Hansard: Second Reading debate: Road Accident Fund (Transitional Provisions) Bill [B 22B – 2012]
House: National Assembly
Date of Meeting: 28 Aug 2012
Summary
No summary available.
Minutes
WEDNESDAY, 29 AUGUST 2012
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PROCEEDINGS OF THE NATIONAL ASSEMBLY
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The House met at 15:03.
The Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
The SPEAKER: Order! Hon members, I invited you a while ago to take your seats. Please take your seats. The first item on the Order Paper is questions addressed to the Deputy President. As you know, members may press their to-talk button on their desks if they wish to ask a supplementary question.
QUESTIONS FOR ORAL REPLY
THE DEPUTY PRESIDENT:
Intended interventions to ensure greater social unity and cohesion in the economy
13. Mr K B Manamela (ANC) asked the Deputy President:
(1) With reference to a recent World Bank report (details furnished), what interventions (a) has he put in place and (b) does he intend to put in place to ensure (i) greater social unity and (ii) cohesion in the economy in terms of race, class and gender;
(2) whether he has found that a prolonged slow transformation and development rate will exacerbate inequalities; if not, what is the position in this regard; if so, what are the relevant details? NO2787E
The DEPUTY PRESIDENT: Hon Speaker and hon members, the World Bank report in question that the hon member refers to, released in July 2012, focuses on those factors that affect life chances for the majority of our people, particularly those that were previously disadvantaged. Sadly, in our society, these circumstances are largely personal and family-related.
An equitable society should not allow circumstances over which the individual has no control to influence his or her basic opportunities after birth. Unfortunately, at the moment, whether a person is born a boy or a girl, black or white, in a township or suburb, to educated and well-off parents or otherwise, is very relevant to whether or not they reach their full potential.
On the other hand, there are those factors that we can and should influence that provide an individual the opportunity to advance and reach their human potential, including improved chances of employment and earnings later in life as adults. These are access to quality education, health care and essential services, such as water and electricity.
Informed by the constitutional, historical and political imperatives, our policies since 1994 have consistently pursued the triple goals of equity, access and quality. We have achieved access in varying degrees in some areas, although there is still room for improvement with respect to quality. Therefore, we are of the firm belief that this is the critical path we need to follow towards greater social unity and cohesion in the economy in terms of race, class and gender.
With regard to the second part of the question, I have not conducted any studies to determine whether a prolonged, slow transformation and development rate will exacerbate inequalities. I thank you for your attention. [Applause.]
The SPEAKER: Is there a supplementary question? The hon Manamela was not here to listen to the answer to his question. We will then proceed. Are there any other supplementary questions? Is there somebody who would like to take the floor for Mr Manamela?
An HON MEMBER: Yes!
The SPEAKER: Oh, all right. Please go ahead. Oh, yes! Go ahead. [Laughter.]
Mr K B MANAMELA: Thank you, hon Speaker. There is no further follow-up question. [Laughter.]
Mr T D HARRIS: Mr Speaker, the World Bank report that the question refers to tells the story of insiders and outsiders who undermine social cohesion. Nowhere is this more obvious than where the report speaks of things like industrial concentration and labour market rigidities. My question to the Deputy President is: In this regard, in order to prevent the breaking out of an explosion of unrest associated with the dominance of certain trade unions in sectors like mining, would he support the replacement of closed-shop agreements with the proportional representation model for labour bargaining in such sectors, with minimum membership thresholds for participation?
Secondly, to prevent small firms which are not represented in bargaining councils from having to comply with conditions negotiated between big business and big unions at those councils, would he support scrapping the automatic extension of agreements to nonparties with reference to those bargaining councils?
The DEPUTY PRESIDENT: Hon Speaker and hon members, these collective bargaining arrangements or regimes are regulated by the Labour Relations Act. The Labour Relations Act, Act 66 of 1995, informs what happens and what types of collective bargaining agreements can be reached by parties in the work milieu. That is really something which this august House can deal with, by amending the Labour Relations Act accordingly.
I am wary of any suggestion which is aimed at whittling away rights, because we are a country and a society in which we pride ourselves on our record of human rights. Whether this collective bargaining regime impacts positively or negatively, it is something that we must always debate and assess, and adjust our legislative framework accordingly.
We should ensure that all stakeholders debate, participate and own the decision to streamline our Labour Relations Act or the collective bargaining regime in the country. That is something that can be initiated in this august House. It is not really for me to express a view one way or the other outside of the debate. I thank you.
Mr N SINGH: Hon Speaker, I would like to thank the hon Deputy President for the response. It is unfortunate that we were unable to get this report that was referred to in the question from the Table. They sent me a letter saying that, to their great regret and astonishment, they themselves never requested the report or reference.
However, notwithstanding that, cohesion in the economy starts with having a workforce or people who are employed in our country. For that to happen, education is a sine qua non. It is a sad indictment that the Limpopo textbook saga took place. I wonder whether the Deputy President would comment as to whether or not the executive is putting sufficient pressure on the member responsible for education in the Cabinet and on officials within the department to ensure this kind of sad event does not take place in the future. What are we going to do about it as we move forward? Thank you.
The DEPUTY PRESIDENT: Speaker, I thank the hon Singh. Yes, indeed, the President has instituted an enquiry into the failure to deliver books in Limpopo province. As you know, Cabinet took a decision to implement section 101(b) with regard to the department of education in Limpopo, and other departments as well. I agree with the hon member that cohesion would be greatly enhanced if we created an educated society. Therefore, whatever we do in the area of education is of critical importance, not only today, but for the future of this country as well.
Once the full report is received by the President, Cabinet will be able to ensure that this omission is never, ever repeated. In fact, our focus now is to ensure that the orders are placed now for the books to be delivered before the end of this year. We believe that this is not just a challenge facing Basic Education. It is one which faces government in its entirety, because education is our apex priority.
In our response, if it means the books should be delivered by the Defence Force, so it will be. We want to be in a position where we can guarantee that no child will be without learning support material when school begins. Thank you.
Mr N J J KOORNHOF: Speaker, one of the major ingredients for being a developmental state is to have good education. I think the hon Deputy President has partially dealt with the hon Singh's question. In addition, however, one must have entrepreneurial skills and business confidence, otherwise it will never happen. Does the Deputy President not think that the tragic incident at Marikana is currently hampering business confidence in South Africa at this time?
The DEPUTY PRESIDENT: Speaker, I think it is early days for me to know whether this is, in a sense, impacting negatively on investor confidence. For now, what I have observed by looking at the share price of Lonmin itself is that it has gone down. As to how long that will last, I am not sure yet. I think it is still too early for that kind of assessment to be made.
However, the point is that, as a country and as public representatives, we should continue to reassure investors that South Africa is a place in which to invest their money. South African mining, in particular, is an important investment outlet for them to consider. Thank you.
Issues raised by organised business and labour, and implementation of youth wage subsidy
14. The Leader of the Opposition (DA) asked the Deputy President:
With reference to his reply to question 11 on 15 August 2012, (a) what are the several issues that organised business and labour have raised that require further discussion and (b) what date has been set for the Cabinet decision on the implementation of a youth wage subsidy? NO2794E
The DEPUTY PRESIDENT: Hon Speaker, the hon Leader of the Opposition, since I last addressed this issue in this very House earlier this month – on 15 August 2012, to be precise – the process that I outlined then remains on track. Furthermore, it would not be advisable for us, as this House, to debate the details of the discussions that are taking place in the National Economic Development and Labour Council, Nedlac, before Nedlac itself concludes such discussions and submits a report to Cabinet. However, Cabinet has agreed that the process at Nedlac should be fast-tracked and finalised, and that the specifics of a multipronged youth strategy be developed before it proceeds with new measures. I thank you for your attention.
The LEADER OF THE OPPOSITION: Mr Speaker, two weeks ago, when I asked the Deputy President in this House whether he believed it was time to implement the youth wage subsidy ahead of a decision at Nedlac – because, of course, a decision at Nedlac is not necessary in order for the government to implement this policy – he responded that we would get answers the following day from the hon Ebrahim Patel during the youth wage subsidy debate. He called it D-day.
However, I am not sure whether the Deputy President briefed the hon Patel properly on this matter because we did not get any answers. In fact, there is more doubt and confusion about the status of the youth wage subsidy now than there was before. So, my question is: Will the Deputy President provide us with some resolute clarity on this matter? What is the status of the individual youth wage subsidy policy as tabled by National Treasury? Will it be implemented? If so, how soon will it be implemented? Thank you very much.
The DEPUTY PRESIDENT: Speaker, the youth wage subsidy was announced by the President in the state of the nation address in 2010. Following that, National Treasury also included it in the Budget Vote. In order to give effect to that announcement, as is normal practice, this was then referred to Nedlac for processing to ensure that all the stakeholders – organised business, organised labour, community and government – agree on how this is going to be implemented, as various stakeholders had different views. That is the process I was referring to. The Nedlac processes are, in fact, making good progress.
As Cabinet, we have mandated our representatives in Nedlac to ensure that they speed up the process. I am still very confident that what I said to you in this august House on 15 August 2012 was correct, and still is, to date. The Ministers of Labour, Finance and Economic Development are seized with this matter to ensure that whatever the stumbling blocks or areas that still hold this process back are clarified within Nedlac itself. That is why all the stops will be pulled out as soon as we receive that report in Cabinet. Thank you.
Mr M HLENGWA: Speaker, hon Deputy President, we find that government tends to flip-flop occasionally on policies it presents to the country. Two years on, the youth wage subsidy has not been implemented. Here we find ourselves asking a very simple question: When is it going to be implemented? We are not getting answers. So, we are now calling on the hon Deputy President to provide direction and give hope to young people, 72% of whom are unemployed, by indicating when it is going to happen. Is government actually willing to do it or is it buckling under pressure from other people outside government at the expense of young South Africans who need the youth wage subsidy? When is it going to happen? [Applause.]
The DEPUTY PRESIDENT: Speaker, that will happen at the conclusion of the Nedlac discussions. [Applause.] That will happen. [Interjections.]
The SPEAKER: Order, hon members, order!
The DEPUTY PRESIDENT: It will happen at the conclusion of those discussions. It may not be in the original form; it may have been enriched in a more effective way. [Interjections.] That is the answer to that question. [Applause.]
Mr Z C NTULI: Hon Speaker, would the Deputy President agree that the integrated approach of the International Labour Organisation, ILO, which reflects government's approach of combining microeconomic policies and targeted measures to address labour demand and supply, as well as quantity and quality of work, is a superior manner in dealing with the challenge of youth unemployment, as opposed to the DA's one-dimensional approach of a youth wage subsidy? Thank you.
The DEPUTY PRESIDENT: Hon Speaker, indeed, my understanding is that the challenge of youth unemployment cannot be addressed through one instrument only; it requires a multipronged approach. The youth wage subsidy, as I said, was announced by the President, further elaborated upon by National Treasury, and later embraced by the DA. [Laughter.] Therefore, we do not regard it as a DA proposal because it was something that was contained in the state of the nation address. This multipronged approach will include the DA's take on the youth wage subsidy.
So, it is a national effort and we should not locate it in party politics, because it is about a very important challenge: of ensuring that we create employment opportunities for young people. [Applause.] It is from that perspective that I believe the DA is not saying in its argument that the youth wage subsidy is a silver bullet, the only way to solve youth unemployment. They are embracing what the President announced, and so, that should be welcomed. Thank you. [Applause.]
Mr S C MOTAU: Mr Speaker, Deputy President, that is why we are so surprised that there is this dilly-dallying about implementing something that is, indeed, truly just one aspect of a multipronged strategy. In the two-and-a-half years that Nedlac has been debating the youth wage subsidy, 124 000 young people have lost their jobs. So, we are asking the question: How long is long enough for Nedlac? [Applause.] [Interjections.]
The DEPUTY PRESIDENT: Mr Speaker, unfortunately, Nedlac is a very important structure. [Interjections.]
The SPEAKER: Order, hon members!
The DEPUTY PRESIDENT: Nedlac guarantees that once a matter is agreed to in those chambers, it already enjoys the support of important stakeholders in our country. In the interim, because we are talking of a multipronged strategy and approach, all other elements of this multipronged strategy ought to be employed and given effect to with more vigour and enthusiasm, so that we truly deal with this challenge of the unemployment of young people. As I said, I believe we are treating this matter with the urgency that it deserves. That is why the three Ministers are going to be interacting with Nedlac to ensure that we get this report. We are no less eager to get the report and get going than you are on the other side of this House. Thank you.
Measures to respond to communities' grievances while preventing violent protests
15. Mr M G P Lekota (Cope) asked the Deputy President:
Whether the Government intends to implement measures to (a) respond to grievances of communities, (b) encourage disgruntled citizens to participate in constructive solutions to matters causing protest action and (c) prevent violent and destructive protests; if not, what is the position in each case; if so, in each case, what (i) measures and (ii) are the further relevant details? NO2792E
The DEPUTY PRESIDENT: Speaker, government supports and respects the right of people to express themselves through peaceful means, whether these be mass protests, marches, pickets, or any form of peaceful demonstration. Our Constitution and other laws of the land promote active citizenship by providing opportunities for people to participate in policy development and other matters that concern their lives.
At the same time, those engaging in mass demonstration have a duty and responsibility to ensure that their action is peaceful and does not result in the violation of the rights of those who may choose not to be part of the action, or who may hold different views. It is of concern to us if violence is becoming normalised to the extent that it is considered to be a viable and legitimate way of resolving problems and asserting or protecting one's interests.
Our efforts are aimed at strengthening our capacity as a nation to live, work and develop together. This can be achieved through improving individual attitudes and actions, based on respect for the rule of law and shared values, and a commitment to a strong social fabric. I thank you for your attention.
Mr M G P LEKOTA: Speaker, many people who are observers of our situation at this time have progressively come to this conclusion: that the major cause of the problems in our communities now erupting into violence is as a result of the infighting over resources within the ruling party and its structures ... [Interjections.] ... that lack of accountability and manipulation, in particular, of the tenders and resources involved lead to factions within the ruling party fighting amongst themselves; that houses of the councillors elected by the supporters of the ruling party are being burned down by the supporters of the ruling party; and that this is, in fact, spreading the disease of corruption even deeper in all spheres of government.
With government totally immersed in this monster of endemic corruption, how does the Presidency, as the head of the executive, propose to take government out of that and place it on a platform to change this situation? [Time expired.]
The DEPUTY PRESIDENT: Speaker, hon Lekota, you did not actually get a chance to complete your question, but I think the first part of it is how the Presidency plans to deal with or to root out corruption. All the other remarks you made about an organisation are unknown to me. I will not go into that.
This alone may be said, and I want to say it with all the conviction of its truth: The instruments, legislative and otherwise, the agencies that have been established to root out corruption, have teeth and are dealing with corruption on an ongoing basis. The participation of members of the community as whistleblowers is very impressive. That is why we are getting all these reports about acts of corruption coming out into the open. It is because we are steadily making progress. More people are participating in ensuring that those that act in a corrupt manner are brought to book. That is something that we should recognise and give more strength and fillip to.
On this issue, there certainly is commitment on the part of our government and the Presidency to ensure that we eliminate any acts of corruption. Of course, as I have said on previous occasions in this House, it takes more than just the institution's agencies and laws to root out corruption, because corrupt acts are committed when there is collusion between those inside and outside of government to manipulate processes. That is why it is so important to support the instruments that are in place to continue eliminating acts of corruption. I think that answers the bit of the question that I heard and you were able to make after the long peroration. I thank you.
Mr P F SMITH: Speaker, Mr Deputy President, do you know the expression, There is no smoke without fire? It seems to us that very often government seems to be caught by surprise when things go wrong. People are very angry, but it is only when the smoke is billowing and yet another building is being burned down, or another councillor's house is gone, or another crisis has occurred, that government realises, in fact, how people really feel about things and how bad things are. So, my questions to you are twofold: Firstly, does government actually have a finger on the pulse of the mood of the nation? Does it know how people feel? Secondly, has government got a plan to be more proactive in anticipating how people are going to react, as opposed to just wading in afterwards and shooting from the hip? I thank you.
