Hansard: NCOP: Unrevised hansard

House: National Council of Provinces

Date of Meeting: 08 Dec 2016

Summary

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Minutes

UNREVISED HANSARD

 

THURSDAY, 08 DECEMBER 2016

 

PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES

 

 

The Council met at 10:02.

 

 

The House Chairperson: Committees, Oversight, Co-operative Government and Intergovernmental Relations took the Chair and requested members to observe a moment of silence for prayers or meditation

 

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

 

NOTICE OF MOTION

 

 

 

Mr M KHAWULA: Hon Chairperson, I hereby give notice that on the next sitting day of the House I shall move on behalf of the IFP:

 

That the Council —

 

(1) notes that tomorrow the 9th December 2016 government, acknowledging that the Cape Castle was constructed in 1652 by Jan van Riebeeck and his entourage, will commemorate its 350 years at a ceremony organised by Arts and Culture;

 

(2) further notes that the commemoration will recognise King Cetshwayo kaMpande kaSenzangakhona, King Sekhukhune and the Khoisan kings for their role in the struggle to protect their kingdoms from colonialism;

 

(3) notes that a delegation of amakhosi from the kingdom of the Zulu, led by the hon Prince Mangosuthu Buthelezi, will grace the function on behalf of the Zulu king, where a statue of King Cetshwayo will be unveiled; and

 

(4) further notes that King Cetshwayo spent time in St Helena and in the castle where he was imprisoned; and

 

SinguZulu, siyakhuleka kuJininindi omnyama ongabubende bezingwe nezingonyama. Uzulu eladuma obala lapho kungemunga kengemthole. Uhlamvana bhula umlilo eNdulinde obubaswe uMantshonga benoGqelebana. Sithi: Wena weNdlovu, Bayede! Silo Samabandla. (Translation of isiZulu paragraph follows.)

 

 

[As the Zulu nation, we are saluting Jininindi omnyama ongabubende bezingwe nezingonyama [Praise name.] Uzulu eladuma obala lapho kungemungwa kungemthole [Praise names.] unhlamvana bhula umlilo eNdulinde obubaswe uMathshongo benoGqelebana [Praise name.] We are saying: Wena weNdlovu, [Praise names.] Hail! His Majesty, King.]

 

EFF WELCOMES JOHN BLOCK SENTENCING

 

(Draft Resolution)

 

Mr M M CHABANGU: Chairperson, I move without notice:

 

 

That the Council —

 

 

(1) notes the sentencing of former ANC chairperson in the Northern Cape, John Block, to 15 years in jail for corruption, money laundering and racketeering;

 

 

(2) believes that Mr Block has for a long time held the Northern Cape to ransom, handling it as if it is his own spaza shop, dispensing patronage at will, employing those who would promote his corruption and firing those who stood against it;

 

 

(3) further believes that he thought he was never going to face justice because of his proximity to Mr Zuma, that doyen of corruption in this country;

 

 

(4) believes that the sentencing of Mr Block will serve as a warning to Mr Zuma and his gang of corrupt men and women that no matter for how long you run or in whatever rat hole you may hide, but the long arm of justice will find you;

 

(5) welcomes the independence and integrity of our justice system which continuously refuses to be corrupted by the ANC. Our judiciary remains the last defence of our Constitution and it is our responsibility to defend it;

 

 

(6) wishes John Block an exciting period of learning and unlearning his corrupt behaviour. I so move.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Chabangu! Hon Chabangu! Is there any objection to the motion?

 

 

HON MEMBERS: Yes.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): In light of the objection, the motion can not be proceeded with. The motion without notice will now become a notice of motion. Order! Hon members, let me remind you it is one and a half minutes. Beyond that, I am going to be very strict with time.

 

 

Mr B G NTHEBE: Wena o dinkonyana tsa kwa Kuruman. [You with a nose like those in Kuruman.]

 

 

PRESIDENT ZUMA LEADS 20TH ANNIVERSARY CELEBRATIONS

 

 

 

(Draft Resolution)

 

Chair, I move without notice:

 

 

That the Council —

 

 

(1) notes that President Jacob Zuma is going to lead the 20th anniversary celebration of the signing into law of the SA Constitution in Sharpeville in Gauteng on Saturday the 10th of December;

 

 

(2) further notes that the President will lead the marking of an important milestone of one of the most internationally acclaimed, progressive and transformative Constitution in the world;

 

 

(3) notes that the celebration will be held under the theme, Celebrating 20 years of the Constitution - transforming society, uniting the nation;

 

 

(4) further notes that the President will be accompanied by Chief Justice Mogoeng Mogoeng and the heads of legislatures, the Speaker of the National Assembly and the Chairperson of the NCOP.

 

 

By the way, the DA rejected this Constitution when it was adopted. Thank you.

 

The HOUSE CHAIRPERSON: Is there any objection to the motion?

 

 

AN HON MEMBER: No!

 

 

AN HON MEMBER: Yes!

 

 

The HOUSE CHAIRPERSON: In light of the objection, the motion may not be proceeded with. The motion without notice will become a notice of motion

 

 

LIVES LOST DUE TO ROAD TRAFFIC CRASHES

 

 

 

(Draft Resolution)

 

 

Ms E PRINS: House Chairperson, on behalf of the ANC, I hereby move without notice:

 

 

That the Council —

 

 

(1) notes that as we resume the festive season, a study conducted by the Council for Scientific and Industrial Research, CSIR, has shown that South Africa has lost over R142 billion as a result of costs arising from road traffic crashes;

 

 

(2) also notes that the study found that a total of 12 944 fatalities in 10 613 road traffic crashes were recorded by

 

the Road Traffic Management Corporation, RTMC, over a period of two years at a total cost that is equal to 3,4% of the country’s gross domestic product;

 

 

(3) further notes that a breakdown of the costs showed that R99 billion was incurred in human casualty costs,

R21,3 billion in vehicle repair costs and R22,5 billion in incident costs;

 

 

(4) takes this opportunity to call on South Africans to exercise extreme caution during the festive season; and

 

 

(5) calls on the law enforcement agencies to wage a concerted fight against reckless and irresponsible drivers.

 

 

I so move.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

XENOPHOBIC REMARKS MADE BY JOHANNESBURG MAYOR HERMAN MASHABA

 

 

(Draft Resolution)

 

 

Ms T MOTARA: I hereby move without notice:

 

 

That the Council —

 

(1) notes with outmost concern the irresponsible, reckless and xenophobic remarks made by Johannesburg Mayor, Herman Mashaba, last week;

 

 

(2) further notes that in his 100th day in office, Mayor Mashaba told a media conference that immigrants in Johannesburg will be treated as nothing less than criminals;

 

 

(3) takes this opportunity to condemn in the harshest possible terms such inflammatory and reckless remarks of Mayor Mashaba; and

 

 

(4) calls on the DA to ensure that Mayor Mashaba is made to withdraw his crude and provocative remarks.

 

 

I so move.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Are there any objections to the motion? [Interjections.] In light of the objections, the motion may not be proceeded with. The motion without notice will now become notice of a motion.

 

 

THE BRUTAL MURDER OF NOLUVO SWELINDAWO

 

 

 

(Draft Resolution)

 

Mr D L XIMBI: Chairperson, on behalf of the ANC I hereby move without notice:

 

 

That the Council —

 

 

(1) notes with utmost concern the brutal murder of an openly lesbian woman, Noluvo Swelindawo, in Driftsands in Cape Town last week;

 

 

(2) further notes that the police have arrested a suspect for this cruel and homophobic crime; and

 

 

(3) takes this opportunity to condemn in the harshest possible terms the senseless killing of Noluvo Swelindawo and conveys its profound condolences to her family.

 

 

I so move.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

THE PASSING AWAY OF MR SFISO NCWANE

 

 

(Draft Resolution)

 

 

Mr T C MOTLASHUPING: Chairperson, on behalf of the ANC I hereby move without notice:

 

That the Council —

 

 

(1) notes with profound sadness and grief the death of distinguished South African gospel music maestro, Mr Sfiso Ncwane, after a short illness on Monday, 05 December 2016 at the age of 37 years;

 

 

(2) further notes that Mr Ncwane had previously survived a heart attack while on his way to an event in Mpumalanga in January 2015 and being struck by lightning and lately succumbed to kidney failure at a Johannesburg hospital;

 

 

(3) acknowledges that he was one of the country’s exceptionally talented young man, which was proven beyond a shadow of a doubt in 2013 when he became the first gospel singer to win the record of the year award at the South African Music Awards; and

 

 

(4) takes this opportunity to convey its heartfelt condolences to the Ncwane family, especially his wife and children.

 

 

Kulungile baba! May his soul rest in peace!

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

Mr W F FABER: Chairperson, on behalf of the DA I hereby move without notice

 

 

That the Council —

 

 

(1) welcomes the outcome of the John Block corruption trial and sentence of 15 years in prison without ... [Interjections.]

 

 

No. I just want to ... [Interjections.] Chairperson, can I be protected? [Interjections.] Chairperson! [Interjections.] Chairperson.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Order, members! Hon Faber ... [Interjections.]

 

 

Mr W F FABER: I am not doing the same one as the new kids on the block. [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber ... Hon Faber, we have dealt with that motion.

 

 

Mr W F FABER: Chairperson, can I do my motion, please? [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Order, members!

 

Mr W F FABER: The DA in the Northern Cape exposed Mr Block’s corruption through a whistle-blower in 2003 – 13 years ago already. And he was then the Northern Cape MEC of Public Works. So, the ANC is still defending Mr Block since then up until now, after the outcome of this trial, almost 14 years later. The DA believes in an open and transparent government and will ensure that all corrupt acts are exposed and that those who default are brought to book. I thank you.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber. Order members! Hon Faber. Can you take your seat so that I can deal with the motion? In terms of the Rules of the NCOP, no member is allowed to move a motion that has been rejected by the very same House in the very same sitting. And that is what you are doing. We have dealt with that motion. [Interjections.]

 

 

Hon Essack ... hon Mokwele ... Hon Essack, can you take your seat? Let me entertain the point of order. Hon Essack, I am dealing with hon Mokwele.

 

 

Ms T J MOKWELE: Chairperson, in terms of the motion that was read by hon Shabangu, the reference was more to Mr JZ783. [Interjections.] Not on the matter that the DA did. That one is in relation to the whistle-blower that was there from the DA. It’s not the same matter. [Interjections.] It’s not! Please! Please, Chair, don’t delay the House. We want to go. Please. [Interjections.]

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, let me start with you before dealing with the ... Can you take your seat, hon Faber.

 

 

Hon members, you are not even assisting me and you are not even assisting yourselves, you are just creating a problem. You can’t drown a speaker out. I must be able to listen and make a proper ruling.

 

 

Hon Mokwele, the Rules of the House are very clear. If you are aggrieved with my ruling ... I have made a ruling. I am not going to review the ruling. Now the opportunity is given to hon Essack to present his motion. Hon Essack ... Hon Mokwele?

 

 

Ms T J MOKWELE: With due respect, Chair ...

 

 

Ke kopa gore o seke wa dirisa dithata tsa gago go tsaya ditshwetso tseo di seng ka fa molaong. Ke kopa gore go ya ka tsiboso ya tshitsinyo ya ga motl ... (Translation of Setswana paragraph follows.)

 

 

[Please do not use your powers to take decisions that are not legally based. I am pleading with you with regard to the motion of hon ...]

 

I am saying it again because they drowned you; you couldn’t hear what I was saying. The hon Shabangu’s reference was to Mr JZ783 and not on the whistle-blower. So you must allow this member to table his motion so that it can then be rejected or be agreed to. Thank you, Chair. [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber, take your seat. [Interjections.] No I am dealing with hon Mokwele.

 

 

Hon Mokwele, I hope we ... I am saying I have made a ruling. I am not dealing with the right or wrong of the ruling. I am very clear: I am saying that there is a procedure set out in the Rules of the NCOP. If you are not satisfied with the ruling you know how to take it forward. I am not contesting whether my ruling is right or wrong. Hon Faber?

 

 

Mr W F FABER: Chairperson, just on that specific point of yours: If it was the same motion, I would agree 100%, but it is not. So that is the first point. Second point, if you then make a ruling because you decide that it is the same motion, then I want this motion without notice to be changed to a notice of a motion so that we can debate the matter. [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Okay, thank you, hon Faber. Hon Essack ... Okay ... hon Essack. Hon Julius?

 

Mr J W W JULIUS: Thank you, Chairperson. In terms of understanding each other and applying the Rules in the House, I think we need to substantiate what we mean by the same motion. Because, in my mind, it reflects as different. From different parties it might come different. [Interjections.] Can you just protect me, Chairperson?

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): You are protected, hon Julius.

