Hansard: NA: Unrevised hansard
House: National Assembly
Date of Meeting: 24 Jun 2015
Summary
No summary available.
Minutes
UNREVISED HANSARD
WEDNESDAY, 24 JUNE 2015
PROCEEDINGS OF THE NATIONAL ASSEMBLY
The House met at 15:02.
The Deputy Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.
NOTICES OF MOTION
Mr J SELFE: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House–
(1) debates the judgment handed down today in the Gauteng North High Court finding that President Al-Bashir left South Africa in violation of a High Court order;
(2) further debates that the African Union Summit agreement did not confer immunity on Al-Bashir; and
(3) calls on the National Director of Public Prosecutions to investigate who should be held criminally liable for this and the implications for constitutionalism and the rule of law in South Africa.
[Applause.]
Mr T E MULAUDZI: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates measures to ensure that all service delivery centres in poor communities have adequate infrastructures and resources including the provision of mobile services delivery centres to all rural and isolated communities in South Africa.
Ms S J NKOMO: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the existing practices of racial segregation at some of our private schools, most notably the Curro school in Roodeplaat, which are undermining the effects of social cohesion in South Africa and the steps that can be taken to prevent such separate development practices from taking root again in South Africa.
Prof N M KHUBISA: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the overcrowding in mental health care centres because of the proliferation of drugs in our country.
Ms L N MJOBO: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the importance of science, technology and innovation of economic growth and development in enhancing the quality of life of all South Africans.
Mrs J V BASSON: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the role played by Parliament’s robust and systematic oversight in accelerating service delivery.
Mr K P SITHOLE: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the serious lack of housing development in the eThekwini Metropolitan Municipality area which has an enormous number of informal settlements situated in dangerous areas not conducive to life.
Rev K R J MESHOE: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the United Nations Office of Internal Oversight Services report which alleges that South African soldiers on the United Nations peacekeeping missions are the most abusive and the world’s worst military sexual predators.
Mr C D KEKANA: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the training of postgraduate researchers so as to strengthen our global competitiveness.
Mr J A ESTERHUIZEN: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates that despite the near total loss of the Asian tourism market through the new visa regulatory framework system, this government continues to promote the
system and, in doing so, directly contributes to the retardation of economic growth and loss of jobs in this country.
Ms N R MASHABELA: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the increasing political intolerance in the country and measures to be taken to ensure that people’s constitutional rights are protected.
Mr P G ATKINSON: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates, bearing in mind that one of the greatest economic challenges faced by South Africa is job creation, the establishment of a dedicated unit whose primary responsibility will be to interrogate all pieces of legislation to determine its effects on job creation and mitigate any negative effects before it appears in this House.
Ms G N NOBANDA: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the necessity for the private sector to open their businesses to the youth for internships and apprenticeships in line with the Youth Employment Accord signed a few years ago.
Nksk Z B N BALINDLELA: Sekela Somlomo ohloniphekileyo, ndenza isaziso, sokuba xa le Ndlu ihlala kwakhona, ndiza kwenza isiphakamiso egameni leDA:
Sokuba le Ndlu ixoxe ngengxaki enkulu yamanzi kuMasipala oMbaxa iNelson Mandela, eBhayi; kuqatshelwe ukuba isixeko esi siphulukana nomlinganiselo okuma-33 ekhulwini wamanzi; lo mlinganiselo ngowona uphezulu kubo bonke oomasipala abambaxa beli lizwe lethu; kwaye oku kubangelwa kukungabeki iliso elibukhali kwimibhobho noompompi bamanzi.
Enkosi. [Kwaqhwatywa.] (Translation of isiXhosa notice of motion follows.)
[Ms Z B N BALINDLELA: Hon Deputy Speaker, at the next sitting of the House, I shall move on behalf of the DA:
That the House debates the huge water problem in the Nelson Mandela Metropolitan Municipality, in Port Elizabeth, with the city losing approximately 33% of its water, which is the highest in all the metropolitan municipalities of this
country and is due to the lack of monitoring and maintenance of water pipes and taps.
Thank you. [Applause.]]
Ms H H MALGAS: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates ways and means of eradicating substance abuse and support of the affected families through the White Paper on Social Development.
Mr G R DAVIS: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates Minister Faith Muthambi’s unlawful interference in the SABC board, including the illegal removal of three of its members that has left the board without a quorum and unable to take legally binding decisions.
WELCOMING OF CUBAN AMBASSADOR AND CUBAN 5
The DEPUTY SPEAKER: Hon members, before I move to the next item of business, motions without notice, it’s been brought to my attention that the Cuban ambassador to South Africa
accompanied by visitors to our country and our Parliament, the Cuban 5 and their wives, are in the gallery. Let’s welcome them. [Applause.] Amongst them is Fr Lapsley. Welcome, members. Hon members, we now move to motions without notice.
Mr S MOKGALAPA: Deputy Speaker, there are still some notices of motion here.
Mr D W MACPHERSON: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the reasons why a party that doesn’t even contest elections, the SACP, feels the need to invite DA Members of Parliament to attend its gala dinner at Emperor’s Palace on 3 July 2015 where three unlucky people, at a cost of R750 000, will be able to dine with the Deputy President, and 10 unlucky people, at a cost of R350 000, will be entertained by government Ministers and premiers.
Mr F Z MAJOLA: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the embarrassment caused to this House by the behaviour of some members of the House, especially in the presence of our international guests from Cuba.
[Applause.]
Dr M J CARDO: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates lifting the ban on recreational diving in designated coastal areas, including the area between Gansbaai and Quoin Point.
Ms S P KOPANE: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the alleged mismanagement of the Avalon Home for the Disabled in Johannesburg, leading to serious problems with the hygiene, food, and finances.
Thank you.
Mr M S F DE FREITAS: Deputy Speaker, I give notice that I shall move at the next sitting of the House:
That the House debates the latest amendments to e-toll regulations and its impact on the economy.
LANDMARK CARDIAC ABLATION PROCEDURE PERFORMED ON INFANT BY DR KENNY GOVENDRAGELOO
(Draft Resolution)
Mr A M SHAIK EMAM: Deputy Speaker, I move without notice:
That the House–
(1) notes that, last week, paediatric cardiologist Dr Kenny Govendrageloo, an alumnus of the University of KwaZulu-Natal’s Nelson Mandela School of Medicine, with a team of doctors at the Netcare Sunninghill Hospital performed a landmark heart procedure on an infant whose weight was 3,3kg at the time;
(2) further notes that two-month-old baby Miané Burger is the youngest and lightest baby in South Africa ever to undergo a successful cardiac ablation procedure, which is usually done only on babies weighing 10kg or more;
(3) further notes that baby Miané has a stable heart rhythm for the first time in her young life, and the doctors are hopeful that they have been able to fully correct her heart problem;
(4) congratulates Dr Kenny Govendrageloo and his medical team on this successful landmark operation; and
(5) wishes baby Miané a long, happy, and healthy life.
Agreed to.
CONDEMNATION OF FAILURE BY PARLIAMENT AND GOVERNMENT TO ACT AGAINST PERPETRATORS OF SUDANESE GENOCIDE
(Draft Resolution)
Mr S MOKGALAPA: Deputy Speaker, I move without notice:
That the House-
(1) notes with great sadness the ongoing violence and barbaric attacks on innocent civilians in the Darfur region of Sudan which started in February 2003;
(2) also notes the Sudanese government’s campaign of ethnic cleansing against Darfur’s non-Arab population resulting in the deaths of 300 000 African men, women, and children in the region;
(3) further notes that Sudanese President Mr Omar al-Bashir is wanted by the International Criminal Court on
10 counts, including crimes against humanity, war crimes, and genocide;
(4) acknowledges that the executive is yet to provide answers as to why and how they decided to, and actively chose to, allow a wanted man to escape accountability for these atrocious crimes;
(5) acknowledges the SA National Defence Force, SANDF, the SA Police Service, SAPS, and the presidential protection team’s role under the leadership of the relevant Ministers and President Jacob Zuma himself in deliberately ignoring a court order by the North Gauteng High Court;
(6) further acknowledges that as shocking as it sounds, there are hundreds of members of this very House who continue to defend the indefensible, carelessly giving standing ovations to their friends who walk up to this podium to defend genocide;
(7) conveys our sincere condolences to the people of Sudan and sends our message of support to the volunteers, peacekeeping troops and aid organisations who worked tirelessly to save as many lives as possible; and
(8) recalls the early days of our democracy when our foreign policy was grounded on human rights and justice.
The DEPUTY SPEAKER: If there are no objections, I put the motion.
Mr M Q NDLOZI: We object.
Ms H H MALGAS: The ANC rejects the motion.
The DEPUTY SPEAKER: In light of the objection, the motion without notice becomes a notice of motion on the Order Paper.
STUDENT UNREST AT BUFFALO CITY COLLEGE EAST LONDON CAMPUS
(Draft Resolution)
Mr M M DLAMINI: Deputy Speaker, I move without notice:
That the House-
(1) notes—
(a) the situation at the Buffalo City College’s East London campus of students who have been struggling to get transport from school management;
(b) that the school management in its February 2015 agreement promised to provide students with accommodation and a transport allowance;
(c) that earlier this month, after management ignored students, a violent strike erupted, and part of the school was vandalised, with 97 students arrested as a result of this;
(d) that in a meeting held with the students last week on Friday, 18 June, the principal was quoted as saying he would never do so in a million years, after he was requested by the students to liaise with the Department of Higher Education and Training on the issue;
(e) how in February this year, the students were vacated from residences as early as 03:00, and one of the students was raped as a result of this; and
(f) the Buffalo City campus was closed yesterday and that the students have only been given until the afternoon of 25 June to vacate their residences;
(2) condones the relegation of students to criminals by the Department of Higher Education and Training and government, as students only get satisfactory responses when they resort to burning universities in this country;
(3) demands that the Department of Higher Education and Training and the management of Buffalo City College release transport-allowance funds to 1 000 qualifying beneficiaries for school to resume on 20 July; and
(4) demands that the institution allow those who have not been able to meet the 80% attendance criteria to sit for their exams as the school and the Department of Higher Education and Training are directly responsible for their nonattendance.
The DEPUTY SPEAKER: Are there any objections to the motion?
HON MEMBERS: Yes!
The DEPUTY SPEAKER: In light of the objection, the motion without notice becomes a notice of motion on the Order Paper.
20TH ANNIVERSARY OF SPRINGBOKS WINNING 1995 RUGBY WORLD CUP TITLE
(Draft Resolution)
Mr N SINGH: Deputy Speaker, I move without notice:
That the House-
(1) notes that today, 24 June 2015, marks the 20th anniversary of the Springboks’ first Rugby World Cup victory in 1995;
(2) further notes that this triumph over the giant rugby nation of New Zealand took place on African soil here at Ellis Park Stadium in Johannesburg;
(3) remembers that this game and victory was iconic in the history of this nation because, for the first time in our history, we competed as a democratic republic and that, at the end of the match, the then newly elected President of South Africa, Nelson Mandela, wearing a Springbok rugby shirt and cap, presented the Webb Ellis Cup to the South African captain, Francois Pienaar;
(4) acknowledges Mandela and Pienaar’s involvement in the World Cup is the subject of the 2009 film Invictus;
(5) reignites the spirit of togetherness and oneness that we as a nation displayed that day; and
(6) calls upon the nation to give their full support to the Springboks in the September Rugby World Cup.
Agreed to.
FUNDRAISING EFFORTS BY SOUTH AFRICAN COMEDIANS FOR CANCER SUFFERER JUNAID ARENDSE
(Draft Resolution)
Mr J L MAHLANGU: Deputy Speaker, I move without notice:
That the House–
(1) welcomes the commitment by some of the country’s top comedians who are raising funds for Junaid Arendse’s cancer treatment;
(2) recalls that Junaid, a five-year-old boy from Mitchells Plain, was diagnosed in May last year with neuroblastoma cancer, which has now progressed to stage four;
(3) notes that neuroblastoma is among the most common cancers in childhood and attacks adrenal glands and nerve tissue;
(4) further notes that he has gone through 16 unsuccessful chemotherapy sessions, with topotecan treatment being the next step in treatment for Junaid, after doctors gave him only three months to live;
(5) appreciates the more than R50 000 in donations that the family received to help with Junaid’s costly treatment;
(6) further appreciates the commitment by our top comedians, Marc Lottering, Stuart Taylor, Kurt Schoonraad, and Nik Rabinowitz, to perform at the Cape Town Comedy Club at the V&A Waterfront on Monday in hopes of adding to the donations; and
(7) congratulates the South Africans who have contributed in solidarity with the Arendse family for the improved health and wellbeing of Junaid Arendse.
Agreed to.
CONDEMNATION OF STATEMENTS BY PRESIDENT ZUMA WITH REFERENCE TO MARIKANA MASSACRE
(Draft Resolution)
Mr M Q NDLOZI: Deputy Speaker, I move without notice:
That the House–
(1) notes that President Zuma, whilst giving a talk at the Tshwane University of Technology, spoke about the Marikana massacre and is on record saying, “Marikana miners were shot after killing people”;
(2) recalls that President Zuma told this House that he is applying his mind to the Marikana Commission report before release, yet these pronouncements are on the innocence of the police and an approval that the massacre of mine workers was therefore justified;
(3) notes that President Zuma has also said, “Do not use violence to express yourselves, or I might be forced to relook at the apartheid laws that used violence to suppress people”;
(4) further notes that apartheid violence, according to law, is a crime against humanity because it is racist, colonial, oppressive, and uses massacres;
(5) also notes that President Zuma’s utterances are proof that he has taken a position and made up his mind about the events of the Marikana massacre; and
(6) condemns him with the contempt he deserves and calls upon him to release the Marikana report and stop subjecting the widows and families of the deceased to public torture and unnecessary anticipation.
The DEPUTY SPEAKER: Hon members, are there any objections?
HON MEMBERS: Yes!
The DEPUTY SPEAKER: In the light of the objection, the motion without notice becomes a notice of motion on the Order Paper.
DEATH OF TODDLERS IN CENTRAL JOHANNESBURG CRÈCHE FIRE
(Draft Resolution)
Ms L L VAN DER MERWE: Deputy Speaker, I move without notice:
That the House-
(1) notes that two toddlers, aged 2 and 3, were killed when a makeshift crèche caught fire in central Johannesburg on Monday;
(2) further notes that firefighters on the scene battled the blaze for hours to save many other children and their teachers;
(3) extends its heartfelt condolences to the family and friends of those who so tragically lost their children, as well as the traumatised residents of the multi-story building where the tragedy took place;
(4) conveys its well wishes to all those who are recovering in hospital;
(5) applauds the firefighters who fought so bravely and placed their own lives at risk to save the lives of others; and
(6) recognises that incidents such as these once again highlight the need for safe and accessible early childhood development centres to be made available to all children.
Agreed to.
COMMENCEMENT OF RAMADAAN
(Draft Resolution)
Ms H H MALGAS: Deputy Speaker, I move without notice:
That the House–
(1) notes that Muslims around the world marked the start of the Islamic holy month of Ramadan on Thursday, 18 June 2015;
(2) further notes that this is a month of intense prayer, dawn-to-dusk fasting, and nightly feasts;
(3) acknowledges that fasting during Ramadan is one of the five pillars of Islam, along with the Muslim declaration of faith, daily prayers, charity, and performing the Hajj pilgrimage to Mecca;
(4) further acknowledges that the fast is intended to bring the faithful closer to God and to remind them of the suffering of those less fortunate;
(5) recognises that Muslims often give to charities during the month, and mosques and aid organisations organise free meals for the public every night;
(6) further recognises that the month of fasting will end on either Friday, 17 July or Saturday, 18 July, as there are either 29 or 30 days in a lunar month; and
(7) wishes Muslims a successful Ramadan.
Agreed to.
PASSING OF FORMER BLACK SPRINGBOK CAPTAIN THOMPSON MAGXALA
(Draft Resolution)
Mr J L MAHLANGU: Deputy Speaker, I move without notice:
That the House–
(1) notes with sadness the passing of former Black Springbok captain Thompson Magxala, at the age of 73, in the Khayelitsha Hospital on Saturday, 13 June 2015;
(2) remembers that Magxala was selected for the Western Province Rugby Board in 1962;
(3) further remembers that, in 1974, he captained the Black Springboks against the British Lions in Mdantsane, near East London, the same year that he toured Italy with the team;
(4) recalls that in 1992, he was appointed a senior selector of the Western Province Rugby Union;
(5) further recalls that Magxala retired from rugby in 1979 and became president of the Flying Eagles Club, and later Lagunya RFC president;
(6) believes that he played a crucial role in the development of rugby in the black townships, as well as being a role model to young black rugby players; and
(7) conveys its condolences to his family and friends.
Agreed to.
CALL ON GOVERNMENT TO IMPROVE LIVING CONDITIONS IN LIMPOPO VILLAGE OF SEGOPJE
(Draft Resolution)
Ms N R MASHABELA: Deputy Speaker, I move without notice:
That the House–
(1) notes that 21 years of self-serving and inept leadership of the ANC have brought very little to the lives of the people of Ward 29, Segopje Village in Ga- Mamabolo, Limpopo province, who have no proper sanitation and where old people have to demean themselves by using the open field to relieve themselves when nature calls;
(2) further notes that these areas do not have proper running water and that people are given time tables of when water will be available, which is never followed;
(3) acknowledges that the lack of water and proper sanitation leads to a situation where crèches that cater for children of nought to five years have to close very early as a result of lack of water and food, leaving children unattended and vulnerable;
(4) further acknowledges that the young and the old who are sick in these areas have nowhere to go because most of the time the clinic does not have medication and that it is shocking that people still have no
electricity and that when an old woman, Sara Muchieng, asked for electricity, Eskom told her to pay R15 000 for connection;
(5) calls on government to urgently connect the village to electricity and ensure that there is water available at all times;
(6) further calls on government to improve road access to the village to allow ease of movement for people; and
(7) also calls on government to improve health facilities in the area to ensure that early childhood development centres are fully funded and supported as well as a science and technology centre for high school students.
