Department of Sport and Recreation South Africa: hearings on 2007/08 Budget Vote and Strategic Plan
Sport, Arts and Culture
20 March 2007
Meeting Summary
A summary of this committee meeting is not yet available.
Meeting report
SPORT
AND RECREATION PORTFOLIO COMMITTEE
20 March 2007
SPORT AND RECREATION SOUTH AFRICA BUDGET & STRATEGIC PLAN 2007/08; BOXING
SOUTH AFRICA & SOUTH AFRICAN INSTITUTE FOR DRUG-FREE SPORT: BRIEFINGS
Chairperson: Mr B
Komphela (ANC)
Documents handed out:
Strategic Plan
presentation by the Sport and Recreation South Africa
South African Institute for Drug-Free Sport Strategic Plan: Part1 & Part2
Presentation on
Boxing South Africa Strategic Plan and Budget 2007 – 2010
Boxing South Africa
Strategic Plan and Budget 2007 – 2010
Sport and Recreation South Africa organogram
Audio Recording of the
Meeting
SUMMARY
The Department presented their strategic plan and budget. The Committee was
concerned with the inclusion of Lovelife in the budget plan, and reminded the
Department of the issues that they had with Lovelife. The Committee also
emphasised the importance of coordination regarding the 2010 World Cup, as well
as proper responsibility for the mass participation and school sport
programmes. Other issues raised were funding for facilities, unused facilities,
and management of school sport programmes that sees teachers sitting on the
sidelines.
Boxing SA announced that not only would they be able to provide their annual
report and financial statements on time this financial year, but their
developmental programmes had been successful. They did, however, have some money
problems, with Lotto and some sponsors not giving money, although the
provincial governments had been assisting where they could. They were without a
Chief Executive Officer and the Boxing Act prohibited them from hiring staff
independently, first requiring the Minister’s signature.
The South African Institute for Drug-Free Sport presentation was also well
received. It was currently without a CEO, and the process of appointing a new
CEO had been delayed. They wanted FIFA to use the Institute’s doping officers
for testing during the World Cup.
MINUTES
Sport and Recreation South Africa presentation
It was noted that the Director General of the Department of Sport and
Recreation (SRSA), Dr Joe Phaala, was unable to attend as he was sitting on the
panel concerned with the ICT of the 2010 World Cup.
Mr Greg Fredericks (SRSA Chief Director: Financial Policy and Liaison Support)
provided the briefing and pointed out that the Strategic Plan had not changed
that much for the past three years. The Department had remained close to the
core elements of the previous years' plans. He stressed that the Strategic Plan
was really a working document. They were in the process of reviewing the
document due to a few new appointments.
The Chairperson stated that the Strategic Plan framework was acceptable. The
fact that the elements had remained the same for the past three years did raise
some concern, but he appreciated the fact that Mr Fredericks had pointed this
out.
Mr Fredericks said that there were negative elements such as doping and the
ethics of winning and losing that cast a bad light on sport but the Department
was going to find way to combat these elements. In the country there was a
disparity between advantaged and disadvantaged. The Department vowed to renew attempts
to intensify their efforts among all South African to improve social cohesion,
which was one of the main priorities in the core social clusters. Their
objectives had not changed for a number of years. The Department would want to
increase the levels of participation of South Africans in sport and recreation
activities, raise the sports profile especially amongst decision makers in the
face of conflicting and competing priorities, maximise the probability of
success for South African individuals and teams in major sports and to place
sport at the forefront of efforts to address issues of national importance.
The funding for facilities had moved to local and provincial governments. There
was a concern about what the Department was doing for communities. They were
now working closely with provincial and local communities. There were
difficulties surrounding transformation, with some federations seen as
voluntary while others received funds. There was critique that the Minister had
been given no power to intervene. The Department hoped that the new bill would
help to achieve this objective. The Department had gone back to grassroots, and
if they did their work accordingly, transformation would follow. He went
through the presentation looking at the elements that drove the Department's
objectives.
Mr Daniel Moyo (Chief Operating Officer: 2010 World Cup Unit) then continued
with the plans regarding the strategic focus areas of the 2010 World Cup. The
Department had taken over all coordination of inter- and intra-governmental
relations to provide institutional support to 2010 FIFA World Cup. The unit
strove to ensure provision of infrastructure to support host cities to deliver
on their commitments contained in the Host Cities Agreement. They would also ensure
that the seventeen FIFA World Cup guarantees were put into actionable
programmes and would monitor progress on the state of readiness.