The DEPUTY PRESIDENT: Speaker, government can only be effective to the extent that it is held accountable by an active citizenry. Once the citizenry is active as whistleblowers, public representatives raising issues in the House and on other public platforms, then government would be held accountable. As I said, there is, indeed, room for improvement, because there are all these structures, like constituency offices, community development workers, and so on. All of these are located within communities, and so if or whenever there is a matter of grave concern to a community, that ought to be raised and government should be expected to respond swiftly to concerns so raised. The fact that matters of concern to communities end up being communicated through smouldering buildings, and so on, is something that we should all be concerned about and do everything in our power to prevent. I thank you.
Nk D G NHLENGETHWA: Somlomo, Sekela Mongameli ngiyavumelana nawe uthi abantu banelungelo lokwenza imibhikisho ngokuthula. Ngiphinde ngivumelane nawe uma uthi abantu abakithi abanalo ilungelo lokwenza imibhikisho enodlame. Kufanele siye emiphakathini sibatshele lokho.
Mhlonishwa Lekota, wumsebenzi wami nawe, njengamaLungu ePhalamende ukuthi siye ebantwini sibatshele ukuth uhlelo lukahulumeni lalo nyakamali luthi sizokwenza lokhu, nalokhu nalokhuya. Uma singaphumelelanga siphinde sibuyele ebantwini sibatshele ukuthi uhulumeni uhlulekile kulo nyaka ukwenza lokhu, nalokhu nalokhuya. Lokhu kuzonciphisa lokhu kubhikisha okudlame okudlangile.
Sekela Mongameli nginombuzo wokuthi: Kuyo yonke le mibhikisho enodlame ekhona kuleli lizwe, ingabe uMnyango wezokuPhepha kweZwe walapha eNingizimu Afrika uyakubheka yini ukuthi asikho isandla semfene kuyo yonke le mibhikisho? Ngiyabonga. (Translation of isiZulu paragraphs follows.)
[Ms D G NHLENGETHWA: Speaker and Deputy President, I agree with you that everyone has the right to demonstrate peacefully. I also agree that the public does not have any right to violent protests. It is therefore our duty to inform our communities of that.
Hon Lekota, as Members of Parliament, it is our duty to inform the public of the programme that our government has proposed for each financial year. When we fail to complete the tasks set out in the programme for each year, we must again inform the public. That will curb the widespread violent protests.
Deputy Speaker, I have this question: Has the Department of State Security considered the possibility that there might be a third force fuelling all these violent protests in this country? Thank you.]
The DEPUTY PRESIDENT: Hon Speaker and hon members, yes, indeed, the role of Intelligence is to gather intelligence timeously, so that it is effective. Once information is gathered after the fact, it then becomes the work of investigators from the law enforcement units. Intelligence is meant to be streets ahead of any happenings, so that they can be prevented from taking place. That is work that is unfortunately not the same as the work done by the uniformed investigators, and so on. I do thank the hon member for explaining and emphasising the point that demonstrators ought to be persuaded to demonstrate peacefully and in an orderly manner without trampling on the rights of others.
Mr D A KGANARE: Speaker, Deputy President, the problem of service delivery is well known, but some of the people who are masquerading as leaders of these protests are just hooligans, they are not leaders. I cannot comprehend how the burning of a school will result in the building of a road, or how stopping children from going to school will result in a mayor's resignation. [Applause.]
The question I have is: Do we have leadership, as far as Intelligence and the Police Service are concerned, because none of these people are prosecuted? No information is gathered to ensure that these events are pre-empted. Why can you not you fire the Ministers of Intelligence and the Police Service? [Interjections.]
The DEPUTY PRESIDENT: Speaker, I agree with the hon Kganare that, indeed, it may very well be that some of the people participating in the demonstrations are hooligans. However, the reason we recognise and accept that people have the right to picket and demonstrate is that there are genuine demonstrators who have genuine issues to raise. As for the other part about firing Ministers, unfortunately, I am only a Deputy President, so I also serve in Cabinet by invitation. [Laughter.] I thank you very much.
Rail, road, maritime and information technology infrastructure development
16. Mr X Mabasa (ANC) asked the Deputy President:
What measures are being put in place by the Government to contribute to (a) rail, (b) road, (c) maritime and (d) information technology infrastructure development with a view to achieving greater economic and social development across the African continent? NO2789E
The DEPUTY PRESIDENT: Speaker, hon Mabasa, the Presidential Infrastructure Co-ordinating Commission has identified Regional Integration for Africa Co-operation and Development as its 17th Strategic Infrastructure Project, SIP.
The objective of SIP 17 is to strengthen regional socioeconomic development and intracontinental linkages through partnering with other African economies on infrastructure development. The project focuses primarily on transport, water, energy and logistics infrastructure. SIP 17 will complement the free-trade area to create a market of approximately 600 million people in South, Central and East Africa.
While focus has been on obtaining funding for South Africa's infrastructure programme, as driven by state-owned enterprises, government, through the Department of Public Enterprises as the lead department, has recently undertaken a number of measures to position them to contribute to the development of infrastructure on the continent. Based on lessons learnt in the past, a new engagement framework is thus being developed to guide and catalyse state-owned enterprises' involvement in infrastructure projects. The framework will provide a clear funding model and a process of building mutually beneficial relationships between our state-owned companies and partner countries on the continent. For instance, Eskom, Transnet and South African Airways have established business teams focused on developing African strategies.
In respect of information and communications technology, government is focused on establishing Broadband Infraco's core business in South Africa, while at the same time providing interconnectivity within the Southern African Development Community, SADC.
This will be achieved with the roll-out of broadband infrastructure in Limpopo, Mpumalanga and North West, and will therefore enable international connectivity to the West Africa Cable System. Currently, Broadband Infraco is connecting two clients in the SADC region, namely Namibia and Botswana.
Our engagements on the continent aim to foster a strong, shared vision on co-operation in infrastructure development, building institutional capacity, funding and a supportive investment and regulatory framework. I thank you for your attention.
Nkul X MABASA: Xandla xa Presidente, xana Afrika ri nga vuyeriwa njhani eka nhluvukiso wa switirhisiwa eka ku tumbuluxa mitirho, nhluvukiso wa swikili na nxaviselano wa matiko ya Afrika ku hunguta ku xava swikili, nhundzu na switirhisiwa swo huma ehandle ka Afrika loko swikili na nhundzu swi ri kona endzeni ka Afrika?
Xana tiyunivhesiti na tithekinikhono ti sungurile ku tilunghisela ku pfuna eka pfhumba ro kurisa switirhisiwa swa Afrika xana? (Translation of Xitsonga paragraphs follows.)
[Mr X MABASA: Deputy President, how can Africa benefit from infrastructure development in the creation of jobs, skills development and trade with African states in order to reduce the sourcing of skills, goods and infrastructure from outside Africa when skills and goods are available within Africa?
Have universities and technikons started with preparations to assist in the initiative to develop African infrastructure?]
The DEPUTY PRESIDENT: Hon Mabasa, I could not agree with you more. The development of infrastructure and interconnectivity within the region is of paramount importance, and the sharing of research through institutions of higher learning and technikons is something that should underpin those efforts for enhancing interconnectivity within the region. In addition, such interconnectivity would include the road network and rail networks in the region itself, as well as in the area of information and communications technology, ICT. I think that covers the question as I followed it.
Mr L RAMATLAKANE: Hon Speaker, following on the Deputy President's reply, particularly regarding the presidential commission he mentioned, much is said – and we all agree – about interconnectivity on the continent. However, in relation to the transportation of goods, we are also worried about the country's rail freight system, which is becoming dilapidated.
We all know that economic growth also depends on that particular mode of transport being at the heart of the economy in terms of commuting and transporting. What is the government's thinking and focus around this rail freight? Mozambique is already leading the way, while we continue to think about the rail freight infrastructure and system. What are we going to be doing, in terms of the presidential commission, with regard to this particular area of work?
The DEPUTY PRESIDENT: Hon Ramatlakane, as part of these SIPs, one of the nodal areas is the Waterberg area. Transnet is playing a very important role in terms of developing freight rail networks from that area in Limpopo through to Richards Bay, as well as Maputo.
As you know, Transnet is also increasing its rolling stock to ensure that the current practice of relying on road trains – which also punish the roads – is reduced, and more heavy cargo is transferred to rail. The plan by Transnet is to address precisely that problem. Thank you.
Mr K S MUBU: Mr Speaker, Xandla xa Presidente [Deputy President], I have a question in relation to the standardisation of infrastructure. I am thinking about the railway lines, for example. We know that some countries have got narrow gauge and others have wide gauge rail lines that cannot accommodate trains from other countries.
In terms of ICT standardisation, certain countries in Africa source their infrastructure from different countries. How are we going to ensure that there is compatibility in the infrastructure that we are talking about across the entire continent? Also, taking into account that different countries in Africa have reached different levels of development, how do we ensure that this technology and this infrastructure speak to one another? Thank you.
The DEPUTY PRESIDENT: Speaker, this was discussed at the summit of the three regional economic communities, the Southern African Development Community, SADC, the Economic Community of West African States, Ecowas, and the East Africa Economic Community. The possibility of standardising infrastructure was also canvassed at that summit. Of course, the understanding is that there will be sidings where cargo and freight is transferred, rather than for the trains to run right across borders, as it were. This is something that is desirable and is one of the elements of integrating and promoting intratrade within Africa itself. Thank you.
Dr M G ORIANI-AMBROSINI: Mr Speaker, I would like the Deputy President to kindly comment on the fact that, in respect of continental infrastructural development, for the past 20 years our leader, Prince Mangosuthu Buthelezi, has put forward a very detailed proposal to accommodate the development of a supernational entity in Africa at a much faster pace, but limited to democratic countries. This, while we continue to pursue what is the necessarily slower pace of international organisation through the existing infrastructure, specifically with a view to creating a continental centre of decision-making provided with limited sovereign powers. This can bring about the type of co-ordination of infrastructure which has not taken place – and it is a horrible reference to make, but a correct one - since the colonial period.
Does the President have an opportunity to review this echoing proposal from our leader? Does he have an opinion? If not, would he be in a position to review it once we send him a copy?
The DEPUTY PRESIDENT: Speaker, certainly we would welcome it if we were favoured with a copy of the proposal. When was it penned, hon Oriani-Ambrosini?
Dr M G ORIANI-AMBROSINI: Speaker, the first time was in January 1993, during the First World Economic Forum held in Cape Town, and on a number of subsequent occasions, including a presentation to Cabinet in 2003; and also in a couple of other articles which we will undoubtedly send to the Deputy President.
The DEPUTY PRESIDENT: Thank you very much. Please, do furnish us with a copy. My colleague, the hon Trevor Manuel, sits on the North-South Corridor project of the African Union. So, that may actually be factored into their discussions in that regard. Do forward the copy to us. Thank you very much.
SOCIAL SERVICES
Cluster 2
MINISTERS:
The SPEAKER: Question 249 addressed to the Minister of Basic Education has been asked by the hon K R J Meshoe. I am told that the Deputy Minister of Basic Education will reply to the question on behalf of the Minister.
Mr M WATERS: Speaker, on a point of order: May we ask why the Minister of Basic Education is not here ... [Interjections.]
The SPEAKER: Order, hon members.
Mr M WATERS: ... given the fact that question time is on the programme and has been for several months? The Minister was quite aware of when she would be expected to come and answer oral questions in the House. So, can we please have an explanation as to why she is not here? Thank you.
The SPEAKER: Thank you very much. Hon Enver Surty, you have the right to respond on behalf of the Minister. Proceed.
Action taken against departmental officials as a result of destruction or discarding of textbooks
249. Rev K R J Meshoe (ACDP) asked the Minister of Basic Education:
Whether any officials of her department have been (a) charged or (b) dismissed because of textbooks that were destroyed or thrown away in provinces such as (i) Limpopo, (ii) the Eastern Cape and (iii) North West; if not, what is the position in this regard; if so, (aa) how many and (bb) what action has been taken against those responsible? NO2757E
The DEPUTY MINISTER OF BASIC EDUCATION: Thank you, hon Speaker. Just to ease the minds of those here, the hon Minister is in Mauritius representing South Africa at a regional conference. So, that is why she is not here today. The hon Meshoe is not present, but he requested ... [Interjections.] ... Oh, all right, I see him there now. Thank you very much. My apologies.
There are three issues. The first is with regard to the destruction of textbooks, the second is in relation to the dumping of textbooks, and the third is in relation to another incident of dumping that has occurred.
An official in the department of education in Limpopo has been arrested on three charges of dumping. He was arrested on two counts of dumping in the Limpopo province and subsequently rearrested and recharged on a third count. The dumping was in relation to workbooks. I would like to explain to the House that there are 52 million workbooks that are distributed countrywide in all 11 official languages. These workbooks are basically sent to each and every school. However, in order to prevent difficulties and challenges in relation to shortages or the delivery of workbooks, the Department of Basic Education provides for some 20 000 workbooks to be stored in each district warehouse to enable easy access where there are shortages or where books in the wrong languages have been supplied.
The official concerned – from the information at our disposal – utilise an opportunity to acquire, firstly, the use of a vehicle; secondly, to be remunerated for the purpose of delivering books to a school, which he did not do. In other words, it is a fraudulent activity on his part. The information is that he confessed to the misdemeanour and, indeed, was arrested. We have requested the Special Investigating Unit and Special Anti-Corruption Unit, as well as the National Prosecuting Authority, NPA, to look at any element of collusion in this regard.
With regard to the second issue, that is, the destruction of textbooks, the information at our disposal is that this was carried out by an agent we had contracted with the government of Limpopo. We would like to say clearly and unequivocally that we do not condone any form of destruction of textbooks or workbooks, and certainly, it goes against the grain of what we represent and the interests that we promote.
However, the information at our disposal is that she illegitimately acquired the authority to procure these textbooks. The procedure that is followed in the department of education in Limpopo is that district and provincial officials are responsible for the assessment of any textbooks which they wish to dispose of. Where a textbook is obsolete in terms of the curriculum, the procedure is that it would be redirected to a library or a resource centre. It appears that, in this particular instance, the authority was illegitimately provided. The contract has been cancelled and the Special Investigating Unit, the Special Anti-Corruption Unit and the NPA have been requested to investigate the matter on an urgent basis.
On the last issue, regarding the most recent arrest concerning the textbooks, from the information at our disposal, these are not textbooks that belonged to the department of education or any particular school or entity of government, but to a publisher. The person who has been arrested is an agent of the publisher, who has, indeed, disposed of these textbooks. Investigations have been carried out and he has, indeed, been arrested and has appeared in court. [Time expired.] [Applause.]
Rev K R J MESHOE: Deputy Speaker, I thank the hon Deputy Minister for his elaborate reply. Fingers have been pointed at EduSolutions. According to reports, on 17 January Pat Ellis, who is a senior legal advocate, decided to discourage government from being in partnership with EduSolutions. He advised that, because the company got the contract which is invalid, alternative suppliers should be sought. There are many who believe that, had that advice been taken, we would not have the mess we have in the department today.
So, my question is: If this advice was indeed given to the department, why did the department choose to ignore such legal advice? Will the department or government consider recovering the millions that were lost from those people who took part in the destruction of the books? Many of them, we are told, came out of overpayments. [Time expired.]
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Deputy Speaker, I thank the hon Meshoe for raising this question, because it does give us an opportunity to clarify the situation. Firstly, as far back as 2011, a service level agreement was concluded between the department of education in Limpopo and the service provider, EduSolutions. It is, indeed, correct that we received information from Treasury, which is responsible for the overall administration, that there are elements that are noncompliant in terms of this particular exercise and we should basically seek to cancel the agreement. Thereupon, the Department of Basic Education did, indeed, cancel the agreement.