The DEPUTY SPEAKER: Hon members, are there any objections to the motion?
HON MEMBERS: Yes!
The DEPUTY SPEAKER: In light of the objection, the motion without notice becomes a notice of motion on the Order Paper.
CONDEMNATION OF BOKO HARAM ATTACKS IN NIGERIA
(Draft Resolution)
Prof N M KHUBISA: Hon Deputy Speaker, on behalf of the NFP, I move without notice:
That this House–
(1) notes that on Tuesday, 23 June 2015, a young female suicide bomber detonated an explosive device at a market in Gujba, a town in northeast Nigeria’s Yobe State;
(2) further notes that at least 10 people were killed in the explosion and that more than 23 were injured, all of them civilians;
(3) also notes that the attack yesterday came a day after a suicide bomber detonated a bomb at a market in the town of Maiduguri City.
(4) acknowledges that the bomb attacks took place in towns that were reclaimed from the militant group Boko Haram by multinational forces earlier this year and that these attacks bear all the hallmarks of Boko Haram’s modus operandi;
(5) extends its condolences to the people and government of Nigeria on the sad loss of life; and
(6) condemns all aspects of violence aimed at civilians in Nigeria and on the African continent as a whole.
Agreed to.
VISIT BY CUBAN 5 TO SOUTH AFRICA
(Draft Resolution)
Ms H H MALGAS: Deputy Speaker, on behalf of the Chief Whip of the Majority Party, I move without notice:
That this House-
(1) welcomes the arrival of the Cuban 5 in the country on a 13-day visit to thank South Africa for campaigning for their release from the US jail where they were held for up to 16 years;
(2) further notes that the five Cuban intelligence officers were arrested in September 1998 and later convicted in Miami of conspiracy to commit espionage, conspiracy to commit murder, acting as agents of a
foreign government, and other illegal activities in the US;
(3) remembers that after the release of the two in October 2011 and February 2014, the US government swapped the remaining three members of the Cuban 5 for an American intelligence officer held by Cuba;
(4) recognises that Cuba’s unwavering dedication to help South Africa started during the revolutionary struggle for freedom and justice and continued into the democratic dispensation;
(5) further recognises that the current significant support includes the implementation of joint programmes in health, social development, defence, housing, and infrastructure;
(6) believes that the Cuban 5’s arrival is a historic event due to the long years of support that South Africa has rendered to the campaign for their release; and
(7) congratulates the people of South Africa for their warm welcoming of the Cuban heroes in both Johannesburg and Cape Town.
[Applause.]
The DEPUTY SPEAKER: Hon members, are there any objections to the motion?
HON MEMBERS: Yes!
The DEPUTY SPEAKER: In light of the objection, the motion without notice becomes a notice of motion on the Order Paper.
CALL ON ANC TO FULLY UTILISE YOUNG PARLIAMENTARIANS
(Draft Resolution)
Mr M Q NDLOZI: Deputy Speaker, I rise on behalf of the EFF to move without notice:
That this House–
(1) encourages the ANC to explore the full potential of its cadres, particularly the young people who sit in its benches; and
(2) orders the ANC to give Pule Mabe – the hon Pule Mabe – motions without notice or notices of motion to read
because, since he got to Parliament, he has not gotten any opportunity to do so.
[Interjections.]
The DEPUTY SPEAKER: Hon members, are there any objections to the motion?
HON MEMBERS: Yes!
The DEPUTY SPEAKER: In light of the objection, the motion without notice becomes a notice of motion on the Order Paper.
Hon members, I assume that these motions without notice must be circulated. Please, let’s make that the practice of the House and not play with the Rules. [Interjections.]
SUSPENSION OF RULE 253(1) TO ALLOW FOR SECOND READING OF BILLS
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Deputy Speaker, I move the draft resolution as printed in my name on the Order Paper, as follows:
That the House suspends Rule 253(1), which provides, inter alia, that the debate on the Second Reading of a Bill may not commence before at least three working days have elapsed since the committee’s report was tabled, for the purpose of conducting the Second Reading debate today on the Eskom Special Appropriation Bill and the Eskom Subordinated Loan Special Appropriation Amendment Bill.
Question put: That the motion as moved by the Chief Whip of the Majority Party be agreed to.
The CHIEF WHIP OF THE OPPOSITION: I would like to make a declaration if I may. [Interjections.]
The DEPUTY SPEAKER: Just hold on. All right, hon members. Declarations having been called for, we’ll allow you to do that. Hon Chief Whip of the Opposition, please notify the Table in advance because it helps the running of the processes here if you alert me in advance.
Declarations of vote:
The CHIEF WHIP OF THE OPPOSITION: Deputy Speaker, I think that if you had realised the inordinate haste with which these Bills have been ramrodded through Parliament, you would understand why that was not possible ...
[Interjections.]
The DEPUTY SPEAKER: No, I wouldn’t.
The CHIEF WHIP OF THE OPPOSITION: They only finished up these Bills very late yesterday. We are very concerned at the speed with which these very important Bills are being ramrodded through Parliament. We believe that there are significant implications of them, that there are very important pieces of information that have been requested by members of the Standing Committee on Appropriations and other committees to give effect to the substance of great leaps of logic that are made in these particular Bills and a number of assumptions. We do not believe that sufficient time has been given to go through these Bills properly and for Parliament to apply its mind in a full and proper manner to ensure that decisions that we’re making involving these massive sums of money are being made on sound values and principles. For that reason, we believe that more time should have been granted. We do not approve of the three-day Rule being waived.
Mr N E GCWABAZA: Deputy Speaker, the ANC supports the motion as moved by the Chief Whip of the Majority Party because the two Bills, as presented here today, aim to enable Eskom to continue with its programme of maintenance of the ageing electricity infrastructure and also to continue to build and complete the new electricity plants. It aims to make Eskom further able ...
An HON MEMBER: What are you saying?
Mr N E GCWABAZA: ... to secure financial assistance from other sources in addition to the funds Parliament is appropriating today so that our people and businesses can continue to function, to access electricity to function, to build this economy, and to create jobs. I thank you.
Question agreed to.
Motion accordingly agreed to (Democratic Alliance dissenting).
PRECEDENCE GIVEN TO FIRST ORDER UNDER FURTHER BUSINESS
(Draft Resolution)
The CHIEF WHIP OF THE MAJORITY PARTY: Deputy Speaker, with leave, I move:
That precedence be given to Order No 1 under Further Business on the Order Paper.
Agreed to.
CONSIDERATION OF RECOMMENDATION OF CANDIDATES TO FILL VACANCIES ON COUNCIL OF INDEPENDENT COMMUNICATIONS AUTHORITY OF SOUTH AFRICA
The CHIEF WHIP OF THE MAJORITY PARTY: Deputy Speaker, with leave, I move:
That the Report of the Portfolio Committee on Communications on Recommendation of Candidates to fill Vacancies on Council of Independent Communications Authority of South Africa, Icasa, be referred back to the committee for further consideration.
Agreed to.
ESKOM SPECIAL APPROPRIATION BILL
(Consideration of Report of Standing Committee on Appropriations)
ESKOM SUBORDINATED LOAN SPECIAL APPROPRIATION AMENDMENT BILL
(Consideration of Report of Standing Committee on Appropriations)
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY: I move that the Reports be adopted.
Motion agreed to.
Report on Eskom Special Appropriation Bill accordingly adopted.
Report on Eskom Subordinated Loan Special Appropriation Amendment Bill accordingly adopted.
ESKOM SPECIAL APPROPRIATION BILL
(First Reading debate)
ESKOM SUBORDINATED LOAN SPECIAL APPROPRIATION AMENDMENT BILL
(First Reading debate)
Mr S P MASHATILE: Hon Deputy Speaker, hon Ministers and Deputy Ministers, and hon members, South Africa needs sustained and higher levels of economic growth to achieve its key national objectives, which include increasing employment, alleviating poverty, and raising the standard of living of all citizens, in particular, our poor and vulnerable people. A strong and
sustainable Eskom is necessary for the economy to grow more rapidly.
Moreover, a stable and functioning electricity supply industry has a significant impact on the success of other government policies and programmes in a number of diverse areas, including education, health, small business development initiatives, manufacturing enhancement programmes, the building of dynamic cities, mineral beneficiation, industrialisation, and the provision of basic services to households.
A steady energy supply leads to the creation of new markets, fuels the creation of new businesses, and supports job creation, all of which provide more opportunities for our fellow South Africans to earn an income and lift themselves, their families, and their communities out of poverty.
However, electricity shortages have become the greatest obstacle to our country’s growth and development trajectory. It is within this context that the Standing Committee on Appropriations considered the two Eskom Bills, namely the Eskom Special Appropriation Bill which will enable the appropriation of the R23 billion allocation to Eskom, and the Eskom Subordinated Loan Special Appropriation Amendment Bill
which will allow for the conversion of the R60 billion existing subordinated loan to the company into equity.
Eskom supplies 95% of South Africa’s electricity and is the fourth largest power utility in the world in terms of installed capacity. Eskom is currently undertaking a
R280 billion capital infrastructure programme over five years and building two of the biggest coal-fired power plants in Africa. It is important to note that since 2001 Eskom has added 32 generating units and plans on increasing the number of current units to 121.
Eskom currently has a maintenance backlog which has led to deteriorating power station availability and subsequent load shedding. More specifically, Eskom needs a minimum of 3 000 MW and a maximum of 5 000 MW capacity, either through supply-side or demand-side options within the next 18 to 24 months to avoid load shedding. Hon members should note that even at Stage 1 load shedding, Eskom still supplies 96% of the required demand. At Stage 2 load shedding, Eskom still supplies 94% of the required demand.
Of course, Eskom is facing significant challenges that threaten its sustainability and thus the growth and development objectives of the state. The current challenges experienced by Eskom emanate from a number of factors, and
these include delays in its infrastructure build programme and the high maintenance costs of its power plants and distribution centres. Other important factors include the provision of very low tariffs which were inadequate to address future and current infrastructure investment and the lower- than-anticipated electricity demand which has resulted in lower revenues. Furthermore, Eskom has been incurring additional costs to keep the lights on by running more expensive power plants, the open-cycle gas turbines.
What is critical to note from the challenges that I have just highlighted is that they are not systemic but resolvable.
Eskom will remain liquid in the current financial year. In order to significantly improve its effectiveness, there should be enhanced support mechanisms coupled with rigorous oversight so as to ensure that it is able to complete its new build infrastructure programme and maintenance programme successfully. It is important that there should be no deviations from set targets in its build programme.
The Eskom Special Appropriation Bill provides that an amount of R23 billion be appropriated for the Department of Public Enterprises to be transferred to Eskom so as to enhance electricity-generation capacity and security of supply by Eskom. The Bill includes oversight provisions from the Public Finance Management Act. The aim of these provisions is to
promote and enforce transparency and efficient management in respect of revenue, expenditure, assets, and liabilities of Eskom. In order to ensure that the R23 billion funding allocation does not have an impact on the budget deficit, it is to be funded through the sale of nonstrategic government assets, and the appropriations are to be made as the funds are received into the National Revenue Fund.
The conversion of the subordinated loan to equity was part of the overall support package to Eskom agreed to in the previous financial year. The conversion will strengthen Eskom’s balance sheet as the R60 billion will be reflected as equity, resulting in an improvement in Eskom’s debt-to-equity ratio.
The conversion will also improve financial ratios which affect Eskom’s position with rating agencies and also free up additional borrowing capacity. We note that the conversion will have no direct cash-flow impact on Eskom or the state as the funds were appropriated and transferred to Eskom between 2008 and 2011.
In summary, both Bills seek to demonstrate our commitment to supporting Eskom and thus ensuring that the economy continues on a positive growth path. The financing of these Bills in a manner that does not affect the budget deficit also shows our commitment to the long-term health of our public finances.
The committee held public hearings on the two Eskom Bills and engaged with a number of experts in the energy sector. All in all, input received on the Bills agrees on the need for immediate financial support for Eskom in the short term. There is a need to move towards cost-reflective tariffs as an important avenue for funding infrastructure development and also to be used as a means for all South Africans to use electricity more efficiently.
However, a number of considerations should be taken into account with regard to tariffs, and these include the need to ensure that the poor and vulnerable are sufficiently protected from high electricity prices. Furthermore, tariffs should be differentiated so that large and energy-intensive industries do not unduly benefit from state funding.
We note and agree with the public input on the Bill that highlights the need for Eskom to significantly improve its operational effectiveness and ensure stability in electricity generation. In this regard, Eskom is to develop and set explicit targets and submit quarterly reports on its cost containment programme, working capital management, procurement effectiveness, and its business efficiency programme. We have also tasked National Treasury to assist Eskom, in particular with its procurement programme.
The successful execution of maintenance and refurbishment plans, the timely completion of power stations under construction, and the transition to more efficient business- backed cost-reflective tariffs should result in sustainable electricity supply. We also note the negative impact that load shedding has had on all South Africans from all walks of life and wish to empathise with our fellow South Africans that we indeed remain concerned.
In engagements between the committee and Eskom, Eskom committed to a strategy of maintenance without load shedding. Specifically, Eskom is to prioritise risk maintenance in order to ensure that sufficient capacity is available for planned maintenance. We further call on Eskom to ensure that load shedding is effectively managed so as to ensure that access to electricity for our schools, hospitals, clinics, small and emerging businesses, and poor households is maintained.
We also note that in the past three years South Africa has become one of the leading destinations of renewable energy investment in the world. This is largely due to the unprecedented takeoff of South Africa’s Renewable Energy Independent Power Producers programme. Large parts of South Africa’s western and southern coasts and inland areas have some of the world’s best wind and solar energy prospects. It is critical that Eskom spending on grid infrastructure not be
deprioritised so as to allow for the future addition of inexpensive power, such as wind power, and to ensure that households, especially rural households, are able to connect to the main electricity grid.
In conclusion, I wish to remind the House that South Africa is currently in the investment phase of the electricity supply sector. This phase will be characterised by tight supply constraints and increasing tariffs to fund Eskom’s massive infrastructure programme. However, this phase is temporary.
The period 2018 onwards is expected to be cash positive for power generation. Eskom is on track with its capital projects programme, with one unit from Medupi and two units from Ingula to be completed in the current financial year.
There is a number of exciting developments in the energy sector, which will serve to alleviate in a significant way the country’s energy constraints. In the medium term, South Africa will procure imported hydropower – 2 609 MW - and 13 more renewable power projects totalling 1 100 MW from the private sector. South Africa has already contracted a total of
4 100 MW of renewable energy from 66 different private-sector projects since 2011, of which 32 are supplying 1 522 MW to the grid.
It is our role to ensure that priority support is given to the engine room of current and future growth and employment in the economy. Energy, and in particular electricity generation, is the major driver of economic activity that will underpin economic growth. Research estimates indicate that stable electricity generation for the current year may boost growth by as much as a percentage point. The ANC supports the two Bills. [Applause.]
Dr M J FIGG: Hon Deputy Speaker, Eskom is in massive trouble. The state-owned entity currently faces a myriad of challenges, which includes a management crisis, financial instability, lack of generation capacity, power station build problems, and maintenance backlogs.
Eskom has become broke, leaderless, and without any direction. Here are some of the challenges faced by Eskom, which could cost South Africa dearly this winter. Eskom’s chief financial officer, financial director, and other executives have recently been suspended. Internal battles continue, as Eskom’s chairman and the Minister of Public Enterprises continue their fight. A thousand workers at Medupi were recently fired, despite being behind schedule. Eskom is set to get rid of many experienced engineers and managers, and, since the beginning of 2010, 3 297 skilled staff members have left Eskom with
3 716 vacancies for skilled staff positions, currently. Eskom
has not renewed its purchase agreements for more capacity. Eskom is struggling to maintain its power network, and Medupi and Kusile power stations are well behind schedule.
Crucially, Eskom is struggling to meet South Africa’s electricity demand, which is costing us jobs. Eskom desperately needs additional capacity, but construction at the new Medupi power station continues to face setbacks. The situation at Eskom has become so dire that the utility recently conducted a nationwide blackout simulation to test how its systems would handle a total loss of power.
Interestingly, when the Standing Committee on Appropriations was briefed by Eskom, “Magic” Molefe informed us that the available capacity of power was 43 500 MW, with peak period demanding only 32 180 MW. So, there should be adequate power available for routine maintenance, shouldn’t there? [Interjections.] Yet, we continue to experience debilitating blackouts, despite Molefe assuring South Africans that there will be no load shedding this winter, unless of course, the load shedding is being used as a whip to get the increase.
Eskom finances are now in a far worse state than ever before. There was a time when Eskom had a better credit rating than government’s sovereign debt – no more. Eskom’s long-term debt has ballooned in recent times and is fast approaching
R300 billion, an amount equal to 18% of total government indebtedness. Debt-servicing costs have doubled from R4,2 billion in 2008-09 to over R9 billion in 2013-14, according to Eskom’s annual reports.
Ratings agency Standard & Poor’s recently downgraded Eskom’s credit rating to junk status. This had the effect of an immediate increase in the interest payable on existing debt, and, coincidentally, on the same day as the Standard & Poor’s downgrade, Eskom announced that it was seeking a 25,3% tariff hike.
Eskom is confronted with its own fiscal cliff. The entity desperately needs to extract more money from its customers – not the relatively gentle increments required of us by Minister Nene but a very steep increment. It is clear that this is not the end of the bailouts. Load shedding has already caused considerable damage to our economy. A tariff increase will cause irreparable damage to the economy.
