International Cooperation, Trade and Security Cluster Media Briefing

The International Cooperation, Trade and Security Cluster, chaired by Minister, Dr Siyabonga Cwele held a media briefing on the implementation of government’s programme of action following the State of the Nation Address (SONA) 2016. The briefing outlined the progress that had been made by the government through this Cluster and provided more details of the plans that had been announced by the President during the SONA. Minister of the Environmental Affairs and Minister Edna Mlewa, Minister Mahlobo also assisted answering some of the related questions.

Questions and Answer

Journalist: I just want to know from the Minister of Telecommunication and Postal Services whether you are still sticking to your position that Telkom will become the lead agent in the role out of broadband in South Africa and how far is that process now. Secondly, is there any truth to the report that Telkom is going to merged with Broadband Infraco (BBI) because nothing is functional with the latter organisation? What is the status of BBI at this stage?

Journalist: I heard you talking about the economy on how good you are doing in terms of tourism and everything but I have not heard you speaking about how much money is stolen out of the country. Also to Minister David Mahlobo, I know that there is Cyber Bill is still in the consultation stages. How far is it? I would also like to know how much has been stolen from cybercrime.

Journalist: Minister Mahlobo, you would have heard the comments last week by the Secretary General of the ANC that the US government is involved in activities pushing towards regime change in South Africa, is the South African government aware of these activities by the US government - that there is an attempt to push for regime change?

Minister Cwele: Let me just say this is a Cluster briefing on International Cooperation, Trade and Security Cluster, so the focus is not on the domestic economy. I’m not saying this because we share the same name (with the journalist) but I will not answer your question at this moment but at an appropriate time. Minister Mahlobo will answer some questions and the colleagues here. We have very good relations with the countries of the developed North and our trade is improving and they are investing. I think we heard of the report of how positive other countries are about South Africa and in the statement given, we have also shown you how much we are getting from traditional partners as EU and North America. Americans are investing in South Africa, we are trading with them. The Oxford report is slightly different to the way we perceive ourselves sometimes as South Africans, they are very positive. There is another report done by the tourism sector and industry which talks about how the world sees us and the first thing they think about us is sport, our pristine landscaping and beautiful, they love us. They think our people are skilful and they serve them very well, South Africans will emphasise the negative things. This is how the world sees or perceives us. I just thought I should just give that background that we are trading and investing with some of these countries even in our renewable energy, maybe Minister Molewa will give and amplify on this. Those are American companies, those are the companies from the North and those are some companies from our Brazi Russia India China and South Africa (BRICS) partners. This is where the focus of the Cluster is, to attract investment. We said during this harsh economic down turn, we are expecting that we will attract foreign direct investment of R45 billion for the year beginning April and end of March this year. Just up to December last where we have attracted more than R64 billion in investment pipeline, this is how the world really sees us, they are not upbeat up about us, they have long view, and they do not have a short term view. I thought I should just highlight those points and allow my colleagues to give some details in the answers and I will come back to the first journalist’s question.

Minister Mahlobo: With respect to the issue of illicit financial outflows, you will remember that the African Union (AU) commissioned our former President Mbeki to look at this particular matter with other individuals in the continent. The report was presented in the African Union summit held in Addis Abba where we looked at this issue then that as an African Continent, we are indeed bleeding, we are bleeding and we are losing a lot of money that could actually be utilised for Africa’s development and prosperity. At the time when the report was presented it was estimated that we are losing close $50billion p.a. This is an amount bigger than all the investments, donations received from various aid organisations. Then we agree on number of set interventions that we needed to tighten up issues of legislation in various countries, so that we can be able to combat this illicit of outflow of money, we also needed to tighten up the issues of corporation around law enforcement agencies but also to be able to corporate with other countries in the world so that they don’t become tax heaven where certain people go and put their money in those countries where the report indicate. Coming back home, we know that these issues help in various front where you have certain companies not declaring certain of their profit or assets, they cushion them and understate the impact of what we are supposed to get as a revenue as a state. This is done so that we can be able to discharge our mandate as agree with the people of the Republic, we will not be able to do that. But there has been a lot of work that have done, we have improved our economic intelligence as a law enforcement agency, there have been certain biggest bust in various port of entries, if you look at the OR Thambo International Airport, a lot of money have been caught there, late last year the incident which took place at the Limpopo border gate.