Now, this is a very interesting situation, because if we had not done so, the question that the hon Meshoe is asking would be that, notwithstanding the fact that we had information or were requested to cancel the agreement, we chose to proceed. On the basis of strong legal opinion, what the department then did was to cancel the agreement. EduSolutions then launched an application to court, seeking to enforce the agreement. The matter was opposed and the application was dismissed with costs. So, the service providers that supplied the books after the interventions were not EduSolutions, but the publishers.
What we can convey to this House is that the cost at which we procured the textbooks was about one third of the cost that was originally projected. So, it was a huge cost-saving exercise. Yes, there was a delay, but, on the other hand, certainly, we contributed very directly to a more efficient pricing of these commodities.
We can also assure the House that, in terms of next year, there have already been negotiations with the publishers and, certainly, the rate at which we are going to be procuring in Limpopo will be far more competitive than it has ever been before. So, that will also amount to a saving to the fiscus. Thank you very much. [Applause.]
Mr D C SMILES: Deputy Speaker, the textbook crisis has exposed the lack of performance and accountability within senior management ranks in the Department of Basic Education. There were many requests for the Minister to resign, but it is clear that the Minister had been let down by some officials. Will the Minister consider replacing the captain of the team? Will the Minister ask the head of department and some of the heads of departments in the provinces to resign? Thank you.
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Deputy Speaker, as the hon Deputy President has previously indicated, the President had indeed appointed a task team to look into the matters of the Limpopo debacle. It had elaborate terms of reference and a report has been submitted to the President. The President will make the appropriate decisions based on the findings and recommendations of the report. Thank you very much.
Mr W M MADISHA: Deputy Speaker, having a task team does not mean there is proper administration. There is still no administration. Therefore the question is: Are they prepared to replace the present administration that is there at levels of the head of department, etc? Neither the Minister herself nor the Deputy Minister has done well for many years. Are they prepared to step down? [Interjections.] If they are not, is the Presidency in the country prepared to ensure that that is dealt with? If the Presidency is not prepared to do so, then the people of our country have got to be responded to when they raise this particular question. Thank you.
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Deputy Speaker, I suggest that the hon Madisha refers the matter to the hon President who is responsible for my appointment and that of the Minister of Basic Education. Thank you. [Applause.]
Ms N GINA: Deputy Speaker, I thank the Deputy Minister for his response. What I was going to ask, he has clarified. We can now see systems in place in Limpopo so that, in future, we do not encounter the textbook destruction that we have seen there.
Further to that, could the Deputy Minister elaborate on the policies, for example, regarding the shredding of books, which is a worrying factor to all of us? Can we still continue with that policy, and how best can we make sure that it is being followed, so that we avoid a recurrence of what happened in Limpopo? Thank you.
The DEPUTY MINISTER OF BASIC EDUCATION: Deputy Speaker, with regard to the first part of the hon Gina's question, indeed, the Department of Basic Education and Treasury are working very closely in relation to the procurement of textbooks for next year. Resources have been identified and set aside for that particular purpose. The necessary business process with regard to the procurement, acquisition and ordering of textbooks is on track.
With regard to the destruction of textbooks, or any book that belongs to the state, this amounts to malicious damage to property and it is criminal. If books are in such bad shape and certainly cannot be used, then there should be a proper system in terms whereof an assessment and evaluation should take place.
Firstly, my view – in fact, this has been the recommendation – is that all principals in each and every school, not only in Limpopo, but countrywide, must be notified that under no circumstances are they permitted to destroy books or hand them over for destruction. Secondly, the provincial departments of education must take central control for the monitoring and assessment of books that they wish to dispose of. Thirdly, wherever possible, libraries and resource centres must become the beneficiaries of textbooks that are not aligned to the curriculum. Lastly, only if a book is totally unusable, should it then be destroyed.
These are policy initiatives that should be taken into account, and we are going to have a comprehensive discussion on this matter at the next Council of Education Ministers' meeting to refine this particular position so that it is uniform, countrywide. I thank you.
Introduction of performance contracts for school principals and deputy principals
239. Mrs A T Lovemore (DA) asked the Minister of Basic Education:
Whether she intends to introduce performance contracts for (a) school principals and (b) deputy principals; if not, why not, in each case; if so, (i) when and (ii) what are the relevant details of the proposed contracts? NO2738E
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Deputy Speaker, it has been the intention of the Department of Basic Education and the Ministry to introduce performance agreements for school principals, deputy principals and heads of department, so we confirm that. Secondly, the intended date for the implementation is January 2013, after an agreement reached in the Education Labour Relations Council. I thank you.
Mrs A T LOVEMORE: Deputy Speaker, through you to the Deputy Minister, the lack of accountability is at the very core of most of the problems in our education system. The SA Democratic Teachers' Union, Sadtu, is determined to avoid accountability at all costs. It refused to accept the performance contracts in 2008, and it referred them to the bargaining council. Four years later, Sadtu still refuses to accept these accountability mechanisms.
The Minister has been public in her support for these contracts. Also very public has been reporting that the President has forced her to back down to avoid alienating the unions ahead of Mangaung. [Interjections.] How exactly are you and the Minister going to persuade the President and Sadtu of the dire need for meaningful performance monitoring and accountability mechanisms in our schools? [Applause.]
The DEPUTY MINISTER OF BASIC EDUCATION: Deputy Speaker, firstly, to have a better understanding of the performance agreement, it firstly deals with issues of the employment data of the employer, the nature of the job, the description of the job, the qualifications and skills. The second element, which is a very important element particularly for purposes of performance, is a work plan containing key responsibility areas, KRAs, outputs, activities and resource requirements. The third element, which cannot be ignored, is the element of personal development, a personal development plan. The hon member is correct: the agreement was not accepted by Sadtu in 2009 and, ever since, there has been discussion between it and the Department of Basic Education.
The good news is that beyond the performance contracts of principals, deputy principals and heads of department, we now have an agreement. It is in its informal stages where performance agreements would be concluded with all educators, irrespective of whether they are teachers, principals or deputy principals. Secondly, the agreements would no longer be bifurcated, that is, between senior management, or principals and deputy principals on one hand, and teachers on the other hand.
The argument of Sadtu is that all educators should be treated under one agreement, and performance agreements should basically inform each and every element within the education system. Now, the discussions have reached an advanced stage and, to all intents and purposes, have to be formalised in the Education Labour Relations Council, ELRC. Basically, the intention is still to conclude this task by January next year.
What Sadtu has argued for is really the most important element of the work plan that is critical for performance agreement. In other words, what kind of elements should you have in the work plan? It would be the performance standards, the key activities, the targets, the timeframes within which they should be achieved, and the performance indicators. It would also have due regard to the contextual factors.
These discussions, as I have indicated, have advanced extremely well and to all intents and purposes, we are going to get more than we bargained for, not on performance agreements only with the principals, deputy principals and heads of department, but also with all educators. The indications are that this will be supported by all unions. As I have indicated, this falls outside the ELRC and what is, indeed, outstanding is the formalisation of this particular process within the ELRC. I do hope that the hon member takes heart at the enormous strides that have been made and not the pressure that we were subjected to, as alleged or alluded to.
Mrs C DUDLEY: Deputy Speaker, through you to the Deputy Minister, what do you see as the major challenges facing the department and the Minister in introducing the contracts? Secondly, considering that external factors also affect learners' results, how will the contracts ensure that principals are not focused only on statistics and targets to the detriment of learners as individuals, and has this been looked at in any depth?
The DEPUTY MINISTER OF BASIC EDUCATION: Deputy Speaker, through you to the hon Dudley, the key challenge basically is to ensure that we have a collective agreement that is concluded at the ELRC. In other words, all labour unions should be part of this agreement. The phenomenon of performance agreements is not unique to this country. In America and in Europe there is still a huge debate, and not even an agreement to the incorporation of performance agreements for educators. In fact, there is discussion and discourse in this particular regard and, in my respectful opinion, we have advanced considerably in ensuring that we are able to persuade the unions to agree to performance agreements. So, I think that is a step in the right direction.
The difficulty would be really to ensure consensus, and I do believe that the critical element is basically the implementation of the curriculum. So, the performance of educators must be measured against the ability to implement the curriculum. In order to do so, we would have to look at the outputs and the key performance indicators which indicate whether, indeed, the educator or the principal had done so. The principal, for example, would have to show leadership in the implementation of the curriculum. The principal would have to be able to show an ability to liaise effectively and efficiently with the community. The principal should be able to promote the spirit of democratic governance within an institution. The deputy principal would have similar responsibilities.
The teacher or the head of department would basically have an advisory role to ensure that he or she supports the educators entrusted to that person with the necessary support for development and better management of the curriculum challenges that he or she faces. So, it is very diverse in nature, but at the heart of the performance agreement must be the effective and efficient delivery of the curriculum, which is the core business of the Department of Basic Education. Thank you very much for the opportunity.
Mrs J D KILIAN: Hon Deputy Speaker, we were listening to the responses on the textbook problem earlier, and on this specific problem there is a grave concern developing in that we are battling to get these performance contracts in place. As a result of lack of performance contracts and lack of agreements, etc, basic education is not delivered to the poorest of the poor, because there is a severe growth in teacher absenteeism, which is resulting in South Africa performing poorly against our neighbours.
I would like to mention some of the statistics in a recent survey: 27% of all Grade 6 learners are functionally illiterate, and 40% are functionally innumerate. We have higher levels of functional illiteracy than Mozambique, Botswana and Namibia. We are contributing from the state 15 times more than Mozambique does. What is wrong with our system? Is there a lack of accountability? Is there simply a lack of acceptance by teachers that they have a responsibility to teach the children of our country? We are growing a two-nation model. Thank you.
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Deputy Speaker, I think the last remark is perhaps the most pertinent one – that we are indeed a two-nation model. We have the more affluent communities in better resourced schools, where they have the ability and capacity to have better educators, and we have those in the remote rural areas with fewer resources in terms of amenities, laboratories and libraries. Those are the realities that we cannot ignore. You have made the comment, I have not, and I am saying I endorse it. It means the challenges are far greater.
There must be recognition of the fact that a large number - in fact, millions of our learners - had been excluded from the system of education in the past. As a result of democracy, we can now celebrate the fact that more than 99% of our learners who ought to be in primary school are, indeed, in primary school. However, that does not detract from the responsibility of ensuring that we promote literacy and numeracy. To that extent, we now distribute more than 52 million books on literacy and numeracy between Grade R and Grade 9 annually, because we recognise the problem. No country on this continent has ever gone to the extent that we have where we have tested six million learners from Grade 1 to Grade 6 in terms of literacy and numeracy.
This year, from 18 to 22 September, in the second year of the programme of annual national assessment, seven million children are going to be tested – that includes the Grade 9s – on literacy and numeracy, because we have a diagnostic assessment, a baseline. We can determine precisely whether they progress or regress, where the areas in need of intervention are, and what avenues of intervention we should be exploring in terms of enhancing literacy and numeracy.
We are not pretending that we have a literate community, but we should look at statistics elsewhere. We should look at Tanzania, for example, where less than 50% of its eligible population goes to high school because they are selected on the basis of merit. We have almost universal enrolment in our high schools. Tanzania has less than 50%, so what you see in terms of those results are that the best among the population is at high school.
I think in terms of access we have done extremely well, but I think in terms of quality we have huge challenges, and we have not pretended that we do not have these challenges. We are affirming that, but we are saying that we are doing something positive. Certainly, all political parties and parents should mobilise and ensure that their children utilise these workbooks because they are recognised as being of an extremely high quality, to the extent that the private schools want to procure them from the Department of Basic Education. Thank you very much.
Mr C M MONI: Madam Deputy Speaker, my follow-up question relates to whether the developmental needs of the school principals, deputy principals and heads of department, as identified in their personal development plans, will be addressed by the Department of Basic Education or by other institutions outside the department. I thank you.
The DEPUTY MINISTER OF BASIC EDUCATION: Hon Deputy Speaker, I really sincerely apologise. I did not catch the entire question, but if the question was whether there is something being done in relation to the development of principals and deputy principals, indeed, it is so that more than 4 500 deputy principals and principals have received training. The identified areas of training in terms of a curriculum that has been established within the institutions of higher learning include curriculum implementation, fiscal management, communication, liaison with communities, governance elements, and expertise in terms of leadership and management.
These have contributed significantly to the improvement in the quality of leadership in schools, and the empirical evidence is that where principals and deputy principals have, indeed, been provided with these opportunities, there has been enhanced efficiency in those particular schools. I thank you.
Accessing and lapsing of beneficiaries' grants, pursuant to reregistration process
256. Mrs Y R Botha (ANC) asked the Minister of Social Development:
(1) With reference to the reregistration process undertaken by her department through the Social Security Agency of South Africa (Sassa), (a) how long do beneficiaries have to wait in order for them to access their grants and (b) when will the benefits of those who have not yet reregistered lapse or expire;
(2) what are the (a) benefits to the grant beneficiaries and (b) security measures that are in place with regard to the new smart card system? NO2766E
The MINISTER OF SOCIAL DEVELOPMENT: Deputy Speaker, the reregistration process does not require beneficiaries to wait to access their grants, as the reregistration process is done in phases. Beneficiaries who have not yet been reregistered continue to receive their grants using their old payment cards. Reregistration takes place after the payment of grants, and the new smart card issued on reregistration is then used to effect payment during the following month's payment cycle. The payment of grants is therefore not impacted on by reregistration.
The benefits of those who have not reregistered will be dealt with once the reregistration process has been concluded. Those beneficiaries who have not reregistered will be identified, and letters of notice will be sent to them requesting them to present themselves for reregistration within a period of 30 days. Should beneficiaries still not reregister within this specified period, the grant will be suspended and another notice will be issued to them. Failure to respond within 30 days will result in the cancellation of the grant.
The benefit to the grant beneficiaries is that they can access their grants through various channels, namely, cash pay points at any ATM. We should also note that normal ATM withdrawal costs apply at any of the identified merchants. The SA Social Service Agency, Sassa-branded smart payment card is accepted at all ATMs and merchant stores that have a point–of-sale device which forms part of the national payment system. A further benefit to beneficiaries is that the grant is available from the first day of the month at ATMs and points of sale that form part of the national payment system. Furthermore, beneficiaries can determine the amount of money they want to withdraw according to their own specific requirements when withdrawing from ATMs and points of sale.
The new Sassa-branded smart payment card has a chip that contains the biometric information of the beneficiary. In addition, the card is PIN protected to allow withdrawals at ATMs and points of sale where biometric identification is not possible. The card further provides an electronic certificate which confirms proof of life, amount paid, time paid and the recipient paid, including the procurator. A receipt is generated after each payment, verifying proof of payment to each beneficiary, as well as the amount of money withdrawn. The system also enables a one-to-many search to identify duplicate beneficiaries, thereby eliminating ghost beneficiaries. Thank you.
Mrs Y R BOTHA: Deputy Speaker, I would like to know from the hon Minister whether any fraud has been detected so far. If so, could the Minister share with the House the number of those cases?
The MINISTER OF SOCIAL DEVELOPMENT: Deputy Speaker, 13 000 cards were given up. Those cards given up are being investigated. It does not mean that if someone brings a card, you will just be left and it will not investigated, because some of the cases involve the officials. About 8 000 beneficiaries that have been reregistered were not on the population register, and more than 400 beneficiaries withdraw their money out of the country. Nine people were arrested, and one of them was charged. Last year, out of the 37 people that we arrested, 16 people were charged.
In other areas around Umzimkhulu and Matatiele, those who had twins and triplets registered have come to report that they are no longer there. Thank you. [Applause.]
Mrs J D KILIAN: Deputy Speaker, we welcome all investigations into and revelations of fraud in these matters, and hope that people are charged if they commit fraud. However, we also want to ask the hon Minister what she is going to do about the fact that the North Gauteng High Court ruled yesterday that the R10 billion state social grant tender awarded by Sassa was in fact illegal, invalid and against the principles of the Constitution.
