Hansard: NCOP: Unrevised hansard
House: National Council of Provinces
Date of Meeting: 27 May 2021
Summary
No summary available.
Minutes
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
THURSDAY, 27 MAY 2021
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
Watch video here: PLENARY (VIRTUAL)
The Council met at 14:00.
The House Chairperson Mr A J Nyambi took the Chair and requested members to observe a moment of silence for prayer or meditation.
ANNOUNCEMENT
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon delegates, before we proceed, I would like to remind you of the following: The first one, the visual sitting constitutes a Sitting of the National Council of Provinces. Secondly, delegates in the virtual sitting enjoy the same powers and privileges that apply in the Sitting of the National Council of Provinces.
Thirdly, for purposes of the quorum, all delegates in a virtual platform shall be considered to be present in the House. Delegates must always switch on their videos. Ensure
that the microphone and the gadgets are muted and must always remain muted unless you have permission to speak.
The interpretation facility is also active. Any delegate who wishes to speak must use the raise hand function. Hon delegates, I’ve been informed that there will be no notices of motion or motions without notice. Hon delegates before we proceed to the policy debate, I would like to take this opportunity to welcome the hon Minister of Public Enterprises, the hon Minister Gordon and the hon Deputy Minister, Masuale, the hon Minister of Transport, hon Mbalula and the deputies on the virtual platform. Hon delegates, we shall now proceed to the First Order of the day policy debate on Budget Vote number 10; Public Enterprise Appropriation Bill. I will now call upon the hon Minister of Public Enterprises to open the debate.
DEBATE ON BUDGET VOTE 10: PUBLIC ENTERPRISES
(Appropriation Bill)
The MINISTER OF PUBLIC ENTERPRISES: Thank you. A good
afternoon, Chairperson, hon members of the NCOP and ladies and gentlemen. It is my privilege today to present the Budget Vote for the Department of Public Enterprises for the 2021-22
financial year. Chairperson, on 08 May 1996, 25 years ago, the constant constitutional assembly adopted the first constitution of a democratic South Africa. In the preamble of the Constitution, we advanced our aspirations as one people of one country building one nation. I quote parts of the preamble; We, the people of South Africa, recognize the injustices of our past, honor those ... (Muted) ...
AN HON MEMBER: Chair!
Mr A ARNOLDS: Load shedding! Load shedding!
AN HON MEMBER: You are out of order, hon Arnolds.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Minister! Hon Minister, sorry, your microphone has muted. Hon Minister, Gordan!
Ms B T MATHEVULA: Load shedding! Load shedding!
The MINISTER OF PUBLIC ENTERPRISES: ... May God protect our people. Chairperson, in recent times, some have betrayed our people’s aspirations. Insatiable greed, cast criminality, unashamed consumerism, corruption with impunity, unapologetic
self-interest has captured the very soul of these elements. Yet, there is hope. There are many more who are bravely and resolutely exposing the rotten criminals in our midst. They are, and we are, endeavoring to secure a South Africa in which, and I quote again from the preamble;
We establish a society based on democratic values, social justice, and fundamental rights, improve the quality of life for all citizens and free the potential of each person as the Constitution says.
Today, as we reconstruct and reposition the state-owned entities, we find that it is the workers who pay the price of retrenchments because of corruption. It is our economy that pays the price for inefficiencies and distorted operations. It is our country that pays the price for a poorer reputation.
The blame and the anger amongst us must be placed at the door of those who destroyed and handicapped these state-owned entities, SOEs. Our focus must be on how we recover as quickly as possible from this destruction. All of us must focus our undivided attention to those who stole our money, to those who actively collaborated, to those businesses and professionals who enable this theft, to those professionals and others who dedicated their energies to defend the corrupt. We must today
in a singular accord say, “pay back the money.” We must together - not withstanding our political loyalties - and I’m sure we’re going to see demonstrations of that in the debate today.
We must demand of the Special Investigation Unit, SIU, the Hawks, and the National Prosecuting Authority, NPA, that we want speedier justice for our people, prosecute those who are guilty of these nefarious activities. Chairperson, yesterday the Deputy Chief Justice, Raymond Zondo, praised the consultancy, MacKenzie, for paying back seven R817,000,000 to Transnet, after having paid back a R1 billion earlier to Eskom earlier. I quote the Deputy Chief Justice as per one of the newspapers:
I think when some people criticize this commission for the cost that have been incurred through its work, they remember at least here is one occasion where as a result of discussions between the unit of the Commission and MacKenzie a substantial amount of money has been or will be repaid.
We applaud the efforts of McKenzie, the Transnet management and board for setting an excellent example. Congratulations
must also be extended to the Eskom management and the board for recovering almost R3 billion from international firms such as Asea Brown Boveri, ABB, McKenzie, and others as well.
Advocate Chaskalson, one of the evidence leaders at the commission said, and I quote:
McKenzie, has shown what a responsible corporate citizen does in these circumstances, and I'm looking forward to seeing those other companies do, or what those other companies do.
So, Chairperson, we should also be waiting for the information technology, IT, from SA Police information technology systems. The locomotive original equipment manufacturers that benefited from Transnet; Chilean impulse and others, including the financial and legal firms that assisted in these nefarious processes should follow this example, and of course, the infamous Guptas and their South African collaborators. We must, in a singular chorus, say, “pay back the money.”
In this digital fast moving age, memories are short. Every event today we must remember has clear roots in the corrupt past pre 1994, or even the more recent past. So, we will constantly remind you why these entities, workers in the
country are experiencing the problems they are. This department has the unenviable task of rectifying the damage of the past, ensuring operational stability now and preparing these institutions for the emerging and future dynamics in their sectors. We have to deal with the criminal elements within these state-owned enterprises, SOEs, and in associated entities who willfully damage power stations, steel copper cables, escape with intellectual property and collaborate with people who do not have SA interest at heart.
In recent evidence by a gentleman called Paul Holden, given to the Zondo Commission this week, who runs an outfit called the Shadow World Investigations, has an interesting detail of some R49 billion that found his way out of the SOEs and other branches of government into the hands of the corrupt. Mr Holden listed the following; companies used as first level laundry vehicles as he calls them, such as Homex for time consultants, amongst many others were part of what now appears to be an international money laundering scheme. Almost
R50 billion has been lost through state capture, and this number can be traced through invoices and bank statements. His investigation revealed the three primary sites of state capture with Transnet, Eskom and the Free State provincial government.
Transnet under the direction of the former chief executive officer, CEO, Brian Molefe, was responsible for over almost 82% of the payments relating to state capture, which comes to just over R40 billion. Molefe was also CEO of Eskom from 2015 to 2016, before being succeeded by Matshela Koko. Under these two individuals, Mr Holden says, Eskom contributed some 14,2% of state capture expenditure. The Free State provincial government, according to Mr Holden, contributed almost
R440 million. These are some examples of expenditure where no attempts to deliver any value to the government were seen and there are many other examples according to Mr Holden. There were also occasions in which goods services provided were of such poor quality that it caused additional losses to the state. For example, Eskom claiming damages from optimum coal mine with regard to poor quality coal that was delivered in insufficient quantities amounts to R3 billion. That is the claim of Eskom.
There are many other examples, Chairperson, that has created the difficulties that we are now together with the board’s management and workers in these SOEs are trying to rectify. The law enforcement authorities have been investigating 114 key contracts. There are 33 high profile criminal investigations involving multiple parties including former
board members and executives of SOEs. To them, we must also say, “pay back the money.” The investigative director of the National Prosecuting Authority, NPA, working with the Asset Forfeiture Unit in the Directorate for Priority Crime, recently froze R1,4 billion in assets of former executives and three private contractors. I referred earlier on to Asea Brown Boveri, ABB, a global engineering company based in Switzerland with repaid R1,5 billion to Eskom. A R171,000,000 claim against the De Loitte, a R870 million, which I referred to earlier on paid by McKenzie to Transnet.
There are many such examples of either claims that have been made or investigations and processes that are underway at the moment, Chairperson. However, now is the time to act together. Now is the time as some academics have said in a recent paper;
Crises and pandemics can bring society. Together around a common purpose, and we know from history that such critical junctures can also divide societies and propel them into chaos. That’s what some people would like.
I continue the quotation.
... learning the right lessons and being able to galvanise society for positive changes is thus, one of the key tasks for governments during the ongoing pandemic.
We have made in this regard some, in fact, substantial progress, over the last few years in relation to placing the SOEs on a better footing than they were left prior to that particular period of state capture. I’ll give you some examples, Chairperson. Good governance codes have been now embedded in SOEs and more work will be done in relation to integrity and consequence management frameworks. The pursuit of stolen money has yielded some results as you can see.
Nevertheless, importantly, we must now move to the next stage of pursuing stolen money. The stolen money that is lying in bank accounts elsewhere in the world. Prosecution of those responsible is beginning, although at a very slow pace and guidelines to manage conflicts of interest in his SOEs becoming stricter. Operational efficiencies are being addressed, although there is much to do in this particular regard in most of the SOEs.
The financial stability of this SOEs is a mixed picture, particularly in the context of a very constrained fiscus for
some SOEs are in serious difficulty, as some of you will point out. The goal of relieving the pressure on the fiscus remains an important focus and innovative funding solutions need to be found. Organisational transformation initiatives to increase capability and reduce the cost structure of SOEs is also underway. Let me briefly cover some of the SOEs and the Deputy Minister will do a more detailed job in this particular regard. On SA Airways, SAA, clearly there’s been a huge impact, but prior to the Covid-19 pandemic and subsequent to the Covid-19 pandemic, International Air Transport Association, IATA, estimates that air travel has reduced by some 66% in 2020 compared to 2019 with international air travel reducing by almost 76%. Global passenger traffic volume has been reducing substantially during this particular.
The SA Airways is out of business rescue and the search and arrangements for strategic equity partner is quite advanced. Eskom, which affects us every day in terms of either continuous supply of electricity or disruption thereof is successfully dealing with legacy problems, stabilising current operations and preparing for the new institutional and energy transition objectives. It has finalised the divisional isolation of Eskom into three divisions; with managing directors, generation, transmission and distribution. A total
of 6 773 employees have been moved from corporate functions to divisions in readiness for legal separation and the transmission company will be separated by 31 December 2021.
Transnet has equally done an excellent job as the Deputy Minister will point out. The redesign of Durban port moving equipment to Cape Town so that the citrus exports and other fruit exports can actually take place timeously for an industry that’s worth some R38 billion. So, in some, hon Chairperson, the department has a very small budget for its own operational purposes of some R185 million and that is set out in the appropriations. However, let us conclude on a clear message that; whether we are workers, union leaders, union members, businesses that have been impacted because of difficulties SOEs and the general public, we need to target our criticism, we would need to march to the doors of those who have participated in and undertaken the destruction that we see at SOEs themselves.
So, let me conclude by thanking the NCOP for this opportunity to share some of these thoughts with you and the kind of progress that we are making and there will indeed be further progress in this regard over the next period that lies ahead of us. I also want to thank the chairperson of the Select
Committee for the sterling work that they’ve done together with colleagues in the National Assembly. A special word of thanks to the Deputy Minister, the director-general and the staff of the department. Finally, we cannot give up on this mission that we have ahead of us. Let us remember the promises that we have made in our Constitution, let us remember the duty that we owe to our people and the SOEs have a big part to play once we get them right and moving in the direction that South Africa wants them to move. Thank you very much.
Mr T B MATIBE (Chairperson – Select Committee: Public Enterprises & Communication): Thank you very much, hon House Chairperson ...
Tshivenda:
Ndi masiari ...
English:
... House Chairperson, ... [Inaudible.] ... Yes, are you able to hear me? Thank you very much, public enterprises have been functioning in South Africa over many decades and make an important contribution to the economy in terms of gross domestic product, GDP, and job creation. The state-owned enterprises, SOEs, directly contribute some 8,7% of GDP and
their indirect contribution touches every other part of the economy. The SOEs function in strategic sectors of the economy and contribute to infrastructure development of the country.
The SOEs in the Department of Public Enterprises stable positively contribute to critical economic inputs in the energy sector and transport sectors in terms of electricity, rail, road, ports and civil aviation. The SOEs sector, which operate in the country has made a positive economic contribution as the economy will not be able to efficiently function without the inputs which these companies make to power the economy or provide transport for the movement of goods. The country’s economy was built on the mining and agricultural sectors. These sectors still depend on rail and port facilities for their export of products which positively contributes to the country’s balance of payments.
This policy debate is occurring at a very challenging time as the economy has been negatively affected by the COVID-19 pandemic, which has adversely impacted on the financial performance of SOEs. It has also created economic hardship and unemployment in the different provinces which the ANC government alleviated through the special Appropriation Bill.
In the past year, under difficult economic conditions the SOEs in reporting to the Department of Public Enterprises made a revenue of R277 billion and directly employ more than 150 000 people. This contribution is only from SOEs reporting to the Department of Public Enterprises and does not include other SOEs and their contributions. This is no small contribution by any stretch of the imagination and needs to be encouraged.
The SOEs have also been negatively impacted upon through state capture and corruption. Government is resolutely dealing with the problem and various successes at SOEs at defeating corruption have already been recorded and publicly made known. The new boards and management of SOEs working in conjunction with law enforcement agencies have taken many cases to court and assets have been seized as the Minister put forward. The critical issue in this regard is that corruption must be defeated in order to make sure that the SOEs can function optimally to contribute to development and inclusive economic growth. Corruption erodes financial value of the entities and weakens the balance sheet of the state-owned entities. The current path which government is pursuing in terms of consequence management, following the legal process and ensuring financial recoveries is critical to the renewal of the SOEs.
ANC policy regarding the corporate governance is clear as the conference resolutions clearly indicate there should be no undue influence on SOEs and that skill, capacity and capability are the key criteria for management and employment at the SOEs. The effects and consequences of state capture and corruption will take a while to bypass and there are no quick fix solutions to the financial consequences of corruption.
Since the struggle against corruption commenced through the Sixth Parliament, steady progress has been made at the SOEs. New boards have been appointed through rigorous screening of directors to eliminate any potential conflicts of interest. The screening process was to also ensure that qualified people with the correct skills, capacity and capability are appointed to the different boards. This has also enabled the appointment of new management which are dealing with the issue of corruption in conjunction with law enforcement agencies and at the same time restore the operational and financial viabilities of the entities.
The entities have commenced with a process of recovery and performance in many of the SOEs has improved with Transnet, for example, making R3,8 billion profit. In the case of Eskom, even though they made progress, much of their profits were
swallowed by the repayment of dept. The resolution of the debt liability of Eskom will see the company perform positively and differently. This performance has occurred under adverse economic conditions. The annual reports of all entities with the exception of SA Airways which is still to re-enter the market post the conclusion of business rescue indicates steady progress. This is encouraging.
The SOEs are engaging in infrastructure development and expansion of the business as part of the Economic Recovery and Reconstruction Plan. In the case of Transnet, the expansion of the Durban port to create a world-class container area and allow for larger container vessels to dock has important economic implications for the country. This will allow for growth in international exports of minerals, agricultural products and manufactured goods. The motor manufacturing has expanded production in South Africa with all the locally produced for export to international markets. The same applies to the Ford Ranger and any other manufacturing areas that use the ports in order for international markets to get access.
The port expansion project itself will create more job opportunities. This project will also facilitate the
efficiency in which imported products are able to reach the different provinces as Transnet is improving its rail freight.
There must be policy certainty which is created through the SOE Council for the restructuring of SOEs as this certainty coupled with a Shareholder Management Act will ensure that proper corporate governance and financial controls in accordance with the PFMA. This process will also place SOEs on a firm footing and with a clear mandate in which to operate.
It is not designed to crowd out the private sector, but seeks to create public-private partnerships to ensure inclusive economic growth and development.
The current approach of the ANC government is to support the SOEs, at times financially, as that is the legal responsibility of the shareholder, but also to ensure that commercialisation of the assets to gain maximum economic value from the assets. Government has not directly made any financial assistance to SOEs in the past few years in relation to Eskom and SAA. This occurred as part of the legal responsibility of the shareholder, but also due to the role that these entities play in relation to the economy.
The SOE’s will continue to make an important contribution to the provinces and municipalities in which they function and ensure job creation. However, this is occurring under adverse economic conditions due to the pandemic and the process of recovery and renewal will take some time as development is a process and not a single moment. The Department of Public Enterprises in the Sixth Parliament has made progress and will soon work with SOEs in post-state capture and corruption environment, which positively contributes to economic development in all provinces where it operates.
As I conclude, Chairperson, the ANC rise to support the Budget Vote 10 of Public Enterprises and we really want to encourage the Minister for the good work that he continues to do together with the management. Thank you very much, House Chair.
Mr M NHANHA: Hon House Chair, Minister, Deputy Minister and hon members.
IsiXhosa:
Kwasa salila, kwasa saxhixha, kwasa safak’ithwathwa!
Yeyani le ntsokolo sigxampuza kuyo?
Akutsho mna maLunngu eNdlu yeBhunga leSizwe lamaPhondo, koko
kutsho Imbongi Yesizwe umfo kaMqhayi waseNtab’ozuko.
English:
Hon members the very ill-considered intentions of establishing the Department of Public Enterprises was to place the state at the centre of development. This is a socialist project that has not only failed where it originated, in the then Union of Soviet Socialist Republics, but has led to untold hardships in Venezuela, perpetuated development in underdevelopment in Cuba and annihilated economies across the African continent. Yet the governing party in South Africa seems too keen to regurgitate an evidently failed philosophy, in their quest to appease their partners in the tripartite alliance.