 

 

Mr J W W JULIUS: Because the ANC could have come here and said here that we are shocked with the sentencing and we welcome the appeal because that was the statement from the ANC yesterday. But the statements from the DA and EFF are very different; it can never be the same motion. So let’s substantiate what we mean when we say it’s the same motion. [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Can you take you seats? Let me assist all of you, hon members. Hon members, I have made a ruling and you can’t subject my ruling to what you are trying to do, hon Julius. You know that is not in order. Hon Essack, can you present your motion?

 

 

Mr W F FABER: Chairperson! Chairperson!

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber. No, wait, hon Faber

 

Mr W F FABER: On a point of order. My ... [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): You are not recognised.

 

 

Mr W F FABER: Hon Chair, on a point of order: If you make that decision ... [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Faber, can we deal with that microphone? Hon Faber, order members, hon Faber, I am giving hon Essack an opportunity and you are saying hon Essack must sit down and you are the one who is supposed to talk. Hon Essack, are you done? Hon Essack, present your motion. [Interjections.]

 

 

AN HON MEMBER: Get your rules right Chairperson.

 

 

HON MEMBER: Khuluma. [Speak.]

 

 

DA CONGRATULATES EFFORTS TO AVOID CREDIT RATINGS DOWNGRADE

 

 

 

(Draft Resolution)

 

 

Mr F ESSACK: Hon Chairperson, I thank you profusely for the opportunity. I move without notice:

 

 

That the Council –

 

(1) notes that –

 

 

(a) the House congratulates the Minister of Finance Pravin Gordhan, the National Treasury and of course the SA Reserve Bank for their hard work to avoid a sovereign credit ratings downgrade of South Africa;

 

 

(b) all the rating agencies have noted the infighting within the ANC, the ANC factional battles and of course the political infighting as a key factor influencing the South African economy;

 

 

(c) in a year where South Africa has experienced the worst drought ever and skyrocketing food, petrol and electricity prices, there will be many who will not be experiencing a very festive season;

 

 

(d) for too long now the ANC has misgoverned this country with impunity;

 

 

(e) it is of course clear that President Zuma does not comprehend what a big deal a junk status would be ...

 

 

Mr F ESSACK: Please keep in mind my time Chairperson. I am on the floor.

 

Ms L C DLAMINI: Point of order Hon Chair, I have a point of order. The hon member is deliberately misleading the public saying the ANC is misgoverning, on the other hand appreciating the work done by an ANC Minister.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Dlamini that is not a point of order. Hon Essack, can you conclude.

 

 

Mr F ESSACK: ... I will move towards conclusion seeing that not many comprehend what I am trying to say. To the poorest of the poor and we now call on government as the DA to implement the structural reforms necessary to now boost economic growth and create the very many jobs needed in this country as is recommended by the DA previously and concurrently. I thank you.

 

 

Motion not agreed to.

 

 

ANC CONDEMNS LUCKHOFF HIGH SCHOOL ASSAULTS

 

 

 

(Draft Resolution)

 

 

Ms L L ZWANE: Chairperson, I move without notice:

 

 

That the Council –

 

 

(1) notes that –

 

(a) notes with utmost concern the video of a pupil in Luckhoff High School in the Western Cape who was filmed viciously assaulting a classmate on November 24;

 

 

(b) further notes that a similar video‚ filmed four days later at the same school‚ captured another girl punching a pupil in the head;

 

 

(c) takes this opportunity to condemn in the harshest possible terms the attack on defenceless learners; and

 

 

(d) calls on the Department of Basic Education in the Western Cape to wage a concerted battle against school bullying, which has seen the leaking of videos of a number of vicious bullying incidents in many schools in the Western Cape. I so move Chairperson.

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

MOTION OF CONDOLENCE

 

 

 

(The late Chief Linda Mathonsi)

 

 

Mnu M KHAWULA: Sihlalo ohloniphekile, ngithula lesi siphakamiso esilandelayo:

 

leNdlu –

 

 

(1) ukuthi –

 

 

(a) izwakalise ukudabuka kwayo okukhulu ngokudlula emhlabeni ngokuzuma nokube nesihluku esikhulu kweNkosi uLinda Mathonsi yesizwe sakwaMathonsi;

 

 

(b) iNkosi uMathonsi idutshulwe izigcwelegcwele ngoMsombuluko yasweleka ihamba nendodakazi yayo uNonkululeko okumanje isalaliswe esibhedlela;

 

 

(c) egameni leqembu i-IFP kanye nomholi wethu iNkosi yakwaButhelezi enguNdunankulu yomdabu yesizwe sikaZulu sidlulisa ukuzwelana noNdlunkulu weNkosi, umndeni weNkosi kanye nesizwe seNkosi esihlezi emanzini;

 

 

(d) sikhalisana neSilo Samabandla oNgangezwelakhe u- Goodwill kaBhekuzulu ngokwemukwa omunye obewudondolo lweSilo njengeNkosi yesizwe ebhekele iSilo;

 

 

(e) sengathi abezokuphepha bangasheshisa uphenyo ziboshwe izigilamkhuba kanye nabofeleba abangofishi abakhulu abathuma lezi zigilamkhuba ukuba ziyofeza imisebenzi empisholo egameni labo bona bebe behlezi bemsulwa ematafuleni acwebezelayo bekhihla izinyembezi zengwenya

 

kanti bathi lala lulwazi sikwengule. Ngiphakamisa kanjalo Sihlalo

(Translation of isiZulu motion without notice follows.)

 

 

[Mr M KHAWULA: Hon Chairperson, I move without notice:

 

 

(1) that –

 

 

(a) the Council conveys its condolences on the sudden death of Chief Linda Mathonsi of the Mathonsi nation;

 

 

(b) Chief Mathonsi was shot by thugs on Monday and passed on. He was with his daughter Nonkululeko, who is still in hospital;

 

 

(c) on behalf of the IFP and our leader, Chief Buthelezi, who is the Zulu nation’s traditional Prime Minister, we wish to convey our condolences to the Queen, the family, and the nation for what has happened;

 

 

(d) we convey our condolences to His Majesty, King oNgangezwelakhe [Praise names.] Goodwill, the son of Bhekuzulu, on losing one of his staff members as the king of the nation who was the pillar of His Majesty the King;

 

(e) we wish that the police could speed up the investigation process and arrest the criminals, because they are going to fulfil the work of darkness in the name of the real culprits, while they remain innocent and enjoy their lives outside and cry crocodile tears while they know that they are behind this. I so move, Chairperson.]

 

 

Motion agreed to in accordance with section 65 of the Constitution.

 

 

ANC WELCOMES R85 MILLION SMELTER PARK PROJECT

 

 

(Draft Resolution)

 

 

Mr J M MTHETHWA: House Chairperson, I move without notice:

 

 

That the Council –

 

 

(1) notes that –

 

 

(a) KwaZulu-Natal Premier Willis Mchunu on Tuesday the 6th of November was confident that the R85 billion to investment to build a smelter park would usher in a new era characterised by employment and prosperity in the province;

 

(b) further notes that the C S Smelter Park and investment made through the Brazil Russia India China South Africa, Brics business group of countries was earmarked to develop a privately-owned coal fired power station which would be built in three phases of 300 Megawatts each;

 

 

(c) further note that during the soil turning ceremony marking the beginning of the construction of C S Smelter Park in Colenso, Ladysmith, the premier said his government wanted the electricity supply sector to play a role in the provincial energy economy; and

 

 

(d) therefore congratulate the government of KwaZulu-Natal in their effort to create employment and prosperity in the province. I so move

 

 

Motion not agreed on.

 

 

GAUTENG PROVINCIAL EFFORTS TO UNLOCK OPPORTUNITIES FOR YOUNG PEOPLE TO ACCESS EMPLOYMENT AND ENTREPRENEURSHIP

 

 

(Draft Resolution)

 

 

Mr E MAKUE: House Chair, I move without notice:

 

That the Council –

 

 

(1) notes that the Gauteng Provincial Government has intensified its efforts to unlock opportunities for young people to access employment and entrepreneurship opportunities more easily through its flagship programme, Tshepo 500 000;

 

 

(2) further notes that the Premier, Makhura said, that since the launch of Tshepo 500 000 in December 2014, a total of 354 633 young people have benefited from the programme;

 

 

(3) further notes that with the support of the Harambee Youth Employment Accelerator and the commitments made by business in the recent engagements with the provincial government,

Gauteng will exceed the 500 000 target; and

 

 

(4) congratulates the government of Gauteng and their partners in their successful programme of creating employment and entrepreneurship opportunities.

 

 

Thank you, Chairperson.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Is there any objection to the motion? [Interjection.] In light of the objection, the motion may not be proceeded with. The motion without notice will now become notice of the motion.

 

ILLIGITIMATE ELECTORAL PROCESS THE ETHEKWINI METRO COUNCIL IMPLEMENTED

 

 

(Draft Resolution)

 

 

Mr M CHETTY: I move without notice:

 

 

That the Council -

 

 

(1) condemns the illegitimate electoral processes that the eThekweni Metro Council implemented for the elections of its

110 Ward Committees; and the election of 10 of the 39 Ward Committee in Msunduzi due to gross negligence and improper procedures followed; included amongst the objections submitted were; change of times and venues without notice; irregular processes that allowed for citizens who do not reside in the ward or were not reflective on the voters roll to cast their votes; failure to verify prospective candidates nominated from the floor and intimidation, violence and threatening behaviour of residents that required the intervention of SA Police Service, SAPS;

 

 

(2) requests the MEC of Co-operative Governance and Traditional Affairs, KwaZulu-Natal, hon Nomusa Dube, to instruct both Speakers of eThekwini and Msunduzi to nullify the 110

 

eThekwini and 10 Msunduzi Ward Committee elections immediately and call for fresh elections.

 

 

I thank you.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Is there any objection to the motion? [Interjections.] In light of the objection, the motion may not be proceeded with. The motion without notice will now become notice of a motion. Hon members, allow me to acknowledge the new EFF member from Limpopo, hon Brenda Mathebula.

 

 

Ms T J MOKWELE: No, she didn’t run - from Limpopo asked her to go and register the fingers for her to access there.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Okay.

 

 

Ms T J MOKWELE: Yes.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): We will formally do that when she is in the House. No, thank you, that is an order. Hon members, order. Let me welcome the presence of the Deputy Minister of Finance, the Speaker and the Deputy Speaker of Mpumalanga, the special delegates. [Applause.] On behalf of the presiding officers, we were so fortunate yesterday it was hon Motara’s birthday, and today is hon Mpambo-Shibhukwana’s birthday. So, happy birthday to the two of you. [Applause.] The other one a belated one. [Applause.]

 

The CHIEF WHIP OF THE COUNCIL: Chairperson, I move the motion printed in my name on the Order paper as follows:

 

 

That the Council, subject to the concurrence of the National Assembly, extends the deadline by which the Ad Hoc Joint Committee on Appointment of Board Members to the National Youth Development Agency has to report to 31 March 2017.

 

 

Question put: That the motion be agreed to.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.

 

 

ABSTAIN: Western Cape.

 

 

Motion accordingly agreed to in accordance with section 65 of the Constitution.

 

 

Ms N P KONI: Chairperson, I wanted to check with hon Ncitha if she is sure that this time they gave her the mandate. Thank you.

 

 

The CHIEF WHIP OF THE COUNCIL: Chairperson, I move the motion printed in my name on the Oreder Paper as follows:

 

 

That Rule 239(1), which provides inter alia that the consideration of a Bill may not commence before at least three working days have

 

lapsed since the committee’s report was tabled, be suspended for the purposes of consideration of the following Bills:

 

 

a. Taxation Laws Amendment Bill [B 17B – 2016] (National Assembly

 

– sec 77).

 

 

b. Tax Administration Laws Amendment Bill [B 18 – 2016] (National Assembly – sec 75).

 

 

c. Rates and Monetary Amounts and Amendment of Revenue Laws Bill

 

[B 19 – 2016] (National Assembly – sec 77).

 

 

d. Rates and Monetary Amounts and Amendment of Revenue Laws (Administration) Bill [B 20B – 2016] (National Assembly – sec 75).

 

 

Question put: That the motion be agreed to.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Motion accordingly agreed to in accordance with section 65 of the Constitution.

 

 

CHILDREN’S AMENDMENT BILL [B 13 B – 2015] CHILDREN’S SECOND AMENDMENT BILL [B 14B – 2015]

 

(Consideration of Bills and Reports of the Select Committee on Social Services thereon)

 

 

Ms L C DLAMINI: Hon Chair, my greetings to the Deputy Minister, yourself, hon members and my special greetings go to my Speaker and the Deputy Speaker from the most beautiful province, hon Shongwe and hon Siwela.

 

 

Allow us as a committee to present these two Bills in one Report but before saying that, I just want to say that we do not have the divisive tendencies of the DA of trying to separate the Minister of Finance from the ANC as if he is an ANC outside the ANC. [Interjections.] We are noting that ...

