Independent Development Trust & National Electricity Regulator: briefing

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Trade, Industry and Competition

16 September 1998
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Meeting Summary

A summary of this committee meeting is not yet available.

Meeting report


16 September 1998


Documents handed out:

IDT Status Report (see Appendix)


This was a continuation of a presentation that was given by the Independent Development Trust (IDT) and the National Electricity Regulator (NER). NER was presenting for the first time and as many items are still outstanding e.g. documents, clarity on certain questions, there will be a further meeting with them.


Independent Development Trust

IDT was the first to present with its chairperson, Mr Funde, introducing his colleagues, Lulu Ngwagwa (Deputy Director General), Seal Rosenberg from the Communication Department of IDT, Asmal Dangor (Acting Chief Executive officer) as well as the Provincial Director in the Western Cape office.

The presentation took the form of a status report on the Independent Development Trust (see document).

Few questions were asked by committee members:

What does infrastructure entail?

It entails building of clinics, schools, roads etc.

Are these programs meant also to create jobs?

These programs must be understood with in the context of creating both social upliftment and job opportunities for particularly poorest of the poor and rural people.

Housing seem to be left out, is it left out by mistake or deliberately?

One will recall that IDT has been involved in housing schemes in the past years. We have decided to hand over that project to the Housing Board with its residuals.

How do you get known in rural areas?

Communication is one of our weakness particularly in rural areas, that is to be addressed very soon.

National Electricity Regulator

Their delegates were : Terrence Naidoo, Lehlonono, Teboho Moremi.

Topic: Electricity and the RDP

The presentation covered the following outline:

Role and the mandate

Effective and efficient ESI

Vision of the ESI

Balance of supply and demand

Universal access

Intensified electrification programme

Economic environment overview

Progress in structural reform

Trade and diversification of exports

Fiscus and price and financial stability

External liquidity

Underperforming areas by SA

Decline in foreign direct investment

Key constraints are due to lack of skills and fragmented pricing

Some of the risks that are associated with other forms of energy.

Air pollution and health

Increased incidences in childhood respiratory disease .

House fires and burns

Use of candle and paraffin lamp as lights

Use of paraffin heaters

Boiling water

Statistics shows that 53% of schools are not electrified.

There was not enough time to ask questions because of time constraints and the absence of a briefing document made it difficult as well. The language used in their presentation was such that the chairperson cautioned the delegates to come down to the level of a layperson.

The delegation was asked to provide the documents for the next meeting (not yet scheduled) when more questions will be asked.

Appendix: IDT Status Report



16 September 1998


· Founded in 1990 with a R2 billion grant

· Imperative to disburse funds to poor communities as quickly as possible

· Set own priorities with minimal reference to government

· By March 1998 R2.6 billion disbursed to over 800 projects

· Cumulatively, funds grew by R1.7 billion through investments

· 9 Provincial offices and Head Office in Cape Town

· Country-wide staff complement of 300+


Arose out of the need for the country as whole to:

· Co-ordinate development resources for maximum impact

· Reduce overlapping bureaucracies among development organisations

· NDA commission report recommends creation of new funding institution.

· Agreement between government and IDT trustees on new institutional form.


· IDT to remain an Independent Trust

· Will function within government's broad development policy framework

· Reports to cabinet through the Ministry of Public Works.

· Enhanced accountability - to Parliament through Finance Ministry under Public Entities Act, co-ordinates with government line ministries through Public Works ministry.

· Board appointed from list of public nominees by a selection committee established by the President, Chairperson appointed by the Board in consultation with the President.

· Chief Executive no longer a voting trustee.


· Clearly define the IDT's community development enabling support role.

· Agree with government and other stakeholders on co-operation in appropriate areas

· Ensure programmes are relevant to the revised mission and the country's needs

· Agree with government on the nature of partnerships with various arms of government

· Put in place a cost-effective structure

· Revamp financial management and monitoring systems to comply with Public Entities Act requirements, due diligence report commissioned by the Deputy President's office and Auditor General recommendations

· Ensure financial sustainability through, inter alia, continued prudent investments and minimised spending in projects

· Retain core human capacity and skills base.


· New board appointed, Chairperson elected (see attached)

· New Chief Executive appointed, starts 1 November 1998 (see attached)

· Policy review, revised mission, definition of core function complete by beginning of October 1998 (draft attached, still to be approved by the full Board of the IDT)

· Human resources policy under review, skills audit to commence in November 1998.

· Alignment of programmes will begin as soon as the new core business has been approved by the Board and completed by end December 1998.

· Review of financial systems underway, complete by end October 1998, critical areas as identified by Auditor General already to.


Some of these programmes will be managed out and some realigned in terms of the proposed core business.