Whilst political scientists in the political lab are experimenting whether this Integrated Science Instrument Module, Isim or that Isim can work in our conditions, South Africans from all walks of life continue to bear the brand of either random or systematic errors emanating from the lab. The very idea and existence of Department of Public Enterprises was a stillborn and an exercising futility. Part of its mandate as a shareholder representative, is to perform an
oversight function on all state-owned entities, SOEs in its portfolio
Hon members, at the risk of being seen as belabouring the point of me having run out of ideas, I have said this before and I will say it again because it is relevant. The Department of Public Enterprises has a staff compliment of over 200 and a budget of R36 billion. What is even more alarming, is the ever increasing demand for the Department of Public Enterprises to make SOEs work. Its overall budget has decreased by 53%. In real terms, that translates from R77 billion to R36,3 billion.
With this small budget at its disposal and with a limited and overstretched staff compliment which more often than not, find their skills and abilities falling short, the Department of Public Enterprises will be transferring R36 billion of its budget to SOEs. Hon members, if my sums are correct, they will be left with about R300 million and the output really is foregone.
The Department of Public Enterprises is mandated to oversee seven SOEs who outnumber the department by all accounts, whose staff combined and budgets actually dwarfs that of the shareholder representatives. Clearly, the prospects of success
in executing its mandate is close to zero and basically renders this department ineffective and irrelevant. Is it now not time to let go Mr Gordhan?
It also a cause for concern that, SOEs are reluctant to share with Parliament or its committees their shareholder compacts on the basis that, these compacts contain sensitive commercial information which their competitors might use against them.
Hon members, if the Joint Intelligence Committee gets regular sensitive briefings, from state security about the security of our country, SOEs must be compelled to do the same and Parliament should put in place adequate measures to protect such information. Two common performance indicators across SOEs and this sounds very shallow, it is namely corporate governance and financial sustainability. Yet we have come to a realisation that, out SOEs achieving these is merely a pipe dream and an elusive target.
Hon members in the world of business, when a company does not achieve its targets or has recorded a loss, top executives and boards forfeit amongst other things their bonuses and other related packages. Sadly, the same cannot be said about our SOEs. Whether they have met their targets or not, it is
business as usual. Management will still award themselves packages which by the way are paid by the taxpayer via the bailouts. I have observed a rather unfortunate and growing behaviour by SOEs. They are a lot more respecting and a lot more compliant to the stringent terms and conditions of National treasury because the latter is the goose that lays the golden egg.
Minister, the failure of SOEs in our country is a testimony that social project is nothing more than a fishing expedition whose end results are untold suffering of citizens and destruction of the economy. Time for experiments by the political scientists in the political lab is over. Let us end cadre deployment in SOEs and enable all South Africans regardless of their race for as long as they have the necessary required skills, to play a part in rebuilding our economy.
The Minister has mentioned, and I agree with you Minister that, we need to march to the doors of those who took part in the destruction of our country. Minister you have fallen short of saying, beside marching to the doors of those, let’s ask the Hawks to go to the next appearance of President Jacob Zuma in court because that is where you will find all of them
gathered. If the House can camp in Pietermaritzburg sometime in June or July when the former President appears in court, there will be no point to march into each of them because they will be gathered in one place and the Hawks will have their work quite easily.
Lastly hon members, I cannot agree more with the Minister that, if SOEs are properly managed can play a part. In our instance Mr Minister there is virtually no single prospect of our SOEs succeeding because of a lot of other issues that Mr Matibe and yourself have raised. I thank you Chair.
Mr I NTSUBE: Hon House Chair, hon members of the Council, public enterprises were created in South Africa in strategic sectors in which the private sector did not wish to participate. Some like Eskom and Transnet we created in ensuring energy, security and efficient transport in rail, roads, and aviation. The others were part of ensuring the country's self-sufficiency in the armament sectors like Denel or in the forestry sector like the SA Forestry Company Limited, Safcol to create value for the country from its forests.
They are not the only SOEs that function in strategic sectors of this economy as not all state-owned enterprises report to the Department of Public Enterprises. These entities function in the strategic sectors of the economy and make an important contribution to the economic development, job creation and skilling of the people who are employed by these companies. In the department’s stable, excluding the SA Airways, SAA, more than 100 000 people are directly employed and these entities indirectly contribute to the employment of many more. Over the past number of years, some of these entities have been negatively affected by what you call state capture and corruption. At the same time, it must be said that not all SOEs been affected by state capture and corruption and some like Safcol and the Airports Company South Africa, Acsa, have been performing quite well.
However, the COVID-19 pandemic has negatively impacted the economy which in turn has also impacted the performance of the SOEs. The work of the department has made a positive contribution to the improvement and recovery of the SOEs under difficult circumstances that we find ourselves in.
It is important that we remain focused on the task of the renewal of the SOEs to achieve their operational and financial
viability as we have already implemented many phases to the improvement in corporate governance. We should not be distracted by those who do not seek to have a mature policy conversation with us on the importance of the SOEs and our economic contribution. How does one have a sensible debate in dialogue with those who cannot acknowledge a single thing that the ANC government has done right or corrected?
Therefore, I wish to turn my attention to the state-owned entities and raise pertinent issues which can be considered as the renewal of the SOEs. While SOEs have played an important part in job creation in all the provinces in which they operate and contributed positively to the local economy.
It is important that these entities clearly understand their developmental and commercial mandate. These entities must not carry a cost structure which their revenue does not support.
The SA Forestry Company Limited South is a case of a successful state-owned entity that has challenges but which equally has great potential. on that. Its greatest challenge is around the land claims in relation to the forest it's harvesting its raw material in a form of wood. It also has important assets in the neighbouring countries. The land issue
requires a resolution as this will create certainty over the raw material resources which can positively impact the balance sheet of the company. The importance of this point is to ensure that the value downstream industry and furniture manufacturing and other wood-related products.
This industrialisation programme of the Economic Reconstruction and Recovery Plan. Such other wood products, this shift downstream on the part of Safcol is certainly of national economic interest and will economically benefit many in the provinces in which Safcol conducts its business operations. The SA Forestry Company Limited registered a loss after many years. There are lessons learned from this unprecedented experience is that the business needs to diversify the revenue stream to ensure they’re not only dependent on one or two sources of revenue. It must upgrade its means to ensure business diversification. It has a huge asset base but a lazy balance sheet as it has like in the central energy found dependent on cash reserves rather than investing in new business ventures.
The company certainly has great potential going forward and can make a significant contribution to the economy of the country. In the case of Alexkor, it is important that the
company goes through the pain given the challenges which it is faced with. However, with the effort which has been made, the losses of the company have been reduced. It is also in the process of resolving issues that are complex with the community where it operates.
The doubts created in the minds of many is the rationale for the withdrawal of the international mining companies from the area due to the reduction in traditional mining areas of the resource base. The international mining company made choices for the least costs mining investment in any part of the world. However, we are South Africans, therefore, it is encouraging that progress is being made with this entity even though it is slow given the complexity of the issues. The corporate reconstructing of this entity will pay dividends going forward, creating stability through corporate governance of a new board and management for the business and ensuring that its head office is close to the business. The company must ensure that it is able to engage in further exploration for diamond resources in the area to enhance its revenue and create shareholder value. It provides economic opportunities in the Northern Cape and positively contributes to the economy of the country.
While we acknowledge that there are many issues that need to be resolved and they there's no quick fix. It is important that this business forms part of the mining interests which the state has for the exploitation of the country’s minerals for the benefit of the country. In the case of Denel, the company has many challenges given the role of state capture and corruption. This entity can only re-emerge if there is a radical and revolutionary rapture with the scourge of state capture and corruption. It has taken far too long to ensure that there is a new board and management.
It cannot be acceptable that it can, moreover, it cannot be acceptable that the President in every Sona encourages the purchase of locally manufactured goods but our law enforcement and defence, prison services, purchases arms and ammunition from foreign companies at the expense of ... [Interjecions.]
The HOUSE CHAIRPERSON (Mr A J Nyambi): As you conclude!
Mr I NTSUBE: ... oh, I am concluding. As you can see, I sought not to only focus on the success of the department but to raise critical issues that are affecting all our state-owned entities. But the ANC is indeed determined to resolve all the
challenges that we're faced with and the ANC supports the Budget Vote on Public Enterprise. Thank you very much.
Mr G M MVOKO (MEC: Eastern Cape): House Chair, Minister and Deputy Minister, hon members, good afternoon, as the Eastern Cape government, we wish to welcome and support the Department of Public Enterprises Budget Vote as presented by hon Minister Gordhan. This augurs well with the Economic Reconstruction and Recovery Plan, especially on accelerating structural reforms by modernisation and reforming network industries working with the state-owned enterprises, SOEs, as indicate by the hon Minister.
The development of innovative solutions aimed at relieving pressure from the fiscus working with the SOEs is encouraging with the expectation that there will also be a corporation with the provincial governments in the process of creating enabling infrastructure and logistics to stimulate economic growth and development.
On the energy sector, we are noting the Integrated Resource Plan, IRP, 2019, with the projected development for the renewable energy as part of the energy mix aimed at
contributing a total of 18,2 gigawatts by the South African grid by 2030.
The country is currently experiencing prolonged electrical interruptions with associated economic consequences.
Electricity is a vital enabler for economic growth hence the future trajectory of new energy generation is embraced. With its excellent wind and solar resources together with an ideal situation for liquid natural gas at the Koega Special Economic Zones, SEZ, the Eastern Cape is well positioned to host a large portion of new generation. And in so doing, harness significant investments, economic growth and economic job creation opportunities.
Noting that sustainable energy is considered a high growth sector under the Eastern Cape Provincial Economic Development Strategy, work has been done in the province to create an enabling environment for energy development. Furthermore, with two world class SEZs, the Eastern Cape has a history of leveraging the development of local industry opportunities with a view to exceling as world class energy Hub which harnesses the full value-chain possibilities of the sector.
On the just energy transition, the Eastern Cape province welcomes the development and looking forward to its rollout process. From the narrative of the Just Energy Transition often focuses are on the coal regions of the country, we also need to note that it is equally applicable to a province such as the Eastern Cape which suffers from a historical legacy of special economic distortion and hence it is one of the most unequal provinces in the country in terms of the Gini coefficient.
The economic development benefits aligned to the build of new generation capacity can be significant. And we, as a province embraces the possibility of optimising the potential socio- economic benefits of wind and solar ... [Inaudible.] ... Given the rural nature of the Eastern Cape province, the just energy transition is welcome as a means of achieving a geographic balance and economic reach into the rural and poorest parts of the province and the country.
The legal separation of the transmission company from Eskom is welcome, as this heralds new possibilities for investments in the energy sector. The Eastern Cape province has a significant pipeline of prospective energy generation projects where access to transmission grid will go a long way towards
unlocking these investments. This will contribute towards both provincial and national economic growth and energy security.
Furthermore, the municipal debt affecting Eskom liquidity and capacity to deliver, the Eskom’s partnership model at Maluti- a-Phofung Local Municipality is welcome. And we are waiting in anticipation for its roll out in the province and municipalities. We view this as a crucial intervention in addressing unstable electricity provisions in the municipalities which also impacts negatively on the development of small towns.
On the logistics’ front, with the possibility of working with Transnet, the province appreciates the decision of Transnet to relocate to Gqeberha and this will assist the province to further develop its capabilities on the logistics especially for rail and port development for exports.
Noting the support for the Cape Town and Durban, the province cannot be left out as a coastal province. This calls for a more developmental approach as ports are critical enablers for industries especially for the exports development.
The East London port remains the most underdeveloped ports in the port system of Transnet National Ports Authority, TNPA, with over 50-years of no considerable investment. However, it is the same port that services the significant investors such as Mercedes Benz of South Africa, who have invested more than R6 billion in plant upgrades in the region and are still committed with limited infrastructure upgrades at the port.
This port is critical for the enabling trade and manufacturing in the greater and the Eastern Cape province as it links with the former Transkei region.
Currently, all bulk haul leaders are shipped to the Eastern Cape via the Port of Ngqura and transhipped to the Port of East London due to the narrow and shallow channel of the port hence affecting logistical cost for the companies in The Buffalo City Metropolitan Municipality region.
We therefore need to work together in widening and deepening of the port accompanied with the car terminal and tourist terminal to support the industries through reduced cost of doing business in the region for increased competitiveness.
As I conclude, I wish to submit that we need all the necessary support as the province in implementing the rationalisation of
public entities project. The success of the rationalisation project will see improved functionality of these public entities to be model strategic partners for the development and growth aspirations of the provincial government. One aspect of that will be to review remuneration policy of the entities to be in line with the normal public sector prescripts. Another element will be to scale down the boards of these public sector entities to scale down the boards of these entities for ultimate value and have progressive impact in the minimisation of the public sector wage Bill.
I wish to commend all the work that is being done by the Department of Public Enterprises led by the Minister Gordhan in dealing with all the corrupt activities that are associated with state entities. Thereby creating an environment for stable governance, stable operation and finances of these SOEs so that they return to their basic mandate. And importantly, repurpose, restructure them with their boards to meet the demands of south Africa’s economy and its people and the opportunities in their sectors. With those words I wish to welcome the Department of Public Enterprise Budget Vote for 2021-22. I thank you, Chairperson.
Mr A ARNOLDS: Chairperson, the empty promises of the ANC government of a new dawn and a new era for managing State- Owned Companies has resulted in the total collapse of these Entities. The transformation agenda of state–owned companies under your watch, Mr Jamnandas, and many years in government has created an environment for corruption to flourish.
The capturing of Eskom as seen playing out at the Commission of Enquiry into State Capture has highlighted the state of affairs at Eskom. Now South Africans must suffer under your government with loadshedding, energy insecurity, aging power stations, job losses, mismanagement, fraud and corruption.
Awarding of fraudulent contracts to politically connected companies and individuals has damage the image of the country. It is for this reason why the government, including SOEs, must do away with outsourcing and tenders.
To rebuild South Africa’s economy, we have to build state capacity in strategic sectors. And, we must build SOE and use state procurement through these SOEs as a driver for localisation. This is also why we must amend the Public Finance Management Act to ensure that 80% of all government procurement is sourced locally.
Your numerous promises to stabilize SOE’s, including a new Bill to govern State-Owned Entities will not solve the challenges of mismanagement and corruption. There is no political will to turnaround SOE’s, instead the ultimate goal is to privatize these Entities for the benefit of white monopoly capital.
The Department of Public Enterprises aims and mission is to the drive investment, job creation and to provide decisive strategic direction to state-owned companies. Mr Jamnandas, under your watch there is no direction!
Your government has grounded and collapsed SA Airways and SA Express. You have delivered on the mandate to ensure that only white-owned private companies play a meaningful role in the aviation space after the collapse of SA Airways and
SA Express airlines.
The empty promise of job creation by your government through SOC’s has resulted in massive job losses, with SA Airways and SA Express combined putting more than 4 000 workers out of jobs. As we have said before, we are not surprised by this because we know that there is a deliberate, organised plan to hand over strategic public assets to the hands of few whites
to further entrench control of the economy. The ultimate aim is to strip the country of its ability to develop, and the biggest losses will be all South Africans.
It is misguided to think that we can entrust the private sector with energy security and still expect economic development and transformation. Those who control energy generation will ultimately control the development trajectory of this country; and we know that those who want to control energy generation are racist, narrow-minded and only think of themselves driven by greed.
As the EFF, we are well aware that well-run, effective and efficient SOE’s are major contributors to economic growth and job creation, especially for the youth. We will rebuild state capacity when we take over and bring to an end nonpayment of workers, unmanageable debt, dysfunctional management and the rapid degeneration of all strategic SOE’s.
House Chairperson, South Africans has lost hope in the ability of a directionless Mr Jamnandas to lead the kind of change needed at this moment in the history of this country - the step aside rule must apply. The Economic Freedom Fighters rejects Budget Vote 10: Department of Public Enterprises.
Mr T J BRAUTESETH: Thank you hon Chair. Hon Minister, in the South African environment, the ANC Cadre Policy and Deployment Strategy has its genesis in an ANC document called the National Democratic Revolution. Is it still on track? This document first saw the light of day at the ANC Small Consultative Conference in June 1985. According to this document on cadre education, ANC centres should carry out programmes to improve skills of cadres in relevant fields.
The following guidelines were emancipated: The performance of cadres should at all times be the guide for placement and promotions. The heads of departments must display a keen interest in the performance of the cadres on their staff and encourage and follow up their participation in the political life of the region. Cadres who perform badly at their tasks should be confronted and criticised with the view to improving their performance while care is taken that cadres do not take advantage of a lenient approach.
The HOUSE CHAIRPERSON (Mr A J Nyambi): The phone is still ringing.
Mr T J BRAUTESETH: Furthermore, the following criteria for ideal cadre is laid out: Informed and ideologically grounded.
The new cadre should be able to understand and appreciate the ideological orientation, policies and political programmes of the ANC. The ideal cadre must be an ANC organiser and a teacher. This cadre has to be a magnet for new members of the organisation. An ideal cadre must be loyal and disciplined. He or she will pursue the implementation of any decision with vigour and commitment, even though; he may have held a dissenting voice. This is the most amusing part, this cadre must be anticorruption and anticrime. This person must be the first point of call in the fight against corruption and those who are corrupt must be brought to book.
Now, in 1997 the ANC represented this as part of its transformation agenda. In the discussion document titled, Transformation of the State Property Relations and Social Transformation, it explained transformation as first and foremost, extending the power of the national liberation movement over all powers, leaders of power, the army, police, the bureaucracy, the intelligence structures, the judiciary, parastatals and agencies such as such as the regulatory bodies, the public broadcaster, the central bank and so on.