 

 

Ms T J MOKWELE: I rise on a point of order that the Ministers of ANC themselves and the Deputy Ministers rejected the Minister of Finance. That’s why other parties see it fit ... your Minister of weekend special, as a military veteran ... yes, you rejected him.

So, we are going to take him and use him.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mokwele that is not a point of order. Can you continue hon Dlamini.

 

 

Ms T J MOKWELE: ... is intimidating me. She must not take advantage of her being from Mpumalanga and you are the Chair from Mpumalanga. She can’t address me directly. You must call her to order, otherwise

 

I will do it myself. You must tell her to be orderly and behave otherwise she will jump, I am telling you. [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members. Can you take your seat hon Khawula. Hon Mokwele, hon members, let me make an appeal to all of you, can we make it a point that we don’t compromise the decorum of the House? I haven’t recognised you, I am still making a ruling.

 

 

Mr B G NTHEBE: Don’t threaten us.

 

 

Ms T J MOKWELE: I will take you off on the statement that you have just said.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): I will deal with you; I will give you an opportunity. Hon members, I am appealing to all of you not to compromise the decorum of the House. Any member now who will disregard and compromise the decorum of the House, I won’t even hesitate, I will make that plea and request you to leave the Chamber. Let’s allow hon Dlamini to continue.

 

 

Oh, sorry hon Dlamini, let me deal with hon Khawula.

 

 

Mr M KHAWULA: Chairperson, I rise on a point of order and also support what you are saying but I think you need to call the hon speaker on the podium to order. The speaker is there to give the

 

report of the select committee and she has got to deliver the report of the select committee. What she started with is not part of the committee report and must be withdrawn. I am a member of that committee and we never dealt with what she started with.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Khawula, I am sustaining your point of order but I will not be requesting hon Dlamini to withdraw anything but request her to focus on what you’re presenting. Can you continue hon Dlamini? [Interjections]

 

 

Mr J W W JULIUS: Hon House Chair, not to drag issues, I don’t want to waste time but I want to assist you. When you make a ruling you know that it becomes part of our rules.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Yes.

 

 

Mr J W W JULIUS: When you make a ruling to say that a person cannot say that and they never have to withdrawn because in this instance, if that member will not withdraw and next time you say I must withdraw, why should I withdraw and your ANC member will not withdraw? You don’t want her to withdraw.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Can you take your seat so that I assist you. Hon Julius, I know that we are left with only one day but the mood is bad. Hon Julius, there is nothing that was said that is offensive and unbecoming except that hon Khawula is correct.

 

Hon Dlamini is supposed to focus on what she is supposed to be presenting and I am sustaining the point of order and allowing hon Dlamini to continue.

 

 

Ms T J MOKWELE: We are going to take this outside the House!

 

 

Ms T J MOKWELE: Because of individual interests! It is a fact!

 

 

Ms L C DLAMINI: Hon Chairperson thank you very much again for this opportunity. I think for me listening is a skill. I said that before I present the report. I did qualify my statement and members should listen.

 

 

As per the constitutional mandate the Portfolio Committee on Social Development in the National Assembly held its public hearing on the Children’s Amendment Bill [B13-2015] and the Children’s Second Amendment Bill [B14-2015] in September 2015. Following the deliberations the committee passed the Bill in August 2016. Both Bills were then referred to the Select Committee on Social Services in the NCOP for concurrence. On 20 September 2016, the Select Committee on Social Services received a briefing from the Department of Social Development on the proposed amendments to the Children’s Amendment Bill [B13-2015] and the Children’s Second Amendment Bill [B14-2015]. The latter was then referred to the provincial legislatures as it affects the provinces since it is a section 76 Bill, so that they can consider it.

 

I want to take this opportunity to thank all provincial legislatures for the good work done and hon members that for the first time in almost all the public hearings members of the committee attended public hearings in provinces and the co-operation that we got from provinces. We want to thank provinces for that.

 

 

The Children’s Amendment Bill [B13B-2015] sought to introduce the following main amendments. I am mainly focusing on the main amendments:

 

 

To insert a definition of sexual offence, thereby aligning the Children’s Act No. 38 of 2005 to the Sexual Offences Act No. 32 of 2007;

 

 

To create a deeming provision in section 120, thereby making it easier to detect adult offenders unsuitable to work with children;

 

 

To amend section 150 in order to clarify the requirements for finding an orphaned or abandoned child in need of care and protection; and

 

 

To amend section 152 to provide for a judicial review of a decision to remove a child without a court order. Those are the main amendments that are proposed in the first Bill [B13-2015].

 

The Children’s Second Amendments [B14B-2015] sought to introduce the following main amendments:

 

 

To extend the definition of adoption social worker to include social workers in the employ of the state, to enable them to do adoptions – as you know Chair that in the passed adoptions were done by private social workers, which was affecting those who are from the disadvantaged background because they were not in the position to pay. But now, this is intending to include the social workers that are employed by the state;

 

 

To amend sections 151 and 152 so as to provide a speedy review mechanism to remove a child, using an interim order and placing him or her in temporary safe care;

 

 

To amend section 171 by employing the provincial Head of Social Development to transfer a person placed in alternative care as a child, who had remained in alternative care after having reached the age of 18, from alternative care to another – as you know Chair, it was a problem when we came in that when a child is 18 has to leave the centre, this one is trying to deal with that;

 

 

To amend section 176(2)(b), by replacing the words education and training with Grade 12, higher education, further education and training so as to clarify what was intended and in order to empower the provincial Head of Social Development to extend an alternative

 

care placement for persons who were still doing their secondary and tertiary education.

 

 

In terms of the finalisation of the Children’s Amendment Bill [B13B- 2015], I must say that over and above the public hearing that was done by this portfolio committee, we also did place advertisements on the media and we did not receive any submission.

 

 

Therefore, the Select Committee on Social Services, having considered the subject of the Children’s Amendment Bill [B13B-2015] section 75 referred to it as agreed to the Bill on 29 November 2016. Members of the select committee met to finalise the Bill. As the result, after a series of meetings with all the relevant stakeholders, all the members of the select committeebb voted in favour of the Children’s Amendment Bill [B13B-2015].

 

 

On 22 November 2016, the members of the Select Committee on Social Services met to present negotiated mandates, - now I am on Bill [B14B-2015], from the provincial legislatures and to hear departmental responses to the issues raised during the public hearings in all provinces. Each province submitted its negotiating mandate regarding the Children’s Second Amendment Bill.

 

 

In summary, almost all of the provinces supported the Bill in light of the proposed amendments, except for Western Cape and Gauteng,

 

which supported the Bill on condition that their proposed amendments and concerns would be considered.

 

 

The Western Cape supported the Bill with the following amendments and concerns: on page 5, clause 5(b), the section may be understood that the children who were over 18 years old and not in grade 12 would not be able to apply for alternative care, on page 2, in line 18, delete subsection (b) and substitute with subsection (c); and on page 3, in line 22, to delete subsection (c) and substitute it with subsection (d).

 

 

The Gauteng Provincial Legislature requested the department to take the following concerns into consideration:

 

 

that if the required documents were not provided by a social worker on time in a judicial set up, the matter should still be heard by the Presiding Officer;

 

 

that social workers should have access to the Department of Home Affairs in order to assist children who were not documented;

 

 

that the department could consider moving the age of the child from 21 to 24;

 

 

have multiple disciplinary programmes for the children;

 

and lastly, foster care cases must be sped up so that children could not become victims of those parents who just wanted to receive the foster care money and neglected the well-being of the children.

 

 

On the final negotiating mandates, the select committee had a briefing by the Department of Social Development, the Parliamentary Legal Advisor and the State Law Advisors on 20 November 2016 on the Bill and the meeting on negotiating mandates from the provincial legislatures held on 22 November 2016. [Interjection.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Dlamini, sorry for disturbance. Can you take your seat? Hon Gaehler.

 

 

Mr L B GAEHLER: Chairperson, it is 12 minutes now. [Laughing.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Gaehler, don’t repeat what you have done. Hon Dlamini, please continue.

 

 

Ms L C DLAMINI: I am watching my time Chair. On 29 November 2016 members of the Select Committee on Social Services met to present their respective provincial legislatures’ final mandates on the Children’s Second Amendment Bill [B14B-2015]. As per the mandates from their respective provinces, all members of the committee voted in favour of the Bill. I therefore present the two Bills to the House for consideration. Thank you very much. [Applause.]

 

Debate concluded.

 

 

Question put: That the Bill be agreed to.

 

 

VOTING ON FIRST ORDER

 

 

Bill accordingly agreed to in accordance with section 75 of the Constitution.

 

 

Question put: That the Bill be agreed to.

 

 

VOTING ON THE SECOND ORDER

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Bill accordingly agreed to in accordance with section 65 of the Constitution.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mokwele.

 

 

Ms T J MOKWELE: With due respect Chair, the last time I checked as a delegate from North West, hon Nthebe was delegated to become the chairperson of a certain select committee and hon Motlashuping was then introduced to us as a leader of delegation. So, I want to check whether hon Nthebe has been redeployed again to the position.

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mokwele ...

 

 

Ms T J MOKWELE: No, allow me Chair, I need clarity from you.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): I will clarify you.

 

 

Ms T J MOKWELE: Allow me to finish. Don’t be impatient Chair, because in terms of us as delegates, even if I didn’t attend the last meeting of delegates but the minutes of the meeting were there and nowhere in those minutes it said hon Nthebe has been reallocated to be leader of the delegation. I just need that clarity. Thank you.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): You need clarity and let me clarify for you. Indeed, hon Nthebe is the provincial Whip of the North West Province.

 

 

Ms T J MOKWELE: With due respect ...

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mokwele, I am not going to subject it to a discussion. Not unless is a separate matter. I am done with the issue of hon Nthebe.

 

 

Ms T J MOKWELE: No, you are intimidating me, you don’t want me to participate in the House, Chair, and really it is not fair for us. This is the only platform where we get chance to debate issues that are related to our provinces. I am delegate of North West and I am

 

not aware that there have been changes. So, I want you to assure me that now Nthebe is again the leader of delegation so that I can take other steps that I need to take as a delegate.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): I’ve done that. I’m assuring you.

 

 

Ms T J MOKWELE: Thank you very much.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, allow me to acknowledge hon Brenda Bathevula as a new member of this august House from Limpopo. Hon Brenda you are welcome. [Applause.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): I am saying hon Nthebe is indeed the Provincial Whip of North West province.

 

 

Ms T J MOKWELE: With due respect, I ... [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, hon Mokwele! Hon Mokwele, I am not going to subject it to a discussion, ... [Interjections.]

... not unless it is a separate matter. [Interjections.] I am done with the issue of hon Nthebe. [Interjections.] If you want to deal with this one ... [Interjections.]

 

 

Ms T J MOKWELE: No, you are intimidating me. You don’t want me to participate in the House. Really, this is not fair for us: This is

 

the only platform where we get chance to debate issues that are related to our provinces. I am a delegate of North West, yet I am not aware that there have been changes. I want you to assure me that hon Nthebe is now again a leader of delegation so that I can take other steps I need to take as a delegate.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): I have done that, I am assuring you.

 

 

Ms T J MOKWELE: Thank you very much!

 

 

NEW MEMBER

 

 

(Announcement)

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, allow me to acknowledge hon Brenda Mathevula as a new member of this august House, from Limpopo. Hon Brenda, you are welcome! [Applause.]

 

 

TAXATION LAWS AMENDMENT BILL

 

 

 

(Consideration of Bill and Report thereon)

 

 

TAX ADMINISTRATION LAWS AMENDMENT BILL

 

 

 

(Consideration of Bill and Report thereon)

 

Mr C J DE BEER: Hon Chairperson, we can see there is a festive feeling in the House. Yes, it is good. Hon Deputy Minister, welcome in the Council. The South African tax system remains resilient in a weak economic environment. We congratulate Team South Africa, the National Treasury led by the Minister of Finance and the Deputy Minister of Finance in their endeavours to avoid a rating’s downgrade. It proves, we can work together if we have an objective to work for ... [Applause.] ... led by an ANC in government.

 

 

The 2016 tax proposals are alive with broader goals of reducing inequality, developing skills, encouraging environmental sustainability and promoting public health. The National Treasury chair proposed a number of tax increases in the 2016 Budget Review. The tax proposals ... [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Order, hon De Beer! Hon members, in terms of Rule 37 – let me remind you what it says:

 

 

The Officer Presiding may order a member to leave the Chamber immediately for the remainder of the day’s sitting if the Officer Presiding is of the opinion that a member’s conduct is grossly disorderly or the member is in contempt or disregarding the authority of the Chair.

 

 

Can you continue, hon De Beer?