Current committed but unpaid funds: R 389, 481, 000

· Education

Whole school development +-R50m

· Infrastructure Unit

Clinic building, school building, community employment programme - +-R100m

· Economic Development

Housing +- R127m (and +RI2m in expected rescindments)

Consolidation programme +- R6m

Economic development +- R60m

· Rural Services

Rural energy programme R31.6m

Biomass R5.15m

Environment R0.46m

Water and sanitation R8m

Geographical information systems

· Land and Agriculture

Balance of +-R2m


The IDT has a sound resource base, human and financial. These will be deployed in an effective manner to meet the challenges of the new millennium. In the face of growing poverty and unemployment, the IDT will work with government and other actors in the development field to ensure that maximum impact is achieved, that bureaucracies do not proliferate and that resources reach those who most need development assistance.

This will be ensured by a thorough assessment of all the organisation's human and financial resources and its programmes. Most of this will have been completed by the end of 1998.


Sonwabo Edwin Funde (55) : Chairperson

Best known to us as the charismatic Director of the Facilitation Portfolio. Eddie's role as an ANC activist and organiser led to his exile to Russia where he gained as MSc in Electrical Engineering at the Leningrad Polytechnical Institute in what is now known as St. Petersburg. While in exile he established the ANC's scholarship secretariat which led to the placement and training of young exiles as well as heading the ANC's Australasian and Pacific mission. On his return to South Africa in 1992 he worked in the ANC's civil service unit. Together with Walter Sisulu he established the South African Research and Development Trust (SARDET) to facilitate the implementation of the RDP. In 1995 he joined the IDT's then Community Co-ordination and Facilitation Portfolio. Eddie has completed several courses of study both locally and abroad in public administration and policy management.

Boitumelo Gerald Mokgoro (33)

Currently Chief Executive Officer of the Northern Cape Development Trust based in Kimberley and is a Director of the Mphatlhatsane Development Agency, also based in the Northern Cape. Boitumelo read for his B. Com from Wits University and B. Compt (honours) at Unisa. He also has a post graduate diploma in Strategic Management from the Graduate School of Urban Policy in New York and has completed part of the qualifying exams for the Institute of Chartered Accountants of South Africa. He has held several posts in business, including that of Articled Clerk for Deloitte and Touche, Financial Manager and Manager of the Community Business Unit for Vodacom and a position as a Comorate Finance Analyst for Merrill Lynch in New York. He has served on several policy development bodies including the Northern Cape RDP and Fiscal and Financial Commissions.

Mninamwe (Pepe) SiIinga (33)

Professional Engineer registered with the Engineering Council of South Africa. He received his BSc in Civil Engineering Council of South Africa. He received his BSc in Civil Engineering from Natal University and has earned several postgraduate diplomas in Engineering, Project Management, Industrial Relations and Construction from various local tertiary institutions. Pepi is currently completing an MBA from Herriot Watt University in Scotland and his MSc in Engineering at Wits. He is currently based in Umtata where he is the overall co-ordinator for the Eastern Cape Presidential Project Team - a post he was seconded to while working for African Consulting Engineering in Gauteng. He has written several articles and presented public lectures on the presidential projects. Pepi is also the Deputy Chairperson of the Inter-Ministerial Task Team on Construction Industry Development and a Chairperson of the Eastern Cape Development Agency.

Lionel Ronald Louw (48)

An ordained Minister in the African Methodist Episcopal Church and a registered Social Worker and is a Senior Lecturer at UCT's school of Social Work. He has published widely in both local and international journals on a range of subjects including social work, development, community participation and reconciliation. Lionel holds a M SocSc from UCT, and M Div from Payne Theological Seminary in Ohio and is currently registered for his Ph.D. at UCT on the implications of Social Reconstruction in post-apartheid South Africa for the training of social workers. He has sat on several university, church and community boards and was a member of the National White Paper Committee on Welfare.

Johan Moolman

Chartered Accountant who holds a B Com degree from Unisa and an MBA from Stellenbosch University. After completing his articles in Grahamstown he held several positions in business before becoming the Chief Executive Officer of Boland Bank, finally becoming Vice Chairman of the Federale Group until his retirement in 1990. He has held several Directorships and Memberships of Boards, including the IDT. He is also currently a member of the special income tax court.

Patrick Naylor (53)

Consulting Engineer for his company, Naylor, Naylor and Van Schalkwyk. He is a registered Professional Engineer and fellow of the South African Institute of Civil Engineers and holds a B.Sc. in Civil Engineering. He is also a registered Chartered Engineer and a member of the Institution of Structural Engineers, London. He has held directorial posts of Newcho, First National Bank and is long time member of the IDT's Board of Trustees, Trustee of Molteno Brothers Trust, and the TNDT. His Civil Engineering work involves the design and supervision of buildings, bridges, township services and sports complexes. He is also a Civil Engineering Consultant to UWC.