Now we fast forward to April 2021 and we have the President of our Republic, the hon Cyril Ramaphosa, himself a former
chairperson of the Cadre Deployment Committee conceding to himself to the Zondo Commission that, I quote the President:
Recommendations of the ANC Deployment Committee disadvantages quality people who were not recommended.
He confirmed that the committee did get involved in the appointed of people, director-generals, premiers and public representatives in government. Hon Chair, it is simply inevitable that, this policy and the prioritisation of the ANC of the capable state would weaken the position of the most of the obvious target of cadre deployment that is, public enterprise.
The once well-functioning SA Airways, SAA, Eskom, Denel, Transnet, Sa National Roads Agency, Sanral, Passenger Rail Agency of South Africa, Prasa to name a few of the 22 enterprises, have been turned into glorified employment agencies. This was evident recently when Eskom agreed that,
6 000 employees were redundant and needed to be restructured.
The criteria detailed above paid scamp regard to qualifications and ability, hence the concession by President Ramaphosa know less. So, whatever the intentions of the ANC may have been in 1985, the seeds of being a capable state were
sown 36 years ago, and the harvest of chaos is now being reaped. The terrible reality is that, when you fill an organisation with unqualified staff, performance is drastically reduced and even more worrying when you have staff that do not even know they have a problem. Let alone how to fix the problem.
The issue is to want me to the struck relief when one considers the recent news of the loss of an estimated
1 million litres of jet fuel, from a Transnet pipeline in Midvaal caused by tenants stealing fuel over one year. How is it possible that such an activity could continue over such a lengthy period of time? I will tell you. The deployment of cadres by the ANC who do not have the requisite skill to detect such an issue, let alone fix it, that is how it happens. Rest assured the DA-run Midvaal and our colleague hon Ryder is on the case. They will ensure that it is fixed and the heads on Transnet will roll, watch the space.
Then of course you open the proverbial bundle to looting on the massive scale. The mechanics of this are simple and evident from 20 years of experience I have as a Forensic Financial Investigator and the five years of ... [Inaudible.] Former government employees now in the private sector, run the
landscape like hyenas looking for weak ...[Inaudible] ... and target them. First with lunches and dinners, then gifts, then hard-core cash payments and finally with blackmail, and so a network of sustainable corruption is established, like a slow poison over many, many years. This is the massive challenge facing the Department of Public Enterprises.
Cadre deployment must stop. Skills audits must be conducted. Systems must be implemented to enforce ethics. Persons contributory roles must account and if necessary, must serve jail time. Given recent history, I am unfortunately not hopeful that any of this will be achieved. The only feasible alternative is regime change. Remove those responsible for the mess, and replace them with the party with the best, indisputable track record of keen governance, the DA. The party that simply gets thing done. I thank you, hon Chair.
Ms D BAARTMAN (Western Cape): Hon Chairperson and fellow South Africans ...
Afrikaans:
Ek het ’n hele paar appeltjies om vandag met Minister Gordhan
te skil ...
... but I’m going to stick to just one for now. Since 2019, the Standing Committee on Finance, Economic Opportunities and Tourism in the Western Cape has completed various energy oversight visits across the Western Cape. We have conducted oversights at Eskom’s Ankerlig and Gourikwa power plants,
Saldanha Bay Industrial Development Zone, IDZ, Atlantis Special Economic Zone. We have had briefings from our provincial Department of Economic Development, Eskom’s chief operating officer, and the gas directorate in transit on renewable energy, liquefied natural gas, LNG, and alternate energy sources and the impact of load shedding on our province. We have also engaged private companies such as Total SA, ArcelorMittal and even a bioenergy company in the George area.
In 2020, during our energy week, we scheduled an important
meeting with the Petroleum Oil and Gas Corporation of SA, PetroSA, given the impact it would have on the people of Mossel Bay if it had to close down. We, already having travelled to the area ...
Afrikaans:
... op die laaste nippertjie ...
... as we say in Afrikaans. PetroSA cancelled on our oversight visit, claiming an urgent meeting with national government.
One week later, the national parliamentary committee visited PetroSA on an oversight visit, and we are yet to receive our own report on the matter.
In 2018, PetroSA had a severe cash flow problem. They were R7,4 billion short of its R9,6 billion rehabilitation liability. At the time it had further suffered a net loss of R1,4 billion. In 2020, the Central Energy Fund outlined a list of support measures that was required to assist PetroSA out of this hazardous financial position. This list included a focus on the development of infrastructure and growth projects which included the development of ... LNG import terminal, allocation of carbon tax funds to execute LNG projects, and more.
President Ramaphosa also promised in his state of the nation
address that he was going to consolidate South Africa’s
740 state-owned entities, SOEs. This plan included merging Petrosa, the Strategic Fuel Fund and the SA Gas Development Company, iGas, into the National Petroleum Company.
In January, PetroSA issued retrenchment notices and cut around
500 employees of its 1 424 staff. This will naturally have a devastating effect on the local economy of Mossel Bay which is dependent on the refinery. It was reported at the time that the closure of the plant would result in an estimated annual loss of R1 billion for the local economy.
There are conflicting reports currently as to whether or not PetroSA is able to pay its employees on time, despite the promises made in the media, placing thousands of jobs at risk. The Minister must please clarify this matter today. Have the employees been paid? If not, will they be paid? If so, by when will they be paid, if any ...
Furthermore, that is why the standing committee yesterday resolved to reschedule our oversight to PetroSA for the committee to be briefed on the way forward for the entity in the province and the ways in which the Western Cape might support the national government’s work in protecting the livelihoods of thousands, while bringing energy security to the Western Cape.
While PetroSA has been limping along, the years of mismanagement have now caught up with the entity, and it will
not be you Minister Gordhan, who will put food on the tables of these families at the end of the month.
The SOE is entering its sixth month without any operations because of gas shortages, and in the year before the Mossel Bay refinery was only functioning at a third of its capacity due to the reduced gas availability. To make matters worse, national government knew for 20 years that PetroSA would run out of gas this year, and it is now in 2021 and national government is shocked that PetroSA has run out of gas. So, currently we have a gas SOE that produces no gas and while all this has been happening, employees have been retained while the plant generates no income, all paid by taxpayers.
Some experts estimate that it would cost more than R8 billion to decommission the plant. Given this, it would be cheaper to run the plant at a small loss for a short while than to decommission the plant which would have a devastating economic impact on the people of Mossel Bay.
Implementing a solution to the ever-shrinking gas availability in the country could take up to 12 months and it is common knowledge that further damage to the plant will need to be
repaired before the refinery can once again operate at full capacity.
Hope came last year when Total found large gas deposits off the coast of Mossel Bay. At the time I called on national government to urgently speed up the Upstream Petroleum Resources Development Bill, which would have given Total the policy certainty and security it would need to develop these sites. However, in April, Total said it had paused its application to conduct further oil and gas exploration off the coast of South Africa and gave no reason for this decision.
The importation of LNG is the best short-term solution to protect and safeguard the thousands of jobs that are now at risk. However, national government must urgently act to secure these jobs and bring energy securing to South Africa. National government needs to upgrade the necessary infrastructure at
Gourikwa and the Transnet National Ports Authority, TNPA, Mossel Bay port in order to make the importation of LNG from Saldanha Bay and Mossel Bay ports possible. Studies show that you can import the LNG via a floating storage unit, shuttle it to a regas barge and then decide either a high-pressure pipeline on the northern line of approximately 20km or on the southern line, and then connecting it to the existing
pipeline, of approximately 24km. Since LNG is readily available ... [Inaudible.] ... you can import it and then convince Total to continue with its operations, and continue using the LNG until Total’s gas is commercially viable which will on estimate take about 10 years. This can be done while the various ports infrastructure is upgraded.
Finally, Minister Gordhan, I have been informed by various independent sources of a new development at PetroSA this week, and I do not know whether there are any merits to this matter. So, instead, I have decided to put the question to you today instead of relying on rumours on the ground. Minister Gordhan, is it true that PetroSA’s board in part or in its entirety has been dissolved this week? Chairperson, I thank you.
The MINISTER OF PUBLIC ENTERPRISES: Point of order,
Chairperson.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Okay, hon Minister, can I take the point of order?
The MINISTER OF PUBLIC ENTERPRISES: Thank you, sir. The last speaker gave us a useful education on PetroSA but you might want to inform the hon member that PetroSA is under the stable
of the Department of Mineral Resources and Energy, not Public Enterprises. Thank you very much.
The HOUSE CHAIRPERSON (Mr A J Nyambi): The point of order is sustained. It is true. It’s not under this Budget Vote. It’s under a different one; the one of hon Mantashe. Hon Du Toit?
Afrikaans:
Mnr S F DU TOIT: Agb Voorsitter, agb Minister ...
English:
... thank you for voicing your stance against corruption.
Has the Department of Public Enterprises fully fulfilled its mandate to date? What is the department’s mandate?
The department’s portfolio has seven state-owned companies that are in financial turmoil!
Afrikaans:
Kundigheid word agterwee gelaat as dit by hierdie entiteite kom, aangesien regstellende aksie en Swart Ekonomiese Bemagting die wagwoord is!
English:
No wonder our state-owned entities are in such a miserable financial state. Up to now, appointments were done on the basis of skin colour and not qualifications and expertise.
Minister Gordhan, is there any truth to the rumours that there is chloride damage to the concrete reactor containment domes at Koeberg, as well as alleged damage to the stainless steel used in the structures of the plant? Will you be able to provide a detailed report without redactions with information that is blanked out under the headings “opinion” or “sensitive technical information”?
The safety of South Africans must be placed at the top of the priority list, not the way political party Ministers are perceived to perform in their departments. False rumours must also be defeated by facts and evidence. Please state the facts, Minister. We deserve to know the truth! Can you guaranty the safety of Koeberg employees as well as people that reside in the surrounding areas?
The Department of Public Enterprises has been in the media for quite some time – not for positive reasons! This department is
one of South Africa’s large black holes into which billions of rands have been poured.
I thank the Parliamentary Monitoring Group, PMG, for the following statistics and figures: The Alexkor diamond mining plant reported a loss of R99 million in 2019-20. As such, the company is dependent on financing to settle operating expenses. This is not sustainable and exposes it to the risk of liquidation.
Denel recently had an unaudited loss of R1,8 billion in 2019- 20, compared to a loss of R1,7 billion in 2018-19. This was mainly driven by poor programme management and liquidity challenges that constrained operations and affected sales.
Regarding Eskom, government has committed to provide financial support to assist with the company’s debt?service obligations. Thus far, R49 billion in 2019-20 and R56 billion in 2020-21 have been provided, with a further R31,7 billion allocated in 2021-22 financial year.
Over three financial years, this amounts to a total of R136,7 billion. This is only for assistance with debt service costs, not for operational costs.
The list goes on: SA Airways, SA Express Airways, the SA Forestry Company, Transnet – all of them suffered losses!
The sacrifice this department makes in the pursuit of the fulfilment of its mandate is the loss of capable, skilled personnel and the drainage of funds in South Africa.
The Freedom Front Plus wants government to privatise these state-owned entities and stop cadre deployment, BEE and affirmative action. Privatised companies like Sasol contribute to job creation and the economy of South Africa.
Afrikaans:
Fokus op volhoubare, bekostigbare kragvoorsiening vir alle Suid-Afrikaners.
Minister Gordhan, skaf regstellende aksie en swart ekonomiese bemagting af, sodat aanstellings op gelyke basis kan plaasvind en kundigheid die katilisator tot groei kan wees in Suid- Afrika en in entiteite. Ek dank u.
The DEPUTY MINISTER OF PUBLIC ENTERPRISES: Hon Chairperson,
the delegates to the Assembly representing provinces as well as our local government, the hon Minister, ladies and gentlemen, I consider it an extreme privilege to participate in this important debate as led by Minister Gordhan. Before I proceed, just yesterday hon Chair in the National Assembly, there was a sombre moment at dedicated to celebrating yet another life of an hon member of the National Assembly lost to this pandemic that is ravaging the whole world.
I wish to air the voice of sympathy and solidarity to all those affected in whatever form by this pandemic. The efforts by our government aimed at defeating this pandemic, indeed need the support of all of us in society.
Hon Chairperson, it requires no rocket science appreciating the reality that the seismic effects of this pandemic are indeed of epoch making proportions. There shall be the world before COVID-19 and another after COVID-19.
It is with this understanding that the President of the Republic, President Ramaphosa has placed before the nation, the Economic Reconstruction and Recovery Plan.
The state-owned companies that our department oversees must be looked at and measured by the extent to which they contribute to the attainment of the vision articulated therein.
Continuously our efforts are aimed at positioning these entities to contribute towards accelerated growth and transformation.
State-owned enterprises are legal entities created by government to undertake commercial activities on its behalf. As in other countries, state-owned enterprises play a critical role in their economy and their financial is thus an important component of public finances overall.
For a short-term the focus by Alexkor will be to turn around the diamond operations and ensure that both Alexkor and the pulling and sharing joint venture, PSJV, are financially sustainable.
Some of the plans to be implemented include the consolidation of the two offices as well as removing duplicate functions at both head office as well as Alexander Bay where operations are taking place.
With cost-reduction initiatives implemented during this financial year, the diamond joint venture operations are expected to realise a profit following three years of loses.
The department is in a process of appointing directors in the Alexkor board to provide leadership and restore confidence in the company following government’s failures linked to state capture.
Over the past five years, Alexkor has undertaken diamond cutting and polishing activities, although on a small scale. The entity is exploring the partnership with the Kimberley International Diamond and Jewellery Academy for provision of training and skills development to local Rhicstersveld community members in the areas of diamond cutting and polishing. Although the cutting and polishing sectors derives the smallest margins along the diamond value-chain, the sector is most labour intensive and thus has greater potential for job creation.
With regard to SA Express airways, it is common knowledge that SA Express Airways has been under provisional liquidation by way of a court order since April 2019-2020. The airline has again through the leadership of those liquidators approached
the court for the extension of the period of the liquidation to 28 July 2021. This will hopefully see the completion of the sale agreement where a preferred bidder fly SA Express is expected to provide guarantees on the purchase of the shares that it has undertaken to do.
We also have underway the section 417 and 418 enquiries, where in there has to be a deeper investigation of what went wrong and in this respect both the board members as well as the management of the SA Express will be amongst the employees of the airline to be invited to account at the enquiry about the role leading up to the demise of the airline.
Through state attorney, the department has appointed a representative as well to look unto the interest of the department in this respect. It is also important to note that as part of the workers in the entity both National Union of Metalworkers, Numsa, as well as SA Cabin Crew Association, Sacca, has approached the Constitutional Court seeking clarity on certain aspects of liquidation. We are looking unto that with anticipation, so as to provide clarity on a number of questions.
With regard to SA Forestry Company SOC Limited, Safcol, this entity is currently processing approximately 15% of sore locks that is producing. We are looking as short to medium-term objectives to increase this to more than 60% and this company has already concluded a business case in respect to the timber dollar reinvestment project. This project fully implemented will ramp up the revenue generation capacity of this entities. The Safcol as well as is looking to increase revenue generation in the partnership we have with Industrial Forestais de Manica, Ifloma the company we are in partnership with the Mozambican government.
We are looking to as well collaborate with the Department of Environmental Affairs, Forestry and Fisheries in respect to developing a viable strategy to revitalise the state-owned category B AND C plantations where the majority of our people have the opportunity to participate.
The Safcol is also a key contributor in the implementation of a forestry masterplan which includes encouraging sector growth, investment job creation as well as improving competitiveness.
With regard to the business operating model at Denel, working with the board we have dealt with the challenges at present Denel continues to experience liquidity constrains while many of the operational and financial and other strategic initiatives implemented as part of the 2019 turnaround plan have been effective. There is still a lot to be achieved.
Going forward it is imperative that the business is restructured for efficiency to eliminate duplication and improve operational efficiencies. The new model will include among others, the restructuring of the balance sheet to ensure financial sustainability, reducing overheads as well as redundancies. Of course also for pursuit of access to new markets and technologies through smart partnering joint ventures as well as strategic equity partners.
We seek through this strategy reliance on government funding and expand relevance of Denel beyond just the Defence market.
I would really like as I conclude Chair, indicate with the Minister, the director-general, there is a concerted effort to make sure that these entities indeed turn around.
Just to deal with the few matters that have arisen and I am happy that we have already corrected the hon Bartman who seem to have brought a wrong speech to this debate that she actually came to a wrong Budget Vote.
We fully support the hon MEC of the Eastern Cape, the hon Mvoko on the need to ensure partnerships in pursuing as well as leveraging the Small, Medium and Micro Enterprises participation in the electricity distribution and generation industries.
I am absolutely in agreement with the hon Nana who spoke here in the sense that he needs correction. I agree he has definitely lost some ideas. It could be owing to the worthiness perhaps he should be finding himself to where he is. Countries develop differently from one another. It does not follow that to what is put to application in a particular country will have similar results in another country.
So, this assertion just bringing anything that has been tried elsewhere to say to proceed with it here it is not going to succeed. It is without merit and it is not supported by facts.
I should say hon Chair that we make no apologies for pursuing affirmative action for if we were to go by what is happening in the private sector we probably sit with a situation in which the entirety of the management function completely reflects white without a women component on it. That we will make no apology for it. However, yes in the implementation we have to look at ensuring that people with the right skills fit for purpose get appointed in positions, but affirmative action cannot be abandoned given the history we are coming from as a country. I thank you, hon Chair and again I wish to implore hon members to support this Budget Vote. Thank you very much.
Mr C F B SMIT: Hon House Chair, firstly, I want to respond to Minister Gordhan. Minister Gordhan, don’t dare to try and pretend as if you and your ANC government had no role in this chaotic situation public enterprises finds itself in today.