It is against that backdrop that we are today presented with two Bills to pass into law. One of these, the Eskom Special Appropriation Bill is set to bail out Eskom to the tune of a cash injection of R23 billion. To put this into perspective, this is 100 times the cost of Nkandla. I hope I have got that right.
The purpose of the Eskom Special Appropriation Bill is to appropriate an additional amount of money for the requirements of the Department of Public Enterprises to increase the state’s equity investment in Eskom Holdings SOC Limited and to provide for matters connected therewith.
This Bill will see an amount of R23 billion paid to Eskom in three tranches, with the first tranche due this month. The Bill also states that the Minister of Finance may, in writing, impose conditions on any part of the appropriation in order to promote and enforce transparency and effective management. The Minister stated that state-owned companies, SOCs, will be financed through the sale of nonstrategic assets. Clearly, there is no transparency here, as it has been reported that the process of raising the funds through the sale of noncore assets is firmly on track and the details will only be made public at an appropriate time. When will that time be, Minister?
The DA recognises that to avoid further load shedding and keep tariffs at an affordable level Eskom needs to be solvent but why all the secrecy? We simply cannot allow the ongoing secrecy surrounding the sale of assets to continue any longer. The people of South Africa need answers to the following questions: Which state assets are considered nonstrategic?
What process was followed to identify these assets? How did
the bidding process proceed? Has a purchase agreement already been concluded?
The answers to these questions are important, as the Minister of Finance stated in his Budget Speech that a “special appropriation will be tabled once the finance has been raised”. So, if the finance has been raised, we need the details and, if not, the appropriation cannot be made, and we will not support the Bill. [Applause.]
Mr M M DLAMINI: Deputy Speaker, the EFF wants to put on record that it rejects both Bills. In 2003, the former Deputy Minister of Energy, Mrs Phumzile Mlambo-Ngcuka, together with Eskom, assured South Africa there was no looming electricity crisis.
While infrastructure deteriorates – unattended and rotten - ordinary South Africans sit in the dark. Eskom’s executives and directors paid themselves over R170 million in salaries and other benefits, over the three years. Eskom has failed to show Parliament any plans in place to reduce wasteful expenditure. Instead, they blame the poor for accessing electricity. It is the government of the ANC that refuses to build additional infrastructure. In 1998, the White Paper on Energy was clear about the need to build new power stations,
but it took the ANC 13 years to realise that South Africa would not have enough electricity in 2015.
Yesterday, Deputy President Cyril Ramaphosa and his friends at Glencore negotiated tenders to supply Eskom with coal. Today, he has total control over Eskom’s decision through the war room. Decisions are made secretively. Coal is purchased with total disregard of procurement procedures, and inflated prices are paid. Workers’ salaries have been stagnant for the last two decades, while capital accumulation increases drastically.
The CHIEF WHIP OF MAJORITY PARTY: Deputy Speaker, on a point of order: The hon member at the podium knows that whenever he makes an accusation of that nature, he must raise it through a substantive motion. So, he must withdraw.
The DEPUTY SPEAKER: Hon member, please, you know the Rules and just do that.
Mr M M DLAMINI: Which part?
Mr N F SHIVAMBU: Deputy Speaker, on a point of order ...
The DEPUTY SPEAKER: Hon member, let the hon member respond to me first; then I will take your point.
Mr N F SHIVAMBU: No, that order is not within the ...
The DEPUTY SPEAKER: Hon member, the Chair will decide that.
Mr N F SHIVAMBU: He is stating an obvious fact that Shanduka reached a deal with Glencore to supply coal to Eskom. The Deputy President is selling to himself. It is a fact.
The DEPUTY SPEAKER: Hon Shivambu, you have made two serious mistakes. Firstly, you just rose and spoke and, secondly, I requested you to sit down so that the member could respond to my ruling. [Interjections.] Do so, hon member.
Mr N F SHIVAMBU: He is stating a fact.
Mr M M DLAMINI: Can I proceed?
Mr J S MALEMA: Hon Chair, on a point of order: You can’t ask a person to withdraw the truth about how Cyril has made money through Shanduka and Glencore in the deal of supplying coal to Eskom. Now, he sits in the war room to determine more money for himself. That is a fact. You can’t ask a member to withdraw the facts. You are rendering this Parliament useless. We cannot tell the truth here. Every time one tells the truth of how Cyril connives with capital to milk the state money ... He is doing that. That is his business. He is here to steal
money. We are not going to agree to withdraw that. [Interjections.]
The DEPUTY SPEAKER: Wait a minute. Hon member, you and the hon Shivambu just got up and spoke. Furthermore, you know what you are saying is out of order. I suggest that you withdraw it so that you are in line with what happens here. Hon Malema?
Mr M Q NDLOZI: Hon Deputy Speaker ...
The DEPUTY SPEAKER: No, no, hon member. Can I request you ...
Mr M Q NDLOZI: I am requesting you to appeal to your conscience and the logic of running the House.
The DEPUTY SPEAKER: Listen, hon Ndlozi, I will ask for your advice at the appropriate time. Right now ... [Interjections.]
Mr M Q NDLOZI: It is not advice.
The DEPUTY SPEAKER: No, no, no.
Mr M Q NDLOZI: It is assistance. In terms of what the hon member said, he has not made an accusation.
The DEPUTY SPEAKER: So, you have decided you are going to speak when you want to speak, despite the Chair advising you to sit down.
Mr M Q NDLOZI: There is no crime when a person is doing business with the state and making money from the state. That can’t be wrong. We are just pointing to its moral invalidity. [Interjections.] The hon Deputy President of the Republic is free to say ... He can’t go to prison for doing that, but we must tell him when he is in business with the state to increase his profits. So, it is not an accusation that we must go haywire about, that it is the killing of a person or anything.
The DEPUTY SPEAKER: Hon Shivambu, hon Malema, and hon Ndlozi, you have obviously, decidedly ignored the ruling of the Chair not to speak before you have been allowed to do so. You have done so defiantly, and I think you are breaking the Rules, and you know that. I am suggesting to you because of that ... and I have asked you to withdraw and to stop doing that, and you are refusing to do so. Is that my understanding that you are refusing to do so? [Interjections.]
Mr J S MALEMA: To withdraw which one, Chair? Must I withdraw that the Deputy President is trading with the state he is presiding over?
The DEPUTY SPEAKER: Look at what you are doing again, hon member. It is exactly the point I am making.
Mr J S MALEMA: I am asking for clarity.
The DEPUTY SPEAKER: Hon member, this is the point that I am making. You cannot rise and speak without being recognised.
Mr J S MALEMA: All right. Which one must I withdraw?
The DEPUTY SPEAKER: You are defying the Chair. On the basis of the Rules of the House, you only speak when the Chair recognises you. Even before I go to the substance ...
Mr J S MALEMA: All right, Chair, but how am I going to respond to you, if I can’t speak?
The DEPUTY SPEAKER: No! Niyabona ngoku niyadelela, ndifuna ukunixelela. [Uwelewele.] [I want to tell you now that you are being disrespectful. [Interjections.]]
Hon members, you have a responsibility ... [Interjections.]
Mr J S MALEMA: You are emotional. Calm down. Don’t worry. Calm down.
The DEPUTY SPEAKER: Hon members, you have a responsibility to listen to the Chair. You are not going ...
Mr J S MALEMA: You are not going to do things of “delela” [disrespect]. This is not a kangaroo court! [Interjections.]
The DEPUTY SPEAKER: Hon Malema, you have a responsibility to listen to the Chair of the House.
Mr J S MALEMA: No, don’t do those things of “delela”. You must withdraw “delela” first.
The DEPUTY SPEAKER: If you refuse to ...
Mr J S MALEMA: Why do you say “delela”?
The DEPUTY SPEAKER: Because you are refusing to allow the Chair to run the House.
Mr J S MALEMA: You must withdraw the word “delela” first.
The DEPUTY SPEAKER: I can’t believe this.
Mr J S MALEMA: No, withdraw the word “delela”. You are not allowed to be emotional. Don’t be emotional. You are a presiding officer. You use the word “delela, delela” here. Is
“delela” parliamentary? You are out of order with that “delela”. Withdraw “delela”.
The DEPUTY SPEAKER: I can’t believe this.
Mr J S MALEMA: No, you can’t do that. You can’t say to us we are “delela”.
The DEPUTY SPEAKER: You are undermining the authority of the Chair, hon Malema.
Mr J S MALEMA: Because you are emotional.
The DEPUTY SPEAKER: You and the other members whom I have mentioned are undermining the authority of the Chair.
Mr J S MALEMA: You are undermining yourself. Take yourself seriously; stop being emotional. Relax. This is not a family matter. “Delela” what? First withdraw “delela”. [Laughter.] We can’t withdraw that Cyril is trading with the state that he is presiding over. We can’t withdraw that. [Interjections.]
The DEPUTY SPEAKER: Hon members, I have made my request to the three members. They have refused to adhere to the rulings, and I would like to request them to ...
Mr M Q NDLOZI: Hon Chair, can I please address you? If you ask us to withdraw something, we rise to ask what we must withdraw. That can’t be out of order. You said, “Is that my understanding?” We come to the podium to respond to you. You say that we are undermining your authority. How are we supposed to speak to you when you ask a question if we don’t come to the podium?
The DEPUTY SPEAKER: Hon Ndlozi, you continue to do what I am suggesting to you not to do. You are not supposed to stand up and speak without being recognised.
Mr M Q NDLOZI: Can I be recognised?
The DEPUTY SPEAKER: You are defying the Chair, and you have been doing this consistently. It is out of order, and you know that. I am suggesting to the three of you that it is not acceptable. If you do not want to do as I suggest you do, which is to allow the Chair to run the House, to comply when you are asked to withdraw the statements you make, and not to speak without the authority of the Chair, it is out of order. [Interjections.]
You have spoken without being asked to speak. I am telling you that when you do that, you undermine the Chair of the House and, when you undermine the authority of the House, you render
the House ungovernable. I request you, because you refuse to accept the authority of the Chair, to leave the House, gently. Leave the House gently. Leave the House, please. Order, hon members!
Mr N F SHIVAMBU: We can’t withdraw that Cyril is doing business with the state. That is a fact, and it must be recorded. That is a fact that he is doing business with the state that he presiding over. [Interjections.]
The DEPUTY SPEAKER: Hon Shivambu ...
Mr J S MALEMA: You must withdraw that thing of “delela”.
The DEPUTY SPEAKER: Hon members, you are not supposed to speak without being recognised. This is simple decency that you need to recognise. If you continue to do it, you are aggravating the problems that you are causing. Order, hon members! You must be orderly. If I see who you are, I will throw you out of the House as well. You are out of order. Order! The next speaker is the hon S J Nkomo.
No, hon members! The House will proceed with its business now. What are you rising on, hon member? You will not ... I hope you are not rising on a frivolous point of order. What are you rising on, hon member?
Mr N S MATIASE: It is not frivolous, Chair. As there was time remaining from the previous member who left, I suggest we use it as a moment of silence for the things that ... [Interjections.]
The DEPUTY SPEAKER: No! Hon member, this is a frivolous point of order, and I warned you not to do that. You are out of order. [Interjections.] Order! Order!
Ms S J NKOMO: Hon Deputy Speaker, today we, as the IFP together with all other parties of the National Assembly, stand at this podium once again to provide our energy supplier, Eskom, with yet another bailout. We have no choice in the matter but to approve the Bill. It is either we provide the R23 billion, or Eskom will spiral further downwards into a greater liquidity crisis and, ultimately, bankruptcy. The long and chequered history of Eskom’s failure, incompetence and mismanagement, coupled with the government’s approval of preferential below-cost electricity tariffs, especially for energy-intensive industries which, we are told, consume about 70% of our energy supply, has brought us to the present state of near collapse and must become a relic of an unfortunate past.
We are advised that Eskom is currently only able to supply approximately 79% of its total supply, which includes making
use of the very expensive open-cycle gas turbines, OCGT, powered by diesel turbines which cost around R3/kWh. It sells this electricity for 73c/kWh. This is clearly not sustainable.
Energy-intensive industries should immediately be paying a fair price for the energy they use to generate profit which, as stated above, is the bulk of the current energy supply. A strong signal must therefore be sent to this industry that South Africa will no longer offer the effective subsidy resulting from below cost-reflective tariffs and should, in fact, be recovering past subsidised costs from such industries, which have long since transformed such subsidies into private profits.
It is also imperative that going forward and once the economy is able, the National Energy Regulator of South Africa, Nersa, should set cost-reflective tariffs whilst ensuring the protection of the ordinary household consumers from astronomical tariff hikes. In addition, this government and Eskom must provide a transparent accounting and reporting system to the ordinary taxpayers whose money is being utilised to finance this bailout. In addition to our taxpayers, consumers must also be consulted and their inputs obtained regarding load-shedding schedules. We need to acknowledge that they deserve nothing less.
In respect of short- and long-term solutions to our energy crisis, we call for greater investment and partnerships with independent power producers, IPPs. We note recent statistics which indicate that the cost per kilowatt hour of solar and wind-generated electricity produced by independent power producers has decreased steadily over the last few years and that such energy stations are now cheaper than coal and gas new build options. The IFP definitely supports Eskom, although we would like to move that the quarterly report as well as the turnaround strategy should be adhered to. I thank you. [Time expired.]
Mr A M SHAIK EMAM: Hon Chairperson, hon members, and our guests present here today, at the outset, the NFP expresses its disappointment at the secrecy surrounding the proposed sale of nonstrategic assets, the funds of which are required for allocation to Eskom in terms of the Eskom Special Appropriation Bill. Having expressed our concern and in the absence of a viable alternative, the R23 billion allocation to Eskom has distinct advantages in that, in effect, it will lessen the burden on consumers.
In addition, growth in South Africa will be adversely affected and could possibly be reduced by as much as 1% in the event of an electricity crisis continuing into the next financial year. Despite the positive effects of the allocated R23 billion,
Eskom requires a further R280 billion to fund its infrastructure expansion programme. Eskom has indicated that it has a plan to raise this amount, but we must caution against any unnecessary tariff increases on consumers as the poorest of the poor, many of whom cannot pay the existing tariffs, suffer the most.
The NFP is of the opinion that there are several measures which can be taken to address the current electricity fiasco. Firstly, alternative energy supply must be accelerated, including the roll-out of independent power producers.
Secondly, we believe that the Department of Energy together with Eskom must explore and encourage the introduction of prepaid electricity. Thirdly, all independent management and board appointments, as well as all tenders, must be awarded strictly on merit and in a transparent manner. Lastly, all government departments and, in particular, municipalities must face the consequences of not paying their debt to Eskom timeously. The R60 billion that will now be converted to equity in the form of shares means that Eskom will have a more favourable balance sheet which will enhance its ability to borrow for capital expenditure, maintenance, and so forth.
However, no amount of money will solve the problems at Eskom unless drastic measures are put in place, and Eskom operates on business principles with clear consequences for failure to
steer the entity out of the present position. Having said that, Eskom is a state-owned entity, and it is our collective responsibility to ensure that we provide our citizens with uninterrupted electricity. There is no doubt that, in so doing, capital expenditure should and must be the responsibility of the state. We should not burden consumers with having to pay for capital expenditure.
The NFP supports the Bill with a clear understanding that, together with assurances from the chief executive officer, Mr Molefe, and other role-players, electricity load-shedding will be a thing of the past within two to three years. This being the case, it remains the responsibility of the state to provide Eskom with the necessary funding, and, in light thereof, the NFP supports this Bill. I thank you.
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon members, before I call the next speaker, may I just request you to keep the noise levels down, please. There is too much noise in the House. The hon Kwankwa.
Mr N L S KWANKWA: Hon House Chair, I must say that I’m glad you are a first language speaker of English because now you won’t be able to tell me that “ndiyadelela” [I am disrespectful] when I’m out of order. Hon House Chair and hon
members, a strong Eskom is critical to the provision of the energy needs the economy requires to grow.
Madiba, masiyibethe ngesiXhosa le nto. Masiqale sithi umzekelo ukuba sizama ukuphucula lo Mthetho osaYilwayo, into esizama ukuyenza kukuphucula ... [Madiba, let’s speak about this in isiXhosa. First, let’s say, for example, if we try to develop this Bill, what we are trying to do is to recover ...]
... the debt-to-equity ratio of Eskom. The challenge that we have as a political party is that we seem ...
... sigalela engxoweni evuzayo. [Uwele-wele.] Siso kanye esi ndisithethayo. Sigalela engxoweni evuzayo kuba into eza kwenzeka kukuba baza kuphucuka ngenene ukuze bakwazi ukufumana ithuba kwixesha elizayo lokuba bafumane imali. Kodwa kuza kwenzeka ntoni xa ufumanisa ukuba baboleka imali baze bangayisebenzisi ngendlela. (Translation of isiXhosa paragraph follows.)
[... to be just pouring our money into leaking coffers. [Interjections.] It’s exactly what I’m saying. We are pouring our money into leaking coffers because what is going to happen is that they will really develop so that they can get an opportunity to get money next time. However, what will happen if you find out they borrow money and misuse it?]
We are aware that we are sitting where we are today because Eskom has become too massive a monopoly to control and to run. There is no logic behind intervening in the market to address market failure, only to pile more inefficiency on the very same market. As a social democrat, I cannot and we cannot advocate for the complete privatisation of Eskom, but we think the time has come for us to consider allowing the private sector to play a role in this industry to improve competitiveness and efficiency.
Masenze umzekelo, ukuba uya kwamanye amazwe afana ne-United Kingdom ... [Let’s say, for example, if you go to countries like the United Kingdom ...]