Mlamuli Delani Kuthula Mthembu

Managing Director of Kohlerlink, a business development division of Kohler Packaging, which is located in Gauteng. Delani is a former teacher who taught in KaNgwane, where he was also Youth Affairs Chief Organiser for the Youth and Development Programme for the former KaNgwane government. He holds a BA(honours) in Human Resource Development from RAU and is currently registered with Newport University, California for an MBA focusing on HR strategies and affirmative action for improving quality production. Delani was also the Director of the South African Council of Churches' development and training programme where he represented the SACC at international donor meetings. He is a board member of several institutions including Eco-Link (White River), the Interface Community Development Association, the Community Institution Building Programme and Management of School Training Programme run by Wits and Keep South Africa Beautiful. He has published several papers and presented public lectures on sustainable development issues both locally and abroad.

Andrew Jacob Hendricks (48)

Received his BA LLB from Rhodes University and was admitted as an advocate of the Supreme Courts of South Africa and Ciskei. He left the legal world to join Mercedes Benz of South Africa, where he held several positions in industrial relations and human resources. He was then seconded to the Border Kei Development Forum as director. After serving as a private consultant to attorneys and Mercedes Benz he was appointed as the Economic Development Co-ordinator for the Transkei presidential task team. He is now the Chairman and Managing Director of the Vuna Fishing Company, Director of Pakama Investments and Director of ASBF Marketing, all of which are based in the Eastern Cape. He has held executive positions in both the ANC and UDF, and was until recently, a member of the executive of the combined Eastern Cape ANC.

Michael Ridley (70): (Retires October 1998)

Qualified as a Chartered Accountant after which he joined the LTA group of companies, finally being made Group Managing Director of LTA. He was managing director of the Urban Foundation's housing division before joining the IDT in 1991 on a part-time basis. For the past four years Michael has served as both a Trustee and the chairman of the audit and finance committee and the remuneration committee. He relinquished these roles when he stepped in to act as chief executive officer for a short period at the beginning of this year. He is also Chairman of ABSA's Property Development Company and a member of their group audit committee.

Andre Ia Grange (Retires October 1998)

Holds a Master of Commerce degree from Pretoria University. After qualifying he held auditing posts in the construction and clothing industries. He has also been an Economics Lecturer and Researcher after which he joined the South African Reserve Bank to help establish the Development Bank of Southern Africa and to manage South African debt negotiations. He served in various positions in the Development Bank (policy, research, finance) and was appointed as Chief Executive in 1991. He has also served as South Africa's Alternate Governor to the World Bank Group and is a member of the national executive of the Consultative Business Movement. He is currently a Divisional Director of Nedcor Investment Bank (merging UAL, Syfrets and NIB). He joined the IDT's board of trustees in 1993.

Sbongile Nene

Joined the IDT's board of trustees in 1994. She is the Associate Director of the University of Pretoria's school of Agriculture and Rural Development as well as being the Director of the National Women's Resource and Service Centre which is based in Gauteng. Sbongile holds an MA in sociology from the University of Zululand and has attended a number of foreign institutions as a visiting researcher, student and lecturer. She has co-authored a book on black women and the rural informal sector. She has been a member of an impressive range of organisations and is currently a member of the board of directors for Women and Development Banking SA and the board of trustees for community-based projects at Wits University.

Prof. Hoosen Mohammed Coovadia

Professor and Head of Department of Natal University's Department of Pediatrics. Jerry holds several medical qualifications from both local and international institutions and has received awards to study immunology, one of his areas of specialisation. Aside from being a trustee for the IDT and the TNDT, he sits on a vast number of university and medical committees and has contributed over a hundred articles to books and journals. He has conducted original research into kidney diseases, malnutrition and immunity, immunodeficiency and childhood diseases. Somehow he has also found the time to teach and supervise postgraduate students.

Doris Sikhosana (55)

Is the director of the University of Natal's Community Internship Programme (CIP), a position she has held since 1992. The CIP was initiated in 1991 to strengthen the understanding of community needs and increase opportunities for the development of students and the university as well as increasing community access to the University's resources. Doris is also a member of the secretariat of Isolentuthuko, a KwaZulu-Natal community based organisation network, a regional trustee of South African Breweries KwaZulu-Natal, a board member of the World University Services South African branch and a member of the KwaZulu-Natal Provincial Leadership Forum. She is a member of two Southern African Development Community (SADC) organisations: ZERO, an environmental NGO working within the entire southern African region which is based in Zimbabwe and the Zambian branch of the Panos Institute, which has its head office in London. She has a particular interest development affecting women, and has sat on the boards of many local women's development organsations.

Aanon Michael Rosholt

Mike Rosholt qualified as an accountant in 1945 after spending almost four years in Italy and Germany as a prisoner of the second world war. He held various accounting positions after his return and was made executive chairman of Barlow Rand in 1979. Mike has collected numerous accolades over the years for his business acumen - 1984 he was named the Harvard Business School Club's "business statesman of the year He is currently the non-executive chairman of a number of listed companies, including Standard Bank, Old Mutual and South African Breweries. He is also a council member of the South African Foundation and a patron of the Free Market Foundation. He has also been a director of the Urban Foundation, and remains a director of the Home Loan Guarantee Company which was formed by the Foundation He also served as a chancellor of Wits University and is currently chairman of the College (of Medicine) Foundation.


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