 

Mr C J DE BEER: I propose that the hon members from the EFF listen because the Bill affects everyone in South Africa. [Interjections.] The tax proposals for part of government fiscal measures ... [Interjections.]

 

 

Ms T J MOKWELE: With due respect, I want participate in the House, I don’t want you to invoke Rule 37 on me. However, what this white guy is saying to us is totally out of order. I would kindly request that the hon member De Beer - sorry for calling you a white guy – I withdraw.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Mokwele, before you can finish, can you ... [Interjections.]

 

 

Ms T J MOKWELE: I withdraw the, ?White guy?, Chair!

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, hon Mokwele. Before ... Can you leave the House, please? Hon Mokwele, can you leave the House? Can you leave the Chamber? Hon Mokwele, can you leave the Chamber? [Interjections.] I am dealing with hon Mokwele! [Interjections.] I will come back to you; let me finish that one! [Interjections.] Can you leave the House? [Interjections.] Hon members!

 

 

Hon members, I made a plea to all of you about the decorum of the House. Heckling is allowed but you can’t drown the speaker. There

 

are a lot people that are going follow hon Mokwele. Can you continue, hon De Beer?

 

 

Mr C J DE BEER: South Africa belongs to all who live in it, black and white. [Interjections.]God created all of us. It stands in the Bible.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon De Beer ... [Interjections.] No! Can you take your seat, I want to deal with hon De Beer.

 

 

Ms N P KONI: Please note me after that because you promised to note me after dealing with hon Mokwele and you did not.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Yes! Hon De Beer, don’t get the temptation to deal with an issue over which I have made a Ruling already. I have dealt with that issue and my Ruling still stands.

Hon Koni!

 

 

Ms N P KONI: Can you please tell the land thief not to address me directly but to address me through you Chairperson. This man who never fetched water from the river with a bucket - this man who does not even know how to push a wheelbarrow - must not address me directly. He must address me through you. Thank you, Chairperson. [Interjections.]

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Koni! [Interjections.]

 

 

Ms N P KONI: And, Chairperson, he must not even address me because I do not feature anywhere in finance. The ANC gave him to ... [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Can you withdraw the part that you refer to the hon member as, ?The land thief?. Can you withdraw that part?

 

 

Ms N P KONI: The former member of the National Party!

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Can you withdraw the part of referring to the hon member as a, ?Land thief??

 

 

Ms N P KONI: I withdraw the truth that the member is a land thief. I withdraw that truth. [Interjections.] I withdraw that truth!

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Koni, can you withdraw unconditionally, in terms of our Rules.

 

 

Ms N P KONI: I withdraw the truth unconditionally that he is a land thief.

 

 

Mr C J DE BEER: The tax proposals from part of government fiscal measures aimed at narrowing the budget deficit and stabilising debt

 

growth, the National Treasury expected to raise additional

 

R18,1 billion in the 2016-17 financial year. The 2016 Medium Term Budget Policy Statement, 2016 MTBPS, highlighted that the gross tax revenue shortfall was now estimated at R23 billion in the current financial year. The 2016 Taxation Laws Amendment Bill, give effect to the tax proposals tabled by the Minister of Finance in February 2016.

 

 

The National Treasury and the SA Revenue Service, Sars, briefed the Select Committee on Finance on the draft Bills on 24 August 2016.

During this meeting, members of the committee deliberated that the tax legislation and tax incentives should take South Africa’s development agenda into consideration, particularly the interests of the small, medium and micro enterprises.

 

 

The National Treasury should guard against over-regulation and the burden it puts on implementation of the proposed legislation. The industry should be consulted before tax proposals are brought to Parliament. Municipalities should be considered individually as some are income generating, whilst the smaller ones are not.

 

 

With regard to venture capital, National Treasury should be careful that big companies do not freeze smaller ones by extending their own businesses and taking more than 50% of the incentives. The role of the public benefit organisations needed to be reshaped in all sectors and not only human settlements.

 

On 21 September 2016, the National Treasury and Sars briefed the Select Committee on Finance, jointly with the Standing Committee on Finance on the summary of responses to comments received on the Bills. Key amongst the committee deliberations was that the National Treasury should consider the unintended consequences of implementing the legislation and the revenue implications to the fiscus.

 

 

The committee further notes that, ideally, taxation Bill should be passed six months after the national Budget tabling. The Minister of Finance the tabled the two Bills in Parliament on 26 October during the MTBPS process. The Treasury and Sars briefed the committee again on the 2016 Bills on 30 November 2016.

 

 

In considering the Bill, the committee have taken into consideration the briefings by the National Treasury and Sars, reflective of the outcomes of the public participation processes conducted by the National Treasury, the Ministry of Finance as well as the responses provided by the National Treasury on issues raised by the committee members and the public.

 

 

If we do not achieve growth, revenue will not increase; if revenue does not increase, expenditure cannot be expanded. That is a reality! We commend the engagement between government, business and labour, working together in different programmes to enhance economic growth. The key issues contained in the Taxation Laws Amendment Bill include the following employment tax incentives. This incentive is

 

to increase the overall employment and the level of job experience for the youth.

 

 

The government shares the cost of employment of eligible workers, aged between 18 and 29, that earn above the minimum wage between

R1 000 and R6 000 per month, through a credit against employee’s tax to be paid over by the employer to Sars. The annual cup of

R20 million on the claim allowed to each employer was introduced, but after public inputs were made, it was removed from the Bill. The effective date is 1 March 2017.

 

 

The learnership tax incentive’s aim is to encourage skills development. The value of the incentive is a deduction of R30 000 on the commencement of the learnership agreement between an employer and the employee, and another R30 000 upon completion of the studies of training. These values increase by R20 000 if the learner is a person with a disability. Agreements with learners who have basic to intermediate skills levels and qualifications-related agreements are to receive a larger deduction.

 

 

The policy proposals are in line with achieving the National Development Plan goal of producing 30 000 artisans annually. Other major amendments in the Bill refer to amending the following Acts: The Transfer Duty Act; State Duty Act; the Income Tax Act; the Value-Added Tax Act; the Skills Development Levies Act; the

 

Unemployment Insurance Contributions Act; the Securities Transfer Act; and Mineral and Petroleum Resources Royalty Act.

 

 

The Bill also includes introducing measures to prevent tax avoidance through the use of trusts: Addressing the circumstances of rules dealing with employment-based share incentive schemes; addressing the double nontaxation arising from crossborder hybrid debt instruments; tax treatment of long-term insurers due to the introduction of Solvency Assessment Management called Sam; providing relief for mining companies spending on infrastructure for the benefit of mining communities, and employer provided bursaries for employees or their relatives.

 

 

Now we go to the Tax Administration Laws Amendment Bill. This Bill includes the following alternative documentary proof of VAT input tax claims. The amendment provides for a ruling process of alternative documentary proof that may be used as the last resort, and also for the Mineral and Petroleum Royalty Act payments.

 

 

Then very important are the amendments to enhance the Tax Ombud’s independence, namely, to extend the term of the Tax Ombud to five years. The Tax Ombud will appoint staff directly in terms of the S A Revenue Service Act without secondment or consultation with the commissioner. The Tax Ombud’s mandate was further extended to review the systematic or emerging issues on own initiative with approval of

 

the Minister. A 30-day period is inserted to provide reasons for not accepting the Tax Ombud’s recommendations.

 

 

The Select Committee for finance reports that it has agreed to the Bills without amendments. I thank you. [Applause.]

 

 

Debate concluded

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): I shall now put the question in terms of the Third Order. The question is that the Bill be agreed to. In accordance with Rule 63, I shall first allow political parties to make their Declaration of Vote if they so wish.

 

 

Declarations of vote made on behalf of the Democratic Alliance, Economic Freedom Fighters, African National Congress and United Democratic Movement.

 

 

Declaration of votes:

 

Mr F ESSACK: Hon Chairperson, the sincere plea from ordinary South African taxpayers is that the taxes raised nationally be spent responsibly, legally and of course to the benefit of all South Africans. It is for this reason that we in the DA welcome the Employment Tax Incentive for the next two years. This incentive creates a kick-start into the job market and gives an opportunity to many of our youth to enter the job market; further providing skills, experience and dignity to many underprivileged South Africans.

 

We are indeed pleased Chairperson that our proposal of removing the R20 million cap per employer was removed by the Select Committee on Finance. We support this Bill. Thank you, Chairperson.

 

 

Ms N P KONI: Hon Chairperson, this Bill before the House intends to adjust various rates of different taxes such as the Income Tax, transfer and customs duties, but more important the Bill also proposes to re-establish a special voluntary disclosure programme; a programme that allows people hiding assets offshore to disclose and pay negotiated taxes of these assets without facing prosecution.

 

 

As the EFF we view this programme as reactionary and not the way forward. Whilst there are no easy methods to calculate capital flight and illicit financial flows, a prominent 2005 study found that capital flight and illicit financial flows in South Africa average 6,6% of the gross domestic product, GDP, since 1980. This amounts to well over R200 billion that is lost every year through financial crimes. A leakage and a thread to our fiscus stability are preventable. Money that can fund free higher education also that can fund the National Health Insurance, decent housing, and water infrastructure and deliver quality services to our people.

 

 

As the EFF we asked the Minister of Finance in March as to how much SA Revenue Service, Sars, in revenue in all previous voluntary disclosure programmes since 2012? To our shock and disbelief, only R6,3 billion was collected since 2012. When one considers the

 

R200 billion that is lost every year through illicit financial flows, this is just a drop in the ocean.

 

 

We have proposed the following practical solutions as a way forward: The National Treasury and Sars must immediately look into an antitax avoidance Act. There is a need for a commission of inquiry in terms of section 84(2)(e) of the Constitution to investigate illicit financial flows since 1994. I will stop there.

 

 

Mr S J MOHAI: Hon Chairperson, the ANC supports the Employment Tax Incentive. We believe that without legislative amendments, the Employment Tax Incentive would cease to operate from 01 January 2017. The legislative change proposes an extension of the incentive which will provide continued support for employment of youth and allow for the collection of more data and further in depth analysis into the effectiveness of the incentive.

 

 

After discussions with labour and business which took place in the National Economic Development and Labour Council, Nedlac, it was felt that a two year extension would provide sufficient time to meet these objectives while allowing government to closely monitor the fiscal impact.

 

 

The income eligibility bracket was chosen to more effectively target the incentive towards the youth with fewer skills who were less likely to gain employment. As wages increased to those below the

 

ages of 30, it is more likely that this youth have some skills and are more attractive to employers implying that they are more likely to be employed.

 

 

Lastly, in light of high levels of inequality in South Africa, an increase in both transfer duty inclusion rate and capital gains tax inclusion rate is based on equity reasons and also to protect the personal Income Tax base. In other countries like Australia for instance, the capital gains tax, CGT, inclusion rate is 100% for companies and 50% for other taxpayers. So, we really believe that these amendments to the tax laws are critical for us to invest in the growth of our economy. Thanks. [Applause.]

 

 

Mr L B GAEHLER: Hon Chairperson, the UDM supports this Bill. However, we want to raise concern with regard to the slow growth rate of our economy. We further would like to urge the Department of Finance to give more incentives to small, macro and medium enterprises, SMMEs. Lastly, we urge Treasury to plough more funds into small municipalities because they have no revenue base. I thank you.

 

 

Question put: That the Bill be agreed to.

 

 

Bill accordingly agreed to in accordance with section 75 of the Constitution.

 

TAX ADMINISTRATION LAWS AMENDMENT BILL

 

 

(Consideration of Bill and of Report of Select Committee on Finance thereon)

 

 

There was no debate.

 

 

Declaration of vote on behalf of the Democratic Alliance:

 

Mr F ESSACK: Hon Chairperson, the low take up of the Employment Taxation Incentive, ETI, by small businesses has been disappointing. It is therefore vital that the National Treasury ensures that SA Revenue Service, Sars, implement a system whereby employers are able to claim the ETI benefits if they did not have an employees tax liability from which they can then deduct the ETI.

 

 

We believe that this will go a long way to ensure the ETI is taken up by more small businesses. In addition to the creation of jobs this must then surely encourage the growth of small businesses also. We are pleased that our more stringent reporting regime by the Minister was accepted and has been included in the administration Bill.

 

 

In order to ensure that the maximum number of jobs for our unemployed youth is created, it is important that the implementation of the ETI is monitored throughout its existence and it is not just evaluated when it comes to an end.

 

The DA welcomes the inclusion of personal service companies as part of the small business tax provisions. The hope that more land reform projects completed in order to address the vital land reform imperatives are also followed through.

 

 

In conclusion, I would like to point out that the land reform, despite the land rhetoric from the ANC, has all but stalled under the ANC regime led by President Zuma. Finally, the DA supports the Bill. Thank you.

 

 

Question put: That the Bill be agreed to.

 

 

Bill accordingly agreed to in accordance with section 75 of the Constitution.

