Hansard: NA: Mini-plenary 4
House: National Assembly
Date of Meeting: 18 May 2022
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Minutes
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MINI PLENARY - NATIONAL ASSEMBLY
WEDNESDAY, 18 MAY 2022
VOTE NO 30 – COMMUNICATIONS AND DIGITAL TECHNOLOGIES
Watch: Mini-plenary
PROCEEDINGS OF THE MINI-PLENARY SESSION – NATIONAL ASSEMBLY CHAMBER
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of order or interjections. We shall now proceed to the Order, which is a debate on Vote No 30: Communications, and Digital Technologies Appropriation Bill. I will now recognise the Minister of Communications, and Digital Technologies.
APPROPRIATION BILL
Debate on Vote No 30 – Communications and Digital Technologies:
The MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES: Hon House Chairperson, hon Deputy Minister of Communications and Digital Technologies, Mr Philly Mapulane, chairperson of the Portfolio Committee on Communications, Mr Boyce Maneli and hon members, members of the portfolio committee, hon Members of Parliament, the Acting Director-General of the Department of Communications and Digital Technologies, deputy directors-general, and other officials of the department, leadership and management of the state-owned entities within the portfolio of Communications and Digital Technologies, and leadership of the information and communications technology, ICT, sector in our country, ladies and gentlemen, good afternoon. This 2022-23 Budget Vote takes place a day after the World Telecommunication and Information Society Day, WTISD. The World Telecommunication Day has been celebrated annually every 17th May since 1969, to mark the founding of International Telecommunications Union, ITU, and the signing of the first International Telegraph Convention in 1865. The main objective of the day was to raise global awareness of social changes brought about by the internet and new technologies and the reduction of the digital divide. In addition, Agenda 2030 for Sustainable Development acknowledges that the spread of information and communication technology and global interconnectivity has great potential to accelerate human development and bridging the digital divide to an end.
As a country, we aspire to have all South Africans to be connected through cost effective solutions that are also enablers of other sectors and business growth. We live in an era that demands that we create efficient and reliable telecommunications capacity to enable human to human, human- machine and machine-machine communications capacity. This Budget Vote outlines the work the Department of Communications and Digital Technologies and its entities will undertake to bridge the digital divide and build an inclusive digital economy. The total Budget for the department – Budget Vote 30 is R2,7 billion. Eleven percent or R302 million of the Budget is compensation of employees; 16% of that is for goods and services, which is R440 million; 72% of the budget is transfers and subsidies. With regard to transfers to entities, Independent Communications Authority of SA, Icasa, receives a transfer of just over R760 million; the Films and Publication Board receives over R102 million; the National Electronics Media Institute of SA receives R102 million; Universal Service and Access Agency of SA receives R86 million; and Universal Service; Access Fund receives R66 million; the SA Broadcasting Corporation, SABC, for the Channel Africa receives R66 million; the public broadcaster receives R133 million; and the SABC Programme Productions receives R15 million; the SA Post Office will receive R519 million. There is no provision for Sentech for both the migration of digital signals and dual illumination costs relating to the entire digital migration programme. With regard to goods and services budget for the infrastructure projects, we have allocated SA Connect R239,08 million, for Broadcast Digital Migration that we are completing, we have allocated R88,7 million. The remainder of the goods and services budget becomes R111 million. Phase Two of the SA Connect will be funded through the Infrastructure Fund for the first year of this year and the allocations for
the next outer years will be provided for from the national fiscus through the National Treasury.
With regard to the Broadcast Digital Migration, the budget does not make transfer provisions to Sentech for the migration of digital signals and dual illumination costs relating to the digital migration because we have achieved 100% digital network coverage and satisfied all Broadcast Digital Migration
policy conditions and regulatory requirements that warrant the end of dual illumination period. The Broadcast Digital Migration process is a critical digital transformations step that redefines the ICT path for South Africa. We are happy to update that we are working towards concluding the analogue switch-off by the 30th of June 2022, and this is after the Gauteng High Court ruled in support of the conclusion of the programme but extended time for the Minister to complete the installation of set-top boxes for qualifying households who applied for government support by the 31st `October 2021. In addition to the 100% digital
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network coverage in South Africa, the BDM programme has also
achieved the following critical milestones: Firstly, we have
switched off 100% or 84% of analogue sites of M-Net, 52% or
163 sites out of the 314 of the SABC, and 9% or 8 sites of
e.tv out of 93; secondly, we have concluded analogue switch-
off in five provinces being Free State, Northern Cape, North
West, Mpumalanga and Limpopo; thirdly, in the five provinces
where analogue has been switched-off, we have concluded
rearranging spectrum or restacking thereby giving way for the
spectrum to be assigned for future technologies and by Icasa
to the mobile operators as from 1st July 2022, in line with
the outcomes of the recent spectrum auction; fourthly, set-top
boxes installations are currently underway in all nine
provinces. By end of May, we aim to complete the installations
of set-top boxes in additional three provinces for the 507 251
targeted households being installed by end of June, as we have
already completed installations of the set-top boxes in the
provinces of Gauteng and Northern Cape; fifthly, we have also
commenced with the installations of set-top boxes that were
targeted to be completed by end of September in Gauteng and we
are planning to complete the installations of the September
2022 targeted 260 000 set-top boxes way before the end of
September; and lastly, to compliment the work of my colleague,
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the Minister of Trade, Industry and Competition on the
directives to prohibit the importation and distribution of
analogue TV sets in South Africa, we will gazette a framework
for Integrated Digital Television sets, IDTVs, and set-top
boxes to qualify to carry the GoDigital logo in a quest to
protect South Africans to identify correct digital TVs in the
retail market.
The Analogue Switch-Off Programme is supporting more than 987
installer companies and has created more than 14 800 jobs for
locals, predominantly young installers.
On the spectrum auction, the completion of analogue switch-off
by 30 June 2022 is of national importance because the
communications regulator, Icasa, has successfully completed
the auction for the high demand spectrum and committed to the
licensees that they will have access to the relevant spectrum
from 1 July 2022. Icasa concluded the high frequency
communication spectrum auction in March 2022 as per the target
set by President Ramaphosa in his 2022 state of the nation
address. I congratulate Icasa on reaching this significant
milestone in our country.
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The 1st of July 2022 date for the availability of the high
demand spectrum to the licensees is also important for the
National Treasury or national fiscus to have access to the
much-needed R14,4 billion that was raised during the spectrum
auction.
The release of the high demand spectrum will improve the
ability of mobile telecommunications operators to build robust
telecommunications with better penetration and reach as we
chase our goal of ensuring that all South Africans have access
to the internet by 2024. To this end, the mobile
telecommunications operators are starting to upgrade the
telecommunications networks and to build robust 5G
telecommunication networks. In the immediate, through Icasa,
we have installed social obligations that will see the
telecommunications operators connecting 18 520 schools, 5 731
clinics and hospitals, 8 241 traditional authority offices,
949 libraries and Thusong Service Centres over the next 36
months. The department working with Icasa will monitor the
progress on the connection of these sites.