The judge also ruled that the chief executive officer and the winning bidder, Cash Paymaster, must pay the legal costs of the applicants, including the Absa-owned AllPay. There was a very serious concern with regard to this, in that people in the successful bidding consortium, who were very well connected politically, were, in fact, behind the scenes operating to cash in on one of the government tenders. The question is: What will the hon Minister do to clean up this mess, which is again emphasising concerns that the ordinary people have, that the state is used as a cash cow for corrupt people? Thank you.
The MINISTER OF SOCIAL DEVELOPMENT: Deputy Speaker, perhaps I should mention here in this House that four Child Protection Services, CPS, workers died in a bus accident in Kranskop, KwaZulu-Natal, en route to reregistering grant recipients today. I also want to thank Sassa workers for trying to ensure that we have a footprint throughout the country.
There is a second judgment that the hon member did not concede – that the award of the tender to the third respondent has not been set aside. For us, that is a victory for the people, because this whole matter is about justice and about trying to protect the human rights of the vulnerable. The third issue that we would like to raise is that we agree that there were administrative flaws. There were also flaws in terms of the issues of a single bid out of nine bids, the irregularity in the scoring and the challenges in the supply chain management.
What is important is that the key areas that were contested are the areas of the bidder's second notice. With bidder's notice number two, the judgment favoured Sassa, and the issues of conflict of interest on the part of Ms Nhlapho could not be proved. Other issues of connections were thrown out of court by the judge from the start and regarded as hearsay, because no evidence could be produced. We continue to ask people to come forward with the evidence.
Another important issue is that of biometrics, which ensures that the system is clean. The judge recognised that the clause has always been there, so it is not as if the whole thing has always been problematic. One of the issues that we need to raise here is that when all these rumours erupted and some people were implicated ...
The DEPUTY SPEAKER: Hon Minister, I think you have answered the question. I have allowed quite a big chunk of time for you to do that.
Mr M WATERS: Deputy Speaker, through you to the Minister, the entire reregistration process has been clouded in controversy, culminating in yesterday's High Court judgment that declared the R10 billion tender as illegal and invalid. These are very strong and very harsh words from a court. No matter how you try to justify it, it is illegal and invalid, which is surely an embarrassment to you, personally, and to your department.
Now, you have said that you want this to be a victory for the people. If you want that, hon Minister, what steps would you take to ensure that those individuals that are guilty of making this tender illegal and invalid are brought to book and held accountable for their actions? [Applause.]
The MINISTER OF SOCIAL DEVELOPMENT: Deputy Speaker, firstly, I need to say that the judge asked for alternatives to the proposals from the applicant for dealing with the matter. In point number eight of the judgment in the response to those remedies, the judge says the remedy proposed by the applicant is not just and equitable in the circumstances, as it does not ensure that there will be no interruption in the payment of grants. That is a victory for the people. Certainly in my view, it also practically says that it does not require the setting aside of the agreement that Sassa has entered into with the CPS.
Mr M WATERS: Deputy Speaker, on a point of order: My question was not answered. I asked the Minister what steps she is going to take against guilty officials that have brought the contract into disrepute, and she has not answered it.
The DEPUTY SPEAKER: But she ...
Mr M WATERS: I take it that no action will be taken.
Ms H N MAKHUBA: Hon Deputy Speaker ...
... ngiyabonga Ngqongqoshe ngezimpendulo osusinikeze zona. Ngisukumela ukubuza ukuthi njengoba sazi ukuthi ukuphinda ukubhalisa ngenkathi kuqala akuqalanga ngasikhathi sinye kuzo zonke izifundazwe. Ngicela ukubuza: Ngabe yiziphi izifundazwe ezisasele ukuze zibhaliswe noma mhlawumbe kukhona yini izifundazwe esingasho ukuthi sekuqediwe kuzona ukuphinda ukubhalisa? Ngiyabonga. (Translation of isiZulu paragraph follows.)
[... thank you, Minister, for your responses. I want to know which provinces have already completed the reregistration process and which ones are still lagging behind, since it was not started at the same time in all provinces. Thank you.]
The MINISTER OF SOCIAL DEVELOPMENT: Thank you, Deputy Speaker.
Ngiyabonga kakhulu umbuzo oqhamuka kukaMakhuba. Okwamanje sisabhalisa zonke izifundazwe, sibhalisa isifunda ngasinye. [Thank you for your question, Ms Makhuba. We are still in the process of reregistering all districts one by one.]
We reregister per district. In all the districts, 75% of the people register and we register 30 000 people per day. By the end of December, we will reregister banked recipients, and during that period we will round off all the districts that we have been to, because we want to ensure that everyone is part of reregistration. We do not want to exclude people.
Okunye engifuna ukukusho Somlomo, akuzange kube khona into ekhulunywayo mayelana nenkohlakalo kuso sonke lesi sinqumo. Ngiyabonga. [Another issue to be considered is that nothing has been decided in this House about fighting corruption. Thank you.]
Mr M WATERS: Deputy Speaker, on a point of order: May we ask why the Minister of Higher Education is not here either ... [Interjections.] ... given the fact that at the previous oral questions for the Social Cluster, he was not present in that instance either, and this has been on the parliamentary programme for the entire year. Thank you.
The DEPUTY SPEAKER: Thank you, hon member. I do not have the reasons in front of me. I am sure there is an apology from the Minister. I would not be able to answer that. Can we allow the Deputy Minister to respond? All I have is the information that the Deputy Minister will respond to questions.
Mrs S V KALYAN: Madam Deputy Speaker, may I address you on a point of order with regard to what you have just said? It is a convention or a courtesy for the Minister to forward an explanation for absence. We received one this morning from one of the Ministers but we did not receive any with regard to the Minister of Basic Education and the Minister of Higher Education. May I request that this convention be resumed?
The DEPUTY SPEAKER: I note what you are saying, hon member, but my response is that I did not receive an apology, either here, in front of me, or in my office. It does not necessarily mean that it was not submitted to the Speaker, perhaps, but I am saying I cannot answer you right now because I did not get any apology. That is why I am saying the Deputy Minister must respond.
Implementation of central application system for registration at higher learning institutions
252. Mr B M Bhanga (Cope) asked the Minister of Higher Education and Training:
Whether his department is ready to implement the central application system aimed at streamlining registration at higher learning institutions; if not, what is the position in this regard; if so, what are the relevant details? NO2762E
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, the planning process for the development of the central application service is well under way. However, due to the conflict in acronyms, there was a need to rethink the naming. The Career Advice Service, a Department of Higher Education and Training project being developed in partnership with our implementing agency, the SA Qualifications Authority, Saqa, has used the acronym, Cas. Therefore, the name that will be used henceforth is the National Information and Application System, Nias.
The first phase of Nias will be implemented for learners intending to enter universities in 2013. This will be done through the introduction of a clearing house. Applications for 2013 will still occur through individual institutions, with the exception of KwaZulu-Natal, where the Central Applications Office is up and running. However, a new clearing house service will be put in place to assist the process from national level.
In terms of timelines, it is envisaged that the Nias IT system, which will be developed from October 2012 to June 2013, will be piloted in 2013 at selected institutions. This will benefit the 2014 intake at these institutions. Once the IT systems have been piloted and tested, the full implementation across all 23 universities will be phased in. It is therefore envisaged that the full implementation will begin in 2014 for the 2015 intake.
In the interim, while we are waiting for the full introduction of the National Information and Application Service, let me highlight that I have been leading the very progressive Apply Now campaign. Its main objective is to promote the message that matric learners should apply early for their post-school learning, thereby ensuring that there is sufficient time to look for alternatives should the first application be unsuccessful. The campaign is also meant to reduce the queues that have proven to be fatal at our universities. So, this campaign is indeed the genesis of the progressive introduction of the central application system. I hope I have answered the question. Thank you very much. [Applause.]
Mr B M BHANGA: Deputy Speaker, firstly, if this were a press conference, the Minister of Higher Education would be here. That it is not a press conference is unfortunate, because he only attends press conferences. He does not attend committee meetings. [Laughter.]
We are unable to run and provide seats for our kids in our education system. Is this what we want in South Africa, Deputy Minister? To date, we have been unable to provide better accommodation for our students. The department is unable to fill vacancies. Does it have the capacity to run a nationwide system that will also accommodate students with the problems that we have had during the year in terms of registration?
In KwaZulu-Natal, which the Deputy Minister talked about, this system is not working. Is this Minister not trying to centralise everything so that he has more power, obsessed as he is with a Stalinist approach of doing things in this country? [Laughter.] [Applause.]
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, on the contrary, the central application system is working in KwaZulu-Natal. In fact, we have drawn lessons from the KwaZulu-Natal model, including a study that we conducted in the United Kingdom, and we believe that it will assist in dealing with some of these backlogs. Indeed, the hon Bhanga would also appreciate that that is the reason we are establishing two universities – in order to accommodate as many young people as possible into universities. We do believe that, with these two universities, we will be able to address the problems he is raising.
Lastly, as I sit down, we are trying as a department to promote further education and training, FET, colleges as institutions of choice. We do believe that the focus must not only be on universities because, if we focus on universities, then we are going to run out of space. The FET colleges are institutions where young people can really source the necessary and scarce skills that we require as a country. Thank you very much. [Applause.]
Dr A LOTRIET: Deputy Speaker, the Deputy Minister has referred to this whole system being phased in and that, eventually, 23 universities will be part of it. Do all the universities, in fact, support this system? If they do not support it, will they be obliged to participate in this? Thank you. [Applause.]
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, we met the vice chancellors through their forum called Higher Education SA, Hesa. Initially, they had raised concerns around implementing this particular system, but I can assure the hon member that, in our ongoing discussions with vice chancellors representing the 23 universities, indeed, we are getting buy-in from all 23 universities. They are agreeing, because this will not just help the students, but it will also assist the universities in dealing with applications and admissions. Thank you very much. [Applause.]
Mr L L BOSMAN: Deputy Speaker, I thank the Deputy Minister for the replies. We are quite concerned about the confusion that is going to be created by this system. One of the issues that we are worried about is the different criteria set by different universities. They are autonomous and they can have criteria whereby they can select their students. There are different study directions and subjects that they need to pursue. There are students living some distance from the different centres and it is easier for them to apply to the closest university.
So, my question is about the alternatives to the centralised application system. Does the Minister not think that having an information system run by the department as well as the universities with criteria set on closing dates, and so on, would be a better solution to the problem?
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, the central application system speaks to exactly what the member is raising – there should be criteria that all universities use in order to draw applications, process them, and place students in universities. In fact, the reason we are getting buy-in now from these 23 universities is that it is speaking to having the same criteria that students will respond to. I hope I have answered the question. Thank you very much.
Mr S M MAYATULA: Deputy Speaker, could the Deputy Minister allay the fears of the Hesa members? In the joint workshop between Higher Education South Africa and the Portfolio Committee on Higher Education and Training, Hesa raised the concern that they feel this process will disadvantage institutions. For example, institution B, the second choice of a student, will have to wait for institution A, which is the first choice, to look at the applicants and accept or reject the student before they have an opportunity to consider the student. According to Hesa, this process will create many delays in terms of the admission processes for the institutions. What measures will the department put in place to ensure that this service will work for the benefit of students and institutions, and not against them?
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, we are very confident that this system or service will actually improve the experience of many students during the application process. The system will further assist in ensuring that there are no long queues and stampedes, as was seen at the University of Johannesburg, where a parent tragically lost her life.
I think I attempted to respond to this question earlier – that there was unease or some form of discomfort on the part of Hesa, which is the body of these 23 vice chancellors. It may have existed, but it is what we are trying to settle through our ongoing discussions with the vice chancellors. To this end, I am saying we are really getting buy-in. I am certain that by the time we fully implement this system, we will all agree to this particular approach of a central application system. Thank you very much.
Fegarding financing and impact of survey on prevention of mother-to-child transmission of HIV
265. Ms B T Ngcobo (ANC) asked the Minister of Health:
With reference to the survey that has been conducted by the Medical Research Council (MRC) on the Prevention of Mother-to-Child-Transmission (PMTCT) of HIV Programme, what (a) were the findings of this survey and (b) was its impact on the programme as a whole? NO2775E
The MINISTER OF HEALTH: Hon Deputy Speaker, the latest impact study by the SA Medical Research Council, MRC, has the following findings. Firstly, in 2008, the HIV transmission rate from mother to child at six weeks of pregnancy was 8%. In 2010, that was reduced by more than half, to 3,5%, and in 2011, it was further reduced to 2,7%. The impact of this on the whole programme is as follows. Firstly, mothers are increasingly bringing their babies back for testing, and are willing to have them tested for HIV, as opposed to what used to happen in the past.
Secondly, these positive trends and decreasing transmission rates bring with them the possibility of achieving virtual elimination of mother-to-child transmission by 2015.
Lastly, because there are now fewer babies born HIV-positive as a result of this programme, it is going to contribute to the reduction of the infant mortality rate and the mortality rate in children under the age of five. Thank you.
Ms B T NGCOBO: Deputy Speaker, I thank the Minister for the information he has given us. We applaud the fact that more children are going to be HIV-free. We are going to have an HIV-free generation. What happens to the mothers that are HIV-positive? Is the maternal death rate due to HIV also reducing?
The MINISTER OF HEALTH: Deputy Speaker, the findings on the study that specifically focused on the reduction of the mortality rate in women who are HIV-positive are still going to be released. What we currently know in the country is that, yes, the number of people who are dying of HIV and Aids is definitely decreasing. South Africans are living longer lives, and these findings will be released formally by the MRC tomorrow. We do have evidence that because our programmes are working, people are living much longer. Thank you.
Mrs D ROBINSON: Deputy Speaker, the DA welcomes these findings indicating that there has been a significant reduction. We are so glad that the dark days of denialism, when ARVs were denied to people and all those tens of thousands of children who had become infected suffered in vain, are over.
The latest HIV prevalence survey has indicated that girls as young as 10 are becoming infected with HIV/Aids. They are becoming pregnant as a result of having sex with older men. Apart from the fact that this is statutory rape and there have been no convictions, what steps are the Minister and his department taking to counter this abomination?
The MINISTER OF HEALTH: Hon Deputy Speaker, I am sure the hon member is aware that such an abomination is not the problem of the Department of Health only. It is a societal issue. I am sure she is also aware that the SA National Aids Council, Sanac, has been established to help the department fight these problems. She is aware that it is chaired by the Deputy President of the country, and there are 19 sectors within it to deal with this issue.
The hon member will also be aware that the Minister of Women, Children and People with Disabilities is also going to launch a special commission to deal with these issues of violence against women and children so that society can help. In short, while we are trying our best in the Department of Health, we also want to call out to society, to make them aware that these problems are societal issues.
Lastly, in the next few weeks, we are going to launch a very strong school health programme, together with the Ministry of Basic Education, to try and take these programmes right to school level. We believe it will also contribute positively. Thank you.
Mr D A KGANARE: Deputy Speaker, hon Minister, there is quite a large number of nongovernmental organisations, NGOs, which have been involved in the fight against HIV/Aids but which are negatively affected by the donors who used to finance them. As a result, some of them might stop functioning. What I would like to know from the Minister is whether, in terms of his budget, he is progressively trying to accommodate these NGOs so that the work that they have been doing does not come to an end.
The MINISTER OF HEALTH: Deputy Speaker, I am sure the hon member is aware that the issue he has raised is a global phenomenon, affected by the global economic downturn that has not been favourable for anybody. That issue has been discussed at very high levels. It was the topic of discussion during the recent UN International HIV Conference in Washington. Because South Africa is mostly affected by the American funder, President's Emergency Plan for Aids Relief, Pepfar, the Deputy President Mr Kgalema Motlanthe held several meetings during that conference with US senators who are responsible for these programmes.
Recently, when US Secretary of State Hillary Clinton visited here, this issue was discussed with them. There is a programme we are setting in motion to try and alleviate the effects of this withdrawal by many international donors. The matter is also being discussed within Sanac. We do have programmes that we are trying to put in place, but unfortunately, I will not have the time to explain the details. All in all, however, we believe that the many NGOs who help in the work of HIV/Aids should not be negatively affected.
