held by
Women
22 19 3 HR not getting enough female applicants in core
programmes that constitute bigger number of
Corporation employees
HR will initiate skills development programmes
targeting females
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.2.2 Improve employment equity
levels of MTC by employing a
physically challenged person
annually
0095 Number of Persons with
disabilities Employed.
1 1 0 Not applicable. Target Achieved. Not required
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.3.1 Approved HR Plan in place by 31
March 2013
0096 % approved HR Plan developed
and reviewed.
100 25 75 Not achieved due to time constraints and the
amount of work needed to be done
A consultant will be engaged to assist in finalising
the document
1.10. Develop and implement an Integrated
Human Resource Plan
1.10.3.3 28 Women selected for
Management and Development
Programmes
0098 Number of women selected
for Management Development
Programmes.
14 0 14 Positions that were filled by males in Q3 were for
two diesel mechanics and three bus drivers. There
were no female applicants for these positions.
Recruitment targeting women applicants
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.1 100% Compliance with Minimum
Physical Security Standards
Compliance Checklist
0099 % Compliance with set Minimum
Physical Security Standards.
100 0 100 Policy was approved late Q4 only Compliance will be monitored as from the new
financial year
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.2 Approved Corporation security
policy with sets standards for
personnel, vehicles, information,
facilities and environment.
0100 Corporation Security Policy
Approved
1 1 0 Not applicable. Target Achieved. Not required
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.3 2 Reports on implementation
of the Approved Security Policy
submitted to Management and
the Board
0101 Approved quarterly reports on the
implementation of the Security
Policy.
2 0 2 Policy was approved late Q4 only Compliance will be monitored as from the new
financial year
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.2.1 100% of short-listed candidates
vetted before employment.
0104 % of personnel suitability check
reports issued on individual
short-listed candidates before
employment.
100 0 100 Policy not approved Policy will be resubmitted to the Board in May
2013
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.3. Implementation of organisation wide
Performance Management System
1.3.1.4 100% Compliance with identified
Human Resources legislation
0020 % Compliance with identified
Human Resources related
legislation
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.2 Unqualified human resource
management audit report
0044 Number of Human Resource
Management qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.7 Human Resources maximum
budget variance of 5 percent
maintained
0059 % Budget Variance Maintained 5 - - The actual performance cannot be determined
as expenditure against budget for the HR
Management Department is not yet being tracked
by the Financial Management System.
Finance Division to ensure that the HR
Management Budget is loaded onto the Financial
Management System (Pastel Evolution)
1.11. Implement an effective and efficient
inspectorate and safe operating
environment
1.11.1.4 75% Compliance with the
approved Security Compliance
Policy
0102 % Compliance with the approved
Security Compliance Policy
75 0 75 Policy was approved late Q4 only Compliance will be monitored as from the new
financial year
PAGE
48
STRATEGIC GOAL
Render a safe, afordable and reliable service.
PURPOSE
The purpose of the Engineering Programme is to ensure the efcient and efective provision of public transport services
through a safe and reliable feet at all depots of the MTC. The Programme is responsible for all the corporations feet
related activities, the management of inventory as well as facilities and infrastructure management.
PROGRAMME STRUCTURE
Tyre Section Warehouse function Maintenance Section Facility planning
PROGRAMME 5
Engineering
OVERVIEW OF DEPARTMENTAL PERFORMANCE
The Engineering Department
operates within the provisions of the
statutes that are applicable to the
transport industry; which includes,
but not limited to, the provisions of
the National Road Trafc Act and
the Occupational Health and Safety
Act. We continuously have to adapt
to changes in such statutes and the
recent highlight is the introduction of
half-yearly roadworthy tests on buses
in order to enhance road safety. It has
become a norm to undertake major
body repairs as part of preparing
the old buses for roadworthy tests.
More than half of our feet is older
than 15 years into the operation and
this afects maintenance costs and
service reliability.
The introduction of Corporate
Performance Management and the
Employee Performance Management
and Development System, which
was adopted by the Board, has been
quite challenging for departments. It
seeks to instill a culture of planning
for a medium term period, setting of
predetermined objectives, monitoring
performance against such objectives,
managing risks of non-performance
by introducing remedial actions in
the interest of service delivery. It is
also meant to remove the subjectivity
in performance management of
staf which should inherently boost
the staf morale. Admittedly, the
department did not perform well
during the period under review. At
the time of compiling the report,
the department had already had an
all-inclusive workshop of staf in
order to continue to educate them on
the systems and its objectives. We
strongly believe that the worst is over
in this area.

The division managed to engage
a qualifed mechanical engineer
within the reporting period as part
of capacitating the department.
Other measures that were aimed
at equipping staf on modern
technology through requisite skills
did not yield results due to non-
availability of training providers in the
province. We fnd ourselves having
to send employees to provinces
like Gauteng for the relevant skills
programs and this will come at a cost.
PAGE
49
It is this challenge that resulted
in 54% performance on identifed
training interventions.
In spite of conditions that are not
conducive to proper training and
development within our facilities,
the corporation is proud to report
that two automotive electrician
apprentices acquired artisanship
during the period under review.
The Corporation absorbed both of
them as permanent employees in
two diferent depots in positions
that existed before they qualifed.
We are proud of our contribution
towards opening opportunities
and empowering the youth to be
absorbed by the market.
A 96% performance score in the
area of providing ft for duty buses
impacted negatively on service
reliability. We have identifed
gaps within the spares demand
management which will be
addressed through institutionalized
engagement with the SCM unit in
order to address some of the
inefciencies that have impacted
negatively on the departments
performance. Within the department,
we shall continue to instill the
Batho Pele principle within our
divisional staf.