... they are decentralising the way they provide electricity.
Ufumanisa ukuba kubakho ... [You will find there are ...]
... solar farms which provide small communities with electricity so that the grid is relieved of pressure. I know a solar farm that was launched last year in the Northern Cape is able to power up to about 80 000 households. The same thing can be done when it comes to small towns.
However, Minister, we do indeed have a problem that ...
... siza kumane sigalela engxoweni evuzayo. Siphinde futhi sigalele engxoweni ufumanise ukuba ayivuzi nje kuba ingxowa inemingxunya koko kukho namasela esingawanqakuliyo xa esitya loo mali. Ngoko ke, kufuneka sinqakule amasela, siphucule indlela yokusebenza. Ngokwenene nangenyaniso, singaluxoxa lona uchuku kodwa umbane lo siyawufuna ukuphuhlisa uqoqosho.
Singapolitika, sithande, kodwa okubalulekileyo kukuba sifuna u-Eskom ame ngeenyawo ... (Translation of isiXhosa paragraph follows.)
[... we will keep on pouring our money into leaking coffers; pour our money again into coffers only to find out that they are not leaking just because they have difficulties, but because there are thieves we are unable to catch stealing the money. Therefore, we must catch those thieves and improve working conditions. Honestly, we debate about our differences, but we need electricity to grow our economy. We can be political and love each other, but what is important is that we need Eskom to function properly ...]
... so that in future they account more about the programmes they put in place, including the issues of guarantees where we do not know what is happening. I thank you very much and ...
... andideleli ... [... I’m not impertinent ...]
... hon Frolick. Thank you kindly.
Dr P J GROENEWALD: Voorsitter, hierdie twee wetsontwerpe kom eintlik daarop neer dat Eskom na die belastingbetaler toe gaan en vir R23 miljard vra om sy funksies te kan uitvoer.
Daar is nie ’n manier waarop die VF Plus hierdie twee wetsontwerpe sal ondersteun nie, en ek sal verduidelik hoekom. Ek wil begin deur te sê dat Frankryk teen die einde van die 18de eeu ’n koningin met die naam van Marie Antoinette gehad het. Die mense het swaar geleef in daardie tyd. Hulle was arm; hulle het nie kos gehad nie. Toe het die gepeupel na die kasteel beweeg en gesê dat hulle honger is en dat hulle graag kos wil hê. Toe wou Marie Antoinette weet wat die probleem is. Hoekom vra hulle vir brood? Gee vir hulle koek. Die uiteinde was natuurlik dat haar kop nie lank daarna nie afgekap is, letterlik.
Vandag kom Eskom en hy kom vra vir die belastingbetaler
R23 miljard, maar Vrydag, oor twee dae, is daar ’n tender wat uitgesit word waarin daar gevra word dat daar sekere kruideniersware en voedsel gelewer aan die korporatiewe kantoor by Megawatt Park. Wat sluit dit in? Dit sluit, onder andere, in die gereelde lewering van 300 koeke, insluitend Swartwoudkoeke, Bar One-koeke, en gebakte vlakoeke. Met ander woorde, die topbestuur van Eskom leef in weelde, en hulle eet
koek, maar dan het hulle nog die arrogansie om na die Nasionale Energiereguleerder van Suid-Afrika te gaan en te sê hulle vra nog ’n addisionele – hulle het dit darem nou bietjie aangepas – 9,4% waar hulle aanvanklik 12,3% wou hê.
Dit beteken dat die belastingbetaler maar net eenvoudig moet opdok. Is dit as gevolg van ’n krisissituasie? Almal dink dit is ’n krisis, maar wie het die krisis veroorsaak? Dit is die bestuur van Eskom wat self daardie krisis veroorsaak het en die ANC-beheerde regering wat die enigste aandeelhouer is. Met ander woorde, hy kan nie sy bates behoorlik bestuur nie. As ons gaan kyk na die eenhede – na die 121 eenhede wat daar is – is daar basies net 49 wat behoorlik funksioneer. As gevolg van gedurige onderhoudswerk wat agterweë gelaat is weens onkundige en verkeerde aanwending van hul arbeidsmag het ons probleme.
Eskom kom en hulle sê dat daar 1 183 wittes is wat uit Eskom moet gee pad. Dit sluit in ingenieurs en hoogsgeskoolde ambagslui in, maar dan sê hulle dat hulle ’n probleem het.
By Duvha was daar ’n ontploffing van meer as R1 miljard, maar u kom vra R23 miljard. Ek wil vir die regering sê, u kan bly wees dit is 2015, want as dit die 18de eeu was, is u koppe ook afgekap. Ek dank u. (Translation of Afrikaans speech follows.)
[Dr P J GROENEWALD: Chairperson, these two Bills actually come down to Eskom asking the taxpayer R23 billion in order to do its job.
There is no way the FF Plus will support these two Bills, and I will explain why. I will begin by mentioning that France at the end of the 18th century had a queen by the name of Marie Antoinette. The people had difficult lives in those times.
They were poor; they had no food. Then the masses moved towards the castle, stated they were hungry, and asked for food. Marie Antoinette wanted to know what the problem was. Why were they asking for bread? Let them eat cake. The upshot, of course, was that not long afterwards she lost her head, quite literally.
Today, Eskom comes and asks the taxpayer for R23 billion, but on Friday, in two days’ time, a tender will be issued in which it is requested that specific food and grocery items be delivered to the corporate offices at Megawatt Park. What does this include? It includes, inter alia, the regular delivery of
300 cakes, including Black Forest cake, Bar One cake, and baked custard cake. In other words, the top management of Eskom is living in luxury, and they are eating cake, but then they are arrogant enough go to the National Energy Regulator of South Africa and ask them for an additional – at least they
have now adapted this somewhat – 9,4%, when they originally wanted 12,3%.
This means that the taxpayer simply has to cough up. Is this the result of a crisis situation? Everyone thinks it is a crisis, but who caused the crisis? It is the management of Eskom and the ANC-led government, which is the only shareholder, that caused this crisis. In other words, it cannot manage its assets properly. If we look at the units – at the 121 units in operation – basically only 49 function properly. As a result of constant maintenance work that has been left in abeyance because of the ignorant and incorrect application of their labour force, we have problems. Eskom then states 1 183 whites have to leave the power utility. This includes engineers and highly skilled artisans, but then they say they have a problem.
At Duvha, there was an explosion amounting to more than
R1 billion, but you are asking for R23 billion. I want to tell government that they can count themselves lucky it is 2015, because if it had been the 18th century, they would also have lost their heads. I thank you.]
Mr W M MADISHA: Chairperson, let me start my input at the end and say that the supply of energy from renewables in our country went up from 48 MW in January 2014 to 343 MW in
December. That is an increase of 700%. The potential is truly enormous. That government is looking elsewhere is totally surprising.
With renewable energy coming online all the time, we no longer need expensive, diesel-fuelled open-cycle gas turbines. We need extensive investment in renewables. We have been asking for net metering so that the thousands of people who are generating electricity in their homes and businesses can feed into the grid. The University of Cape Town’s Energy Research Centre pointed out unintended consequences of the appropriations. That is that the Bill undermines the independent regulatory framework and will increase the cost of electricity to the poor.
Minister, tell us why Eskom is not running the renewable energy programme. Why is it purchasing coal at three times the normal price per ton? Why are municipalities not paying Eskom for electricity on time? Why was Danny Jordaan not billed for electricity for an unbelievable seven-year period? Why are some people not paying for electricity for all?
Without substantial financial restructuring at Eskom, investing more money is dangerous. Without separating Eskom into a generation company, a transmission company, and a distribution company, the crisis will continue. Does Eskom
have professional engineers and technicians of the quality and number they need? That, we believe, is a problem.
If there is time, I want to go to where I was supposed to start and say that to sell off state assets of R23 billion in the 2015-16 financial year without building new assets is criminal. Therefore, we cannot agree. It is a problem.
Mr S N SWART: Chairperson, in a certain sense, we are between a rock and a hard place, and the ACDP understands that Eskom basically will be bankrupt without today’s appropriations.
We have been given a number of briefings on the power crisis facing us and its impact on economic growth prospects. Today, we are requested for an additional R23 billion allocation.
This is in addition to Eskom’s application for a substantial tariff increase that is being heard before Nersa at the moment. That would be on top of an already 12% granted earlier this year. In addition, in terms of the second Bill being considered today, government’s R60 billion loan will be converted into equity. On top of all of that, there is a further R280 billion needed to address supply challenges over the medium term. These are staggering figures, but we need to understand that we need to keep the lights on.
Whilst there is an urgent need to stabilise Eskom’s finances in the short term, the ACDP wishes to highlight a number of concerns pointed out in the Standing Committee on Appropriations’ report. It is significant that government will potentially forego R86 billion in possible future interest as a result of the loan conversion equity. Have we, as parliamentarians, fully understood the consequences of that decision?
The further question is whether these cash injections do not undermine the role played by Nersa. It sits – it is busy with this process, a lengthy process at great expense – and comes to a determination. Then, without further consultation with Nersa, a cash injection is given or a further guarantee is given to keep the lights on. Surely that undermines the role that is played by an independent regulator. I must say that yesterday’s hearings at Nersa – those Members of Parliament that saw it on television, when the acting chief executive officer of Eskom, Brian Molefe, seemed unaware of a crucial letter from National Treasury, as well as a report authored by Eskom itself – did not inspire confidence.
We are also concerned that we pay so much per litre of diesel and the cost of coal, as indicated by the speakers. Whilst we appreciate that we need to take steps to stabilise the finances and keep the lights on, we need a far better
assurance that we aren’t pumping money down a black hole without proper transparency and full accountability. We would also need to fully appreciate and look at a turnaround strategy before we are able to support these Bills. I thank you.
Ms R E NYALUNGU: Chairperson, hon Ministers, Deputy Ministers, hon members, and guests in the gallery, dumelang [good day].
As the chairperson has already outlined the Bills, I would like to continue with the first focus area, which is the mass roll-out of electricity since 1994 and how it has contributed to a better life for all. The Reconstruction and Development Programme, which informs government and its programmes, states that “no political democracy can survive and flourish if the mass of our people remain in poverty” due to a lack of services for a better life.
Before 1994, only a select few in the country enjoyed electricity - that was the minority in urban areas, companies, and rich people only. In terms of rural and deep rural areas, there was no electricity at all and no sign of people getting electricity. Therefore, in 1955 people decided to sit down and write a freedom charter. One of the priorities in our Freedom Charter is electricity, amongst other services. The Freedom Charter stated clearly that people shall get free electricity. So, in 1994, when a newly elected government was voted into
power by way of democracy, people started to enjoy freedom. Since then, government has sped up the process of service delivery by supplying electricity to all households, whether you have money or not, whether you are rich or poor, whether you live in urban or in rural areas, including squatter camps. Even poor people are enjoying freedom, because they can afford to buy electricity. When buying electricity, they get half the units free of charge. For example, if a person buys electricity for R20, they get R10’s units free of charge.
Indeed, the ANC is a caring movement. [Interjections.]
Another area of focus is government’s indigent policy. In 2000, the ANC-led government announced its plans to provide free basic services, including energy, to indigent households. The Free Basic Electricity policy was introduced by the Department of Energy in 2003 with the aim to support indigent households in meeting their basic needs. The focus is now on reaching those remaining communities without access to basic services, particularly in informal settlements, in urban areas, and in deep rural areas.
The last focus area is the valuable contribution of consumers, households, businesses, departments, and municipalities for financial sustainability. The ANC-led government formulated good policies – the Public Finance Management Act, the Local
Government: Municipal Finance Management Act, and Treasury Regulations – that all people must adhere to.
On the issue of financial sustainability, all officials who are working in supply chain management must abide by the rules and regulations of the Public Finance Management Act and all who deal with finance must account for it. New policies must be developed to capacitate all officials, including mayors, because they are the financial accounting officers of municipalities. All funds must be accounted for, irrespective of ... [Interjections.] ... whoever.
Financial policies must be reviewed from time to time for better services, and it must be economically effective, efficient, and transparent. That will make the sustainability of finance contribute to the economy of the country, and it will also sustain the Consumer Price Index and gross domestic product.
Bahaeso, a re tshehetseng Eskom hore motho e mong le e mong a fumane molemo wa ho sebedisa motlakase. [Fellow South Africans, let us support Eskom in order to ensure that each and every person benefits from electricity.]
The ANC supports the Bill. Thank you. [Applause.]
Mr A R MCLOUGHLIN: Hon House Chair, the task before us today is to pass into law a Bill that amends a previous Act of this House. In 2008, the Third Parliament appropriated to Eskom the sum of R60 billion by way of a subordinated loan. This might not sound like such a big deal, but let’s unpack it a little.
Firstly, R60 billion. If, like me, you don’t easily grasp large numbers, let me illustrate: R60 billion is sixty thousand million rand. With that, Eskom could have given each of the country’s approximately 3,5 million poor families a generator and a year’s supply of fuel. That amount of money could run a municipality with 100 000 residents for 60 years!
Whose money was it, hon members? It was yours and mine – and every one of our millions of taxpayers. This House, on our behalf, lent it to Eskom. We were led to believe that this loan would solve Eskom’s problems. We were led to believe that it would solve the country’s electricity supply problems. For that reason, this House agreed to the loan. As they say in the classics: It seemed like a good idea at the time.
What did Eskom do with that money? Well, I cannot tell you. I can, however, tell you that the new power stations are way over budget, way behind schedule, and not yet completed. I can tell you that we all pay more for electricity now than we did before. I can tell you that load shedding is still happening
and will continue to happen. I can tell you that Eskom executives have received very handsome bonuses over the last several years.
Secondly, it was a subordinated loan. This is a loan that only gets paid after all other debts have been paid. Eskom, at the time, had already borrowed even bigger amounts from other lenders. These are commercial lenders – not friendly lenders like government, but tough commercial bankers and financial institutions. However, this is not so unusual because government is the sole owner of Eskom anyway. So, it made sense not to cause alarm amongst the commercial lenders, but it also meant that government now carried a greater risk. If the loan and interest were not repaid, other plans of government would be unfunded, and therefore many of our people would lose out on service delivery that would now not happen due to lack of funds.
Thirdly, the granting of this loan was conditional upon the signing of a contract between the Minister of Finance and Eskom, containing certain terms and conditions. The Act provided that the loan was to be for a period of 30 years and bear interest at market-related rates. This meant that, although it would only be paid after all other debts that Eskom had, it would, nonetheless, be just as good an investment for the government as for any other lender. In
fact, the loan of R60 billion would generate interest to the value of R82,6 billion. This would have seemed like a pretty good idea and a good deal. So much for the 2008 Act.
We are now confronted with this Bill that seeks to amend the 2008 Act by changing its name, deleting any reference to the loan agreement, and converting the subordinated loan into equity with a value of R60 billion. So, what’s wrong with that, you may ask? I’ll tell you what’s wrong with that. It means that we are converting what was a sound, interest- bearing investment into exactly nothing!
You may argue that it cannot possibly be nothing. What about the interest earned on the investment up until now? That must be worth something. Well, unfortunately, behind our backs, the Minister of Finance and Eskom actually agreed, contrary to provisions of the Act, that interest would only be payable once Eskom achieved unrealistically high financial results, effectively making the loan interest free for at least
12 years. On the strength of this, Eskom treated a portion of the loan as equity in their books. So, after seven years of receiving no interest, the government’s investment of
R60 billion is now valued at only R29,5 billion. I call that unscrupulous and unconscionable fraud against every citizen of this nation! [Applause.]
You may also argue that I am incorrect because, in exchange for the loan, government is getting equity in Eskom. Equity is normally shares that receive dividend payments from time to time – an exchange of one type of investment for another.
However, this is another fiction. How do you get given a share of something that is already yours? Eskom has also never paid a dividend, has no plans to do so, and probably never will – not much of an investment! On top of that, Eskom has also got government over a barrel because, if government doesn’t bail them out, our national economy could be compromised and possibly even collapse.
While I understand that Eskom needs to be funded in order to fulfil its mandate, this is not the way to do it. We cannot support a Bill that effectively promotes collusion, fraud, deception, and dishonesty. The DA cannot support this Bill and calls on all members of this House to reject it. [Applause.]
Mr N E GCWABAZA: Hon House Chairperson, we should acknowledge that the load shedding the country has experienced in the recent years and in the most recent weeks is the ultimate outcome of the aging electricity infrastructure which the democratic government inherited in 1994.
Mr D J MAYNIER: So why didn’t you fix it?
Mr N E GCWABAZA: This aging infrastructure is now costing billions of rand to repair and to maintain ...
An HON MEMBER: Whose fault is that? [Interjections.]
Mr N E GCWABAZA: ... and at the same time as this ANC-led democratic government is building the new power plants, namely Medupi, Kusile, and Ingula, to ensure long-term sustainable electricity supply at affordable tariffs. [Interjections.] It must be said that the last power station built was somewhere in the early 1980s; the rest were built around the 1930s and 1940s. Therefore, the current situation cannot be blamed solely on the ANC-led government. [Interjections.]
Domestic and foreign direct investment in new businesses and the emerging small, medium and micro enterprise, SMME, sector, over the past 21 years of the democratic dispensation, has brought into sharp focus the need and the urgency with which government must diversify the electricity generating sector, with Eskom playing a leading role. We must ensure that our country has security of supply in order to support economic growth and development as well as to create 11 million decent jobs by 2030 and overcome poverty and inequality, in line with the objectives of the National Development Plan.
To diversify the generation of electricity, the ANC is of the view that the implementation of the IPP and the public-private partnership policies must be fast-tracked so that wind, solar, and hydro energy generation supports the quest for energy security to the benefit of all our people for economic growth and the reduction of gas emissions.