One of the results of the discussions with US senators by the Deputy President is that for the next three years, at least, nothing will change; things will actually stay the same, giving us a chance to recover. Thank you.
The DEPUTY SPEAKER: Hon Minister, may I point out that the time for questions is about to expire. Therefore, there will only be enough time for a supplementary question from the person who asked the question. [Interjections.]
Realisation of target date for issuing of all outstanding FET certificates
243. Dr A Lotriet (DA) asked the Minister of Higher Education and Training:
Whether, with reference to his reply to question 841 on 30 May 2012, the target date of 31 July 2012 for the issuing of all outstanding further education and training (FET) certificates, including (a) Report 191 and (b) National Certificates Vocational (NCV), has been realised; if not, (i) why not and (ii) when will the certificates and report be issued; if so, what are the relevant details? NO2747E
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, yes, the target date of 31 July 2012 has been met for Report 191 certificates. They have been printed and dispatched to examination centres for further distribution to all the deserving candidates. The last batch will be finalised for dispatch at the end of this month.
On the National Certificate (Vocational), NCV, we have not yet completed the process but we are, of course, in negotiations with Umalusi, the quality council on the certification of this qualification, and it will be finalised. We are waiting for a formal delegation from Umalusi to issue certificates to all the candidates affected by the current backlog, by no later than 31 October 2012. We are on course and we will meet this deadline of 31 October 2012. Thank you.
Dr A LOTRIET: Deputy Speaker, I want to disagree with the hon Deputy Minister in terms of the Report 191 certificates, because there were certain colleges that had not yet received their certificates by 1 August. The problem with the nonissuing of the certificates is not merely an administrative issue. People's lives are severely affected by their not being able to get jobs or retain their employment because they are not receiving their certificates. As one father wrote to me:
My daughter completed her three-year course at the end of last year. She and the rest of the intake never received any certificates. Therefore, they can't apply for work. I feel like I have wasted three years of my daughter's life, besides the money I had to pay.
This was sent to me two days ago. Besides just another timeline, what assurance can the Deputy Minister give these students and the students of this year that they are not writing their exams in vain; that they are doing their bit? What can the Deputy Minister do to really assure them that they do not have to wait for another few years? [Applause.]
The DEPUTY MINISTER OF HIGHER EDUCATION AND TRAINING: Deputy Speaker, I have said in my response that we did meet the deadline of 31 July but, of course, the last batch will be finalised for dispatch, by the very least, at the end of this month, which is the end of August.
What we have been doing in the process is issuing letters to those candidates who have not received certificates, so that they can take them to places of employment, and so on, while we wait for this process to conclude. We are really looking at finalising this matter and we are saying that by the end of August, at least, we will have completed the Report 191 certificates, and all candidates will be in possession of their certificates. We are really hoping to meet this deadline. Thank you very much. [Applause.]
See also QUESTIONS AND REPLIES.
NOTICES OF MOTION
Mr L RAMATLAKANE: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:
That the House debates the need for the reclassification of education as an essential service.
Mr G G HILL-LEWIS: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the regulatory and legislative burdens faced by small business and measures by which the situation can be improved to promote economic growth and job creation.
Mr E M SULLIMAN: Deputy Chair, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates promoting improved regional stability in Africa through the support for peace, conflict resolution and prosperity.
Me L JACOBUS: Adjunkspeaker, ek gee hiermee kennis dat ek by die volgende sitting van die Huis namens die ANC sal voorstel:
Dat die Huis Suid-Afrika se rol in die bevordering van vrede, sekuriteit en stabiliteit op die kontinent debatteer.
(Translation of Afrikaans notice of motion follows.)
[Ms L JACOBUS: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates South Africa's role in the promotion of freedom, security and stability within the continent.]
Mr J J VAN DER LINDE: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That this House debates the effectiveness of the outcomes of the Proactive Land Acquisition Programme and its contribution to rural development and solutions to improve the situation.
Mr L RAMATLAKANE: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:
That the House debates transferring all houses that are being rented to poor people to those living in them as a creation of assets in the hands of the poor.
Mnu M B BHANGA: Sekela-Somlomo, ndenza isaziso sokuba kwintlanganiso elandelayo yeNdlu, ndiza kuphakamisa egameni le-ANC:
Ukuba iNdlu ixoxe ngokuphalala nokuwa kukarhulumente woMasipala we-Nelson Mandela Bay.
(Translation of isiXhosa notice of motion follows.)
[Mr M B BHANGA: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates the collapse of the Nelson Mandela municipality due to lack of finances and corruption.]
Mrs W J NELSON: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates strengthening and continually transforming the legislatures to ensure that they contribute towards our people's empowerment and participation.
Ms M C MOHALE: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates strengthening school health services with an emphasis on the promotion of personal and sexual health.
Mr M SWART: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the slow progress made with the Accelerated School Infrastructure Delivery Initiative (ASIDI) for which R8,2 billion has been provided to eliminate inappropriate and particularly mud schools and solutions to resolve the problem.
Dr J C KLOPPERS-LOURENS: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates urgent measures to preserve the satellite engineering capability vested in SunSpace to ensure that South Africa maintains and advances its lead as the only spacefaring nation on the African continent.
Mr A M MPONTSHANE: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House debates the role of EduSolutions in the procurement of learner support material in the various provinces.
Ms L L VAN DER MERWE: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:
That the House debates levelling the playing fields at the public broadcaster to ensure that all political parties receive equal coverage, which is ultimately a matter that goes to the heart of our democracy.
Mr E J MARAIS: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the DA:
That the House debates the obstacles to development and service delivery in human settlements and solutions to address these problems.
Mrs D F BOSHIGO: Madam Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ANC:
That the House debates transforming gender relations by eradicating all manifestations and consequences of patriarchal oppression.
Mrs J D KILIAN: Deputy Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of Cope:
That the House debates the lack of accountability of the Executive which is evident through their conspicuous absence from Questions days and other sittings of the House.
CONDOLENCE ON DEATH OF DR NEVILLE ALEXANDER
(Draft Resolution)
Mrs M T KUBAYI: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes that on 27 August 2012, former revolutionary and struggle hero Dr Neville Alexander died at the age of 75;
(2) further notes that Alexander, who was imprisoned on Robben Island with Nelson Mandela for 10 years on a charge of conspiracy to commit sabotage, was best known as a proponent of a multilingual South Africa;
(3) acknowledges that he was a co-founder of the National Liberation Front and a director of the South African Committee for Higher Education;
(4) further acknowledges that he emphasised the need for further research into the relationship between language and the economy in South Africa; and
(5) extends its deepest condolences to the family and friends of Dr Alexander.
Agreed to.
PROTEAS ATTAIN NUMBER ONE SPOT ON INTERNATIONAL CRICKET COUNCIL RANKINGS
(Draft Resolution)
The CHIEF WHIP OF THE OPPOSITION: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes that South Africa has become the first cricket playing nation in history to attain the number one spot on the International Cricket Council's rankings in all three formats of the game;
(2) further notes that South Africa achieved this honour with a comprehensive 80-run victory over England in the second match of the one-day international series played at the Ageas Bowl in Southampton, England;
(3) acknowledges that Hashim Amla, who was recently named Player of the Series in the test series against England, continued his sublime form with a personal best score of 150 runs off 124 balls; and
(4) congratulates the South African team and coaching staff on this monumental achievement.
Agreed to.
TEAM SA'S PARTICIPATION IN 2012 LONDON PARALYMPIC GAMES
(Draft Resolution)
Mrs S V KALYAN: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes that today marks the start of the 2012 Paralympic Games in London, England;
(2) further notes that South Africa will be represented at the Games by a 62-member team that personifies the spirit of sportsmanship and reminds us that with enduring sacrifice, determination and unwavering dedication we have the ability to grasp opportunities and realise our true talent and potential;
(3) acknowledges that Team South Africa, which will once again aim to be one of the leading medal contenders, will strive to surpass its efforts of the 2008 Games in Beijing where the team won 30 medals, of which 21 were gold;
(4) further acknowledges the dedicated efforts of all our sportsmen/women and support staff in the build-up to the Games; and
(5) wishes Team South Africa the best of luck for its participation in the 2012 London Paralympic Games.
Agreed to.
FREEDOM OF THE CITY OF JOHANNESBURG BESTOWED ON
AHMED MOHAMED KATHRADA
(Draft Resolution)
Mrs M T KUBAYI: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes that the South African struggle icon and veteran leader Ahmed Mohamed Kathrada was bestowed the freedom of the City of Johannesburg at the Walter Sisulu Hall in Kliptown on Tuesday, 21 August 2012;
(2) further notes that Mr Kathrada became the fifth South African person to receive this award from the City of Johannesburg, following other figures in the liberation struggle such as Walter Sisulu, Beyers Naude, Nelson Mandela and Joe Slovo;
(3) acknowledges that Kathrada, who spent 26 years in prison alongside former President Nelson Mandela and other struggle icons, is hailed for his humility, dignity and selfless service to the poor and voiceless;
(4) recognises that Mr Kathrada moved to Johannesburg at the age of eight as there was no school for Indians in the then Western Transvaal, and he lived in Johannesburg for 25 years before he went to Robben Island following the Rivonia trial in 1963; and
(5) congratulates him on this well-deserved award.
Agreed to.
REGINA MUNDI CHURCH JUBILEE CELEBRATION ON 26 AUGUST 2012
(Draft Resolution)
Mrs M T KUBAYI: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes that on 26 August 2012 the iconic Regina Mundi church celebrated its Jubilee;
(2) further notes that the Roman Catholic Church in Moroka has a long history of service dating back to the student uprising in 1976;
(3) acknowledges that it was also one of the venues for the country's Truth and Reconciliation Commission hearings;
(4) further acknowledges that during the past 50 years, Regina Mundi has been a religious and political sanctuary to thousands;
(5) recognises that over 200 people visit Regina Mundi every day and learn about its significant history; and
(6) extends its best wishes to the Regina Mundi church on its jubilee.
Agreed to.
CONDOLENCES ON DEATH OF DR GLADSTONE SANDI BAAI
(Draft Resolution)
Mrs M T KUBAYI: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes with great sadness the death of South African Human Rights Commissioner, Gladstone Sandi Baai, who passed away on 15 August 2012 at the age of 69;
(2) further notes that in 1966 he was accepted by the Cape Town Conference as a candidate for the Ministry of the Methodist Church of South Africa;
(3) remembers that Mr Baai, after six years of training, was ordained as a Minister in Pretoria in 1973 and subsequently obtained a Bachelor of Theology Degree in Moral Philosophy and Missiology at the University of South Africa;
(4) further remembers that in 1978 he was awarded the Christian Fellowship Trust Scholarship to participate in a political awareness programme about the apartheid policies in South Africa and in this regard visited Great Britain, the Netherlands, Germany, France and Switzerland;
(5) recalls that despite the several setbacks he had encountered in his education, he studied for a Masters Degree in Divinity, which was awarded with magna cum laude in 1984 and later obtained a Doctor of Philosophy Degree in 1988;
(6) further recalls that Mr Baai was a hardworking pastor who remained committed to his vocation to the ministry throughout his life;
(7) acknowledges that his illustrious career spanned many years and he occupied several posts as the first black lecturer in Pastoral Theology in the Faculty of Divinity at Rhodes University in 1990, as Director of Professional Ethics based at the Head Office of the Public Service Commission in Pretoria in 1996 and as Commissioner at the South African Human Rights Commission in 2010;
(8) further acknowledges that he made a significant contribution to the transformation of society when he led a team that developed the Code of Conduct for over a million public servants, which was made government policy and was included as Chapter 2 of the Public Service Regulations of 2000;
(9) appreciates his deep compassion, humility, commitment and courage, which he proved in true selfless service to his people and the country;
(10) further appreciates that he was a man of faith, courage, integrity and honesty; and
(11) extends its heartfelt condolences to the family of Mr Baai, friends and colleagues.
Agreed to.
AFRICAN TRADITIONAL MEDICINE WEEK
(Draft Resolution)
Mrs M T KUBAYI: Madam Deputy Speaker, I move without notice:
That the House -
(1) notes that African Traditional Medicine Week is observed from 24 August until 31 August this year;
(2) further notes that traditional African medicine is a holistic discipline involving the use of indigenous herbalism combined with aspects of African spirituality;
(3) acknowledges that about 80% of Africa's population relies on traditional medicine for their basic health needs;
(4) further acknowledges that in some cases traditional medicine is the only health care service available, accessible and affordable to many people on the continent; and
(5) believes that the significant contribution of traditional medicine as a major provider of health care services in Africa cannot be underestimated.
Agreed to.
ROAD ACCIDENT FUND (TRANSITIONAL PROVISIONS) BILL
(Second Reading debate)
Mr L SUKA: Hon Deputy Speaker, the Road Accident Fund makes social insurance cover compulsory for all users of South African roads. The amendment makes compensation from the fund more equitable and fairer to road users.
The fund, which was governed by the Road Accident Fund Act, Act 56 of 1996, provided road accident victims with rights to full compensation from the fund. This Act was amended by the Road Accident Fund Amendment Act, Act 19 of 2005, which was brought into effect on 1 August 2008.
Essentially, this amendment, specifically section 18 of the Act, limited the damages recoverable from the fund by certain categories of passengers to the amount of R25 000 per claim. The category of passengers excluded from making claims beyond R25 000 included passengers in taxis where the accident was found to be solely as a result of the driver's negligence, and claims made for motorcycle accidents. Such a cap on claims meant that some victims of road accidents benefited more than others.
In February 2011 the Constitutional Court, in the case of Mvumvu and Others v the Minister of Transport and Another, (CC 67/10) [2011] ZACC 1, concluded that section 18 of the principal Act was unconstitutional and invalid to the extent of being discriminatory. This related to the matter of compensation. The Minister of Transport supported this finding on the Road Accident Fund, and Parliament was identified as the body best suited to determine the extent of compensation.
The currently proposed Bill intends to eliminate discrimination against third parties by providing transitional measures for claims that were limited under the Road Accident Fund Act of 1996, before 1 August 2008. More specifically, clause 2(1) affords road accident victims the choice of electing to be subject to the old Act or the new Act if their cause of action arose prior to the Amendment Act coming into effect. Under the same clause, in paragraphs (c) and (d), the Act clearly states that claimants cannot claim double compensation from the fund. Paragraph (g) of the same clause asserts that claimants who resort to the fund are no longer entitled to sue the owner, the driver or the employer of the driver of the motor vehicle that caused the damages.
The process of the amendments to the Act unfolded as follows: The department introduced a draft Bill to Parliament's Portfolio Committee on Transport. The Bill was classified as a section 75 Bill. In July public hearings were held, individually and publicly, with different stakeholders. Consultations with different parties were held and all parties participated well in the process.
Subsequently, all political parties agreed to the Bill. Public comments were incorporated into the draft Bill, which was finalised and published in the Government Gazette of 15 August 2011.
The portfolio committee asks the House to approve the Bill, as it is not controversial. Thank you. [Applause.]
There was no debate.
Bill read a second time.
The House adjourned at 17:26.
________
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
THURSDAY, 23 AUGUST 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
CALLING OF JOINT SITTING OF PARLIAMENT
The Speaker of the National Assembly, Mr M V Sisulu, and the Chairperson of the National Council of Provinces, Mr M J Mahlangu, in terms of Joint Rule 7 (2), have called a joint sitting of the Houses of Parliament for Tuesday, 28 August 2012 at 10:00, for a debate to congratulate the SA Olympics Team for its performance at the 2012 Olympic Games.
M V SISULU MP M J MAHLANGU MP
SPEAKER OF THE CHAIRPERSON OF THE
NATIONAL ASSEMBLY NATIONAL COUNCIL OF
PROVINCES
National Assembly
The Speaker
1. Referral to Committees of papers tabled
(1) The following papers are referred to the Standing Committee on Finance:
(a) Government Notice No R445, published in Government Gazette No 35430, dated 8 June 2012: Amendment of Exchange Control Regulations in terms of section 9 of the Currency and Exchanges Act, 1933 (Act No 9 of 1933).