Furthermore, the availability of spectrum must also result in
the reduction of the cost of communication. We will
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progressively work on policy instruments to drive the
reduction of cost to communicate in South Africa including the
classification of data as a new basic utility at the same
level as water and electricity. The importance of data is
because it has become the enabler of innovation and wealth
creation for any country. In this regard, we will publish for
public comment a revised spectrum policy no later than July
2022. The draft policy will include proposals of spectrum for
Small, Medium and Micro Enterprises, SMMEs, and network and
data services in a manner that drives meaningful SMME
participation in the telecommunications sector, amongst
others. In the meantime, Icasa is undertaking a market study
on the call termination review. The outcome of this market
study will have a determining factor in the reduction of the
average data prices.
On SA Connect, to reach the end goal of a truly digital South
Africa with full digital inclusion of all its people, emphasis
must be placed on the digital government, digital economy,
digital industry and data sovereignty. The most fundamental
requirement for a digital South Africa is access to
connectivity or broadband networks by all, irrespective of
geographic location and economic standing. To ensure access to
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broadband connectivity by all, Cabinet approved revised model
and implementation plan for the SA Connect Phase 2 programme
that will ensure South Africa achieves a goal of universal
access to internet by all 2024.
In terms of the revised SA Connect model, Sentech and
Broadband InfraCo, BBI, working with the SMMEs that are Access
Network Service Providers, Internet Service Providers and
Mobile Virtual Network Operators will roll out 33 539
community Wi-Fi hotspots to cater for 5 830 208 households
over a 3-year period. The partnership with SMMEs in the
telecommunications sector is part of government’s commitment
to the transformation of the telecommunications industry by
supporting emerging telecommunications players. The SA Connect
drive will expand from the core network owned BBI, other
state-owned entities and telecommunications infrastructure
operators as well as the satellite service of Sentech in line
with our open access network policy.
The SA Connect project is estimated to provide opportunities
to approximately 120 SMMEs for core network build, and create
employment opportunities of more than 3 700 people, both
skilled professionals and semiskilled labour force. The
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implementation has commenced in the Eastern Cape and Northern
Cape with work to connect 412 sites in both provinces. The
National Treasury is in the process of finalizing mechanisms
for availing additional funds to roll out to the other
provinces in the 2022-23 financial year, as provisions have
already been made for the outer years.
Similarly, State Information Technology Agency, Sita, in line
with its legislated mandate will provide and maintain
connectivity to 15 691 government sites over the next 3 years,
with 4 706 targeted for the current financial year. The
funding for connecting government sites is provided for in the
ICT budgets of respective government departments including
provincial governments.
To enhance our broadband connectivity reach and in line with
the 2016 Cabinet decision, South Africa is now ready to launch
its our own communications satellite through Sentech in
partnership with the National Space Agency and all other key
stakeholders. The communications satellite will address both
media and broadband connectivity objectives and will entrench
our technology and data sovereignty. This will reduce
satellite capacity leasing costs, not only for government but
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other industries reliant on communication satellite technology
for their businesses and improve information security for our
country.
Digitization of broadcasting - the completion of the broadcast
digital migration further gives us an opportunity to trigger
growth of the broadcasting and entertainment sector, commonly
known as the creatives industry through the licensing of new
broadcasters and creating platforms of the future to deliver
content to South Africans.
In this regard, Sentech is developing a Cloud-based Hybrid
Streaming Platform for content distribution which will be
available by no later than the 3rd quarter of this financial
year. This platform will support distribution of content
through broadband, satellite, and terrestrial distribution
networks. The platform will enable access to commercial,
community and public broadcasting services to both radio and
TV channels and has the capability to provide information to
the public as and when required. Access to the platform will
also support mobile applications for both iOS, Android and
Harmony devices. Furthermore, the Deputy Minister will
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announce a programme by National Electronic Media Institute of
South Africa, Nemisa, to support emerging content producers.
During the Sona debate earlier this year, I announced that we
are going to issue policy directives for the availability of
additional multiplexes for both DTT and DTH in order to avail
additional TV channels, and with the capacity for 102 TV
channels by 2025, to boost the growth of the creatives
industry. Engagements with the SABC are underway about
additional channels it requires to support its competitiveness
and profitability, and with community broadcasters and other
emerging and new broadcasters to utilise available and
additional channels.
Given the current onerous and burdensome requirements on local
broadcasters, new entrants, in particular local in the
broadcasting sector and restrictions on the community media
that renders local broadcasting players uncompetitive, the
department will finalise the Draft Audio and Audio-Visual
Content Services Policy and Bill to protect the
competitiveness and growth of the South African broadcasting
and creative industry and amending the requirements for entry
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to advance media diversity whilst enabling the participation
of South Africans.
In addition, technological convergence has created regulatory
overlaps and duplications where they did not exist before. To
deal with this fragmentation a single content regulatory
system that is tech and platform neutral, that includes a
single content rating system is needed to create a harmonised
system. The Films and Publication Amendment Act, Act 11 of
2019, which the President operationalized on 1 March 2022, has
significantly extended the scope of the Films and Publication
Board, FPB, towards this objective and we will work to align
the responsibilities of the codes of conduct governing content
matters between Icasa and the FPB to support the provisions of
the Films and Publications Amendment Act. This alignment is
necessary to address the concerns from traditional
broadcasting and audio-visual services licensees regarding the
how the big tech companies are impacting on their revenues
without contributing much to the development of the industry
and local economy owing to the lack of regulatory parity.
Content creators, including news are concerned about the usage
of their content by the big techs without payment or without
any regulatory intervention.
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As we table this Budget Vote, we remain concerned about the
focus of the SABC on taking advantage of the technological
advances and thus driving its competitiveness and
sustainability. Basically, the SABC remains stuck in the past
in an era where technological advances have changed how
viewers consume their media content and the predominately
youthful population demand compelling and informative content.
The traditional television box is the past as viewers consume
content on the go, and viewers want to watch and hear
themselves or their peers or content that is value adding to
their development. We have given the board and management of
the SABC until 30 June 2022 to submit a plan on how the public
broadcaster is going to commercialise and monetize the
opportunities availed through the broadcast digital migration.
The SABC has also been directed on the prioritisation and
promotion of local content in its programme acquisition.
On our part we continue to advance policy and Ministerial
interventions that support the competitiveness and
sustainability of the SABC. To this end and through the
Minister of Finance, we secured a PFMA exemption for the SABC
and we continue to work with the Minister of Finance on the TV
license fee waiver. The regulator - ICASA - has published the
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Must-Carry Regulations for the broadcasters that utilise the
SABC content to have viable commercial agreements with the
SABC.
We are also finalizing the draft SA Broadcasting Corporation
SOC Ltd Bill for Cabinet approval before submission to
Parliament. The draft Bill positions the SABC as a multimedia
organization capable of offering services across all
platforms. The Bill proposes provisions that will improve the
governance of the SABC to make it commercially competitive
whilst protecting its role as a national broadcaster. A weak
SABC is not beneficial for the South African broadcasting and
creatives industry. The SABC will rise again to be a
broadcasting giant in our country and region.
By digitizing processes, government can enhance services, save
money, and improve citizens’ quality of life. By digitizing,
governments can provide services that meet the evolving
expectations of citizens and businesses, even in a period of
tight budgets. Digitizing a government requires attention to
two major considerations: the core capabilities for engaging
citizens and businesses, and the organizational enablers that
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support those capabilities. This prescribes to us to stop
boiling the ocean.
