National Youth Development Agency
Presentation to the The Portfolio Committee on Women, Youth,
Children and Person’s with Disabilities
Cape Town
11 August 2010
Presentation outline
• Letter of invitation
• Reporting to Portfolio Committee (For Minister Chabane)
• Co-ordination of NYDA activities with the Department of Performance Monitoring
and Evaluation ( For Minister Chabane)
• NYDA progress report- Current financial year
• NYDA progress report- 2009/10 (unaudited figures)
• NYDA approach to mainstreaming Youth Development
• NYDA loan recovery plan
• Vacancies within the NYDA
• Forensic Audit on former NYC
1
The Minister
Hon OC Chabane
Minister in the Presidency: Performance Monitoring and Evaluation
Cc: Mr A Lungisa: Chairperson of the NYDA
27 July 2010
Dear Hon Chabane
This letter serves to confirm that the Portfolio Committee on Women, Youth, Children and Persons with Disabilities will meet with the Minister and the National Youth
Development Agency to receive a briefing on the following matters:
•Clarification regarding the accountability of the National Youth Development Agency (NYDA) to Parliament, specifically the Portfolio Committee on Women,
Youth, Children and Persons with Disabilities.
•Clarify how the NYDA given its mandate and function co-ordinates its activities with that of the Department of Performance Monitoring and Evaluation and the
National Planning Commission with specific reference to mainstreaming youth development.
•Progress report on programmes offered by the NYDA along with the intended outcomes and outputs.
•An indication of how the NYDA intended to mainstream youth development within Government’s existing programmes given the Committee’s prior reservations
on this matter.
•Progress report on the loan recovery plan, the number of intended beneficiaries that had received loans and the money recuperated to date.
•Update on all vacancies and provincial offices.
•Finalisation of legal matters related to the National Youth Commission and the outcome of the Auditor General forensic reports.
The Committee would also like to receive briefing on progress report related to programmes of the National Youth Development Agency.
The meeting is scheduled to take place on Wednesday, 11 August 2010 at V475, Old Assembly, Parliament from 09:30 – 11:00 in Parliament.
For enquiries contact the Committee Secretary, Neliswa Nobatana at tel:(021) 403 3840, fax: (021) 0866607716,cell: 083 709 8472
email:nnobatana@parliament.gov.za
Thank you,
____________________________
Ms B Thompson
Chairperson: Portfolio Committee on Women, Youth, Children and People with Disabilities
2
QUESTION:
Clarification regarding the accountability of the National Youth Development Agency (NYDA) to Parliament, specifically the
Portfolio Committee on Women, Youth, Children and Persons with Disabilities.
The Presidency to respond
3
QUESTION:
Clarify how the NYDA given its mandate and function co-ordinates its activities with that of the Department of Performance
Monitoring and Evaluation and the National Planning Commission with specific reference to mainstreaming youth development.
The Presidency to respond
4
NYDA Progress report
• On the 16th of June the NYDA celebrated its first anniversary. This was marked by
an event in Thulamahashe stadium, BushBuck-Ridge, Mpumalanga. 25 000 youth
attended the event.
•During the period under review the NYDA also launched the Ride To School
campaign in Jozini ( Kwa-Zulu Natal). 100 bicycles were handed to female learners
who have to walk for more than 6km daily to and fro school.
•The project is in line with the rural strategy for South Africa, led by the National
Department of Transport
•Over 18 000 participants were trained by the NYDA in partnership with the LOC as
part of Africa’s 1st FIFA World Cup
•Volunteers played a part in various ways including, welcoming visitors at the
airport, showing spectators to their seats or escorting the VIP’s.
•Process of establishing NYDA provincial structures currently underway, interviews
held in 2 provinces, Northern Cape and Limpopo province
5
1.
KPA
1.
Progress report on programmes offered by the NYDA:
outcomes and outputs: Current financial year
Key Performance Indicator
ECONOMIC
PARTICIPATION
KPI Target
Q1
Number of jobs created through NYDA
Programmes
17,888
6,089
Number of new young entrepreneurs businesses
created
500
15
Number of young entrepreneurs provided with
Mentorship
6,000
361
Entrepreneurs issued with Business Consultancy
Vouchers
700
0
Value of loans issued to young entrepreneurs
11,000,000
R0
Number of loans issued to young entrepreneurs
8,150
1,940
Value of loans disbursed to young entrepreneurs
10,000,000
R6,046m
6
KPA
2.
EDUCATION AND SKILLS
DEVELOPMENT
3.
NATIONAL YOUTH SERVICE
4.
SOCIAL COHESION
5.