(b) Government Notice No R466, published in Government Gazette No 35450, dated 22 June 2012: Appointment of an authorised dealer in foreign exchange for the purpose of the Exchange Control Regulations.
(c) Government Notice No R487, published in Government Gazette No 35464, dated 29 June 2012: Amendment of Part 1 of Schedule No1 (No1/1/1442) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(d) Government Notice No R488, published in Government Gazette No 35464, dated 29 June 2012: Amendment of Part 2B of Schedule No.1 (No.1/2B/155) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(e) Government Notice No 499, published in Government Gazette No 35478, dated 29 June 2012: Transfers made from the Provincial and Municipal Disaster Grant, published in terms of section 25(6)(b) of the Division of Revenue Act, 2012 (Act No 5 of 2012).
(f) Government Notice No R506, published in Government Gazette No 35481, dated 6 July 2012: Amendment to Schedule 1 of the Value-Added Tax Act in terms of section 74(3)(a) of the Value-Added Tax Act, 1991 (Act No 91 of 1964).
(g) Government Notice No R507, published in Government Gazette No 35481, dated 6 July 2012: Amendment of Schedule No 4 (No 4/348) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(h) Government Notice No R508, published in Government Gazette No 35481, dated 6 July 2012: Amendment of Schedule No 4 (No 4/349) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(i) Government Notice No R509, published in Government Gazette No 35481, dated 6 July 2012: Amendment of Schedule No 4 (No 4/350) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(j) Government Notice No R534, published in Government Gazette No 35511, dated 13 July 2012: Imposition of provisional payments (PP/138) in relation to anti-dumping duties in terms of section 57A of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(k) Government Notice No R538, published in Government Gazette No 35516, dated 13 July 2012: Notice of exemption of normal tax in terms of section 10(1)(y) of the Income Tax Act, 1962 (Act No 58 of 1962).
(l) Government Notice No 556, published in Government Gazette No 35500, dated 13 July 2012: Draft Municipal Financial Misconduct Regulations, published for public comment in terms of section 169(1)(b) of the Local Government: Municipal Finance Management Act, 2003 (Act No 56 of 2003).
(m) Proposed Amendment of the Articles of Agreement of the International Monetary Fund on the Reform of the Executive Board, tabled in terms of section 231(3) of the Constitution, 1996.
(2) The following papers are referred to the Standing Committee on Finance for consideration and report. The report of the Independent Auditors on the Financial Statements and Performance Information is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the South African Reserve Bank for 2011-12, including the Report of the Independent Auditors on the Financial Statements for 2011-12.
(b) Annual Financial Statements of the Corporation for Public Deposits for the year ended 31 March 2012.
(3) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development for consideration and report:
(a) Report dated 30 July 2012 on the suspension from office of Magistrate L Myles, an additional magistrate in Upington, tabled in terms of section 13(4)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(b) Report dated 30 July 2012 on the withholding of remuneration of Magistrate M M Tyulu, an additional magistrate in Cape Town, tabled in terms of section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(c) Report dated 30 July 2012 on the suspension from office of Magistrate N Ndamase, an additional magistrate in Pretoria, tabled in terms of section 13(4)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).
(d) Strategic Plan of the Council for Debt Collectors for 2012.
(4) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development for consideration and to the Portfolio Committee on Police, Portfolio Committee on Correctional Services, Portfolio Committee on Social Development, Portfolio Committee on Basic Education and Portfolio Committee on Health:
(a) National Policy Framework on the Management of Matters Related to Sexual Offences, tabled in terms of section 62(2)(a) of the Criminal Law (Sexual Offences and Related Matters) Amendment Act, 2007 (Act No 32 of 2007).
(b) Consolidated Report on the Coordination and Implementation of Activities relating to the Implementation of the Criminal Law (Sexual Offences and Related Matters) Amendment Act, 2007 (Act No 32 of 2007) for January 2008 – December 2011, tabled in terms of section 65(3)(b) of the said Act.
(c) Second Report on the Implementation of the Child Justice Act, tabled in terms of section 96(3) of the Child Justice Act, 2008 (Act No 75 of 2008).
(5) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development:
(a) Interim Report of the Special Investigating Unit (SIU) for the period April 2011 to September 2011.
(b) Draft rules made in terms of section 25(1) of the Judicial Service Commission Act, 1994 (Act No 9 of 1994) to regulate procedures before Judicial Conduct Tribunals, tabled in terms of section 25(1)(c) of the Act.
(6) The following papers are referred to the Portfolio Committee on Public Enterprises for consideration and report. The reports of the Independent Auditors on the Financial Statements and Performance Information are referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of Transnet SOC Ltd (Volumes 1, 2 and 3) for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12.
(b) Report and Financial Statements of Denel SOC LTD for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12.
(c) Report and Financial Statements of Eskom Holdings Limited for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12.
(7) The following papers are referred to the Portfolio Committee on Tourism:
(a) Memorandum of Understanding (MOU) between the Government of the Republic of South Africa and the Government of the Republic of Ghana on cooperation in the Field of Tourism, tabled in terms of section 231(3) of the Constitution, 1996.
(b) Explanatory Memorandum to the Memorandum of Understanding (MOU) between the Government of the Republic of South Africa and the Government of the Republic of Ghana on cooperation in the Field of Tourism.
(c) Memorandum of Understanding (MOU) between the Government of the Republic of South Africa and the Government of the Republic of Zimbabwe on cooperation in the Field of Tourism, tabled in terms of section 231(3) of the Constitution, 1996.
(d) Explanatory Memorandum to the Memorandum of Understanding (MOU) between the Government of the Republic of South Africa and the Government of the Republic of Zimbabwe on cooperation in the Field of Tourism.
(e) Memorandum of Understanding (MOU) between the Government of the Republic of South Africa and the Government of the Kingdom of Lesotho on cooperation in the Field of Tourism, tabled in terms of section 231(3) of the Constitution, 1996.
(f) Explanatory Memorandum to the Memorandum of Understanding (MOU) between the Government of the Republic of South Africa and the Government of the Kingdom of Lesotho on cooperation in the Field of Tourism.
(8) The following paper is referred to the Portfolio Committee on Communications for consideration and report:
(a) Revised Strategic Plan and Corporate Plan of the South African Broadcasting Corporation for 2012-15.
(9) The following papers are referred to the Portfolio Committee on Water and Environmental Affairs for consideration and report:
(a) Agreement between the Government of the Republic of South Africa and the Government of the Kingdom of Lesotho on Phase II of the Lesotho Highlands Water Project, tabled in terms of section 231(2) of the Constitution of the Republic of South Africa, 1996.
(b) Explanatory Memorandum to the Agreement between the Government of the Republic of South Africa and the Government of the Kingdom of Lesotho on Phase II of the Lesotho Highlands Water Project.
(10) The following papers are referred to the Portfolio Committee on Trade and Industry:
(a) Government Notice No R450, published in Government Gazette No 35436, dated 15 June 2012: The introduction of the compulsory specification for live aqua‑cultured abalone (VC 9001) in terms of section 13(1)(a) of the National Regulator for Compulsory Specifications Act, 2008 (Act No 5 of 2008).
(b) General Notice No 548, published in Government Gazette No 35506, dated 9 July 2012: Correction Notice to Codes of Good Practice issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No 53 of 2003).
(11) The following paper is referred to the Portfolio Committee on Police for consideration and report and to the Portfolio Committee on Public Service and Administration:
(a) Consolidated Report of the Public Service Commission (PSC) on Inspections of Detective Services: Department of Police – September 2011 [RP273-2011].
(12) The following paper is referred to the Committee on Public Accounts for consideration and to the Portfolio Committee on Cooperative Governance and Traditional Affairs:
(a) Consolidated General Report of the Auditor-General on the Local Government Audit Outcomes for 2010-11 [RP216-2012].
(13) The following papers are referred to the Standing Committee on Finance for consideration and report and to the Portfolio Committee on Agriculture, Forestry and Fisheries. The Report of the Auditor-General on the Financial Statements is referred to the Committee on Public Accounts for consideration:
(a) Report and Financial Statements of the Land Bank for 2011-12, including the Report of the Auditor-General on the Consolidated Financial Statements of the Land and Agricultural Development Bank of South Africa (Land Bank) for 2011-12 [RP220-2012].
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Finance
(a) Government Notice No R. 565, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 1 (No 1/1/1443), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(b) Government Notice No R. 566, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 2 (No 2/344), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(c) Government Notice No R. 567, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 6 (No 6/27), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(d) Government Notice No R. 568, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 6 (No 6/28), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(e) Government Notice No R. 569, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 6 (No 6/29), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(f) Government Notice No R. 597, published in Government Gazette No 35553, dated 3 August 2012: Amendment of Schedule No 1 (No 1/1/1445), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(g) Government Notice No R. 605, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Schedule No 1 (No 1/1/1444), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(h) Government Notice No R. 606, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Schedule No 1 (No 1/2A/154), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(i) Government Notice No R. 607, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Schedule No 1 (No 1/2B/156), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(j) Government Notice No R. 608, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Schedule No 3 (No 3/1/683), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(k) Government Notice No R. 609, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Schedule No 3 (No 3/1/684), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(l) Government Notice No R. 620, published in Government Gazette No 35573, dated 10 August 2012: Amendment of Rules (DAR/105), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
2. The Minister of Justice and Constitutional Development
(a) Second Report on the Intersectoral Implementation of the Child Justice Act, tabled in terms of section 96(3) of the Child Justice Act, 2008 (Act No 75 of 2008) April 2011 – March 2012.
MONDAY, 27 AUGUST 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Draft Bills submitted in terms of Joint Rule 159
(1) Broad-Based Black Economic Empowerment Amendment Bill, 2012, submitted by the Minister of Trade and Industry.
(2) Special Economic Zones Bill, 2012, submitted by the Minister of Trade and Industry.
Referred to the Portfolio Committee on Trade and Industry and the Select Committee on Trade and International Relations.
TABLINGS
National Assembly and National Council of Provinces
1. The Minister of Water and Environmental Affairs
(a) Acceptance of the Amendment of Annexure B of the Kyoto Protocol to the United Nations Framework Convention on Climate Change, tabled in terms of section 231(2) of the Constitution, 1996.
(b) Explanatory Memorandum on the Acceptance of the Amendment of Annexure B of the Kyoto Protocol to the United Nations Framework Convention on Climate Change.
(c) The Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization to the Convention on Biological Diversity, tabled in terms of section 231(2) of the Constitution, 1996.
(d) Explanatory Memorandum to the Ratification of the Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization to the Convention on Biological Diversity.
(e) The African Convention on the Conservation of Nature and Natural Resources (Algiers Convention – 2003), tabled in terms of section 231(2) of the Constitution, 1996.
(f) Explanatory Memorandum to the African Convention on the Conservation of Nature and Natural Resources.
TUESDAY, 28 AUGUST 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Bills passed by Houses – to be submitted to President for assent
(1) Bills passed by National Council of Provinces on 28 August 2012:
(a) South African Police Service Amendment Bill [B 7B – 2012] (National Assembly – sec 75).
TABLINGS
National Assembly and National Council of Provinces
1. The Speaker and the Chairperson
(a) Draft notice and schedule determining the rate, with effect from 1 April 2012, at which salaries, allowances and benefits are payable to Constitutional Court Judges and Judges annually, for approval by Parliament in terms of section 2(4) of the Judges' Remuneration and Conditions of Employment Act, 2001 (Act No 47 of 2001).
(b) Draft notice and schedule determining the rate, with effect from 1 April 2012, at which salaries, allowances and benefits are payable to magistrates annually, for approval by Parliament in terms of section 12(3) of the Magistrates Act, 1993 (Act No 90 of 1993).
Referred to the Portfolio Committee on Justice and Constitutional Development and the Select Committee on Security and Constitutional Development for consideration and report.
2. The Minister of Trade and Industry
(a) Report and Financial Statements of the Support Programme for Industrial Innovation (SPII) for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12.
(b) Report and Financial Statements of the Technology and Human Resources for Industry Programme (THRIP) for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12.
(c) Report and Financial Statements of the South African Council for the Non-Proliferation of Weapons of Mass destruction for the period April 2011 to 31 March 2012.
(d) Report and Financial Statements of the National Gambling Board for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12 [RP 245-2012].
(e) Report and Financial Statements of the National Lotteries Board for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12 and the Report and Financial Statements of the National Lottery Distribution Trust Fund for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information of the Distribution Trust Fund for 2011-12.
(f) Report and Financial Statements of the National Credit Regulator (NCR) for 2011-12 [RP 300-2012].
(g) Report and Financial Statements of the National Consumer Tribunal for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12.
(h) Report and Financial Statements of the Companies and Intellectual Property Commission (CIPC) for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12 [RP 169-2012].
(i) Report and Financial Statements of the National Metrology Institute of South Africa for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12 [RP 270-2012].
(j) Report and Financial Statements of the South African National Accreditation System (SANAS) for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12 [RP 244-2012].
(k) Report and Financial Statements of South African Bureau of Standards SOC (SABS) for 2011-12, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2011-12 [RP 230-2012].
(l) Report and Financial Statements of Export Credit Insurance Corporation SOC Limited of South Africa for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12.
(m) Report and Financial Statements of the National Empowerment Fund for 2011-12, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2011-12 [RP 140-2011].
National Assembly
1. The Speaker
(a) The President of the Republic submitted the following letter dated 13 August 2012 to the Speaker: National Assembly, informing Members of the Assembly of the extension of the employment of members of the South African National Defence Force for service in fulfilment of the international obligations of the Republic of South Africa towards the Democratic Republic of Congo.
EXTENSION OF THE EMPLOYMENT OF MEMBERS OF THE SOUTH AFRICAN NATIONAL DEFENCE FORCE FOR service in fulfilment of the international obligations of the Republic of South Africa towards the democratic Republic of Congo
This serves to inform the National Assembly that I have extended the employment of Eleven (11) South African National Defence Force (SANDF) personnel to the Democratic Republic of Congo (DRC) in fulfilment of the international obligations of the Republic of South Africa towards the DRC to assist with the capacity building of the DRC Defence Force (FARDC).
This employment is authorised in accordance with the provisions of section 201(2)(c) of the Constitution of the Republic of South Africa, 1996.
The extension of the employment of the SANDF is for the period 01 April 2012 to 31 March 2013.
I will communicate this report to members of the National Council of Provinces and wish to request that you bring the contents hereof to the attention of the National Assembly.
Regards
signed
Mr Jacob Gedleyihlekisa Zuma
President of the Republic of South Africa
COMMITTEE REPORTS
National Assembly
1. Progress report of the Portfolio Committee on Communications on the process followed on recommending persons to be appointed to serve on the Independent Communications Authority of South Africa (ICASA) Council, dated 28 August 2012
The Portfolio Committee on Communications, having considered the nominations of candidates submitted for appointment to serve on the ICASA Council in terms of the ICASA Act, No 13 of 2000 (as amended by the Broadcasting Amendment Act, No 64 of 2002) reports as follows:
A request from the Minister of Communications, Ms D Pule, to fill three vacancies on the ICASA Council was referred to the Portfolio Committee on Communications on 16 May 2012 (see ATC dated 16 May 2012). The Committee advertised calling for nominations to fill the vacancies.
The Committee received 39 CVs and agreed to shortlist the following 15 candidates:
Mr Tinyiko Norman Baloyi
Ms Nomvuyiso Batyi
Mr Khulile Boqwana
Ms Nomonde Gongxeka
Ms Josephine Kwena Mabotja
Mr Thabo Makhakhe
Mr Manyara Rubben Mohlaloga
Ms Botlenyana Mokhele
Mr Mpho Mosimane
Mr Phatang Nkhereanye
Ms Nomveliso Ntanjana
Mr Ashraf Patel
Ms Katharina Gloria Shirley Pillay
Mr Ronald Jarvie Seeber
Mr Aaron Tshidzumba
The interviews will take place on 5, 6 and 7 September 2012.