The entity is in the process of
acquiring an electronic feet
management system which will
be a management tool to monitor
and track vehicle movements as
well as driver performance. It is
through the system that exceptions
will be automatically reported on
for management to take corrective
action. Some benefts will include
monitoring of service punctuality,
vehicle misuse, and some vehicle
defects that may lead to major
breakdowns as well as safety of
passengers and other road users.
Lastly, the refurbishment project
proved to be one of important
investments that continually
contributes to the sustenance of
the operations by rebuilding the old
buses in order to return them to their
original condition.
PAGE
50
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
2.1. Enhance vehicle availability 2.1.1.1 To transport 1 900 000
passengers by running 52
registered public transport
vehicles
0105 Number of registered Public
Transport Vehicles.
52 47.92 4 Two buses were involved in major accidents
during quarter 2; one was being refurbished, one
as a cracked chassis and the rest had major unit
failures from gearboxes to engines and diffs.
A strategy incorporating back-up levels of
major units, oil analysis to inform predictive
maintenance and training interventions to
capacitate staff on identified challenges ito WSP
is being developed.
2.1. Enhance vehicle availability 2.1.3.1 Make available 25 pool vehicles
for use by employees in the
support functions
0109 Number of pool vehicles made
available at any given time.
25 0 25 Required evidence in support of performance
claims could not be generated
A system to monitor pool vehicles will be costed
for the 2013/2014 budget and utilised as from the
new financial year
2.2. Implement fleet maintenance and
refurbishment program
2.2.1.2 Carry out 462 major services in
order to achieve at least 650,000
kilometres of useful life on all
buses.
0110 Number of major services carried
out as per service plan.
300 259 41 The number of buses that are pulled out of
operations when being prepared for COFs
reduced the mileage resulting in fewer services
carried out during the quarter.
Backlog in COFs will persist for the next three
months. As buses are not operational while
being prepared for COF, they don't accumulate
kilometres hence the number is below the target.
2.2. Implement fleet maintenance and
refurbishment program
2.2.1.3 Adherence to the provisions of
Section 42 of the National Road
Traffic Act, Act No. 93 of 1996 as
amended
0111 Number of roadworthy tests
conducted on all operational
buses.
100 86 14 The suspension of service providers that were
non-compliant to SCM policy resulted in longer
turn-around as services were not readily available.
This was exacerbated by BPO system glitches
that affected stock demand management.
With more controls within SCM, constant
monitoring of supplier compliance will be
achieved resulting in smooth operation. Pastel
evolution implementation, integrating inventory
module shall go a long way in stock management
2.3. Enhance passenger safety 2.3.1.1 To achieve a ratio of 1 accident
to 75,000 kilometres travelled
by pool vehicles and 1: 200,000
for buses.
0112 Number of safety checks carried
out
5,200 3,824 1,376 The suspension of service providers that were
non-compliant to SCM policy resulted in longer
turn-around as services were not readily available.
This was exacerbated by BPO system glitches
that affected stock demand management.
With more controls within SCM, constant
monitoring of supplier compliance will be
achieved resulting in smooth operation. Pastel
evolution implementation, integrating inventory
module shall go a long way in stock management
2.3. Enhance passenger safety 2.3.1.2 26 Fortnightly Safety Audits
Conducted by Foreman
0113 Number of Safety Audits
conducted on a fortnight basis by
the Foreman.
26 27 -1 Not applicable. Target partially exceeded Not applicable. Target partially exceeded
2.3. Enhance passenger safety 2.3.1.2 26 Fortnightly Safety Audits
Conducted by Foreman
0114 Number of safety audit forms
reviewed by HOD
12 12 0 Not applicable. Target Achieved. Not required
2.4. Ensure adequate and conducive
infrastructure for productive operations
2.4.2.1 To give effect to the provisions
of Employment Equity Act and
Paragraph 7,3 of its code of good
practice
0121 Condition and accessibility
assessment conducted per
annum.
1 1 0 Not applicable. Target Achieved. Not required
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.8 2 Engineering (Engineering
Programme) strategic risk
reduced to an acceptable level
0008 Number of Engineering strategic
risks reduced to an acceptable
level
2 0 2 The recapitalisation plan remains unfunded
resulting in the Corporation no being able to
recapitalise its fleet
MTC's efforts include a request that was
submitted for R89,4 m from the National
department for the implementation of MTC's
Business Model for which no response has
been received as at the end of January 2013.
Application to change MTC's status in order to
access certain loans is also being pursued.
1.3. Implementation of organisation wide
Performance Management System
1.3.1.2 100% Compliance with identified
Engineering related legislation
0018 % Compliance with identified
Engineering related legislation
100 0 100 Due to operational reasons the evidence in
support of calculating the performance could not
be submitted
An Analyst will be recruited in the new financial
year to assist the department in availing its
performance evidence
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.6 Unqualified engineering
management audit report
0048 Number of engineering
management qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.9 Engineering maximum budget
variance of 5 percent maintained
0061 % Budget Variance Maintained 5 - - The actual performance cannot be determined as
expenditure against budget for the Engineering
Department is not yet being tracked by the
Financial Management System.
Finance Division to ensure that the Engineering
Budget is loaded onto the Financial Management
System (Pastel Evolution)
2.1. Enhance vehicle availability 2.1.1.2 Fully utilise the R5m grant in aid
from the MEC policy speech by
leasing 11 buses
0106 Number of busses leased 11 11 0 Not applicable. Target Achieved. Not required
2.1. Enhance vehicle availability 2.1.1.3 Secure a funded recapitalisation
plan to the value R36.8 million
0107 Million ZAR value of approved
Recapitalisation Plan
37 0 37 The entity did not succeed in securing the
required funding.
The entity will further pursue the initiatives with
the National Department of Transport. Other
measures include consideration of changing the
status of the entity to enable it to access loans.
2.1. Enhance vehicle availability 2.1.1.4 Fully adhere to Maintenance and
Service Schedule
0108 % of Maintenance and Service
Schedule Adhered to
100 0 100 The target was duplicated in that Performance
Indicator 000110 also talks to the services
All duplicate indicators have been removed
2.3. Enhance passenger safety 2.3.2.2 Zero accidents caused by MTC as
a result of mechanical defects
0116 Number of accidents caused by
MTC due to mechanical defects
0 0 0 Not applicable. Target Achieved. Not required
2.4. Ensure adequate and conducive
infrastructure for productive operations
2.4.1.1 100% Average compliance with
Building Maintenance Policy
0120 % Compliance with Building
Maintenance Policy
100 0 100 Due to capacity constraints, the policy was not
concluded in time for adoption by the Board
The policy is being formulated with the target
deadline being the end of the first quarter.
SERVICE DELIVERY OBJECTIVES, INDICATORS AND ACHIEVEMENTS
The Engineering Department has been able to demonstrate results against its measurable objectives as indicated below:
PAGE
51
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
2.1. Enhance vehicle availability 2.1.1.1 To transport 1 900 000
passengers by running 52
registered public transport
vehicles
0105 Number of registered Public
Transport Vehicles.
52 47.92 4 Two buses were involved in major accidents
during quarter 2; one was being refurbished, one
as a cracked chassis and the rest had major unit
failures from gearboxes to engines and diffs.
A strategy incorporating back-up levels of
major units, oil analysis to inform predictive
maintenance and training interventions to
capacitate staff on identified challenges ito WSP
is being developed.
2.1. Enhance vehicle availability 2.1.3.1 Make available 25 pool vehicles
for use by employees in the
support functions
0109 Number of pool vehicles made
available at any given time.
25 0 25 Required evidence in support of performance
claims could not be generated
A system to monitor pool vehicles will be costed
for the 2013/2014 budget and utilised as from the
new financial year
2.2. Implement fleet maintenance and
refurbishment program
2.2.1.2 Carry out 462 major services in
order to achieve at least 650,000
kilometres of useful life on all
buses.
0110 Number of major services carried
out as per service plan.
300 259 41 The number of buses that are pulled out of
operations when being prepared for COFs
reduced the mileage resulting in fewer services
carried out during the quarter.
Backlog in COFs will persist for the next three
months. As buses are not operational while
being prepared for COF, they don't accumulate
kilometres hence the number is below the target.
2.2. Implement fleet maintenance and
refurbishment program
2.2.1.3 Adherence to the provisions of
Section 42 of the National Road
Traffic Act, Act No. 93 of 1996 as
amended
0111 Number of roadworthy tests
conducted on all operational
buses.
100 86 14 The suspension of service providers that were
non-compliant to SCM policy resulted in longer
turn-around as services were not readily available.
This was exacerbated by BPO system glitches
that affected stock demand management.
With more controls within SCM, constant
monitoring of supplier compliance will be
achieved resulting in smooth operation. Pastel
evolution implementation, integrating inventory
module shall go a long way in stock management
2.3. Enhance passenger safety 2.3.1.1 To achieve a ratio of 1 accident
to 75,000 kilometres travelled
by pool vehicles and 1: 200,000
for buses.
0112 Number of safety checks carried
out
5,200 3,824 1,376 The suspension of service providers that were
non-compliant to SCM policy resulted in longer
turn-around as services were not readily available.
This was exacerbated by BPO system glitches
that affected stock demand management.
With more controls within SCM, constant
monitoring of supplier compliance will be
achieved resulting in smooth operation. Pastel
evolution implementation, integrating inventory
module shall go a long way in stock management
2.3. Enhance passenger safety 2.3.1.2 26 Fortnightly Safety Audits
Conducted by Foreman
0113 Number of Safety Audits
conducted on a fortnight basis by
the Foreman.
26 27 -1 Not applicable. Target partially exceeded Not applicable. Target partially exceeded
2.3. Enhance passenger safety 2.3.1.2 26 Fortnightly Safety Audits
Conducted by Foreman
0114 Number of safety audit forms
reviewed by HOD
12 12 0 Not applicable. Target Achieved. Not required
2.4. Ensure adequate and conducive
infrastructure for productive operations
2.4.2.1 To give effect to the provisions
of Employment Equity Act and
Paragraph 7,3 of its code of good
practice
0121 Condition and accessibility
assessment conducted per
annum.
1 1 0 Not applicable. Target Achieved. Not required
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.8 2 Engineering (Engineering
Programme) strategic risk
reduced to an acceptable level
0008 Number of Engineering strategic
risks reduced to an acceptable
level
2 0 2 The recapitalisation plan remains unfunded
resulting in the Corporation no being able to
recapitalise its fleet
MTC's efforts include a request that was
submitted for R89,4 m from the National
department for the implementation of MTC's
Business Model for which no response has
been received as at the end of January 2013.
Application to change MTC's status in order to
access certain loans is also being pursued.
1.3. Implementation of organisation wide
Performance Management System
1.3.1.2 100% Compliance with identified
Engineering related legislation
0018 % Compliance with identified
Engineering related legislation
100 0 100 Due to operational reasons the evidence in
support of calculating the performance could not
be submitted
An Analyst will be recruited in the new financial
year to assist the department in availing its
performance evidence
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.6 Unqualified engineering
management audit report
0048 Number of engineering
management qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.9 Engineering maximum budget
variance of 5 percent maintained
0061 % Budget Variance Maintained 5 - - The actual performance cannot be determined as
expenditure against budget for the Engineering
Department is not yet being tracked by the
Financial Management System.
Finance Division to ensure that the Engineering
Budget is loaded onto the Financial Management
System (Pastel Evolution)
2.1. Enhance vehicle availability 2.1.1.2 Fully utilise the R5m grant in aid
from the MEC policy speech by
leasing 11 buses
0106 Number of busses leased 11 11 0 Not applicable. Target Achieved. Not required
2.1. Enhance vehicle availability 2.1.1.3 Secure a funded recapitalisation
plan to the value R36.8 million
0107 Million ZAR value of approved
Recapitalisation Plan
37 0 37 The entity did not succeed in securing the
required funding.
The entity will further pursue the initiatives with
the National Department of Transport. Other
measures include consideration of changing the
status of the entity to enable it to access loans.
2.1. Enhance vehicle availability 2.1.1.4 Fully adhere to Maintenance and
Service Schedule
0108 % of Maintenance and Service
Schedule Adhered to
100 0 100 The target was duplicated in that Performance
Indicator 000110 also talks to the services
All duplicate indicators have been removed
2.3. Enhance passenger safety 2.3.2.2 Zero accidents caused by MTC as
a result of mechanical defects
0116 Number of accidents caused by
MTC due to mechanical defects
0 0 0 Not applicable. Target Achieved. Not required
2.4. Ensure adequate and conducive
infrastructure for productive operations
2.4.1.1 100% Average compliance with
Building Maintenance Policy
0120 % Compliance with Building
Maintenance Policy
100 0 100 Due to capacity constraints, the policy was not
concluded in time for adoption by the Board
The policy is being formulated with the target
deadline being the end of the first quarter.
PAGE
52
STRATEGIC GOAL
Institutionalise operations best practices.
PURPOSE
The purpose of the Operations Programme is to ensure the efcient and efective management all the operational
activities of the MTC. The Programme is responsible for coordination of bus services on all routes, the enhancing of
revenue streams and the coordination of capital fund expenditure.
PROGRAMME STRUCTURE
Operations Management Route Supervision Trafc Management
PROGRAMME 6
Operations
OVERVIEW OF DEPARTMENTAL PERFORMANCE
Operations took advantage of the newly implemented Corporate and Employee Performance Management Systems implemented by the Office
of Strategic Management and through effective management of staff performance we were able to:
a) Achieve 82% of our annual
targets; a performance which was
achieved under very strenuous
and unfavourable conditions as
the Corporations is operating with
insufcient resources.
b) We managed to maximise our
revenue by collecting R27 606 895
total revenue exceeding our target
by 9.6%.
We have also managed to improve
on service delivery as our targets
have for the frst since the
implementation of the Performance
Information System passed the
SMART (Specifc, Measurable,
Achievable, Realistic, Time bound)
test. We take this opportunity
to thank the Ofce of Strategic
Management for their support and
guidance in this regard.
Non-implementation of the
approved Annual Operational Plan
into the fnancial system has cost
us in some aspects as we could not
monitor our budget and spending
pattern throughout the year and
this has negatively impacted our
performance as we could not
produce credible evidence from the
system regarding our expenditure.
PAGE
53
PAGE
54
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
2.3. Enhance passenger safety 2.3.3.2 Improve passenger safety
by training 30 drivers on
professional and defensive
driving techniques
0118 Number of drivers who
have completed training on
professional and defensive
driving.
30 45 -15 Provision was made in the 2012/2013 budget
for training of drivers over and above the WSP
training budget. We were therefore able to train
more drivers.
The 2013/2014 target will be aligned to the total
available budget.
2.3. Enhance passenger safety 2.3.3.3 All drivers to be medically
assessed and declared fit bi-
annually
0119 Number of bi-annual medical
examinations on all drivers
conducted.
2 2 0 Not applicable. Target Achieved. Not required
3.1. Improve driver performance 3.1.1.1 Increase efficiency and safety
in driving by assessing driver
performance bi-annually
0122 Number of driver performance
assessments conducted
2 2 0 Not applicable. Target Achieved. Not required
3.1. Improve driver performance 3.1.1.2 Increase awareness on relevant
legislation.
0123 Number of workshops provided
to drivers on legislative
requirements
2 3 -1 Target exceeded. A free session was hosted by
the Department of Transport
Not required
3.2. Increase ridership 3.2.2.1 Ensure that the service rendered
is in line with the customer needs
by conducting 4 commuter
meetings
0126 Number of commuter meetings
conducted
4 11 -7 More meetings were arranged due to requests
from communities and to discuss the bus fare
increase
Upward performance is desirable as it
strengthens relations between MTC and its
commuters.
3.2. Increase ridership 3.2.2.2 Render a reliable service that
will attract more customers by
ensuring that a minimum of 80%
of all buses adhere to published
or official time schedules
0127 % of buses that adhere to
published or official time
schedules.
80 98.93 -18.93 Monitoring systems implemented between
Operations and Engineering in terms of the AOP
have assisted in the early dispatching of buses.
Increase the target for 2013/2014