Minister Mahlobo: We have intelligence prosecutorial driven operation and these individuals are been brought to book, we have also tightened up the question of FICA regulation so we can still do more. That does not necessary mean that the situation is under control, we can still do more. That is why the introduction of Cybercrime Bill and other related matters which driven by us and this has gone to the Cabinet and it has been approved, and is now in the parliamentary process. We are trying to deal most issues, they want figures around cybercrime, and there are usually no figures around cybercrime because companies do not release the figures even if they are hit because they are trying to hide it. The strategy is to invest more around education and awareness because people become victim to cybercrime because of ignorance, for example of people on the net winning a competition you have not entered or input personal information. One of thing we trying to do is to improve our capability as a state, the early warning centre that was launched by Minister Cwele, working with the Council for Scientific and Industrial Research (CSIR) to have home grown solution so that at least we are able to detect some of the thing that happen in this space. We are also investing in research and development; we want to develop our own South African product because of the particular issues that are there. They are certain issues that we have made them serious crime, if some of the issues are not tackled, especially the flow of money in through cybercrime space, some of the money can be used to funds some activities such as terrorist activities. If you don’t have a monitoring mechanism, your country can be used as a launch pad or breathing ground to do some of those things. Generally, I think we have our ducks in a row but we have to indicate that it is our responsibility all of us as South African to deal with particular issue and the state will do what it could do.

The last question about the US government, you should be in the position to note that relationships between South Africa and US remains very strong, very cordial, like Minister Cwele was saying we have just concluded difficult negotiation and because of our mutual respect between the two countries the matters around African Growth and Opportunity Act (AGOA) was resolved. There are numbers of front we are contributing on issues of education, health and others. With the question of regime change, it is something that happening around the world; we have seen it through the Arab spring, Syria and many countries. There are those particular agencies in the world that are doing those. South Africa is no exception and we are always a live to see is there activities of foreign intelligence service that undermine our democratic body. If there those particular instance we will act very hardly. In terms of the statement by the SG of our movement, you will better that there is a programme called Young African Leadership Initiative (YALI) a very important programme but when the African leaders meet in the US part of the US-Africa summit concerns has been raised regarding this programme. As much as this programme is important, this programme must work hand-in-hand with African governments other than the way the USA chooses to interact with citizens directly. But, what is important is that our South African position we will interact with them in terms of the mutual respect and agreement we have, if there matter of concern and we think it should be raised, will be raised it, like the YALI which is on record saying that it be done in a better way without the relationship between countries.

Minister Molewa: Most questions have been answered but just a small addition, confirming first that we have indeed a very solid relationship with the US, as demonstrated through the programmes that I have already been indicated. However, as for what took place at the ANC march, I am responding in my capacity as the chair and convenor of the International Relation Sub- committee, and what we are looking forward to do is to have an engagement with the US Embassy itself, especially  given  the manner in which the response come from the other side. If I was a member of the diplomat in the US and a statement like that is made, what will I do? I will certainly get in the car and go to a Luthuli house of US and have a discussion and because unfortunately that didn’t happen, we are going to that in our capacity as the ANC (leadership), from the government point of view we cannot say anything beyond what we have already said because the relationship is good, we are working together. However, the meeting to clarify matters will take place at the right time.

Minister Cwele: From the government point of view, our relation is strong and we are working together. In reference to the question that was asked by the first journalist 1: I would like to engage with you outside. Yes, Telkom is the lead agency and it was declared last year the progress is quite extensive.  What is outstanding is that you heard President Zuma in the SONA where money has been allocated R750 million for the next 3 years to implement phase 1 and Telkom will take a little part in it. All we are finalising is the issue of contracts. Ours is to extract the biggest value for money so that South Africans are able to benefit for lower cost of delivering this service. The Broadband Infraco (BBI), yes, I am aware that there are talks between BBI and other State-Owned Entities (SOEs) in relation to integrate. Last year, we announced that we are rationalising some of these Telco’s in line with the 2012 Presidential Review Commission (PRC) recommendation that we should, where possible match things, merge those that are dysfunctional or create new enterprises. We can engage outside and I am not running away from your questions. This is an important question but it is not in relation to this.

Journalist: Follow up from previous question, looking into the current debate where the government is looking at privatising, what is your opinion as Telkom Minister on whether would be offering a stake as previously for sale. Are you in favour of that? Is this a good move or Telkom will have a hand on policy. Minister Mahlobo would please give update on Islamic State of Syria (ISIS) the girl that was blocked. Where are we regarding to that investigation? Are we at the stage where we can definitely say that there is not ISIL operating in South Africa? Also in relation to the dead body find that was found in the plane carrying South African Reserve Bank (SARB) cash to Zimbabwe, have you been approached by the Zimbabwean authority. What is happening on that?

Journalist: Following from the comment that South Africa is no exception to the current conflict in Middle East, would please provide clarity that South Africa is no exception to regime change.

Journalist:   I do not think minister Mahlobo answered my question, you told me in terms of $50billion in terms of Africa. I want to know regarding South Africa. Minister Cwele, this thing about Post Bank, when are we going to have a full flagship bank as this has been coming on for a long time?

Journalist: Regarding regime change, I got a sense that maybe there is regime change, maybe not, is there a regime change?

Minister Linas: The plane carrying South African currency on behalf of the SARB has been released by the Zimbabweans and at this point the investigation will be undertaken to find out how the body got on the plane and it was obvious that this person boarded the place before it reached Zimbabwe so that investigation will have to take place in jurisdictions as well.