INFORMATION PROVISION &
COMMUNICATIONS
Key Performance Indicator
KPI Target
Q1
Number of young people enrolled in
Entrepreneurship Education programmes
30,150
464
Number of youths provided with job
preparedness training programmes
15,000
987
Number of young people provided with
Career Guidance
800,000
44,359
Number of youth enrolled in National Youth
Service
60,000
0
Number of volunteers recruited to contribute
to World Cup success through volunteer
efforts
15,000
Number of youth accessing information
through NYDA service delivery access points
800,000
148,422
Number of NYDA information dissemination
and access points in all municipalities (Full
service YAC’s and YAC Points)
134
91
18,888
7
KPA
Key Performance
Indicator
KPI (Targets)
Performance results
3 public hearings conducted
1 public hearing was conducted
by the Portfolio committee.
Attend 20 parliamentary portfolio
meetings
The Parliamentary Unit attended
3 Portfolio Committees: Basic
Education; Higher Education and
the Women, Youth, Children and
the Disabled.
Popularise the African
Youth Charter and
National Youth Policy
500,000 copies printed and
distributed
An estimated 1,500 copies of the
African youth charter and NYP
were distributed.
Lobby private sector
and public sector to
implement NYS
18 Government departments
1 government department was
lobbied during this period. The
Policy Unit made a presentation
on the NYP to the NYS
coordinating committee of the
Dept of Public Works.
7 private companies
No private companies were
lobbied.
10 municipalities
No municipalities were lobbied.
5 partnerships with civil structures
No partnerships were formed
with partnership and civil
structures.
8
KPA
Key Performance
Indicator
KPI (Targets)
Performance results
Mobilisation of young
people to participate in
democratic processes
Youth participating in IDP processes in
10 municipalities
No youth have been mobilised to
participate in the democratic
processes.
Finalise and launch the
Integrated Youth
Development Strategy
Workshops on IYDS held in 9
provinces
Developing the terms of
reference for execution of the
IYDS.
Approval of IYDS by cabinet
The IYDS will be approved once
the document has been
compiled.
5 new youth directorates
No new youth directorates were
formed during this period.
Youth councils established in 10
municipalities
The Lobby and Advocacy Unit
mobilised 3 municipalities: Moses
Kotane Municipality, West Rand
District Municipality and
Randfontein Municipality. Youth
Councils were established in all
the municipalities.
4 inter-departmental youth task team
meetings held
The 5th meeting of the IDC on
Youth Affairs was held at the
NYDA offices on 11th May.
Cont….
POLICY, LOBBY AND
ADVOCACY
Integrate and mainstream
youth development in the
public sector.
9
Key Performance
Indicator
KPA
7.
RESEARCH,
MONITORING AND
EVALUATION
Conduct status of youth
survey to inform youth
development
interventions, policy,
regulations and
strategies
KPI (Targets)
1 survey report
Performance results
A meeting of the technical
committee was convened wherein
they identified the themes that must
be included in the report, discussed
key questions that need answers,
and identified data sources, agreed
on the approach and methodology
for the survey. The institutions and
departments involved in the survey
are as follows: HSRC, Dept of Social
Development, MRC, Stats SA, and
Standard Bank.
10
KPA
Cont…
RESEARCH,
MONITORING
AND
EVALUATION
Key Performance
Indicator
KPI (Targets)
Performance results
Conduct impact
evaluation on the
National Youth Service
Programme
1 Evaluation Report
Old terms of reference still exist and need
to be renewed and consult different
stakeholders to assess and agree on the
extent, approach and timeframes.
Develop framework,
indicators, tools,
systems procedures
and guidelines for
monitoring youth
development
interventions within
NYDA, public sector
and private sector
Approved framework with
guidelines and a list of indicators
A draft M&E Framework is available and
being continually updated in line with
changes in the Customer Relationship
Management System. A list of youth
development indicators have been
developed and engaged Stats SA to find
ways of reporting on a regular basis. The
indicators must be assessed if they are
available within Stats SA and if not then it
will be assessed if such can be collected
as part of future surveys.
Produce and publish
Youth Enterprise
Journal
2 issues
Call for papers for publications for the 1st
issue has been made, awaiting
submission of papers.
11
KPA
8.
Key Performance Indicator
EFFECTIVE
AND
EFFICIENT
RESOURCE
MANAGEME
NT
Measure client satisfaction through
quarterly surveys
Minimised Portfolio at Risk (PAR) for SME
& Micro loans
KPI (Targets)
90% satisfaction survey
SME loans <10%
Micro finance <20%
Q1
Not conducted
37.5%
37%
12
Progress report on programmes offered by the NYDA along with the intended
outcomes and outputs.