3.2. Increase ridership 3.2.2.5 Provide services at affordable
rates to the poor communities
by ensuring that the fee increase
does not exceed 10%
0130 % of Fares not increased by more
than 10%
100 100 0 Not applicable. Target Achieved. Not required
3.2. Increase ridership 3.2.2.7 Ensure that MTC is responsive
to the socio-economic
challenges facing the Province
by implementing a minimum
of 10% discounted fares on all
pensioners, scholars; multi-
journeys and Stored value
tickets.
0132 % of all pensioners, scholars;
multi-journeys and Stored value
tickets discounted by 10% or
more.
100 0 100 The report generated by Questek does not back
the performance claims made
Further research and development has been
requested from Questek so that a credible report
will be available as from Q1 2013/2014
3.2. Increase ridership 3.2.2.8 To ensure MTC customer service
excellence by training 40 drivers
on customer care
0133 Number of drivers trained on
customer care
40 48 -8 Due to operational reasons additional drivers
were available for the training. It is MTC's desire
to train more drivers on customer care as we
believe that customer services orientated staff will
enhance the reputation of the company.
Not applicable. Target partially exceeded
3.3. Maximise Revenue 3.3.2.1 19503 Spot Checks conducted
by inspectors to ensure that all
tickets are issued in support of
completeness of revenue
0137 Number of Spot Checks
conducted by inspectors
19,503 22,265 -2,762 The target was partially exceeded due to the
availability of vehicles
The target for 2013/2014 has been increased
3.3. Maximise Revenue 3.3.4.1 To maximise revenue by
achieving 100% of set targets
0140 % of set route targets achieved. 100 100 0 Not applicable. Target Achieved. Not required
3.3. Maximise Revenue 3.3.4.2 Revenue collection is accurate,
complete and accounted for by
reconciling variances identified in
Q-merit reports.
0141 % of Q-merit reports monitored
and reconciled
100 100 0 Not applicable. Target Achieved. Not required
3.3. Maximise Revenue 3.3.4.3 To operate optimally by covering
50 duties
0142 Number of duties to be operated. 50 51 -1 MTC operated special trips on granting days as
per requests from pensioners.
Not required. Target partially exceeded
3.3. Maximise Revenue 3.3.4.4 Scheduled maintenance of TGX
Machines to avoid irregular usage
of emergency tickets
0143 Number of scheduled
maintenance for TGX Machines
conducted
4 4 0 Not applicable. Target Achieved. Not required
SERVICE DELIVERY OBJECTIVES, INDICATORS AND ACHIEVEMENTS
The Operations Department has been able to demonstrate results against its measurable objectives as indicated below:
PAGE
55
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: MEC approved Annual Performance Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
2.3. Enhance passenger safety 2.3.3.2 Improve passenger safety
by training 30 drivers on
professional and defensive
driving techniques
0118 Number of drivers who
have completed training on
professional and defensive
driving.
30 45 -15 Provision was made in the 2012/2013 budget
for training of drivers over and above the WSP
training budget. We were therefore able to train
more drivers.
The 2013/2014 target will be aligned to the total
available budget.
2.3. Enhance passenger safety 2.3.3.3 All drivers to be medically
assessed and declared fit bi-
annually
0119 Number of bi-annual medical
examinations on all drivers
conducted.
2 2 0 Not applicable. Target Achieved. Not required
3.1. Improve driver performance 3.1.1.1 Increase efficiency and safety
in driving by assessing driver
performance bi-annually
0122 Number of driver performance
assessments conducted
2 2 0 Not applicable. Target Achieved. Not required
3.1. Improve driver performance 3.1.1.2 Increase awareness on relevant
legislation.
0123 Number of workshops provided
to drivers on legislative
requirements
2 3 -1 Target exceeded. A free session was hosted by
the Department of Transport
Not required
3.2. Increase ridership 3.2.2.1 Ensure that the service rendered
is in line with the customer needs
by conducting 4 commuter
meetings
0126 Number of commuter meetings
conducted
4 11 -7 More meetings were arranged due to requests
from communities and to discuss the bus fare
increase
Upward performance is desirable as it
strengthens relations between MTC and its
commuters.
3.2. Increase ridership 3.2.2.2 Render a reliable service that
will attract more customers by
ensuring that a minimum of 80%
of all buses adhere to published
or official time schedules
0127 % of buses that adhere to
published or official time
schedules.
80 98.93 -18.93 Monitoring systems implemented between
Operations and Engineering in terms of the AOP
have assisted in the early dispatching of buses.
Increase the target for 2013/2014
3.2. Increase ridership 3.2.2.5 Provide services at affordable
rates to the poor communities
by ensuring that the fee increase
does not exceed 10%
0130 % of Fares not increased by more
than 10%
100 100 0 Not applicable. Target Achieved. Not required
3.2. Increase ridership 3.2.2.7 Ensure that MTC is responsive
to the socio-economic
challenges facing the Province
by implementing a minimum
of 10% discounted fares on all
pensioners, scholars; multi-
journeys and Stored value
tickets.
0132 % of all pensioners, scholars;
multi-journeys and Stored value
tickets discounted by 10% or
more.
100 0 100 The report generated by Questek does not back
the performance claims made
Further research and development has been
requested from Questek so that a credible report
will be available as from Q1 2013/2014
3.2. Increase ridership 3.2.2.8 To ensure MTC customer service
excellence by training 40 drivers
on customer care
0133 Number of drivers trained on
customer care
40 48 -8 Due to operational reasons additional drivers
were available for the training. It is MTC's desire
to train more drivers on customer care as we
believe that customer services orientated staff will
enhance the reputation of the company.
Not applicable. Target partially exceeded
3.3. Maximise Revenue 3.3.2.1 19503 Spot Checks conducted
by inspectors to ensure that all
tickets are issued in support of
completeness of revenue
0137 Number of Spot Checks
conducted by inspectors
19,503 22,265 -2,762 The target was partially exceeded due to the
availability of vehicles
The target for 2013/2014 has been increased
3.3. Maximise Revenue 3.3.4.1 To maximise revenue by
achieving 100% of set targets
0140 % of set route targets achieved. 100 100 0 Not applicable. Target Achieved. Not required
3.3. Maximise Revenue 3.3.4.2 Revenue collection is accurate,
complete and accounted for by
reconciling variances identified in
Q-merit reports.
0141 % of Q-merit reports monitored
and reconciled
100 100 0 Not applicable. Target Achieved. Not required
3.3. Maximise Revenue 3.3.4.3 To operate optimally by covering
50 duties
0142 Number of duties to be operated. 50 51 -1 MTC operated special trips on granting days as
per requests from pensioners.
Not required. Target partially exceeded
3.3. Maximise Revenue 3.3.4.4 Scheduled maintenance of TGX
Machines to avoid irregular usage
of emergency tickets
0143 Number of scheduled
maintenance for TGX Machines
conducted
4 4 0 Not applicable. Target Achieved. Not required
PAGE
56
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.7 1 Operations (Operations
Programme) strategic risk
reduced to an acceptable level
0007 Number of Operations strategic
risks reduced to an acceptable
level
1 0 1 Due to the delayed approval of the
recapitalisation plan, the mitigation systems in
support of Operations and Engineering risks
could not be implemented.
The recapitalisation plan has been resubmitted
to Treasury and the Corporation is awaiting
feedback.
1.3. Implementation of organisation wide
Performance Management System
1.3.1.3 100% Compliance with identified
Operations related legislation
0019 % Compliance with identified
Operations related legislation
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.5 Unqualified operations
management audit report
0047 Number of operations
management qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.8 Operations maximum budget
variance of 5 percent maintained
0060 % Budget Variance Maintained 5 - - The actual performance cannot be determined
as expenditure against budget for the
Operations Department is not yet being tracked
by the Financial Management System.
Finance Division to ensure that the Operations
Budget is loaded onto the Financial
Management System (Pastel Evolution)
2.3. Enhance passenger safety 2.3.3.1 Zero accidents caused by MTC
drivers
0117 Number of accidents caused by
MTC drivers
0 3 -3 The indicator was not realistic as one has
minimal control over driver behaviour once they
are on the road.
The indicator was improved in the 2013/2014
AOP to read as follows: Number of accidents
caused by MTC due to mechanical defects
3.2. Increase ridership 3.2.1.1 Ensure an average customer
satisfaction rate of 70%
0124 Average Customer Satisfaction
Rate
70 88 -18 We did not have a baseline for this indicator. We have increased our target for 2013/2014
based on the actual results for 2012/2013.
3.2. Increase ridership 3.2.2.3 All drivers appropriately dressed
by ensuring that 100% of drivers
are issued with the complete
uniform allocation
0128 % of Drivers issued with uniform
allocation
100 0 100 The purchasing of uniform coincided with
the review of the policy which resulted in
magagement not being able to buy uniform in
the 2012/2013 financial year as planned.
The target has been included in the 2013/2014
AOP
3.2. Increase ridership 3.2.2.4 100% Compliance with Driver of
the Year Policy
0129 % Compliance with Driver of the
Year Policy
100 100 0 Not applicable. Target Achieved. Not required
3.2. Increase ridership 3.2.2.6 Tarriff guide developed and
aproved by the Board to support
fare increases for the 2013/2014
financial year.
0131 Number of approved tariff guides 1 1 0 Not applicable. Target Achieved. Not required
3.3. Maximise Revenue 3.3.1.1 Generate own revenue to the
value of R25 360 764
0134 ZAR value of own revenue
generated
25,036,764 27,519,232 -2,482,468 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.1.2 Generate on-route revenue to the
value of R20 515 522
0135 ZAR value of on-route revenue
generated
20,515,522 22,915,890 -2,400,368 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.1.3 Generate private hire revenue to
the value of R4 521 242
0136 ZAR value of private-hire revenue
generated
4,521,242 4,603,342 -82,100 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.3.1 Transport 2,339, 400 passengers
in the current financial year
0138 Number of passengers
transported by MTC
2,339,400 2,261,353 78,047 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.3.2 Ensure accessibility of MTC
services in all designated
routes by travelling 2,203 100
kilometres during the year
0139 Number of kilometres travelled in
all designated routes
2,203,088 2,349,945 -146,857 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
PAGE
57
PERFORMANCE AGAINST PREDETERMINED OBJECTIVES: Board approved Annual Operational Plan 2012/2013
Strategic Objective Measurable Objective Service Delivery Indicators Target Actual Deviation Challenges/Reasons for non-performance Plans to address challenges/Non-performance
1.1. Provide Strategic direction through
effective leadership and good governance
1.1.1.7 1 Operations (Operations
Programme) strategic risk
reduced to an acceptable level
0007 Number of Operations strategic
risks reduced to an acceptable
level
1 0 1 Due to the delayed approval of the
recapitalisation plan, the mitigation systems in
support of Operations and Engineering risks
could not be implemented.
The recapitalisation plan has been resubmitted
to Treasury and the Corporation is awaiting
feedback.
1.3. Implementation of organisation wide
Performance Management System
1.3.1.3 100% Compliance with identified
Operations related legislation
0019 % Compliance with identified
Operations related legislation
100 100 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.1.5 Unqualified operations
management audit report
0047 Number of operations
management qualifications
0 0 0 Not applicable. Target Achieved. Not required
1.6. Maintain reliable and sustainable
Financial Management practices
1.6.5.8 Operations maximum budget
variance of 5 percent maintained
0060 % Budget Variance Maintained 5 - - The actual performance cannot be determined
as expenditure against budget for the
Operations Department is not yet being tracked
by the Financial Management System.
Finance Division to ensure that the Operations
Budget is loaded onto the Financial
Management System (Pastel Evolution)
2.3. Enhance passenger safety 2.3.3.1 Zero accidents caused by MTC
drivers
0117 Number of accidents caused by
MTC drivers
0 3 -3 The indicator was not realistic as one has
minimal control over driver behaviour once they
are on the road.
The indicator was improved in the 2013/2014
AOP to read as follows: Number of accidents
caused by MTC due to mechanical defects
3.2. Increase ridership 3.2.1.1 Ensure an average customer
satisfaction rate of 70%
0124 Average Customer Satisfaction
Rate
70 88 -18 We did not have a baseline for this indicator. We have increased our target for 2013/2014
based on the actual results for 2012/2013.
3.2. Increase ridership 3.2.2.3 All drivers appropriately dressed
by ensuring that 100% of drivers
are issued with the complete
uniform allocation
0128 % of Drivers issued with uniform
allocation
100 0 100 The purchasing of uniform coincided with
the review of the policy which resulted in
magagement not being able to buy uniform in
the 2012/2013 financial year as planned.
The target has been included in the 2013/2014
AOP
3.2. Increase ridership 3.2.2.4 100% Compliance with Driver of
the Year Policy
0129 % Compliance with Driver of the
Year Policy
100 100 0 Not applicable. Target Achieved. Not required
3.2. Increase ridership 3.2.2.6 Tarriff guide developed and
aproved by the Board to support
fare increases for the 2013/2014
financial year.
0131 Number of approved tariff guides 1 1 0 Not applicable. Target Achieved. Not required
3.3. Maximise Revenue 3.3.1.1 Generate own revenue to the
value of R25 360 764
0134 ZAR value of own revenue
generated
25,036,764 27,519,232 -2,482,468 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.1.2 Generate on-route revenue to the
value of R20 515 522
0135 ZAR value of on-route revenue
generated
20,515,522 22,915,890 -2,400,368 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.1.3 Generate private hire revenue to
the value of R4 521 242
0136 ZAR value of private-hire revenue
generated
4,521,242 4,603,342 -82,100 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.3.1 Transport 2,339, 400 passengers
in the current financial year
0138 Number of passengers
transported by MTC
2,339,400 2,261,353 78,047 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
3.3. Maximise Revenue 3.3.3.2 Ensure accessibility of MTC
services in all designated
routes by travelling 2,203 100
kilometres during the year
0139 Number of kilometres travelled in
all designated routes
2,203,088 2,349,945 -146,857 Describe the reason for the deviation Enter your corrective measures to rectify the
variance and prevent future variances
PAGE
58
2012I 13
PAGE
59
04
ANNUAL
FINANCIAL
STATEMENTS
PAGE
60
The accounting authority is required by the Public Finance
Management Act (Act 1 of 1999), to maintain adequate
accounting records and is responsible for the content and
integrity of the annual fnancial statements and related
fnancial information included in this report. It is the
responsibility of the accounting authority to ensure that
the annual fnancial statements fairly present the state
of afairs of the entity as at the end of the fnancial year
and the results of its operations and cash fows for the
period then ended. The external auditors are engaged to
express an independent opinion on the annual fnancial
statements and were given unrestricted access to all
fnancial records and related data.
The annual fnancial statements have been prepared
in accordance with Standards of Generally Acceptable
Accounting Practice (GAAP) including any interpretations,
guidelines and directives issued by the Accounting
Standards Board.
The annual fnancial statements are based upon appropriate
accounting policies consistently applied and supported by
reasonable and prudent judgements and estimates.
The accounting authority acknowledges that they are
ultimately responsible for the system of internal fnancial
control established by the entity and place considerable
importance on maintaining a strong control environment.
To enable the accounting authority to meet these
responsibilities, the board of directors sets standards
for internal control aimed at reducing the risk of error or
defcit in a cost efective manner. The standards include
the proper delegation of responsibilities within a clearly
defned framework, efective accounting procedures and
adequate segregation of duties to ensure an acceptable
level of risk. These controls are monitored throughout
the entity and all employees are required to maintain
the highest ethical standards in ensuring the entitys
business is conducted in a manner that in all reasonable
circumstances is above reproach. The focus of risk
management in the entity is on identifying, assessing,
managing and monitoring all known forms of risk across
the entity. While operating risk cannot be fully eliminated,
the entity endeavours to minimise it by ensuring that
appropriate infrastructure, controls, systems and ethical
behaviour are applied and managed within predetermined
procedures and constraints.
The accounting authority are of the opinion, based on
the information and explanations given by management,
that the system of internal control provides reasonable
assurance that the fnancial records may be relied on
for the preparation of the annual fnancial statements.
However, any system of internal fnancial control can
provide only reasonable, and not absolute, assurance
against material misstatement or defcit.
The accounting authority have reviewed the entitys cash
fow forecast for the 12 months to 31 March 2014 and, in
the light of this review and the current fnancial position,
they are satisfed that the entity has or has access to
adequate resources to continue in operational existence
for the foreseeable future.