Minister Mahlobo: With respect to ISIS, we concluded the investigation regarding the young person, remember the individual never committed any act of terrorism in terms of our legislation. The person was attempting and you know when you are attempting, and you are in a process of committing the crime. Our statement has always been clear of the time is that South Africa will always remains relatively stable but there is no country in the world that is immune from terrorist activities. That is why we are cooperating whether with the UN Security Council or AU Security Council- Through these councils information are shared information regarding individual or groups. We are working around the clock in putting systems and strategies because you do not want South Africa to become the breathing ground where people are in a position to plan, but we can be in a position where a particular problem happens during a particular time. We will be able to respond as a country.  Our foreign policy as South Africa has been our cornerstone to deal with such issues in the world.  With the question of regime change, I do not know what is your understanding about regime change is. Regime change is about activities where you are trying to change government through unconstitutional means. In South Africa, we are not an exception. We are not immune to it, it has happened in various countries and it takes different forms. It can be done by an individual but people can say there is a democratic dispensation. There is a Constitution where you will have in terms of security assessment, where you will have prominent individuals, you can use the media, you can use the NGOs, there are various mechanism that can undermine a constitutionally order in place. In South Africa, we are always on an alert and we have not made statement that there is regime change in the country but there are certain activities from a security assessment that you will always keep an eye on them, whether they seek to undermine our constitutional democracy or what is our assessment. Remember that intelligence is evidence based, will not wake and say you are doing regime change without making proper, assessment that is our answer.

We have not released a statement saying that the US government is pursuing regime change against South Africa. Our relationship remains sound, remains cordial but we know in the world where we work, that there is always temptation by foreign intelligence services, it happens all the time, where they are pushing their agenda for national interest they seek to subvert certain process in certain countries. South Africa will not be naïve not to be on the alert to deal with those issues if any seeks to undermine this government. We will follow you whether you are an individual whether you are a group or a state and we will not allow South Africa to become a ground for attempt for regime change. We will be able to defend our own state and sovereignty as a country and more importantly to secure our own people. With the figures, I do not have it here with me, Mr Brian my spokesperson, will able to give you because remember we are not dealing with domestic issues rather international cooperation.

Minister Cwele: Our task is to attract investment and minimise the unnecessary outflow. What does this Paris agreement means to ordinary South African?

Minister Molewa:  In the nutshell, this agreement means if all the parties of the world act as if this is legally bounding agreement all of us throughout the world as countries to reduce our carbon emission, we will then be able to insure as result this kind of heat that we are experience and other global warming effect will be reverse. This will help the farmers in terms of food security.  We all must act and this start with each and every individual in South Africa. Everyone has a carbon footprint such as how many you fly, offsetting of light in the homes and saving electricity as an individual. Collectively as a country there are certain action that have been determined. We have what is called the Intent National Determine Contribution, in other words we have set aside and have agreed that these measures will be implemented and this will allow us to contribute to the world carbon reduction programme. These programmes are around the energy sector, transport sector, land sector, building environment and water sector. There are certain sectors we have selected and set aside in South Africa. Those must be use to the industrialisation itself and we must greening our production and must be apply collectively as South African so that when we report next time, we are able to say that we have reduce our carbon emission.

Minister Cwele: The specific questions, Post Bank as you know from the 15 January 2016, we have appointed Mr Marc Barnes as a CEO of South African Post Office (SAPO). Under his leadership, we have completed all section 12 requirements of the SARB. We are now waiting for the response. We have complied with requirements and we hope that the SARB will the answer by the end of this month. If we are giving the permission to form of company, then we are going to comply with section 13 of the SARB Act. SAPO is ready, should they be granted the permission, so there is a state of readiness. With Telkom, as we know Telkom is partly owned by the state and partly owned on behalf of you. Other owners are the public entities and the public sectors, so it is already privatised so anyone who wants to buy or acquire more shares can do so by going to the JSE. Do we want to dilute the state stake? There has not been such decision and I want to mention that our interest in Telkom is more on the infrastructure provision side than the service side. Our focus as a government is trying to bring this infrastructure to every corner in South Africa.

We have not taken the decision to dilute our stake and Telkom is one of the state own company which is doing very well. It is a listed company and in the last financial year it has brought just over half a billion rand in dividend. It is a well around company and meeting their target. In conclusion, we are proud for the work we are doing to stabilise the continent. The work our defence force is doing, we have brought down piracy in the Mozambique Channel. They were coming to our water and most of our traded goods are through the ocean. The role the President will play in Burundi is very critical. Tourism, if all South Africans can have the same view as the rest of the world has on us. We are a good country for tourism and we are promoting domestic tourism and there is a lot of revenue, we sometimes bashing each other. The message we are bringing during the economy is facing global economic down turn. The only sector we experiencing less investment is the mining sector, the rest of the sectors, people are investing and they are having confidence and investing. We have to continue work on this base and speak positively about our country so that we can attract more and more investment so that we can deal with key challenges that we are facing such as unemployment, poverty and inequality.

The briefing was adjourned.