Where were you when the DA exposed all those corruption and called for action?
Mr M RAYI: Chair, on point of order. In terms of rule 43, a member must address the Chair when speaking. The member is now addressing the Minister directly instead of addressing through you. Thank you, Chair.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thanks very much, hon member.
Hon Smit, can you please address me not the Minister.
Mr C F B SMIT: Hon Chair, if everybody listens very carefully they would have heard that I said through the Chair.
Through Chair, I am saying, Minister where were you when the DA exposed all the corruption and called for action? Where were the President of the ANC then and then the Deputy President of the country when we voted to oust Zuma?
No, no, Minister. They say, if you look the other way when a crime is committed, you are complacent to that crime.
Minister, all of you were complacent to corruption. You and your ANC rallied around Zuma when we called for his head.
Don’t try to distance yourself from corruption now. ANC and
corruption are in the same WhatsApp group.
Hon Ntsube, I suggest next time before you debate you actually read the speech written for you beforehand. I thought you would have come up for your father-figure who hand-picked you for this position and defend him. I am sure Ace is highly
disappointed in you today. Instead, you attempted a very lame effort to justify the mess [Interjections.] [Inaudible.] find itself in.
Deputy Minister, you forgot to say that SA Forestry Company Limited, SAFCOL, hangs on the string as the majority of the land it operates on is under claim by communities and government is cheating them with rent it pays to them, which is peanuts; selfish, shameless and no care for ordinary poor South Africans.
In the business world there is something called a petty cash. For the ANC government and their chomies [friends], the Guptas, it is called public enterprises. This ANC government oversaw, enabled, allowed and even took part in the looting frenzy that we now know reached almost 50 billion through the Guptas alone.
Many of these cash cows for the ANC have no strategic relevance anymore, but rather block private investment and healthy competition that will benefit ordinary South Africans. Some examples are SA Airways, SAA, and Eskom’s power generation capacity.
But instead of getting rid of these fiscal burdens on tax paying South Africans, this government is obsessed with total control and power because it is all about the money.
The greedy vulture can’t stop licking their lips for the billions they can stuff in their pockets, sies [shame] man, you should be ashamed of yourself, ANC.
But fellow South Africans, there is a light on the horizon and that light is a DA-led government; that is accountable and responsible, that has been proven without any doubt in places where we govern like Midvaal in Gauteng, Kouga in the Eastern Cape and of course, the Western Cape province as a whole, with the majority of municipalities. We are getting clean audits after clean audits, we are innovative and business friendly, we have the lowest unemployment rate all over the country. The DA get things done.
The time for change is now. Let’s make this happen, South Africa. Because we’re stronger together, united in our diversity as individuals. Thank you, Chair.
IsiZulu:
Nk L C BEBEE: Ngiyabonga mama, Sihlalo womhlangano, ngibengelele zonke izethameli zethu ezikhona namhlanje, ngibonge ngokuthi unginikeze ithuba lokuthi ngibe yingxenye yenkulumo-mpikiswano yanamhlanje. Sihlalo wami kuyangidida kabi ukuthi umhlonishwa u-Smith angazokhuluma izindaba angazazi, ekubeni nakubo asiwathathi amawadi abo ungazuthi siyabukisa. Sebabonile abantu bakithi ukuthi sebakhathele yibona ngoba bayasibandlulula. Khona manje kusanda ukuhamba u- Van Damme, ubashiyile. Angisakhulumi ke ngabanye abazolandela kube uholoho. Akangakhulunyiswa inhliziyo ebuhlungu, ngoba azi ukuthi i-DA iyawa ...
English:
... and its dying slowly, slowly, and slowly. Hon Chairperson, the policy vote on Public Enterprises is occurring at a time when much progress has been made by the department, but this has been overshadowed by the challenges which the country is facing. The country is dealing with the challenges relating to COVID-19 pandemic and its impact on the provinces and the municipalities. The pandemic has had the negative impact on the economy.
IsiZulu:
Kanti futhi kuqhubeka njalo ukuthi ububha buye phambili, nokuthi kube nokuswelakala kwemisebenzi ingabibikho ezifundazweni.
English:
Hon Chairperson, in order to save lives and flatten the curve, the government introduced disaster management regulations to mitigate the economic effects of the pandemic. Government introduced special appropriation budgets to assist working class and poor families with grants and workers with Ters benefits to preserve jobs. In addition, Chairperson, the ANC government made funding available to ensure the survival of the companies. The challenges were compounded by the fact that SOE’s were negatively ... affected by the state capture and corruption. Hon members, the Sixth Parliament has taken up the challenges of fighting state capture and corruption, and the changes in Boards and management was the first logical step to ensure that the state capture and corruption can be defeated in the entities. The new Boards and management of the SOE’s in conjunction with the law enforcement ...
IsiZulu:
USIHLALO WENDLU (Nk W Ngwenya): Lunga elihloniphekile mama uLindi.
Nk L C BEBEE: Yebo, sthandwa.
USIHLALO WENDLU (Nk W Ngwenya): Awuthi kancane iphepha lakho, awubonakali.
Nk L C BEBEE: Kulungile ngiyaxolisa sthandwa sami.
USIHLALO WENDLU (Nk W Ngwenya): Yebo, ungaqhuba ke mama.
English:
Ms L C BEBEE: The new boards and management of the SOE’s in conjunction with the law enforcement agencies have made efforts to defeat state capture and corruption. There have been many reports that have indicated arrests, assets seizure even financial recoveries. The department whilst functioning under very challenging conditions has made steady progress in ensuring that corruption is effectively dealt with.
IsiZulu:
Siyabaqabuka ke labo ntabakayikhonjwa abasitshela indaba yokuthi sikhohlakele thina kodwa bona bayabona ukuthi zonke izinto sizihambisa ngendlela.
English:
Transparency is there. The only thing that they are doing, they are not even ...
IsiZulu:
...ukuthi baseke isabiwomali leso. Kulabo bantu ababalalele kuyinkinga enkulu kubona ngoba bazogijima bayobavotela kodwa abasiseki lesi sabiwomali esifuna ukuthi sibekhona ukuze sikwazi ukulungisa izinto.
English:
Moreover, the appointment of the new board management was critical to restore corporate governance and financial controls as set out by the PFMA. This has been very encouraging.
IsiZulu:
Into enhle iyanconywa, Ngqongqoshe.
English:
Electricity is the backbone for the functioning of the economy. No modern economy can function without the effective supply of electricity. Since 1994, the ANC government rolled out the electrification programme for townships, hospitals and schools to improve the quality of life for the majority, who
were historically disadvantaged under apartheid, hon Smith. In electricity supply, Eskom is currently the only supplier of electricity in the country and therefore there cannot merely be wished away, as some of the opposition would like us to believe.
Eskom has been faced with many challenges through state capture and corruption. Communities in all provinces have faced load shedding due to Eskom having ageing plants and its new plants, Medupi and Kusile not being fully operational. At the same electricity tariffs has gone up which impacts on household income in all provinces. The large municipality debt has negatively impacted on the finances of Eskom. This issue needs to be dealt with by government, as a matter of agency.
While there has been a reduction in this debt through the installation of prepaid meters, it is a very important solution that is found for the debt and that in all new electrification projects that prepaid are installed.
Chairperson, we must as a country a culture payment for services as these services improve the quality of life. However, in this Sixth Parliament under the leadership of the Department of Enterprise, Eskom has made progress in many areas. In terms of Eskom, the entity has commenced with in
other power stations in an attempt to reduce load shedding as much as possible. It was also worth to correct the defects in Medupi and Kusile, and most of the units in Medupi are now functional.
Hon members the entity has renegotiated its coal contracts in ensuring that it is based on the loss plus system which is transparent. Eskom has commenced restructuring of the entity to create three operating divisions for generation, transmission and distribution under a holding company. This creation of divisions is to ensure that the expansion of the electricity generation industry, to ensure that the load shedding can be eliminated. Expansion of generation capacity is important, for ensuring economic growth and development for the success of economic, reconstruction and recovery plan. The expansion of the electric sector through independent power producers, IPP, was announced by the President in the state of national address, Sona, of 2020. The expansion is going to be based on the renewable energy which will be based in different provinces.
Chairperson, this will contribute to job creation in the country and will also reduce load shedding. The restructuring of Eskom to create separate divisions will ensure that the IPP
power is able to be transmitted through the transmission division of Eskom. Chairperson, Eskom cannot be wished away as the opposition does, as every new supply independent to Eskom for transmission and distribution. The SOE is intended to refurbish its power stations which are close to the end of its life with green technology as part of just transition.
Hon Chairperson and hon members, just transition means that Eskom is committed to communities in which its plants function and this contributes to job creation and economic activities in local areas were the entity operators do. Eskom employs some 45000 workers directly and indirectly, employs 188000 workers in all the provinces in which the entity functions.
This is not a small contribution to job creation, hon members. The entity had strong revenue under difficult economic conditions and while the ... [Inaudible.] ... by its debt repayment.
Chairperson, as I conclude, there is much hard work still to be done at Eskom, to ensure the operation and financial renewal of Eskom, but encouraging start has been made. The department plans and programmes for the financial year will assist us to make even further progress to renew the entity. Chairperson, the implementation of the economic,
reconstruction and recovery plan depends on the expansion of the electricity sector and ensuring the Eskom efficient
...[Inaudible.]. The construction of load shedding and its elimination will improve the lives of the people of our country and allow for economic growth and job creation. The ANC supports the policy debate. [UKhongolose uyayeseka.].
The DEPUTY MINISTER OF PUBLIC ENTERPRISES: Chairperson, I
would like to thank all the hon members who deliberated on this budget and policy statement made by our Minister. I trust that you will find it in yourselves to support this because it is the correct thing to do.
From the outset, I want to suggest that we would should not be distracted. We have presented a plan, and at the core of that plan is the propulsion of the state-owned companies into a new and better future in which they contribute towards economic reconstruction as well as renewal.
The role and place of these entities belong in that future. We cannot run away from the fact that there has been a negative impact that has afflicted these state organs. To that effect, measures with very firm determination have been put in place to correct the situation and to reposition these entities.
We should all join hands in saying, all those who are responsible for any malfeasance, upon investigation, they must face the music. All those who do things without ... in an irregular manner, they must pay back the money. Companies, individuals ... they must pay back the money, so that the money gets re-invested for very good purposes that address the needs of our country.
I would like to deal with some of the problems or impressions created. I would firstly like to speak to issue around Koeberg. For more than two decades, Koeberg has provided clean and safe energy for most of the Western Cape, particularly the City of Cape Town, with no incident.
Safety is a priority that is safeguarded by all means possible. Even recently when some unit had to be taken out of service, the safety measures observed were of the highest calibre. Going forward, the same would apply. I hope this is not just another attempt to try and propagate negatively against nuclear energy. I know, in some quarters, it is a matter that is constantly being perpetuated.
Hon Arnold says there is no political will and goes on to suggest that government is intending to let the private sector
lead energy generation and energy provision for the country. That is far from the truth.
The point on which we must agree is ... [Inaudible.] ... is to the effect that the investment capacity of our state-owned companies is minimised. We must tap into private sector resources to advance the same cause.
This is what the Independent Power Producers programme is doing. It is filling a gap, but it should not be a permanent feature. Once Eskom has recovered its investment ability, it should also be able to pursue these cleaner forms of energy. Of course, within the just transition as enunciated. So that
... there is no way ... it is without any foundation at all.
Both the DA and the EFF seem to labour under the impression that these programmes will lend themselves to being more acceptable to the people. Hence, they project themselves as the alternative. They must just go back and look at the bi- elections that have been held. None of them attest to the fact that they are enjoying the kinds of support that they purport to have as they talk here.
I think, let’s focus on what needs to be done. We appreciate all those who have expressed themselves in support of this Budget Vote. Thank you.
APPROPRIATION BILL
(Policy debate)
Debate on vote 40: Transport:
The MINISTER OF TRANSPORT: Hon House Chair, hon Deputy Minister, Mme [Ms] Dikeledi Magadzi, hon delegates to the National Council of Provinces, fellow South Africans.
Transport enables economic activity and access to social amenities. This is a shared responsibility among the three spheres of government. The role of provinces and local government in ensuring a public transport system that serves the needs of the people and effective regulation of road traffic cannot be overemphasised.
As we continue to grapple with the effects of the COVID-19 pandemic on the economy and its disruptive effect on life as we know it, we are determined to accelerate economic recovery
interventions. The transport sector has not escaped the devastation of the pandemic and many of our people have been left unemployed and struggling to make ends meet in its wake.
We are, therefore, committed that the economic recovery and expansion potential of investing in the transport sector has to be harnessed in a targeted and highly catalytic ways. In order to truly live up to its designation as a network industry, transport must activate multiple overlapping networks of economic activity.
In this regard, transport in South Africa is central to trade, economic, social stability and unwinding apartheid spatial planning.
In our 2021-22 budget expenditure is expected to increase at an average annual rate of 8,1% from R57,3 billion in 2020-21 to R72,5 billion in 2023-24.
Although the substantial share of the department’s expenditure is directed towards rail infrastructure, maintenance, operations and inventories, the balance of the budget is reserved for the SA National Roads Agency, SANRAL, for the upgrading and maintenance of the national road network as well
as provinces and municipalities for the construction, operations and maintenance of transport infrastructure and services.
To remain within government’s ceiling for compensation of employees, spending on this item decreases at an average annual rate of 0,3% from R536,8 million in 2020-21 to R531,5 million in 2023-24. Spending on goods and services is expected to increase at an average annual rate of 2,3% from R849 million in 2020-21 to R909,7 million in 2023-24.
The allocations to the Civil Aviation programme is expected to decrease at an average annual rate of 50,8% from R2,7 billion in 2020-21 to R319,2 million in 2023-24 due to the capitalisation of Airports Company SA, ACSA, which needed support due to travel restrictions as a result of the COVID-19 pandemic in the 2020-21 financial year.
We are reviewing our aviation policy. We have seen a disturbing trend of where airports in the ownership of the State but outside of the management of ACSA and national government have been downgraded due to failure to meet technical specifications.
We have noted the downgrade of the Mahikeng and Bisho airports and the recent downgrades to the Wonderboom Airport owned by the Tshwane Metropolitan Municipality and the Gateway Airports Authority Limited, GAAL, International Airport in Polokwane owned by the provincial government of Limpopo.
To this end and in pursuance of our National Airport Development Plan, we will engage with provinces and cities who own airports and seek to have these airports placed under the management of ACSA. This will be done on a voluntary basis.
We continue to make strides in giving effect to our industrial policy by positioning South Africa as a continental manufacturing hub for rolling stock. The Gibela factory in Ekurhuleni, in the province of Gauteng, continues to ramp up its production capacity as new trains roll off the assembly line every month. As at March 2021, 25 new trains had been provisionally accepted for delivery, bringing the total number of new trains delivered to date to 61.
As we committed to returning to service our rail operations, we have identified 15 corridors across the country as priority corridors for service recovery this financial year.
The impact of the COVID-19 restrictions exposed the vulnerability of our network, resulting in occupation of the rail reserve by people who built illegal settlements on the tracks and inside the reserve. This was further exacerbated by the wanton destruction, theft and vandalism of our infrastructure.
All hands are now on deck working tirelessly to return to service passenger rail operations. Our security interventions, which are a product of collaboration with our law enforcement and intelligence authorities, are bearing fruit.
As we committed to returning to service our rail operations, we have identified the following corridors as priority corridors for service recovery this financial year: In Gauteng we have prioritised seven, in the Western Cape we have three, in KwaZulu-Natal we have four and in the Eastern Cape we have one, which is East London to Berlin.
For the Mainline Passenger Services, we have prioritised seven routes that will also be revived.
On the central line in Cape Town, work is underway to upgrade infrastructure to enable the deployment of the new trains.
Earlier this year we resumed a limited service, but remain hamstrung by the settlements on the rail line and reserve.
Notwithstanding the challenges in this corridor, we are working round the clock to ensure that all infrastructure projects are completed on time for the full resumption of service with the deployment of the new trains at the end of January 2022.
On the Mabopane corridor, infrastructure upgrades are also underway. The completion of Phase 1 of the upgrades will enable the resumption of a limited service at the end of November 2021. The resumption of the full service is planned for early December 2021.
Transfers to the Passenger Rail Agency of SA, PRASA, amount to R57 billion, accounting for an estimated 27,2% of the department’s budget over the medium-term.
Delays in the rolling stock fleet renewal programme along with poor spending on rail infrastructure and the effects of the COVID-19 pandemic, specifically lockdown restrictions, necessitated the reprioritisation of funds to support other transport sector entities. As such, PRASA received no
transfers from the department in 2020-21 for the signalling and rolling stock renewal programme. The reprioritisation included a R2,3 billion capitalisation of ACSA and the R1,1 billion once-off gratuity to the taxi industry in
2020-21.
Over the medium-term capital transfers to PRASA are expected to increase at an average annual rate 164,3%, from
R700 million in 2020-21 to R12,9 billion in 2023-24.
To offset revenue loss during the COVID-19 lockdown, operational transfers were temporarily increased in 2020-21, accommodated by reductions to capital budgets. However, as they normalise over the medium term, operational transfers to PRASA are expected to decrease at an average annual rate of 5%, from R8,8 billion in 2020-21 to R7,5 billion in 2023-24.
In our performance agreement with the President we committed to reducing the carnage on our roads by 25% by March 2024. We have been emphatic that we cannot continue to attempt to solve old problems by employing the same tactics that have not worked in the past. It is on that basis that we have sought innovative ways to tackle the intractable challenge of wayward conduct of motorists.