Progress Report: 2009/2010(unaudited figures)
KPA
KPI
KPI Target
Actual Performance
Economic Participation
Jobs created
78,625
33,008
Entrepreneur-ship &
Enterprise
Development
Vouchers
5,500
4,220
Business Opportunities
Support Services
R100m worth of opportunities sourced
R 77.656m
20 BOSS transactions funded
17
Volunteers In Action
Mentorship Programme
2,000 women and youth supported through
mentorship (group)
1,354
12,450 enterprises accessing
enterprise finance loans
12,450
10,021
R54 million funding provided
for enterprises.
R26 million in loans provided through group and
individual micro-finance lending.
R28.8m
R28 million in loans provided for SME’s.
R24.6m
Education & Skills
Development
68,610 beneficiaries increase
their skill level
68,610
39,813
National Youth Service
20,000 beneficiaries involved
in community service
20,000
16,093
13
Conti…..
KPA
Efficient and
Effective Resource
Management
KPI
KPI Target
Actual Performance
100,000 Call Centre interactions
89,484
500,000 young people receive information through
Youth Advisory Centres
440,906
364 UYF information
dissemination points
33 YAC’s providing information and counseling.
121 YAC points providing information.
200 YAC kiosks providing information.
10 YAC mobiles providing information
134
Establishment and
Maintenance of office
network structure for
product deployment
121 YAC Points consolidated and Re-Engineered
121
8 Group lending sites
4
14
QUESTION:
An indication of how the NYDA intended to mainstream youth development within
Government’s existing programmes given the Committee’s prior reservations on this
matter.
 The NYDA Act and National Youth policy are both instructive on the NYDA’s role of
mainstreaming youth development. To further this intention, the NYDA has undertaken a
process to lobby all government departments to ensure that youth development issues
are taken into account during the planning and implementation of activities.
The NYDA has developed and submitted guidelines for the establishment of youth
directorates in government departments, whose role will be to ensure that youth
development activities are integrated into government department activities. The
guidelines have been submitted to Minister Baloyi and Minister Chabane.
The Development of the IYDS will further support and provide more guidance to
government departments and other role players in the youth development sector on
priority areas and sectors for effective youth development in the country
In additions, the NYDA continues to convene the Inter-Departmental Committee (IDC)
on youth development. Government departments have representatives on this structure
15
QUESTION:
Progress report on the loan recovery plan, number of beneficiaries that had
received loans and the money recuperated to date
For the part two years the loan book has been deteriorating and management has
identified key contributors to this deterioration and duly implemented measures to
address these contributors;
Key contributors amongst other factors:
 Poor administration of the loan book and after-care at the branch level;
 Target market the NYDA is operating in (mostly start up businesses are funded);
 Entitlement mentality of young people that this is Government money and
therefore no need to repay;
 Performance management of Enterprise Finance lending staff not directly linked to
performance of loan book;
 Market deterioration where NYDA clients operating making it difficult for them to
repay loans;
Business failure
Inadequate supervision and support at the branch level
Time lag in loan processing
The next table gives a high level analysis of the impairment provision for the last 3 to 4
years;
16
LOAN IMPAIRMENT ANALYSIS FOR PAST THREE(3) YEARS
Mar-06
Mar-07
Mar-08
Mar-09
Sep-09
Mar 10
Impairment net of
reversals and write offs
6,152
General Fund
1,195
8,499
19,432
37,964
76,325
1,508
Cooperatives
1,508
0
190
190
1,478
5,311
Micro Loans
680
5,220
15,613
17,728
21,087
Progress
Fund
1,735
1,408
2,549
5,651
6,491
Total
5,118
15,127
37,785
61,534
105,382
-62%
196%
150%
63%
71%
6%
9%
18%
30%
53%
405
13,376
% increase/(decrease)
year on year
% of impairment to the
loan book
17
LOAN IMPAIRMENT ANALYSIS FOR PAST THREE(3) YEARS (Continued)
Mar-06
Mar-07
Mar-08
Mar-09
Sep-09
Mar 10
Impairment expenses net
of reversals
2,324
General Fund
-516
7,566
10,938
18,639
38,361
1,508
Cooperatives
0
0
190
0
1,288
3,814
Micro Loans
-571
4,540
10,773
2,115
3,359
1,352
-56
1,141
3,102
840
265
12,050
23,042
23,856
43,848
-97%
4447%
91%
4%
84%
406
8,052
Progress Fund
Total
% increase/(decrease)
year on year
18
LOAN REPAYMENT AND WRITE OFFS ANALYSIS FOR PAST FIVE (5) YEARS
Mar-06
Mar-07
Mar-08
Mar-09
Sep-09
Mar 10
4,059
262
4
107
-
Cooperative
-
1,508
-
-
-
Micro Loans
4,442
-
380
-
-
22
271
-
-
-
8,523
2,041
384
107
-
19,920
35,989
40,368
23,962
20,551
356%
81%
12%
-41%
-14%
Loans write offs
General
Fund
Progress
Fund
Total
Loans repayments
4,367
Total
% increase/(decrease)
year on year
19
Loan recovery plan:
Micro Finance
Measures have been put in place to improve loan recovery processes, i.e.