 

 

CONSIDERATION OF RATES AND MONETARY AMOUNTS AND AMENDMENT OF REVENUE LAWS BILL AND REPORT OF SELECT COMMITTEE ON FINANCE THEREON

 

 

CONSIDERATION OF RATES AND MONETARY AMOUNTS AND AMENDMENT OF REVENUE LAWS ADMINISTRATION BILL AND REPORT OF SELECT COMMITTEE ON FINANCE THEREON

 

 

Mr C J DE BEER: Hon Chairperson, the Rates Bill contains adjustments to the tax rates and monetary amounts that were announced in the 2016 Budget by the Minister of Finance. It includes the increases in the amounts of the bottom three personal income tax brackets; an

 

increase in the primary rebate for individuals; an additional tax bracket for the transfer duty rate; increases in excise duties for alcohol and tobacco; and the introduction of an environmental levy on tyres.

 

 

The Rates Bill also provides for an additional voluntary disclosure relief known as the Special Voluntary Disclosure Programme, SVDP. This is aimed at providing a further opportunity for noncompliant taxpayers who still have undisclosed assets abroad to voluntarily disclose their offshore assets and income before the new global common reporting standard takes effect from September 2017.

 

 

The Bill moves away from the need to calculate seed capital and investment returns as originally proposed, and instead requires only one amount to be determined. Applicants would need to calculate the highest aggregate value of all their assets between 1 March 2010 and

28 February 2015 that were derived from undeclared income.

 

 

In order to encourage uptake of the SVDP the inclusion rate is reduced from 50% to 40% of the highest aggregate value which will be included in the taxable income and subject to tax in South Africa.

 

 

Undeclared income received that made up the undisclosed aggregate value would be exempt from income tax, estate duty and donations tax, but any other further income would subsequently be taxed.

 

The Rates Bill also makes provision for the imposition of a tyre levy as a replacement for the free for tyre recycling that is already in place with a more transparent tax and revenue collection in allocation process.

 

 

The Rates Bill postpones the implementation date for the tyre levy from 1 October 2016 to 1 February 2017. The Bill also provides for the exemption of retreaded tyres for passenger vehicles and light commercial vehicles.

 

 

I now move to the Rates and Monetary Amounts of Amendment of Revenue Laws Administration Bill.

 

 

The Administration Bill makes provision for administrative matters relating to the SVDP. It sets out the conditions, the window period for applications, reduction in penalties and reporting requirements for the SVDP.

 

 

In order to allow more time for applications, the window period for applications for relief under the SVDP has been extended, starting

1 October 2016 and closing 31 August 2017. The Rates Administration Bill also makes provision for the Minister to report to Parliament on the progress of the SVDP.

 

 

The Select Committee for Finance reports that it has agreed to the Bills without amendments. Thank you, Chair.

 

Debate concluded.

 

 

Question put: That the Bill be agreed to.

 

 

Declaration(s) of Vote:

 

Mr F ESSACK: Chairperson, I thank you again for the opportunity. The DA objects to the following sections in the Rates and Monetary Amounts and Amendment of Revenue Laws Bill. Specifically in section 2, we object to the increase in transfer duty for transactions above R10 million. In section 7, we object to the increase in the capital gains inclusion rate of controlled foreign companies from 33,3% to 40%. In section 12, we object to the increase in the inclusion rate of taxable capital gains and assessed capital losses for individuals and personal trusts from 33,3% to 40% and companies and others up from 66,6% to 80% respectively.

 

 

While much of the Bill consists of the normal annual adjustments, there are some significant tax increases — sections 2, 7 and 12 which I have so aptly pointed out. Based on this, we believe there should be no tax increases.

 

 

Furthermore, regarding the SVDP, we would highlight that there is no person who really knows how much money is hidden abroad. The inclusion rate of 40% is of course way too high and will discourage disclosures, especially when combined with the SA Reserve Bank’s penalties.

 

The DA opposes the Bill on the tax increases therein. Further pressure is now created to provide an environment conducive to job creation in South Africa.

 

 

Ms N P KONI: Thank you, Chairperson. This is done without a shred of evidence on how this tool actually increases employment or addresses the chronic problem of unemployment in our country.

 

 

The only true benefit of this incentive is for very big business that enjoys proximity to National Treasury. With this incentive we are on our knees legalising the bribery of private capital, begging them to develop the economy.

 

 

The employment tax incentive is based on a false notion that unemployment in South Africa is due to a lack of skills. Thus the solution is to bribe companies to provide the supposed skills. This is not only an abdication of responsibility to educate and train the youth but government is literally saying to business we will take taxpayers’ money to pay for wages. You can just make profits.

 

 

This is the same big business with no interest to develop the country and that is engaged in aggressive tax avoidance and illicit financial flows. It is the same big business that gets taxed low in an effort to appease it to expand and create jobs.

 

For the last 22 years jobs have not come because no-one is possessed and driven by the desire to maximise profit, and greed will ever act in the interest of uplifting unemployment. A total of 47,6% of youth aged 20 to 25 are not employed, in school, or being trained, and ... is so ... more than 52% of female youth in the same age group. It clearly illustrates that in terms of job creation for young people the ANC government post-1994 has been confused, misguided and truly mediocre. So how do you make an economy provide a sustainable job?

 

 

The first structural problem you must resolve is the antiblack ownership of credit. Until you have a bank that is willing to lend billions of rand to talented black entrepreneurs with real ideas ... South African banks control our ability as a nation to borrow from our own future. They don’t care that millions of black entrepreneurs have not ... [Inaudible.] Thus they don’t care that ...

 

 

[Interjections.] Bring back our land.

 

 

So you need a state bank that all state departments and corporations bank with, that is run efficiently and independently, and that will lend money to blacks for new industries to emerge.

 

 

Secondly, you need to take our minds back and use all the proceeds to divert the industry because on its own it has refused.

 

Thirdly, you need to invest in agriculture by expropriating agrarian land for equal redistribution. Our secret to job creation lies here. After you give the land across to farmers, then protect them with massive subsidies. With this you will be guaranteed quality jobs, not just from farmers ... [Interjections.] ... like the one who is sitting in front of me but right through the food chain.

 

 

Mr J W W JULIUS: [Inaudible.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Gaehler, can you take your seat? Let me deal with Julius. Hon Julius?

 

 

Mr J W W JULIUS: [Inaudible.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, that’s not a point of order.

 

 

Mr J W W JULIUS: You recognised ... [Inaudible.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Julius? Hon Julius? Hon Julius, let me assist you.

 

 

Mr J W W JULIUS: [Inaudible.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Julius, can you take your seat?

 

Mr J W W JULIUS: [Inaudible.] [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Julius? Hon Mlambo? Hon Julius? Hon Julius, the last person to do a declaration was hon Gaehler and it’s not a problem. People just raise hands. Hon Gaehler, can you do your declaration? [Interjections.] Hon Gaehler?

 

 

Mr J W W JULIUS: [Inaudible.]

 

 

Mr L B GAEHLER: Can I start with a point of order, Chairperson?

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Gaehler?

 

 

Mr L B GAEHLER: Can I start with a point of order please?

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, can you do a declaration?

 

 

Mr L B GAEHLER: I’ve got a point of order as well.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): We are dealing with declarations.

 

 

Mr L B GAEHLER: Must I start with that?

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Yes.

 

Mr L B GAEHLER: Okay. Chairperson, can you ... [Interjections.] The UDM supports the Bill for the following reasons.

 

 

Can you protect me? Chairperson, can you protect me when ...

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): You are protected, chair.

 

 

Mr L B GAEHLER: You said you want order in the House but you are not consistent. Hon Julius is doing what hon Mokwele did. [Interjections.]

 

 

Mr J W W JULIUS: [Inaudible.] [Laughter.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Julius? Hon Julius? Hon Julius? You are protected, hon Gaehler.

 

 

Mr L B GAEHLER: Chairperson, the UDM supports the Bill for the following reasons. For too long big business has been hiding and avoided paying taxes for properties overseas. For too long monies have been hidden in trusts for the big cats not to pay taxes. That is why we are supporting this Bill because the big cats must pay taxes. We cannot allow a situation where people hide their monies overseas and avoid paying taxes yet the poor people of this country who are in the majority are forced to pay taxes.

 

Lastly, we would also urge Treasury to deal with foreigners who don’t pay taxes and who take their monies out of South Africa in suitcases. It is high time that they pay taxes in this country. I thank you.

 

 

[Interjections.]

 

 

Mr S J MOHAI: Thanks Chair. In the same breath as the UDM, I think the ANC agrees that section 2 ... the increase in transfer duty rates on property sales above R10 million from 11% to 13% and sections 7 and 12 ... the increase in the inclusion rate of capital gains for individuals from 33% to 40% and for companies from 66,6% to 80%.

 

 

I think it’s important to understand in context what the Minister of Finance raised when presenting the medium-term Budget as a broad policy statement; that we will do this not against the back of the poor. So it’s important that the interests of the poor and the working people are also protected. This navigates carefully in terms of what it is that the country can do in the constrained environment.

 

 

So the issue of inequality in South Africa is a reality and it has to be addressed. Key points that the Minister raised, among others, says that, we need to attend to the issue of inclusive growth; we need to attend to the issue of the microeconomic and fiscal

 

framework, which ... [Inaudible.] ... leads to government debt and expenditure; supporting stronger public and private sector investment; raise the issue of transformation that rests on partnerships between all stakeholders that share our commitment to inclusiveness in our development path; and the national dialogue to seek common solutions and concrete action to slow growth and poverty has to be intensified.

 

 

This sets out a very important ... create ... sets out an environment conducive that our growth and development should take place. So the ANC supports these amendments. [Applause.]

 

 

Mr F ESSACK: On a point of order, Chairperson. I apologise but this is breaking news while we are busy on the Taxation Bill. The Guptas have just officially gained a legal order to take R180 000 worth of equipment from the EFF, which the Guptas gave the EFF, for reneging. So I thought I’d point it out. [Laughter.]

 

 

Ms N P KONI: Order! Hon Essack must stop misleading the House and the country because it is Helen Zille who received money from the Guptas. She even wrote a letter to thank them. The EFF never received a thing from those monsters. The EFF does not eat curry. Thank you, Chairperson. [Interjections.]

 

The HOUSE CHAIRPERSON (Mr A J Nyambi: Can you take a seat? Hon members? [Interjections.] Hon members, we shall now proceed to voting on the question. [Interjections.] Hon Essack?

 

 

[Interjections.] Let’s finish the process. No, we are dealing with voting now. We are not taking ... We will deal with any other issue after dealing with the results.

 

 

VOTING

 

 

Bill accordingly agreed to in accordance with section 75 of the Constitution.

 

 

Mr C HATTINGH: Thank you, hon Chair. There were now a number of attempts to attack the decorum of the House this morning, and you have acted and removed a member. However, I believe a very derogatory remark has now been levelled at some of our colleagues here which should be withdrawn. It’s also like the hon member said that she’s on national TV. To shout to members that we ?don’t eat curry? is derogatory and should be withdrawn. [Interjections.]

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon members, I wouldn’t want to subject this House to dealing with what I missed and I am confirming that I will be very consistent, hon Hattingh. If anything is being said and I might have missed it at that point, alert me and I will deal with it accordingly.

 

CONSIDERATION OF RATES AND MONETARY AMOUNTS AND AMENDMENT OF REVENUE LAWS (ADMINISTRATION) BILL AND REPORT OF THE SELECT COMMITTEE ON FINANCE THEREON

 

 

Debate concluded.

 

 

Question put: That the Bill be agreed to.

 

 

Bill accordingly agreed to in accordance with section 75 of the Constitution.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON COMMUNICATIONS AND PUBLIC ENTERPRISES INTERNATIONAL TELECOMMUNICATIONS REGULATIONS 2012 WITH EXPLANATORY MEMORANDUM

 

 

Ms E PRINS: Hon Chairperson, the Select Committee on Communications and Public Enterprises, having considered and thoroughly ...

 

 

Ms N P KONI: Hon Chair, on a point of order: Can my loving chairperson of my progressive committee please address us standing up on the podium.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): That is not a point of order.

 

 

Ms E PRINS: Chairperson, I do understand. She loves me so much that she needs to say something.

 

Mr C F B SMIT: Hon House Chair, on a point of order: I want to hear whether it is permitted for a hon member to eat in the House, because I see that our Chief Whip is eating in the House.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): It is not permitted, hon Smit.

 

 

Ms E PRINS: Hon Chairperson, the Select Committee on Communications and Public Enterprises, having considered and thoroughly interrogated the international agreement on the International Telecommunication Regulations 2012, on 30 November 2016, we report as follows:

 

 

It was imperative to us, as we scrutinised the International Telecommunications Regulations agreement that we make sure that it is in compliance with our constitutional provisions and is indeed in line with our developmental objectives. This we did, fully aware that as a country, we are part of the fast pace and ever-evolving global information technology movement, on which we must always keep abreast of developments.