We have previously reflected on our plans to change traffic policing from a regular job to one that is undertaken 24 hours a day and seven days a week. We have made significant progress in this regard and have finalised all consultations with provinces, law enforcement authorities as well as organised labour.
The outstanding step is for each Provincial Executive Council to approve this determination, which will pave the way for the Minister of Public Service and Administration to place the matter before the General Public Service Bargaining Council.
We recently pronounced our intention to introduce body cameras as a new standard to reinforce traffic policing. The use of this technology will go a long way in gathering evidence on the interaction between the officers and motorists. This will undoubtedly improve the conviction rate of motorists who break the law and deal a death knell to corruption.
Our collective commitment to arrest the carnage on our roads and save life and limb must be supported by all of us. We call on organised labour to rally behind this initiative and not allow themselves to be used by those with nefarious intents when in the line of duty.
As part of strengthening the traffic management value chain, guided by the Constitution, we have started a process of looking into the possibility of streamlining and rationalising our road traffic entities.
This includes reviewing founding laws of some of these entities to ascertain areas of duplication, drivers of inefficiency and areas that require streamlining. To that effect, we are looking at the mandates of the Road Traffic Management Corporation, RTMC, the Road Traffic Infringement Agency, RTIA, and the Driving Licence Card Account, DLCA, trading entity. It is our intention to match RTMC with DLCA as soon as possible.
Closely aligned to this is the review of the service delivery model of driver and vehicle licencing. We have been paying particular attention to the challenges confronting Driving Licence Testing Centres, DLTCs, across the country, and the impact these have on the livelihoods of those who require these services to put bread on the table.
We have taken heed of the plethora of complaints by members of the public and we are taking decisive action to address the issues raised. The end-game of our interventions is improved
service delivery and enhanced efficiency in the functioning of DLTCs free of corruption. In the month of June, we’ll allow all interventions we’ll be making in improving the driving license regime.
We have engaged as the three spheres of government and have agreed on a range of measures that will address the most pressing challenges relating to driver and vehicle licensing. These include longer operating hours, use of technology etc.
We have previously made a commitment to the rollout of the Administrative Adjudication of Road Traffic Offences, AARTO, Act of 1998, bolstered by the AARTO Amendment Act which was signed into law by the President on 13 August 2019.
Over the medium-term, we have allocated to the Road Traffic Infringement Agency, RTIA, R545 million to fund the rollout, R215 million has been allocated for the current financial year. We are on track with our target to proclaim 1 July 2021 as the effective date for the nationwide rollout of AARTO.
There is a symbiotic relationship between the carnage on our roads and the state of health of the Road Accident Fund, RAF. Despite this, there has not been a nexus between the fuel levy
and the number of accidents that occur on public roads. However, to exacerbate this challenge is the ever-increasing administrative costs of the RAF scheme. The RAF has operated on a financially unsustainable model for a number of decades. The long-term liabilities of the fund are now government’s largest contingent liability. In recent years, the fund has also experienced liquidity challenges as claims against the fund has outpaced the growth in the RAF levy.
Claims against the fund have increased at an average annual rate of 8,4% from R61,3 billion in 2017-18 to R78,2 billion in 2020-21 and are expected to increase to R102,9 billion by
2023-24. As a result, the accumulated deficit is expected to increase to R518,7 billion in 2023-24.
If we are to achieve a 3-shift economy that accelerates our economic recovery, public transport must be responsive to the needs of the workers.
In the last year we hosted a successful National Taxi Lekgotla and we are in the process of implementing most of the resolutions of the Lekgotla.
The Revised Taxi Recapitalisation Programme is key to our efforts.
The empowerment model will enable the taxi industry to play a meaningful role in the economic value chain, which must benefit every single operator irrespective of affiliation.
We have committed to scrapping 63 000 taxis by 2024. However, the pace with which the process has been unfolding has been painstakingly slow.
With an allocation of R104,1 billion over the period ahead, the department facilitates activities related to the maintenance of South Africa’s national and provincial road network. SANRAL plays a crucial role in the upgrading, maintaining and rehabilitation of our national road network. Transfers to the agency account for 31% of the department’s budget and 62,2 % of the department’s budget for road transport specifically.
A core focus over the medium-term is the upgrade of the R573, popularly known as the Moloto Road in Gauteng, with an allocation of R2,7 billion.
Transfers to fund reduced tariffs for the Gauteng Freeway Improvement Project, GFIP, amount to R2 billion over the medium-term while 53,6% or R34,8 billion of allocations to the agency are to maintain the national network of non-toll roads.
The maintenance of provincial roads is largely funded through the Provincial Roads Maintenance Grant, PRMG, with an allocation of R37,5 billion over the medium-term.
Following gazetting in July 2020 of various strategic infrastructure projects intended to stimulate the economy and job creation, a special allocation of R630 million within the PRMG for the maintenance of rural roads was made.
The department is intensifying its efforts towards the implementation of the movement from road to rail with regard to both passenger and freight.
In the year under review, we had distributed the Shova Kalula bicycles to school going children across all the nine provinces. This programme will continue and be expanded in the current financial year. We’ll further explore the expansion of the non-motorised transport for villages and so on.
The aviation sector has been severely affected by the COVID-
19. For the local aviation industry to expand and fulfil its potential, we must work towards positioning to recover and capitalise on the opportunities. We’ll certainly play a pivotal role in simplifying processes and making air travel more attractive to the public. I thank you. [Applause.]
Mr M K MMOEIEMANG: Thank you, House Chair, ...
Setswana:
... ere ke ise madume go maloko otlhe a Khansele ya Bosetšhaba ya Diporofense. Gape ke dumedise le Tona, ...
English:
... and indeed, express my appreciation in the manner in which the Minister has correctly captured key problematic areas that are at the centre of ensuring that transport as a sector, begins to actively become an integral part of our economic reconstruction and economic recovery plan.
House Chair, in any modern economy like our country, transport is critical for the movement of the people, goods and services. We must appreciate the fact that South Africa has a modern transport infrastructure system, whether you go to
aviation, rail, maritime and road. The transport sector makes a major contribution to the efficient functioning of the economy in the country, to an extent that its contribution to the Gross Domestic Product of the country, to certain extent, lies at about 7%. This is not a small contribution.
The sector also makes a positive contribution to job creation, both directly and indirectly. The different modes of transport directly employ more than 760 000 people. This clearly illustrates that the mobility which transportation confess, is linked to a level of economic output employment and income within our national economy.
In the provinces state-owned entities in the private sector, there is an emphasis on job creation and, this allows for the working class and poor communities affordable transport. We are saying this because most of our provinces at municipalities, heavily relies on the public transport system, as working class and poor communities are depended on rail and road transport for ensuring that employment and earning a decent living becomes a reality.
It is due to the importance of the efficient functioning of transport sector that government, as part of its Medium Term
Strategic Framework, MTSF, has ensured that at the centre of it, is the creation of an efficient, competitive and responsive economic infrastructure network.
This policy debate takes place within the context of what our colleagues has also characterised as a global COVID-19 pandemic and this has had a negative impact in most of the sectors. More so, the transport sector was also not spared the devastating nature of this pandemic. This ... [Inaudible.] ... negatively impacted financially on the sector as an industry.
We appreciate the fact that with the easing of the disaster management regulation, there is a steady recovery in all areas of the sector. However, the sector is still not optimally functioning at this stage. Therefore, it becomes important that safety protocols continue to be at the centre of our oversight work.
It is also important to reiterate the point raised by the Minister when he made reference to what the state President raised in the state of the nation address of 2020-21, particularly putting to the fore, the challenges and problems that are afflicting the transport sector, especially in terms
of Passenger Rail Agency of South Africa, Prasa, and rail network.
What is encouraging is the emphasis on the rebuilding of the rail line, both in the Western Cape and Mabopane, as part and parcel of the improvement of the rail services for the communities which relies on those rail lines. The railway network has suffered negatively through theft of cable rail tracks and vandalism of railway stations. But also invasion of the space that is supposed to be used to rejuvenate our rail system.
These problems of theft and vandalism is a matter that has to be addressed as matter of urgency. And we are happy that the Minister’s input, also in the presentation did raise this point. It is also important to understand that railway network in the country is integrated for the transport of both freight and passengers. Therefore, the negative impact of theft and vandalism also impacts on the movement of freight as well.
Therefore, the security of rail network becomes an urgent priority, as it is important to protect the network and the new infrastructure.
House Chair, it is important that an overall improvement in the public transport sector, as part and parcel of supporting the recovery plan, is also prioritised. We are happy that central to the plan is the infrastructure development industrialisation and local economic development through the district development model, as well as job creation.
Therefore, development in all provinces and municipalities of rail and road public transport system is very important. It is encouraging that the Minister has appointed a new board at Prasa for the overall improvement of the operation and with a clear mandate to turn the situation around.
House Chair, also the importance of the taxi industry in transporting the bulk of the working class commuters must be given priority, and we are happy that there is an appreciation and acknowledgement from the Minister that the commuters utilize this mode. Therefore, it has to be efficient, but more than that, it is a mode that is more accessible to our working class and the poor.
The regulation of this industry is critical as the department considers supporting this industry, given its importance.
However, given the performance of the rail services, the
commuters have moved from rail to road. This trend needs to be reversed, as it increases maintenance and reduces time period for the refurbishment of municipal and provincial roads. This in turn places pressure on road maintenance, refurbishment and road development budget at municipal and provincial level.
House Chair, working class families spend much time on the road travelling to and from work. And, this negatively impacts on their family time and quality of life. Students also spend a lot of time travelling to schools, colleges and universities, which negatively impacts on their study time. It is important that transport in all provinces seek to greater levels of integration of different modes of transport to achieve greater level of efficiency in the public transport sector. This enhances the quality of life of commuters from the working class and poor community background.
The cost of public transport in all provinces require low ... [Inaudible.] ... as it directly impacts on the income of the working class and poor families who are dependent on public transport. It is important that with rising leading costs and low economic growth, they are first kept to a minimum to ensure that the working class and poor families have sufficient income to put bread on the table.
Hon House chair, the state-owned entities that reports to the Department of Transport, has played an important role in enhancing economic activity and job creation in the provinces. Airports Company South Africa, ACSA, continues to ensure that, job creation takes place in their areas of operation. Over the years, South African National Roads Agency SOC Ltd, SANRAL, has played a major role in the development of the route network.
However, the issue that has debilitated its efficient function has been the Gauteng e-tolls development on the N1. This issue requires resolution to enable SANRAL to continue functioning as a successful entity as it did in the past. Of course, we are waiting patiently because the Minister this week said that an announcement is imminent. Also, I heard the MEC of Transport in Gauteng saying that indeed a positive announcement is imminent.
In conclusion, the Department of Transport needs to improve its co-ordination with provincial and municipal departments and the department of transport is functioning under difficult conditions, but I think it is important that we appreciate the work that they are doing. The ANC, supports this policy vote. Thank you, House Chair. [Time expired.]
Mr T J BRAUTESETH: Hon Chairperson, as my colleague, hon Hunsinger, recently pointed out in the National Assembly, any budget debate should be seen in the overall context of a plan to take a department forward. In this instance our ANC friends are very fond of reminding all and sundry that their North Star – their guiding light - is the NDP 2030 goals.
I intend to drive home the same issues today.
With nine years to go before this timeline expires, the promises of, “Sustainability”, “Inclusive growth”, “A functioning economy”, “Infrastructure” and, “Support”, literally remain a pipedream.
Instead of pursuing these goals with vigour and embracing their role as the driver of South Africa, this department of Transport is more concerned with filling offices with well- paid and diverse cadres. The outcome of this a lack of inspections, empty workshops with no spares and consultants demanding payment. They seem to spend most of their time on claims, suspensions, labour-law litigations and other court cases – instead of serving civic needs.
The annual performance reports are presented merely as a platform to claim healthy bonuses for the select few whilst South Africans have to tolerate rows of empty busses, railway tracks and coaches are overgrown by weeds. Lives are being lost and destroyed because of potholes, the carnage of the Moloto corridor, Wild West traffic practices with little or no enforcement.
The fact that 94% of our exports are done by foreign ships gives a view to the lip service paid to empowering and transforming the sector. And yet the promises continue to the level of absurdity.
There is a R172 billion plan to fix Passenger Rail Agency of South Africa, Prasa, to modernise our aging trains and infrastructure. Except for the fact that a tortoise would be quicker, to date, only one station has been completed in the last five years. That’s out of a planned 135 priority stations. And, by the time the work is all done, it will be outdated and a new Minister will have to start all over again.
The department cannot even spend money on time. In the previous financial year, R300 million went unspent – the same funds that were earmarked for the Public Transport program. If
this money cannot be spent here, why not spend it on eradicating the rogue criminal groups that threaten the work of SA National Road Agency Limited, Sanral?
Action plans are presented daily, partly to placate the concerns raised by the AG but also simply kick the can down the road as every plan requires a forum, a round table, realignment of priorities and eventually leads to another, new, action plan.
And so the wheels go round and round but the busses and trains go nowhere. And, the failures keep rolling in. The e-Tolls project needs R1 billion per year to service debt which ballooned from R22 billion to R40 billon with a 100% foreign- owned company being the beneficiary of this incompetence. So much for the Freedom Charter!
The Road Accident Fund, Raf, currently operates at a loss of R9 billion per month with liabilities increasingly exceeding assets, mainly due to the fact that industry insiders have been informed that the capacity of the Raf’s in-house legal counsel has been stripped bare and are sent like lambs to the slaughter in the abattoirs of highly paid and experienced opponents.
The ANC’s transport bus is on bricks, the tires have been stolen and the rest is being stolen to sell off for spare parts. If that is what radical economic transformation entails, it is abundantly clear that the whole operation should be turned over to the party of clean governance and workable strategies, the DA.
In the City of Cape Town alone, the difference is evident.
The My Citi buses operate every day and run on time, every time. This massively boosts the transport of residents but also tourists, one of the main lifeblood veins of the city.
Massive funding is spent on constant maintenance. An entire transport security force has been established.
Huge amounts are spent on ranks and routes to reduce the effects of apartheid spatial planning. Motorists avoid queues and boost productivity by renewing licensing documents online.
Integrated transport projects to transport residents safely from their homes by bus and minibus taxis to their destinations are an actual reality.
In fact, it is clear that it is the DA that has the most cogent plan, the competence and the will to execute the lofty ideals of the NDP. The ANC must step down, get out of the way and let us do it! Simply put: The DA gets things done! Thank you!
Mr I NTSUBE: Thank you very much, hon House Chair, hon Minister Mbalula, hon members of the Council, this policy debate is occurring at a time when the transport sector is being negatively affected by the COVID-19 pandemic. The disaster management regulation to flatten the curve, meant that most modes of public transport were unable to function.
The Department of Transport has had to operate and function - in the past financial year - under challenging conditions. The state-owned entities under the department have been performing well with strong revenues and balance sheets, but have been weakened due to the global lockdown and the discontinued international domestic air travel. Road and railway transport could not function as it was important to flatten the curve in order to save the lives of our people.
With the easing disaster management regulation, the transport sector has commenced functioning, initially road transport,
and then rail and civil aviation was last. However, the public transport sector has is still functioning sub optimally.
Challenges makes people and countries resilient to find optimal solution, at the same time it presents opportunities.
This country, prior to the COVID-19 pandemic, was experiencing low economic growth and this was compounded by the pandemic.
In the response, the President, in his state of the nation address 2020-21, spoke to transport infrastructure development in terms of ports, rail and road. More importantly, in a joint sitting of both Houses of Parliament, the President outlined the economic recovery and reconstruction plan which reinforced the development of transport infrastructure as part of the economic renewal plan for the country.
Railway plays an important role in the movement of goods and passengers as a country has singly integrated railway network for the movement of freight and passengers. The provinces in which mining is an important economic activity, relies on rail to transport minerals to ports for export. This activity not only benefit provinces, but also assist the country with its own balance of payment.
Rail is an effective mode of transport and it reduces transport time at the cheapest cost to commuters. This is an especially important mode of transport for commuters from the working class and poor communities as this mode, through Passenger Rail Agency of South Africa, Prasa, are important to the economic function provinces.
Government has correctly taken position on ensuring the movement of freight that goes from road to rail. This is largely due to the impact of heavy duty on the roads, resulting in increased and faster refurbishments of roads not planned. This negatively impact on municipal and provincial budget for roads. The policy is already being implemented and needs to be intensified in an efficient manner.
Hon House Chair, over a number of years, Prasa has faced many problems in relation to commuter rail services in provinces and municipalities. This occurred through an aging train fleet which has been unable to consistently provide an effective train service. This was compounded through vandalism and cable thefts, rail lines and stations.
Arson at train stations like Cape Town, has reduced a number of trains sets available for services. The vandalism of rail
tracks and cables has also meant that some major lines have not been functioning in cities. The encroachment of rail servitude is a risk to the functioning of deficient operation of service for both passengers and freight and needs to be dealt with immediately.
These factors have negatively affected committed commuters who prefer to utilise rail as their mode of transport. Security of rail facilities becomes a critical factor in all provinces to ensure efficient functioning of commuters’ rail system. Prasa has also been faced with accusations of corruption and instability, in terms of corporate governance and weaknesses in financial control.
For a while, the entity was placed under administration. It is encouraging that Prasa now has a new board with clear mandate which is going to improve on co-operative governance, management and financial controls. This goes well for the functioning and the future growth of the entity.
In his state of the nation address 2020-21, the President, amongst other important matter, raised issues of improving the rail services through the development of Mabopane line and central line in Cape Town. This line plays an important
transport role for working class communities. Communities should be provided an effective service at cheaper prices.