The Sita in consultation with the Departments of Public
Service and Administration and Communications & Digital
Technologies, will finalise a Government Digitization Plan. We
have, through the Sita commenced with some of the programmes
to digitize the South African government. These include single
view of the indigent project. This system is built on the
database created by the Sita to enable SA Post Office to
receive applications for government set-top boxes or the STB
registration system for the BDM project. The system has now
been expanded for use to manage housing subsidy beneficiaries
by the Department of Human Settlement with back-end
integration to the Housing Subsidy System. The Department of
Human Settlement will immediately use this system in the
management of housing beneficiaries of the KwaZulu-Natal and
Eastern Cape flood disaster. Engagements are similarly
underway with the Department of Health and Basic Education to
expand the system to their environments.
To support this programme, the department will recruit
approximately 2 500 unemployed graduates from the 44 districts
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and eight metros as data capturers to convert the current
paper records into the system.
To expand the work of bridging the digital divide through
digitizing South Africa, .za Domain Name Authority, .zaDNA, is
partnering with the Department of Basic Education to deploy
domain names in public schools through the provision of
websites and email addresses to learners and educators. The
Deputy Minister will expand on this catalytic project as the
department supports the Department of Basic Education in their
path towards e-learning for all.
On paperless government - the COVID-19 pandemic has propelled
to move electronic communications, even the national Cabinet
has experienced an increase of Ministers and Deputy Ministers
using an electronic Cabinet record system, commonly known as
e-Cabinet. Within the existing technologies and framework
agreements, the department will work with the Sita and the
DPSA to ensure that, at a minimum, all national departments go
paperless by using electronic workflow by the end of current
financial year. This will improve the efficiency of government
and maintain the integrity of government records that are a
challenge for the audit processes.
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The department and the Sita in consultation with the DPSA and
The Presidency will revise the current implementation of the
National e-Government Strategy to align with the government
digitisation plan. The focus of the roll-out of e-services
will remain on prioritising high impact public services that
meet the evolving expectations of citizens and businesses.
Citizens must be able to access bulk of government services
without the need to travel or braving the long queues.
Yesterday, as part of the World Telecommunications and
Information Society Day celebrations, I unveiled the DigiTech
platform which a platform for digital products or applications
... [Time expired.] ... [Inaudible.] ... in South Africa.
DigiTech serves as a digital distribution service developed,
maintained, and operated by the South African government. The
platform allows users to browse and download apps developed
across operating systems. It promotes South African developed
digital products or apps for purposes of expand their adoption
and use.
We are currently exploring how the current Sita and supply
chain management regulations can be ...
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Mr B M MANELI: Hon members, Department of Communications and
Digital Technologies, DCDT, team, Deputy Minister, all other
Ministers, all other Deputy Ministers and fellow South
Africans, let me from the outset make it clear that I rise on
behalf of the ANC to support Budget Vote 30 Department of
Communications and Digital Technologies, DCDT. This debate
takes place today, a day after the World Telecommunication Day
in a month recognised in the country as Africa Month. Both
these events are taking place whilst we are still grappling
with the COVID-19 pandemic that has ravaged the world and it
is still with us. In this adversity Africa must see an
opportunity to accelerate its efforts in bridging the digital
divide and press ahead with game changing projects like
building smart cities, for example, Konza Technopolis in Kenya
and other smart cities planned in the continent’s such
examples. The deployment of internet connections ballooned
towers in remote areas. Once again Kenya and Vodacom plan to
deploy these in parts of Mozambique and Cabo Delgado comes to
mind. This will go a long way in building a digital economy
that is environmentally friendly in the African continent.
Fellow South Africans, in the context of South Africa it is
important to remind ourselves that the postapartheid regime
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its legacy has been reflected in how the departments have been
restructured making it difficult to address the socioeconomic
conditions faced by South Africans in order to do and ensure
the fulfilment of the mandate of putting our policies that
address the digital divide and afford people access, supply
side issue and infrastructure rollout and demand side to
facilitate inclusivity.
His Excellency President Cyril Ramaphosa in the 2019 and 2020
states of the nation address pronounced the rationalisation of
the state departments as state-owned companies, SOCs. The
Department of Communications and the Department of
Telecommunications and Postal Services were merged to form the
new Department of Communications and Digital Technologies,
DCDT, under one Ministry and one director-general. The mandate
of the Department of Communications and Digital Technologies
is to enable South Africa’s digital transformation to achieve
digital inclusion and economic growth by creating an enabling
policy and regulatory environment. This is done through the
implementation of existing legislation which provides for
participation of multistakeholders for inclusive digital
transformation intervention to reinforce competition and
facilitate innovation across the value chain. Measures to
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address issues by the information and communications
technology, ICT, and convergence and the establishment of the
new postal policy framework.
Hon Chairperson, the ANC’s 54th national conference, amongst
others, resolved the following. On the information and
communications technology, Resolution 2.5, the ANC must ensure
the implementation of the resolutions to support the Post
Office including that government business must avail to the
Post Office through intergovernmental framework to maximise
the use and value of the Post Office infrastructure to achieve
its developmental mandate. The Post Office should continuously
review its business models to cope with the changes arising
from the digital industrial revolution.
In 3.7, there must be a strong regulatory intervention to deal
with the question of high cost to communicate and the ANC must
support the campaign of data to fall and the monopolisation of
data. This is regarded as stifling economic inclusion. In 3.9,
government must review the mandate of the State Information
Technology Agency, Sita, to not only be procurer, but enable
local capacity production of software and hardware products,
unbundle the value chain, etc. The State Information
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Technology Agency should be transformed and repurposed to
provide high quality information technology and services
aligned to the digital age. In 3.11, As part of
rationalisation of SOCs, consideration must be made to
implement the decision to merge the Broadband Infraco, BBI,
and Sentech. This should be underpinned by the overall policy
on SOE reform to improve service delivery and investment in
infrastructure.
On broadcasting, in particular, 4.10, the digital terrestrial
television, DTT, presents an opportunity for the SABC to
introduce multichannel programming to ensure its viability as
a broadcaster of choice and this could ensure that
Parliamentary channel, community TV could be on the SABC’s
platform. SABC must be positioned as a content provider of
choice, protect and be a repository of our cultural identity,
etc.
In giving meaning to these resolutions on record it is
confirmed that the repurposing of Sita as a state ICT company
is beginning to show good results. The merge of BBI and
Sentech is underway to form a state digital infrastructure
company that will ensure the speedy delivery of the broadband
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connectivity and other services in order to be an important
player in the ICT sector especially at a time when Sentech
cannot depend on the SABC as major client.
The Post Office, after many years of mismanagement and misuse
of bail outs by predecessors, has now an agreed turnaround
strategy of the department supported by the committee which
needs the support of the National Treasury to succeed as the
Post Office cannot be allowed to fail given its role.
Fellow South Africans, information from the Statistics SA
reveals that there were 12,5 unemployed people during the
fourth quarter of 2021. The overall unemployment rate was
46,2%, youth was 77%, Africans 50,7% and African women 55,7%.
The Eastern Cape, Limpopo, Mpumalanga were 53,2%, 52,8% and
52,4% respectively. In addition, the Competition Commission’s
recent report titled, and I quote, “Measuring concentration
and participation in the South African economy: levels and
trends”, exposes high levels of concertation and dominance by
a few in the communication space. The example is that three
firms provides 75% of fibre connections with 80% of consumers
connected by the top four ICTs.