 

 

Firstly, the National Development Plan requires the country to have an efficient information communication technology infrastructure that promotes economic growth with reliable broadband and telecommunications network services that are accessible to all.

 

Accessibility and affordability can be a tricky business if the question of prices is not properly addressed.

 

 

Costs to communicate and roaming prices in the country are still high and could be a stumbling block to an inclusive economy.

Perhaps, a timeframe on reducing costs to communicate is needed if we so firmly claim our status as a proud, progressive and developing country.

 

 

The International Communications Regulations agreement, in our view, is a progressive treaty, depending of course on how we, as a country, interpret it to suit our local conditions.

 

 

The treaty is meant to address the following amongst other issues: quality of service, responding to international telecommunications union standards, promoting transparency of international roaming prices, promotion of telecommunications services to 650 million persons living with disabilities globally, encourage the provision of calling line identification information, dissemination of national emergency numbers to visitors or tourists, promotion of regional telecommunication traffic exchange.

 

 

The treaty came at an opportune time, as the Republic is currently engaged with the Integrated ICT Policy White Paper. The White Paper is a review of policies in the ICT sector, following the development

 

and the trends set out by the internet social media, broadband as well as the equitable use of the frequency spectrum, etcetera.

 

 

This is an indication that, as a country, we are not mere spectators but active participants in the global information communication technology movement that is important for connecting nations, individuals, families and companies around the world.

 

 

As a committee, when we engaged the Department of Telecommunications and Postal Services, we raised a number of issues around ICT infrastructure, private-sector investment, costs of communication, the equitable use of the spectrum and the country’s status in space satellite.

 

 

We all know that investment in information technology infrastructure is a crosscutting phenomenon, involving diverse role players, both private and public, as well as different sectors. That co-operation and understanding between all the relevant stakeholders will truly transform our telecommunication sector, whilst also improving services to better the lives of our people.

 

 

In closing, we were however content with the response from the department, with the understanding that the rectification of the International Telecommunication Regulations is therefore not an end in itself, but part and parcel of an ongoing process to position our

 

country in the region, the continent and globally as one of the leading key players amongst developing countries.

 

 

Debate concluded.

 

 

Declaration of vote:

 

Mr J J LONDT: Chairperson, on the face of it, the regulations in the International Telecommunications Regulations Treaty are technical in nature. A paragraph in the preamble to the treaty records as follows, and I quote: ?Member states affirm their commitment to implement these regulations in a manner that respects and upholds their human rights obligations.?

 

 

Herein lies the problem for South Africa: The controversy at the Dubai talks in December 2015, which focussed on the late inclusion of article 5(b), the prevention of propagating unsolicited bulk electronic communications or spam. For governments to control spam, they need to have insight into e-mail content. This clause could potentially give them the right to then censor information and stop its distribution. Internet governance activists in South Africa joined the international colleagues in saying that governments have no role to play in the content of communications and their distribution.

 

 

Last year, South Africa signed a seemingly benevolent ICT pack with China, a world leader in the suppression of internet access and

 

cyber espionage. However, the signatures on this document were eradicated for security reasons. We ask: For what reasons?

 

 

In July, South Africa voted against the United Nations Human Right Council Resolution that commits member states to protect human rights such as freedom of expression and privacy on the internet. It rejected this resolution because in the words of our permanent representative to the United Nations office in Geneva, the exercise of the right to freedom of opinion and expression is not absolute and carries with it duties and responsibilities for right holders.

 

 

South African watch dogs on infringements of human rights now have a watching brief on any creeping encroachments on internet freedom that the ratification of this treaty hands to our government. The Western Cape does not support this treaty.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.

 

 

AGAINST: Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON COMMUNICATIONS AND PUBLIC PUBLIC ENTERPRISES – THE WORLD RADIO COMMUNICATIONS CONFERENCE 2015 (WRC-15) FINAL ACTS WITH EXPLANATORY MEMORANDUM

 

 

Ms B A ENGELBRECHT: Mr Chair, I just want to confirm with you. Is it parliamentary for the hon member from Mpumalanga not to stand every time she reads the provincial declaration because she is sitting in a chair, and as far as I am concerned she is disrespecting this House and disrespecting you as Chairperson of this House.

 

 

The HOUSE CHAIRPERSON (Mr A J Nyambi): No, she is confirming with me whether there is any thing wrong that was done by Mpumalanga head of delegation? I can confirm with you that there is nothing that was done that is not in order. Thank you.

 

 

Ms E PRINS: Hon House Chairperson, the Select Committee on Communications and Public Enterprises having considered and thoroughly interrogated the international agreement on World Radio Communications Conference 2015, on 30 November 2016, to report as follows: The purpose of the rectification of the World Radio Communications Conference is to review and revise radio regulations in order to reflect the latest technological developments as well as to respond to changing markets, demands and services, including specific spectrum requirements.

 

In the context of our country, we have more that 50 commercial radio stations as well as more than 100 community radio stations. This includes the specific spectrum requirements of the square kilometre area, SKA, under the auspices of the Department of Science and Technology. This is in itself an indication that as a country we cannot be passive about developments in the global broadcasting and communication sector if we are to serve our people in line with global communication standards.

 

 

The radio regulations of the agreement provide an agreed framework of rights, obligations and procedures applicable between countries in the many users of the radio frequencies spectrum. However, South Africa reserves the right to structure its own national radio frequency plans to suit the country’s national requirements.

 

 

The Integrated ICT Policy White Paper has, in fact, taken into account some of these developments and makes both to clarify the equitable use of the spectrum in serving the country’s development agenda.

 

 

The document reads as follows: The policy will continue to recognise that there is a need for the allocation of adequate radio frequency spectrum to enable the provision of free to air and other broadcasting activities in recognition of the important role that broadcasting plays in fostering democracy.

 

Whilst we were interrogating the treaty as presented to us by the department, it became quite clear to us that as a country we will need all the resources to our disposal if we are to really make a meaningful impact on these treaties as the agenda of the international community often times is geared to suit the needs of the developed countries to the exclusion of developing countries.

 

 

Chairperson, as a committee, we were alarmed when we were told of a consensus by exhaustion whereby discussions will run for hours until delegates are exhausted. At this point, it becomes easy for delegates to agree on anything as their bodies and mental capacity can no more indure the discomfort of endless discussions.

 

 

This, however, does not surprise us but confirm the idea that the global telecommunications sector is as lucrative as any revenue generating market, and the stakes will always be high.

 

 

In closing, let me make it clear that our objectives in rectifying the World Radio Communication Conference as a committee has been to ensure that as a binding treaty it should not do so in a way that will improve telecommunication services for the benefit of our people, and also put on par with the rest of the develop world. I so move. [Applause.]

 

 

Debate concluded.

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON SECURITY AND JUSTICE

 

 

 

Mr D L XIMBI: Hon Chairperson, thank you for the opportunity, the Select Committee on Security and Justice set a target to determine the extent to which the Department of Correctional Services complied with the matters raised by Judge Cameron in his report on Pollsmoor Correctional Centre — a remand centre and women’s centre, and as a result conducted an oversight visit of Pollsmoor Correctional Centre on 26 October 2016.

 

 

There were observations made with regard to improvements at the facility. TB lights were installed in all areas as a preventative measure to combat the spread of tuberculosis. Inmates were given one hour of exercise but due to the overcrowding, not all inmates received their hour of exercise every day. The facility managed to provide the hour of exercise every second day to inmates.

 

With regard to laundry, the department confirmed that clothing was washed on a daily basis. The department indicated that the bulk washing machine was out of order for two years due to the parts not being available to fix the machine. The department confirmed that the facility can currently only wash 800 blankets per month because it had to relocate the laundry from its original location. The department indicated that the other prisons in the area assisted with laundry washing. With regard to food production and nutrition, Bosasa is contracted to provide nutritional service and inmates assist with the cleaning of equipment. The primary health care facility has 103 patients. It recorded 21 male circumcisions. It has

27 psychiatric patients and 13 infectious TB patients and a further

 

80 noninfectious TB patients. The health care facility has 12 staff members. One doctor attends Monday to Friday, an HIV doctor attends every Tuesday, and a psychiatrist attends every Thursday. A dentist also attends once a week.

 

 

With regards to the women’s centre, it consists of 692 offenders,

 

341 remand detainees, 116 on-duty officials and bed space of 329 whilst the unlock total is 692. There are only 22 bed spaces available but 101 offenders are sharing these beds. Severe overcrowding was observed with one toilet, washbasin and shower for all inmates accommodated in the centre and broken plastering was also observed on the walls of the cells. Since the Cameron visit, efforts have been made to move some female inmates to previously occupied male areas within the prison.

 

The department gave a presentation about overcrowding. The Pollsmoor Prison has a high number of offenders that do not qualify for bail. Courts do not grant bail for detainees that are linked to gangs or have committed Schedule 7 offences. Cape Town is the most violent city in South Africa and is ninth in the world of most violent cities. The effect of high crime therefore impacts on increasing levels of overcrowding. There is an overcrowding task team which has been appointed to review this matter nationally.

 

 

The National Commissioner confirmed that the only foreign nationals held in Pollsmoor were those convicted of criminal activity. The department confirmed that there were no detainees for deportation held at Pollsmoor.

 

 

Nine area commissioners for the Western Cape region presented to the committee on their respective areas and correctional centres. The area commissioners reported that all their facilities experienced some level of overcrowding. The National Commissioner acknowledged that all facilities were overcrowded. The Western Cape was up on remand detainees. There were 18 000 inmates 15 years ago but currently the inmate population is 159 000 in 2016. The increase is attributed to the prevalence of drugs in society, the socioeconomic situation and gangsterism.

 

 

There are recommendations that the committee should make. The committee requests the department to supply it with information

 

after the adoption of this report by the National Council of Provinces. The department must report on the incomplete matters raised previously in the Cameron’s report to the committee within three months of the adoption of this report by the National Council of Provinces. The department must report within 14 days of the adoption of this report by the National Council of Provinces on the following matter: The department’s policy and strategy to combat gangsterism in correctional centres and the department must reply in writing on the strategy to combat smuggling in correctional centres.

 

 

The committee requires a report on the filling of vacancies and an assessment from the department of what has been done to date to address this matter. The committee further requested that the department take remedial action to assist managers who were failing to fill vacancies.

 

 

The Department of Correctional Services must implement the code of conduct of the Department of Correctional Services with regard to the deputy commissioner of the department that represented the Solidarity Union at the United Nations and spoke against the department in contravention of the established policies. The committee requests a report within 14 days of the adoption of this report by the National Council of Provinces on progress made by the department in consultation with the SA Police Service, SAPS, to assist with the incarceration and care for remand detainees by the SAPS to alleviate the overcrowding at correctional centres.

 

The committee agreed to engage the SAPS on the prevention of crime strategies in the country. The Select Committee on Security and Justice, having considered this report, recommends that the National Council of Provinces approves the report. Thank you.

 

 

Debate concluded.

 

 

Declaration(s) of vote:

 

Mr J J LONDT: Hon Chairperson, the Western Cape supports any initiative to accelerate intervention at the Pollsmoor Correctional Facility. The condition at this facility are inhumane and very little has changed since the release of the Cameron Commissions’ Report. What is happening at this facility is a clear violation of human rights on the part of the government.

 

 

However, as we have argued in the select committee, the report does not deal with all the recommendations made by Judge Cameron which is of a serious concern. What is equally concerning was the national commissioner’s remark during the debriefing session that individuals working for the department may not criticise the government that pays their salary and therefore may not point out issues within the department.

 

 

This does not only amount to intimidation but also to the politicisation of the role that should otherwise be exercised impartially. The Western Cape support the report in as far as it

 

encourages urgent change at the Pollsmoor Correctional Facility but as it is this report ids lacking with regard to the real objective of the oversight based on the Cameron’s report and overreaching with regard to other issues that are not related to the prison conditions at all. In the light thereof, the Western Cape will continue to support the initiatives that are aimed at improving the conditions at Pollsmoor but cannot support this report in its current form.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.

 

 

AGAINST: Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL TREASURIES EXPENDITURE REVIEW FOR THE THIRD AND FOURTH QUARTER OF THE 2015-16 FINANCIAL YEAR.

 

 

Mr S J MOHAI: Chairperson, hon members, the Select Committee on Finance has resolved to engage with Provincial Treasuries on quarterly basis to ensure fiscal sustainability and enhance its oversight role over provinces.

 

The Public Finance Management Act requires that the Provincial Treasuries must, among others, exercise control over the implementation of the provincial budget and assist provincial departments and entities in building capacity for efficient, effective and transparent financial management.