Discussion
Mr C Frolick (ANC) stated that the Committee and the Department had a very good
relationship but this should not allow SRSA to become complacent. The
Department should continue to push boundaries and remain resolute. He stated
that during the budget hearings, communities had raised the issue of the status
of amateur sport bodies, claiming that the SA Sports Confederation and Olympic
Committee (SASCOC) did not represent their interests and that they did not have
any recourse to SASCOC. The Department needed to ensure that there was a
vehicle to represent the masses. The
Building for Sport and Recreation Programme was pursuing avenues to correct
that situation. He wanted to know what the Department was going to do in order
to ensure that all voices were heard.
Mr Fredericks responded that the role of the amateur bodies had always been an
issue. SASCOC had not indicated that they would represent the smaller bodies,
however it had decided to put up a commission to address this issue. The Minister had stated that he had not been
happy with the handling of this issue. The Department's priorities had changed
to grassroot level. Funding was focussed on about eighteen federations at
grassroot level.
The Building for Sport Programme had said from the beginning that if it were
left to local authorities to decide on allocations for sport facilites, it
would not work. The Department had been allocating funds, even though it had
been competing with libraries and graveyards.
The question of sport being a unifier was a moot point. It had been seen how
success on the sports field could be a unifying factor, and could lead to
national euphoria. However, when the
people returned to their own areas, there was still a big divide. However SRSA
believed that by bringing people together in sport, it could only lead to
positive outcomes.
The Chairperson said that the Department should avoid making general statements
in their objectives but state exactly their input on skills development,
poverty eradication and job creation and the extent of their impact. He asked
if these measures would be temporary or permanent, and if temporary, for how
long?
Mr Fredericks stated that there were targets set for everyone across the board.
That number came from the government's social cluster.
The Chairperson enquired about what impact the Department was making on poverty
eradication. Job creation numbers were not very big.
Mr Fredericks replied that they had done an impact study of the mass
participation programmes. The report stated that of the people who received a
monthly stipend, 42% were breadwinners. They believe that the training would help
them obtain jobs.
Mr Moyo stated that he was one of the people who had spearheaded the task team
to rationalise the governance structure for sport in the country. The
Department did not have a strategy to deal with the issue. It was not SASCOC’s
responsibility. The National Sport Council Interim Committee met with SASCOC
which ended in a deadlock. Sport had
met with the Tourism, Hospitality and Sport Education and Training Authority
(THETA) to draw up a strategic approach for the next three years. There was a
need for volunteers. There was a
weakness in that it was not targeting the areas identified previously. The
target number had to be restructured.
Mr Frolick appreciated what had been said. At the time when SASCOC came to the
Committee with the issue, SASCOC said that they would focus on high performance
sport. Over the past three years they had shown that they did not want to
engage with amateur sport. The interactions with the various federations showed
clearly that some of them were absolutely not committed towards
transformation. One of those
federations, cycling, thought it would be perfectly in order to neglect the
historical areas where cycling had not been practiced, and take a small amount
of money and put it in Soweto. Therefore the Committee would like more
information around the development of an interim committee to ensure that
objectives were met.
Mr M Dikgacwi (ANC) wanted to know about the 30 000 volunteers, where were they
exactly. The Committee could not have oversight without the relevant
information. If the Department could not state exactly where each development
project was happening, the Committee could not monitor them. Regarding issue of
SASCOC, there had not been a single comment that was positive, and therefore
there had to be something wrong with SASCOC.
The Chairperson asked if there was a SASCOC presence at local and provincial
level. There seemed to be a major problem with the Service Level Agreement
which leans towards pro-SASCOC bodies, and disregarded the smaller bodies.
Mr Fredericks stated that at the moment there was only a national SASCOC
structure which was constituted of all the sporting federations.
The Chairperson then stated that since SASCOC was a national body it only dealt
with national sport and disregarded the provincial federations and amateur
bodies.
Mr Fredericks stated that the provincial federations were affiliated to their
national mother bodies, but there did seem to be a gap in that there was nobody
who had oversight.
Mr Frolick commented that when the amendment bill was presented at the various
provinces public hearings had been held.