 Credit policy - improved efficiency with a number of bottlenecks addressed through the policy. The
collection process is outlined below
1 Day Overdue
Client contacted telephonically
3 Days Overdue
Site Visit is conducted
7 Days Overdue
Reminder Letter signed by Branch Manager
14 Days Overdue
Letter of Demand
30 Days Overdue
Final Letter of Demand
45 Days Overdue
Handed to Debt Collectors
The engagement of an attorney to handle all loans above R30, 000. (the message sent out is that young
people must be responsible for their actions)
The engagement of debt collectors who are paid a commission based on collections
New tools have been introduced that emphasise closer monitoring
20
Conti…..
There are currently 2146 active clients of which 1,760 are delinquent.
No. of Clients
Delinquency days
74
current
38
– 31 – 60 days
43
– 61 – 90 days
45
– 91 – 120 days
1,560
>120 days
Number of debtors handed over to debt collectors and attorney
99
Attorney (all active loans)
194
Ulwazi Debt collectors (All written off)
130
Creditworx (all written off)
81
Collect-a-debt (14 active, 67 written off)
107
Bo-Mosotho Recovery Brokers (17 active, 90 written off)
611
Loans were handed over, 130 active loans.
21
Additional measures to be implemented
Appropriate staffing structure – adequate staff is required for aftercare, loan
officer support and supervision
Linking clients within the same value chain
 Linking the microfinance clients to potential opportunities through the internal
BOSS program
On the job training to be provided to field staff
An improved loan analysis process with a quick turnaround time
Arrangement with the relevant government departments for the cession of
payments for contract loans (NB in the past contract loans were the worst
performing where youth who had obtained loans absconded after pay-out)
22
Loan Recovery Plan:
SME
The following measures have been put in place to address the issue of delinquent loans:
1 - 3 Days in Arrears
Client contacted telephonically
15 Days in Arrears
Telephonic contact, arrange meeting or personal visit
31 Days in Arrears
First Letter of Demand
35 Days in Arrears
If client has missed second payment, client contacted
again
45 – 60 Days in Arrears
Second Letter of Demand (registered mail)
60 - 80 Days in Arrears
Telephonic contact, arrange meeting or personal visit
80 – 90 Days in Arrears
Final Letter of Demand or Section 129 Letter
105 days
Hand over for legal collection to appointed attorney’s
23
Cont……
Total handed over to attorneys
39
In legal Process
11
Judgements
16
Settlement Agreements
10
Liquidation
NYDA credit control
18
Settlement agreements with NYDA
5
Moratoriums
15
24
Recovery measures to be Implemented on the SME Book
Legal action through attorneys with a reputable experience in collections
The implementation of interventions through other products available at the NYDA
including BOSS, mentorship and vouchers
Reschedule the some loans to cater for smaller installments in line with the capacity of the
business
Close monitoring through frequent visit
Close monitoring of the collection agents
Clients whose businesses have failed completely will have their loans written off
Linking the clients to opportunities within the NYDA
25
Vacancies
Due to the restructuring of the organisation, NYDA has put on hold any recruitment of full time
employees until the process is completed.
To date, only the executive structure has been finalised and approved; and this will result in the
appointment of 27 employees either internally or externally. These positions are what can technically be
referred to as vacancies at this juncture
26
QUESTION:
Finalisation of legal matters related to the National Youth Commission and the outcome of
the Auditor General forensic reports.

The National Youth Commission Act, No 19 of 1996 was repealed on the 5th March 2010 and
subsequently the National Youth Commission (NYC) ceased to exist. As required by the NYDA Act,
particularly Section 21(2) the NYC assets, rights, obligations and liabilities have been transferred to the
NYDA effective 1 October 2009.
The statutory audit was conducted on NYC as of the 31st March 2010 and the audited accounts will be
included in the annual report of the NYDA. To date the opinion will likely be a qualification due to the fact
that the comparatives were disclaimed in the prior year.
27
QUESTION:
Outcome of auditor general forensic report
There has been no forensic audit performed on the former NYC by the Auditor General of South Africa
Given the concerns raised by the committee, the NYDA has commenced a process of conducting the
forensic audit on the former NYC.
This process will be completed by 30th September and will be reported to committee during our next
appearance
28
THANK YOU!!!!
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