 

 

The committee specifically said the strategic objective that seek to ensure effective oversight over provincial government finances to influence budget policy decisions through effective implementation of the Money Bills Act, particularly reporting on macroeconomic, fiscal policy position as well as tax and revenue issues.

 

 

As part of achieving these objectives, the committee held public hearings with the MECs of Finance from all nine provinces between May and August here in Parliament. The provinces presented their respective economic and fiscal positions, growth and development strategies and overall spending for a third and fourth quarter for the period of 2015-16 financial year.

 

 

It transpired that from all the engagements that Gauteng, KwaZulu- Natal and Western Cape provinces remain dominant economic hubs contributing almost 65% to the GDP. This trend of economic activity highly concentrated on few regions is likely going to remain in the future, though the collective contribution has declined over time, the economic sector contribution to GDP differed greatly per province, but finance and business services, wholesale and retail

 

sector, manufacturing and general government services were key economic drivers.

 

 

The rates of unemployment differed significantly per province but more pronounced in the five provinces, that is Mpumalanga, Free Sate, North West, Eastern Cape and the Northern Cape provinces hovering between 29% and 34,7%.

 

 

The provincial budget spending figures for the financial year 2015-

 

16 show that all provinces spend 98,3% of the allocated budget on aggregate. Underspending amounted to R8,5 billion of which Gauteng contributed R2,2 billion and Eastern Cape R2,1 billion. The reasons for underspending were mainly delays in infrastructure projects, supply chainmanagement challenges and high vacancy rates in terms of fiscal positions, most provinces had sufficient cash to pay for unpaid invoices.

 

 

The deterioration of the domestic economic environment continued to put pressure on the national and provincial fiscus along with the rest of country. A decline in commodity prices and drought had a negative impact on the economy of provinces in varying degrees.

 

 

We remain encouraged that most provinces have tabled medium to long- term provincial growth and development strategies. The committee also emphasised that provinces should effectively use growth and

 

development strategies to grow their economies realise value for money, spend and improve revenue generation.

 

 

We further recommended that provinces should continue to explore ways of reducing reliance on government funding to sustain the growth and development urgencies also merging of public entities and boards where applicable. We are happy to report that quite a number of provinces are making progress in this regard.

 

 

Provinces were also encouraged to make better use of intergovernmental services at a municipal and national level for revenue collection and improve their spending capacity to ensure that provincial revenue fund deliver services as planned and on time. The committee further felt that it would be beneficial for provinces to address their challenges with revenue collecting agencies, municipalities and Provincial Treasuries and maximise revenue collection to supplement their equitable share and provide required services to the people.

 

 

The committee also noted key challenges, among others, was provinces capacity to pay within 30 prescribed days and also issues that relates to compliance with Public Finance Management Act and members can attest with the current audit report which points to some of the areas that needs to be improved among provinces. And also, the issues of underspending, the use of consultants and litigation.

 

To conclude, our committee was satisfied that with progress made provincial departments in improving their fiscal positions to ensure continued delivery of services to the people; and that provinces were showing readiness to respond to the challenges as alluded above, that the provincial governments are working hard to ensure they implement medium to long-term economic growth and development strategies. We believe that provinces will continue to increase capacity to provide much needed services around housing, education and health among other things in improving the lives of the people for the better. I thank you. [Applause]

 

 

Debate concluded.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON FINANCE STUDY TOUR TO MEXICO FROM 27 AUGUST TO 3 SEPTEMBER 2016

 

 

Ms T MOTARA: Chairperson, Parliament has been considering financial reform regulations for a number of years in response to the global

 

financial crisis in 2008. National Treasury, working together with the South African Reserve Bank, has presented a number of Bills to Parliament in this regard, one being commonly referred to as the Twin Peaks Bill. This Bill has now been passed by the National Assembly and is due to be considered by the Select Committee of Finance of the NCOP in 2017.

 

 

In 2015, the finance committees of the two Houses decided to undertake a study tour to investigate and interrogate how other Parliaments have managed their financial reforms after this crisis, and particularly look at the role of Parliament in this transition.

 

 

The study was planned as a two-phase collaborative approach. The Standing Committee on Finance completed the first phase by visiting the United Kingdom, and the second phase – which the select committee undertook – was to look at the process which took place in Mexico.

 

 

The detail of the context which served as the terms of reference for the committee’s work is available in the report tabled in the Announcements, Tablings and Committee Reports, ATC 155 of 2016 dated

29 November 2016.

 

 

We interacted extensively with all stakeholders involved in the financial regulatory sector in Mexico: the Chamber of Deputies, their Lower House of Parliament – which is responsible for the

 

approval of revenue laws – and the federal expenditure which is submitted to them by the executive. This process is done in a similar way to which the Parliament of South Africa passes its Budget and revenue laws.

 

 

We met with the Central Bank of Mexico which is responsible for monetary policy, much like South Africa’s Reserve Bank. Mexico’s banking sector is highly concentrated and exposed to foreign banks.

 

 

Amongst the lessons we learnt was that the regulatory institutions fall within the ministry of finance while still maintaining independence. The Mexican financial reforms have promoted competition within the financial sector in order to lower the cost of financial services. There is also an increased role of development banks and private institutions within the financial system.

 

 

We met all the financial sector regulators and consumer protection agencies and looked at the importance of their roles post the financial crisis. Consumer protection remains a critical component in the creation of a financial sector which can withstand shocks and be buoyant enough to respond favourably to serve its clients.

 

 

Let me take this opportunity to thank the South African embassy in Mexico, the National Treasury officials who assisted us pre- and

 

post the study, and all stakeholders whom we had the privilege and pleasure of meeting and learning from.

 

 

Debate concluded.

 

 

Question put: That the Report be adopted.

 

 

In Favour: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND MINERAL RESOURCES ON REGULATIONS PERTAINING TO THE APPOINTMENT OF A REGISTERING AUTHORITY RESPONSIBLE FOR THE REGISTRATION OF ENVIRONMENTAL ASSESSMENT PRACTITIONERS IN TERMS OF SECTION 47(2) OF THE NATIONAL ENVIRONMENTAL MANAGEMENT ACT, ACT 107 OF 1998

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND MINERAL RESOURCES ON DRAFT REGULATIONS FOR THE REGISTRATION OF PROFESSIONAL HUNTERS, HUNTING OUTFITTERS AND TRAINERS IN TERMS OF SECTION 8(3) OF THE NATIONAL ENVIRONMENTAL MANAGEMENT: BIODIVERSITY ACT, ACT 10 OF 2004

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND MINERAL RESOURCES ON SUBMISSION OF THE AMENDED ALIEN AND INVASIVE SPECIES LISTING NOTICES IN TERMS OF SECTION 8(3) OF THE NATIONAL ENVIRONMENTAL MANAGEMENT: BIODIVERSITY ACT, ACT 10 OF 2004

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND AND MINERAL RESOURCES ON INVITATION BY THE MINISTER OF AGRICULTURE, FORESTRY AND FISHERIES TO NOMINATE CANDIDATES TO BE CONSIDERED FOR APPOINTMENT TO SERVE ON THE AGRICULTURAL RESEARCH COUNCIL

 

 

Mr O J SEFAKO: Chairperson, I would like to thank you and the hon members for the opportunity to present before this august House the reports of the Select Committee on Land and Mineral Resources, as follows.

 

 

The report of the Select Committee on Land and Mineral Resources on the submission of the amended alien and invasive species listing notices in terms of section 8(3) of the National Environmental Management: Biodiversity Act, Act 10 of 2004, is dated

25 October 2016.

 

 

The Select Committee on Land and Mineral Resources, having considered the submission made by the Minister of Environmental Affairs to approve the submission of the amended alien and invasive species listing notices in terms of section 8(3) of the National Environmental Management: Biodiversity Act, Act 10 of 2004, referred

 

to it on 30 June 2016, and hereby requests the House to adopt the committee’s report on the matter.

 

 

The second report, that of the Select Committee on Land and Mineral Resources on the draft regulations for the registration of professional hunters, hunting outfitters and trainers in terms of section 8(3) of the National Environmental Management: Biodiversity Act, Act 10 of 2004 is dated 25 October 2016.

 

 

The Select Committee on Land and Mineral Resources, having considered the draft regulations for the registration of professional hunters, hunting outfitters and trainers in terms of section 8(3) of the National Environmental Management: Biodiversity Act, Act 10 of 2004, referred to it on 21 July 2016 and 11 August 2016, and hereby requests the House to adopt the committee’s report on the matter.

 

 

The third report, the report of the Select Committee on Land and Mineral Resources on the invitation by the Minister of Agriculture, Forestry and Fisheries to nominate candidates to be considered for appointment to serve on the Agricultural Research Council, is dated

22 November 2016.

 

 

The Select Committee on Land and Mineral Resources, having received the invitation from the Minister of Agriculture, Forestry and Fisheries to nominate candidates to be considered for appointment to

 

serve on the Agricultural Research Council, in terms of section 9(3)(a)(i) of the Agricultural Research Act, Act 86 of 1990, referred to it on 9 June 2016, and reports as follows.

 

 

The Select Committee on Land and Mineral Resources, having considered the request from the Minister of Agriculture, Forestry and Fisheries for nominations of candidates to serve on the Agricultural Research Council, wishes to report that the committee met on Tuesday, 22 November 2016 to consider any candidate nominated by the Select Committee on Land and Mineral Resources to serve on the Agricultural Research Council.

 

 

The committee therefore wishes to report that the submission of Mr Charles B Stofile was agreed to and adopted by the committee.

 

 

I therefore respectfully request that the House notes the report of the committee.

 

 

The fourth report of the Select Committee on Land and Mineral Resources on regulations pertaining to the appointment of a registering authority responsible for the registration of environmental assessment practitioners in terms of section 47(2) of the National Environmental Management Act, Act 107 of 1998, is dated

25 October 2016.

 

The Select Committee on Land and Mineral Resources, having considered the regulations pertaining to the appointment of a registering authority responsible for the registration of environmental assessment practitioners in terms of section 47(2) of the National Environmental Management Act, Act 107 of 1998, referred to it on 30 June 2016, and reports that the committee has concluded its deliberations thereon.

 

 

The committee is satisfied that the regulations are consistent with the purpose of this Act, are within the powers conferred by the Act, are consistent with the Constitution, and creates offences and prescribed penalties for such offences that are appropriate and acceptable.

 

 

I hereby request the House to adopt the committee’s report on the matter. Thank you. [Applause.]

 

 

Debate concluded.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report of Select Committee on Land and Mineral Resources on regulations pertaining to the appointment of a registering authority

 

responsible for the registration of environmental assessment practitioners in terms of section 47(2) of the National Environmental Management Act, Act 107 of 1998 accordingly adopted in accordance with section 65 of the Constitution.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report of Select Committee on Land and Mineral Resources on draft regulations for the registration of professional hunters, hunting outfitters and trainers in terms of section 8(3) of the National Environmental Management: Biodiversity Act, Act 10 of 2004 accordingly adopted in accordance with section 65 of the Constitution.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report of Select Committee on Land and Mineral Resources on submission of the amended alien and invasive species listing notices in terms of section 8(3) of the National Environmental Management:

 

Biodiversity Act, Act 10 of 2004 accordingly adopted in accordance with section 65 of the Constitution.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report of Select Committee on Land and Mineral Resources on invitation by the Minister of Agriculture, Forestry and Fisheries to nominate candidates to be considered for appointment to serve on the Agricultural Research Council accordingly adopted in accordance with section 65 of the Constitution.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - INSPECTION IN LOCO ON NOTICE OF INTERVENTION ISSUED IN TERMS OF SECTION 139(1)(B) OF THE CONSTITUTION, 1996, IN NQUTHU LOCAL MUNICIPALITY.

 

 

CONSIDERATION OF REPORT OF SELECT COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS - INSPECTION IN LOCO ON NOTICE OF INTERVENTION ISSUED IN TERMS OF SECTION 139(1)(B) OF THE CONSTITUTION, 1996, IN UMZINYATHI DISTRICT MUNICIPALITY.

 

 

Mr M J MOHAPI: Hon Chairperson, allow me, without any waste of time, to present the report on the state of intervention in Nquthu Local

 

and Umzinyathi District Municipalities. Subsequent to the local government elections held on 3 August 2016, two municipalities in the KwaZulu-Natal, namely, Nquthu Local Municipality and Umzinyathi District Municipality are not yet fully functional in that, notwithstanding the election of new councillors, it has not been possible for both new municipal councils to constitute themselves and elect their respective chairpersons as required in terms of section 36(1), also elect amongst its members, within a period of 14 days, the executive committee in terms of section 45 and elect the mayors of their municipalities as outlined in terms of section 48(1) of the Local Government Municipal Structures Act.