The working class and poor families spend too much of their mere income on a public transport, and this requires to be reviewed, hon House Chair. The development of transport through ports and railway is critical to the plan. The department has made an announcement of improvement of security of the rail facility, given intension of upgrading the railway stations, railways tracks and increasing train sets available for service.
The manufacturing of stock rolling stock by Prasa at a factory in Ekhurleni will be geared to locally produce 65% of trains utilized in the country. The department has already announced
57 billion in the rail infrastructure investment. This is intended to improve stations and ensure the availability of more train sets to service the community.
What is also encouraging is the development of high speed railway services between Durban and Gauteng; which will improve efficiency for passengers, transport and goods. Such investment is intended to improve the quality of life for people spending less time on transport than currently the case
given the efficiency of the rail. Rail has economies of scale of transportation of commuters and freight; and this will positively contribute to economic development in provinces and municipalities across the country.
In conclusion, the department has already made a steady and determined progress under challenging conditions to ensure that there is a turnaround strategy in place. The sub-optimal functioning of the transport sector due to the pandemic, makes the task of the renewal more challenging. However, the greater condition in the national department and provincial, local authorities is critical to the implementation of the infrastructure plans for the rail sector.
With renewed focus and energy, the department will realise its vision and plans for the rail sector and for the benefit of all people. Hon House Chair, the ANC supports this policy debate. Thank you very much.
Ms W TIKANA-GXOTHIWE (Eastern Cape - MEC): House Chair, I request that I don’t use my video because of the network challenges. Hon Minister of Transport, Deputy Minister, members of the NCOP, government officials, good day, I am addressing this hybrid sitting of the NCOP with a heavy heart
after witnessing for the past three days the destruction of property and infrastructure during the protest action at various towns across the Eastern Cape Province.
While the majority of communities are raise legitimate demands, we cannot condone the violence that accompanies the cries for service delivery. Such tendencies do not only impact negatively on the safety and security of our communities but also bring to a halt an economy already under distress from the informal to formal traders. It is putting at risk livelihoods. With that in mind, I wish to call on the leadership collective in this House as well as other strategic community in House to add their voice in discouraging those distracting elements in our communities.
Hon House Chair, we welcome the budget tabled by the hon Minister, notable for our mainly rural province is the commitment to retain rail service operation for the East London to Berlin corridor. This will enable commuters access to the most affordable and safe mode of transport.
As a province we are also steadfast in our commitment of ensuring the provision of an accessible safe, reliable and integrated transport system. A budget of R5, 1 billion has
been set aside for the implementation of our plan over the 2021-22 Financial Year.
We are on record as having acknowledged that the majority of our roads are in a poor condition and as such almost half of our budget which is R2,3 billion is allocated for the improvement of road infrastructure. Priority is in infrastructure that connects our people in basic service delivery and tourism amenities. In this regard, some of the projects currently underway include Hluleka Nature Reserve that connects to Saint Barnabas Hospital, Willowvale to Dwesa Nature Reserve, DR08125 from the N2 to Sipetu Hospital Phase 2 and Sterkspruit to Mlamli Hospital.
All the nine Bailey bridges that we are committed to build with technical support from South African National Defence Force, SANDF, have been completed and I handed over the last two to the community of Jozana and Ndofela in Sterkspruit.
Reseal, rehabilitation maintenance projects are being implemented at various routes including the construction of storm water drainage and bridges. Our efforts were in the last financial year given a boost when we received R86,1 million from the Presidential Employment Stimulus Programme. Project that benefited from this include 6km interlocking brick paving
project DR8551 at Macubeni in Cacadu, 8km interlocking brick paving project in Hill town, Fort Beaufort and unlocking of the road to Tsolwana Nature Reserve.
Hon House Chair, the transportation of learners who reside within 5km on more from the nearest school is an important government programme contributing to securing the future of the Eastern Cape. An amount of R659 million has been set aside to transport 103 learners for the current academic year an increase from 84 learners in the previous year.
I wish to report that communities in the Nelson Mandela Metro Municipality appreciated the newly introduced online booking system in our Driving Licence Testing Centres, DLTCs. A senior citizen wrote a letter to a local newspaper to share her experience of an efficient and professional services. Well- done to the team of the Korsten Drivers Licence Testing Centre. We must forger ahead and ensure that all our systems are filled with the system, coupled with this will be the continued training and development of our officers which will guarantee our people a seamless and professional service across the board.
As a province we have also opened borders to enable motorists to renew vehicle licences at any traffic station in the Eastern Cape province. Through our community based programme, we are implementing strategic interventions to support our rural communities. One of the completed project is the Jubilee taxi rank from the Mthatha area. Work is underway for the upgrading of Cala area and Khowa taxi rank in Sakhisizwe Local Municipality. Fencing projects are also implemented in Buffalo City Metropolitan Municipality along the road from Ndevana in Zwelitsha and it will cost R4,1 million and from Butterworth to Centane with an investment of R6,3 million in Mnquma Local Municipality. Both projets have lifted much better needed jobs for the society.
As the Eastern Cape, we support the adoption of the Department of Transport Budget Vote of 2021-2022 Financial Year. Thank you, House Chair.
Xitsonga:
Ms B T MATHEVULA: Mutshamaxitulu,
English:
... the EFF rejects Budget Vote 40: Transport. Our people in
Gauteng don’t want e-tolls and that has been made clear. They
cannot afford it today or tomorrow. Remove those things from our highways. Corrupt contracts are benefiting comrades.
Minister, we have told you countless time that there are immediate measures we can put in place to prevent further loss of lives in Moloto Road between Tshwane and Kwandebele.
In the immediate, put cat lights all over that place. Put speed humps especially in residential areas, put cameras and have permanent stationed team there to patrol the area.
Make the Moloto Road corruption free zone. No one must drive road unworthy car; no one must drive under the influence of alcohol; no one must drive with an expired license; and lastly, no one must drive a car that is overloaded. These are only short-term, Minister. Long-term solutions depend on us expropriating land without compensation into the custodianship of the state.
We cannot rethink our spatial planning that influence transport planning on apartheid spatial design. You are fighting a losing battle. We need the land to plan new cities and towns, realistic cities and town not informal settlements or imaginary Lanseria smart city that is just copy and paste
from people looking to make profit. We need knew economy that will decentralise and depopulate metros that are overpopulated. It is only then that we can have a transport plan that talks to moving people and goods in an efficient manner. It is only the that you can revive railway system that can take off large number of trucks in our roads transporting things that should be transported by rail and sea, and not road.
You go to towns in the Eastern Cape where trucks from the Northern Cape are transporting manganese drive pass, when dilapidated railway lies fallow next to the roads.
Municipalities do not have capacity to maintain roads and town infrastructure bombarded by high numbers of trucks on a daily basis. These are the very same trucks that contribute to congestion and high number of accidents on our roads.
On the Passenger Rail Agency of South Africa, Prasa, Minister, we listened while you made commitments in the National Assembly about stations and timelines to revive some busy stations and make sure that there are trains running. We want to tell you for free, you will not achieve anything if you are still going to work according to tenders. You will forever be working backwards and you know this. Find talented managers
and give them resources and clear mandate to establish a maintenance and refurbishment team at Prasa. Allow them to appoint as many artisans, engineers, town planners and architects internally and not through a tenders.
Minister, road and transport network play an important role in any country economy. Without adequate and maintenance of highways and rural roads we not going anywhere as country, every year in and out your department is allocated budget to build new roads and maintain the old ones but your department is failing and as country we experienced lot of accidents caused by potholes and many life ‘s has been lost.
Minister, in Limpopo alone the Department Public Works and its entity the Road Agency Limpopo, Ral, is facing R118 millions worth of claims and R40,2 million from pending claims of damages caused by potholes and I know you love shifting blames and say that those road are not your responsibility but for provinces.
Minister, this is your responsiblity you must account because provincial department is failing to deliver safe roads in our country I will only mention few road where people continue to loose life because of potholes.
Minister, a road between Giyani and Nsami in Limpopo in Mopani is full of potholes and has already claim lives. A road from Makhado to Shikwarani D959 in Vhembe in Limpopo life has be lost there, due to potholes. A Road from Makhado to Vivo All Days R522 In Vhembe. In Limpopo life has been lost through potholes.
A Road between Xawela and Nkomo village D3738 in Mopani in Limpopo many lives have been lost there due to potholes.
Xitsonga:
Holobye, man’wana ya mapatu lama loko ku ne mpfula mi nga hoxa xinjovo mi phasa tinhlampfi. Hi kombela mi hi lunghisela mapatu, Holobye.
English:
As the EFF we call upon the department to establish a state- owned road construction company which delivered proper road and safe lives in our country.
Xitsonga:
Ndza khensa, Mutshamaxitulu
Ms M LERULE-RAMAKHANYA (Limpopo – MEC, Transport, Safety, Security and Liaison): House Chair, let me thank you for the opportunity and the time that you have given us. Let me also greet the hon members, the Ministers, Deputy Ministers, my colleagues MECs, members of the House and also members in attendance. I think I should start by saying that as Limpopo we are here to also add our voice in supporting the policy Vote as we debate it this afternoon.
House Chair, let me acknowledge the fact that the COVID-19 pandemic has indeed set us back and afflicted a serious setback in various sectors of our economy, and we were not spared as the transport industry because we had to reverse more plans that would have been achieved in terms of making sure that the industry participates and contribute meaningfully towards the economy.
It has been indeed a very difficult period for millions of our people who rely on public transport to commute between their homestead and their places of work. The budget presented by the hon Minister of Transport, hon Minister Fikile Mbalula, has captured and reflected on the path that we are taking as government to address the current challenges. The Minister has alluded to transport as the backbone of our economy, and very
well it is central to trade in the confinement of our own borders and abroad.
The massive transportation of goods on our roads and across the borders is very central to the growth of the economy and it has been affected seriously by the pandemic. The priority towards the various corridors, as the Minister has alluded to and with us in Limpopo, such as the Johannesburg to Musina corridor, amongst others. As a province we have the Musina- Makhado special economic zone, as alluded in the Budget Vote, which also affirms the commitment by this government to advance the interest of our people and to strive for a strong and sustainable economy.
The railway network will be significant to advance the goal of growing our economy. Over the years we relied only on trucks to transport all kinds of goods to the Southern African Development Community, SADC, through the borders. You will know and understand that as Limpopo, because we are the last province towards the Baitbridge border, we are indeed very happy when we hear the advancement on the railway network because it will reduce the trucks that we experience in the roads that we have. The railway network will alleviate some of these challenges by transporting goods at a faster and
reliable pace. It is therefore comforting that the budget is also catering for the security of the rail infrastructure to ensure that business continue without any hindrances.
In Limpopo currently within our own economic cluster we have concluded and focus on two issues. We have looked and already railway has started to work around transporting the citrus fruit that the network and the agreements that we have with Transnet as a province starts to transport goods of farmers from Musina until the port in Durban. Through this infrastructure and the improvement and the budget, we are going to see much improvement of our own farmers benefitting and we are happy as a department that we are indeed on track with this. The second issue as Limpopo as a joint effort within the economic cluster, we have also engaged with local government to make sure that in any transport infrastructure that exists the local government or through Cogta at a provincial level, we need to intensify the awareness campaign where we need to talk to our communities not to build houses or not to encroach with buildings next to the infrastructure, especially because some of the railway passes through town and townships in our areas. In some instances, it goes though villages.
Hon House Chair, the decline of road carnage in the previous festive and Easter season is well noted and it is in line with the commitment made to reduce the fatalities by 25% in the next coming three years. We must also note that the budget presented will also look at some of the provinces such as Limpopo and other provinces, as my colleague in the Eastern alluded, that are still recording high fatal accidents.
The move to have law enforcers working a 24-7 shift will indeed go a long way in reducing the carnage, most especially in rural provinces where most accidents occur late at night or in the early hours of the morning. The trend is nearly the same in most of our provinces where similar accidents normally happen on weekends because of speed, alcohol, reckless driving and negligent driving as common causes. Our motorists tend to obey traffic rules when they see officers on the road, and the intervention announced by the hon Minister will deal precisely with the visibility of law enforcement in all our national and provincial roads.
Hon House Chair, I must also commend the move by the Minister for introducing the body cameras to monitor the interaction between our members of law enforcement on our roads and the motorists. This bold move will go a long way in dealing with
the perception that officers are demanding bribes instead of applying law in the form of fines and summons. I am sure you are quite aware of what is trending and happening with regards to an officer in Limpopo where we see an officer taking a bribe or people who had actually gone to offer bribe and start by recording when they are doing that. I think if we quickly implement the body camera policy as a department will be able, not to only save law enforcement officers from losing their jobs, but we will also increase the Budget Vote by collecting money where we are supposed to collect.
The Department of Transport under the stewardship of the hon Minister is recognised for delivering on its own promises.
There is no doubt that the pilot project on body cameras will speedily roll out to all provinces, and as Limpopo we are eagerly waiting. We also want to say the transport subsidy policy, which is in the final stages, is also another positive milestone to note for us as a province. This finalisation of the policy is very key to public transport users. Limpopo is predominantly rural and public transport remains the only hope for millions of our masses where most of them do not own cars, they rely on the buses and taxis to commute between their work places and their own homes.
In the past year the department has spent a million of rands subsidising buses and taxis despite the challenges brought by COVID-19. You will understand that we had to do that because after the lockdown levels the buses and the taxis had to go out and they needed to recover as businesses to be able to continue to open doors and transport our people. Key to the resolution taken at the Taxi Makgutla is that the finalisation of the policy will benefit millions of our people who only have subsidised transport as their only means of commuting to work.
We have noted, as the province of Limpopo, that most of the people that are benefiting through our bus and taxi system are people that are working in places where they might not be able to have money or be classified to be the middle income. They remain below par for them to be able to survive. So, we welcome the policy.
As I conclude, House Chair, we want to say as the province we support the Vote as we are debating it. Thank you very much.
Mr D MITCHELL (Western Cape): Hon Chairperson, hon members, delegates from provinces, hon Minister and Deputy Minister, ladies and gentlemen, it is an honour for me as the Western
Cape Minister of Transport and Public Works to represent the Western Cape Provincial Parliament today in the National Council of Provinces during this very important discussion.
While transport has always been a major factor in overall life in South Africa, it has increasingly emerged as a decisive consideration in our society, whether as an essential means of keeping the economy going or to ensure that our vital frontline health workers and infected patients can access our widely-spread health facilities.
We therefore welcome the further implementation of the Integrated Public Transport Networks, IPTNs, and the associated increase in the Public Transport Network Grant over the Medium-Term Expenditure Framework, MTEF, period. In the Western Cape this will be helpful for the financial sustainability of the George Integrated Public Transport Network and for the implementation of phase 4A which is planned for this financial year. The major development in the history of this project will double the number of daily trips on the Go George service, contributing to the doubling of the overall IPTN trips referenced in the Minister’s speech.
The Western Cape generally supports the proposal to extend the bus rapid transport operating hours to 20 hours per day, but note that services should be designed in response to the context and the specific needs of passengers. In cities, a 20- hour service may be appropriate but not in others, while the operating requirements in smaller cities differ from those in large metropolitan centres. The cost implications of increasing operating hours would also need to be considered.
We welcome the provision of the additional support for the minibus-taxi industry, which for too long has not received the assistance from the government that it deserves as the main mode of public transport and a major business sector in its own right.
Over the last year, the Western Cape government has made remarkable progress in building new and stronger partnerships with the minibus-taxi industry. The ground-breaking implementation of the Red Dot taxi project, a partnership between the department and the provincial minibus-taxi industry which continues to provide services in support of the fight against COVID-19, laid the foundation for the development of the Blue Dot taxi pilot project.
The innovative Blue Dot taxi pilot project went live on
15 May 2021. The pilot, which will run for nine months, will see the participation of more than 600 operators and up to
1 300 vehicles distributed across all regions of the province in a new incentive programme which will reward improved driving behaviour and service quality while encouraging reduced instances of illegal operations and violent conflict. Performance is monitored by the department, using the on-board tracker, on the ground monitors and a bespoke technology system developed by the department, while passengers and other road users can provide feedback via their cellphones.
The project has the full support of the provincial taxi industry. Eight new companies have been established by all eight of the province’s regional taxi councils to participate in the pilot along with Umanyano Travel Services, the company established by the members of the SA National Taxi Council, Santaco’s provincial branch to participate in the Red Dot taxi initiative. These developments represent a giant leap forward for the formalisation, empowerment and transformation of the minibus-taxi industry and are a first in the country.
I call upon the national Minister and the national Department of Transport to make additional funding available for the
expansion of the Blue Dot beyond the pilot phase, so that additional participants can be included and the impact of the project on the lives and transport experiences of the citizens of this province can be scaled up.
My department has reviewed the draft national public transport subsidy policy thoroughly and while there is much to support, we are concerned by many of its proposals and do not believe that it is practical or workable in its current form. I urge the national Department of Transport to engage further with stakeholders, including the provincial and local spheres, in order to consider substantial changes to the document before it is finalised.
On behalf of the commuters of the Cape Town Metro, I am desperate to see the rail network restored to its former glory, including the restoration of services on the central line, which is so important to so many of our citizens as they strive to access opportunities for work and education. The Western Cape recommits to providing whatever support we can to the process. My department concluded a memorandum of agreement with the Passenger Rail Agency of SA, Prasa, in 2020 affirming this position and we stand ready to assist.
The support we can provide ranges from technical planning through security technology to direct implementation of initiatives. For example, we have offered to help establish a temporary rail replacement bus service to assist commuters left stranded by the problems with the central line, and have assisted Metrorail with the restoration of the rail reserve over the last year.
We would also call on the national Department of Transport to consider increasing the autonomy of the Metrorail regions so that regional managers are better empowered to address the challenges they face.