The issue we are highlighting in this debate today should persuade all hon members in this House to pass the Eskom Special Appropriation Bill and the Eskom Subordinated Loan Special Appropriation Amendment Bill in order to appropriate the funds as reflected in the Bills to Eskom as a government equity investment. Eskom requires urgent capitalisation to address present and future energy generation and supply.
I-ANC iphakamisa le mithetho ukuze le Ndlu ehloniphekile yesiShayamthetho sikaZwelonke iyigcobe ngokugcwele ngoba bonke abantu ezweni, ozosimboni abakhulu nabancane kanye nosomabhizinisi abafufusayo balindele ukuzwa ukuthi le nkinga yokuphela kukagesi siyinqoba kanjani futhi nini ukuze umnotho ukhule, kwakheke imisebenzi kuphele nobubha. Abantu abangakawutholi ugesi bafuna uhulumeni wentandoyeningi abanikeze ithemba lokuthi nakubo uzofinyelela ugesi. Yile nhlangano ye-ANC kuphela ekwazi ukunikeza abantu bakithi nosomabhizinisi isiqiniseko sokuthi le nkinga iyaxazululeka. (Translation of isiZulu paragraph follows.)
[The ANC is tabling these Bills for this august National Assembly to debate on them extensively because everyone, big and small industries as well as small business, is waiting to hear when and how we are going to resolve the issue of load shedding in order for the economy to grow, in order for job creation, and in order to overcome poverty. People with no electricity want the democratically elected government to assure them that it will also reach them. The ANC is the only party that is able to assure our people and the business owners that this issue is being attended to.]
Informed estimates suggest that for every kilowatt hour of electricity not supplied, the economy loses R85. The Financial and Fiscal Commission informs us that a lack of sustained supply of electricity could result in a 1% decline in the rate of economic growth in 2015, whereas a consistent electricity supply could secure a 0,4% growth rate during this year. So, effectively, at stake here is 1,4% of economic growth, and we must ensure that we secure this 1,4% economic growth rate in 2015.
We must pursue the radical transformation of our economy to attain annual economic growth of 5% by 2019. Therefore, we would be failing in our duty to secure this much-needed growth if we do not pass the two Bills so that we assist Eskom to generate and supply electricity sustainably. Clearly, there
are huge economic and social benefits which our people and businesses will enjoy when hon members pass these Eskom Special Appropriation Bills at the end of this debate.
The DA suggests that Eskom is leaderless, yet we were sitting with them and other political parties two weeks ago when Eskom addressed us and assured us that they have a maintenance new build programme that will achieve stability of electricity supply and financial stability by 2019. The DA further laments that the tariffs quoted by Eskom will have devastating effects on the economy, yet the DA was in the same meeting which informed us that, up to now, the tariffs that have been charged have been below the cost that Eskom has incurred in generating and supplying electricity. Even the tariff that is requested now, experts say it is still below the cost of generating, supplying, and maintaining electricity. [Interjections.]
Well, our EFF friends have left the House, but it is very interesting to note, in their absence, that today they speak on behalf of and absolve the apartheid regime that neglected the maintenance of the electricity plants, neglected the building of new power plants and, in fact ... [Interjections.]
... denied millions of the majority of our people access to electricity. [Interjections.]
An HON MEMBER: You are doing the same! You are doing the same!
Mr N E GCWABAZA: Yes, we are building new power plants, and we are maintaining the old ones! [Interjections.] Interestingly, the FF Plus has joined the EFF as well in this denial and absolving of the apartheid government.
Hon McLoughlin, it is the only caring ANC-led government that can foresee that demanding R83 billion in interest from Eskom will only further disadvantage the majority of our people, who, at the moment, are benefiting from the indigent policy that the hon Nyalungu spoke about earlier.
The ANC commends the Eskom Special Appropriation Bill and the Eskom Subordinated Loan Special Appropriation Amendment Bill to this House, and requests Parliament to pass these two Bills. I thank you. [Applause.]
The MINISTER OF FINANCE: Hon House Chair, my thanks go to members who raised issues in relation to the two Eskom Bills and to the committee for having dealt with this matter over the past few weeks.
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members! There is still too much noise in the House. We are dealing with a very important matter, and really the attention that is
supposed to be given to this debate is not there. Can we observe and listen to what the Minister has to say? Continue, hon Minister.
The MINISTER OF FINANCE: House Chair, since November last year, Eskom has had to undertake rotational load shedding in order to balance the supply and demand for electricity. The inadequate electricity supply is indeed a serious constraint on economic growth and development, as well as on job creation.
The construction and commissioning of the Medupi, Kusile, and Ingula power stations have experienced significant delays. The impact of the delays in the build programme is not only the associated cost increases but the shortfall in electricity supply that has resulted.
In the absence of adequate generation capacity, Eskom relied on running power plants at higher load factors than normal and on delaying maintenance, as the hon Madisha noted. Over the past five years, the performance of the power plants has deteriorated, and they have become more unreliable with a number of serious breakdowns having taken place, as we have seen at the Duvha and Majuba power stations and the rest.
Without adequate maintenance, the decline in plant performance would continue. To remedy the situation, Eskom has been
required to take more plants offline in order to undertake the required maintenance.
To make up for the shortfall in electricity supply, Eskom has also been using its more expensive gas-fired power stations. The increased capital expenditure costs, higher maintenance costs, and reduced revenue being generated due to lower demand have resulted in a deterioration of Eskom’s financial position.
In response to the risks and challenges faced by Eskom, in September last year, Cabinet approved a support package for Eskom. Among other interventions, the government support package included a R23 billion equity injection into Eskom and the conversion to equity of the R60 billion subordinated loan that had been provided to Eskom between 2008 and 2011. These commitments were announced in our Medium-Term Budget Policy Statement last year and reaffirmed in our Budget this year.
The Eskom Special Appropriation Bill that we are debating today provides for the appropriation of the R23 billion allocation to Eskom, and the Eskom Subordinated Loan Special Appropriation Amendment Bill enables the conversion of the subordinated loan.
A number of points have been raised. The chair of the standing committee indicated that a number of hearings were held and
that valuable inputs were received from stakeholders. Indeed, we will be putting in place strict conditions, as we have said, in the legislation. We are also going to be putting in place a very rigid procurement programme, and we will be monitoring Eskom in its execution.
All the members have spoken about cost-reflective tariffs whilst protecting the poor and the economy at large. We agree with those. The renewable energy programme has indeed proven to be one of the alternatives to the situation we are confronted with, and we have now seen the fourth window of our IPPs being opened, and we are seeing considerable progress in that regard.
The hon Figg speaks about how Eskom is in trouble, that it is broke, that it is leaderless, that it is in massive trouble, but when we put in place mechanisms to address those challenges, he rejects the Bill. [Interjections.]
An HON MEMBER: What were you selling? Tell us.
The MINISTER OF FINANCE: He says Eskom is in need of capacity, and what we are doing here is making sure that that capacity can indeed be given to Eskom. [Interjections.] The blackouts, despite promises, have been a combination of both planned and
unplanned outages. What we are doing here precisely is addressing the challenges that he has put before the House.
As you hear from the other side, the biggest questions are these: What are you selling? Which assets are you selling? I can indeed confirm that those assets are nonstrategic to government. I can say that before very long – and I said, before the end of June – you will know which assets. Regarding the process that was followed, I did indicate that a market- sounding exercise was held, and we are convinced that the decision we have taken is the correct one.
Hon Nkomo, indeed, the quarterly reports will come before this House, and I would want to implore the committee to exercise the oversight that we have requested. Indeed, we do not have a choice, hon Nkomo, but to make sure that this state asset is put on a proper financial footing.
Hon Shaik Emam, regarding the secrecy on the sale of assets, I can confirm that very soon and at an appropriate time, the information will be before this House, and you will agree with us that we have taken the right decision. I can also say that you have identified, hon Shaik Emam, the issue of alternative energy sources, as I have said. The IPPs, coal generation, and all other forms of sourcing energy have indeed started providing the energy that the country requires. With regard to
the R200-billion plus that you say is required, if we inject the equity and convert the subordinated loan, Eskom will be in a better position to go out into the market to raise funds, and that is precisely what we are doing.
Yes, hon Kwankwa, we want to close the leaking bucket. Working with Parliament, I think we are in a position, and we have put in place mechanisms to do that. However, Parliament must assist us in exercising oversight. All committees, including the appropriations committee and the public enterprises committee, must also assist us in making sure that the entity reports on a regular basis on the state funds that have been injected.
The hon Groenewald is against the taxpayer funding the entity. It is not clear what he expects us to do if a state entity is doing what any other company would do: look at the shareholder in order to actually beef up its own balance sheet. That is precisely what we are doing.
Hon Madisha, renewable energy is indeed on track, and that is what we are working on.
The hon Swart refers to us being between a rock and a hard place in terms of the conversion of the R60 billion plus the R280 billion, but the fact of the matter is that Eskom will
now be in a better position to use its balance sheet to raise additional resources.
I would again want to thank the committee members for the work they have done to get to where we are, and I would want to assure this House that the decision that this House is about to take is the right decision, and that, with that decision, we will be able to restore Eskom’s financial situation and be able to generate jobs and get our economy running again. Thank you very much, hon House Chair, and everybody that has supported the Bills. [Applause.]
Debate concluded.
Question put: That the Eskom Special Appropriation Bill be read a first time.
Division demanded.
The House divided.
AYES - 236: Abrahams, B L; Adams, F; Adams, P E; Bam-Mugwanya, V; Bapela, K O; Basson, J V; Bekwa, S D; Beukman, F; Bhengu, P; Bhengu, N R; Bhengu, F; Bilankulu, N K; Bongo, B T; Booi, M S; Boroto, M G; Brown, L; Capa, R N; Capa, N; Cele, B H; Cele, M A; Chikunga, L S; Chiloane, T D; Chohan, F I; Chueu, M P;
Coleman, E M; Cronin, J P; Cwele, S C; Davies, R H; Dirks, M A; Dlakude, D E; Dlamini, B O; Dlamini-Dubazana, Z S; Dlodlo, A; Dlomo, B J; Dlulane, B N; Dunjwa, M L; Ebrahim, E S; Esterhuizen, J A; Faku, Z C; Filtane, M L W; Frolick, C T; Fubbs, J L; Galo, M P; Gamede, D D; Gcwabaza, N E; Gigaba, K M N; Gina, N; Goqwana, M B; Gordhan, P J; Gumede, D M; Hanekom, D A; Hlengwa, M; Holomisa, S P; Jeffery, J H; Johnson, M; Jonas, M H; Kekana, M D; Kekana, E; Kekana, C D; Kekana, P S; Kekana, H B; Kenye, T E; Khoarai, L P; Khosa, D H; Khoza, T Z M; Khoza, M B; Khubisa, N M; Khunou, N P; Kilian, J D; Koornhof, G W; Koornhof, N J J v R; Kota-Fredricks, Z A; Kubayi, M T; Kwankwa, N L S; Landers, L T; Lesoma, R M M; Letsatsi-Duba, D B; Loliwe, F S; Luyenge, Z; Luzipo, S; Maake, J J; Mabasa, X; Mabe, B P; Mabe, P P; Mabija, L; Mabika, M S; Mabilo, S P; Madella, A F; Madlopha, C Q; Maesela, P; Mafolo, M V; Mafu, N N; Magadla, N W; Magadzi, D P; Mahambehlala, T; Mahlangu, D G; Mahlangu, J L; Maila, M S A; Majola, F Z; Makhubela-Mashele, L S; Makhubele, Z S; Makondo, T; Makwetla, S P; Malgas, H H; Maluleke, J M; Manamela, K B; Manana, M C; Manana, M N S; Manana, D P; Mandela, Z M D; Mantashe, P T; Maphatsoe , E R K; Mapisa-Nqakula, N N; Mapulane, M P; Martins, B A D; Masango, M S A; Masehela, E K M; Mashatile, S P; Mashego-Dlamini, K C; Mashile, B L; Masondo, N A; Masuku, M B; Maswanganyi, M J; Mathale, C C; Mathebe, D H; Matlala, M H; Matsimbi, C; Mavunda, R T; Maxegwana, C H M; Mbalula, F A; Mchunu, S; Mdakane, M R; Memela, T C; Mjobo, L N; Mkongi, B M;
Mmemezi, H M Z; Mmola, M P; Mmusi, S G; Mncwabe, S C;
Mncwango,
M
A;
Mnganga - Gcabashe, L A; Mnguni, P J; Mnguni,
D; Mnisi,
N
A;
Mogotsi, V P; Mokoto, N R; Molebatsi, M A;
Molewa, B
E
E;
Morutoa, M R; Mosala, I; Mothapo, M R M;
Motimele,
M
S;
Motshekga, M A; Motshekga, M S; Motsoaledi, P
A; Mpontshane, A M; Mpumlwana, L K B; Msimang, C T; Mthembu, J M; Mthethwa, E M; Mudau, A M; Nchabeleng, M E; Ndaba, C N; Ndabeni-Abrahams, S T; Ndongeni, N; Nel, A C; Nene, N M; Nesi, B A; Ngcobo, B T; Ngwenya-Mabila, P C; Nkadimeng, M F; Nkomo, S J; Nkwinti, G E; Nobanda, G N; November, N T; Nqakula, C; Ntombela, M L D; Nxesi, T W; Nyalungu, R E; Nyambi, H V; Nzimande, B E; Oliphant, M N; Oliphant, G G; Pandor, G N M; Patel, E; Peters, E D; Pikinini, I A; Pilane-Majake, M C C; Qikani, A D N; Radebe, J T; Radebe, B A; Radebe, G S; Ralegoma, S M; Ramaphosa, M C; Ramatlakane, L; Ramatlhodi, N A; Ramokhoase, T R J E; Rantho, D Z; Raphuti, D D; Scheepers, M A; Semenya, M R; September, C C; Shabangu, S; Shaik Emam, A M; Shope-Sithole, S C N; Sibande, M P; Singh, N; Sisulu, L N; Sithole, K P; Siwela, E K; Sizani, P S; Skosana, J J; Skwatsha, M; Smith, V G; Sotyu, M M; Thabethe, E; Thomson, B; Tleane, S A; Tobias, T V; Tom, X S; Tongwane, T M A; Tseke, G K; Tseli, R M; Tsenoli, S L; Tsoleli, S P; Tsotetsi, D R; Tuck, A; Van der Merwe, L L; Van Rooyen, D D D; Van Schalkwyk, S R; Williams, A J; Xasa, T; Xego-Sovita, S T; Yengeni, L E; Zokwana, S; Zulu, L D.
NOES - 5: Figg, M J; McLoughlin, A R; Mokgalapa, S; Steenhuisen, J H; Waters, M.
Question agreed to.
Eskom Special Appropriation Bill accordingly read a first time.
Question put: That the Eskom Subordinated Loan Special Appropriation Amendment Bill (2008-09 to 2010-11 Financial Years) be read a first time.
Question agreed to (Democratic Alliance dissenting).
Eskom Subordinated Loan Special Appropriation Amendment Bill (2008-09 to 2010-11 Financial Years) accordingly read a first time.
ESKOM SPECIAL APPROPRIATION BILL
(Second Reading debate)
ESKOM SUBORDINATED LOAN SPECIAL APPROPRIATION AMENDMENT BILL
(Second Reading debate)
There was no debate.
Question put: That the Eskom Special Appropriation Bill be read a second time.
Question agreed to (Democratic Alliance dissenting).
Eskom Special Appropriation Bill accordingly read a second time.
Question put: That the Eskom Subordinated Loan Special Appropriation Amendment Bill (2008-09 to 2010-11 Financial Years) be read a second time.
Question agreed to (Democratic Alliance dissenting).
Eskom Subordinated Loan Special Appropriation Amendment Bill (2008-09 to 2010-11 Financial Years) accordingly read a second time.
CONSIDERATION OF CANDIDATE NOMINATED FOR APPOINTMENT AS INSPECTOR-GENERAL OF INTELLIGENCE SERVICES
The CHIEF WHIP OF THE MAJORITY PARTY: Hon House Chair, I move, in terms of section 97(c), that the item stand over. [Interjections.]
The CHIEF WHIP OF THE OPPOSITION: Why’s that? Why’s that?
The HOUSE CHAIRPERSON (Ms A T Didiza): Hon members, a motion having been moved, the item therefore stands over. [Interjections.] [Applause.]
CONSIDERATION OF REPORT OF JOINT STANDING COMMITTEE ON INTELLIGENCE – ACTIVITIES OF COMMITTEE AFTER FIVE MONTHS OF ESTABLISHMENT, AS STIPULATED IN INTELLIGENCE SERVICES OVERSIGHT ACT, ACT 40 OF 1994
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY: Hon House Chair, I move that the Report be adopted.
The CHIEF WHIP OF THE OPPOSITION: Madam House Chair, the DA requested a declaration on this matter.
Declaration of vote:
Mr D J STUBBE: Madam House Chair, this is the first time since 2010 that the Joint Standing Committee on Intelligence, JSCI, is able to produce and submit an annual report to Parliament, on time. Indeed, this is a step in the right direction.
During the Fourth Parliament, under the chairmanship of Adv Cecil Burgess, the JSCI failed to comply with the
Intelligence Services Oversight Act, Act 40 of 1994, and the submission of the annual report for the period 2010-11 and 2011-12. In addition, the committee report for the period 2012-13 was only tabled on 10 April 2014. Not only were these reports late, but there are still unfinished issues, like the case of Gen Mdluli, the investigation relating to the group
life scheme, and some other cases. It is imperative that these cases are fast-tracked, finalised, and then brought back to the JSCI to be included in its annual report.