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It is against this reality that we must support and
congratulate the Independent Communications Authority of South
Africa, Icasa, on the auctioning of the spectrum and making
spectrum available for the wireless open access network zones
to be released once its model is finalised. We need to be
unapologetic in supporting the broad-based black economic
empowerment, BBBEE, intake in the precaution of programmes by
the Sentech, BBI, Universal Service Access Agency of South
Africa, Usaasa, Universal Service Access Fund, Usaf, and Sita.
All these are a direct response to transform the digital
economy to be inclusive as envisaged by the states of the
nation address and the resolutions of the ANC as already
stated.
Hon House Chairperson, the department has a budget of
R7,7 billion over the Medium-Term Expenditure Framework, MTEF,
of which 72,2% is allocated for transfer to the entities for
their operations and for projects specific funding. The
compensation of employees is a second cost driver and the DCDT
has committed to remain within its ... [Recording stopped] on
this item.
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We remain confident that both the department and its entities
will be able to accelerate delivery irrespective of the
limited resources available. The Independent Communications
Authority of South working together with the Competition
Commission will be implementing the Competition Commission’s
report and its own data marketing enquiry report which is
important in the reduction of the cost to communicate.
We also welcome that the department will be using this Budget
Vote as an opportunity to fast-track legislative reforms some
of which are important for the sustainability of SABC as the
public broadcaster and the SA Post Office as an important
entity with universal service obligations.
Hon members, as I conclude allow me to quote from O R Tambo,
the late president of the ANC, while addressing the 48th
national conference in Durban in 1991, and I quote:
Before I sit down I wish to make a few observations. We
did not tear ourselves apart because of lack of progress
at times. We were always ready to accept our mistakes and
to correct them. Above all we succeeded to force and
defend the unity of the ANC and the unity of our people
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in general. Even in bleak moments we were never in doubt
regarding the winning of freedom. We have never been in
doubt that people’s course against all odds shall
triumph.
After years of setbacks we never have doubts that Icasa will
auction the spectrum, and indeed the spectrum has been
auctioned. The people want an economy that is transformed.
Even with the setbacks that targets are not completely
achieved, we must never doubt that the people’s course shall
triumph and that the economy will indeed be transformed to be
inclusive. The ANC, once again stands to support this Budget
Vote. I thank you.
Ms T BODLANI: House Chairperson, hon members and fellow South
Africans, on 29 March 2022 the Minister addressed the
committee and reassured the committee that the country’s
digital migration connection was on track. The Minister stated
that she had personally overseen the distribution process of
900 000 set top boxes.
That said it would be remiss of us to not see how the ruling
of the Johannesburg High Court on the e-TV and others vs
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Minister of Communications and Digital Technologies and others
as a saving grace for the Minster and her department. The
deferment of the analogue switch-off date from 31 March to 30
June has undeniably given the department a reprieve, as it was
clear that they would have been left embarrassed by missing
their self-imposed deadline on the rollout. We stand in
agreement with the sentiment of the court that it is in the
interest of the country, the economy and South Africans that
the digital migration be finalised.
The DA is mindful that the release of more spectrum by the
Independent Communications Authority of South Africa, ICASA,
means a better quality service for consumers with fewer
dropped calls, faster internet download speeds and the promise
of lower data costs. Sadly, the last time South Africa
released spectrum was 2004-05. Therefore, the DA welcomes the
auctioning of high demand spectrum licensing by ICASA, with
the hope that it will indeed serve as a key pillar for the
state’s economic structural reforms.
The slow pace of releasing the spectrum is a reminder that
more than 28 years into democracy the digital divide remains
and dare I say widens. This is a serious indictment on the
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ruling party and we note the efforts of civil society in
fighting for the poor to have access to digital services.
Sadly, while ICASA and Telkom were embroiled in a legal
battle, and the country left in limbo on the auction process,
very little information came to the committee, and as such, as
members of this committee had to rely on media reports for
updates, as the matter of spectrum auction was never placed on
the recent formal agenda of the committee, while the auction
and its challenges unfolded.
This speaks to the lux lustre processes of this Parliament.
The mandate of portfolio committees as oversight bodies is
clear, however the tendency of dealing with serious matters
retrospectively continues, and this is a threat to our
democracy. The DA calls on this Parliament to strive to deal
with matters in real time, if we are to improve anything in
South Africa.
The total capital expenditure requirement for State IT Agency,
SITA, for the financial year 2022-23 is budgeted at
R750 million. However, the actual total capex requirement far
exceeds this amount. The notion that SITA may have to consider
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borrowing as well as applying for conditional grants in ...
[Sound lost] ...
Mr M S MALATSI: House Chair, I think she is being load-sheded.
The ACTING CHAIRPERSON (Mr F D Xasa): No, I am there. Can you
hear me?
Mr M S MALATSI: Yes, we can hear you, House Chair. I think she
is just ... [Interjections.]
The ACTING CHAIRPERSON (Mr F D Xasa): Oh, it’s the member. Can
we then move to the next speaker?
Mr M S MALATSI: House Chair, before we do so, can we just
establish with you whether she will be allowed to finish her
speech or can ...
The ACTING CHAIRPERSON (Mr F D Xasa): Yes, she will be
allowed.
Mr M S MALATSI: Thank you.
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The ACTING CHAIRPERSON (Mr F D Xasa): Can we ask the hon Tambo
of the EFF?
Mr S TAMBO: House Chair, we would be committing a disservice
to the people of South Africa if we did not begin by
condemning the dishonourable, alarming and inhumane
revelations of Ministers, Deputy Ministers and officials in
this department spending over R15 million on accommodation and
catering since 2019. Unbeknown to us all, is why these
parasites spent so much money on accommodation and catering
during a global pandemic where meetings and engagements were
held virtually due to the Covid-19 pandemic. Today, some of
these very parasites are amongst us addressing us and planning
a budget with us simply because they conveniently belong to
... [Interjections.]
Mr B A RADEBE: Chairperson, I am rising on Rule 84. The member
has just used an unparliamentary language by calling members
of the House parasites.
The ACTING CHAIRPERSON (Mr F D Xasa): Yes, that is correct,
hon member.
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Mr S TAMBO: Chair, which members were referred to as
parasites?
The ACTING CHAIRPERSON (Mr F D Xasa): No, whoever is the
member, you said they are parasites. They are honourable
members. Can you withdraw that statement?
Ms O M C MAOTWE: Chair, I do not agree. I mean he has not said
a specific person is a parasite; he is just saying that
parasites in this ... [Interjections.]
The ACTING CHAIRPERSON (Mr F D Xasa): No, we have hon members.
Ms O M C MAOTWE: Can you please allow hon Tambo to finish his
speech, please?
The ACTING CHAIRPERSON (Mr F D Xasa): I will only allow ...
[Interjections.]
Ms O M C MAOTWE: Hon Radebe, just wait. We know you get paid
for calling points of order. Just wait. [Interjections.]
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The ACTING CHAIRPERSON (Mr F D Xasa): Hon Maotwe, I have given
a ruling to say that hon member Tambo must withdraw that
statement. [Interjections.]
Mr N L S KWANKWA: But it is a stray bullet, Chair, with
respect. It is like when we say "la masela” [these thieves] in
the House, we are not referring to anyone specific.
[Interjections.]
Mr A H M PAPO: No, point of order, hon member Kwankwa and hon
Tambo. Chair? [Interjections.]
Mr B A RADEBE: Chairperson?