Although the accounting authority is primarily responsible
for the fnancial afairs of the entity, they are supported
by the entitys external auditors. The external auditors are
responsible for independently reviewing and reporting
on the entitys annual fnancial statements. The annual
fnancial statements have been examined by the entitys
external auditors and their report is presented on pages
69 to 72.
The Annual Financial Statements, which have been
prepared on the going concern basis, were approved by
the Accounting Authority and were signed on its behalf by:
MR PERCY L C MASETI
Chairperson of the Board of Directors Tuesday, 31 July 2013
MR LUTHANDO R MBINDA
Chief Executive Ofcer Tuesday, 31 July 2013
FINANCE
REPORT
STATEMENT OF
RESPONSIBILITY
By the accounting authority
for the 12 months ended 31
March 2013
PAGE
61
Name Date Appointed Role
Percival Lusapo Camagu Maseti 28 February 2007 Board Chairperson
Jonga Sydney Nyengane 28 February 2007 Board Deputy Chairperson
Luthando Richmond Mbinda 1 September 2006 Ex-Officio Board Member and CEO of MTC
Pumelele Pazima Balfour 28 February 2007 Board Member
Angela Margaret Church 23 June 2008 Board Member
Andr Joubert De Vries 28 February 2007 Board Member and Department of Transport Representative
Sindiswa Griselda Gomba 13 April 2012 Alternate Board Member
Ndileka Eumera Portia Loyilane 23 June 2008 Board Member
Ruth Luzuka 24 August 2009 Board Member
Agreement Sizwe Mandla 20 April 2011 Board Member and Organised Labour Representative
Dominic Lebohang Qhali 10 March 2012 Board Member and Provincial Treasury Representative
Mzwandile Vaaiboom 13 April 2012 Board Member
REPORT OF THE
ACCOUNTING
AUTHORITY
For the 12 months ended
31 March 2013
REVIEW OF ACTIVITIES
Mayibuye Transport Corporation (MTC) was established in accordance with the Ciskei Corporations Act of 1990,
to render an efective and efcient public transport service primarily for workers to industries and other places of
employment in the adjacent South African urban areas.

The Corporation operates under the jurisdiction of the Eastern Cape Department of Transport as a parastatal bus
passenger transport service provider. The Corporation is funded through a grant-in-aid from the Provincial Department
of Transport.
In synchronisation with its service delivery mandate, MTC maintains the highest possible standards in the provision of an
efective and efcient transport service to communities in the Province on selected routes by:
Providing an enabling environment
conducive to the provision of an
afordable, convenient and safe mode
of public transport.
Keeping abreast of trends and
developments in the sector to meet
changing customer and stakeholder
needs; and
Creating of strategies that lend
support to socio-economic growth in
the Eastern Cape in all MTCs areas
of operation.
The successful achievement of these key outcomes will result in economic and social opportunities for citizens of the
Eastern Cape.
GOING CONCERN
The annual fnancial statements have been prepared on the basis of accounting policies applicable to a going
concern. This basis presumes that funds will be available from the Department of Transport (DOT) to predominantly
fnance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and
commitments will occur in the ordinary course of business.
ACCOUNTING AUTHORITY
The current Board is appointed in terms of the Ciskei Corporations Act of 1990.
The members of the Board of Directors of the entity during the period under review are as follows:
PAGE
62
EXECUTIVE
MANAGEMENT
MTC is a regional organisation with municipal reach, i.e., it has ofces in three major municipalities. Its operational
model provides for a hybrid of centralised business process and decentralised operations which encourage innovation
and fexibility in order to enhance efciency.
As per the organogram below, the organisation has fve (5) Departments each headed by an Executive Head reporting
to the Chief Executive Ofcer, who is the Accounting Ofcer. Each of the Departments has distinct functions:
The Ofce of the CEO ensures that
efective planning and reporting
systems are established based on
internal management co-operation and
communications, and that external
partnership networks are developed
and managed for the beneft of the
Mayibuye Transport Corporation.
The programme also ensures the
smooth operations of the oversight
role played the Board of Directors.
Such oversight is based on efective
strategic leadership that provides the
MTC Board of Directors with proper
support to ensure good corporate
governance principles are adhered
to. The Board functions through its
established sub-committees and
meets quarterly.
Ofce of Strategic Management
supports the CEO with oversight
and leadership and is responsible
for strategy and policy development
and mainstreaming; compliance
and performance monitoring
and reporting; governance and
secretariat; stakeholder relations;
and, championing transformation and
change management
Financial Management is responsible
for the fnancial planning,
management, controls and variance
reporting; supply chain management
of both the overhead budget and
programme budgets; and for
coordinating the Audit processes as
to ensure that set quality standards
and criteria are met.
Human Resource Management
provides an internal enabling
function and support service to the
other programmes with regard to
Human Resource Management
and Development. This programme
also oversees protection and
security services.
Engineering exists to ensure the
efcient and efective provision of
public transport services through a
safe and reliable feet at all depots of
MTC. The Programme is responsible
for all the corporations feet related
activities as well as facilities and
infrastructure management.
Operations ensures the efcient
and efective management all
the operational activities of MTC.
The Programme is responsible for
coordination of bus services on all
routes, the enhancing of revenue
streams and the coordination of
capital fund expenditure.
The current organisational
structure of MTC refects its existing
operating model.
PAGE
63
SECRETARY
The secretary of the entity is Mrs Charon Cronj.
CORPORATE GOVERNANCE
The accounting authority is committed to business integrity, transparency and professionalism in all its activities.
As part of this commitment, the accounting authority supports the highest standards of corporate governance and the
on-going development of best practice. The entity confrms and acknowledges its responsibility to total compliance
with the Code of Corporate Practices and Conduct (the Code) laid out in the King Report on Corporate Governance for
South Africa.
AUDITORS
The Ofce of the Auditor General will continue in ofce for the next fnancial period as external auditors.
Marais and Smith will continue in ofce for the next fnancial period as internal auditors.
APPROVAL
The Annual Financial Statements set out on pages 74 to 78 have been approved by the Accounting Authority.
MR PERCY LC MASETI
Chairperson Mayibuye Transport Corporation Board 31 July 2013
TOP
ORGANISATIONAL
STRUCTURE
April 2013
CHIEF
EXECUTIVE
OFFICER
L.R. MBINDA
CFO
(VACANT)
Financial Manager
L. NKUNJANA
EXECUTIVE
MANAGER
Human Resources
C. MTISE
EXECUTIVE
MANAGER
Engineering
Z.D. LENI
EXECUTIVE
MANAGER
Operations
N. FUNANI
EXECUTIVE
DIRECTOR
Strategic Management
N. VAN WYK
PAGE
64
The Board is the designated
Accounting Authority of MTC and
governs the entity in accordance
with the provisions of the Ciskei
Corporations Act of 1990, the Public
Finance Management Act, 1 of
1999 (PFMA) and good corporate
governance principles. The Board
also strives to comply with the
principles and standards of integrity
and accountability as contained in
the recommendations of the King III
report on corporate governance.
The Board is composed of eleven
non-executive members with the
Chief Executive Ofcer serving
in an ex ofcio capacity with no
voting powers. The Board meets
at least quarterly and monitors
the performance of the Executive
Management by ensuring that
all material matters are subject
to Board approval and that the
mandate of MTC is carried out in
an efcient and efective manner.
The Executive Management attends
Board meetings by invitation. The
roles of the Chairperson and Chief
Executive Ofcer do not vest in the
same person and the Chairperson
is a non-executive member of the
Board. The Chairperson provides
leadership and guidance to the Board
and encourages proper deliberation
of all matters requiring the Boards
attention, and obtain optimum input
from the members. All committees
of the Board are chaired by non-
executive members of the Board
with the exception of the Audit
Committee which is chaired by an
independent person.
HUMAN RESOURCES
& REMUNERATION
COMMITTEE
The members of the Executive
Management are appointed by
the Board of Directors. Executive
Management are involved in
the operational activities of the
organisation and are responsible for
ensuring that decisions, strategies
and objectives of the reporting entity,
the Department of Transport (DOT),
and the Board are implemented.
Executive Management retains full
fnancial and operational control over
the organisation under the leadership
of the Chief Executive Ofcer.

FINANCE AND INVESTMENT
COMMITTEE
This Committee was established by
the Board with three non-executive
Directors namely Mr J S Nyengane as
Chairperson, Ms A M Church &
Mr D Qhali as members serving on
this committee together with relevant
members of Executive Management.
The committee operates under terms
of reference approved by the Board.
This committee attends to matters
concerning the Human Resource
CORPORATE
GOVERNANCE
STATEMENT
PAGE
65
MEETINGS HELD AND ATTENDED FOR THE PERIOD UNDER REVIEW
A meeting and attendance register for Board members and members of the Audit Committee is kept and maintained by the Board Secretary. A
summary of the meetings held and attendance by the said members and the particular meeting attended is set out below:
Ordinary and Special
Board
Finance and
Investment
Committee
Operations and
Engineering
Committee
HR and
Remuneration
Committee
Directors
Affairs
Committee
Number of Meetings 10 5 0 4 2
Mr P L C Maseti 10
Mr J S Nyengane 10 4 2
Mr P P Balfour 2 0 0
Ms A M Church 3 1
Mr A J De Vries 10 5
Ms S Gomba * 2 0
Ms N E P Loyilane 7 1 0
Ms R Luzuka 10 5 2
Ms Z Pakati 1 0
Mr A S Mandla 8 1
Mr D Qhali 7 2
Mr M Vaaiboom 5 1
policies and practices of MTC,
performance management and
remuneration. The committee
deliberates on these issues and
makes appropriate recommendations
to the Board for approval.
AUDIT COMMITTEE
In compliance with Section 27 of
the National Treasury Regulations,
the Board has established an
Audit Committee comprising of an
independent Chairperson namely Mr
J Mdeni, with Mrs R Luzuka and Mrs
T Cumming as members. The Audit
Committee operates under a Charter
which has been approved by the
Board. The primary responsibility of
the Audit Committee is to report and
make recommendations to the Board
on the efectiveness of corporate
governance internal controls and
risk management within MTC,
oversee the Internal Audit function
and to comment on and evaluate
the annual fnancial statements of
the Corporation. The Chairperson of
the Audit Committee attends Board
Meetings by invitation. Considerable
support has been provided by
the Department of Transport. The
Department is represented on the
Audit Committee by Mr D Skweyiya.
OPERATIONS AND
ENGINEERING COMMITTEE
This Committee, established by the
Board, comprises two non-executive
Directors namely Mr PP Balfour, as
Chairperson and Ms NEP Loyilane as
member, as well as relevant members
of the Executive Management.
This committee was established
to strengthen the operations
management and engineering
support capacity of MTC by focusing
on initiatives to promote customer
service and feet management
excellence in the pursuit of providing
access to economic opportunity for
citizens of the Eastern Cape.
DIRECTORS AFFAIRS
COMMITTEE
This Committee was established by
the Board with three non-executive
Directors namely Mr JS Nyengane
as Chairperson, Mr PP Balfour and
Mrs R Luzuka as members serving
together with the Chief Executive
Ofcer and Finance Manager of the
entity. This Committee is responsible
for critical management items which
require review and input prior to
being submitted to the Board of
Directors for approval.
MEETINGS HELD AND
ATTENDED FOR THE
PERIOD UNDER REVIEW
A meeting and attendance register
for Board members and members
of the Audit Committee is kept and
maintained by the Board Secretary.
A summary of the meetings held
and attendance by the said members
and the particular meeting attended
is set out below:
* Alternate to Mr M Vaaiboom
PAGE
66
We are pleased to present our report for the 2012/2013 fnancial year. The Audit Committee also reports that it has
adopted formal terms of reference as its Audit Committee Charter regulated its afairs in compliance with this charter
and has discharged all its responsibilities as contained therein.
AUDIT COMMITTEE MEMBERS AND ATTENDANCE
The Audit Committee members attended meetings during the financial year under review, in terms of their adopted Audit Charter,
as indicated below:
Name Position Number of Meetings
Attended
Date of Re-Appointment
/Appointments
Jack Mdeni Audit Committee Chair 6 1 October 2012
Ruth Luzuka Audit Committee Member 6 1 October 2012
Tracey Cumming Audit Committee Member 4 1 October 2012
Audit Committee Members, Mr Mdeni and Mrs Luzuka, were re-appointed as members upon review of their term. Their new term
commenced on 1 October 2012 and coincides with the appointment of Mrs Tracy Cumming. The term of office for the Audit Committee,
according to the Audit Committee charter, is a perios of three (3) years.
AUDIT COMMITTEE
RESPONSIBILITY
The Audit Committee reports
that it has complied with its
responsibilities arising from
section 38(1) (a) of the PFMA and
Treasury Regulation 3.1.13. The
Audit Committee also discharged
its responsibilities in compliance
with the Board Approved Audit
Committee Charter.
EFFECTIVENESS OF
INTERNAL CONTROLS
In order to meet its responsibility
of providing reliable fnancial
information, MTC maintains
fnancial and operational systems
of internal control. These controls
are designed to provide reasonable
assurance that transactions
are concluded in accordance
with managements authority,
that the assets are adequately
protected against material loss of
unauthorised acquisition, use or
disposition, and the transactions are
properly authorised and recorded.

MTC have appointed internal
auditors who are guided by an
Internal Audit Plan. The internal
auditors adopt a risk based audit
approach in order to ensure that
the process adds value to the
organisation. Internal auditors
monitor the operation of the
internal control system and report
fndings and recommendations to
the Audit Committee and Executive
Management. Corrective actions
are taken to address control
defciencies and other opportunities
for improving the systems, as they
are identifed. The Board, operating
through its Audit Committee,
provides oversight of the fnancial
reporting process and internal
control system.
There are inherent limitations in
the efectiveness of any system
of internal control, including the
possibility of human error and
the circumvention or overriding
of controls. Accordingly, even an
efective internal control system can
provide only reasonable assurance
with respect to fnancial statement
preparation and the safeguarding
of assets.
During the fnancial year the Audit
Committee met with management
on a quarterly basis to track their
progress in resolving outstanding
internal control issues previously
raised by the Auditor-General and
Internal Audit. Notwithstanding the
fact that several shortcomings were
pointed out by external and internal
auditors, the Audit Committee
is satisfed that the Corporation
continually endeavors on focussing
on maintaining qualitative levels
of internal controls. Various steps
are being implemented to address
the shortcomings identifed during
the internal reviews and external
audit reports.
INTERNAL AUDIT
The Audit Committee notes that
during the year under review, an
internal audit function was in place
and operational for the entire
period. With the exception of the
REPORT OF THE
AUDIT
COMMITTEE
PAGE
67
revenue management application
that wasnt feasible to review as it
is hosted by a third party, all other
projects identifed in the internal
audit plan were carried out as planned.
Internal Audit has reported that
management has not taken
adequate corrective action to
address weaknesses previously
reported with reference to
signifcant matters pertaining
to supply chain management,
management accounting and asset
management as identifed in the
2011/12 audit.
RISK MANAGEMENT
The Corporation fully implemented
a system of risk management.
In accordance with the
requirements of the Public Finance
Management Act, 1999 (Act No.
1 of 1999), as amended, a risk
assessment was facilitated by the
Internal Auditors, PWC. Efective
risk management is integral to
the organisations objective of
consistently adding value to
the business. Management is
continuously developing and
enhancing its risk and control
procedures to improve the
mechanisms for identifying and
monitoring risks. The Board has
initiated the development of a Risk
Management Framework and Fraud
Prevention Plan.
The fraud prevention and risk
management policies adopted
by MTC are aimed at obtaining
sufcient cover to protect its asset
base, earning capacity and legal
obligations against possible losses.
Risks of a possible catastrophic
nature (e.g. bus accidents) are
identifed and insured. These risks
are reviewed on an annual basis
to ensure that cover is adequate.
Claims of a general nature are also
adequately covered.
EVALUATION OF ANNUAL
FINANCIAL STATEMENTS
The Audit Committee has:
Reviewed and discussed with the
Auditor-General and the Accounting
Ofcer the audited annual fnancial
statements to be included in the
annual report;
Reviewed the Auditor-Generals
management letters and the
responses thereto;
Reviewed signifcant adjustments
resulting from the audit.
Reviewed the Auditor-Generals
report.
The Audit Committee concurs
and accepts the Auditor-Generals
conclusion on the annual fnancial
statements and is of the opinion
that the audited annual fnancial
statements be accepted and read
together with the report of the
Auditor-General.
IN YEAR MANAGEMENT
REPORTING
We are satisfed with the content
and quality of monthly and quarterly
reports prepared by the Accounting
Ofcer during the year under
review. We commend management
on their turnaround with regards
to performance information and
service delivery reporting which
resulted in a clean audit for the
period under review. It was however
noted that some aspects pertaining
for fnancial reporting were not
always satisfactory. This aspect
was noted in the Auditor Generals
management report.
APPRECIATION
The Audit Committee wishes
to express its appreciation to
Management and Staf of the
Mayibuye Transport, the Auditor-
General and Internal Audit for the
information they have provided for
us to compile this report.
MR JACK MDENI
Chairperson - Mayibuye Transport Corporation Audit Committee
31 July 2013
PAGE
68
TO THE EASTERN CAPE PROVINCIAL
LEGISLATURE ON THE MAYIBUYE
TRANSPORT CORPORATION

