Committee Programme

Meeting report

Chairperson’s opening remarks

The Chairperson welcomed all Members to the virtual meeting, and said that during this difficult period of the Covid-19 pandemic which South Africans were facing, the Portfolio Committee would still adhere to the level one lockdown regulations. It was entering the fourth quarter as attempts were being made to revive the economy, and if all South Africans could come together and assist society by implementing all the relevant policies, and monitor the Department of Small Business Development (DSBD) correctly and respect Chapter Nine institutions as public representatives, the country could overcome this pandemic.

She expressed happiness at the way in which the Committee was currently operating. During the fourth term, it would analyse the performance of the DSBD to check all the recommendations of the Auditor- General (AG), and would listen to the call of the President to act against corruption and to hold executives accountable for any wrong doing. She extended condolences to the families of colleagues who had died because of the pandemic.

Fourth term Committee programme

Mr King Kunene, Committee Secretary, said the agenda for the meeting would be to deal with the fourth term programme and the minutes of the second and third term. On 14 October 2020, the agenda would be on the briefing by the Small Enterprise Development Agency (SEDA) on its district development ecosystem model. On 21 October 2020, the Development Finance Association would brief the Committee on challenges working in working with enterprises and its response to the Covid-19 pandemic.

The next part of the programme would deal with market access opportunities during and after the Covid-19 pandemic period. On 4 November 2020, the Committee would consider the 2020/21 audit performance reports of the Department, and also the action plan of the AG’s findings and recommendations. On 11 November 2020, it would review the budget and recommendation reports, and would be briefed by the Department of Public Service and Administration (DPSA) on the strategic plan and structures of the Department. On the same day, the AG would be requested to brief the Committee on the outcomes of the forensic investigations the AG had conducted.

If the Committee had completed its annual performance report by 11 November 2020, it could consider and adopt its budget and recommendation reports by 25 November 2020. This was the proposed programme of the Committee for the fourth term.

Mr Sibusiso Gumede, Content Advisor, emphasised that the budgetary review and recommendations report (BRRR) would be dealt with differently, using quarterly reports.

Discussion

Mr F Jacobs (ANC) supported the programme, as it dealt with the issues the Committee had to cover and increased the accountability for expenditure and performance. He suggested an addition to the programme -- that the Committee look at the Gauteng Township Economic Development Bill. He recommended that it request the Gauteng officials to make a submission on the Bill and its implications, and that the Committee should also look at exploring a similar Bill.

The Chairperson requested that Members be given time to process the information on the documents in order for them to participate, especially where it involved the budget review and recommendation reports. She supported Mr Jacobs on the addition of the Gauteng Township Economic Development Bill, because the Bill sought to address critical issues which cut across all parts of the country.

Ms K Tlhomelang (ANC) moved the adoption of the programme, and the addition to the programme requested by Mr Jacobs.

Mr E Myeni (ANC) seconded the motion to adopt the programme.

The Chairperson announced that the programme was adopted, with the addition to the programme requested by Mr Jacobs.

Committee minutes

Minutes dated 28 April 2020

Mr Kunene said the minutes covered the briefing on the progress and implementation update of the Covid-19 response by the Department. It was a joint meeting between the Portfolio Committee and the Select Committee. Members had accepted the presentations, and after the deliberations, the Committee had requested the Department to continuously brief it regarding progress in dispensing Covid-19 relief measures to small, medium, and micro enterprises (SMMEs). It had also requested the Small Enterprise Finance Agency (SEFA) to present the Committee with a breakdown of its application and approval process when assisting enterprises.

Mr Jacobs said that the minutes covered what had happened at the meeting, and moved their adoption.

Mr H April (ANC) seconded.

The minutes of 28 April 2020 were considered and adopted.

Minutes dated 13 May 2020

Mr Kunene said this was also a joint meeting between the Portfolio Committee and Select Committee, where the Department provided a briefing on Vote 36, and advised that there had been appropriation which needed to be included in the amended budget of the vote.

Mr April said the minutes of the meeting were a true reflection, and moved their adoption.

Mr Jacobs seconded.

The minutes of 13 May 2020 were considered and adopted.

Minutes dated 21 May 2020

The minutes covered the briefing by the Small Enterprise Finance Agency (SEFA) on the 2020/25 strategic plans and the 2020/21 annual performance and budget report. The outcome of the deliberations was that what had been discussed would be included in the budget report.

Mr April moved the adoption of the minutes.

Mr M Hendricks (Al Jama-ah) seconded.

The minutes of 21 May 2020 were considered and adopted.

Minutes dated 29 May 2020

This had been a meeting to consider and adopt the 2020 budget report for the DSBD. The Committee had adopted the report, although the EFF Members had voted against it.

Mr Hendricks moved the adoption of the minutes.

Mr April seconded.

The minutes of 21 May 2020 were considered and adopted.

Minutes dated 3 June 2020

This had been another joint meeting between the Portfolio Committee and Select Committee, at which DSBD had described the support provided by two of its entities – the Small Enterprise Finance Agency (SEFA) and Small Enterprise Development Agency (SEDA) -- to small businesses struggling to survive in the wake of Covid-19’s impact on the economy. The Committee wanted a follow up meeting with both SEDA and SEFA to clear up issues related to the qualification to the SMMEs’ debt relief fund, and for updates on support for spaza shops and the provincial allocation of graduates.