Mr S TAMBO: But if there are people who feel like they are
parasites they must say so, so that we can know who not to
call parasites. Who feels they are parasites? [Interjections.]
Mr A H M PAPO: Order on what member Kwankwa said and member
Tambo.
The ACTING CHAIRPERSON (Mr F D Xasa): Hon Tambo, can you
please withdraw that statement?
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Mr S TAMBO: I withdraw, Chair.
The ACTING CHAIRPERSON (Mr F D Xasa): You withdraw, thank you
very much. Proceed then.
Ms O M C MAOTWE: But Chair, you must also be fair. He never
referred to any specific member. You must not be bullied by
hon Radebe who is just getting paid all the time for calling
points of order. There is not a single sitting where Radebe
does not call a point of order, even when a fly passes, he
calls a point of order. That is his job; he gets paid for
that. [Interjections.]
The ACTING CHAIRPERSON (Mr F D Xasa): Hon Maotwe, can I appeal
to you to ask for recognition. You cannot just speak.
Otherwise, you would be disrupting the proceedings. Hon Tambo,
can you proceed?
Mr S TAMBO: Today, some of these people are amongst us
addressing us planning a budget with us simply because they
conveniently belong to the correct faction. They must be
ashamed that in the face of massive retrenchments, closure of
businesses and death, they lived a lavish lifestyle. They must
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address us knowing that we know them for what they are — as
leaches, opportunists and vultures who circled around the dead
bodies of our people in a time of tragedy.
House Chair, we are here today to reject this budget which is
characterised by austerity that defines this incompetent
government. It is a department defined by inadequacy due to
budget constraints and a misuse of money. The implementation
of the SA Connect Broadband Policy adopted almost a decade
ago, which seeks to provide broadband connectivity to district
municipalities has been a complete failure. Yet, we are told
in this report that we must transition to phase two of the
project. Phase one, which set out to connect 6135 government
facilities which include schools, health facilities, post
offices, police stations and government office, in the eight
rural district municipalities to broadband services, only
managed to connect 970 government facilities. So, on what
basis to you plan to transition to phase two?
The auction of spectrum has proved to be a disaster which has
reaffirmed the ... [Inaudible.] ... of MTN and Vodacom. There
is little hope that data prices will ever fall. In the main,
the market will continue to be dominated by Vodacom and MTN,
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both of which left the auction with an additional 110mhz and
100mhz respectively. With Vodacom and MTN each spending R5,4
billion and R5,2 billion, it means now all the money will now
have to be recovered through the ordinary consumer. In
essence, the hope for more competition in the market to force
data prices to fall is lost, possibly for good. This is while
the consumers will be paying the price. Data will continue to
be expensive and a thing for the rich and privileged.
Your lack of planning and concern for the poor is further
exhibited by your handling of the process of digital
migration. Television services are part of the modern
information age. In fact, it is part of the Constitutional
right to access information, particularly as it relates to
government actions, decisions and reports.
An estimate of over 8 million, mainly poor, South Africans
will be left out of the free to air television services should
the analogue signal be immediately switched off on the
deadline that has been set now without provision of said top
boxes to the poor. A simple strategy would be to use the SASSA
data base as a legitimate basis to distribute said top boxes,
because your application system is exclusionary and elitist.
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But because you have no imagination beyond hotel bookings, our
people must suffer.
Instead of doing this, spending in the broadcasting digital
migration sub-programme in the ICT infrastructure development
and support programme is expected to decrease from R1,3
billion in 2021-22 to 84,1 million in 2024-25 at an average
annual rate of 59,5%. At SANTEC revenue is expected to
decrease at an average annual rate of 1,3% from 1,5 billion in
2021-22 to 1,4 billion in 2024-25 because of the analogue
signal being switched off, resulting in television revenue
decreasing slightly before recovering again. This is yet
another indicator of your lack of planning around digital
migration. This is effectively a decision to take a majority
of our population into the dark ages. For the SABC,
advertising revenue is expected to increase by 13% in the
financial year 2023. We must applaud ICASA and specifically
the EFF for ensuring that the parasitic must carry regulations
amended to require subscription broadcasters to carry the
public broadcaster’s channels subject to commercially
negotiable terms. The report should have, however, outlined
what percentage of the projected revenue increases in
advertising stem from the adding of the public broadcaster’s
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content on subscription broadcasters. Thirteen percent does
not seem like a convincing figure of an outcome of a
commercially negotiated terms with subscription broadcasters
over the public broadcaster content.
At the South African Post Office you have implemented a
shallow thinking of attempting to rescue the financial
position of an entity by firing people. What you call the
staff optimisation project is simply retrenchments. You have
resolved to retrench 6 021 workers at the post office by 2024-
25 only to decrease your expenditure which will only decrease
your expenditure by 4,8%. No where does this illustrate how
you will rejuvenate postal service. There is no illustration
of how the entity will be revolutionised and capacitated to be
able to compete with emerging private sector courier services
in particular.
Retrenchments are at the centre of your doomed strategy. The
entities in this department are characterised by poor
management, debt and lack of strategic setting of achievable
objectives in line with the dependable allocation of a budget.
It is a department led by people with no appetite to integrate
our people into adequate ICT infrastructure and determined to
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exclude the poor in the agenda of digital migration, internet
connectivity and access to information. It is a department led
by parasites. We reject this Budget Vote. [Time expired.]
Thank you.
Mr M S MALATSI: House Chair, there is a point of order here.
House Chair, with regard to the member from the DA, my
colleague, we propose that the three minutes she had left be
added to myself being Malatsi on the list because she will not
be able to return to continue with her speech. Thank you.
The ACTING CHAIRPERSON (Mr F D Xasa): It is two minutes
something, but we have recorded that.
Mr M S MALATSI: Yes, it was two minutes and 38 seconds.
The ACTING CHAIRPERSON (Mr F D Xasa): Let us not argue about
it. Can I now call on hon Singh of the IFP?
Mr B A RADEBE: Chairperson?
The ACTING CHAIRPERSON (Mr F D Xasa): Hon Radebe?
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Mr B A RADEBE: The previous speaker has repeated again that
the members of this House who are leading the department are
parasites. I think that something must be done around that.
Thank you, Chair. It is unparliamentary.
The ACTING CHAIRPERSON (Mr F D Xasa): I have noted it. Can we
proceed, hon Singh?
Mr A H M PAPO: On a point of order in terms of Rule 84. The
same member called the leaders of this department vultures and
all sorts of animal names he used which is not allowed in
terms of parliamentary language. You must look at that because
he did not only use parasites but he also used names of
animals.
Ms O M C MAOTWE: Wena man Hope, we are busy please.
Mr S TAMBO: Vultures, leaches and parasites.
Mr A H M PAPO: Chair, she opened her mic without being
recognised. This is the third time she does that.
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The ACTING CHAIRPERSON (Mr F D Xasa): Hon Papo, I have noted
the comments of the hon member. I will follow up on that. Can
I now allow hon Singh?
Mr N SINGH: Chairperson, I was hesitating a bit, in case
somebody else came in. I present the comments on behalf of the
IFP, as prepared by hon Majozi, who is currently on sick
leave. The communication space, where the Department of
Communication and Digital Technology locates itself is fast-
paced and ever-changing. As the IFP, we therefore note the
announcement that, and I quote: “The DCDT will in the medium
term focus on developing new and revising existing policies,
strategies and legislation.” This is an important step,
considering the country’s national Integrated ICT policy White
Paper is a 2016 document and more than five years out of date.