2. Progress report of the Portfolio Committee on Communications on the process followed on recommending a person to be appointed to serve on the South African Broadcasting Corporation (SABC) Board dated, 28 August 2012
The Portfolio Committee on Communications, having considered the nominations of candidates submitted for appointment to serve on the SABC Board in terms of the Broadcasting Act, No 4 of 1999, reports as follows:
A request from the President of the Republic, Mr JG Zuma, to fill a vacancy on the SABC Board was referred to the Portfolio Committee on Communications on 7 May 2012 (see ATC dated 7 May 2012). The Committee advertised calling for nominations to fill the vacancy.
The Committee received 38 CVs and agreed to shortlist the following six candidates:
Mr Tinyiko Norman Baloyi
Mr Gabriel Lucky Bokaba
Mr Mzimkhulu Bongani Caga
Ms Noluthando Primrose Gosa
Mr Aaron Tshidzumba
Mr Johannes Collin Weapond
The interviews are scheduled to take place on 4 September 2012.
WEDNESDAY, 29 AUGUST 2012
ANNOUNCEMENTS
National Assembly and National Council of Provinces
The Speaker and the Chairperson
1. Draft Bills submitted in terms of Joint Rule 159
(1) Commission for Gender Equality Amendment Bill, 2012, submitted by the Minister of Women, Children and People with Disabilities.
Referred to the Portfolio Committee on Women, Children and People with Disabilities and the Select Committee on Women, Children and People with Disabilities.
National Assembly
The Speaker
1. Referral to Committees of papers tabled
(1) The following papers are referred to the Standing Committee on Finance:
(a) Government Notice No R565, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1443) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(b) Government Notice No R566, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Part 1 of Schedule No 2 (No 2/344) in terms of section 56 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(c) Government Notice No R567, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 6 (No 6/27) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(d) Government Notice No R568, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 6 (No 6/28) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(e) Government Notice No R569, published in Government Gazette No 35536, dated 27 July 2012: Amendment of Schedule No 6 (No 6/29) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(f) Government Notice No R597, published in Government Gazette No 35553, dated 3 August 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1445) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(g) Government Notice No R605, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Part 1 of Schedule No 1 (No 1/1/1444) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(h) Government Notice No R606, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Part 2A of Schedule No 1 (No 1/2A/154) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(i) Government Notice No R607, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Part 2B of Schedule No 1 (No 1/2B/156) in terms of section 48 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(j) Government Notice No R608, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Part 1 of Schedule No 3 (No 3/1/683) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(k) Government Notice No R609, published in Government Gazette No 35562, dated 3 August 2012: Amendment of Part 1 of Schedule No 3 (No 3/1/684) in terms of section 75 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(l) Government Notice No R620, published in Government Gazette No 35573, dated 10 August 2012: Amendment of Rules (DAR/105) in terms sections 76 and 120 of the Customs and Excise Act, 1964 (Act No 91 of 1964).
(2) The following papers are referred to the Portfolio Committee on Justice and Constitutional Development for consideration and to the Portfolio Committee on Police, Portfolio Committee on Correctional Services, Portfolio Committee on Social Development, Portfolio Committee on Basic Education and Portfolio Committee on Health:
(a) Second Report on the Intersectoral Implementation of the Child Justice Act, tabled in terms of section 96(3) of the Child Justice Act, 2008 (Act No 75 of 2008), April 2011 – March 2012.
(3) The following papers are referred to the Portfolio Committee on Trade and Industry:
(a) General Notice No 576, published in Government Gazette No 35529, dated 19 July 2012: Department of Trade and Industry: Final prohibition on the use of Construction Industry Development Board Logo, published in terms of section 15(1)(b) of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
(b) General Notice No 578, published in Government Gazette No 35531, dated 19 July 2012: Department of Trade and Industry: Final prohibition on the use of Fais Ombud Logo, published in terms of section 15(1)(b) of the Merchandise Marks Act, 1941 (Act No 17 of 1941).
COMMITTEE REPORTS
National Assembly
1. REPORT OF THE PORTFOLIO COMMITTEE ON DEFENCE AND MILITARY VETERANS ON THE JOINT WORKSHOP OF JOINT STANDING COMMITTEE ON DEFENCE AND THE PORTFOLIO COMMITTEE ON DEFENCE AND MILITARY VETERANS HELD IN ARNISTON ON SATURDAY, 19 MAY 2012, DATED 22 AUGUST 2012
1. INTRODUCTION
The joint workshop formed part of the revised Committee Programme which was considered in a Joint Standing Committee on Defence (JSCD) committee meeting. It was decided that such a session should be held jointly with the Portfolio Committee on Defence and Military Veterans (PCODMV) in order for the two defence committees to agree on their focus areas and working relationship. This would avoid duplication and improve oversight over the Department of Defence and Military Veterans, as well as the related Defence structures, such as the SANDF, the Defence Service Commission, the Military Ombud and the Defence Industry.
Delegation:
Mr MS Motimele (PCODMV Chairperson - ANC), Mr JJ Maake (JSCD Co-Chairperson - ANC); Mr SD Montsitsi (JSCD Co-Chairperson - ANC), Ms NR Mabedla (ANC); Ms PN Daniels (ANC); Mr AM Maziya (ANC); Mr EM Mlambo (ANC); and Ms MC Dikgale (ANC).
Apologies:
JSCD: Mr NB Fihla(ANC); Ms MV Mafolo(ANC); Mr TMH Mofokeng(ANC); Mr MC Maine(ANC); Mr LPM Nzimande(ANC); Mr DV Bloem (COPE); Prince MM Zulu (IFP); Mr VM Manzini (DA) andMr D Joseph (DA).
PCODMV: Mr N Diale (ANC); Ms HC Mgabadeli (ANC); Mr A Mlangeni (ANC); Mr M Nhanha (COPE); Mr M Mncwango (IFP); Mr P Groenewald (FF+); Mr LM Mphahlele (PAC); Mr DJ Maynier (DA) and Mr S Esau (DA).
Officials in attendance:
Dr Sam Gulube (Secretary for Defence – DoDMV); Siphiwe Dlamini ( Head of Communications – DoDMV; Prof Lindy Heinecken (Facilitator –Stellenbosch University); Mr Barry Wheeler (Corporate Executive – Auditor General); Mr Musa Hlongwane (Business Executive – Auditor General); Mr Banie Engelbrecht ( Chief Director Budget Management – DoD); Mr M Cocks (DoD:Office of the CFO); Mr P Ramsee (DoD:Office of the CFO); Ms Marina Nel ( Senior Procedural Officer – NA Table); Mr Thabiso Ratsomo (Chief Director – DODMV); Ms Thabo Gigaba ( PLO – Ministry DODMV); Ms Swazi Taitai ( Director: PLO DOD); Mr Modise Kabeli ( Communication – Parliament); Ms Nareema Kelly ( Study Group Sec – PC & JSCD); Ms B Madikane (Com Sec – JSCD); Ms T Majone (Com Assistant); Mr E Bazier (Com Assistant), and Mr P Daniels (acting JSCD Researcher).
2. TERMS OF REFERENCE
The workshop was focused on enhancing Committee members' capacity in exercising oversight over both the Ministry of Defence and Military Veterans and the Department of Defence and Military Veterans. As part of its oversight role, the Joint Standing Committee on Defence has been mandated to investigate and make recommendations on defence-related issues. The workshop was aimed at giving members an opportunity to strategise and plan on how to fulfil their mandate and, in the process, improve on oversight over the Department.
It was decided that such a session should be held jointly with the Portfolio Committee on Defence and Military Veterans in order for the two defence committees to agree on focus areas and their working relationship. This would not only avoid duplication of work, but also enhance the oversight responsibility of these defence committees over the Department and related defence structures.
This exercise would assist members in overseeing the implementation of legislation, the monitoring and evaluation of spending, the functioning of the Department, and especially the management of transformation.
3. OVERVIEW OF THE WORKSHOP ACTIVITIES
The Parliamentary defence committees received presentations on the roles of the defence committees; the 2012 Programme covering matters relevant to the defence committees, including the State of the Nation Address and matters arising from it; the relationship between the defence committees and media; mid-term performance and focus areas for 2012 – 2014; the budget process; financial and audit information in the Annual Report ; interpreting strategic plans; and the Budgetary Review and Recommendation process.
4. COMMITTEE OBSERVATIONS AND RECOMMENDATIONS
4.1 Roles of the Defence Committees (JSCD & PCODMV)
Section 228 of the Interim Constitution (1993) stipulates the functions of the Joint Standing Committee on Defence as follows: to investigate and make recommendations regarding the SA National Defence Force's budget, functioning, organisation, armaments policy, morale and state of preparedness; perform any functions relating to parliamentary supervision of the SANDF as may be prescribed by law; consider quarterly and annual reports submitted by the National Conventional Arms Control Committee (NCACC); consider and report on the employment of the SANDF; report to the Houses on any matter referred to it, and report to the House on its activities at least once a year.
Joint Rule 201 gives similar powers to the Portfolio Committee, namely to monitor, investigate, enquire into and make recommendations concerning any such executive organ of state, constitutional institution or other body or institution, including the legislative programme, budget, rationalisation, restructuring, functioning, organisation, structure, staff and policies of such organ of state, etc., as well as processing legislation.
The proposed recommendation was to redefine the roles and responsibilities of the two defence committees to ensure optimal synchronisation and to avoid duplication, or to repeal section 228(3) (d) of the interim Constitution.
4.2 Membership
The presentation pointed out that the JSCD was established in terms of section 228 (3) of the Interim Constitution (1993) and Joint Rule 120A. Membership (JR 120B), is determined by section 228 (3) of the Interim Constitution read with item 24 (1) of Schedule 6 to the Constitution, which states that it is equal to the number obtained by dividing by 10 the total number of seats held in the National Assembly by all parties holding more than 10 seats. The appointment of co-chairpersons is also dealt with (JR 120C).
However, Joint Rule 120B prescribes a particular formula that, in the 4th Parliament, has brought the membership of the JSCD to 37. This scenario affects decision-making due to the fact that JSCD meetings often lack a quorum. The size of the committee also makes it difficult to manage and to reach decisions.
4.3 Letters from the President
Sec 228(5) of the Interim Constitution stipulates that Parliament may, by resolution, terminate any employment (of the SANDF), but that such termination shall not affect the validity of anything done in terms of such employment up to the date of such termination.
The Committee received letters very late and was thus never in a position to exercise the powers granted by sec 228(5) of the Interim Constitution.
The proposed recommendation was to report the delays to the Speaker, who should take it up with the Leader of Government Business.
4.4 Closed meetings
The Rules of Parliament can be used to close meetings, to close certain parts of meetings and/or to close meetings to the public and media.
Members of Parliament have however taken an oath which forbids them to divulge confidential information and to respect the Rules of Parliament. Non-compliance leads to possible disciplinary action being taken.
The discussion on these issues revealed that members felt that the sanction provided for in the case of non-compliance, was not sufficient. The Rule on divulging information as discussed in closed meetings, should therefore be revised
The Rules of Parliament should be not only be strengthened in this regard, but there should also be a revision of the sanction of "docking" one month's salary from the relevant MP.
4.5 Vetting
Vetting was seen as another option to ensure information security. The Joint Rules make no provision for vetting of members and support staff, as is the case with the JSC on Intelligence
The NA Table staff advised that the Rules were sufficient to protect confidential information. The matter should be revisited and Parliament should decide on whether it was necessary for members and staff supporting the JSCD to be vetted.
4.6 Oversight
The two Defence committees share members. Joint oversight activities are therefore recommended to cover issues of interest to both the JSCD and PCODMV. The challenge is that the programmes of the NA and NCOP are not synchronised, and this complicates the management of joint oversight visits
This could be resolved by drafting oversight programmes jointly to avoid clashes.
4.7 Time-slot
The slot on Thursday mornings for two hours is insufficient to cover committee activities, and more time is required to engage properly with presentations.
The 08h00 slot often leads to members being late and the Committee not quorating to enable decision-making.
The proposed recommendation was that the JSCD should investigate alternative slots to be able to exercise its mandate effectively.
4.8 Media: Committee support
The Parliamentary Communication Services: Committees Communication Support made a presentation to indicate how it supports committees by producing articles for committees on oversight visits and public hearings. It also advises if there is a need to report a particular incident that relates to the committee as a whole, rather than to a political party.
This unit markets the Committee to the public through newspapers, other publications and the radio, but, due to limited staff, it is not able to allocate dedicated staff to committees.
The meeting expressed the view that the Defence committees believe that the media section is able to assist in formulating media/press statements to prevent misinterpretation and/or to clarify issues.
4.9 Planning, budgeting and reporting cycle within the Department (DoDMV)
Officials from the Department reported that the DoD's planning, budgeting and reporting cycle had been aligned to the National Treasury Framework for strategic plans and the National Treasury Regulations, in order to meet statutory timelines. It was also informed by the January lekgotla, SONA, the National Budget Speech, the Cabinet lekgotla in July, the MTEF, and Auditor-General's opinion.
4.10 Assessing financial and audit information
The representatives from the Auditor-General's office advised members on areas they should focus on when doing oversight. Parliament should keep management accountable and determine whether the Department was complying with responsibilities as set out in the PFMA. They should check if there was compliance with Parliament's appropriation; whether resources were utilised effectively and efficiently; and review the annual report of the Department, including the audit report; as well as holding regular meetings with the audit steering committee.
The advice was to evaluate monthly and quarterly reports and to rectify them before they were pronounced upon by the Auditor-General.
5. Based on the above, the following proposals were made to deal with
challenges noted:
· The proposal for a "new" defence committee by the Defence Review Committee should be taken into consideration, as it would have major implications for both defence committees
· The Committee's composition can only be changed by a decision of the Joint Rules Committee. This amendment should take into account section 228(3) of the interim Constitution, 1993, which deals with the composition of the JSCD.
· The overlapping of activities could be addressed by redefining the roles and responsibilities of the two defence committees to ensure optimal synchronisation and to avoid duplication.
6. RECOMMENDATIONS
To eliminate duplication, it is recommended that possible new mandates be defined as follows:
Joint Standing Committee on Defence
· The JSCD should consider and report on the employment of the SANDF in fulfilment of international obligations or in defence of the country. It should make recommendations to the House on a declaration of a state of defence by the President.
· It should investigate and make recommendations on all reports submitted to Parliament by the NCACC, including quarterly and annual reports.
· It should conduct a strategic overview of the SANDF with reference to transformation, integration, equity, morale and combat-readiness. The overview should be conducted and recommendations submitted mid-term in the life of a particular Parliament, and a final report should be submitted at the end of the life of that Parliament on the implementation of recommendations contained in the mid-term overview.
· It should liaise and report on civil-military relations.
· It should exercise oversight over and make recommendations on matters pertaining to military veterans.
· It should report to both Houses on any matter referred to it, or in terms of statutes.
· It should report on its activities at least once a year to the two Houses.
Portfolio Committee on Defence and Military Veterans
· The PCODMV should exercise oversight over the Department of Defence and defence-related entities, including the Defence Force Service Commission.
· It should process all defence-related legislation.
· It should exercise oversight over the budget, strategic plan and annual report of the DOD and the Department of Military Veterans.
· It should exercise oversight over the strategic plans and annual reports of all defence-related entities.
· It should exercise oversight over the rationalisation, restructuring, functioning, organisation, structure, staff and policies of the Department.
· It should report on any tasks assigned to it by the House and in terms of statutes.
· It should report on its activities at least once a year to the House.
7. RESOLUTION
Having considered the challenges, both committees proposed that the Chairperson of the PCODMV and the co-Chairpersons of the JSCD should write to the Speaker and the Chairperson (NCOP) respectively to propose amendments to the relevant Rules of Parliament, especially those pertaining to the membership of JSCD for this Fourth Parliament.