 

 

As a consequence, in both municipalities there are no executive functions currently being performed as required in terms of section

152 of the Constitution. The District Municipality of Umzinyathi finds itself in this untenable situation owing to the inherent challenges affecting the smooth functionality of Nquthu Local Municipality.

 

 

The crux of the problem at Nquthu Local Municipality is that, there is no political party that has managed to receive an outright majority, a situation which resulted in legal contestations by individuals, prospective members of the council from the EFF resorting to protracted legal proceedings in courts of law, each fighting over who should serve in the present council.

 

Until the full disposal of these cases, it has been prudent, the provincial government invoking the provisions of section 139 (1)(b) of the Constitution which reads as follows: ?When a municipality cannot or does not fulfil an executive obligation in terms of the Constitution or legislation, the relevant provincial executive may intervene ... ?, as part of measures to ensure the functionality of both municipalities so as to enable efficient delivery of services to communities in both municipalities.

 

 

Upon receipt of a formal notice of intervention, as required in terms of rules and legislation, the select committee undertook to embark on an in loco oversight visit and inspection or verification of adherence to procedural issues relating to intervention in terms of section 139(1)(b) of the Constitution.

 

 

The main objective of the oversight visit to these two municipalities was to interact with internal and external stakeholders affected by the state of dysfunction in both municipalities, in order to solicit the views on constitutional, procedural and substantive requirements relating to the invocation of section 139 (1)(b) of the Constitution.

 

 

The select committee further observed that both Nquthu and Umzinyathi District Municipalities could not comply with the provisions of the following: Section 29(2) of the Structures Act which requires that that Nquthu Local Municipality should have

 

convened at least 14 days after the elections, with Umzinyathi convening immediately after the conclusion of the local councils; failure to comply with the provisions of section 18 which requires that council must be constituted; failure to comply with the provisions of section 26(2) which requires that a person to assume office of councillor upon declared elected; failure by Nquthu Local Municipality within 14 days, to send its representatives to Umzinyathi District Municipality as obliged by the provisions of section 23(4) of the Structures Act.

 

 

The Provincial Executive Council accordingly directed the MEC for local government to appoint a suitable person as ministerial representatives to implement the terms of reference.

 

 

The select committee having heard the views of the stakeholders both internal and external resolved to recommend to the NCOP that we approve the intervention in Nquthu Local and uMzinyathi District Municipalities, subject to the following: Administrators fast- tracking the process of appointing and filling of vacant section 56 and 57 Managers; administrators assisting the municipality to align the service delivery and Budget Implementation Plan and the Integrated Development Plan, IDP, with the municipal budget; the KwaZulu-Natal MEC for Cogta to table quarterly progress reports to the NCOP on the status of the intervention reflective of challenges; that the SA Local Government Association, Salga, working with the local government SETA should require to facilitate relevant training

 

and capacity building interventions for councillors to deepen their understanding of their roles, the legal frameworks and policies governing municipal management and administration; the province tabling the state of finances of the uMzinyathi District Municipality report to the NCOP and the provincial legislature including the report on the findings of the investigations conducted around the fruitless expenditures since 2013 to 2016.

 

 

The select committee will conduct a follow-up oversight visit to both Nquthu Local Municipality and uMzinyathi District Municipality.

 

 

We wish to bring to the attention of the NCOP that the failure of the Nquthu Local Council to constitute itself inevitably resulted in the subsequent inability of the district municipality, Umzinyathi, to constitute itself as required in terms of section 29(2) of the Structures Act due to the non-compliance of Nquthu Local Municipality to send Representatives to the Umzinyathi District Municipality as obliged by the provision of section 23(4) of the Structures Act. This urgently calls for a relook by the Minister of Co-operative Governance to amend the said provision. I thank you.

 

 

Debate concluded.

 

 

Question put: That the Report be adopted.

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

 

Seventeenth Order

 

 

Debate concluded.

 

 

Question put: That the Report be adopted.

 

 

IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.

 

 

Report accordingly adopted in accordance with section 65 of the Constitution.

 

 

Business concluded.

 

 

The Council adjourned at 12:54.

 

 

 

 

 

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS

 

 

THURSDAY, 1 DECEMBER 2016

 

TABLINGS

 

 

National Assembly and National Council of Provinces

 

 

1. The Minister of Justice and Correctional Services

 

 

(a) Report on the provisional suspension from office of Ms Monaledi, the Regional Court President, North West, in terms of section 13(3)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).

(b) Report on the withholding of remuneration of Magistrate P S Hole, a regional magistrate at Kimberley, in terms of section 13(4A)(b) of the Magistrates Act, 1993 (Act No 90 of 1993).

(c) Report on the suspension of Magistrate P S Hole, a regional magistrate at Kimberley, in terms of section 13(4)(a)(i) of the Magistrates Act, 1993 (Act No 90 of 1993).

 

 

MONDAY, 5 DECEMBER 2016

 

 

TABLINGS

 

 

National Assembly and National Council of Provinces

 

 

1. The Minister of Home Affairs

 

(a) Report and Financial Statements of Vote 5 – Department of Home Affairs for 2015-16, including the Report of the Auditor-General on the Financial Statements and Performance Information of Vote 5 for 2015-16 [RP 347-2016].

 

 

2. The Minister of Trade and Industry

 

 

(a) General Notice No 677, published in Government Gazette No 40354, dated 17 October 2016: African Exploration mining and finance corporation facilitators status, in terms of section 9(1) of the Broad-Based Black Economic Empowerment Amendment Act, 2003 (Act No 53 of 2003).

 

 

(b) Government Notice No 1303, published in Government Gazette No 40359, dated 21 October 2016: Final prohibition on the use of certain words in terms of section 15(1) of the Merchandise Marks Act, 1941 (Act No 17 of 1941).

 

 

(c) General Notice No 720 published in Government Gazette No 40381, dated 28 October 2016: The African Exploration Mining and Finance Corporation (AEMFC) B-BBEE Facilitator Status, in terms of section 9(1) of the Broad-Based Black Economic Empowerment Amendment Act, 2003 (Act No 53 of 2003).

 

 

(d) General Notice No 721 published in Government Gazette No 40381, dated 28 October 2016: Codes of Good Practice on Broad-Based Black Economic Empowerment: Defence Industry Sector Codes, in terms of section 9 and 12 of the Broad-Based Black Economic Empowerment Amendment Act, 2003 (Act No 53 of 2003).

 

(e) General Notice No 708 published in Government Gazette No 40375, dated 28 October 2016: Empowering Supplier Status, in terms of section 14(2) of the Broad-Based Black Economic Empowerment Amendment Act, 2003 (Act No 53 of 2003).

 

 

(e) Government Notice No 1387 published in Government Gazette No 40407, dated 07 November 2016: Codes of Good Practice on Broad-Based Black Economic

Empowerment: Information and Communication Technology Sector Code (“the ICT Sector Code”), in terms of section 9(1) of the Broad-Based Black Economic Empowerment Amendment Act, 2003 (Act No 53 of 2003).

 

 

(g)        General Notice No 748 published in Government Gazette No 40410, dated 08 November 2016: Thresholds for Major B-BBEE Transactions, in terms of section F(1)(f) of the Broad-Based Black Economic Empowerment Amendment Act, 2003 (Act No 53 of 2003).

 

 

1. The Chairperson

 

 

(a) Termination of section 139(1)(b) of the Constitution, 1996 Interventions issued to Indaka and Imbabazane and 139(4)(a) of the Constitution, 1996 issued to Ingwe Local Municipalities, KwaZulu-Natal.

Referred to the Select Committee on Cooperative Governance and Traditional Affairs

 

for consideration and report.

 

 

TUESDAY, 6 DECEMBER 2016

 

 

ANNOUNCEMENTS

 

National Council of Provinces

 

 

The Chairperson

 

 

1. Message from National Assembly to National Council of Provinces in respect of Bills passed by Assembly and transmitted to Council

 

 

(1) Bills passed by National Assembly and transmitted for concurrence on 6 December 2016:

 

 

(a) Adjustments Appropriation Bill [B 16 – 2016] (National Assembly – sec 77).

 

 

The Bill has been referred to the Select Committee on Appropriations of the National Council of Provinces.

 

 

(b) Finance Bill [B 21 – 2016] (National Assembly – sec 77).

 

 

The Bill has been referred to the Select Committee on Appropriations of the National Council of Provinces.

 

 

(c) Financial Sector Regulation Bill [B 34B – 2015] (National Assembly – sec 75).

 

 

The Bill has been referred to the Select Committee on Finance of the National Council of Provinces.

TABLINGS

 

National Assembly and National Council of Provinces

 

 

1. The Speaker and the Chairperson

 

 

(a) Commission for Gender Equality: Lack of Gender Transformation in the Judiciary - Investigative Report 2016.

 

 

National Council of Provinces

 

 

1. The Chairperson

 

 

(a) Draft notice and schedule determining the rate, with effect from 1 April 2016, 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 Select Committee on Security and Justice for consideration and report.

 

 

WEDNESDAY, 7 DECEMBER 2016

 

 

TABLINGS

 

 

National Assembly and National Council of Provinces

 

 

1. The Minister of Water and Sanitation

 

(a) Report and Financial Statements of the Amatola Water Board for 2015-16, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2015-16.

 

 

(b) Report and Financial Statements of the Lepelle Northern Water for 2015-16, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2015-16.

 

 

(c) Report and Financial Statements of the Bloem Water for 2015-16, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2015-16.

 

 

(d) Report and Financial Statements of the Magalies Water for 2015-16, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2015- 16.

 

 

(e) Report and Financial Statements of Mhlathuze Water for 2015-16, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2015-16.

 

 

(f) Report and Financial Statements of the Rand Water for 2015-16, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2015-16.

 

(g) Report and Financial Statements of the Umgeni Water for 2015-16, including the Report of the Auditor-General on the Financial Statements and Performance Information for 2015- 16.

 

 

(h) Report and Financial Statements of Sedibeng Water for 2015-16, including the Report of the Independent Auditors on the Financial Statements and Performance Information for 2015-16.

 

 

National Council of Provinces

 

 

1. The Chairperson

 

 

(a) Letter from the Minister of Water and Sanitation dated 06 December 2016 to the Chairperson of the National Council of Provinces explaining the reasons for the delay in the tabling of the Annual Report of Overberg Water for 2015-16.

 

 

OVERBERG WATER: LATE TABLING OF ANNUAL REPORT IN PARLIAMENT

 

 

In terms of section 55(1)(d) of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) the accounting authority for a public entity must submit within five months of the end of the financial year, i.e. 30 November of each year, to the executive authority responsible for that public entity its annual report and financial statements for tabling in Parliament.

In terms of section 65(1) of the PFMA the executive authority for a public entity must table

 

in the National Assembly the annual report and financial statements of the public entity not later than 30 December of each year.

In terms of section 65(2) of the PFMA if an executive authority fails to table within the prescribed period, the executive authority must table a written explanation in the legislature setting out the reasons why the annual reports were not tabled.

Overberg Water failed to submit their annual report and financial statements within the set timeframe. The reasons for late tabling are as follows:

• The AR was not submitted to the Board of OW on time and till to date; the AR has not yet been presented to the Audit, Risk and Finance Committee for consideration prior to submission to Board for approval.

• The failure by senior management of OW to execute and deliver on the operational management responsibilities in a competent and ethical manner and in the best interest of OW, has consequently resulted in OW's failure to meet statutory obligations, including the first late submission of its AFS and AR.

• The Acting Chief Executive of OW, Ms ONV Fundakubi, and the Chief Financial Officer of OW, Ms A Cilliers, did not indicate on time to the Board nor the Auditor General of South Africa (AGSA) that there would be scope limitations to the extent that AFS would be submitted by the stipulated date.

 

 

Subsequent to telephonic and email queries by my Department, Overberg Water undertook to deliver their annual report on 30 November 2016. To date their Annual Report has not been delivered, however my Department will continue to pursue this issue with the Water Board.

Yours sincerely

 

(Signed)

 

MRS N P MOKONYANE

 

MINISTER OF WATER AND SANITATION

 

 

THURSDAY, 8 DECEMBER 2016

 

 

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 8 December 2016:

 

 

(a) Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 19 – 2016] (National Assembly – sec 77).

 

 

(b) Rates and Monetary Amounts and Amendment of Revenue Laws (Administration) Bill [B 20B – 2016] (National Assembly – sec 75).

(c) Taxation Laws Amendment Bill [B 17B – 2016] (National Assembly – sec 77).

 

 

(d) Tax Administration Laws Amendment Bill [B 18 – 2016] (National Assembly – sec 75).

 

(e) Children’s Amendment Bill [B 13B – 2015] (National Assembly – sec 75).

 

 

(f) Children’s Second Amendment Bill [B 14B – 2015] (National Assembly – sec 76).

 

 

 

COMMITTEE REPORTS

 

 

National Council of Provinces

 

 

Please see pages 81-117 of the ATCs.