Sadly, many of the department’s commitments are not worth the
paper they are printed on. Take for instance the commitment
listed in the committee’s report that, the analogue
transmitter switch-off is targeted for 31 Mar 2022 across all
provinces. It is now common knowledge that department failed
to meet this deadline, which has yet again been extended to 30
June 2022.
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While we can understand that the information in the report
might not be up to date and we heard the Minister speak on
this, as it was collated some time ago, there is no excuse for
the department’s website to be outdated. On the home page,
banners are still saying, and I quote: “Register at the
nearest post office before 31 October 2021 to get a free
digital decoder installation.” It still says: “Registration
after 31 October 2021 will only be connected three to six
months after the switch-off.”
While these outdated notices could be viewed as an
embarrassment to the department, the real embarrassment is
that South Africa has not yet completed its digital migration.
And the country is much more than a few months off the pace.
The initial analogue terrestrial television switch-off
deadline, as per the then Minister Ivy Matsepe-Casaburri, was
1 November 2011. That was more than 10 years ago. Not only did
we miss our internal deadlines, South Africa is the biggest
loser in Africa too, as we failed to make the International
Telecommunication Union analogue broadcast switch-off deadline
on 17 June 2015.
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The Question is what has government been doing in the seven
years since. Six months ago, the Deputy Minister of
Communications, Minister Mapulane, said, and I quote: “We are
late, as we know that the entire continent has migrated and we
are the last to migrate as a country and it is something we
should not really be proud of, given our resources. As a
country, we should have been the one leading this migration.”
Yet, despite admitting to having resources and then admitting
shame and being left in the dust, the department again failed
to meet its deadline of 31 March 2022. One shivers to think
what this protracted delay on the part of government has cost
the people of South Africa, not only in rand and cents, but in
opportunities.
Then we have SA Connect, a 2013 initiative, which, and I
quote: “seeks to meet the technology goals of the NDP”. Phase
one was meant to provide connectivity to 6 135 government
facilities. The department manage only 970 facilities, leaving
5 165 facilities that were not provided with the broadband
service. Budget constraints were cited as the reason for this
pitiful performance, but surely, such a huge discrepancy
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between the envisioned outcome and actual results should have
become evident in the planning stages.
As the IFP, we have to ask, is any planning, monitoring and
evaluation taking place in this department? How is performance
measured? When the people of South Africa are left isolated
and disconnected, who is being taken to task and held
responsible? Where is consequence management? The department’s
laundry list of failures and missteps goes on and on and as
one examines the portfolio committee report, it is difficult
to find anything to celebrate.
Let us talk about the SA Post Office - R4,2 billion in debt
with pitiful prospects. The SABC is, amongst others, and I
quote: “unable to achieve annual target revenues” and “greater
concerns about the improper governance practices”. Sentech is
“struggling to attract new customers”.
As the IFP, we are deeply concerned that the inability of this
department to achieve its targets, maintain clean audits and
even deal with the most basic of services ... [Inaudible.] ...
subject to the above serious concerns, which we expect the
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Minister to provide us with effective remedial action, the IFP
will reluctantly support this Budget Vote.
The ACTING CHAIRPERSON (Mr F D Xasa): Hon Tambo, I gave a
Ruling and you agreed to withdraw a statement that you have
made. I think hon members know that, if they don’t agree with
a ruling of the Chairperson, they know what they are supposed
to do. Now, you repeated that when you were leaving the
platform. Can I call on you to withdraw the statements that
you made, because I did give a ruling? Otherwise, that will be
seen as something that negatively impacts on what we are doing
as this Mini-Plenary. Can I ask hon Tambo to withdraw the
statement that he made, as he was going to sit down? Hon
Tambo, are you still on the platform? I am talking to hon
Tambo. Other members, I think, the engagement when I have
given the ruling is actually disruptive. Well, I think I have
given my expectation to hon Tambo of what I expect him to do.
Mr W WESSELS: Hon Chairperson, a lot can and has been said
about the state of the public broadcaster - the delay in the
release of broad spectrum, missing deadlines and the
repetition of empty promises each year, as well as the lack of
consequence management in this department and its entities.
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However, I want to focus on the South African Post Office,
which is and should be a backbone and very critical to
economic development. And postal services are especially
crucial to small business development. As of 31 January 2022,
the South African Post Office owed landlords R304 million for
their rent. That, obviously caused a lot of branches of the
South African Post Office to be closed, locked because of the
outstanding rent.
Whilst a lot of poor people in South Africa are dependent on
grants and post offices to receive those grants, it is
unacceptable that nothing is being done about this. This is a
failure of the most vulnerable, where people need access to
post office branches, especially for their Social Relief of
Distress grants during the past couple of months and the
Covid-19 period.
Now, the Post Office is selling 14 of their properties to try
and cover their debt, but these auctions will only cover 8% of
the outstanding debt to landlords. That is a huge problem.
Also, it is of concern that the reserve prices listed for most
of these properties are lower than market value. Why is an
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entity that is in financial trouble selling off assets at a
lower price than it should be? It just does not make sense.
At the end of the financial year ending 31 March 2020, the
losses incurred by the Post Office was R1,8 billion. Its
current liabilities exceed its assets by R1,5 billion. It for
instance owes Telkom R269 million.
What is the cause of the total destruction and collapse of the
Post Office? It is not the business model, it is not the
sector in which it is operating, because there is a lot of
private-sector companies that are making a lot of money and
are lucrative, providing and serving the gap that was left by
the Post Office, which failed. Courier services are doing
well.
Now, the business model is changing and there are all kinds of
proposals to get the Post Office in other sectors and cash
cows and so forth, but that is not the reason why the Post
Office is collapsing and has been destroyed. The reason is
because of corruption. The reason is because of a bloated
staff component. It is because of financial mismanagement. It
is because of financial and management instability. It is
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about incompetence. A lot of people have to go to the private
sector and other courier companies, because of the fact that
parcels get lost and it is complete chaos at post offices.
Afrikaans:
Die Postkantoor is vernietig, net soos die SABC, deur boewe en
parasiete, en dis waaroor dit gaan. Dit het niks met die
dienste te doen nie. Dis die totale mislukking van die ANC-
regering wat die Poskantoor en al die ander entiteite van
hierdie regering totaal en al vernietig het, en u laat die
mense van Suid-Afrika in die steek. Ek dank u.
The ACTING CHAIRPERSON (Mr F D Xasa): Can I call on the Deputy
Minister? As I do so, I will be handing over to hon Dyantyi.
Hon Thabo has left the platform. Let us leave it at that.
Ms O M C MAOTWE: House Chair, on a point of order: It is very
dangerous for you to say that hon Tambo left. What informs
that? My point of order is that you are wrong. How did you
arrive to the conclusion that he left? There are network
issues here. Why do you conclude that he left? It could have
been a network problem.
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The ACTING CHAIRPERSON (Mr F D Xasa): Hon Maotwe, can I be
allowed to Chair this session up to the end. I am saying that
I have been advised by the people who are controlling the
system. If he left because of what you are saying, it is still
fine. I could not speak to him. That is what I was demanding
from him, to say that he must withdraw that statement. If he
is not there, I think we will take up the matter. Can I allow
the Deputy Minister to take over and allow hon Dyantyi?