Report to be considered
2. Report of the Portfolio Committee on Public Enterprises on the oversight visit to state-owned companies, dated 28 August 2012
1. Introduction
The Portfolio Committee on Public Enterprises (the committee) undertook an oversight visit to Eskom's power stations, namely Duvha, Medupi, Kusile (the latter two still under construction). This included an oversight visit to the South African Express Airways (SAX) offices in Johannesburg as well as a briefing by the board of trustees of the Transnet Second Defined Benefit Fund and the Transnet Pension Fund. The visit took place from 5th to 8th of June 2012.
The main purpose of the visit was to assess the progress made in the construction of the two power stations, Kusile and Medupi. This included an assessment of the impact the construction has on the immediate communities around the power stations. Key focus areas included job creation, skills development, promotion of local businesses and localisation.
Furthermore the committee's visit was aimed at interacting with the board of directors of South African Express Airways in order to understand the challenges facing the company and the progress made so far in improving the situation, especially the incident of the withdrawal of the entity's financial statements, and weak internal controls among other challenges.
1.1 Delegation
The committee delegation included the following members: Mr Peter Maluleka (Chairperson of the Committee, ANC), Mr C Gololo (ANC), Dr GW Koornhof (ANC), Miss C September (ANC), Hon GM Borman (ANC), Mr A Mokoena (ANC), Mr R Sonto (ANC), Ms N Michael (DA), Mr E Marais (DA) and Mr J Dikobo (Azapo). The delegation was accompanied by the following parliamentary officials: Mr D Mocumi (Committee Secretary), Mr G Mankay (Committee Assistant) and Mr E Boskati (Researcher).
2. Visit to Medupi power station (Lephalale)
The Portfolio Committee was welcomed by Eskom's Project Manager, and in his welcoming address he conveyed the apologies of the Group Chief Executive Officer, Mr Brian Dames. Among those who welcomed the Portfolio Committee was the Mayor of Lephalale, traditional leaders from the region, representatives of local businesses and organised labour.
2.1 Overview of the Medupi project
The Committee was informed that the construction of the Medupi power station was on track, and that the project was within schedule. It will be completed in December 2013. Coal supply for the power station will be supplied by Exxaro. Medupi has a capacity of storing about 2 million tonnes of coal that could last for 40 days.
2.2 Interaction with stakeholders
The interaction with stakeholders revealed a lack of communication from the side of Eskom to all the stakeholders. Stakeholders (Mayor, Traditional Leaders and the business community) complained about the non involvement of their communities, whilst the local business community pointed out that they were not benefitting from the construction of the power station, as it is mainly big companies who are involved.
2.2.1 Job creation and skills development
All stakeholders raised concerns regarding the conditions of employment at Medupi power station. These included, subcontractors not adhering to labour legislation, workers being given rotten food, importation of foreign labour, and lack of employment for local young people. The Community was concerned that there was not enough done to ensure that subcontractors transfer skills to the local workers and majority of the local workers were employed as unskilled labour in the project. Contractors were using labour brokers and not paying decent wages. Eskom informed the Committee that 90% of workers were from South Africa and 48% were from within 70km radius of the Lephalale area. Hitachi and Siemens have invested in local training colleges in order to produce the required skills for the project. The challenge remained the shortage of welders, as the project required 55 000 specialist welders.
2.2.2 Promotion of local small and medium businesses
Eskom informed the Committee that 64% of the R51bn was spent locally. There was a project labour agreement with the contractors which made provision for a bargaining council between labourers and contractors. There were clear conditions on the contracts with companies with regard to localisation. The contractors were responsible for the working conditions and grievances of workers as per the project labour agreement.
Representatives of local business complained that contractors such as Murray & Roberts were frustrating local businesses and subcontractors were not paid on time. There were no concrete programmes for supplier and enterprise development and support for emerging local businesses. There were 38 contractors on site, and out of eleven sectors, only one contract of catering was awarded to the local community.
2.2.3 Community involvement and development
Traditional leaders raised concerns that Eskom had promised in 2009 to assist by way of investing in education, health, housing and the refurbishing of community halls, but that has not been done. The municipality also raised concerns that the community was frustrated because they were left out of the project, and that the project had no meaningful spin offs and impact in their lives.
Eskom had opened 6 Central Information Management Offices around Lephalale, where information regarding developmental and business opportunities is distributed. There was decent housing provided to 4 workers per communal unit. The community however raised concern regarding corrupt activities involving employees who worked in the centres, that they sold employment to rural youth for R1500. Four workers have since been dismissed for corrupt behaviour.
2.3 Conclusions and Recommendations
The Committee resolved that: (1) Eskom should not give contracts to companies that do not adhere to labour legislation and treat workers as sub-human beings. It was ultimately responsible for the workers employed by the contractors, because Eskom is the custodian of the project. (2) Eskom should improve the participation and empowerment of women and people with disabilities. (3) Eskom should expand its skills development to professions which are needed by society such as doctors, social workers, and not only skills for the economic market.
It further recommended that Eskom should convene a stakeholder forum with representatives of local business, organised labour and the local authority and develop a joint proposal on how to respond to the concerns of the community and workers. A report should be forwarded to the Portfolio committee within 3 months after the tabling of this report in Parliament. Eskom should review the project labour agreement as the interpretation was not clear to the parties concerned. The communication strategy of Eskom and its interface with the community should be improved.
3. Visit to Kusile power station
At Kusile power station the Portfolio Committee was welcomed by the General Manager for corporate Affairs, Mr Chose Choeu and The Group CEO, Mr Brian Dames. The Committee met with the representatives from the Mayoral Committee, the provincial Department of Economic Development, members of the community as well as representatives of local businesses and organised labour.
3.1 Overview of Kusile project
The construction of Kusile started in April 2008, and it was 20% complete and the Committee was informed that the project was within schedule. There were 90 contractors on site and Eskom constructed the road that link to the N4 road to create access to the plant. There had only been 3 fatalities since the beginning of the project. Coal will be supplied by Anglo Coal, and the conveyer belts will only be commissioned once the project was complete. The Committee was assured that there were systems in place to ensure that the cost of the project would not escalate.
3.2 Interaction with stakeholders
The Committee engaged with all stakeholders to find out whether the construction of the power station was yielding the expected results and had the expected impact on communities. There were forums in place to ensure public participation but that was not enough as challenges of consultation were raised by all stakeholders.
3.2.1 Job creation and skills development
Organised labour raised concerns regarding poor communication from the managers and lack of consultation on issues affecting workers. Contractors were not adhering to labour legislation and that there was a need to train workers on their rights and contractors on their social obligations in terms of the labour agreement. A high number of young people have been dismissed for ill discipline because of lack of induction and orientation on the code of conduct. The Municipality commended Eskom for employing the people of Emalahleni but concern was raised regarding lack of benefits for the people of Delmas.
Eskom has ensured that there are employment contracts in place with all contractors and that there were labour relations specialists on site for any labour disputes. Furthermore, there were programmes in place to ensure that there was skills transfer taking place and training and bursaries were afforded to young people in the area to ensure the supply of required skills to sustain the power station upon completion.
3.2.2 Promotion of local small and medium businesses
Eskom has a partnership with the University of Limpopo to host the contractors academy. It has developed a database of all local businesses that have benefited from the project and has tried to customise tenders to advantage local business.
The provincial Department of Economic Development informed the committee that they had a good relationship with Eskom and received regular reports on progress regarding economic development. They commended Eskom for the supplier development programme and for the workshops that have been held to create awareness regarding the opportunities that existed for the broader community.
Local business admitted that they were not ready for the construction and the opportunities. They raised concern regarding the Construction Industry Development Board grading, and said that it disadvantaged local businesses from getting tenders. There was no support for women who are in business and proposed that the training for women in engineering business should increase significantly.
3.2.3 Community involvement and development
For the construction of the power station, Eskom bought a farm and relocated 18 families. The construction of the power station had revived economic activities in the community and has brought stability. The community appreciated the efforts by Eskom to reach out and create awareness, and believed that more could be done to capacitate young people with skills and support to businesses.
3.3 Conclusions and Recommendations
The Committee resolved that:
(1) Eskom should convene a stakeholder forum that will comprise of all concerned parties and should develop a joint proposal on how to address the concerns raised by the community.
(2) Eskom should ensure that the subcontractors are paid on time and are given the necessary support and training.
(3) Eskom should ensure that all contractors have corporate social investment projects especially in education and health.
4 Visit to Duvha power station
The delegation of Eskom was led by the General Manager for Corporate Affairs, Mr Chose Choeu and Mr Christo Van Niekerk, Senior General Manager for Generation Division. The Committee only met with organised labour, and was informed that because the power station was in the same municipality with Kusile, stakeholders did not attend the session at Duvha. The Committee also undertook a site tour of the power station to familiarise itself with the plant and the conditions of workers.
4.1 Overview of Duvha power station
The power station was commissioned between November 1975 and February 1984, and planned to operate until 2044. There were currently 26 units in the maintenance backlog and the target was to eliminate backlog by end 2013. Eskom was using open cycle gas turbines (OCGT) designed as peaking power and emergency reserves. They are diesel-fired and cost 10-15 times much more than coal-fired stations. OCGT usage has increased in 2011 and 2012 in order to create space for maintenance.
4.2 Briefing on accident (explosion of Turbo Generator)
The committee was briefed on the incident that took place on 9 February 2011, where the Unit 4 turbo generator at Duvha Power Station destructed during an annual statutory overspeed test. The purpose of the test was to check the integrity of the mechanical trip mechanism which should shut off the steam supply and prevent the turbine exceeding its safe speed limit. The mechanical trip mechanism failed to operate during the test. The electro-hydraulic governor failed to impose the safe speed limit. Due to the rapid acceleration rate allowed by the modification, the operators only had seconds in which to activate the emergency push buttons near the front pedestal and in the control room when the turbine exceeded 3 500 rpm. The unit destructed at about 4 100 rpm. Large parts of the machine such as bearing pedestals, shaft couplings and turbine blades were ejected. There were no physical injuries to staff. A fire broke out in the area between the intermediate pressure (IP) cylinder and the front pedestal, but it was effectively dealt with.
An investigation was conducted and the findings showed that the direct cause of the incident was attributed to an operating error, in that the operator did not follow the set procedure while undertaking the physical overspeed test. The investigation was conducted jointly with the insurance company, and the claim was R1.9bn, however the report was presented to all but was the property of the insurance company.
4.3 Interaction with organised labour
The Committee interacted with the union representatives, and these were the findings of the Committee:
4.3.1 Job creation and skills development
Organised labour informed the Committee that the contractors on site were exploiting workers and were not complying with labour legislation especially their contribution to the Unemployment Insurance Fund. There were no mechanisms in place to monitor the performance of contractors, no support was given to workers who got injured on duty. Money was deducted from employees salaries for protective clothing.
There were no training opportunities for the employees of Duvha power stations, and no skills transfer was taking place at the construction of unit 4. Instead pensioners were recycled to come and work as consultants in the company. Training that was conducted on site was not accredited and was not relevant. Labour raised concerns regarding the salary parities among workers and the absence of a performance management and appraisal system. There were no skills development and job creation initiatives to improve the lives of the adjacent communities.
4.3.2 Community involvement and development
There was lack of investment in the community and the furniture that was replaced by Eskom was not donated to organisations within the community. Concern was raised that Eskom has failed to uplift the community through recreation, education and skills development. The Committee raised concern with regard to the appalling conditions of the community, especially the state of houses.
Eskom informed the Committee that it could not invest in the adjacent community because the land adjacent to the plant which the community occupied was the property of Anglo American and there were discussions underway with the local municipality to develop the area.
4.4 Conclusions and Recommendations
The committee recommended that:
(1) Eskom should convene a stakeholder forum with representatives of local business, organised labour and the local authority and develop a joint proposal on how to respond to the concerns of the community and workers. A report should be forwarded to the Portfolio Committee within 3 months after the tabling of this report in Parliament.
(2) The committee further recommended that Eskom should develop a corporate social investment to address the issues of education, skills development and housing with the local authorities, labour and local businesses.
(3) It should make an effort to develop and support local suppliers in order to improve the local economy of the area.
5. Visit to South African Express Airways
The committee was welcomed by the Chairperson of the Board and the chief executive officer, Mr Inathi Ntshanga. The committee interacted with the employees of SAX and the customers at OR Tambo International Airport to establish the challenges facing the company and how the company could improve its customer service. The committee also visited the Denel Training Academy where SAX was conducting its skills development initiatives.
5.1 Interaction with staff
The Committee visited employees working at the counters at OR Tambo International Airport and they highlighted the following challenges: communication problem between frontline staff and the boarding gates, cancellation of flights and delays, overbooking of flights, lack of security for frontline staff (counters), change of sizes of carriers by flight controllers causing challenges to accommodate booked passengers. The customers raised concern regarding flight delays and cancellations, but were happy with the service etiquette of the employees.
5.2 Observations of the Committee
The Committee noted with concern that there was lack of support given to the employees, and that they were working under difficult conditions. They were not empowered with enough information to handle queries and frustrations of customers. The employees were very motivated and showed commitment and loyalty to the company.
5.3 Meeting with the board of directors
The Chairperson of the board, Ms Boyle, apologised for the board members who could not make it to the meeting. In the briefing she highlighted the following:
· There has been no change in the status quo of the 2010/11 financial statements, and the reconstruction thereof was still underway.
· Reassured the Committee that all the problems facing the entity were not related to fraud and corruption, but related to human oversight.
· The Company had appointed Sizwe Ntsaluba Gobodo and KPMG as external auditors, and it has reviewed the structure of the organisation and addressed the skills requirement. There were new control systems that have been introduced including, a new formula used to audit assets in order to prevent over-valuation or over-statement.
· Both internal and external auditors have given the audit committee assurance in writing that all internal controls were in place.
· In response to the problem of flight delays, she informed the Committee that the company had two aircrafts that were broken and the cleaning of aircrafts were the main reasons the company experienced flight delays.
In conclusion, the chairperson of the board told the Committee that the forensic report has been completed and has been submitted to the auditors for verification, thereafter it will be forwarded to the Minister then the Portfolio Committee.
5.4 Conclusion and Recommendations
The Committee expressed its discomfort with regard to the effectiveness of the board and governance of SAX and requested the board to be thorough in the execution of its duties, so that the incident of incorrect financial statements did not reoccur. It further resolved that SAX should address all the concerns that have been raised by the customers and employees and should improve its customer service. SAX should keep the Portfolio Committee informed timeously of the developments within the company.
6. Meeting with the Board of Trustees of TSDBF and TPF
The Committee met with representatives of the board of trustees of both the Transnet Pension Fund and the Transnet Second Defined Benefit Fund. The purpose of the meeting was to get a progress update on the implementation of the committee resolutions that relate to the pension funds of Transnet. The presentation highlighted the following:
6.1 Transnet Second Defined Benefit Fund
The Board of Trustees has been in a process of amending the rules in order to effect the increase policy, but the process was taking very long because members had to be consulted broadly. The trustees did experience some resistances from some pensioners. The pension fund has covered the 5 months back-pay, but including two bonuses paid to the pensioners. That was done through a rule that allows the trustees to pay out annual bonuses, subject to affordability.
The Committee was informed that there are too many processes that were hampering progress, which included, court cases, threats, and malicious lies in the media.
6.2 Transnet Pension Fund
The pension fund was administering 4 000 pensioners of which 1 500 are active members. In December, the pension fund made a 5-month pay out to the pensioners.
The challenge that the pension fund had was that there was a discrepancy among pensioners, as there were pensioners who only joined 5 years before retirement. Most of which were racially excluded from being affiliated to the fund. The fund was looking at making special arrangements for pay outs to the previously disadvantaged pensioners.
6.3 Conclusions and Recommendations
The Committee resolved that the pension funds should improve their communication strategies towards the pensioners in order to prevent confusion and misleading information fed to pensioners. Furthermore, the trustees of the TSDBF should still consider to fulfil the full 5 months' back-pay which would mean a further two months payout in place of the two bonus payments that have already been included in the pay-outs of the five months back-pay. The Committee resolved that the trustees of both funds should forward quarterly report to the Committee on progress regarding the pay-outs to pensioners.
Report to be considered.
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