ESETA REPORT

1
ESETA REPORT TO THE PORTFOLIO
COMMITTEE ON LABOUR
17 OCTOBER 2005
2
Sector Profile

• Energy
• Generation of energy
• Generation of renewable energy
• Transmission of energy
• Distribution of purchased electric energy
• Manufacture of Gas, distribution of gaseous fuels
  through mains
• Project management, maintenance and operations of
  electrical generation, transmission and
  distribution plants, networks and systems
• Construction of pylons for electric transmission
  lines
• Electrical contracting
• Marketing of energy
• Industrial research for electrical energy

3
Sector Profile

• Water (from April 2005)
• Collection, purification and Distribution of
  Water
• Steam and hot water supply
• Public Water Enterprises
• Private Water companies
• Irrigation Boards
• Water and sanitation services

4
Sector Profile

• 2200 Employers (excludes Water)
• 50 contributes 90 of total income
• Eskom contributes gt70 of total levy
• Over 2000 electrical contractors
• 153 Water related companies contributing total
  levy of R13.5 pa (from April 2005)
• Energy employee compliment 53 000

5
Sector Profile

• Scarce Skills
• Engineers
• Electricians
• Project Management
• Information Technology
• Financial Management

6
SETA Profile
ESETA Organogram 2004/5
Staff compliment 19 1 Secondee (CIM)
7
NSDS 2001 2005 Achievements

• Indicator 1.1 No of Workers at NQF 1
• - Target 1063 Actual 971
• Indicator 1.2 No of workers on structured
  learning programmes
• - Target 7969 Actual 150 932
• Indicator 1.3 No of enterprises that achieved
  national standard of people development
• - Target 0 Actual 0

8
NSDS 2001 2005 Achievements

• Indicator 2.1 No of large enterprises that
  received skills development grants
• Target 15 Actual 19
• Indicator 2.2 No of medium enterprises that
  received skills development grants
• Target 12 Actual 19
• Indicator 2.3 No of learnerships available to
  workers in sector
• Target 20 Actual 28

9
NSDS 2001 2005 Achievements

• Indicator 3.1 No of small enterprises that
  received skills development support
• Target 700 Actual 488
• Indicator 5.1 No of unemployed young people
  that entered learnerships or apprenticeships
• Target 1000 Actual 1985
• Number of learners on learnership or
  apprenticeships that were placed in employment
• The sector absorbs all the apprentices into the
  system.
• The first learners in learnerships started in
  2001 and they have just moved to NQF Level 4

10
Annual Financials Audit Results

• SDL Income R55,922m
• Total Investment Income R5,526m
• Total revenue R64,645m
• Total expenses R52,832m
• Expenses as percent of SDL Income 81.7
• Net surplus / (deficit) R11,813m
• Total Cash Cash equivalents R90,276m

11
Annual Financials Audit Results

• Emphasis of Matter
• Administration Reserves
• Non compliance with Treasury Regulations
• No prior approval for opening of new bank account
  (sorted out with NT)
• Supply chain management framework not implemented
  awaits board approval November 2005
• Audit Committee no terms of reference new
  committee with independent chairperson November
  2005
• No risk management strategy in place redo late
  this year to include Water Chamber

12
Committed Funds and Projects continued

• Per AG R2.5 million for Learnership Grants
• Excludes grants for Annual Training Reports and
  balance of Workplace Skills Plans for 2004/5
  financial year - R45 million
• Excludes Leanership grants for all learners
  currently in the system.

13
Key Challenges for 2005 - 2006

• Inadequate 10 Administration
• Human Resources constraints (attracting right
  kind of skills)
• Hampers Implementation of Projects (inadequately
  structured)
• Provincial outreach constraint
• Inadequate Project Funds
• Support water and electrical qualifications
• Levy payroll limit increase to R500 000 (p.a.)
• Loss of contact with SMMEs
• Loss of income