Current legislation is also outdated and needs to be considered to bring the functions of the JSCI in line with what is practical. For example, the JSCI needs to meet with the President on a quarterly basis. During the Fourth Parliament, this only happened on three occasions, while in this Fifth Parliament, we have only been able to meet once. It seems that this arrangement is impractical and should be reconsidered.
Another point to debate is whether the Office of the Minister of State Security should be put through an oversight exercise and not only the entities of state security. The current JSCI can only enhance itself if we keep up with what is expected of us.
It is imperative that the JSCI tables comprehensive annual reports on time so that the committee begins to build public trust by conducting effective scrutiny and oversight of the national Intelligence structures in Parliament. The electorate holds Parliament accountable for the work of all government agencies funded by public money, and the Intelligence Service falls under this mandate entirely. The DA supports the annual report, as tabled. I thank you.
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REQUEST FOR PERMISSION IN TERMS OF RULE 249(3)(B) TO INQUIRE INTO AMENDING OTHER PROVISIONS OF PERFORMING ANIMALS PROTECTION ACT, ACT 24 OF 1935
Ms M R SEMENYA: Hon House Chair, Ministers and Deputy Ministers, hon members, the Portfolio Committee on Agriculture, Forestry and Fisheries considered the subject matter of the Performing Animals Protection Amendment Bill, as referred to it by the National Assembly on 3 March 2015. The Bill seeks to amend the provisions of the Performing Animals Protection Act, Act 24 of 1935, which is the principal Act, in line with the ruling of the Constitutional Court in the case of the National Society for the Prevention of Cruelty to
Animals v Minister of Agriculture, Forestry and Fisheries & Others, (CCT 120/12) [2013] ZACC 26.
The main issue under consideration, in this case, was whether or not the assignment to magistrates to have power to decide on the application for licences and certificates concerning animal training and exhibition was consistent with the doctrine of the separation of powers, as enshrined in the Constitution of the Republic of South Africa. The High Court found that the function of issuing the licence and certificate, as envisaged in sections 2 and 3 of the principal Act, is an executive or administrative function, which has nothing to do with the core judiciary function of a magistrate. These provisions, therefore, violated the separation of powers and were therefore unconstitutional.
Based on the ruling of the Constitutional Court, the Minister of Agriculture, Forestry and Fisheries tabled before Parliament the Performing Animals Protection Amendment Bill that focused mainly on repealing sections 2 and 3 and inserting sections 3(a) to 3(l). Given the complex nature of the subject matter of animal welfare, the developments that have taken place over the past decades in terms of the recognition of animals as sentient beings, as part of the global progressive welfare rights agenda, as well as the absence of the common understanding and consensus on animal
welfare rights in South Africa, have compounded the complexity of the subject matter dealt with during the portfolio committee deliberations on the Bill.
It must be noted that the principal Act, in its current form, does not adequately cover the protection of performing animals. As such, there is a serious deficiency in the Bill, particularly in the absence of overarching animal welfare policy. It is therefore paramount to the portfolio committee that it may be necessary to amend additional provisions of the principal Act which were not recommended in the Bill, as introduced to the National Assembly.
The committee now seeks to amend certain other additional provisions of the principal Act. In addition, it requests the permission of the National Assembly in order to report on the further amendment of the principal Act, other than those presented in the Bill, in terms of National Assembly Rule 249. Rule 249 stipulates that, if the committee is dealing with a Bill amending the provisions of the legislation, the committee seeks the permission of the National Assembly to inquire into amending other provisions of that legislation.
In particular, these relate to section 8 of the principal Act. This makes provision for penalties and states that, in addition to the penalty provided for in section 8(1), it shall
be lawful for a magistrate to suspend a licence for such period as he may determine, not exceeding one year. [Interjections.] I, therefore, request permission to amend certain provisions in the Bill. Thank you. [Time expired.]
Debate concluded.
Declarations of vote:
Ms A STEYN: Chairperson, on 11 July 2013, the Constitutional Court held that sections 2 and 3 of the Performing Animals Protection Act were inconsistent with the Constitution but suspended the order of invalidity for 18 months, providing the legislature with the opportunity to correct the problems with the Act by 10 January 2015. The Constitutional Court again had to extend the period of suspension of the order until
12 July 2015, this year. Once again, this deadline is not going to be met.
The DA would like to take this opportunity to criticise the Department of Agriculture, Forestry and Fisheries for its snail-paced reaction to the Constitutional Court’s order and, secondly, its poor performance in drafting the amending Bill. The reason why this portfolio committee has to ask for the extension period is that we found that many sections of the draft Bill were unconstitutional. The department had missed an opportunity to ensure that the rights of performing animals
are duly protected by failing to think of new amendments to this outdated piece of legislation. We are dealing with a 1935 Act.
The time factor is constantly being used as an excuse by the department for its lackadaisical approach to the amendment of this legislation, yet the Bill only came before Parliament earlier this year – over one and a half years after the Constitutional Court judgment was delivered.
Mahatma Gandhi is widely attributed as saying, “The greatness of a nation and its moral progress can be judged by the way its animals are treated”. While this amending Bill deals with licensing of performing animals, no one can deny that animal welfare legislation, in general, is sorely lacking in South Africa, and we implore the department to act upon its promise to draft an overarching animal welfare Bill as soon as possible.
The DA supports this request for the extension of the period so as to provide the committee with more time to ensure that the amending Bill is a sound piece of legislation, and not merely rushed through Parliament, opening the door for further court challenges at a later stage. Thank you, Chair.
Mr S C MNCWABE: Hon Chairperson and hon members of the House, the NFP supports the request by the Portfolio Committee on Agriculture, Forestry and Fisheries in terms of Rule 249(3)(b), to inquire into amending certain provisions of the Performing Animals Protection Act, Act 24 of 1935.
The NFP recognises that, in its current form, the Act contains provisions which have been declared unconstitutional and which have to be rectified. In addition, we also recognised that the Act is in need of several technical amendments to bring about coherence and cogency. I thank you.
Mr M L W FILTANE: Chair, the UDM supports the request of the committee. The Act says, “To protect the animals”. The amendments serve to be in compliance with the Constitution, which was not the case before. These amendments will help to regulate the handling of animals by their users in entertainment as well as in guarding. These amendments are urgent. The original date was 12 July, but given that it is practically impossible to meet the deadline, we have to support further extensions.
In fact, the amendments seek to improve even other clauses which were not objected to by the Constitutional Court. So, we support this request. I thank you.
Mr M HLENGWA: Hon House Chairperson, the IFP supports this request, and I think we must put on record that a wise man once said that failing to plan is planning to fail. The slow pace at which the department has been dealing with this matter is totally unacceptable, and I think that its urgency should prompt all of us to actually arrive at a point where we prioritise this because it has been long in the offing and should have been sorted out a long time ago.
We do understand that the Minister is correcting a mess that he inherited. I pleaded with him when he took over the department to say he must not only stand on the shoulders of his predecessors, but he must at the same time also make sure that the outstanding matters which he inherited are prioritised. We cannot have a situation whereby Parliament deals with matters which are supposed to be before it at a snail’s pace.
Quite frankly, at the end of the day, it speaks to the efficiency and the effectiveness of this House, and it should be us. We are at the forefront of ensuring that we don’t render this House one those lame-duck institutions that only does its job at the very end of a deadline. Let us be meticulous in our approach and ensure that we are doing work within a reasonable time without doing a rushed job. So, we would plead that this matter be given the urgency it deserves
because, by and large, it does hinge on quite a lot of issues which are affecting the industry and the sector. In supporting it, we are pleading that it be fast-tracked because it’s been long overdue, and we can’t continue like this. I thank you.
Mr T R J E RAMOKHOASE: House Chair, the ANC wishes to welcome the support by all the parties in the committee, as put by the chairperson. We already have agreed that this will help in making sure that it speeds up the processes of getting the Bill through and putting the law in place. The ANC welcomes the support. Thank you.
Permission accordingly granted to the Portfolio Committee on Agriculture, Forestry and Fisheries to inquire into amending other provisions of Performing Animals Protection Act, Act 24 of 1935 in terms of Rule 249(3)(b).
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES - OVERSIGHT VISIT TO KWAZULU-NATAL PROVINCE
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Ms A STEYN: Chairperson, I would urge the House to please read this report that was printed in the Announcements, Tablings and Committee Reports of 19 February 2015, as this would give you a clear indication of what is wrong in the Department of Agriculture, Forestry and Fisheries and the Department of Rural Development and Land Reform. I am glad to see that both the Minister and the Deputy Minister are here.
These are the findings, and I am going to read a few passages. The portfolio committee found that no progress had been made by the provincial department. We visited KwaZulu-Natal in November 2014. No progress had been made by the provincial department on Fetsa Tlala, and there was no accountability for the funding allocated to some of the projects for Fetsa Tlala for 2014-15.
The mechanisation programme, which is a massive programme of handing out tractors and implements to provinces, was implemented haphazardly and inconsistently. While the province reported that Jozini had only six tractors for 20 wards, one of the co-operatives under the Makhathini Irrigation Scheme indicated that they received four tractors while others received none. Most of what was reported in written reports and presented was not viable on the ground.
Minister, this is what we have been saying all along. We receive reports in Parliament, but when we do grassroots-level oversight to verify these reports, we find the information is not true. It is reflected in this report that what we found at grassroots level is not viable.
The department also wrote a report to us on Gobindlala, which we visited. What we found there was totally the opposite. We could not find the beneficiaries, and we also could not find what we were told we were going to find. We then visited the Kosi Bay communities. They said that no assistance has been provided to them or attention given to the plight of the coastal and fishing communities of Kosi Bay and Nkundusi, who were forcibly removed from their ancestral land and thereafter denied fishing access to those areas from which they derive a livelihood. I would like Parliament to listen to what the communities said. They said they had reported their land claim in September 1996 and never received a response but were told by Ezemvelo officials that they will never get the land back.
It was reported that while community members are not given fishing permits, when they fish at sea just to make a living, they get assaulted and even killed by Ezemvelo KZN Wildlife officials. This is what communities tell us happen to them in their areas. Kosi Bay’s fishing communities told us the same. The community members reported that they lodged a claim around
1997 for their ancestral land along the coast but have never received a response or any assistance from the Department of Rural Development and Land Reform. It is then no wonder that land reform is failing. It is because the departments are telling us what they think we need to hear when they come to Parliament, but they don’t implement it. We fully support this report. [Time expired.]
Ms M R SEMENYA: Chairperson, if you are appointed Shadow Minister, you just complain for the sake of complaining.
The portfolio committee has interrogated the report and called the department. The Minister moved with us and implemented the policy of mechanisation to provide assistance to smallholder farmers.
As we speak, the Minister has actually published the framework for small-scale fisheries, so communities in the coastal areas are going to benefit. We have interrogated the report, together with the Minister. The Minister accepted and moved with speed. As we speak, there is a policy on mechanisation, and the programme of Fetsa Tlala has been expanded to include more smallholder farmers. Siyaqhuba. [We are moving forward.] Thank you. [Applause.]
Mr M L W FILTANE: Chairperson, the truth of the matter is that the department is in trouble – serious trouble – and that it needs attention. Not even the Ministry can ever deny that. The officials are messing up. Lies were told to the committee when it went on oversight, pretty much to everybody’s surprise. The implementation of the department’s good, well-intended programmes – because there is nothing wrong with the programmes that are intended to change the lives of the people
– is not being actualised by the officials.
There is an absolute need for the Minister to take a closer, much more serious look at what is happening right under his nose. He needs to pay particular attention to every element. The information is hardly ever accurate. The figures that we get in the portfolio committee are not helping. There is an absolute need for the department to shape up. I wouldn’t say “or else ship out” – that time is yet to come – but there is an absolute need to move things in the direction that will help the people of South Africa.
If the status quo remains, I pity what will happen to the Minister come evaluation day. He needs to talk to his team. It is not surprising that we learnt yesterday that the deputy director-general has now had to move out of the department.
So, that is my simple message. There is an absolute need to take a closer look at how the department is operating, both at
the managerial and operational level. There is an absolute need to take a closer look and to improve. That is the simple message I have come to deliver to Parliament. I thank you.
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF STANDING COMMITTEE ON APPROPRIATIONS – THIRD QUARTER EXPENDITURE PATTERNS FOR 2014-
15 FINANCIAL YEAR
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Mr A R MCLOUGHLIN: Hon House Chair, the report by the Standing Committee on Appropriations on the Third Quarter Expenditure Patterns again emphasises the fact that several of our most important departments are woefully underperforming. Of particular note are the Department of Water and Sanitation and the Department of Co-operative Governance and Traditional Affairs. Both have underspent on their drawings by
R2,8 billion each. It is not on their budgets but on their
drawings, the amounts they have taken already but have not spent.
In a country where water is not freely available to all of its citizens, it is absolutely scandalous that after 21 years the Department of Water and Sanitation is still struggling to achieve its basic mandate and to use the resources allocated to it timeously. Similarly, the Department of Co-operative Governance and Traditional Affairs that only has 9% of the annual budget with which to ensure the smooth operation of all municipalities in the country cannot even distribute all the funds it has on hand. Most municipalities have extensive developmental needs but are left to face the wrath of unhappy residents who still await the basic services that they have been promised since before 1994 because the very people that made the promises have now failed, refused, or neglected to pay over available funds. In addition, the report contains the alarming information that while this House is today deliberating on an additional bailout package for the cash- strapped Eskom, the Department of Energy has simultaneously withheld payment for R336,4 million due to Eskom’s inability to carry out its mandate relating to solar water heating – a classic case of giving with the left hand whilst taking with the right.
In general, despite all pronouncements by the President and his cohorts, the report confirms that most departments are still far from paying all invoices within 30 days, far from filling all funded vacancies, far from achieving clean audits, and far from delivering on their respective objectives. This report clearly and succinctly sets out the problems being experienced by practically every department of this government when it comes to the spending of monies allocated to them.
However, in view of the welcome fact, this sobering and unflattering information is clearly highlighted in this report. The DA supports the report.
Mr N E GCWABAZA: Hon Chairperson, the ANC supports the report. The Standing Committee on Appropriations met with several departments and identified some weaknesses in terms of their spending and in terms of achieving the predetermined targets. However, we are convinced that the concerned departments have a plan, a convincing plan, for that matter, to achieve outcomes that are reflected in their determined plans by the end of the 2014-15 financial year.
We also have noted a great improvement in terms of spending of public funds, and therefore we think that, going forward, working together with these departments, the Standing Committee on Appropriations will be able to assist Parliament to better understand and better monitor and evaluate the
performance of the departments in the interest of our people. [Applause.]
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF STANDING COMMITTEE ON APPROPRIATIONS – OVERSIGHT VISIT TO EASTERN CAPE PROVINCE FROM
2 TO 6 FEBRUARY 2015
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Dr M J FIGG: Hon Chair, this is a declaration on an oversight visit to the Eastern Cape. An oversight visit was conducted in the Eastern Cape to monitor the performance of the Department of Water and Sanitation and the Department of Basic Education. The visit revealed some alarming failures on the part of both departments especially in regard to their expenditure. Eskom put me off here. The visit revealed some alarming failures on the part of both departments, especially to their expenditure.
Whilst the Alfred Nzo District Municipality had ordered sufficient composite ductile piping to convey water over
17 km, they had forgotten to order pipe bends and plinths on which the pipes needed to be supported. Although most of the work was done, no result could be achieved until the missing items could be obtained but, due to late payments, the suppliers were reluctant to supply the outstanding items. What compounded matters was that the pipes were sourced from China because the engineers reported that there were no local suppliers. The committee was not short of escorts, as there were no less than 30 officials accompanying us on the entire tour.
A second project visited that reportedly cost R300 000 was completed about an hour before we arrived on site. However, the estimated maximum spend on this project was R300. The visit to the schools in the area revealed serious shortcomings on the part of the contractors. One of the contractors who was allocated two of the contracts, valued at R80 million and
R75 million respectively, had a history of nonperformance on previous contracts. This contractor was also behind schedule on this contract and had already received four default letters, but his contract was still not terminated. The one school that was completed a year prior to our visit was already in need of maintenance. The general impression is that far more oversight on a more regular basis is required if the
departments are ever to perform as they should. The DA, however, supports the report.
Mr N E GCWABAZA: Hon House Chairperson, two districts were visited in the Eastern Cape, the Alfred Nzo District Municipality and the O R Tambo District Municipality. Water projects visited were in progress. However, they were found to be lagging behind in terms of completion, partly due to the inability of the contractors to finish the tasks on time but also partly because one of the pipes, for instance, was imported from outside because of the unavailability of the relevant pipe in the country.
We also visited the Accelerated Schools Infrastructure Delivery Initiative, Asidi, schools. Four of them were seen. Three showed good progress, and one had challenges in terms of being behind schedule. Part of the challenge was the contestation between the department and the local community.
However, we were informed this problem is being attended to.
We think that the challenges in the Eastern Cape so far as water provisioning is concerned need to be further looked into. The challenge that we realised was that there is a lack of planning in terms of bulk water supply. However, in the subsequent meeting with the Department of Water Affairs and Sanitation – I must add that in the presence of the Minister
herself – we were informed that there is now a 10-year plan to address the challenge of bulk water supply, not only in the Eastern Cape but throughout the country. The Asidi schools are on track. Yes, there are challenges, but we think that we must emphasise the point of integrated planning between the construction of schools and their connection to electricity and water and, of course, the sports facilities. The ANC supports the report. Thank you. [Applause.]
