2. THE BOARD OF DIRECTORS: cont.

Report
MEETING OF THE MINISTER AND DEPUTY MINISTER OF HUMAN
SETTLEMENTS WITH THE COMMUNITY SCHEMES OMBUD
SERVICES BOARD OF DIRECTORS
2 JULY 2014 AT 14H00
CSOS PRESENTATION
1. INTRODUCTION:
The Community Schemes Ombud Services Act (Act No 9 OF 2011)
[CSOS ACT] was promulgated on the 11 June 2011 and provides
for the establishment of the Community Schemes Ombud Services
(CSOS) as a Public Entity. The CSOS has been classified as a
Schedule 3A Public Entity in terms of the Public Finance
Management Act (Act No 1 of 1999) [PFMA].
2
The mandate and main functions of
the CSOS include:
(i)
To develop and provide a dispute resolution service in terms of the Act.
(ii)
Provide training for Conciliators, Adjudicators and other Employees of the
Service.
(iii)
Regulate, Monitor and control the quality of all Sectional Title Schemes
governance documentation and such other scheme governance
documentation as may be determined by the Minister
(iv)
Take custody of, preserve and provide access electronically or by other
means to Sectional Title Schemes governance documentation and such
other Scheme governance documents as may be determined by the
Minister.
(v)
Manage the Sectional Titles Management Act as provided by the relevant
Act.
3
2. THE BOARD OF DIRECTORS:
2.1
The Board of Directors was appointed for a period of 3 years from 1
January 2013 until 31 December 2015.
2.2
The Board Comprise the following seven (7) Members:
•
•
•
•
•
•
•
Rev Dr Vukile Mehana (Chairperson)
Adv. Milicent Malebye (Deputy Chairperson) (Resigned)
Adv. Derick Block
Adv. Nomazotsho Memani
Mr. Trevor Bailey
Mr. Mfanozelwe Shozi
Ms. Tinyiko Mhlari
4
2. THE BOARD OF DIRECTORS: cont.
2.3
BOARD SUB-COMMITTEES:
The following Board Sub-Committees have been appointed:
•
•
•
•
Audit and Risk Committee:
Human Resource and Remco:
Adjudication and Governance:
Compliance, Levies & Regulations:
Ms. T. Mhlari – Chairperson
Mr. M. Shozi – Chairperson
Chairperson
Adv N. Memani – Chairperson
2.4
Board meetings held in the 2013 Financial Year were 3 plus 1 Strategic
session that dealt with the 2013/2014 APP and Budget.
2.5
Board members have been kept updated on the unfolding relevant
development.
5
2. THE BOARD OF DIRECTORS: cont.
2.6 Latest update was on 14 April 2014
2.7 INDUCTION AND MEETINGS:
•
The Board was inducted on the 22nd March 2013.
•
During this induction, the Board was presented with a
number of proposed documents that include the
following:
o
o
o
5 Year Strategic Plan.
An Annual Performance Plan.
A number of proposed operational Policies.
NB: The above stated Plans have been revised.
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2. THE BOARD OF DIRECTORS: cont.
2.8
o
The 2013/14 APP was approved by the previous Minister on 31
January 2014 and it has since expired. A new 2014/15 APP is
ready to be approved by the Minister
o
Also a new 5 Year Strategic Plan needs to be approved by the
Minister
RE-CLASSIFICATION OF THE NEW CSOS ENTITY:
•
One of the resolutions of the CSOS Board was to approach the
National Treasury for the re-classification of the CSOS within the
context of the National Tresuary Regulations.
•
Such an exercise, was to revisit the status of the CSOS and improve
the scale of Board Remuneration.
•
The National Treasury responded in December 2013 with the Scale
of Board Fees, which are still very low compared to the level of
competency and experience of the Board Members. The Minister is
hereby requested to approach the Minister of Finance for a review
of the Board Fees.
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3. FINANCIAL POSITION OF CSOS:
3.1
It should be noted that there was no CSOS budget for 2013/14,
however, an amount of R20 million was approved for CSOS in August
2013.
3.2
While the proposed Annual Performance Plan given to the Board by
the Department referred to an amount of R64 million for the 2013/2014
Financial Year, the Board was informed by the Department that for
some reason, the work of the CSOS was not budgeted for the
2013/2014 Financial year.
3.3
A subsequent meeting was held wherein a resolution was taken that:
On 29 July 2013 an amount of R3 million was to be
immediately made available to be used for some immediate set-up
and administration costs of the CSOS and for putting in motion the
recruitment of the CEO / Chief Ombud Officer and the Chief Financial.
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3. FINANCIAL POSITION OF CSOS: cont.
