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MINERALS AND ENERGY PORTFOLIO COMMITTEE
3 May 2001
BUDGET BRIEFING BY THE DME MINISTRY
Chairperson: Mr D Nkosi
DME Presentation 1
DME Presentation 2
DME Performance Management System design
Draft Portfolio Committee programme for May/June 2001 (see Appendix)
The Chief Director, Management Services made a presentation followed by the Chief Financial Officer. The first presentation focused on restructuring and the establishment structure and emphasised the Performance Management Development System. This latter programme was implemented by the Department on the 1st April 2001. The second presentation focused on budget allocation and the achievements of the department in the past year.
The Chairperson told the committee that the Gas Bill would be presented before the committee on the 9th of May. Mr Nkosi added that the State Law Advisor has accepted the Bill and the committee must now process the bill and that deliberations and submissions from various stakeholders would be accepted until the end of June 2001.
Mr Blanche (FA) asked whether it would be possible to allocate time to visit the mine dumps in the East Rand.
Mr Nkosi replied that the MEC from the relevant department in Gauteng is addressing the problem and has requested a report from the Director-General on the East Rand issue that will be forwarded to the committee once available.
Mr Oliphant (ANC) asked whether the stakeholders briefing would take the form of public hearings or not.
Mr Nkosi (ANC) said stakeholders would consider whether the Bill as certified by the State Law Advisor accommodates the points which stakeholders have previously raised. Mr Nkosi commented that stakeholders should be invited to comment further on the Bill and suggested that the committee consider further invitations for stakeholders who have not yet commented on the bill.
Presentation by the Chief Director of Management Services
This presentation focused on four key areas. Achievements for the year 2000-2001, restructuring of the DME organisation and establishment structure, development & implementation of the Performance Management Design Systems (PDMS) and the integration of the Lebowa Minerals Trust (LMT).
Achievements for the year 2000-2001
The implementation of the Job Evaluation Policy, Employment Equity Plan, HIV/AIDS and related diseases' policy and the sexual harassment policy. The Human Resource Development Policy included an employee assistance programme and the performance management and development system.
Restructuring of the DME Organisation and Establishment Structure
Labat Africa was appointed to assist the Department of Minerals and Energy with the development and piloting of the Performance Management and Development System (PMDS). Mr Mnguni added that Labat Africa has found it necessary to reconsider their strategic plan since discovering increased departmental responsibilities as a result of new government priorities. As a result of this, Mr Mnguni stated that the scope of Labat Africa had been extended to include the development of the overhead structure of the department. A more detailed document on PDMS was distributed to the committee.
Mr Mnguni stated that the revised structure has been submitted to the Minister of Public Service and Administration and the National Treasury since more funding has been requested to implement the proposed structure. Mr Mnguni added that in total the creation of 269 posts from directorship to the lowest level had been recommended.
Performance Management and Development System
Mr Mnguni confirmed that PMDS commenced operation as of 1 April 2001. Furthermore, Mr Mnguni said all senior managers had signed their performance agreements that correspond to their respective work plans. In addition, Mr Mnguni stated that training sessions have been conducted in all regional offices. Mr Mnguni concluded by saying that since PMDS has only been implemented from the 1st April 2001, a report on PMDS would only be presented next year.
Integration of the Lebowa Minerals Trust (LMT)
Mr Mnguni confirmed the establishment of an integration plan for LMT. A due diligence report (incorporating financial and legal aspects) has been finalised and will soon be delivered to the principals. New applications for mining and prospecting permits received by LMT are being processed in consultation with the Northern Province Regional Office. Mr Mnguni stated that Management Services still needed requisition with respects to removable assets.
Mr Mnguni commented that Management Services has made offers to 15 people who were permanently employed by LMT and added that those employed on a contract basis have asked the department to place them - the department is looking for vacancies in order to provide suitable offers. Mr Mnguni informed the committee that two senior employees, the Chief Executive Officer and Manager (Human Resource and Finance) have opted for dissolution packages, however this fell outside of the scope of the department and would be finalised by the LMT board.