Mr April moved the adoption of the minutes.

Mr Myeni seconded.

The minutes of 3 June 2020 were considered and adopted.

Minutes dated 5 June2020

The Committee was briefed by SEDA on its 2020/25 Strategic Plan, and the 2020/21 annual performance and budget. Concerns were raised on the geographic footprint of SEDA. It was noted by the Committee that some municipalities by law made it difficult for informal traders. SEDA sought to help existing enterprises after the Covid-19 pandemic. The Committee suggested that SEDA should make use of political constituency offices.

Mr Hendricks moved the adoption of the minutes.

Mr Jacobs seconded.

The minutes of 5 June 2020 were considered and adopted.

Minutes dated 17 June2020

The Committee was briefed by the DSBD on its 2019/20 fourth quarter performance report, and adopted it.

Mr Myeni moved the adoption of the minutes.

Ms Tlhomelang seconded.

The minutes of 17 June 2020 were considered and adopted.

Minutes dated 24 June 2020

The meeting considered the 2019/20 fourth quarter performance reports of SEDA and SEFA. A summary of SEDA’s performance report showed that out of 32 strategic indicators, it had achieved 28 (87.5%). SEFA’s report indicated their financial perspective and internal business processes. The Committee had again raised concerns on the footprint of SEDA, which was limited in rural areas, and had highlighted issues around the implementation of the plan to help existing SMMEs from 2014 and the strategic plan regarding implementing the district based ecosystem model, and concern over vacancy rates. The Committee had raised issues around the plans of SEFA to help small enterprises after the Covid-19 pandemic, and the role of SEFA in the Treasury guarantee scheme. It had been resolved that SEDA should brief the Committee on the progress made with clients assisted since 2014, the strategic plan for the response to the pandemic, the issues surrounding its footprint, and its plan for online training and marketing. SEDA also had to brief the Committee on the district-based ecosystem. The Committee had expressed concerns on the planning of SEFA to help small enterprises and its micro finance model. The DSBD should brief the Committee on any developments on a new agency.

Ms Tlhomelang said these minutes were a true reflection of what took place at the meeting, and moved their adoption.

Mr Myeni seconded.

The minutes of 24 June 2020 were considered and adopted.

Minutes dated 15 June 2020

This was a joint meeting between the Portfolio and Select Committees. The briefing had been on the adjustment of the budgets of the DSBD, SEDA and SEFA. The presentation by the Department had focused on the medium term strategic framework (MTSF). There were amendments to programme one on administration; to programme two on sector policy and research; to programme three on integrated cooperative development; and to programme four on enterprise development and entrepreneurship. The Committees had deliberated and adopted the budget vote.

Mr Jacobs moved the adoption of the minutes.

Mr Hendricks seconded.

The minutes of 15 July 2020 were considered and adopted.

Minutes dated 16 July 2020

The meeting dealt with the consideration and adoption of amendments to the 2020 budget vote.  There had been a presentation by Mr Gumede on the adjustment budget report.

Ms B Mathulelwa (EFF) moved the adoption of the minutes.

Mr Hendricks seconded.

The minutes of 16 July 2020 were considered and adopted.

Minutes dated 19 August 2020

The Cooperative Banks Development Agency (CBDA) and the Congress of South African Trade Unions (COSATU) briefed the Committee. COSATU had explained its plans for small business enterprises during and after the Covid-19 crisis. The presentation of the CBDA had outlined its mandates, functions, sector overviews, services offered and innovative solutions implemented during the lockdown period. COSATU had outlined problems with the government’s R200 billion relief scheme for small business enterprises. The Committee had raised concerns around the CBDA’s functions and cooperatives’ training and marketing.

Mr April moved the adoption of the minutes. 

Mr Jacobs seconded.

The minutes of 19 August 2020 were considered and adopted.

Minutes dated 26 August 2020

National Treasury (NT) and the Banking Association of South Africa (BASA) had briefed the Committee on the Covid-19 loan guarantee scheme, and there was a briefing by business partners regarding a progress report which looked at the response to the Covid-19 pandemic. This had been followed by a briefing by the Small Enterprise Foundation (SEF).

Regarding the NT’s briefing, the Committee had raised concerns about the number of businesses assisted. It had also questioned the use of the credit profile by BASA. There were concerns about the business partners’ target markets, their assistance to businesses in the rural areas and businesses owned by women and youth, implementation of the transformation agenda, and equity financing. The concerns regarding SEF were mainly on its location.

It had been resolved that NT should accelerate its assistance to small enterprises. There had to be a further engagement between the Committee, NT and BASA in a joint session with other financial portfolio committees.

Mr April moved the adoption of the minutes. 

Ms Tlhomelang seconded.

The minutes of 26 August 2020 were considered and adopted.

Minutes dated 2 September 2020

This meeting saw the DSBD, SEDA and SEFA presenting their 2020/21 first quarter performance reports, which included their financial reports, governance and compliance and Covid-19 responses.

Ms Mathulelwa moved the adoption of the minutes.

Ms Tlhomelang seconded.

The minutes of 2 September 2020 were considered and adopted.

The meeting was adjourned