REPORT ON THE FINANCIAL STATEMENTS

Introduction
1. I was engaged to audit the fnancial statements of the
Mayibuye Transport Corporation set out on pages 69 to
72, which comprise the statement of fnancial position
as at 31 March 2013, the statement of comprehensive
income, statement of changes in equity and the
statement of cash fows for the year then ended,
and the notes, comprising a summary of signifcant
accounting policies and other explanatory information.
Accounting authoritys responsibility for the
fnancial statements
2. The board of directors which constitutes the accounting
authority is responsible for the preparation and
fair presentation of these fnancial statements in
accordance with South African Statements of Generally
Accepted Accounting Practice (SA Statements of
GAAP) and the requirements of the Public Finance
Management Act of South Africa, 1999 (Act No. 1 of
1999) (PFMA), and for such internal control as the
accounting authority determines is necessary to enable
the preparation of fnancial statements that are free from
material misstatement, whether due to fraud or error.
Auditor-Generals responsibility
3. My responsibility is to express an opinion on the
fnancial statements based on conducting the audit in
accordance with the Public Audit Act of South Africa,
2004 (Act No. 25 of 2004) (PAA), the General Notice
issued in terms thereof and International Standards on
Auditing. Because of the matters described in the Basis
for disclaimer of opinion paragraphs, however, I was
unable to obtain sufcient appropriate audit evidence
to provide a basis for an audit opinion.
Basis for disclaimer of opinion
Property, plant and equipment (PPE)
4. The entity did not account for its PPE in accordance
with IAS 16, Property, plant and equipment in the
following circumstances:
Useful lives of assets were not reviewed at the end of
the reporting period;
The entity did not record all of its ofce, operating and
workshop equipment, or all of its ofce furniture in the
fnancial statements;
The entity inappropriately capitalised maintenance
costs that do not meet the recognition criteria for PPE;
Assets that were not in appropriate working condition
were not tested for impairment as required.
Consequently, PPE as disclosed in note 3 is overstated
by R14, 9 million, Finance lease liability as disclosed on
the statement of fnancial position is understated by
R0,5 million and operating expenses as disclosed in the
statement of comprehensive income is understated by
R15, 4 million.
5. In addition I was unable to obtain sufcient appropriate
audit evidence for PPE due to the following matters:
The entity did not determine the recoverable amounts
of assets as required by IAS 36, Impairment of assets;
Land and buildings are not separately identifable on
the asset register;
Assets could not be physically located during the audit;
I was not provided with sufcient appropriate
supporting evidence of the review at the fnancial year-
end of the residual values as required by IAS 16 and;
I was not provided with sufcient appropriate evidence
for prior year correcting journals to PPE.
I was unable to confrm the current and comparative
amount for PPE by alternative means. Consequently,
I was unable to determine whether any further
adjustments were necessary to property, plant &
equipment of R49, 9 million (2012: R56, 7 million) as
disclosed in note 3 to the fnancial statements, and to
the comparative fgure for impairment loss of R1 million
as disclosed in note 12 to the fnancial statements
were necessary.
6. Included in note 3 to the fnancial statements is spare
parts and units, which are included as PPE in error
instead of being refected as inventory as required
by IAS 16. Consequently, depreciation for the year
expensed to the statement of comprehensive income is
overstated by R8, 3 million (2012: R10, 7 million), and the
property, plant and equipment comparative amount is
overstated by R5, 8 million as disclosed in note 3 to the
fnancial statements. In addition the the prior year error
correction refected in note 22.1 for spares and units is
overstated by R3, 7 million.
Passenger Fares Revenue
7. I was unable to obtain sufcient appropriate audit
evidence on the completeness of passenger fares
revenue as included in note 11 to the fnancial
statements, as internal controls were not established
over the collection thereof prior to the initial entry
into the fnancial records i.e. incomplete recording of
routine cash transactions. I was unable to confrm
the completeness of revenue by alternative means.
Consequently I was unable to determine whether any
adjustments to passenger fares revenue of R22, 9
million (2012: R19, 5 million) as included in note 11 to the
fnancial statements were necessary.

Cost of services rendered, operating and other expenses
8. I was unable to obtain sufcient appropriate audit
REPORT OF THE
AUDITOR
GENERAL
PAGE
69
evidence for cost of services rendered, as I was not
provided with the basis of determining the weighted
average cost price. I was unable to confrm the amounts
by alternative means. Consequently I was unable to
determine whether any adjustments relating to cost of
services rendered of R29, 4 million (2012: R29 million)
as disclosed in the statement of comprehensive income
were necessary.

9. The entity did not recognise operating expenses
in accordance with IAS 1, Presentation of fnancial
statements as they recognised transactions in the
incorrect accounting period, consequently, operating
expenditure and the accumulated defcit are
understated by R2, 3 million. In addition I was unable
to obtain sufcient and appropriate audit evidence
for operating expenses as the entity did not provide
valid supporting documents for maintenance contract
charges included in this amount. I was unable to
confrm the operating expenses by alternative means.
Consequently I was unable to determine whether any
further adjustments to operating expenses of R40, 4
million as disclosed in the statement of comprehensive
income were necessary.
10. The entity did not reconcile the amounts included in
the accounting records for cost of services rendered,
administration expenses and operating expenses as
refected on the statement of comprehensive income.
In total expenses are understated by R7, 7 million
however as there were no adequate records it was
impracticable to determine the corrections required to
each separate line item.

11. In addition, staf costs disclosed in note 12.1 of the
fnancial statements is understated by R1, 3 million. This
is due to the underlying records not agreeing to the
fnancial statements.
Irregular expenditure
12. The entity did not have adequate systems in place to
identify and disclose all irregular expenditure incurred
during the year as required by section 55(2)(b)(i) of the
PFMA. Irregular expenditure incurred as disclosed in
note 13 to the fnancial statements is understated for
amounts identifed during the audit process of R14, 4 million.
Due to the lack of systems however, it was impracticable
for me to determine the full extent of this understatement.

Finance lease liability
13. The entity did not disclose the net carrying amount of
R11, 9 million at the reporting period for each class of
fnance leased asset as required by IAS 17, Leases.
14. The entity did not accurately record the opening
balance of the fnance lease liability in accordance with
the amortization schedule. Consequently, the fnance
lease liability comparative amount as disclosed in
the statement of fnancial position is overstated by R1
million. In addition there is a consequential impact on
the accumulated defcit.
15. In addition, I was unable to obtain sufcient appropriate
audit evidence for fnance lease liability as the entity did
not provide supporting evidence to support the monthly
minimum lease payments, and no audit evidence for
prior year adjustments of the fnance lease liability was
provided. I was unable to confrm the fnance lease
liability by alternative means. Consequently I was
unable to determine whether any further adjustments
relating to fnance lease liability of R5, 1 million (2012:
R9 million) and current portion of the fnance lease
liability of R6, 8 million (2012: R6, 3 million) as disclosed
in the statement of fnancial position and note 8 to the
fnancial statements were necessary.

Inventories
16. The entity did not adjust inventory items that were
not in physical stores as at year end, which resulted
in inventory as disclosed in the statement of fnancial
position being overstated by R2, 7 million and cost
of services rendered being understated by R2, 7
million In addition I was unable to obtain sufcient
appropriate audit evidence for inventories as I was not
provided with the basis or supporting documentation
for determining the weighted average cost price of
inventory, and because Inventory items could not be
physically located during the audit. I was unable to
confrm inventories by alternative means. Consequently
I was unable to determine whether any further
adjustments relating to inventory stated at R4, 5 million
as disclosed in note 4 to the fnancial statements
were necessary.
Share capital
17. The entity did not correctly account for the issue of
share capital in the restated amounts as it only issued
shares in the current year. Consequently, the restated
share capital comparative is overstated by R3, 2 million
and the current year issued share capital is understated
by R3, 2 million in the statement of changes in equity.
Accrued leave pay
18. I was unable to obtain sufcient appropriate audit
evidence for the accrued leave pay included in Trade
and other payables as disclosed in note 9 to the
fnancial statements, as I was not provided with the
employees opening leave credits that were used in the
calculation of the obligation outstanding at each year-
end. I was unable to confrm the amounts by alternative
means. Consequently I was unable to determine
whether any adjustments relating to accrued leave pay
stated at R2, 3 million (2012: R 2, 8 million) as included
in note 9 to the fnancial statements were necessary.
Cash generated by operations
19. The entity did not correctly calculate the movement in
working capital included in note 15 for cash generated
by operations. The increase in payables is not based
on the movement of trade and other payables, and
consequently the Increase / (Decrease) in payables is
understated by R1, 7 million.
PAGE
70
20. In addition I was unable to obtain sufcient appropriate
audit evidence for the unnamed reconciling item of R2,
1 million included in the cash generated by operations
note. I was unable to confrm this amount by alternative
means. Consequently I was unable to determine
whether any adjustments relating to cash generated
by operations as disclosed in note 15 of the fnancial
statements were required.
Disclaimer of opinion
21. Because of the signifcance of the matters described in
the Basis for disclaimer of opinion paragraphs, I have
not been able to obtain sufcient appropriate audit
evidence to provide a basis for an audit opinion Accordingly,
I do not express an opinion on the fnancial statements.
Emphasis of matters
22. I draw attention to the matters below. My opinion is not
modifed in respect of these matters.
Restatement of corresponding fgures
23. As disclosed in note 22.1 to the fnancial statements,
the corresponding fgures for 31 March 2012 have been
restated as a result of errors only discovered during the
current fnancial year.
Signifcant uncertainties
24. As disclosed in note 3 and 17 to the fnancial
statements, the Zwelitsha Depot, which is situated on
communal land, has been recognised as leasehold
land and buildings with a carrying value of R1, 1 million.
The corporation derives economic benefts from the
use thereof and carries the risks that are incidental
to ownership. A process for the acquisition of the
title deed has been initiated with the Land Claims
Commission, the outcome of which is uncertain at
the date of this report. The possible cost element of
the acquisition of the land as well as any adjustments
to the carrying value of leasehold land and buildings
is dependent on this future event and cannot be
reasonably measured.
Funding of operations
25. As disclosed in Note 21 to the fnancial statements,
the Corporation has an accumulated defcit and is
dependent on funding for its operations as detailed.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
26. In accordance with the PAA and the General Notice
issued in terms thereof, I report the following fndings
relevant to performance against predetermined
objectives, compliance with laws and regulations and
internal control, but not for the purpose of expressing
an opinion.
Predetermined objectives
27. I performed procedures to obtain evidence about the
usefulness and reliability of the information in the
annual performance report as set out on pages 26 to 53
of the annual report.
28. The reported performance against predetermined
objectives was evaluated against the overall criteria of
usefulness and reliability. The usefulness of information
in the annual performance report relates to whether it
is presented in accordance with the National Treasurys
annual reporting principles and whether the reported
performance is consistent with the planned objectives.
The usefulness of information further relates to whether
indicators and targets are measurable (i.e. well defned,
verifable, specifc, measurable and time bound) and
relevant as required by the National Treasury Framework
for managing programme performance information.
29. The reliability of the information in respect of the
selected programmes is assessed to determine whether
it adequately refects the facts (i.e. whether it is valid,
accurate and complete).
30. There were no material fndings on the annual
performance report concerning the usefulness and
reliability of the information.
Additional matter
31. Although no material fndings concerning the
usefulness and reliability of the performance
information was identifed in the annual performance
report I draw attention to the following matter below.
Achievement of planned targets
32. Of the total number of 79 targets planned for the
year, 30 (38%) were not achieved during the year
under review. This was as a result of the institution
not considering relevant systems and evidential
requirements during the annual strategic planning
process as the action plans in place did not
address underperformance.
Compliance with laws and regulations
33. I performed procedures to obtain evidence that
the entity has complied with applicable laws and
regulations regarding fnancial matters, fnancial
management and other related matters. My fndings
on material non-compliance with specifc matters in
key applicable laws and regulations as set out in the
General Notice issued in terms of the PAA are
as follows:
Strategic planning and performance
34. The accounting authority did not submit to the
accounting authority of a department designated by
the executive authority responsible for that public entity
or business enterprise, and to the relevant treasury,
at least one month, or another period agreed with the
National Treasury, before the start of the fnancial year,
a corporate plan in the prescribed format as required
by section 52(b) of the PFMA read with Treasury
Regulation (TR) 29.2.
Annual fnancial statements, performance and
annual reports
35. The fnancial statements submitted for auditing
PAGE
71
were not prepared in accordance with the prescribed
fnancial reporting framework and supported by full and
proper records as required by section 55(1) ((a) and) (b)
of the PFMA. Material misstatements identifed by the
auditors in the submitted fnancial statements were not
corrected, which resulted in the fnancial statements
receiving a disclaimer of opinion.
Asset management and liability management
36. Proper control systems to safeguard and maintain
assets were not implemented, as required by sections
50(1) (a) and 51(1) (c) of the PFMA.
Revenue management
37. The accounting authority did not take efective and
appropriate steps to collect all money due, as required
by section 51(1)(b)(i) of the PFMA and TR 31.1.2(a) and
31.1.2(e).
Expenditure management
38. The accounting authority did not take efective steps
to prevent irregular expenditure, as required by section
51(1) (b) (ii) of the PFMA.
39. Efective and appropriate disciplinary steps were
not taken against ofcials who incurred and permitted
irregular expenditure and fruitless & wasteful
expenditure, as required by section 51(1) (e) (iii) of
the PFMA.
Procurement and contract management
40. Sufcient appropriate audit evidence could not be
obtained that all goods, works and services were
procured through a procurement process which is fair,
equitable, transparent and competitive as required by
the PFMA section 51(1) (a) (iii).
41. Sufcient appropriate audit evidence could not
be obtained that all the procurement processes
complied with the requirements of a fair supply chain
management (SCM) system as per section 51(1) (a) (iii)
of the PFMA.
42. Quotations were awarded to suppliers whose tax
matters had not been declared by the South African
Revenue Services to be in order as required by TR
16A9.1 (d) and the Preferential Procurement Regulations.
43. Sufcient appropriate audit evidence could not be
obtained that all contracts and quotations were
awarded in accordance with the legislative requirements
as the relevant bid fles could not be found.
Internal control
44. I considered internal control relevant to my audit
of the fnancial statements, performance against
annual targets report and compliance with laws and
regulations. The matters reported below under the
fundamentals of internal control are limited to the
signifcant defciencies that resulted in the basis for
disclaimer of opinion, the fndings on the performance
report and the fndings on compliance with laws and
regulations included in this report.
Leadership
45. The accounting authority did not ensure that the
action plan in place to address matters I have reported
in prior years was properly implemented - this was
due to the lack of efective monitoring of the
action plan. Leadership does not impose efective
performance management as there are no
consequences for poor performance.
46. The entity did not fll the vacancy of the Chief fnancial
ofcer, this has resulted in a lack of adequate fnancial
reporting skills and contributed to the misstatements of
the fnancial statements.