Mr A H M PAPO: Chair, on a point of order: I rise in terms of
Rule 84. The last speaker from the FF Plus thinks that some of
us cannot understand suiwer [pure] Afrikaans. He also used the
word “parasites” in Afrikaans. Look at the record and you will
see. He thought we don’t understand Afrikaans.
The ACTING CHAIRPERSON (Mr F D Xasa): We will look at the
records. [Interjections.]
Mr W W WESSELS: Chairperson, on a point order: It has nothing
to do with the fact that other members will not understand it.
I will say it in English as well. The Post Office was
destroyed by parasites.
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The ACTING CHAIRPERSON (Mr F D Xasa): Can we move on?
Ms O M C MAOTWE: No, I think, we must call him. We must ask
him to withdraw. Please, ask him to withdraw.
The ACTING CHAIRPERSON (Mr F D Xasa): Hon Wessels, can you
withdraw that?
Mr N L S KWANKWA: Chair, what would he be withdrawing?
The ACTING CHAIRPERSON (Mr F D Xasa): Actually, I have given a
Ruling in the first statement that was made and I communicated
… [Interjections.] Hon members, if you don’t agree with the
Ruling that I have given, you know what process to follow.
Mr N L S KWANKWA: Chair, in the original Ruling, I think the
person who rose on a point of order took exception to the fact
that someone might have referred to hon Members of Parliament
as parasites. Now, hon Wessels is saying that the Post Office
was destroyed by parasites. So, what is wrong with that
statement?
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The ACTING CHAIRPERSON (Mr F D Xasa): So, there is a
difference.
Mr N L S KWANKWA: There is a difference, a complete
difference.
The ACTING CHAIRPERSON (Mr F D Xasa): Let me look at it and
come back. I think that I agree with you. That is why I was
saying that I was not calling on him to withdraw. I agree with
you. He did not say the same thing in the same way that was
said by hon Tambo. Can that be my Ruling? I will not ask him
to withdraw. [Interjections.]
Sepedi:
Moh O M C MAOTWE: O a ba t?haba makgowa, mokgekolo.
(Translation of Sepedi sentence follows.)
[Ms O M C MAOTWE: You are scared of white people, old lady.]
The ACTING CHAIRPERSON (Mr F D Xasa): Hon Maotwe, allow this
session to go on properly.
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The DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL
TECHNOLOGIES: Thank you very much, House Chairperson, hon
Minister of Communications and Digital Technologies, hon
Khumbudzo Ntshavheni, hon members of our portfolio committee
as led by Chairperson Maneli, and all the hon Members of
Parliament, the Acting Director-General, and other senior
departmental officials, esteemed guests, fellow South
Africans. On this day, 90 years ago, a towering giant of South
Africa’s National Democratic Revolution was born. Born into a
working-class family ... [Interjections.] ...
The ACTING CHAIRPERSON (Mr Q R Dyantyi): Hon Deputy Minister,
just hold.
Ms O M C MAOTWE: Hon Chair.
The ACTING CHAIRPERSON (Mr Q R Dyantyi): What is your point of
order, hon member?
Ms O M C MAOTWE: I am wondering if the Deputy Minister would
like to take a question.
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The DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL
TECHNOLOGIES: I am glad to take a question as soon as I finish
my speech.
The ACTING CHAIRPERSON (Mr Q R Dyantyi): Thank you. Question
declined. Go ahead, Deputy Minister.
The DEPUTY MINISTER OF COMMUNICATIONS AND DIGITAL
TECHNOLOGIES: Born into a working-class family in a village in
Engcobo in the then Transkei, Walter Sisulu, grew up to be one
of the outstanding leaders of the ANC in the struggle against
apartheid-colonialism. The nation owes this gallant hero of
our liberation struggle, and indeed his generation of freedom
fighters, a great debt of gratitude for the indelible
contribution he and others have made towards our political
liberation. We in the glorious movement for which Walter
Sisulu belonged, the ANC, vow never to betray the course for
which he sacrificed his life. We shall continue with the
fundamental programme of socioeconomic transformation to bring
about changes to the majority of our people, blacks in general
and Africans in particular.
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Hon Chair, the notion that the ministry spends millions on
accommodation must be rejected with the contempt it deserves,
as it is nothing but sensational reporting and a populist
posture devoid of any tool. The facts are there for anybody
who is interested. The department is committed to transforming
the Information and Communication Technology, ICT, sector and
to building a digital economy in a manner that no one is left
behind. In this regard, Chair, I would like to emphasise the
points raised by the Minister, that as a department we have
migrated indigent household in five of the nine provinces from
analogue to digital broadcasting, and we are well on course to
meet the June deadline that was set by the court.
We have connected 970 government facilities under the SA
Connect phase one and we are well underway to roll-out phase
two of the SA Connect project, we have trained over 91 211
citizens in digital skills and provided over 7 700 courses,
among some of the achievements of the department. We remain
committed to ensuring that the opportunities presented by the
digital economy are not the preserve of a privileged few, but
are indeed enjoyed by all the people of our country. We owe
this to the memory of Walter Sisulu. Hon Chair, the 2030
Agenda for Sustainable Development, acknowledges that the
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spread of information and communication technology and global
interconnectivity has great potential to accelerate human
development and to bridge the digital divide.
According to the recent General Household Survey from Stats
SA, the proportion of households who use only cellular phones
as a means of communication increased by 1,6% from 87,8% in
2019 to 89,40% in 2020. Households using both cellular phones
and fixed or landlines increased from 7,1% in 2018 to 8,3% in
2019. The above statistical information abundantly illustrates
the point that ours is a fast-growing sector with a huge
impact to make in the socioeconomic development of our
country. Much has been said about the SA Post office, SAPO.
The SAPO, since its establishment on the 02 March 1792, in a
small room next to the pantry of a Cape Town Castle by the
colonial settlers, has evolved and grown over the years to
being the vehicle for service delivery and connecting the
unconnected through its wide footprint of over 2 400 points of
presence in the country and international network reaching
over 187 countries.
Over the years, this important national asset has experienced
significant revenue decline as a result mainly of the changing
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market conditions exacerbated by the rapid technological
advancements, leading to the declining volumes of letter post
which was the core of the business of the Post Office. Since
then, SAPO has been struggling to reposition itself in line
with the changed market conditions. Since assuming office in
August last year, the Minister and myself have been seized
with helping SAPO to reposition itself, which efforts
culminated in the adoption of the Post Office of Tomorrow
strategy. Through this strategy, we are committed to
repositioning SAPO to provide a diversified and expanded
services, to positioning it as a logistics platform for e-
commerce. We will digitise the Post Office to be a dedicated
and designated authentication authority that fulfils its role
as a national trust centre in the age of digital identity and
services.
Through its expansive infrastructure and postal network, we
will transform the Post Offices, especially in the rural
areas, to become digital hubs so to serve communities as well
as be a platform for unemployed youth and potential
entrepreneurs. As the government remains committed to the
turnaround of SAPO to be financially sustainable as well as to
re-engineering its products and service portfolio. We are
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engaged with National Treasury on the required
recapitalisation of the entity. As we reposition SAPO to be
the leading logistic service provider for South Africa and the
region, we will forge strategic partnerships that are crucial
enablers for SAPO’s e-commerce and logistics strategy. In this
regard, the department has finalised the SA Post Office
Amendment Bill in line with the Post Office of Tomorrow
strategy.