When the audience was informed of what the national federations had to
say when they presented at Parliament, the people were furious. It clearly
illustrated the distance between national federations and the grassroots and
the communication problems that had arisen. It was because of this that their
input was immediately rejected
Mr Fredericks said that they appreciated the input from the Committee. In
regard to the volunteers, it related to all the Departments. SRSA can only
vouch for their trainees and had a full training schedule. The Department’s schedule for 2007 would be
available by 15 April.
The Chairperson stated that the Sport and Recreation Amendment Bill had been
tagged. It would correct all the things that were wrong with sport. He wanted
to know about the transformation problem and what was in the transformation
programme.
Mr Fredericks responded that the elements of transformation were not just seen
as black and white, but were about democracy, governance, equity and
opportunity. The nature of the
development program was also addressed. They had gone on a road show to
increase understanding in the provinces.
Mr Chairperson commented that opponents of transformation claimed that the key
aspect of the process was race. This was the view of people when talking about
transformation. Something was wrong and it now needed to be put it right. Some
sports clung to their historical positions and refused to change. Non-racialism
would be addressed as soon as it was understood and the playing field were
levelled. Merit would then become the
key element. The Department’s view was very sophisticated but people on the
ground understood it differently. He also
enquired about the problems in the municipalities.
Mr Fredricks stated that there had been problems with the municipalities. An
audit had been done and the report received was not good. Very little
maintenance was done on facilities. Part of the agreement was that they would
attend to those facilities. It was also a question of making money out of the
facilities. SRSA interacted with the local authorities but these authorities
often changed the terms of the agreements.
Mr Moyo commented on the progress of the municipalities. They were more
prepared regarding the infrastructure. Serious challenges had to be faced. Some
of the contractors gave ridiculous quotes and there were capacity problems.
Fortunately there was a detailed report that would be tabled to the Committee
soon. Another problem was projects meeting deadline and there might be
managerial issues. There was a commitment that World Cup stadiums had to ready
on time. They were doing day-to-day monitoring. Four civil engineers were responsible for this, two in the field
and two in the office. They were doing evaluation and assessment on a daily
basis. Whatever report was received from the technical committee would be
shared with the Committee. Scarcity of resources would be a challenge, both in
terms of materials and special skills.
The Chairperson commented on coordination. The municipalities were working very
well, and had given the committee a work time schedule. However there were some
that were not equipped.
The Chairperson asked what the African
World Cup concept was.
Mr Moyo replied that there had been a synopsis during the presentation. The
Declaration was a document by the heads of government in support of 2010 as a
programme of action. It called upon the ministers of sport in the continent to
support South Africa as a host nation. All the countries in the continent would
contribute wherever possible. One of the elements was urging the African Union
(AU) commission to call upon all ministers of sport to meet in South African in
May to map out the framework for policy guidance of member states in terms of
sport and recreation. Most of the previous policies were adopted in 1967 and it
no longer spoke to what was needed. Policies needed to be developed to address
issues that were a challenge to the youth. Immediate adoption was the Sport for
Peace Programme. This would start with
immediate effect to create an environment of development. It should be a
continuous programme. These programmes would link up with South Africa’s own
programmes.
Mr Frolick asked about the agreement between the Department of Sport and
Education, specifically the school sport programme. There was a suspicion that
a deviation had taken place between the time that it had been signed and when
it was implemented. Once again lots of officials had been appointed, while
teachers featured in the programme.
Mr Fredericks responded that the Department of Education (DoE) saw themselves
as custodian of school sport. As a result there were two different mindsets.
SRSA could not run school sport. Teachers made school sport happen. Full
responsibility should come to the SRSA and they would ensure that school sport
would happen. There was a small team in place to help facilitate but the
teachers ultimately did the work. It was a bit of disjuncture that was
receiving attention.
The Chairperson stated that the Committee would guarantee that they would help
on this matter and the issue of SASCOC. This year the Department and Committee
must be bold to reverse previous mistakes.
Ms Noma Koteho (Director Client Support, SRSA) commended the Committee on the
work done on the Bill. The committee needed to work together to come up with a
common approach. However it was quite disturbing to hear that there was a Bill
being processed but that the Department had not really interacted with it.