While we acknowledge the initiative that the national department is taking to address the concept of integrated ticketing, my department is concerned that the proposed initiative may introduce more complexity rather than improve efficiency and reduce costs. Given that two of the cities in the province already have operational automated fare- collection systems that comply with existing national regulations, we would welcome continued engagement with the national department on these proposals.
Finally, as part of the effort to address the ongoing transport challenges in the Western Cape, my department is working towards establishing the Western Cape transport authority, which will work to significantly improve public transport by developing a safe, reliable and affordable system for the citizens of this province. It will drive integration between rail, bus, minibus taxi and other modes of public transport, working with local authorities and public transport operators to achieve the results. The Western Cape transport authority is a response to the ongoing challenges of fragmented responsibility for public transport functions and the institutional decline experienced across the sector, both of which have been major stumbling blocks to progress. I thank you, Chair.
Mr J MAMABOLO (Gauteng – MEC: Transport & Road Infrastructure): Good evening, hon members. I must apologise, we are in Mpumalanga with the Premier. But let me, on behalf of our provincial government, take this opportunity to greet the hon Minister, hon Deputy Minister, the chair of the select committee, hon members present and all the colleagues, the MECs, to this very important budget debate.
For us as the province of Gauteng we are presenting this at the time when our country, and of course the whole world, is undergoing a very difficult period of COVID-19. We want to also acknowledge the speeches by the Minister, the Deputy Minister, all the MECs, and of course all the points made by the hon members, but we believe that the Minister’s speech helps us a lot as a province to set a strategic way forward to which we must direct our resources.
The budget of the province of Gauteng will be directed, firstly, towards making sure that ...
The HOUSE CHAIRPERSON (Ms W Ngwenya): MEC? Hon Mamabolo, can you please open your video? Please, as we have agreed that each and every speaker must open their video. Thank you.
Mr J MAMABOLO (Gauteng – MEC: Transport & Road Infrastructure): Can you still hear me, hon House Chair? Can you hear me? To optimise the ...
The HOUSE CHAIRPERSON (Ms W Ngwenya): I can hear you, MEC, you can continue.
Mr J MAMABOLO (Gauteng – MEC: Transport & Road Infrastructure): Thank you very much for your indulgence. I was making a point that the ...
Sesotho:
MODULASETULO WA NTLO: (Mof W Ngwenya): Setshwantsho sa hao, Ntate! Ke kopa setshwantsho sa hao.
Mr J MAMABOLO (Gauteng – MEC: Transport & Road Infrastructure): Okay, I thought that because of the difficulty of the network maybe I could optimise the connectivity by maybe switching off the video. However, having said that, I was saying that the budget of the province of Gauteng will be directed towards growing the economy of our province, and in that regard we have identified movement of freight and goods as a very important contributor to the economic recovery and reconstruction. To that extent we will be working with various partners in the province and various government institutions to make sure that we are able to grow the economy of our province using freight. We are already participating in the initiatives that are being led by the Airports Company of South Africa, ACSA, in the implementation of the midfield cargo and passenger terminal master plan.
We are also working with Transnet in making sure that we promote freight and movement of goods in the province. We are also in this regard driving delivery of the key infrastructure to support the movement of goods in the province. We have set aside resources to drive the construction of roads around the Rosslyn and Pyramid hubs in the City of Tshwane, and we are looking forward to building the roads K20, K17, K8, K63 and K6 which have been identified as critical infrastructure to support economic development. we will be working with the Industrial Development Corporation, IDC, to produce a transport master plan for the area and of course the roads that I have referred to will be quite critical to support movement of goods and freight.
We have also identified not just a road network but transport infrastructure in general and it is for this reason that we are looking at the rehabilitation of the 14,5 km of roads between Diepsloot and the Muldersdrift in the West Rand, and we are quite confident that this project will be met in time in the right quality and within the cost. We are looking at the roads in Mamelodi, the improvement of K54, K69, P156, P241 and all these hon members are amongst the main roads that we will be building to make sure that we support and improve the
economy of our province. I must say that the resources and budgets have been set aside to support this initiative.
We are also working very hard to direct our budget in supporting the district municipality of Sedibeng on the road infrastructure and in this case we are looking at Emfuleni Local Municipality. We have rehabilitated three road projects that were completed at a cost of R9 million. These were critical roads of Adams Road, Moshoeshoe Road, Vilakazi Street. We are currently spending about R172 million supporting the road network in Emfuleni Municipality to complete the rehabilitation of 21 roads.
Hon members, we are also working on the pilot bus subsidy. As the matter stands, the issue of the bus subsidy has been an area of concern for us in the province. We have been having difficulty that many bus companies have not been claiming their money because the contracts that they are sitting on are too old, too costly and they are not helping them to be able to improve and renew the fleet and improve the service as these contracts were only advertised for the first and last time in 1998. We have received the support of the Minister to renew and re-advertise these contracts with a massive
transformation that will definitely deal with the monopolies in this space.
We are looking at a transformation of the taxi industry. We have already received a report of the commission of inquiry into taxi violence and we are currently making sure that we finalise the details of our plan so that in this very financial year we will be implementing the critical aspects of the report. This report is quite critical to stabilising our province. We are looking at improving our Driving Licence Testing Centres, DLTCs, and we are working with the Road Traffic Management Corporation at national. We must commend the Minister for his support to make sure that we address the challenges that are affecting our DLTCs.
I want to conclude by mentioning that we are looking at issues of building our institutional capacity and the organisational structure. As I am speaking to you, hon members, we have just completed a recruitment of the top layer of the management; our 4 deputy director generals, DDGs, and heads of department, HODs, have been appointed. So, all our positions at the DDG level have been filled.
We have appointed the Gauteng Transport Authority which must help us with transport integration. We are looking at the expansion of the Gautrain and the Gautrain Management Agency, GMA, which is one of the best institutions in our province, is actually giving us best practice on how to ensure that we build state capacity that is efficient and effective to be able to deliver on the commitments we have made. That is why we were able to announce and unveil the Gauteng Transport Infrastructure House which is a virtual house that is helping us to drive a multibillion transport infrastructure improvement programme.
As we are delivering services we are also strengthening the capacity of our state institutions by appointing leaders, dealing with issues of organisational structure, stabilising the department and working with the municipalities through intergovernmental Relations, IGR, structures as they are also part of the overall capacity of government to deliver services. Thank you very much, hon members.
The DEPUTY MINISTER OF TRANSPORT: Thank you very much ...
Sepedi:
...Modulasetulo wa Ngwako.
Xitsonga:
Ndzi rhandza ku sungula hi ku xewete Holobye wa swa Vutleketli laha Afrika-Dzonga, Tatana Mbalula, Mutshamaxitulu wa Komiti ya Huvo ya Swifundzankulu ya swa Vutleketli, Tatana Mmoiemang, ku katsa ni swirho swa komitinkulu, MECs, hinkwaswo leswi nga kona laha ...
English:
... and hon members of this august House. Let me indicate that ladies and gentlemen last week Friday in the National Assembly we spoke and reaffirmed our respectful revolutionary contribution of our Stalwart, Mme Charlotte Maxeke, as this is the year that we must always remember her 150 years of life and we continue to take queue from what he has said to us and made sure that we deal with issues of socioeconomic transformation as that was one of her ... [Inaudible.] subject.
As South Africans, hon members, we have come to understand that our capacity to change the destiny of South African people rest with inclusive programme that must promote broader economic participation, eradicate poverty and drastically reduce inequalities so as to battle the devastation of the coronavirus disease 2019, Covid-19, pandemic as we have seen
it throughout the world. In the process of our attack on these challenges we must equally commit our efforts towards eradication of gender and disability-base discrimination as resulted of exclusion abuse, violence and exploitation of women and persons with disabilities. We understand that our transforming the environment of transport is meant to enable economic growth.
We cannot fully realise this objective of broad-based inclusion and work sphere if the transport environment remains inaccessible and unsafe to the many vulnerable people of our country. Transforming the environment, House Chairperson, can only be objectively achieved in the satisfaction of the needs of a public transport user who must feel safe, a public transport user who must feel secure and find it easy to access public transport facilities and services. The draft road transport policy for South Africa is emphatic in its statement of universal access directing that in the designs of roads and street critically we must follow the design that will be appropriate and safe. We anticipate that by September this year the initial universal accessible Integrated Public Transport Network services will be operational in the cities of Polokwane, Mangaung and Rustenburg. In achieving this we believe that these cities will be able to make sure that the
Integrated Public Transport Network, IPTN, are both fair and affordable. Universally the designs of the buses that have already been procured by these cities and we are looking forward for the launching of these three underserved provinces where we will be able to make sure that our people can be able to have easy universal access.
We also as the Department of Transport have disability forum with terms of reference that have been approved. This is in addition to building capacity of the transport sector transformation forum which needs regularly to look at the best practices of mainstreaming gender of making sure that youth, women, children and people with disability issues are taken into consideration. Representatives of this forum emanates from the Department of Transport from provinces. Our state- owned entities are the people who are sitting in this forum.
Hon members, the Department of Transport through its annual performance plan understands the urgency with which these strategic objectives need to be met and be extended so that the impact can be felt. On assuming our responsibilities in 2019, we’re committed to fix the transport, but not only fixing the ... [Inaudible.] ... as represented by institutional, by policy, legislative regulatory and other
such mechanisms. However, we intend to fix this sector by looking at the challenges that are facing South Africans. In line with the sixth administration our focus, this Medium-Term Strategic Framework, MTSF, as the department is reviewing policies to ensure that we effectively tackle the triple challenges faced in order to further promote and advance persons or categories of person disadvantaged by unfair discrimination.
The ... [Inaudible.] ... point that I want to talk about is the White Paper on national transport policy and the review of aviation policy which have recently been launched by the department during the summit which involved stakeholders. Both these reviews are aimed at fast-tracking the transformation of this sector. This is not withstanding the National Rail Policy Draft White Paper which seeks to enable economic and social development by promoting small, medium and micro enterprises, SMMEs, co-operatives and rural development and broad-based black economic empowerment, BBBEE, and important issues to create jobs.
The Minister of Transport, Minister Mbalula, has to this effect made sure that we fast-track transformation and committed all of us in the transformational agenda that must
focus on, but not limited to the following: we should focus on the transformation of the construction, engineering, aviation, maritime sector in line with the national transformation imperatives in a manner that broadens economic participation, economic growth and creating jobs. And also we must make sure that we contribute towards a broad-based black economic empowerment, skills development and the growth of small, medium, micro enterprises and co-operatives with a particular buyer and a particular focus towards townships, small towns and rural economies.
The Department of Transport strategic plan for this financial year states that in delivering the transport services to the citizenry focus is guided by the following strategic priorities, among others, safety as an enabler of service delivery infrastructure build that will stimulate economic growth and create jobs, building a maritime nation, elevating the oceans economy and accelerated transformation for greater economic participation. Hon members, today as we are speaking we are again shine the light on the intervention of the department, the provinces and the state-owned entities, SOEs, reflecting commitment to promote economic and social transformation, creating jobs and making sure that we maximise on education and skills development.
The President of the Republic of South Africa in his state of the nation address of 2018, February, he spoke about job creation, and I quote:
Infrastructure investments is key to our effort to grow the economy, create jobs, empower small businesses and provide services to our people.
The President mentioned road maintenance and other SMMEs to realise these job creation aims and based on his perspective of seeing the potential in the rural roads, infrastructure development. The President mandated Minister Mbalula to maximise job creation in the road sector using the labour- intensive method and co-operative models throughout the Republic of South Africa. The President also indicated that there must be development and support of SMMEs giving priority to women, youth and person with disabilities to make sure that they become entrepreneurs of note. The President lastly indicated that there must development and maintenance of the rural access roads which, of course, is at the centre of what the department is doing. To this effect we have prioritised labour-intensive method of road, maintenance, to maximise jobs and those who are living below poverty lines will be able to benefit out of this.
House Chairperson, the rural road programmes include but not limited to the following: providing jobs opportunities and distributing income to the local people and to those who are unemployed as these roads are being executed. It provides training and skills development ... [Interjections.] ... as I conclude, I need to indicate that South Africa, this year, is talking about the maritime issues of making sure that we are safe at the seas, but also to combat pollution.
Hon House Chairperson, I need to indicate that the Department of Transport is working with the Deputy Minister of Women and Children in the Presidency to make sure that we deal with challenges of the gender-based violence and femicide and we are sure that the memorandum that we are presenting and working on will be able to look in the transport sector and making sure that we are of the opinion that once that memorandum has been dealt with we should be able to deal with the challenges of gender-based violence in the transport industry. I therefore urge hon members to accept this budget and make sure that we can be able to work towards a better life from South African and building the economy of the Republic. Thank you very much.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very much, Deputy Minister. Hon members, I would like now to invite the Deputy Chairperson of the NCOP, Mama Sylvia, to take over from number 11. Mama Sylvia!
Mr M A P De BRUYN: Chairperson and hon members, to ensure a growing and healthy economy in South Africa, we need a proper transportation system. This is the backbone of any economy and unfortunately, South Africa is failing miserably in this regard.
The state of our roads is disastrous. Transport companies and other businesses are losing millions of rands per year in damages, due to this. However, it is not only economically devastating; it is also a matter of safety. Hundreds of accidents occur weekly, many resulting in a loss of life and this, due to the terrible state of our roads, insufficient law enforcement and general lack of governance from this department.
The damages to our roads caused by the excessive amount of trucks are substantial and in many cases not regulated in terms of overloading, etc. In the Free State, for example, only one weighbridge is operational for the entire province.
Overloaded vehicles cause massive damages and expenses and this can easily be avoided if the necessary procedures are put in place.
Afrikaans:
Die Minister het genoem dat ’n groot deel van die begroting na die spoornetwerk geallokeer word en dit is positief, aangesien ’n funksionerende spoornetwerk die druk op paaie baie sal verlig. Ons moet egter ook die vraag vra: Hoekom nou eers?
Suid-Afrika het ’n werkende spoornetwerk gehad, wat derduisende werksgeleenthede verskaf het en onmeetbare waarde tot die ekonomie bygedra het. Dit is infrastruktuur wat reeds bestaan het en net instand gehou moes word, wat die regering nou weer miljarde rande kos om standaard te kry. Dit is fondse wat aangewend kon word op baie ander noodsaaklikhede soos infrastruktuur en die heropening van talle lesensiekantore wat na die grendeltydperk van 2020 steeds gesluit is of wanfunksionerend is.
Die verval van infrastruktuur, die gehalte van dienslewerings by lesensiekantore, bedrog deur verkeersbeamptes en verkeerskantore en oneffektiewe administrasie is alles sake
wat geprioritiseer moet word, sodat daar aan die basiese behoeftes van vervoer voldoen kan word.
Die R545 miljoen, wat die nuwe Aarto-wet die land kos kon die departement veeleerder aan hierdie basiese beginsels, prosedures en infrastruktuur spandeer het. Aarto gaan nie daartoe lei dat slaggate in die paaie skielik verdwyn nie of dat nuwe infrastruktuur in terme van publieke vervoer of spoornetwerke gebou kan word nie. Dit gaan ook nie prosedures wat bedrog en korrupsie uitroei verseker nie. Inteendeel gaan Aarto die administratiewe las wat reeds buite beheer is vererger en dit gaan na meer chaos en onkostes lei, wat weereens aangewend kon word vir die basiese benodighede van vervoer.
Ek beklemtoon weereens, vervoer is die ruggraat van ons ekonomie en Suid-Afrika wat reeds in ekonomiese verval is, kan nie bekostig om geld op onnodighede soos Aarto te mors nie, pleks daarvan om eerder fondse beskikbaar te stel vir die opgradering van paaie, spoorweë en publieke vervoer.
Die taxi-bedryf in Suid-Afrika is die enigste vorm van publieke vervoer in die meeste dele van die land, wat erkenbaar ’n noodsaaklikheid is, maar die taxi-bedryf kos die
regering ook miljarde. Hoekom nie eerder ook in ander vorme van publieke vervoer belê, wat ’n inkomste vir dieland kan genereer nie?
Metrobusse en passasierstreine kan miljoene rande genereer en die las ook baie verminder, maar die regering sloer met hierdie tipe projekte, omdat hy gyselaar gehou word deur die taxi-bestuurdersverenging, wat eerder sal afbrand as hy nie sy sin kry, as om die probleem op te los, ten bate van die land nie.
English:
It is obvious that the priorities of this department are not in line with the reality or logic. Instead of prioritising safer roads, better logistics and public transport, they rather focus on unnecessary expenditures like Aarto or campaigns on road safety, instead of providing safer roads.
Once again, no amount of money or any budget policy can safe this department, as long as the ANC governs in the irresponsible manner we have had to become accustomed with over last 26 years. Thank you.
Ms H S BOSHOFF: Hon Deputy Chairperson, hon Minister, Warren Baffett: This era’s most successful investor pointed out that in times of a flood, there are no prizes for predicting rain, but prizes go to those who build arks. Why would that be, hon Minister? Arks recue people and enable citizens to move forward. This is what we must we must focus on, moving people forward.
Minister, under great leadership, a budget will tell you where your money must go and not wonder where it has gone. We see in provinces, Western Cape, excluded, where huge allocations are made for projects, but we hardly ever see the final product.
The mandate of your department is to inter alia identify the legislative responsibilities of the different spheres of government with regard to all modes of transport and associated infrastructure. Unfortunately, today, we have heard you devote time to complain about the difficult economic times the we are experiencing and even more so, the challenges that were and still are being faced by the impact of covid-19.
We should move away from focussing in these difficult circumstances, as they are beyond our control. What we need to see is how this government responds to these challenges. The
time is now for government to show the citizenry that, under these trying times, they are cool-headed and are making responsible and consultative remarks, which are based on facts.