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON SPORT AND RECREATION – IMPLEMENTATION OF NATIONAL SPORT AND RECREATION PLAN IN LIMPOPO AND MPUMALANGA, 2014
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Mr D BERGMAN: Twenty years to the day later, we remember the efforts of our President and the Springboks in uniting a nation and driving a message of hope for our scarred nation. Our committee has a small slice of the budget when it comes to
oversight, yet we probably would be more productive on oversight than in the boardroom environment. Our trip to Mpumalanga and Limpopo, although short, yielded many results. I want to thank our chair for her openness and willingness to allow us to ask the tough questions and being inclusive to the whole committee.
Together, we uncovered equipment paid for by the Lotto years back but only ever used by mould and rust in a dark, dingy room that never saw the light of day. We witnessed kids playing on a torn-up multi-purpose court that caused more injury than joy. We witnessed how principals that benefited from many handouts still begged for more and how those principals that enjoyed no handouts made electricity out of water, so to speak.
Our intention was to see the sport and recreation plan at work. Unfortunately, we saw more of the shortcomings. Our chance at true unity and redress is built in Sport and Recreation. It is the one committee that can build and unify our nation.
We have had a taste of our potential, and we need to be hungrier to get there again. Our oversight was productive, and the fact that we went back and saw the fruits of our efforts proved just how important they are. Our communities and future
sportsmen are calling on our government for recognition and support.
The DA wishes to thank all of our men and women who wear the South African colours as proud ambassadors of our country and bring glory to the nation. I would like to take this opportunity to wish MTN-Qhubeka good luck as the first African team to enter the Tour de France. We say to them like we do to all our sportsmen and women: Bring back hope, and bring back unity. Our country needs it. We support this report.
Mr M L W FILTANE: Hon Chair, the UDM supports the report. However, there are still a few rough areas that need to be smoothed out going forward. There is a still serious gap when it comes to transformation. There is still a lot of attention to be given to that aspect, the social aspect of playing.
School sport needs serious attention. Apparently, teachers believe that it is not their second calling to help kids to advance in sport, particularly when it comes to African schools. They reckon they should be paid extra money to do that, though attempts have been made to persuade them through linking with the Department of Basic Education. However, this initiative is not yielding the desired results as yet. We still don’t have enough facilities to meet the needs of the sporting fraternities, as the old system still subsists where
a lot of Africans are involved in no more than football and netball, if that. Other sports, and especially those that pay good dollar, are still the preserve of – if not being deliberately preserved by those who are dedicated to them – the people who used to enjoy those sports in days gone by. So, as much as we support this report, the department is seriously challenged in respect of those areas I mentioned a little earlier. Thank you.
Nksk B N DLULANE: Sihlalo weNdlu ohloniphekileyo, mandithathe eli thuba ndibulele amalungu ekomiti esahamba nawo xa sasindwendwela eLimpopo naseMpumalanga. Ngokwenene sazifumana izinto abasilelayo kuzo. Ndime apha ndingqinelana nohloniphekileyo uBergman ukuba emva kokuba sasiyile thina sesiphinde saya kwakhona. Yiyo loo nto sisithi siyacela siyikomiti nanjenge-ANC ukuba mayixhaswe le ngxelo siyiphetheyo kuba ... (Translation of isiXhosa paragraph follows.)
Ms B N DLULANE: Hon House Chairperson, let me take this opportunity to thank the committee members with whom who we travelled to Limpopo and Mpumalanga. Indeed, we found what they lacked. I stand here in agreement with what the hon Bergman said that, after our last visit, we went back again. That is why as this committee and the ANC, we request that this report be adopted because ...]
... of what he just mentioned about the equipment. Both of us feel strongly that we can’t apply to the Lottery for equipment that remains unused for years and years. They made a commitment, and when they conducted a follow-up visit to Limpopo, that unused equipment was distributed from those schools where it wasn’t utilised to other schools. Another thing the committee noticed is that the National Sport and Recreation Plan, NSRP, is not being implemented in Limpopo and Mpumalanga schools. The last thing that we must emphasise is the problem of school sport. The department should look at the memorandum of understanding with the Department of Basic Education. School sport is not taken care of in so many schools. We appeal to the two departments to ensure we see the memorandum of understanding signed bear fruit. School sport is not there. We have promised that we will monitor, and we will talk to our department with the sister department. School sport is not compulsory. Kids and parents suffer because there are no teachers to take care of school sport.
Thina ke siyi-ANC sithi, qhuba Mphathiswa wethu kodwa masilungise nabanye aBaphathiswa basincedise. Kaloku ezemidlalo ezikolweni azisayikugqibelela kungekho midlalo esisinyanzeliso ebantwaneni. Siyayikhalela ke loo ndawo kwaye siyakuncedisa ukuba kufuneka sincedisile. I-ANC iyayixhasa le ngxelo. (Translation of isiXhosa paragraph follows.)
[As the ANC, we say, hon Minister, continue but let us also be prepared so that other Ministers can support us. Sports at schools will not succeed unless they are made compulsory to the learners. We are complaining about that issue, and we will help if there is a need to. The ANC supports this report.]
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION AS WELL AS PLANNING, MONITORING AND EVALUATION – OVERSIGHT VISIT TO THUSONG SERVICE CENTRES AND NATIONAL YOUTH DEVELOPMENT AGENCY OFFICES IN EASTERN CAPE AND KWAZULU-NATAL PROVINCES
Ms B P MABE: Chairperson, we salute and remain indebted to the brave young men and women who fought against inequality, oppression, poverty, and segregation 39 years ago. Indeed, your struggle did not go in vain.
Today, the youth of South Africa say no to substance abuse, no to teenage pregnancy and HIV/Aids infections, no to poverty and unemployment, and no to lawlessness. They are grabbing the opportunities created by the ANC-led government.
During our oversight visit to the Eastern Cape and KwaZulu- Natal, we met beneficiaries of the National Youth Development Agency, NYDA, who expressed their appreciation and further justified the existence of the agency in the mainstreaming of youth development.
Hon Chairperson, 540 young people, drawn from the NYDA database, were placed in the Eastern Cape health department. Surely, other departments can do more. I would like to acknowledge a few beneficiaries. In the Eastern Cape, Ms Msutwana and Mr Mkunqwana, owners of Ozzy Eco Décor, employ
12 people. They recycle tyres and turn them into furniture.
Isolomzi Kitchens and Furniture Design is owned by Mr Thompson, a vibrant, young entrepreneur and employer of four young people. He acts as mentor to other youth as part of the NYDA skills sharing programme and manufactures home and business furniture. Nomfuneko Clothing Design, owned by a young female entrepreneur from Mdantsane, Ms Nomfuneko, is a manufacturer of leather products and a supplier of clothes and handbags. She trains young people in sewing skills.
In KwaZulu-Natal, Compuzone Training Academy is an IT training centre located in Stanger. It is owned by Ms Mngadi. This training centre assists the youth in getting employment. Best of the Best Photo and Film, a photo and film enterprise
located in a township of KwaDukuza, is owned by Mr Mahanuga. Ekamu Clothing is owned by Mr Mngoma, a hustler from rural KwaDukuza who did not let his background and surroundings determine his future. He owns a clothing label called Ekamu.
We are grateful to the NYDA for the interventions to help these young entrepreneurs realise their dreams.
We therefore recommend that the NYDA full-service branches be capacitated to improve their location visibility, accessibility, and marketing strategy. We call on more partnerships with the private sector to support emerging businesses owned by youth. The NYDA should develop an exit strategy for youth who have benefited from their programmes to allow space for new, upcoming entrepreneurs.
On Thusong Service Centres, as hubs of development and bringing services closer to our people, we recommend that Thusong centres be established in all municipalities and that the Department of Public Service and Administration monitors the centres on a quarterly basis throughout the country and provides government with regular feedback on the status quo of service delivery in the centres. We further recommend they develop policy guidelines to clarify the roles and responsibilities of various departments, strengthen institutional arrangements to promote the payment of services
and rental agreements, and resolve lease agreements with the Department of Public Works.
We recommend that the House approves the report. Working together, we can do more to push South Africa forward. Thank you.
The HOUSE CHAIRPERSON (Ms A T Didiza): Thank you very much. The motion is that the report be adopted. I have noted requests for declarations of vote. My apologies: The motion is that the report be adopted. Are there any objections?
Declarations of vote have been requested, and I now recognise the DA.
As the speaker moves towards the podium, I noted that those of my age or older were a bit shocked and expressed their shock aloud when the young chairperson mentioned the word “hustler”, which is used by young people. It reveals the age of some of us here! [Laughter.]
Declarations of vote:
Mr S C MOTAU: Hon Chairperson, I was hoping the chair of the committee would not speak before me but she has. So, I would have taken her out of her misery by saying the DA supports this report. I will tell you why we support this report.
The Thusong Service Centres are intended to be one-stop, integrated community service points to provide information and services closer to the communities. We all know how important this is, especially in the rural areas.
These centres are established as hubs of development to help the communities, and they are supposed to work following the principles of Batho Pele. I have always liked the expression of Batho Pele, so if we do that, then it would be the kind of thing that we all would like to see.
We can only encourage the establishment of such centres in every municipality and urge that they are adequately funded so that the much-needed efficiency and meaningful service delivery to the people can be achieved. In this regard, I would like to refer to a visit to the centre at Cofimvaba, Chris Hani District Municipality in the Eastern Cape, which left some of the members of the committee with mixed feelings. It was actually because it was something good that was supposed to be done. It had to do with the provincial department of social development. The problem with that is that the people did not have sufficient accommodation to do the kind of work that they do. So, they didn’t have the necessary privacy. What we are saying is that this is a serious shortcoming that needs urgent attention. We believe
that if that can be done, then that centre would actually be accomplishing its mission.
As far as the NYDA offices are concerned, as the chair indicated, we visited the Eastern Cape and KwaZulu-Natal. The young lady the chairperson spoke about does something that many of the members would be happy to see. This is done out of recycled tyres from your cars and bakkies. It is a fascinating thing, and the important thing is this: It confirms the DA’s position on the NYDA. As long as the NYDA does what it is supposed to do, we will support it. However, we cannot support it when it does kissing contests and the kind of things it has been doing.
So, it is very important to appreciate that - to understand that the agency must clean up its act and image and cease to be an exclusive employment agency for cadres of the ANCYL and the SACP Young Communist League. The agency must also ensure that grants funding, as the chair has already indicated, is distributed equitably in all its service branches to reach all youth, regardless of political affiliation, in the different categories, particularly, rural youth, young women, and people with disabilities. Thank you very much.
Mr M HLENGWA: Chairperson, the IFP will support this report, and we want to emphasise the need for the NYDA to be
decentralised as far as possible because the issues of access for the NYDA remain a problem. If it continues to exist, then every effort must be made to ensure it is successful and that we don’t set it up for failure. It will be one thing to have the NYDA, but if we do not support it accordingly then that will become a problem because we set it up for failure.
The interventions of the NYDA are very much a drop in the ocean, and its successes are an island of success in a sea of youth challenges. This is largely attributed to the fact that government departments, in the main, do not take the necessary steps and actions to associate themselves constructively with the NYDA, keeping them at arm’s length and treating them as exactly what they are – an agency.
Until such time that we steer away from the youth blind budgeting which is taking place in government departments and correct the mistake of government departments not embracing the NYDA, we are going to have problems. Then you are going to be counting the successes – one, two, three, four, and five – whereas there are millions and millions of young South Africans in desperate need of the NYDA’s assistance.
So, we must see the commitment government has made towards sustaining the NYDA come to life through the proper interventions. There must come a time where the NYDA changes
its budgeting processes. It cannot be that the bulk of the budget goes towards paying salaries and what is left of the budget then goes to programmes. If we do not streamline and target what the NYDA is going is to do, then it is not going to be a success.
The important issue is that the national footprint of the NYDA is, by and large, unsatisfactory. The agency is inaccessible, and it is only really in your urban areas. Youth in rural areas and semi-urban areas find it very difficult to access it. The travelling costs are high, the cost of communication in South Africa is very high, and young South Africans just do not have the money to engage and interact with the NYDA.
So, we must be in a position to take the NYDA to the people in the truest sense of the word, establish it, and make sure that it exists fully. It is only then we will be able to change the perceptions and image young South Africans have of the NYDA. However, for as long as it is up there, a pie in the sky and not where it is supposed to be, there will be problems.
So, let us go back to basics and take the NYDA from where it is to where it is supposed to be and to where the young South Africans are. Thank you.
Motion agreed to.
Report accordingly adopted.
The HOUSE CHAIRPERSON (Ms A T Didiza): I am sure members of the executive seated there have a challenge going forward. Gender and youth budgeting is now the call I have just heard. Gender budgeting has been the buzzword, and now it is the youth budgeting that is coming. Hon Minister, I am sure you heard. [Interjections.]
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON BASIC EDUCATION – OVERSIGHT VISITS TO KWAZULU-NATAL PROVINCE
There was no debate.
The CHIEF WHIP OF THE MAJORITY PARTY: I move that the Report be adopted.
Declarations of vote:
Ms D VAN DER WALT: Hon House Chair, 8,7 million pupils across the country walk to school every day. Two million of these children are in KwaZulu-Natal. Over 200 000 pupils here walk for more than an hour just to get to school every morning.
Only 22 000, just over 10%, needy children who require state- subsidised transport are supplied with such. How can it be when our Constitution guarantees every child access to
education? It is a fundamental opportunity that must be provided.
The KwaZulu-Natal provincial policy on learner transport requires an annual process. First, the province decides how much it will spend on learner transport. Then it informs each education district what its share will be, and only then are needy children identified – but only as many as the budget allows for. Why is the starting point not access to education? The national picture is entirely unhelpful too. There is no national policy and no national guidelines from the Department of Basic Education.
The Minister of Transport, to our surprise, recently took a draft learner transport policy to Cabinet, and Cabinet approved it. If one member of Cabinet took the time to read that very poorly written draft at all, I can guarantee members in this House that it would not have gotten the nod. The policy does not address the needs of the learners at all, and it is wholly inadequate. It will not make a difference to any child who walks to and from school daily under very difficult circumstances.
How could this happen? Are we just blindly ticking boxes? No. Tens of thousands of children in KwaZulu-Natal need to get to school safely every day. They rely on their government to make
this happen, and, I must say, the ANC-led government in KwaZulu-Natal is failing them. Let’s give our children freedom they can use. Thank you. [Applause.]
Mr A M MPONTSHANE: Hon House Chairperson, the recent oversight visit undertaken by the Portfolio Committee on Basic Education to the province of KwaZulu-Natal pre-empted particularly by the province’s severe drop in examination results and alleged examination irregularities highlighted many other areas of concern which should be addressed immediately at departmental level.
The national school nutrition programme is in a state of disarray and still runs below capacity. Service providers receive late payments. There is evidence of corruption and abuse of the programme as well as a distinct lack of co- operatives that act as service providers at local level. Hon Minister, as I speak, the tender for school nutrition in KwaZulu-Natal, which had already been awarded to service providers, has been withdrawn. These service providers are now in serious debt because they had already bought vehicles and equipment preparing to supply the services as required. I don’t know what type of intervention you can make, hon Minister, to take corrective measures in this state of affairs.
Staffing and budgetary constraints also played a major role, with the head of department stating in his address to us as the committee that there were many existing vacancies in the system, including those of curriculum advisors, who would provide much-needed curriculum support. Again, here, hon Minister, a related challenge we noted is that even those subject advisers who are already in the employ of the department have their travelling kilometres curbed. Once they have reached a certain number of kilometres, they just park their vehicles, and they cannot help schools. The reason given to us is budgetary constraints. Again, I am not too sure whether there is something you can do, together with your colleague in Finance, to improve the situation.
Underspending on learner transport where there is a greater need for learner transport than funds available is indeed unacceptable. Underfunding on mandates is equally unacceptable as the knock-on effects ... [Time expired.]
Ngiyabonga Sihlalo, nakuba ungasenamusa wokunginika umzuzu nje omncane. [Thank you, Chairperson, even though you no longer have mercy on me by giving me a few more minutes.]
Nksz N GINA: Ngiyabonga Sihlalo, ikomidi lezemfundo yamabanga aphansi laba nohambo lokuya KwaZulu-Natali, lapho kwakuyobhekwa khona ukuthi isiFundazwe saKwaZulu-Natali
sikulungele kangakanani ukuqalwa konyaka nokuthi izidingo abafundi bazithole ngendlela yini, ngibala izinsizakufunda, izincwadi namabhuku okubhalela njalonjalo.
Ikomidi lathola-ke ukuthi lesi ngesinye sezifundazwe okwathi noma kuvakashelwa izikole, ngingasabali abaphathi, izikole zakubalula ukuthi cha zitholakele impela izinsizakufundisa, okwakusilele ukuba kuthasiselwe lapho okwakunokushoda okuncane khona, kodwa lesi kwaba esinye sezifundazwe esathola ukuthi izinsizakufunda zithunyelwe ezikoleni ngendlela efanele.
Yebo sizovuma-ke ukuthi kuyo yonke indawo lapho kunokusebenza khona ngeke kwaba nokwaneliseka ngendlela ephelele. Odabeni lwezokuthuthwa kwabantwana abaya esikoleni, phecelezi i- learner transport, kwatholakal ukuthi ngempela zikhona izinkingana ezabakhona kodwa ngijabula kakhulu ukuma phambi kwale Ndlu namhlanje ngithi, uMnyango wezeMfundo wamaBanga Aphansi eNingizimu Afrika ubambisene noMnyango wezokuThutha sikhuluma nje siyaziqhayisa ngokuthi inqubomgomo yezokuthuthwa kwabafundi yamukelwe yiKhabhinethi yethu.