Mr Frolick stated that the Bill was a product of SRSA. They needed to
strengthen their communication within the Department, and to avoid a silo
approach. In each of the public hearings it was important that the legal
practitioner and a staff member of Department should attend. The Committee
would come to Pretoria to workshop on a number of issues before the break for
the winter recess. The Committee would then check the morale within the
Department
The Chairperson appreciated the input. The rules of Parliament stated that as
soon as the Bill came from Cabinet and was sent to the Chairperson of the
Committee, no one else would have authority on that Bill. On issues of
legality, the Department had a vested interest. They were now saying that the
Committee should not consult with the Department.
The Chairperson wanted to give the Department a reading of the resolution,
regarding government in sport, taken by the congress of world sports leaders.
Mr Frolick read the resolution and summarised that clearly there was a shift in
the mindset of international sport organisations, moving towards increasing
collaboration with government.
The Chairperson stated that this decision was a very progressive one.
Presentation by Chief Financial Officer SRSA
Mr M Matlala (Chief Financial Officer, SRSA) tabled a presentation on the
budget with comparisons from 2003/04 through until 2009/10. The budget clearly
showed that it had been increasing over the years but would decrease
substantially after the World Cup. Pie graphs illustrated how allocations had
been set. The compensation of employees amounted to 1.6% of the budget, goods
and services 4.6% of the budget; transfer payments were 93.7% of the budget and
capital assets only 0.03% of the budget. Transfer payments were broken down
into provinces, 6.5%, host cities, 91.2%, public entities, 0.55%, national
federations, 0.79%, Lovelife, 0.84% and other payments, which amounted to
0.004%.
Discussion
The Chairperson stated that there was an element that should not be
there. Lovelife, which had been addressed long ago, should not have been
included in the budget. He wanted clarification on compensation for employees.
Mr Matlala stated that it was all the salaries paid to members of SRSA. This
was the current terminology.
The Chairperson commented that terminology cannot be accepted, because when one
dealt with an accident at work it was then regarded as compensation. This was
how he understood the term. The issue
of Lovelife had moved backward. He stated that Lovelife received a combined
grant of R85million. There was a problem with the output of Lovelife. It could be considered a franchise, with the
amount of money that was paid continuously to the organisation and their use of
billboards as advertisements. Lovelife could not provide visible evidence, in
as far as AIDS was concerned, that sport had an impact on the Lovelife
campaign.
Mr Matlala responded it was not an excuse, but reality, that he had only taken
over in December 2006 and the budget process was already in the finalisation
stages. He did not question the figures before they were sent to Treasury.
The Chairperson asked Mr Fredericks why he did not tell Mr Matala about the
exclusion of Lovelife from the budget.
Mr Fredericks stated that they were aware of the Committee’s issues with
Lovelife and that they refused to pass the budget until the issue were
resolved. This was reported to the
Minister as well as and SRSA had facilitated meetings between Lovelife and the
Committee.
The Chairperson stated that the minister agreed with the Committee’s viewpoint.
Mr Fredericks felt it pertinent to look at the background. The funding was not initiated by SRSA. They
were given funding as a line function by Treasury. It seemed as if Treasury had
a soft spot for Lovelife, in terms of the funding. They had interacted with
Lovelife, which had just submitted their business plan, and the Department was
not happy. Their programs needed to correspond with those of the Department.
These issues needed to be addressed with the CEO of Lovelife.
The Chairperson stated that the issue with Lovelife needed to be managed.
Mr Frolick remarked that those concerns still stood. It could not only be this Committee that picked up problems. There
was an invitation issued to interact with the Committees in the Social
Transformation cluster. These issues
could then be put directly to Lovelife.
Mr Fredericks said that SRSA had been assured that our money was not used on
the billboards.
Mr Frolick commented on the allocation for the mass participation programmes,
which was seen critical in its role it to get young people involved. He visited
some of these hubs and noted that it was important to get the young people to
play, but they needed to go onto another level, therefore they need to involve
people who could assist in talent identification. There was no structure in the
hubs and for such a huge amount of money quality needed to be ensured.
Provincial government saw this as an added responsibility and did not want to
get involved. As a result it was disempowering for the individuals involved in
the hubs. Although it was gratifying to hear about the number of participants
in these programmes the Committee also wanted to know what happened to the
previous years’ participants.
Mr Fredericks realised that this was an issue.