Financial and performance management
47. Regular reconciliations for various account balances
were not performed during the year, in order to ensure
they were accurate and supported by credible evidence;
this is due to a lack of reviews, efective supervision and
understanding of the relevant accounting requirements.
There is also a lack of adequate record management
and fling of documents, and numerous supporting
documents could not be obtained during the audit.
48. There is a lack of compliance monitoring on a regular
basis and non-compliance is not addressed in a timely
manner, due to the fact that there is no efective
compliance checklist in place.
Governance
49. Management did not ensure that all material errors
identifed by the audit committee were resolved
before the fnancial statements were submitted for
audit purposes.
50. Internal audit has not obtained reasonable assurance
on the efectiveness of internal controls around the
SCM system; as they did not adequately review the
procurement process during the year in order to identify
awards that were made contrary to the SCM requirements.
East London, 31 July 2013
PAGE
72
DIRECTORS
PLC Maseti Chairperson
SJ Nyengane Deputy Chairperson
PP Balfour Director *
F.S. Loliwe Director **
M. Vaaiboom Director
S. Gomba Alternate Director
AJ de Vries Director
D. Qhali Director
AM Church Director ***
NEP Loyilane Director
RN Luzuka Director
Z Pakati Director ****
AS Mandla Director ****
NATURE OF BUSINESS
The entity provides subsidised public transport and is governed by the Public Finance Management Act, Schedule 3D
Provincial Government Business Enterprises Entity
BANKERS
The Standard Bank of South Africa Limited
AUDITORS
Auditor-General South Africa
REGISTERED OFFICE
Reeston Depot, Coner of Drummond and Mdantsane Access road, EL, Eastern Cape, South Africa
APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS
The annual fnancial statements were approved by the board of directors on 31 May 2013 and are signed as such by:
REPORT OF
FINANCIAL
POSITION
For the 12 months
ended 31 March 2013
MR PERCY L C MASETI
Chairperson of the Board of Directors
Tuesday, 31 July 2013
MR LUTHANDO R MBINDA
Chief Executive Ofcer
Tuesday, 31 July 2013
* Mr Balfour did not renew his Board term when it expired on 28 February 2013.
** Ms Loliwe resigned on 14 January 2013.
*** Ms Church did not renew her Board term when it expired on 28 February 2013.
**** Mr Mandla was the Alternate Board Member for
Ms Pakati, but became a full Board Member when
Ms Pakati was replaced on 15 June 2012.
Ms Gomba is the Alternate Board Member for Mr M. Vaaiboom.
PAGE
73
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2013
NOTES 2013 Restated 2012
ZAR ZAR
ASSETS
Non-current assets
Property, plant and equipment 3 49928268 56737575
Total non-current assets 49928268 56737575
Current assets
Inventories 4 4477424 866723
Trade and other receivables 5 974383 369916
Cash and cash equivalents 6 101765 105900
Total current assets 5553572 1342539
Total assets 55481840 58080114
EQUITY AND LIABILITIES
Capital and reserves
Share capital 7 120000000 56761075
Capitalisation reserve 7 - -
Accumulated deficit (85327238) (82356920)
34672762 (25595845)
NON-CURRENT LIABILITIES
Finance lease liability 8 5093154 9098324
5093154 9098324
CURRENT LIABILITIES
Current portion of finance liability 6805076 6345756
Trade and other payables 9 8539773 9621879
Deferred income 10 371075 58609999
TOTAL CURRENT LIABILITIES 15715924 74577634
TOTAL EQUITY AND LIABILITIES 55481840 58080113
-0 -0
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2013
NOTES 2013 Restated 2012
ZAR ZAR
Revenue 11 27606895 23850758
Cost of services rendered (29406223) (28972240)
Gross loss (1799329) (5121482)
Other income - Grant 20.2 63773000 51429000
Other operating income 138927 107853
Administration expenses (22993823) (22717238)
Operating expenses (40472124) (41498515)
Loss from operations (1353350) (17800382)
Interest income 67583 123481
Interest Expense (1684551) (1013295)
Total Comprehensive Income/(Loss) for the year (2970318) (18690196)
PAGE
74
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2013
NOTES SHARE
CAPITAL
ACCUMULATED
DEFICIT
TOTAL
ZAR ZAR ZAR
Balance at 1 April 2010 56761075 (60386521) (3625446)
Prior period error correction 22,1 3238925 (2186360) 36563640
Restated profit (loss) for the year - (1093843) (1093843)
- Originally stated profit(loss) for the year - 164385 164385
- 2011 year end error correction 22,1 - (1258228) (1258228)
Current year capitalisation reserve increase 9860000 - 9860000
Restated balance at 31 March 2011 60000000 (63666724) 41704351
Restated profit (loss) for the year - (18690196) (18690196)
- Originally stated profit(loss) for the year - (440451) (440451)
- 2012 year end error correction 22,1 - (18249745) (18249745)
Current year capitalisation reserve increase - - -
Restated balance at 31 March 2012 60000000 (82356920) 23014155
Loss for the year - (2970318) (2970318)
Current year capitalisation reserve increase - - -
Current year issued share capital increase 60000000 - 60000000
Balance at 31 March 2013 120000000 (85327238) 34672762
PAGE
75
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2013
NOTES 2013 Restated 2012
ZAR ZAR
OPERATING ACTIVITIES
Cash receipts from customers and grants 91450509 75008992
Cash paid to suppliers and employees (83517988) (70313856)
CASH GENERATED BY OPERATIONS 15 7932521 4695136
Interest received 67583 123481
Interest paid (1684551) (904668)
NET CASH FROM OPERATING ACTIVITIES 6315553 3913949
INVESTING ACTIVITIES
Purchases of property, plant and equipment (8053677) (22797153)
Proceeds from sale of property, plant and equipment 279839 -
NET CASH (USED IN)/FROM INVESTING ACTIVITIES (7773838) (22797153)
FINANCING ACTIVITIES
Capital grant received 20.2 5000000 10000000
Net finance lease liability (repaid)/raised (3545850) 7218213
NET CASH FROM FINANCING ACTIVITIES 1454150 17218213
NET INCREASE IN CASH AND CASH EQUIVALENTS (4136) (1664991)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 105900 1770890
CASH AND CASH EQUIVALENTS AT END OF YEAR 6 101765 105900
PAGE
76
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
3. PROPERTY, PLANT AND EQUIPMENT
Land & Building Leasehold
Land & Buildings
Ancillary
Vehicles
Buses Spare parts
& Units
Office
Equipment
Office
Furniture
Operating
Equipment
Workshop
Equipment
Total
ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR
Restated Carrying value at 1 April 2012 3850598 1100000 2025167 37876744 5840962 1389822 573855 3737718 342709 56737575
At Cost 4101573 1100000 4536959 60528228 16508912 2348093 881296 5005183 990010 96000254
Accumulated Depreciation (250975) - (2511792) (22651484) (10667950) (958271) (307441) (1267465) (647301) (39262679)
Additions 260926 - - 1559703 5025231 949236 124104 4445 130032 8053677
Disposals - Cost - - (123846) (890646) - (12680) - - - (1027172)
Disposals - Accumulated Depreciation - - 108846 337204 - 5010 - - - 451060
Current year write off - Cost - - - (2936571) (10667951) (52741) (39567) - (37123) (13733953)
Current year write off - Acc depr - - - 1926087 10667951 47614 21528 - 37110 12700290
Year-end transfer from inventory - - - - - - - - -
Previous year-end transfer to inventory - - - - (2566945) - - - - (2566945)
Impairment loss - - - (181453) - - - - - (181453)
Prior period error - - - - - - - - -
Depreciation for the year (67911) - 488719 (1013099) (8299248) (448454) (90535) (940203) (134080) (10504811)
Carrying value at 31 March 2013 4043613 1100000 2498886 36677969 - 1877807 589385 2801960 338648 49928268
At Cost 4362499 1100000 4413113 58079261 8299247 3231908 965833 5009628 1082919 86544408
Accumulated Depreciation (318886) - (1914227) (21401292) (8299247) (1354101) (376448) (2207668) (744271) (36616140)
Land and buildings comprises workshops, ofces and bus sheds situated in the following sites:
Erf 77, 78, 79, 80, 81 of farm 35, Wilsonia, district of East London, market value R2 600 000.
Plot 4265, Queendustria Industrial Township, Queenstown, market value R1 400 000.
Zone 8 Zwelitsha - the entity has been given the right to use the property indefnitely. A process for the acquisition of
the title deed has been initiated with the Land Claims Commission. At present, a valuation has been performed and the
land has been surveyed, details of which are noted under note 18. Improvements on the property are capitalised.
Erf 1097, Alice, market value R620 000.
The historical opening depreciation charge assumes that the land is worth 50% of the historical carrying value.
An amount of R 181 453 was raised as impairement charge against buses. The method used to determine the
impairement charge was limited to the resale value as all other methods refected negative contributions.
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
3. PROPERTY, PLANT AND EQUIPMENT
Land & Building Leasehold
Land & Buildings
Ancillary
Vehicles
Buses Spare parts
& Units
Office
Equipment
Office
Furniture
Operating
Equipment
Workshop
Equipment
Total
ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR
Restated Carrying value at 1 April 2011 3637196 1100000 2048175 32300514 7393934 1022775 560076 4177556 134616 52993323
At Cost 3821945 1100000 3321046 50977019 11140632 1636702 789043 5618074 656814 79061275
Accumulated Depreciation (184750) - (2074013) (17256882) (3746698) (613928) (228966) (1440518) (522197) (26067952)
Additions 279628 - 1291118 10470747 6548033 729674 100793 426502 383715 20230210
Disposals - Cost - - - - (8620) - - - (8620)
Disposals - Accumulated Depreciation - - - - 2518 - - - 2518
Current year write off - Cost - - - - (3746698) (9663) (8540) (1039393) (50519) (4854813)
Current year write off - Accumulated Depre-
ciation
- - - - 3746698 9652 4988 687138 48053 4496529
Year-end transfer from inventory - - - - 2566945 - - - - 2566945
Inventory from previous year - -
Impairment loss - - (75205) (919538) - - - - - (994743)
Prior period error
Depreciation for the year (66225) - (437779) (5394602) (10667950) (356513) (83463) (514085) (173157) (17693774)
Restated Carrying value at 31 March 2012 3850598 1100000 2025167 37876744 5840962 1389822 573855 3737718 342709 56737575
At Cost 4101573 1100000 4536959 60528228 16508912 2348093 881296 5005183 990010 96000254
Accumulated Depreciation (250975) - (2511792) (22651484) (10667950) (958271) (307441) (1267465) (647301) (39262679)
PAGE
77
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
3. PROPERTY, PLANT AND EQUIPMENT
Land & Building Leasehold
Land & Buildings
Ancillary
Vehicles
Buses Spare parts
& Units
Office
Equipment
Office
Furniture
Operating
Equipment
Workshop
Equipment
Total
ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR
Restated Carrying value at 1 April 2012 3850598 1100000 2025167 37876744 5840962 1389822 573855 3737718 342709 56737575
At Cost 4101573 1100000 4536959 60528228 16508912 2348093 881296 5005183 990010 96000254
Accumulated Depreciation (250975) - (2511792) (22651484) (10667950) (958271) (307441) (1267465) (647301) (39262679)
Additions 260926 - - 1559703 5025231 949236 124104 4445 130032 8053677
Disposals - Cost - - (123846) (890646) - (12680) - - - (1027172)
Disposals - Accumulated Depreciation - - 108846 337204 - 5010 - - - 451060
Current year write off - Cost - - - (2936571) (10667951) (52741) (39567) - (37123) (13733953)
Current year write off - Acc depr - - - 1926087 10667951 47614 21528 - 37110 12700290
Year-end transfer from inventory - - - - - - - - -
Previous year-end transfer to inventory - - - - (2566945) - - - - (2566945)
Impairment loss - - - (181453) - - - - - (181453)
Prior period error - - - - - - - - -
Depreciation for the year (67911) - 488719 (1013099) (8299248) (448454) (90535) (940203) (134080) (10504811)
Carrying value at 31 March 2013 4043613 1100000 2498886 36677969 - 1877807 589385 2801960 338648 49928268
At Cost 4362499 1100000 4413113 58079261 8299247 3231908 965833 5009628 1082919 86544408
Accumulated Depreciation (318886) - (1914227) (21401292) (8299247) (1354101) (376448) (2207668) (744271) (36616140)
Mayibuye Transport Corporation
Annual Financial Statements for the year ended 31 March 2013
3. PROPERTY, PLANT AND EQUIPMENT
Land & Building Leasehold
Land & Buildings
Ancillary
Vehicles
Buses Spare parts
& Units
Office
Equipment
Office
Furniture
Operating
Equipment
Workshop
Equipment
Total
ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR ZAR
Restated Carrying value at 1 April 2011 3637196 1100000 2048175 32300514 7393934 1022775 560076 4177556 134616 52993323
At Cost 3821945 1100000 3321046 50977019 11140632 1636702 789043 5618074 656814 79061275
Accumulated Depreciation (184750) - (2074013) (17256882) (3746698) (613928) (228966) (1440518) (522197) (26067952)
Additions 279628 - 1291118 10470747 6548033 729674 100793 426502 383715 20230210
Disposals - Cost - - - - (8620) - - - (8620)
Disposals - Accumulated Depreciation - - - - 2518 - - - 2518
Current year write off - Cost - - - - (3746698) (9663) (8540) (1039393) (50519) (4854813)
Current year write off - Accumulated Depre-
ciation
- - - - 3746698 9652 4988 687138 48053 4496529
Year-end transfer from inventory - - - - 2566945 - - - - 2566945
Inventory from previous year - -
Impairment loss - - (75205) (919538) - - - - - (994743)
Prior period error
Depreciation for the year (66225) - (437779) (5394602) (10667950) (356513) (83463) (514085) (173157) (17693774)
Restated Carrying value at 31 March 2012 3850598 1100000 2025167 37876744 5840962 1389822 573855 3737718 342709 56737575
At Cost 4101573 1100000 4536959 60528228 16508912 2348093 881296 5005183 990010 96000254
Accumulated Depreciation (250975) - (2511792) (22651484) (10667950) (958271) (307441) (1267465) (647301) (39262679)
PAGE
78
1. PRESENTATION OF FINANCIAL
STATEMENTS
These fnancial statements are presented in South African
Rand [R] since that is the functional currency in which the
transactions are denominated.
2. SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
The Annual Financial Statements are prepared under the
historical cost convention, other than certain fnancial
instruments, and incorporate the following principal
accounting policies, which have been consistently applied
in all material respect. The fnancial statements have been
prepared in accordance with South African Statements
of Generally Accepted Accounting Practice. The principal
accounting policies adopted remained unchanged from
the previous year.
2.1. Irregular and fruitless and wasteful expenditure
Irregular expenditure means expenditure incurred in
contravention of, or not in accordance with a requirement
of any applicable legislation, including:
The Public Finance Management Act, or
Any provincial legislation providing for procurement
procedures in that provincial government.
Fruitless and wasteful expenditure means expenditure
that was made in vain and would have been avoided had
reasonable care been exercised.
All irregular and fruitless and wasteful expenditure is
recognised in proft and loss in the period in which it
is incurred and where recovered, it is subsequently
accounted for as revenue in the Income Statement.