Presentation by the Chief Financial Officer
The Chief Financial Officer, Ms N Pityana, informed the committee that all programme managers have presented their programs and achievements to the committee. The purpose of Ms Pityana's presentation was to provide an overview of the funds that have been allocated to the department and to highlight trends in the last five years.
Ms Pityana stressed that the committee was governed by the Performance Management Agreement (PMA) and that training programs familiarised managers with PMA. Ms Pityana added that the department was the first to close its books for the past financial year.
Ms Pityana stated three main branches govern the department - health and safety in mining operation, the facilitation of mining and utilisation of mineral resources and the developing of energy resources.
For more details on the DME budget please refer to the attached document.
Mr Nel (NNP) made two enquiries. Firstly, what was meant by 'moveable assets' ( with regards to LMT) and secondly, what portion of the R600 million electrification programme was due to the state.
The Director-General responded that the value of LMT assets remained uncertain and hence the department was still considering the issue to establish a measure of the assets. The second question appeared unanswered.
Prof. Mohamed (ANC) commented that he thought the national electrification programme has been removed from within ESKOM's mandate, but that according to reports this was not the case.
The DG replied that government's responsibility is to ensure that energy is generated within the country and added that although the programme had not been taken away from ESKOM, since ESKOM is a parastatal the government had to make interventions where necessary.
Prof. Mohamed then questioned what capacity the department was developing in order to implement the national electrification programme.
Minister Ms Mlambo-Ngcuka responded that the energy sector in the department is making efforts to recruit more engineers in attempts to enable South Africa to generate its own energy as opposed to importing energy as is currently the position.
Mr Nash (ANC) asked how many of the 269 posts that have been created, were for mining inspectors and how many mining inspectors have been trained.
Mr Motaung replied that mining inspectors are being trained in different institutions in the country and that a portion have recently completed their diplomas.
Mr Nash asked whether there were any inspectors to monitor the processing of paraffin.
The Minister responded that energy efficiency is a community issue and hence the community must ensure that efficient energy is provided. The Minister added that the department is recruiting students to work as interns in the rural areas where paraffin is used and that these students would be trained to assist rural people in using different sources of energy.
Mr Bell (DP) asked whether tender procedures where properly followed (to ensure transparency) when granting the contract to Labat Africa.
The DG assured Mr Bell that all tender procedures were taken into account and that everything was done to ensure transparency.
Mr Blanche (DP) asked how the department was managing rehabilitation of the mines and the risk of environmental degradation.
An official from the department replied that it was not the responsibility of the department to rehabilitate mines but that this was the responsibility of the mine owners.
Mr Nkosi concluded by emphasising the co-ordination of the department at cabinet level in order to deal with all the relevant issues.
The meeting was adjourned.
DRAFT PORTFOLIO COMMITTEE ON MINERALS AND ENERGY PROGRAMME
MAY - JUNE 2001
Thursday, 3 May 15:00 Ministry on DME Budget
Tuesday, 8 May MINERALS & ENERGY BUDGET VOTE
Wednesday, 9 May 09:00 Follow up meeting with DME on Gas Bill
11:00 National Electricity Regulator / Eskom
Wednesday, 16 May 11:00 NNR / NECSA
ECONOMICS CLUSTER QUESTIONS
Wednesday, 23 May 09:00 Stakeholder Briefings - Gas Bill
11:00 Council for Geoscience / Mintek
Wednesday, 30 May 09:00 Stakeholder Briefings - Gas Bill
11:00 CEF Group
Wednesday, 6 June 09:00 Stakeholder Briefings - Gas Bill
11:00 South African Diamond Board
Thursday - Saturday Proposed visit to Mozambique Gas Fields
7 - 9 June to be hosted by Sasol
Wednesday, 13 June 10:00 Gas Bill Deliberations
ECONOMICS CLUSTER QUESTIONS
Wednesday, 20 June 10:00 Gas Bill Deliberations
Wednesday, 27 June 10:00 Gas Bill Deliberations
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