He had sent through a proposal that every head of Department in every
province should accept their responsibility and take ownership. All recruitment
of young people and all equipment must be purchased before the end of June
2007.
Mr Fredricks stated that he was glad those points were raised. Programmes
should lead to lifelong participation. He commented that there was a fine
balance that one must maintain between a programme where the participants took
part for the sake of participation, and those that were identifying promising
talent. Sometimes if the focus shifted to those with talent, those without
would lose interest and not want to participate further. In the impact study
report, the programme developed in two directions. The numbers differed from
those that did the programmes for enjoyment and those that just participated
for competition. SRSA had recognised the need for talent recognition. They had
also recognised the need for sustainability. There was a weakness in some
federations and it was proposed that the Department should put a small team of
about three members per province in the field to monitor, evaluate the
situation and send reports as required. This would ensure a link with the
federations.
A representative of SRSA said that while the Department was trying to create an
enabling environment, this was
addressed within a challenge. It had been noticed that the areas that had been
chosen for club development were different to the hub areas. In terms of the
grant now, only clubs which were within a hub area would qualify.
The Chairperson asked how the Department was going to deal with the Minister of
Finance’s statement that those
federations that did not had a development plan would be taxed 45%. This would
ensure that those who did not had a development programme would be taxed and
those with one would have an incentive.
Presentation on upcoming Legislation
Mr Fredericks then went on to summarise his presentation regarding legal
services. Inclusive was the Promulgation of the Amendment Act, Safety at Sports
Stadiums Act, and the Sport and Recreation Amendment Act. These acts would
increase the efficiency and effectiveness within government, ensure safety of
spectators and bring sport and recreation in line with the changed environment
allowing the Minister to intervene in sport and recreational related matters.
Boxing SA presentation
Mr Dali Mpofu (Chairperson, Boxing SA (BSA)) noted that the Committee had been
shocked at the extent of their previous year's budget. He hoped that the
Committee would be pleased with the budget as it now stood. The most important
development was the fact that in the restructuring they would like to
strengthen the Baby Champs programme. He felt that the Department should give
direct assistance to that programme. If they could take one or two items and
coordinate them it would lighten the load. However, it should be noted that the
provincial government had assisted when sponsorship had waned or not performed,
as they should. Their nett budget was R10 million and their current budget was
R6, 5 million. There still were problems with the Lotto fund. They had
committed money for training and it had not yet been received. This had delivered
quite a blow. It resulted in having to redirect funds from the normal
operational budget. There were two areas, financial management and the issue of
boxing development that were emphasised. They hoped that for the first time
boxing would be able deliver their books on time. On the development front,
things were moving smoothly. Boxing was at one of its highest levels at the
moment. The remarks received from people indicated that BS was producing a
serious development program.
Discussion
Mr Dikgacwi commented on the popularity of boxers. There was an increase, and
there was a lot that had been improved. It was worrisome not to see white
boxers but he was pleased that had changed.
Mr Chairperson applauded BSA. He wanted to know how much was usually given by
the Lotto fund and for how long had they been giving BSA these funds.
Mr J Steyn (Chief Financial Officer BSA) said that the government grant had
increased from the R1.7million to R1.8million and then to R1.9milliion. The
Lotto Fund also increased gradually, from R600 000 to R800 000 and then to R880
000, depending on the plan.
The Chairperson enquired on the status of the Baby Champs League. He asked if they were amateurs or
professionals, because it could be linked up with the mass participation
programmes and it would save money. The Baby Champs League was more structured
than the mass participation programme.
Mr L Mtya (BSA) stated that Baby Champs programme were considered to be mass
participation. BSA trained officials themselves, together with the promoters.
Boxers that participated in the Baby Champs were termed professionals. In terms
of trying to lay down a safety net for the losers, a lot of them could be seen
as good prospects. They were looking at finding ways to move the losers upward
as well as. Baby Champs were new professionals.
The Chairperson asked how much was the salary of the CEO.
Mr Steyn replied that it was R2million included in the operating cost of
R4.6million.
The Chairperson enquired about the South African Boxing act and how it related
to the provinces.
Mr M Ngatane (BSA) stated that the controlling Act of BoxingSA actually set the
guidelines for BSA. It had turned into
a parastatal organisation. They had to go through a number of Ministers for
approval on the hiring of staff.