Siwubonga kakhulu futhi uMnyango wezeMfundo ngokuthi ngaphambi kokuba kube nenqubomgomo wenzile isiqiniseko sokuthi abantwana bayazuza kulolu hlelo lokuthuthwa kwabafundi ngaphandle kwenqubomgomo ngenxa yesidingo ebesikhona. Kodwa-ke manje sizoqhubekela phambili sinokukhulu ukuziqhayisa ngoba
inqubomgomo isikhona. Ziyazi izifundazwe kanye nezikole ukuthi yini okufanele ilandelwe ukuze abantwana bethu basizakale. [Ihlombe.]
Okunye futhi, ngiyezwa ozakwethu bekhuluma ngezinkinga ezibe khona kwezokudla kwabantwana, phecelezi, i-school nutrition. Nalapho futhi sithe uma sifika KwaZulu-Natali sezwa ukuthi zikhona ezinye izinkinga ngoba esinye sezifundazwe esithe uma sethula uhlelo lokuthi abantwana badle ezikoleni sathi, ngeke sihambe siyosebenza ngalaba esibabiza ngabahlinzeki zinsiza abazimele kodwa bazodonsa izinhlangano zobambiswano ukuthi kube yizo ezisukumayo ukuze zikwazi ukunikezela ngokudla ezikoleni. Sikubone kuwuhlelo oluhle-ke lolo KwaZulu-Natali, yize lube nezinkingana, kodwa njengamanje sivakashile KwaZulu- Natali sakhuluma nabo, ngiyajabula ukuma phambi kwenu ngisho ukuthi ezinye zezinhlelo esezilungisiwe kakhulu. Udaba lokukhokhelwa kwabahlinzeki bezinsiza selwenzeka ngendlela ephelele. Ngakho-ke isethulo sami ukuba lo mbiko wamukeleke.
Ngiyabonga. [Ihlombe.] (Translation of isiZulu speech follows.)
[Ms N GINA: Chairperson, the Portfolio Committee on Basic Education went to KwaZulu-Natal on an oversight visit to determine whether the province is ready to start the year and to check if the learners received all the necessary learning
resources, such as the learning support materials, textbooks, and exercise books.
The committee found that this is one of the provinces where the schools, as well as school management, were visited. They indicated that they received all the learning and teaching materials, except for other areas where there are top-ups needed, but this province was one of those provinces where learning support materials were delivered at schools on time.
Of course, we will admit that there cannot be total satisfaction in all areas of performance. On the issue of learner transport, the committee found there were minor challenges, but I’m pleased to stand before this House and say that the South African Department of Basic Education, in partnership with the Department of Transport, has submitted the transport policy to Cabinet, which approved it, and we are proud of that.
We are very grateful to the Department of Basic Education which, before they had a policy in place, ensured that learners benefited from the learner transport because there was a need for that. However, we will carry on with great pride because now we have a policy in place. The provinces and the schools know what to do in order to assist our children. [Applause.]
Furthermore, I hear my colleagues talking about the challenges regarding the school nutrition project. When we arrived in KwaZulu-Natal, we heard there were other problems they were faced with because when the school nutrition project was introduced, one of the provinces said that it would not work with the private service providers and that they would approach the community-based organisations to supply food to schools. We saw this as a perfect programme for KwaZulu-Natal even though it had some problems. We visited KwaZulu-Natal and engaged with them. I’m pleased to stand here before you and report that some of the problems have been resolved satisfactorily. The issue of payment of service providers has been resolved completely. Therefore, I recommend that this report be supported. Thank you. [Applause.]]
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT – OVERSIGHT VISIT TO LIMPOPO DEPARTMENT OF SOCIAL DEVELOPMENT, SOUTH AFRICAN SOCIAL SECURITY AGENCY REGIONAL OFFICE AND NATIONAL DEVELOPMENT AGENCY PROJECTS
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Ms E R WILSON: Chairperson, whilst the visit was well organised and we were given access to both the MEC in the province and head of department of social development, there were issues of considerable concern.
Questions to the head of department revealed that in Limpopo, as in the rest of the country, there is a severe shortage of social workers. This was highlighted in the plight of the severely handicapped children at Judy’s Paradise Home for Cerebral Palsy Children, a situation that should never have been allowed to arise. There was a high vacancy rate with regard to social workers, infrastructure is poor, and yet the provincial department had only used 54% of its budget the previous year. This is unacceptable, and the Minister must undertake more oversight to ensure that the provinces are meeting the mandates of the department.
Another great issue of concern is early childhood development, ECD, centres. The committee was advised that the majority of the registered centres were not being run by qualified ECD practitioners. Furthermore, the province does not have standardised bylaws with regard to the establishment of these ECD centres. This has led to the mushrooming of ECD centres
that do not comply with the norms and standards. This defeats the objects of the National Development Plan, NDP, and jeopardises the educational start of children from an early age. ECD centres are severely underequipped, infrastructure is questionable, and attempts to ensure compliance are weak, to say the least. Proper registration, regulation, and oversight of these centres need to be addressed urgently.
In terms of the care and monitoring of the Older Persons Act, a severe shortage of qualified personnel and a high vacancy rate have put the elderly at a huge risk in this province. The substance abuse forum in the legislature is nonfunctional at a time when substance abuse is at an all-time high. Lack of support by other departments, namely health, the SAPS, and education, which are not attending forum meetings, poses a huge problem.
Furthermore, the lack of a dedicated budget has resulted in programmes not being implemented. Regular reports are not forthcoming. The lack of victim empowerment programme centres must be addressed and investigated urgently. The severe shortage of social workers ensures that this department will never meet its mandates. Limpopo is a fine example of lack of oversight and management, Minister. Despite this, the DA accepts this report as a fair reflection of the visit.
Ms R N CAPA: Chairperson and hon members of the House, I rise to confirm that the oversight visit to Limpopo was carried out. [Laughter.] The first thing that was to be done was to meet with all stakeholders in the province, as well as our counterparts – the portfolio committee, the chairperson, and the MEC – and other stakeholders. This was a very good meeting because we were able to engage and understand the oversight process, especially the issue of implementation of the policies and laws. So, we all agreed on how to go about in the entire province.
Firstly, these are the observations in the report. In the first place, Limpopo, being the poorest province and understanding their challenge, has done a lot in service delivery. [Interjections.] They have been able to implement the Children’s Act policy. They have ECD centres. They have co-ordinators, both at a district and subdistrict level. All those people have been paid. Thus, there has been job creation.
Secondly, those people who receive grants through the
SA Social Security Agency, Sassa, have been assisted in the main by integration – integration which the hon Wilson has not actually alluded to, the fact that the National Development Agency, NDA, Sassa and the Department of Social Development were able to come together, as well as the Department of
Agriculture, Forestry and Fisheries, with a big poultry project which was an initiative by Social Development. Today, chicken production is huge in that particular rural area. It is doing very well, to the extent that more people should be encouraged to join that particular project because there are about 18 poultry houses with electricity and water, but the reason for the shortage is that they were not able to get one- day-old chicks in order to fill it up. That was a recommendation.
In terms of the director-general and the district officials, they know their work. They are doing extremely well. There are lessons to be learnt from Limpopo. We are very proud. Thank you very much. Kuhle; siyaqhuba. [It is good; we are moving forward.] [Time expired.] [Applause.]
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT – 2012-13 ANNUAL REPORT OF CENTRAL DRUG AUTHORITY
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Ms K DE KOCK: Chairperson, the DA accepts the report, but we think it is important to reiterate that we are very concerned that the Central Drug Authority is not able to execute its duties effectively, the main reason for this being that, despite the estimated high level of substance abuse in South Africa, there is no accurate statistics or baseline data on the true nature and scope of the problem. As such, activities to address substance abuse happen in an unco-ordinated way, and there are few, if any, tools to evaluate the impact of activities.
The Central Drug Authority, CDA, also does not have implementation structures in all spheres of government, and they have limited power over nonreporting departments and municipalities which there are, unfortunately, many of. In addition to the above, the annual report was submitted late, and the DA believes that this is an indication of how lightly government as a whole takes the problem of substance abuse.
In South Africa, currently, it is estimated that only one in
18 people requesting treatment for substance abuse has access to a treatment facility. The effective functioning of the CDA is therefore paramount, and it is important that they receive all the support from departments and municipalities that they can get. Thank you. [Applause.]
Ms L L VAN DER MERWE: House Chairperson, let me state right at the start that the IFP supports this report and its findings even though it has been tabled three years late.
However, allow me also to raise a few concerns. Substance abuse in our country is on the rise. There is an increasing problem of primary and high school children abusing drugs and alcohol; yet the Central Drug Authority, as a co-ordinating body and the frontline of our fight against substance abuse, is ill equipped for the task. It receives far too little funding and support. For example, it is often ignored by the very government departments and entities that are supposed to provide vital information and assistance to the authority. We therefore call on the Minister of Social Development to ensure that the operational structures of the CDA are strengthened at all levels, which starts with the allocation of more resources to the authority. Social Development should also ensure that there is compliance with all relevant Acts at all levels of government.
Lastly, we have far too few treatment centres. The waiting time to get into a drug rehabilitation centre will have you waiting for months, if you are lucky to get into one. Private rehabilitation centres are also too costly for the majority of our people. The status quo cannot be allowed to continue. It is high time that the Department of Social Development
prioritises the massive task of tackling substance abuse in our country. I thank you. [Applause.]
Ms R N CAPA: Chair and the House at large, it is very important to note that the Central Drug Authority is not a fully-fledged agency. However, it has the authority of co- ordinating. Co-ordinating means to bring about multiple stakeholders to participate. Indeed, this is a very difficult task because those people simply attend the meetings and, when it comes to funding, they leave this particular important function to the Department of Social Development.
We propose that this report be adopted because the Central Drug Authority has done nothing wrong – the current legislation has not enabled them to be a fully-fledged agency. They are all piggybacking on Social Development, not as a national agency. Their offices are mainly found within the Social Development offices.
It is very important to state as well that they have done good work. They report on what they do, but the limitation is the fact that they need more funding. This is a process going forward. This will be forwarded to the department that is responsible for funding so that what the hon Van der Merwe has raised is corrected, provided there is enough budget and enough in the purse of South Africa.
We cannot begin to say that things must be done even when we are quite aware that what is being done is hamstrung by affordability. So, I thank all the members that have participated in this particular debate and engagement.
However, if funds are not available, hon members, we should be able to use effectively what we have. Thank you very much. [Applause.]
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HUMAN SETTLEMENTS – OVERSIGHT VISIT TO LIMPOPO PROVINCE
There was no debate.
Mr B A RADEBE: I move that the Report be adopted.
Declarations of vote:
Nkul S M GANA: Mutshamaxitulu na vahlonipheki va Huvo, ndza mi losa. Xiviko lexi hi xi hlelaka namuntlha i xa riendzo leri hi ri tekeke ku ya exifundzeni xa Limpopo, xifundza lexi ndzi tswariweke kona. A ndzi ri languterile riendzo leri hikuva a ku ri khale ndzi vulavula hi ndlela leyi xifundza na ndzawulo
va tsandzekaka hakona ku tirhisa mali ku antswisa vutomi bya vanhu. (Translation of Xitsonga paragraph follows.)
[Mr S M GANA: Chairperson and hon members of the House, I salute you. The report that we are evaluating today relates to the trip that we undertook to Limpopo, the province in which I was born and bred. I looked forward to the trip because, for a long time, I have been articulating how the province and the department have been failing to spend money to improve the lives of people.]
Contrary to what has been said earlier, that Limpopo is a poor province, I have to say that Limpopo has a unique problem, in that the problem in the Department of Human Settlements is that they can’t spend the money. If they do happen to spend the money, they spend it on some tenderpreneurs. One would think that the demand for human settlements development is low considering the amounts of monies that have been returned to the National Treasury – over R1 billion in the past two years.
You know, one thing that the report says, which is straight and clear, is that the delivery of houses in Limpopo happens at a snail’s pace, and in other areas it is nonexistent. I mean, when we went on the visit, the officials tried their best to conceal this nondelivery; unfortunately, even what we saw spoke of nondelivery. However, what is more interesting is
that no official or politician was suspended or faced the consequences for this serious underspending. The only thing that the politicians and officials in Limpopo know is to fight over tenders and contracts.
The talk in Polokwane now is that the finance MEC was fired because he refused to support the awarding of tenders to politicians. That is the talk in Polokwane. [Interjections.] I mean, if you are in Cape Town, and you are not like me who is from Limpopo, you won’t know about this. Unlike in Nelson Mandela Bay where national government moved in to accelerate the delivery of houses, the people of Limpopo have been left to unscrupulous tenderpreneurs and politicians.
However, we all know why the national department, led by the Minister, moved very quickly to go to Port Elizabeth. They are very scared of the DA’s victory next year. [Interjections.] I have to say that even with this intervention of R4 billion, the Nelson Mandela Bay will be blue next year.
Deputy Minister, it is good to see that you went to those community residential units in Seshego yesterday to hand over the units. When we went there, we were promised that the units would be occupied by 15 December 2014, but, I guess, better late than never. Unlike those ones in Meadowlands, Diepkloof and Kagiso, which have been standing empty for eight years,
these ones only stood empty for eight months. So, we can forgive them for that.
I hope that you also went to Bendor, that place where we purchased land in 1998, to put services in place. Even today, the contractor is still not on site. However, we support this report because it is a true reflection of the nondelivery of human settlements in Limpopo. Thank you very much. [Applause.]
Mr K P SITHOLE: House Chairperson, first of all, the IFP supports the report. However, during the visit, we noted the following key areas that should be highlighted and addressed. Intergovernmental issues, in particular, the communication, co-ordination, and alignment of the strategic plans between municipalities and provinces remain a concern. It seems that counterproductive actions must be looked at. The illegal occupation of houses is common, with houses being allocated through various underhanded means to family members of government officials. This must be investigated, and those found guilty must be prosecuted.
The Bela-Bela Local Municipality, through a lack of proper planning, had no funds allocated to it in respect of human settlements for a period of three consecutive years. There is still no priority for the delivery of houses in the mining
programmes. As the province, we think the pursuit of a tourism programme must be addressed.
Enye into engathi mhlawumbe singayisho ukuthi khona lokhu okuthiwa inkohlakalo ngathi kuyanuka ngalena eLimpopo kofanele kuyolungiswa kangconywana. [One more thing that we can say is that there might be corruption happening in Limpopo; it must be fixed accordingly.]
Nksz N N MAFU: Sihlalo weNdlu, siyangqina ukuba iKomiti yezokuHlaliswa kwaBantu iyile eLimpopo ngomhla wama-24-28 kweyeNkanga wama-2014. Siphindile saya kwakhona ngomhla we-02- 06 kweyoMdumba wama-2015. Sihambele izithili ezithathu uMasipala weSithili saseMopani, uMasipala weSithili saseVhembe kunye noMasipala weSithili saseWaterberg. Sizibonile izinto ezenziwa ngurhulumente sabona neengxaki saze savumelana ngelithi ezi ngxaki ziyafuna ukulungiswa.
Siye saneziphakamiso apho sikhankanye ukuba urhulumente, isebe kunye noMphathiswa bedibene norhulumente wephondo waseLimpopo mababone ukuba ezi zinto ziyalungiswa. Sizibonile nezintle izinto ezenzekayo eLimpopo. Okokuqala urhulumente wephondo laseLimpopo usixelele ukuba kukho iindawo zamatyotyombe kule mimandla yemigodi. Bavumile ukuba bazikhangele ezili-16 ekufuneka ukuba zilungisiwe. Okwesibini, siyavuma kwakhona ukuba eSeshego ikhona iprojekhthi entle, siyibonile kwaye
sesivile nokuba uSekela Mphathiswa ufikile eyokuyinikezela izolo.
Okwesithathu, sivumelene ukuba zonke izinto esithe mazenziwe ngulo rhulumente eLimpopo siya kuzijonga ngeliso elibukhali size sifumane iingxelo iinyanga ezintathu ukwenzela ukuba sibone, sincedisane nabo ukuze umsebenzi uhambe. Asisayi kuyinceda ke into yabantu abafika apha, besuka kubethwa ezinkomfeni zabo bebefuna ukuba zinkokeli, basuke baze kuhlala apha basixelele ukuba kwenzeka ntoni eLimpopo. Ubethiwe enkomfeni mfondini, musa ukusixelela ngezinto esingazaziyo.
Into esiyifunayo ngoku yeyokuba le ngxelo mayithathwe yamkelwe. Sitsho thina siyikomiti. [Kwaqhwatywa.] (Translation of isiXhosa speech follows.)
[Ms N N MAFU: Hon House Chairperson, we agree that the Portfolio Committee on Human Settlements went to Limpopo from 24-28 November 2014. We went there again from 2-
6 February 2015. We went to three district municipalities: Mopani, Vhembe, and Waterberg. We saw what government is doing, we found problems, and we agreed on rectifying them.
We had some recommendations. We mentioned that government, the department, and the Minister, together with the government of Limpopo province, must see that these things are rectified. We also saw the good things that are being done in Limpopo.
First, the government of Limpopo province told us there are informal settlements in the mining areas. They agreed that they have found 16 of them which need to be developed.
Secondly, we agree again that there is a good project in Seshego. We saw it, and we heard the Deputy Minister went to introduce it yesterday.
Thirdly, we agreed that we will look carefully at the things we said this government must do in Limpopo. We need a report in three months’ time so that we see where we can assist and co-operate with them to ensure the work progresses. We cannot help people who are here, who lost votes in their conferences, who wanted to be leaders, and who then sit here and ask us what is going on in Limpopo. You have lost votes in the conference; you must not ask us things that we do not know.
What we want is for this report to be agreed to. That is what we are saying as the committee. [Applause.]]
Motion agreed to.
Report accordingly adopted.
The House adjourned at 18:46.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS
Please click on the following link to access the relevant Announcements, Tablings and Committee Reports for this day.
https://www.parliament.gov.za/parliamentary- papers?sorts[date]=-1
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