3.4
Through a competitive bidding process, CSOS has now established its
own primary Bank Account, which was opened in August 2013, with First
National Bank and activated on the 31st March 2014 the day when some
moeny was transferred by the Department to CSOS.
3.5
This amount of R17 million was deposited into the account on 31 March
2014 which was allocated for the 2013/14 Financial Year with R3 million
retained by the DHS. Condonation is being sought through the DHS to
utilise the R17 million for operational purposes in the 2014/15 Financial
Year.
3.6
For 2014/15 Financial Year, CSOS is informed by the DHS that an amount
of R40 million has been budgeted for CSOS operations. This being the
case, an amount of R57 million is provided for in the 2014/15 APP.
3.7
Mention is also made that the Unaudited Annual Financial Statement
2013/14 has been submitted timeously to the Office of the AuditorGeneral, National Treasury and Department of Human Settlements.
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4. OFFICE ACCOMMODATION:
4.1
For operational purposes, and noting that such operations will evolve
incrementally, the Board has signed a 1 year renewable lease
agreement with the Estate Agency Affairs Board. Currently a
partitioning of this 561sqm office space is to be completed by end July
2014.
4.2
With funds permitting, in the new Financial Year it is intended that this
matter will be re-visited for purposes of having a permanent Office
Accommodation for both the National and Gauteng Provincial Offices.
10
5. STAFF MATTERS:
5.1
The CFO has already been appointed from 1 April 2014.
5.2
The appointment of CEO/Chief Ombud is at the final stage.
5.3
Soon thereafter, the other two Executives namely:
o
o
5.4
Corporate Services Executive
Adjudicator General will be appointed speedily.
Other 22 administrative staff will be appointed during the 2014/15
Financial Year.
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6. URGENT MATTERS TO BE ATTENDED TO:
6.1
The signing of the 2014/15 APP and 5 Year Strategic Plan by the Minister.
6.2
The finalization of the Regulations to effect the CSOS Act.
6.3
The Presidential Proclamation of the CSOS
6.4
The Public Launch of the CSOS
6.5
The Minister to engage with the Minister of the Department of Rural
Development and Land Affairs for the transfer of the Title Deeds.
6.6
On recommendation by the Board, the Minister to determine the annual
levies to be paid by Community Schemes.
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7. BOARD AND OTHER MEETINGS:
Date
Name of a Meeting
Attendees
22 March 2013
Induction meeting
03 April 2013
Board Meeting
Adv Memani, Ms Mhlari, Rev Dr Mehana, Adv Block,
Mr Shozi
Adv Memani, Ms Mhlari, Rev Dr Mehana, Adv Block,
Adv Malebye, Mr Trevor Bailey, Mr Shozi
24 May 2013
Board Meeting
Adv Memani, Ms Mhlari, Rev Dr Mehana, Adv Block,
Mr Trevor Bailey, Mr Shozi
05 July 2013
Tender meeting with the Banks
Adv Memani, Adv Block, Ms Mhlari
23 July 2013
Workshop with the recommended bank
Ms Mhlari
26 August 2013
Workshop on Annual Performance Plan (APP) and
Strategic Plan 2013/2014
Adv Memani, Ms Mhlari, Rev Dr Mehana, Adv Block,
Mr Trevor Bailey, Mr Shozi
13 September 2013
Workshop on Operational Policies
Adv Memani, Ms Mhlari, Rev Dr Mehana, Adv Block,
Mr Trevor Bailey, Mr Shozi
19-20 September 2013
Attending NAMA Conference
Adv Memani
09 October 2013
Meeting to discuss levies
Adv Memani and Rev Dr Mehana
14 November 2013
Portfolio Committee Meeting
Adv Memani and Ms Mhlari
05 February 2014
Board meeting
Adv Memani, Ms Mhlari, Rev Dr Mehana, Adv Block,
Mr Trevor Bailey, Mr Shozi
11 February 2014
CSOS Public Launch Meeting
Ms Mhlari
18 February 2014
CSOS Public Launch and Compliance & Enforcement
Symposium meeting
Adv Memani
25 February 2014
CSOS Public Launch Meeting
Ms Mhlari
25 February 2014
Compliance & Enforcement Symposium meeting
Advocate Memani
03 March 2014
Interviews for CFO
Rev Dr Mehana, Ms Mhlari, Mr Shozi and Adv Memani
24 April 2014
Interviews for Chief Ombud
Rev Dr Mehana, Ms Mhlari, Mr Shozi and Adv Memani
05 May 2014
Finalisation of Chief Ombud Interviews
Rev Dr Mehana, Ms Mhlari, Mr Shozi and Adv Memani
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