2.2. Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
Cash in the balance sheet comprises cash at bank and
on hand and short-term deposits held by the Corporation.
For the purposes of the cash fow statement, cash and
cash equivalents consist of cash and cash equivalents as
defned above.
2.3. Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable. Revenue is reduced for estimated
customer returns, rebates and other similar allowances.
Revenue is recognised to the extent that it is probable
that the economic benefts will fow to the entity and the
revenue can be reliably measured.
When the outcome of a transaction involving the
rendering of services can be estimated reliably, revenue
associated with the transaction will be recognised by
reference to the stage of completion of the transaction at
the balance sheet date.
Revenue from the sale of bus tickets and bus hiring is
recognised when the signifcant risks and rewards of
ownership are transferred to the buyer.
Interest income is accrued on a time basis, by reference
to the principal outstanding and at the interest rate
applicable, except for interest earned on capital funding
which is disclosed seperately.
2.4. Leasing
Leases are classifed as fnance leases whenever the term
of the lease transfer substantially all the risks and rewards
to the lessee. All other leases are classifed as operating
leases. Assets held under fnance leases are initially
recognised as assets of the Corporation at their fair value
at the inception of the lease or if lower at the present
value of the minimum lease payments, each determined
at the inception of the lease. The corresponding liability
to the lessor is included in the balance sheet as a fnance
lease obligation. The lease payments are apportioned
between fnance charges and reduction of the lease
obligation so as to achieve a constant rate of interest on
the remaining balance of the liability.
2.5. Defned contribution plans
The cost of defned contribution plans is the contribution
payable by the employer for that accounting period.
Contribution to a defned contribution plan, in respect
of service in a particular period, are recognised as an
expense in that period.
2.6. Taxation
No provision has been made for taxation as the entity is
a tax exempt institution in terms of section 10.1 (a) of the
Income Tax Act No. 58 of 1962.
2. 7. Property, plant and equipment
Buildings, plant and equipment is stated at cost less
accumulated depreciation and accumulated impairment
losses. Such cost includes the cost of replacing part
of the plant and equipment when that cost is incurred,
ACCOUNTING
POLICIES
For the 12 months
ended 31 March 2013
PAGE
79
if the recognition criteria are met. All other repair and
maintenance costs are recognised in proft or loss
as incurred.
Land is not depreciated as it is deemed to have an
indefnite life.
Items of property, plant and equipment are depreciated
using the straight line basis at rates that will reduce
the book values to estimated residual values over the
anticipated useful lives of the assets concerned.
The principal annual rates used for this purpose are:
Ancillary Vehicles 25%
Buses - Body 12,5%
Buses - Chassis, Engine, etc 8,33%
Ofce Equipment 20%
Ofce Furniture 10%
Operating Equipment 20%
Workshop Equipment 25%
Buildings 2%
Spare parts & Units 50%
Spare parts and units are capitalised at cost. It is not
practical to determine the carrying amount or cost of the
parts and units that were replaced or added. The carrying
amount or cost of replacement is estimated at what the
cost of the replaced part or unit was initially.
An item of plant and equipment is derecognised upon
disposal or when no future economic benefts are
expected to arise from the continued use of the asset.
Inferior equipment is written of in full in the year it is
acquired. Surpluses or defcits on the disposal of assets
are credited or charged to income. The surplus or defcit is
the diference between the net disposal proceeds and the
carrying amount of the asset.
Subsequent expenditure relating to property, plant and
equipment is capitalised if the subsequent expenditure
meets the defnition of an asset.
When parts of an item of property, plant and equipment
have diferent useful lives, they are accounted for as
separate items (major components) of property, plant and
equipment and shall be depreciated according to their
diferent useful life.
The gains and losses arising from the de-recognition
of property, plant and equipment (diference between
carrying amount less any revaluation surpluses and net
disposal proceeds) are included in surplus or defcit when
the item is derecognized.
The residual value and the useful life of each asset are
reviewed and adjusted at year end.
The depreciation charge for each year is recognized in
surplus and defcit unless it is included in the carrying
amount of another asset.
2.8. Impairment of non-fnancial assets
The Corporation assesses at each reporting date whether
there is an indication that an asset may be impaired. If any
such indication exists, or when annual impairment testing
for an asset is required, the Corporation estimates the
assets recoverable amount.
An assets recoverable amount is the higher of an assets
or cash-generating units fair value less costs to sell and
its value in use and is determined for an individual asset,
unless the asset does not generate cash infows that
are largely independent of those from other assets or
group of assets. Where the carrying amount of an asset
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash fows
are discounted to their present value using a pre-tax
discount rate that refects current market assessments
of the time value of money and the risks specifc to the
asset. In determining fair value less costs to sell, an
appropriate valuation model is used.
For an asset that does not generate cash infows that
are largely independent of those from other assets the
recoverable amount is determined for the cash-generating
unit to which the asset belongs. An impairment loss
is recognised in the income statement whenever the
carrying amount of the cash-generating unit exceeds
recoverable amount.
A previously recognised impairment loss is reversed if the
recoverable amount increases as a result of a change in
the estimates used to determine the recoverable amount,
but not to an amount higher than the carrying amount
that would have been determined (net of depreciation)
had no impairment loss been recognised in prior years.
2.9. Inventories
Inventories are stated at the lower of cost and net
realisable value. Cost is calculated using the weighted
average method. Net realisable value is the estimated
selling price in the ordinary course of business, and the
estimated costs necessary to make the sale.
Inventory cost includes the costs of purchase of
inventories comprising the purchase price, levies, pressing
and storage. Trade discounts, rebates and other similar
items are deducted in determining the costs of purchase.
2.10. Financial Instruments
2.10.1. Investments and Financial Assets
Financial assets within the scope of IAS 39 are classifed
as fnancial assets at fair value through proft or loss,
loans and receivables, held-to-maturity investments,
or available-for-sale fnancial assets, as appropriate.
When fnancial assets are recognised initially, they are
measured at fair value, plus, in the case of investments
not at fair value through proft or loss, directly attributable
transaction costs.
PAGE
80
The Corporation determines the classifcation of its
fnancial assets on initial recognition and, where allowed
and appropriate, re-evaluates this designation at each
fnancial year end.
2.10.2. Financial assets at fair value through proft or loss
Financial assets at fair value through proft or loss
includes fnancial assets held for trading and fnancial
assets designated upon initial recognition as at fair value
through proft or loss.
Financial assets are classifed as held for trading if they
are acquired for the purpose of selling in the near term.
Derivatives, including separated embedded derivatives
are also classifed as held for trading unless they are
designated as efective hedging instruments or a fnancial
guarantee contract. Gains or losses on investments held
for trading are recognised in proft or loss.
2.10.3. Held-to-maturity investments
Non-derivative fnancial assets with fxed or determinable
payments and fxed maturities are classifed as held-to-
maturity when the Corporation has the positive intention
and ability to hold to maturity. After initial measurement
held-to-maturity investments are measured at amortised
cost using the efective interest method. Gains and losses
are recognised in proft or loss when the investments
are derecognised or impaired, as well as through the
amortisation process.
2.10.4. Loans and receivables
Loans and receivables are non-derivative fnancial
assets with fxed or determinable payments that are not
quoted in an active market. After initial measurement
loans and receivables are carried at amortised cost using
the efective interest method less any allowance for
impairment. Gains and losses are recognised in proft or
loss when the loans and receivables are derecognised or
impaired, as well as through the amortisation process.
2.10.5. Available-for-sale fnancial investments
Available-for-sale fnancial assets are those non-
derivative fnancial assets that are designated as
available-for-sale or are not classifed in any of the three
preceding categories. After initial measurement,
available-for-sale fnancial assets are measured at
fair value with unrealised gains or losses recognised
directly in equity until the investment is derecognised or
determined to be impaired at which time the cumulative
gain or loss previously recorded in equity is recognised
in proft or loss.
2.10.6. Amortised cost
Held-to-maturity investments and loans and receivables
are measured at amortised cost. This is computed
using the efective interest method less any allowance
for impairment. The calculation takes into account
any premium or discount on acquisition and includes
transaction costs and fees that are an integral part of the
efective interest rate.
2.11. Impairment of fnancial assets
The Corporation assesses at each balance sheet date
whether a fnancial asset or group of fnancial assets is
impaired.
2.11.1. Assets carried at amortised cost
If there is objective evidence that an impairment loss
on assets carried at amortised cost has been incurred,
the amount of the loss is measured as the diference
between the assets carrying amount and the present
value of estimated future cash fows discounted at the
fnancial assets original efective interest rate. The
carrying amount of the asset is reduced through use of
an allowance account. The amount of the loss shall be
recognised in proft or loss.
If, in a subsequent period, the amount of the impairment
loss decreases and the decrease can be related
objectively to an event occurring after the impairment was
recognised, the previously recognised impairment loss
is reversed, to the extent that the carrying value of the
asset does not exceed its amortised cost at the reversal
date. Any subsequent reversal of an impairment loss is
recognised in proft or loss.
In relation to trade receivables, a provision for impairment
is made when there is objective evidence that the
Corporation will not be able to collect all of the amounts
due under the original terms of the invoice. The carrying
amount of the receivable is reduced through use of an
allowance account. Impaired debts are derecognised
when they are assessed as uncollectible.
2.11.2. Available-for-sale fnancial investments
If an available-for-sale asset is impaired, an amount
comprising the diference between its cost and its current
fair value, less any impairment loss previously recognised
in proft or loss, is transferred from equity to proft or loss.
Reversals in respect of equity instruments classifed as
available-for-sale are not recognised in proft or loss.
Reversals of impairment losses on debt instruments are
reversed through proft or loss, if the increase in fair value
of the instrument can be objectively related to an event
occurring after the impairment loss was recognised in
proft or loss.
2.12. Financial liabilities and equity instruments
2.12.1. Financial liabilities at fair value through proft or loss
Financial liabilities at fair value through proft or loss
includes fnancial liabilities held for trading and fnancial
liabilities designated upon initial recognition as at fair
value through proft or loss.
Financial liabilities are classifed as held for trading if
they are acquired for the purpose of selling in the near
term. Gains or losses on liabilities held for trading are
recognised in proft or loss.
PAGE
81
2.12.2. Derecognition of fnancial assets and liabilities
FINANCIAL ASSETS
A fnancial asset (or, where applicable a part of a
fnancial asset or part of a group of similar fnancial
assets) is derecognised when:
- the rights to receive cash fows from the asset have
expired;
- the Corporation retains the right to receive cash fows
from the asset, but has assumed an obligation to pay
them in full without material delay to a third party under
a pass through arrangement; or
- the Corporation has transferred its rights to receive
cash fows from the asset and either (a) has transferred
substantially all the risks and rewards of the asset, or
(b) has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.
FINANCIAL LIABILITIES
A fnancial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing fnancial liability is replaced by another
from the same lender on substantially diferent terms,
or the terms of an existing liability are substantially
modifed, such an exchange or modifcation is treated
as a derecognition of the original liability and the
recognition of a new liability, and the diference in the
respective carrying amounts is recognised in proft or loss.
2.13. Provisions
Provisions are recognised where the Corporation has a
present legal or constructive obligation as a result of a
past event, a reliable estimate of the obligation can be
made and it is probable that an outfow of resources
embodying economic benefts will be required to settle
the obligation.
2.14. Key management assumptions, estimates
and judgements
The preparation of fnancial statements requires the use
of certain critical accounting estimates. It also requires
management to exercise its judgement in the process
of applying the Corporations accounting policies.
The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates
are signifcant to the fnancial statements, are disclosed.
The key assumptions, estimates and judgements
concerning the future and other key sources of estimation
uncertainty at the balance sheet date, that have a
signifcant risk of causing a material adjustment to the
carrying amount of the assets and liabilities within the next
fnancial year are discussed below.
The residual values and estimated useful lives of property,
plant and equipment were assessed and found to be
reasonable. Residual values of motor vehicles are
determined with reference to market related prices of
vehicles in a similar condition.
2.15. Committements
Items are classifed as commitments where the corporation
has committed itself to future transactions.
2.16. Share capital and capitalisation reserve
Share capital is a contribution by the executive authority of
capital. This is authorised for issue in the
government gazette.
Capitalisation reserves are the capital contributions for
which the amounts exceeds the authorised share capital.
2.17. Future standards
The accounting standards board agreed that government
business enterprises (entities listed in schedule 3B and 3D
of the public fnance management act) should retain the
status quo regarding the reporting frameworks applied in
preparing their fnancial statements. This means that
Mayibuye Transport Corporation should continue to apply
statements of GAAP.
The board will undertake research in the second half of the
year (2013/2014) to determine which reporting framework
GBEs should apply going forward. The board will consult
with users of GBEs fnancial statements to assess
whether IFRSs or standards of GRAP provides the most
appropriate information to meet their information needs.
2.18. Change in accounting estimate
During the year there has been a change in accounting
estimate due to the revision of remaining useful life of
buses and vehicles.
PAGE
82
4. INVENTORIES 2013 2012
ZAR ZAR
Fuel, Oils and Greases 982509 252186
Consumables 197788 155803
Tyres & Tubes 388154 286879
Ancillary Vehicle Spares 15910 12066
Operational Equipment Spares 179805 118259
Stationery, Tickets and Waybills 81213 41530
4477424 866723
Inventories included in cost of services rendered 17416028 13959999
5. TRADE AND OTHER RECEIVABLES 2013 2012
ZAR ZAR
Trade receivables 260705 242155
Less: Impairment of receivables (260705) (241860)
Other receivables 1093861 369620
974383 369916
Trade receivables are non-interest bearing and are generally on 30-60 days terms.
As at 31March 2013, trade receivables of R260 705 (2012: R 241 860) for the Corporation were impaired and fully provided for. There were no
movements in the provision for impairment of receivables during the year.
Individually impaired
ZAR
At 1April 2011 241 860
Charge for the year -
Utilised -
At 31 March 2012 241 860
Charge for the year 18 845
Utilised -
At 31March 2013 260 705
6. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand, call deposits and cash balances with banks.
Cash and cash equivalents included in the cash flow statement comprise the following balance sheet
amount.
2013 2012
ZAR ZAR
Cash and cash equivalent 101765 105900
101765 105900
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of
between one day and three months, depending on the immediate cash requirements of the Corporation, and earn interest at the respective
short-term deposit rates. The fair value of cash and short-term deposits is R101 765 (2012: R105 900).
As at 31 March 2013 the corporation had a facility of R 270 000 available from Standard Bank for the financing of office automation systems
NOTES
to the income
statement
PAGE
83
7. SHARE CAPITAL AND CAPITALISATION RESERVE 2013 Restated 2012
ZAR ZAR
Authorised:
Ordinary shares of R 1 each 120000000 60000000
Issued and fully paid
Ordinary shares of R 1 each 120000000 60000000
The authorised share capital was increased to 120 000 000 as per the notification in the Government Gazette dated 28 March 2013. 100%
of the shares are held by the Department of Transport and the entity has one class of ordinary shares which carry no right to the Provincial
Administration. The entity has one class of ordinary shares which carry no right to fixed income.
8. FINANCE LEASE LIABILITY 2013 Restated 2012
ZAR ZAR
At the balance sheet date, the entity had outstanding commitments under bus finance leases, which
fall due as follows:
- 13547429
Within one year 6517658 6118515
In the second to fifth years inclusive 5093154 8815522
After five years - -
At the balance sheet date, the entity had office equipment finance leases, which fall due as follows: 287418 510042
Within one year 287418 227239
In the second to fifth years inclusive - 282803
After five years - -
Total finance lease liability 5093154 9098324
During the 2013 financial year there were no finance lease liabilities raised.
During the 2012 financial year, the Corporation entered into a lease agreement with MAN Financial Services for the supply of six buses. The
lease is repayable within 36 months at monthly instalments of R267 435.75. The interest implicit is 9%. At the end of the lease term the Corpo-
ration has an option to acquire the buses outright, extend the agreement or to return the buses to MAN Financial Services. An interest portion
of R355 228 is included in the lease liability payable within one year.
9. TRADE AND OTHER PAYABLES 2013 Restated 2012
ZAR ZAR
Trad payables 3461183 3519008
Other payables 686059 692911
- Private hire deposits - 76710
- Income received in advance 75949 96748
- Additional payables 610110 519453
Payroll accruals 4392531 5409960
- Accrued Provident Fund - 492447
- Accrued PAYE - 319851
- Accrued 13th Cheque 1094348 726313
- Accrued Medical Aid - 361384
- Accrued Workmens Compensation 926695 570636
- Accrued Employee Insurance - 132275
- Accrued leave pay 2371488 2807054
8539773 9621879
The average credit period on purchases of goods is 30 days. No interest is charged on the trade payables for the first 60 days from the date of
the invoice. Thereafter, interest is charged at 2% on the overdue amount.
PAGE
84
10. PROVISIONS 2013 2012
ZAR ZAR
Employee Cost : Performance bonuses - -
- -
11. REVENUE 2013 Restated 2012
ZAR ZAR
Revenue comprises of passenger fares and special hire revenue.
An analysis of the Entitys revenue is as follows:
Passenger fares 22938848 19540277
Special hire 4273781 3747433
Contract Hire 464880 450848
Total revenue 27677509 23287710
A major portion of the Corporations revenue comprises cash sales to passengers. It should be recognised that controls are designed to
provide reasonable, but not absolute assurance that errors and irregularities will not occur, and that procedures are performed in accordance
with managements intentions. There are inherent limitations that should be recognised in considering the potential effectiveness of any
system of internal controls. The Corporation utilises the sole service provider in South Africa to record bus fare information. There are no
unreconciled differences between banking of cash and revenue collected per the revenue application system.
12. LOSS FROM OPERATIONS
12.1 Loss from operations has been arrived at after charging (crediting): 2013 2012
ZAR ZAR
INCOME
Interest income 67583 123481
EXPENSES
Audit fees 2724502 2693371
Audit Committee (see note 12.2) 58108 40002
Defined contribution plan 4479636 4062128
Directors Emoluments (see note 12.3) 428681 442399
Depreciation 14947105 11614771
Insurance 1195347 1441560
Interest - Discounting - 318679
Loss on impairement of PPE 181453 994743
Loss on scrapping of PPE 1033663 358284
Loss on disposal of PPE 296273 6102
Inventory impairment reversed (39807) -
Finance lease charges 1684551 1114489
Consulting fees 211305 340665
Staff Costs 46506195 41314771
The number of permanent employees for the financial year ended was: 209 196
12.2 AUDIT COMMITTEE 2012
Meetings Travel Total
Fees for attending meetings ZAR ZAR ZAR
J. Mdeni - Chairperson 22143 7044 29187
T. Jama 16524 1107 17631
R. Luzuka 11016 274 11290
49683 8426 58108
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85
12.3 DIRECTORS EMOLUMENTS 2013
Meetings Allowance Travel Total
ZAR ZAR ZAR ZAR
P.L.C. Maseti - Chairperson 76713 12000 2181 90894
S.J. Nyengane - Vice-chairperson 76368 - 3587 79955
P.P. Balfour 14770 - 885 15655
A.S. Mandla 15770 - - 15770
S.G. Gomba 8762 - 245 9007
A.M. Church 37302 - 1626 38928
N.E.P. Loyilane 41556 - 2140 43696
J. Mdeni 22032 - 7001 29033
R. Luzuka 79679 - 3051 82730
M Vaaiboom 21278 - 1734 23012
394230 12000 22450 428680
Directors Emoluments 2012
Meetings Travel Total
ZAR ZAR ZAR
P.L.C. Maseti - Chairperson 86634 2079 88713
S.J. Nyengane - Vice-chairperson 84745 4228 88973
P.P. Balfour 12516 467 12983
M. Tuswa - - -
A.J. De Vries - - -
T.A.Thomas 7425 689 8114
F.S. Loliwe 16762 2278 19040
A.M. Church 46785 1772 48557
N.E.P. Loyilane 36965 3366 40331
N. Shweni-Booysen 42653 2226 44879
Z. Pakati 24270 1101 25371
J. Mdeni 8131 2763 10894
R. Luzuka 51718 2826 54544
418604 23796 442400
PAGE
86
12.4 SENIOR MANAGEMENT 2013
CEO OSM CFO HOD: HR HOD: Operations HOD:
Engineering
L.R. Mbinda N. Van Wyk L. Coetzer L.C. Mtise N. Leni Z. Leni
ZAR ZAR ZAR ZAR ZAR ZAR
Basic 1097355 997977 219729 615345 634145 570995
Car 120000 - 12000 64548 49062 49812
Housing allowance - - - 17563 - -
Cellphone
allowance
32259 5139 - 4147 - -
Leave paid out 97280 - - - - -
Medical aid 52151 - 7366 - 11260 22793
Provident 177772 - - 107993 111292 100210
Study Assistance - 56940 - - - -
Performance
Bonus
217092 - - - - -
13th cheque - 55429 36552 51279 48801 47619
13th cheque
Accrual
- 20786 - 25639 16267 15873
UIF 1641 1641 624 1641 1790 1641
Total 1795550 1137912 276271 888156 872616 808943
12.5 SENIOR MANAGEMENT 2012
CEO OSM CFO HOD: HR HOD: Operations HOD:
Engineering
L.R. Mbinda N. Van Wyk L. Coetzer L.C. Mtise N. Funani Z. Leni
ZAR ZAR ZAR ZAR ZAR ZAR
Basic 915584 1000800 655303 571982 539880 533428
Car 120000 - 36000 64548 45288 49812
Housing allowance - - - 17563 - -
Cellphone
allowance
20428 - - - 2378 3679
Leave paid out - - - - - -
Medical aid 46562 - 20815 - 9496 20945
Provident 148325 - - 100415 94618 93479
13th cheque - - 51178 47568 45420 44307
13th cheque
Accrual
171501 21000 22754 23833 14997 14817
UIF 1497 1497 1497 1497 1497 1497
Total 1423898 1023297 787547 827406 753574 761964
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87
13. IRREGULAR EXPENDITURE 2013 2012
ZAR ZAR
Reconciliation of irregular expenditure
Opening balance 4178971 -
Add: Irregular expenditure - relating to prior year - -
Add: Irregular expenditure - relating to current
year
232905 4178971
Less: Amounts condoned - -
Less: Amounts recoverable (not condoned) - -
Less: Amounts not recoverable (not condoned) - -
Less: Irregular expenditure awaiting
condonation
(4411876) -
- 4178971
Analysis of awaiting condonation per age
classification
Current year 232905 4178971
Prior years 4178971 -
Total 4411876 4178971
2012
Details of irregular expenditure - prior year ZAR
Incident Disciplinary steps taken/criminal proceedings
Non-compliance with SCM procedures The Logistics Officer was dismissed and the HOD:
SCM subsequently resigned after receiving a
Notice of Disciplinary Enquiry.
4178971
4178971
2013
Details of irregular expenditure - current year ZAR
Incident Disciplinary steps taken/criminal proceedings
Non-compliance with SCM procedures:
Less than 3 quotations
Still under inquiry 83213
Non-compliance with SCM procedures:
No valid tax clearance certificate
Still under inquiry 149692
232905
Details of irregular expenditure awaiting condonation ZAR
Incident Awaiting to be condoned by (condoning authority)
Non-compliance with SCM procedures Accounting authority 4178971
Non-compliance with SCM procedures:
Less than 3 quotations
Accounting authority 83213
Non-compliance with SCM procedures:
No valid tax clearance certificate
Accounting authority 149692
4411876
PAGE
88
14. FRUITLESS AND WASTEFUL EXPENDITURE 2013 Restated 2012
ZAR ZAR
Reconciliation of fruitless and wasteful expenditure
Opening balance 158516 -
Fruitless and wasteful expenditure relating to
prior year
- -
Fruitless and wasteful expenditure relating to
current year
24565 158516
Less: Amounts condoned - -
Less: Amounts transferred to receivables for
recovery
(183081) -
Fruitless and wasteful expenditure awaiting
condonement
- -
Closing Balance - 158516
2013
Analysis of Current Years Fruitless and wasteful
expenditure
ZAR
Incident Disciplinary steps taken/criminal
proceedings
Non-compliance with Cell phone Policy:
Cell phone limit exceed in 2012
Acknowledgement of Debt forms
have
been issued to the employees.
158516
Non-compliance with Cell phone Policy:
Cell phone limit exceed in 2013
Acknowledgement of Debt forms
have
been issued to the employees.
24565
Total 183081
15. CASH GENERATED BY OPERATIONS FROM/(USED IN) OPERATING ACTIVITIES 2013 Restated 2012
R R
Net loss for the year (2970318) (18690196)
Adjustments for:
Loss on sale of property, plant and equipment 296273 6102
Impairment loss 181453 994743
Assets written off 1010820 358284
Inventory impairment reversed (39807) -
Depreciation of property, plant and equipment 10504811 17693775
2170275
Interest on finance leases 1684551 904668
Interest income (67583) (123481)
Operating cash flow before movements in working capital 12770476 1143895
(Increase) / (Decrease) in inventories (3610701) 604792
(Increase) / (Decrease) in receivables (604467) 157291
(Increase) / (Decrease) in payables (622786) 2803336
7932521 4709314
NOTES
to the cash fow
statement
PAGE
89
16 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Corporations principal fnancial liabilities comprise of trade and other payables. The main purpose of these
fnancial liabilities is to recognise amounts payable by the Corporation. The Corporation has various fnancial assets
such as trade and other receivables and cash and short-term deposits, which arise directly from its operations.
The Corporation has no signifcant concentration of credit risk, with exposure spread over a large number of
counterparties and customers.
The main risks arising from the Corporations fnancial instruments are cash fow interest rate risk, liquidity risk
and credit risk. The Board of Directors reviews and agrees policies for managing each of these risks which are
summarised below.
Interest rate risk
The Corporation is exposed to interest rate risk as it has bus lease agreements in place. As a result, the term of the
lease agreements are for a period of three years.
Credit risk management
The Corporation trades only with recognised, creditworthy third parties. Receivable balances are monitored on an
ongoing basis with the result that the Corporations exposure to bad debts is not signifcant. The maximum exposure is
the carrying amount as disclosed in Note 5. There are no signifcant concentrations of credit risk within the Corporation.
With respect to credit risk arising from the other fnancial assets of the Corporation, which comprise of cash and
short-term deposits, the Corporations exposure to credit risk arises from default of the counterparty, with a maximum
exposure equal to the carrying amount of these instruments.
Liquidity risk
The Corporation monitors its risk to a shortage of funds by considering the maturity of both its fnancial assets and
projected cash fows from operations. The Corporations objective is to maintain a balance between continuity of
funding and fexibility through use of of the grant-in-aid funding.
Foreign currency risk
The Corporation is not exposed to foreign currency risk.
Capital management
The primary objective of the Corporations capital management is to ensure that it continue to provide a safe and
reliable public transport service and to maximise internal revenue collection. In addition the corporation manages its
capital to ensure that the entity will continue as a going concern. Budgets and fnancial forecasts are prepared and
reviewed by the accounting authority and disclosed to the Provincial Department of Transport and the Eastern Cape
Provincial Treasury for funding purposes.
17. CONTINGENT LIABILITIES
During the reporting period, there were matters arising that gives rise to contingent liabilities:
The Corporation is in the process of obtaining a title deed for the Zwelitsha depot. A historic land valuation was performed which was used
for negotiation purposes to draft and sign a settlement agreement. In addition, the land was surveyed to assess the exact boundaries. At
year-end, the Corporation is awaiting correspondance from the Land Claims Commission to purchase the land. The possible cost element of
the outright acquisition (title deed) of the land is uncertain.
There are three Labour dispute cases as at 31 March 2013 and there are currently no indication as to the probability of the success of the
claim
Anticipated legal
fess
Estimated claim Nature Reffered to Total Contigent
liability
Mayibuye Vs Qamarana 150000 150000 Labour dispute Labour Court 300000
Mayibuye Vs Pakati 30000 120978 Labour dispute Labour Court 150978
Mayibuye Vs Lusiba - 43426 Labour dispute CCMA 43426
180000 314404 494404
PAGE
90
18. COMMITMENTS 2013 2012
ZAR ZAR
Commitments
Commitments for operating expenditure ordered, but no delivery has taken place at the
reporting date. 191975
-
19. SUBSEQUENT EVENTS
The corporation has during the month of May 2013 took ownership of fve buses which were previously on lease from
MAN fnancial services. The initial cost of the buses amounted to R 7 641 080.29
20. RELATED PARTY TRANSACTIONS