Mr Fredericks stated the Department never really funded professional boxing.
They eventually decided to help them, when they had some problems, to become a
self-sufficient outfit. The Department wanted to decrease their financing
gradually. Their understanding was that it had always been that BSA was a
regulatory authority. The problem could be that there had not been a close
relationship between BSA and SRSA. He suggested that they work together on a
few issues. The allocation to BSA was already in the draft bill and that
information should had been relayed to BSA.
The Chairperson recognised these problems. He realised that it was a government
entity and it needed to dealt with as such.
Mr Mpofu stated that the workshop should take place. The bureaucracy was
defeating the purpose and lengthening the processes. The Boxing Act was a
national act, and was an attempt to centralise control of the sport. BSA had
now tried to give some powers back to people on the ground.
The Chairperson stated that Mr Fredericks should work at formalising the
workshop. The Committee sympathised with BSA and realised that changes needed
to be made.
South African Institute for Drug-Free Sport presentation
Dr Shuaib Manjra (Chairperson, South African Institute for Drug-Free Sport
(SAIDS) wanted to echo some of the sentiments, such as the fact that they also
had no CEO due to the prolonged process they had to go through while trying to
appoint one.
The Chairperson interrupted, stating that there was a Bill that stated that the
acting CEO should remain until the new CEO took up the position. Removing the
CEO with no replacement had created a vacuum.
Mr Manjra agreed. He stated that there were some legal issues with the previous
CEO. Once they received permission from their Director General the CEO left
immediately without accepting their finite extension. The Department was keen
on re-evaluating their job grading.
This agreement then had to be signed by three Ministers which resulted
in a delay. This had put them in a difficult position and the situation was
beyond their control. Their strategy plan had four main objectives: to ensure
they had effective doping control programmes which were unpredictable and
independent; to implement comprehensive national awareness programmes on
prohibited substances; to source and initiate research doping issues to enhance
their effectiveness; and to participate in international anti-doping alliances
for the purpose of harmonising with the international community. The critical
elements include a target of 2500 tests from government funding. Additional
tests would be done with other funding. Of the 2500 tests they hoped to produce
equal results both in competition and out competition. SAIDS wanted to had a
maximum of 2% of tests to be done outside standard procedure. They want to
start their listing of athlete whereabouts information that would be strictly
maintained in 2007. All athletes registered in the testing pool would be put on
this database. They had 60 doping control officers, some of whom they would
want to train to become educating officers.
Their role in the 2010 seemed a bit uncertain. FIFA brought in their own doping
officers, however this would not be necessary as they can provide trained
doping officers. They were also audited on a regular basis.
Dr Manjra said that SAIDS would be initiating an education programme, which was
a new programme. It was computer based for the athletes to test themselves in a
quiz. SAIDS would also conduct research in terms of their educational
awareness. They would appreciate it if national federations appointed an
individual to be responsible for anti-doping methods.
Their research would expand to include knowledge, attitude and behaviours
regarding doping. A multi-centred trial had been held in school sports
regarding doping as it had come to light that school sports were experiencing
problems in this area. Focus would be given to traditional medicine in Africa,
some of which tended to give positive doping tests. Research needed to done to
find out which substances did this and methods had to be found to deal with it.
Dr Manjra said that SAIDS was increasing their international cooperation with
partners around the world. In addition they were attending a symposium to
increase harmonisation. A regional anti-doping organisation had been formed.
Their budget was estimated at R5.2million, 36% of the budget was for
administration, 54% was set aside for doping control, 5% for education and
research and 3/% for international cooperation.
Discussion
The Chairperson asked if in the R1.9 million, the CEO salary was included.
Mr Manjra indicated that all salaries were included in that amount.
The Chairperson commented on the school sport doping issues. He stated that
since the Department had a vested interest communication should start between
the two institutions. South Africa was one of only thirty countries that had a
lab for anti-doping. SAIDS could not be
seen as inferior, and he would speak to the Minister if FIFA seemed to be
against working with South African labs. He commented on the signing that was
required, that it could be seen as inefficient and that it had to be dealt
with.
Mr Manjra corrected the Chairperson stating that the role he spoke about was
the one of doping control officers. As far as he was aware lab would be fine.
The Chairperson, would talk to the Minister, and thought he could handle that
issue.
The Chairperson then adjourned the meeting.
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