One aspect that you and your department must focus on during this Medium-Term Expenditure Framework period is to ensure that your departmental plans give effect to the policies that focus on maintaining the national and provincial road networks. If one looks at the budget, a substantial share of the expenditure is directed to rail infrastructure, maintenance, operations and inventories. And the balance will be reserved for the South African National Roads Agency for upgrading and maintenance of national road networks, provinces and municipalities. For the construction, operations, maintenance of transport infrastructure and services, an allocation of R104,3 billion has been set aside for the road transport programme and I truly hope that this will be done.
A matter of grave concern is the infamous Moloto road project on the R573. As you are aware, Minister, government has been tarting for many years, how and when it will be completed and yet, your targets were not met. In a NCOP question session on Wednesday, 11 May, you gave assurance to the House that all is
in place with regard to this road and that all projects will be completed in the year 2024. Minister, today, I heard you mentioned that R2,7 billion has been put aside and I truly hope that you will, this time around, stick to your guns and ensure that this budget is spent on this project, to ensure that no more blood is spilt due to government’s failures to stick to timelines.
Looking at provincial and municipal roads throughout provinces via the Western Cape, lives are put at risk, as the majority of these roads are in a terrible state of disrepair. I see that an amount of R37,5 billion has been budgeted for the provincial roads maintenance grants and I truly hope that your department will request provinces to provide their business plans with timelines and expenditures on the maintenance of roads under their jurisdiction. Furthermore, proof must be provided once a project is complete. The same must go for municipalities.
Minister, the time for talk is over. This country and its citizens need to see concrete evidence that their hard-earned tax monies are utilised appropriately and that the road network is fixed and maintained, to ensure that no more lives
are lost due to the pothole-invested roads on which they must drive on a daily basis.
We can no longer allow for the mismanagement of our country’s finances and I therefore urge you to tighten the range on this budget, to ensure that what is meant for the people goes to the people. I thank you.
The CHAIRPERSON OF THE NCOP: Thank you very much, hon Boshoff. Hon Ngwezi, are you back yet? I will call again, hon Ngwezi.
If hon Ngwezi is not there, can we now then request can we now then request Londt to continue with the debate.
Mr J J LONDT: You can request it, hon Deputy Chairperson, and I am ready to go if I may.
The DEPUTY CHAIRPERSON OF THE NCOP: Please, continue.
Mr J J LONDT: Thank you. Hon Minister, hon members, there is not a single person who looks at the history of South Africa, the special now of our cities that can honestly say it was a just society. For this reason, wherever party is in a position to address this, it should be an absolute priority. Erol Ozan says “You can’t understand a city without using its public
transportation system.” In South Africa this is especially true giving people a view one of our history but also about present.
Where there is unwillingness in the present to address this special development legacy left by the past and this is jeer with Prasa and the inefficiency is lay bare.
The Passenger Rail Agency of South Africa, Prasa, has been one the more incompetent public entities which says a lot about it in South African context of failed entity. However, it is maybe a part from Eskom, one of the entities that has a direct impact on the lives of millions. It impacts the workers who trust the rail network but in their hearts they know that other plans must be made to arrive on time to provide for the families. It impacts the families where hours upon hours are lost to commute on untrustworthy trains instead of spending it with loved ones or using that extra time to create a better life.
To co-directly from Prasa website, Prasa as implementing arm of the National Department of Transport is the sole shareholder. This means as the sole shareholder your department, Minister, should be the sole responsibility for
negatively impacting millions upon millions of lives across the country.
We often look at world class is across the world as bench marks for excellency governance including how we run efficient rail networks. But there is no need to do that. We do have ackers of excellence in various fields across the country.
The only thing that is difficult to acknowledge by colleague from the ANC is that very few to none of this pockets of excellent away your hands on it, in fact the opposite is true.
Once functioning entities municipalities is now failing because you only look to benefit a connected few insiders. You try to loot as much as possible before moving on to the next opportunity. It is time to stop this monopoly of being competent also known as the ANC.
Now speaking of competence, hon Ntsube, every time you apologised to the House Chairperson for not being able to read the speech written for you. I feel that apology is actually misdirected. It should rather go to all your teachers who tried so hard all in vain.
What I do however I agree with you is that the current national government failed our rail commuters and it is important to better involved provinces and local government
...
Mr M K MMOIEMANG: On a point of order, Chair.
Mr J J LONDT: ... [Inaudible.] ...
The CHAIRPERSON OF THE NCOP: Point of order. Hon member just listen to the point of order, please.
Mr M K MMOIEMANG: Hon Londt you attack a member in ... [Interjections.]
The DEPUTY CHAIRPERSON OF THE NCOP: Hon Mmoiemang, the point of order is sustained. Londt you can say whatever you want to say you can say it to the officer. You may continue. I don’t want unnecessary point of order. Members know what they must do. They are just doing it deliberately. So, continue please.
Mr J J LONDT: Thank you. So, if we have need for example, of how positive more decentralise approach to government will be for South Africa, the Western Cape is the prime example of one
way a province set up during a once in a lifetime pandemic few hospitals were delivered within record time proper and clear communications take place. Municipalities step up and in general across all sectors where the DA governs there is a better level of services.
It is time we support well-run government in obtaining more powers away from national to deliver those services.
Why is then colleagues that the ANC’s hell-bent on rabing the graving pause on everything? Is it not because they are better equipped to make things work, in fact the opposite it is true. It is because the interest of residents is not important to the ANC
Just after me, you will hear hon Landsman singing the praises of the Minister and the ANC. This is rich coming from someone in the North West where services all have but collapsed yet he sings for his suffers not for the voters. Hon Minister, if you were as creative to find the solutions as you were in finding nicknames, maybe we have hope at last, you care not, maybe that’s why you are pushing not to have an election since you know voters will punish you. So, you hide from them. It is my sincere pleasure. I thank you.
Mr E R LANDSMAN: Good day. Thank you, hon Chairperson.
The DEPUTY CHAIRPERSON OF THE NCOP: You are, Landsman?
Mr E R LANDSMAN: Yes! Thank you, hon Deputy Chair. Am I audible?
The DEPUTY CHAIRPERSON OF THE NCOP: You are audible but why do you have extra pair of ears?
Mr E R LANDSMAN: I think is sabotage. Is a national sabotage. [Laughers.]. Transport is the ... [Interjections.]. Order! Hon Minister, thank you. Yes, hon Londt you are right I had to thank to the hon Minister who who is doing an excellent good in servicing our people in making sure that budget is shared amongst all his people and not just a selected few. That’s why you can see the different between Cape Town and all other cities where there are huge inequalities between the rich and the poor which is abnormal. You have two cities within one small city. So, that’s what we have noticed. We are here to share and make sure people can be part and parcel and you cannot speak of losing vote, you are the one who lose left, right and centre. We are increasing because the Minister is also in the help as head of the elections. Stop focusing on
us. Look to yourself. Thank you. That’s what each like vote
offer any function of modern economy ...
The CHAIRPERSON OF THE NCOP: Landsman, I will not call you to order but please remember there is rules in this House.
Continue.
Mr E R LANDSMAN: Thank you. Account for such high develop infrastructure which requires the development to ensure that inclusive economic growth and develop. Transport infrastructure is the key to ensuring economical and effectively operate. The transport sector as a whole has been negatively affected by the Covid-19 pandemic and they have been unable to optimal function in easing the disaster management regulations that witness the recovery of transport initially with roads, rail and lastly civil aviation.
However, the transport sector has played a steering role in ensuring that Disaster Management Act: Regulations at all levels, food and medicine were delivered throughout the country. This was certainly part of the final through request against the pandemic and must be commended.
Road networks - road networks connect cities and town and rural areas to each other and to each other provinces to municipalities. The national provincial municipal roads are the responsibility of different spheres of government and development and road networks is still occurring by the different spheres of government.
Let’s be sure that the different spheres of government develop the single integrated road network not at the same level as consistency and efficiency
The road transport ensures that movement of fright, goods services and and people iterate the ability for people to eat clothe themselves and a sustainable livelihood so that all can share not a selected few like in the Western Cape.
The difference sector of the economic functions precisely due to its road network and modern transport vehicles. A road public in all parts of the countries sustainable daily life road network is strategic that inclusive economic roads and development in this country need to future develop of arts and culture to ensure domestic food security to facilitate export of agriculture products to enquire development of road and rail networking in rural areas.
Our country is far too dependent on the road transportation as amount of transport for the movement of fright and its people due to challenges space by the rail.
Road fright – the bulk of countries fright and transported by heavy duties trucks, that is estimated at 72% that acquire as a result of the fact that road transport is more profitable than a rail for the transportation of rail. This occurs as a result of regulated margin for rail and rectory allows companies to rely on other services are able to make sure profit to road transportation margins are too high.
Transnet rail needs to access his business model and rather than a rail on a regulated market for far comfortable stability that they should rely on greater volumes.
Cars and minerals are being transported from Northern Cape road by Richard Bay rather than a rail. The way the entry was build, it was estimated that it will take seven years’ refurbishment but now it has a refurbishment after three years. So, as a result of fuel and chemicals rail transport long distance by road rather than by pipes and railway as the low transport is profitable.
The ANC government policy is to move transport of fright goods from road to rail to reduce damage to our roads and its negative caused to accidents. This will positively impact on the budget for road maintenance and refurbishment as well as the development of new road infrastructure.
This is important as it entails agricultural mining in the provinces. The road infrastructure is critical in this areas which support the provincial economy into creating job opportunities.
However, this successful implementations of policy movement from fright comparatively to low transport and rail has to operate more efficiently. Regulatory margin should not over the reward pipeline and rail terrors as this is the basis of a rail transportation profitability compared to the rail and pipeline. Pipeline and rail economics off scale and therefore should be more efficient and cost effective than a road transport.
High regulatory margins and tariffs contrary creation and economic increase in cost in doing business in the country. This will not encourage investment and therefore regulatory market margins and business model is key to movement of goods
from rail to a road. Regulatory margin must as ready as access for the policy to succeed.
Continue doing a good work, hon Minister. As part of economic and the Deputy Minister, as part of our economically reconstruction and recovery plan infrastructure development is critical, which include rail and ports.
The State of the nation address, Sona, 2020-21 has already announced measure road project in a refurbish of the N1, 2 and
3 while these roads are national rods. These roads pass to all provinces and will to hit a large number of jobs in various areas.
The development by the department to upgrade 573 Moloto Road in order to improve access to economic opportunities and social space to address road safety challenge ensuring that its anticipated that upgrade of the Moloto Road will create approximately plus minus 10 000 jobs opportunities and by doing that we will be making sure that we push back the frontier of poverty and make sure we address the triple challenges which is poverty, inequality and unemployment.
In conclusion, there are a number of challenges which which the department need to urgently address. This is the solution of the problems which have been created by the Road Accident Fund and its liability. A solution must be found to this and in turn department must ensure better co-operation governance and financial controls at the Road Accident Fund. Law enforcement on the roads to reduce fatalities. The 24 hours that you were talking about, Minister, will help us a lot in pushing, it is critical. Words scriptures must be functional in all provinces to ensure work compliance
The department may study progress for funds under a challenging conditions of that pandemic. The sub optional functioning has not tested in the achieving degree of progress
The current plans and programmes of the department will bring reduce focus of progress and implementation will occur.
Continue a good work, Minister. The ANC support this policy Vote. Thank you, enjoy your day. Thank you, Deputy Chair.
The MINISTER OF TRANSPORT: Thank you, hon members, first I need clarify that, there is no such a thing as, the department is full of deployed cadres. All the employees of the department are employed in line the with the provision of the
Public Service Act. These officials are appointed based on their skills and qualifications.
Now, for anyone to come here and distort the fact that we don’t want elections to take place, it means you are not following the right news. I don’t know which news you are following, but we have never been opposed to election taking place, we are in favour of that and that should be very clear to hon member.
On the dysfunctionality of the Passenger Rail Agency of South Africa, PRASA, it is very disingenuous of the DA to only focus on PRASA. In our portfolio we have many other well run and functional entities, including Airports Company South Africa, ACSA, South African National Roads Agency Limited, SANRAL, Safety Assessment of Community Aircraft, SACA, the Road Traffic Management Corporation, RTMC, the Port Regulator and many others. We are working to get PRASA back on track and we are succeeding.
I accept responsibility hon member, for all roads, this include national road, provincial roads and so on. All I am raising is that you need to understand that; the Department of
Transport has a concurrent function. So, it doesn’t mean we don’t take responsibility.
In the next coming weeks, we are going to launch a massive programme, dealing with potholes and road maintenance, particularly at the regional level. It is not correct that, entirely, our road infrastructure is in the country is in a mess, it’s not correct, it’s over exaggeration. Indeed, there are roads where there’s no maintenance, particularly regional roads. But, national roads are well maintained by SANRAL.
At the beginning of this week, we launched the Stations Recovery Plans, you will know that, there’s massive vandalism that has taken place and we are employing different means to accelerate this programme, particularly by PRASA.
Western Cape Province Member of Executive Council, MEC, welcome, I will not say much because I must respect the fact that this was your maiden speech. The central ... we worked very well with your predecessor on recovering the line, but I see the DA most of the time, you like going there taking pictures and looking at yourselves and so on there, but I am working very well with your provincial government and as well as local government, to move those people there, in the
central line. Work is going on and we will recover this line according to our estimates by March next year. That line, will entirely be opened to the public. So, MEC welcome and I am looking forward to working with you in the province.
The Department of Transport like I said is an important department and central to the economic development of the country. We however welcome the reminder by provinces on the issue of the etolls, as I conclude, we are dealing with matter and we will make announcement soon, as in, when Cabinet agrees on the issue. I am saying soon without putting time frames and we will come back to you on this particular matter. I agree with Gauteng and everybody else concerned, that we need to move with speed to bring this matter to finality. I thank you.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lukas): Thank you
very much, hon Minister. Hon delegates, before we conclude the business of the House today. I would want to allow me to recognise, one of the long serving staff members, of the NCOP, Mr Brent Leeuwendal. Mr Leeuwendal, if he can open his video so that we see him, has announced his early retirement from NCOP, with effect from 01 June 2021, after 35 years of service in Parliament.
Mr Leeuwendal started his career in Parliament on 27 January 1986 as a service officer. He diligently served Parliament and Senate and thereafter in the NCOP as a chamber and administrative assistant.
Mr Leeuwendal, if you will allow me, on behalf of the NCOP, particularly since you have spent almost more than half of your whole life time in service of Parliament to express our sincere gratitude to you for your dedication to your work and the excellent support you have provided to us and the delegates for the duration of your employment. I must say, in short space of time that have joined the NCOP, I have been impressed by how you are carrying yourself, humble and extremely helpful. And we appreciate it more than you will ever understand or appreciate.
We thus, want to wish you well on your retirement and all your future endeavours. I hope the Secretary to the ... [Inaudible.] ... will give you a pen of Parliament and a book and even a calendar to remind you of the many years that you have been with us. God ... [Inaudible.] ... on your future endeavours; we must say that we don’t have anything else than words to show our sincere appreciation for the role that you have played to make sure that the wheels of the NCOP are well
oiled. Thank you very much, Mr Leeuwendal [Applause.] And members can we just give him an applause.
Mr S J MOHAI: Thank you, Deputy Chair on our behalf, great Mr Leeuwendal, great service.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lukas): Thank you
very much, hon Mohai, hon Labuschagne you wanted to say...
Ms C LABSCHAGNE: Thank you very much Deputy Chairperson, I also want to make use of this opportunity to say thank you to Leeuwendal for his professionalty, his friendliness, his excellent support to not only to the NCOP but each member, and we just wish him well to all his endeavours and I hope he will use this time to spend with his family and loved ones. Thank you very much, we appreciate it.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lukas): Chief Whip,
you want to say something?
The CHIEF WHIP OF THE NCOP: Of course, thanks Deputy Chairperson and I want to ... [Interjection.]
The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lukas): Before
Chief Whip can we allow the EFF to say something, hon Arnolds or Mathevula?
Mr A ARNOLDS: Yes, Deputy Chairperson, thank you very much for the opportunity. And we would like to say all of the best and we can agree that the service was excellent, 35 years of excellent service. We pray Lord’s blessings over his life and over his family and that he will continue to prosper and to serve in whatever capacity he will serve. Thank you.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lukas): Thank you,
hon Arnold, we will now give to the Chief Whip.
The CHIEF WHIP OF THE NCOP: Thank you very, Deputy Chairperson and we would like to say congratulations to Mr Leeuwendal for a great service just spent over a period of decades in Parliament. Always humble servant, always ready to assist, always wearing a great smile, and even whether you are a new member, makes you feel so much welcomed and knowing Parliament through all its corners. I have never come across such a friendly human being. Keep it up Mr Leeuwendal and I believe that your family really and the rest of the nation, deserve to have South Africans, so humble, yet in their own way making
such a profound contribution to society. Well done, all the best to your new endeavours. Thank you.
The DEPUTY CHAIRPERSON OF THE NCOP (Ms S E Lukas): And the
current circumstance, Mr Leeuwendal, we want to thank God that life is taking you away from us and not death particularly in the pandemic that is currently prevailing. So enjoy your retirement and enjoy your children and grandchildren, we more with our colleagues more than we are with our families. And I think the families will enjoy the fact that you will now be with them. Hon delegates that concludes the business of the day. Let me express my sincere appreciation and thanks to the Ministers, to their Deputies, to all special delegates South African Local Government Association, SALGA representatives, as well as members of the House for availing themselves for this debate. The House then is adjourned. Thank you very much.
The Council adjourned at 18:15.
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