20.1 Identifcation of related parties
Eastern Cape Department of Transport. The Department is the sole shareholder of the Corporation and the Corporation
acts as the service delivery arm of the the Department. The Department provides the grant-in-aid and the Corporation
report on its activities.
Board of Directors - Refer to note 12.3 for details of transactions with directors. The Board is appointed by the Executive
Authority and fulfl a governance and oversight role.
Key management personnel - Refer to note 12.4 for detail of transactions with key personnel. Management is responsible
for the day-to-day operations of the Corporation.
20.2 RELATED PARTY TRANSACTIONS
Significant transactions occurred between the Department of Transport by way of
receiving grant funding. 2013 2012
ZAR ZAR
Grant in aid received 63773000 51429000
Capital grant received 5000000 10000000
68773000 61429000
PAGE
91
21. GOING CONCERN
We draw attention to the fact that at 31 March 2013, the Corporation had an accumulated defcit of
R91 322 969 (Restated 2012: R82 360 224).
The fnancial statements have been
prepared on the basis of accounting
policies applicable to a going
concern. This basis presumes that
funds will be available to fnance
future operations and that the
realisation of assets and settlement
of liabilities, contingent obligations
and commitments will occur in the
ordinary course of business.
The ability of the Corporation to
continue as a going concern is
dependent on a number of factors.
The most signifcant of these is that
the directors continue to procure
funding for the ongoing operations
of the Corporation by recapitalisation
of the bus feet in order to increase
revenues, as well as negotiations
and pro-active budgeting and
communication thereof to the
Department of Transport, in an efort
to obtain additional funding in the
form of unconditional grants.
The Department of Transport has
approved a grant-in-aid of R74 088
000 for the 2013/14 fnancial year
and R85 000 000 in the 2014/15
fnancial year.
The Corporation present valued its own-
revenue stream to be R91 157 000
over the next three fnancial years.
PAGE
92
2012I 13
PAGE
93
05
HR
MANAGEMENT
REPORT
PAGE
94
STRATEGIC GOAL
Guided by the ethos of service & commitment to the maintenance of best bus company standards, the division strives to
render an efective and equitable service to all MTC employees. To lend support to the Human Resources and Business
Development Strategy by recruiting outstanding candidates that will add value to the organization thereby leading to
the realization of the Corporations vision.
To achieve the aforementioned vision, we embrace the following core values:
PERSONNEL EXPENDITURE BY PROGRAMME, 2012/2013
Programme
Total
Expenditure
Personnel
Expenditure
Training
Expenditure
Professional
and Special
Services
Expenditure
Personnel
Expenditure
as a % of total
expenditure
Number of
Employees
Average
Personnel
Cost per
Employee
Office of the CEO 2 053 241 2 020 879 9 198 23 164 4% 2 1 026 621
Office of Strategic
Management
3 255 434 3 182 707 32 191 40 536 7% 10 325 543
Finance 8 350 848 8 204 366 82 782 63 700 18% 27 309 291
Human Resources 4 004 145 3 887 474 41 391 75 280 9% 40 100 104
Engineering 13 022 002 12 730 551 128 773 162 678 28% 67 194 358
Operations 15 820 525 15 450 432 156 367 213 726 34% 73 216 720
TOTAL AS PER AFS 46 506 195 45 476 409 450 702 579 084 100% 219 212 357
PERSONNEL COSTS BY SALARY BANDS, 2012/2013
Salary Band
Personnel
Expenditure
% of Total
Personnel Cost
Number of
Employees
Average
Personnel Cost
per Employee
Bargaining Unit (T2-T10) 32 125 757 69 187 171 795
Assistant Management (T11) 3 730 331 8 13 286 949
Deputy Management (T12) 974 688 2 3 324 896
Management (T13-T15) 3 119 832 7 8 389 979
Senior Management (T16-T17) 890 181 2 2 445 091
Executive Management (T18-T19) 3 916 932 8 5 783 386
Top Management (T20-T22) 1 748 474 4 1 1 748 474
TOTAL AS PER AFS 46 506 195 100 219 212357
REPORT BY THE
EXECUTIVE
MANAGER
Human Resources
EXPENDITURE
Superior Performance - driven by the quest for
continuous improvement and excellence in rendering HR
services (Industrial Relations, Training & Development
Personnel & Organizational Development), as well as
compliance with all relevant pieces of legislation.
Being Proactive - work towards exceeding our customers
expectations by proactively assessing and addressing
their current and future needs.
Ethical Business Practices - we will continually uphold
strong business ethics and values, and ensure the
transfer of these to our internal employees.
We will further see to the development of sound human
resources policies and procedures, serve as a custodian
of these policies by ensuring compliance and adherence
to them.
PAGE
95
SALARIES, OVERTIME AND MEDICAL ASSISTANCE BY PROGRAMME, 2012/2013
Programme
Salaries Overtime Medical Assistance
Amount
As % of Total
Expenditure
Amount
As % of Total
Expenditure
Amount
As % of Total
Expenditure
Office of the CEO 2 041 659 99% 0 0% 52 151 2.5%
Office of Strategic Management 3 240 602 96% 20 666 0.61% 12 769 0.38%
Finance 7 465 428 89% 74 912 0.89% 317 521 3.8%
Human Resource Management 3 499 978 87% 57 386 1.4% 470 720 11.8%
Engineering 11 745 095 90% 459 658 3.5% 855 456 6.6%
/Operations 14 096 190 89 464 238 2.9% 932 064 5.9%
TOTAL AS PER AFS 42 088 952 1076860 2.3% 2640681 5.7%
EMPLOYMENT AND VACANCIES BY PROGRAMME, 31 MARCH 2013
Programme Number of Posts on
approved establishment
Number of Posts Filled Vacancy Rate Number of Posts
filled additional to
establishment
Office of the CEO 3 2 33% 0
Office of Strategic
Management
10 8 20% 0
Finance 32 27 16% 0
Human Resource
Management
42 42 0 0
Engineering 61 67 0 6
Operations 82 73 11% 0
TOTAL 230 219 5% 6
EMPLOYMENT AND VACANCIES BY SALARY BANDS, 31 MARCH 2013
Salary Band Number of Posts on
approved establishment
Number of Posts Filled Vacancy Rate Number of Posts
filled additional to
establishment
Bargaining Unit (T2-T10) 197 188 4.6% 6
Assistant Management (T11) 13 13 0 0
Deputy Management (T12) 3 3 0 0
Management (T13-T15) 9 8 11% 0
Senior Management (T16-T17) 2 2 0 0
Executive Management
(T18-T19)
5 4 20% 0
Top Management (T20-T22) 1 1 0 0
TOTAL 230 219 4.8% 6
EMPLOYMENT AND VACANCIES BY CRITICAL OCCUPATION, 31 MARCH 2013
Critical Occupation Number of Posts on
approved establishment
Number of Posts Filled Vacancy Rate Number of Posts filled
additional to
establishment
Compliance Manager 1 0 100% 0
Chief Financial Officer 1 0 100% 0
TOTAL 2 0 100% 0
EMPLOYMENT
& VACANCIES
PAGE
96
The following table summarises the number of jobs that were evaluated during the year under review.
The table also provides statistics on the number of posts that were upgraded or downgraded.
JOB EVALUATION BY SALARY BAND 2012/2013
Salary Band
Number of
posts on
approved
establishment
Number
of Jobs
Evaluated
% of posts
evaluated by
salary bands
Posts Upgraded Posts downgraded
Number
% of posts
evaluated
Number
% of posts
evaluated
Bargaining Unit (T2-T10) 197 3 2 0 0 0 0
Assistant Management
(T11)
13 4 31 1 25 0 0
Deputy Management
(T12)
3 0 0 0 0 0 0
Management (T13-T15) 9 1 11 0 0 0 0
Senior Management
(T16-T17)
2 1 50 0 0 0 0
Executive Management
(T18-T19)
5 0 0 0 0 0 0
Top Management
(T20-T22)
1 0 0 0 0 0 0
TOTAL AS PER AFS 230 9 4 1 11 0 0
PROFILE OF EMPLOYEES WHOSE POSITIONS WERE UPGRADED DUE TO THEIR POSTS BEING UPGRADED
Beneficiary African Asian Coloured White Total
Female 0 0 0 0 0
Male 1 0 0 0 0
TOTAL 1 0 0 0 0
Employees with a disability 0 0 0 0 0
The following table provides a summary of the number of employees whose positions were upgraded due to their post
being upgraded. The number of employees might difer from the number of posts upgraded since not all employees are
automatically absorbed into the new posts and some of the posts upgraded could also be vacant.
JOB
EVALUATION
PAGE
97
The following table summarises the number of cases where remuneration bands exceeded the
grade determined by job evaluation. Reasons for the deviation are provided in each case.
EMPLOYEES WITH SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION BY OCCUPATION
Occupation Number of
Employees
Job Evaluation
level
Remuneration
level
Reason for
Deviation
None 0 N/A N/A N/A
Total Number of Employees whose remuneration
exceeded the grade determined by job evaluation in
2012/13
0 As %of Total
Employed
0
The following table summarises the benefciaries of the above in terms of race, gender, and disability.
PROFILE OF EMPLOYEES WHO HAVE SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION
Beneficiary African Asian Coloured White Total
Female 0 0 0 0 0
Male 0 0 0 0 0
TOTAL 0 0 0 0 0
Employees with a
disability
0 0 0 0 0
PAGE
98
ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION
Critical Occupation Number of employees
at beginning of period-
April 2012
Appointments Terminations Turnover Rate
Job Title 65 22 21 32%
Job Title 1 0 1 100%
TOTAL 66 22 22 33%
The table below identifes the major reasons why staf left the Corporation
REASONS WHY STAFF LEFT THE ENTITY
Termination Type Number % of Total Resignations
Death 2 6
Resignation 7 21
Expiry of Contract 3 9
Dismissal operational changes 0 0
Dismissal-misconduct 14 43
Dismissal inefficiency 0 0
Discharged due to ill-health 0 0
Retirement 2 6
Other 5 15
TOTAL 33 100
This section provides information on changes in employment over the fnancial year. Turnover rates provide an
indication of trends in the employment profle of the department. The following tables provide a summary of turnover
rates by salary band and critical occupations.
Salary Band Number of employees
at beginning of period-
April 2012
Appointments Terminations Turnover Rate
Bargaining Unit (T2-T10) 188 30 31 16%
Assistant Management (T11) 13 0 0 0
Deputy Management (T12) 3 1 1 33%
Management (T13-T15) 7 2 1 14%
Senior Management (T16-T17) 0 2 0 0
Executive Management
(T18-T19)
5 0 0 0
Top Management (T20-T22) 1 0 0 0
TOTAL 217 35 33 15%
STAFF
MOVEMENT
PAGE
99
TOTAL NUMBER OF EMPLOYEES
(including employees with disabilities) in each of the following occupational categories as at 31 March 2013
Occupational
category
Male Female
Total
African Coloured Indian White African Coloured Indian White
Legislators, senior officials and
managers
3 1 0 1 1 0 0 0 6
Professionals 4 0 0 3 4 0 1 2 14
Technicians and associate
professionals
28 1 0 2 4 0 0 0 35
Clerks 95 2 0 2 8 2 0 0 109
Service and sales workers 0 0 0 0 0 0 0 0 0
Skilled agriculture and fishery
workers
0 0 0 0 0 0 0 0 0
Craft and related trades workers 0 0 0 0 0 0 0 0 0
Plant and machine operators and
assemblers
0 0 0 0 0 0 0 0 0
Elementary occupations 38 0 0 0 17 0 0 0 55
Total 168 4 0 8 34 2 1 2 219
Employees with disabilities 2
TOTAL NUMBER OF EMPLOYEES
(including employees with disabilities) in each of the following occupational categories as at 31 March 2013
Occupational
band
Male Female
Total
African Coloured Indian White African Coloured Indian White
Top Management( 1 0 0 0 0 0 0 0 1
Senior Management 2 1 0 1 1 0 0 0 5
Professionally qualified and
experienced specialists and mid-
management
4 0 0 3 4 0 1 2 14
Skilled technical and
academically qualified workers,
junior management, supervisors,
foreman and superintendents
29 1 0 2 4 0 0 0 36
Semi-skilled and discretionary
decision making
95 2 0 2 8 2 0 0 109
Unskilled and defined decision
making
38 0 0 0 17 0 0 0 55
Total 168 4 0 8 34 2 1 2 219
EMPLOYMENT
EQUITY
PAGE
100
PROMOTIONS
Occupational
category
Male Female
Total
African Coloured Indian White African Coloured Indian White
Top Management 0 0 0 0 0 0 0 0 0
Senior Management 0 0 0 0 0 0 0 0 0
Professionally qualified and
experienced specialists and mid-
management
0 0 0 0 0 0 0 0 0
Skilled technical and
academically qualified workers,
junior management, supervisors,
foreman and superintendents
1 0 0 0 0 0 0 0 1
Semi-skilled and discretionary
decision making
1 0 0 0 2 0 0 0 3
Unskilled and defined decision
making
1 0 0 0 0 0 0 0 1
Total 3 0 0 0 2 0 0 0 5
Employees with disabilities 0 0 0 0 0 0 0 0
RECRUITMENT
Occupational
category
Male Female
Total
African Coloured Indian White African Coloured Indian White
Top Management 0 0 0 0 0 0 0 0 0
Senior Management 2 0 0 1 0 0 0 0 3
Professionally qualified and
experienced specialists and mid-
management
1 0 0 0 1 0 0 0 2
Skilled technical and
academically qualified workers,
junior management, supervisors,
foreman and superintendents
0 0 0 0 0 0 0 0 0
Semi-skilled and discretionary
decision making
22 0 0 1 2 0 0 0 25
Unskilled and defined decision
making
5 0 0 0 0 0 0 0 5
Total 30 0 0 2 3 0 0 0 35
Employees with disabilities
PAGE
101
TERMINATIONS
Occupational
category
Male Female
Total
African Coloured Indian White African Coloured Indian White
Top Management 0 0 0 0 0 0 0 0 0
Senior Management 0 0 0 0 0 0 0 1 1
Professionally qualified and
experienced specialists and mid-
management
3 0 0 0 0 0 1 0 4
Skilled technical and
academically qualified workers,
junior management, supervisors,
foreman and superintendents
0 0 0 0 0 0 0 0 0
Semi-skilled and discretionary
decision making
22 0 0 0 2 2 0 0 26
Unskilled and defined decision
making
1 0 0 0 0 0 0 0 1
Total 26 0 0 0 2 2 1 1 32
Employees with disabilities 0 0 0 0 0 0 0 0 0
DISCIPLINARY ACTION
Occupational
category
Male Female
Total
African Coloured Indian White African Coloured Indian White
Bargaining Unit (T2-T10) 28 0 0 0 6 0 0 0 34
Assistant Management (T11) 1 0 0 0 0 0 0 0 1
Deputy Management (T12) 1 0 0 0 0 0 0 0 1
Management (T13-T15) 2 0 0 1 0 0 0 0 3
Senior Management (T16-T17) 0 0 0 0 0 0 0 0 0
Executive Management (T18-T19) 0 0 0 0 0 0 0 0 0
Top Management (T20-T22) 0 0 0 0 0 0 0 0 0
TOTAL 32 0 0 1 6 0 0 0 39
SKILLS DEVELOPMENT
Occupational
category
Male Female
Total
African Coloured Indian White African Coloured Indian White
Legislators, senior officials and
managers
1 0 0 0 1 0 0 1 3
Professionals 2 0 0 0 3 0 0 0 5
Technicians and associate
professionals
5 0 0 0 1 0 0 0 6
Clerks 3 0 0 0 4 0 0 0 7
Service and sales workers 0 0 0 0 0 0 0 0 0
Skilled agriculture and fishery
workers
0 0 0 0 0 0 0 0 0
Craft and related trades workers 0 0 0 0 0 0 0 0 0
Plant and machine operators and
assemblers
13 0 0 0 15 0 0 0 28
Elementary occupations 9 0 0 0 3 0 0 0 12
Total 33 0 0 0 27 0 0 1 61
Employees with disabilities 2 0 0 0 0 0 0 0 2
PAGE
102
PERFORMANCE REWARDS BY RACE, GENDER AND DISABILITY
Race and Gender
Beneficiary Profile Cost
Number of
beneficiaries
Number of
employees
% of total within
group
Cost
ZAR
Average
cost per employee
African, Male 1 1 0.6 219012 219012
Asian, Male
Coloured Male
White Male
African Female
Asian Female
Coloured Female
White Female
TOTAL 1 1 219012 219012
FOREIGN WORKERS BY SALARY BAND
Salary Band
01 April 2012 31 March 2013 Change
Number % of total Number % of total Number % Change
Bargaining Unit (T2-T10) 1 100 1 100 0 0
Assistant Management (T11) 0 0 0 0 0 0
Deputy Management (T12) 0 0 0 0 0 0
Management (T13-T15) 0 0 0 0 0 0
Senior Management (T16-T17) 0 0 0 0 0 0
Executive Management (T18-T19) 0 0 0 0 0 0
Top Management (T20-T22) 0 0 0 0 0 0
TOTAL 1 100 1 100 0 0
FOREIGN WORKERS BY MAJOR OCCUPATION
Major Occupation 01 April 2012 31 March 2013 Change
Number % of total Number % of total Number % Change
Mechanical Artisan 1 0.5% 1 0.5% 0 0
To encourage good performance, the corporation has granted the following performance rewards during the year under
review. The information is presented in terms of race, gender, and disability.
PERFORMANCE
REWARDS
PAGE
103
The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost
of the leave is also provided.
SICK LEAVE
Salary Band
Total
days
% Days
with Medical
certification
Number of
Employees
using sick leave
% of total
employees
using sick leave
Average
days per
employee
Estimated
Cost (R000)
Bargaining Unit (T2-T10) 2353 2353 146 90.7% 16.1 1 334 104
Assistant Management (T11) 53 53 5 3.1% 10.6 50 192
Deputy Management (T12) 42 42 4 2.5% 10.5 45 035
Management (T13-T15) 44 2 3 1.9% 14.7 56 631
Senior Management (T16-T17) 3 3 1 0.6% 3 4 407
Executive Management (T18-T19) 27 27 2 1.2% 13.5 69 807
Top Management (T20-T22) 0 0 0 0% 0 0
TOTAL 2522 2480 161 100% 15.7 1 560 176
DISABILITY LEAVE (TEMPORARY AND PERMANENT)
Salary Band
Total
days
% Days
with Medical
certification
Number of
Employees
using disability
leave
% of total
employees
using
disability
leave
Average
days per
employee
Estimated
Cost (R000)
Bargaining Unit (T2-T10) 0 0 0 0 0 0
Assistant Management (T11) 0 0 0 0 0 0
Deputy Management (T12) 0 0 0 0 0 0
Management (T13-T15) 0 0 0 0 0 0
Senior Management (T16-T17) 0 0 0 0 0 0
Executive Management (T18-T19) 0 0 0 0 0 0
Top Management (T20-T22) 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0
LEAVE
UTILISATION
The table below summarises the utilisation of annual leave.
ANNUAL LEAVE
Salary Band Total days taken Number of Employees
using annual leave
Average per
employee
Bargaining Unit (T2-T10) 3945 224 18
Assistant Management (T11) 373 17 22
Deputy Management (T12) 72 4 18
Management (T13-T15) 202 8 25
Senior Management (T16-T17) 4 1 4
Executive Management (T18-T19) 88 5 18
Top Management (T20-T22) 40 1 40
TOTAL 4724 260 18
PAGE
104
The following table summarise payments made to employees as a result of leave that was not taken.
LEAVE PAY-OUTS
Reason Total Amount
(R000)
Number of
Employees
Average per
employee
Leave payout for 2011/12 due to non-utilisation
of leave for the previous cycle
58 219 1 58219
Capped leave payouts on termination of
service for 2012/13
0 0 0
Current leave payout on termination of service
for 2012/13
293 724 43 6831
Total 351 943 44 7999
STEPS TAKEN TO REDUCE THE RISK OF OCCUPATIONAL EXPOSURE
Units/categories of employees identified to be at high risk of
contracting HIV & related diseases (if any)
Key steps taken to reduce the risk
Employees (x4) that are placed in the Wellness Unit and work directly
with clients that require pricking at times which could result in blood
spillage.
Disposal Gloves are used for safety reasons when dealing with
clients.
Medical waste is removed according to the NEMA Act National
Environmental Management Act.
Sharps are disposed in approved sharp containers
Sharps containers are accessible for immediate sharps disposal
Recapping of needles is not allowed
Disinfectant is used to disinfect blood spills according to National
Department of Health strength recommendations
HIV/AIDS &
Health Promotion
Programmes
PAGE
105
DETAILS OF HEALTH PROMOTION AND HIV/AIDS PROGRAMMES (tick the applicable boxes and provide the required information)
Question Yes No Details, if yes
1. Has the department designated a member of the
SMS to implement the provisions contained in Part
VI E of Chapter 1 of the Public Service Regulations,
2001? If so, provide her/his name and position.
Yes N Tumana, Wellness Manager
2. Does the department have a dedicated unit or
has it designated specific staff members to promote
the health and well- being of your employees? If so,
indicate the number of employees who are involved
in this task and the annual budget that is available for
this purpose.
Yes
4 staff members Budget R631000
(2013-2014 Financial year)
3. Has the department introduced an Employee
Assistance or Health Promotion Programme for your
employees? If so, indicate the key elements/services
of this Programme.
Yes
Alcohol and substance abuse program
Dealing with personal stress and work stress
(Team building and Stress Management)
Basic Financial Management skills
Family matters
4. Has the department established (a) committee(s)
as contemplated in Part VI
E.5 (e) of Chapter 1 of the Public Service Regulations,
2001? If so, please provide the names of the
members of the committee and the stakeholder(s)
that they represent.
Yes
The Integrated Employee Wellness Policy in its draft form
outlines who members of the committee should be ie
Board member, H.O.D. Middle Management,Peer Educators
and Wellness Functionaries
5. Has the department reviewed its employment
policies and practices to ensure that these do not
unfairly discriminate against employees on the
basis of their HIV status? If so, list the employment
policies/practices so reviewed.
Yes
HIV and Aids policy being reviewed 2013
Integrated Employee Wellness Policy still in its draft form
(Final Draft )
6. Has the department introduced measures to
protect HIV-positive employees or those perceived to
be HIV- positive from discrimination? If so, list the key
elements of these measures.
Yes
Capacity building
(Awareness campaigns, Therapeutic supportive workplace
Voluntarism coupled with openness and Transparency
Equality
Accessibility
Confidentiality
Sensitivity
7. Does the department encourage its employees to
undergo Voluntary Counseling and Testing? If so, list
the results that you have you achieved.
Yes
The Wellness Assistants underwent training to perform HRT
(HIV Rapid test)
Mayibuye is in partnership with Bonitas Medical Aid that
performs voluntary testing and counselling yearly
42 employees had been tested over the year and 6 employees
were found to be positive
8. Has the department developed measures/
indicators to monitor & evaluate the impact of its
health promotion programme? If so, list these
measures/indicators.
Yes
Quarterly reporting reviews through
Interdepartmental Forums
Client Experiences
Management Visits
Departmental visits by the office of the C.E.O.
Communication Surveys
Awareness Campaigns attendance
PAGE
106
The following table summarises the outcome of disciplinary hearings conducted within the department
for the year under review.
MISCONDUCT AND DISCIPLINARY HEARINGS FINALISED
Outcomes of disciplinary hearings Number % of total
Correctional counselling 0 0
Verbal warning 2 4
Written warning 6 14
Final written warning 10 22
Suspended without pay 5 12
Fine 1 2
Demotion 1 2
Dismissal 20 44
Not guilty 0 0
Case withdrawn 0 0
Total 45 100
TYPES OF MISCONDUCT ADDRESSED AT DISCIPLINARY HEARINGS
Type of misconduct Number % of total
Theft & fraud 7 16
Insubordination & negligence 19 42
Under the influence of alcohol 4 9
Dishonesty 4 9
Un authorised absence 5 11
Other 6 13
Total 45 100
GRIEVANCES LOGGED
Number % of Total
Number of grievances resolved 1 100
Number of grievances not resolved 0 0
Total number of grievances lodged 1 100
DISPUTES LOGGED
Number % of Total
Number of disputes upheld 1 25
Number of disputes dismissed 3 75
Total number of disputes lodged 4 100
LABOUR
RELATIONS
PAGE
107
STRIKE ACTIONS
Number % of Total
Total number of persons working days lost 0 0
Total costs working days lost 0 0
Amount (R000) recovered as a result of no work
no pay
0 0
PRECAUTIONARY SUSPENSIONS
Number of people suspended 0
Number of people whos suspension exceeded 30 days 0
Average number of days suspended 0
Cost (R000) of suspension 0
This section highlights the eforts of the entity with regard to skills development.
TRAINING NEEDS IDENTIFIED
Occupational
Category Gender
Number of
employees as
at 1 April 2012
Training needs identified at start of the
reporting period
Learnerships
Skills
Programmes
& other short
courses
Other
forms of training
Total
Legislators, senior officials and
managers
Female 5 0 1 0 1
Male 10 0 2 0 2
Professionals Female 3 0 1 0 1
Male 0 0 0 0 0
Technicians and associate
professionals
Female 2 0 1 0 1
Male 2 0 1 0 1
Clerks Female 12 0 16 0 16
Male 7 0 6 0 6
Service and sales workers Female 12 0 3 0 3
Male 24 0 19 0 19
Skilled agriculture and fishery
workers
Female 0 0 0 0 0
Male 0 0 0 0 0
Craft and related trades workers Female 1 0 0 0 0
Male 34 0 13 0 13
Plant and machine operators
and assemblers
Female 5 0 2 0 2
Male 54 0 38 0 38
Elementary occupations Female 2 0 1 0 1
Male 39 0 17 0 17
Sub Total Female 42 0 25 0 25
Male 170 0 96 0 96
Total 212 0 121 0 121
SKILLS
DEVELOPMENT
PAGE
108
TRAINING PROVIDED FOR THE PERIOD
Occupational
Category Gender
Number of
employees as at
1 April 2012
Training provided within the reporting period
Learnerships
Skills
Programmes
& other short
courses
Other
forms of training
Total
Legislators, senior officials and
managers
Female 5 0 3 0 3
Male 10 0 1 0 1
Professionals Female 3 0 2 0 2
Male 0 0 0 0 0
Technicians and associate
professionals
Female 2 0 2 0 2
Male 2 0 2 2 4
Clerks Female 12 2 30 0 32
Male 7 1 8 0 9
Service and sales workers Female 12 0 5 0 5
Male 24 0 35 0 35
Skilled agriculture and fishery
workers
Female 0 0 0 0 0
Male 0 0 0 0 0
Craft and related trades workers Female 1 0 0 0 0
Male 34 0 16 0 16
Plant and machine operators
and assemblers
Female 5 0 6 0 6
Male 54 0 78 0 78
Elementary occupations Female 2 0 1 0 1
Male 39 0 21 0 21
Sub Total Female 42 2 49 0 51
Male 120 1 161 2 164
TOTAL 212 3 210 2 215
The following tables provide basic information on injury on duty.
INJURY ON DUTY
Nature of injury on duty Number % of total
Required basic medical attention only 15 100
Temporary Total Disablement 0 0
Permanent Disablement 0 0
Fatal 0 0
Total 15 100
INJURY ON
DUTY
PAGE
109
REPORT ON CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS
Project Title Total Number of consultants
that worked on project
Duration
Work days
Contract value in
Rand
Job Evaluation 1 3 24710
TOTAL 24710
ANALYSIS OF CONSULTANT APPOINTMENTS Using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs)
Project Title Percentage ownership by
HDI groups
Percentage management
by HDI groups
Number of Consultants
from HDI groups that work on
the project
Job Evaluation 0 0 0
TOTAL 0 0 0
UTILISATION OF
CONSULTANTS
PAGE
110
CORPORATE HEADQUARTERS
Corner of Drummond and Mdantsane Access Road
Reeston, East London
Postal Address
P.O. Box 19596, Tecoma
5214, East London
Province of the Eastern Cape
Phone 043.745.2582, Fax 043.745.2586
www.mayibuyetransport.co.za
MAYIBUYE
TRANSPORT
CORPORATION
Annual Report
2012/13
ARLINE COETZEE
Senior Manager: Strategic Planning and Corporate Performance
Email: spcp@mtcec.co.za
CHARON CRONJE
Board Secretary and Personal Assistant to the CEO
Email: ceopa@mtcec.co.za
To obtain additional information and/or copies of this document, please contact:
DISCLAIMER
The following document is made only to, and is directed only at, persons to
whomsuch a document may lawfully be communicated (relevant persons).
Any person who is not a relevant person should not act or rely on this document
or any of its contents.
This document contains forward-looking statements that are subject to risks
and uncertainties, including statements about Mayibuye Transport Corporations
beliefs and expectations.
These forward-looking statements are based on assumptions that Mayibuye
Transport Corporation has made in light of its experience in the industry in which
it operates, as well as its perceptions of historical trends, current conditions,
expected future developments and other factors which Mayibuye Transport
Corporation believes are appropriate under the circumstances. Relevant
persons should understand that these statements are not guarantees of future
performance or results.
Due to these factors, Mayibuye Transport Corporation cautions that relevant
persons should not place undue reliance on any forward-looking statements.
Further, any forward-looking statement speaks only as of the date on which it is
made. New risks and uncertainties arise fromtime-to time, and it is impossible
to predict these events or how they may afect Mayibuye Transport Corporation.