The Bill is out for public comment after being approved by
Cabinet recently. We hope to submit it to Parliament before
the end of this year so that it can be processed. We will soon
be finalising the filling of the vacancies in the board and
capacitate the entity at executive management levels. Hon
House Chair, the internet has become an integral part of our
everyday life, changing how we live, work, and interact with
each other. The age of the internet has not only brought about
the convergence of technologies, which is continuously
blurring traditional market distinctions and boundaries, but
also with the rapid proliferation of and ubiquitous online
streaming platforms which resulted in connected citizens, and
so, the state must, consistent with the injunctions of the
Constitution to respect, protect, promote, and fulfil the
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fundamental rights enshrined in the Bill of Rights, regulate
the creation, production, possession and distribution of
films, games, certain publications and content distributed
online that may be deemed harmful or prohibited using the
Films and Publication Act.
We are extremely delighted on the coming into operation on the
01 March 2022 of the Amendment Act of 2019 though a
proclamation by the President. This Amendment Act has
transformed the Film and Publication Board, FPB, from a
historically narrow classification authority into a fully-
fledged regulator, with legitimate powers to issue and renew
content distribution licenses to both local and international
distributors, and develop regulations to enforce compliance,
impose penalties in case of noncompliance. Given the fact that
the scope and mandate of the FPB has increased threefold, we
requested the entity to re-imagine its future role through the
development of the Online Content Regulator of the Future
strategy, for which I am delighted to report that it has been
finalised and submitted to the department.
The Online Content Regulator of the Future proposes a
fundamental shift in both the governance and funding model,
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including looking at the fragmentation and regulatory overlaps
among the different regulators in the country and proposes
measures to improving regulatory efficiencies. We welcome the
proposal in the strategy for a single content regulatory
system that is technology and platform neutral. Efforts are
already underway to transform the entity to align it with the
new expanded mandate. Hon Chair, we plan to launch The Online
Safety Youth Council during the month of June at a Youth
Online Safety Summit as part of the National Youth Month. The
main objective being to involve the South African youth in
promoting online safety as prescribed for in the Act.
In doing so, we recognise that the youth are not only the
biggest consumers of content online, they are equally the
biggest victims of cyberbullying. According to Global Advisor
Cyberbullying study, cyberbullying has significantly increased
in South Africa with 25% of parents saying that their children
have been victims of cyberbullying. Hon members, digital
technologies such as digital automation, artificial
intelligence, AI, robotics, augmented reality, 3D printing,
and a range of other digital technologies, are changing the
nature of jobs that were routinely performed by humans. As
various sectors of the economy continue to use and depend on
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these new digital technologies, the legacy skills as well as
existing ICT skills are becoming obsolete, and this increases
the demand for new digital skills.
These changes require humans to be equipped with the relevant
and necessary skills to perform the new jobs. To address the
Digital Skills deficit in South Africa, the National Digital
and Future Skills Strategy seeks to ensure that the youth of
South Africa are provided with the necessary level of basic
digital skills, that will enable them to function within a
21st century world that is increasingly pervaded by and
dependent upon digital technologies. To date, the National
Electronic Media Institute of SA, NEMISA, have trained 6 000
people on Digital Literacy and a total of 7000 trained on
other digital skills like Data Science, cloud computing and
machine learning. The department partnered with GIZ to train
2000 youth not in employment education and training on Digital
Literacy.
The NEMISA plans to train 60 000 small, medium and micro
enterprises, SMMEs, on Digital Entrepreneurship programmes and
14 950 in Broadcasting skills. The NEMISA has been directed to
also focus more on partnerships with other state entities and
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government departments. In this regard the Memorandums of
Understanding, MOUs, have been concluded with, among others:
The Department of Military Veterans to train military veterans
on various digital technology skills to the tune of over
R27 million, the Banking Sector Education and Training
Authority, BANKSETA, to train a number of banking
beneficiaries on various digital technologies to the tune of
R59 million, Media Information Communication Technology Sector
Education and Training Authority, MICT SETA, on its
discretionary grant, for learnerships in the Western Cape,
Mpumalanga, and Gauteng. In conclusion, hon Chair, Walter
Sisulu counsels us that:
There are no short-cuts. There are no easy answers. There
are no complete formulas. Only continuous campaigning
among the people, with continuous response to their own
activities, taking them a step forward each time, can
lead us to our goal.
This prophetic articulation by our revered freedom fighter, is
what guides us in our service to the nation. I would like to
thank you.
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Mr N L S KWANKWA: Hon Acting House Chairperson, you will
recall that it is public knowledge that the Independent
Communications Authority of South Africa, Icasa, collected
about R14,4 billion during the recent spectrum auction. In
fact, President Ramaphosa reacting to the spectrum auction he
said:
The auction of spectrum is an important achievement. It
was delayed for many years due to the policy drift, state
incapacity and vested interests that were a feature of
the era of State Capture.
Probably, the President also forgot to mention that the
spectrum allocation was the first in 17 years and the process
obviously had been delayed for the reasons that he had stated.
For these reasons, especially the one where he cited
incapacity as a problem, we take all the commitments that had
been made by the Minister and the department here with a pinch
of salt due to the numerous deadlines they have missed on a
number of issues. We made these points believing that there
should be stricter timeframes that should be set for the
reduction of communication costs in South Africa.
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We are saying this primarily because, I am sure many of you
will remember that the failure to address to huge gap of
internet access between the rural and urban areas was evident
during the pandemic. We learnt the significance of having
internet access and it was said that learners and workers
residing particularly in the rural areas were suffering to
access internet and to be able to learn. It is important as we
make this point hon Chair, to remember that while we must
celebrate the auction of the spectrum, the recent auction,
China was already on 6G, when visited her on an official visit
in 2015. We were shown that very soon they might be on 8G. So,
while this is worth celebrating we still have a lot of
catching up to do with the rest of the world.
We welcome the plans and intentions to make sure that the post
offices become centres of technology.
IsiXhosa:
Kodwa maan ezi posi nithetha ngazo kufuneka zingafani naba
mpompi banganamanzi. Nina kaloku nibane nisincokolela
kwiintetha zenu eziyokozelayo, ezibhalwe ngobuchule ukuba
nigxumeke oompompi bamanzi kwiilali ezinga babe bengaphumi
manzi aboo mpompi. Uza kufumanisa ukuba la maziko ethokhnoloji
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nifuna ukuwenza, abantu bakuthi baza kuphinda bangakwazi
ukuwasebenzisa ...
English:
... due to maladministration and poor management of post
offices.
IsiXhosa:
Ningaba kwanina nohlulakele kwaphela, nditsho ukuthumela nje
iileta.
English:
All entities in this department should improve to position the
department as an enabler to an inclusive growth in the
Information Communication Technology. It is therefore very
important that we ensure that we speed up public’s internet
penetration rate, which is still very low by international
standards. It is at about 68,2% of the total population. This
means, even if we were able to push prices down ... [Time
expired.]
Mr B N HERRON: Hon House Chairperson, it is surely time for
South Africans to be having a serious conversation over
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whether having access to data like access to portable water
and health care should fall into the category of basic human
rights. By commodifying data and pricing it out of the range
of the majority of the citizens we are drastically restrict
access to the benefits of the Fourth Industrial Revolution
perpetuating and deepening inequality.
As things are, instead of levelling the playing fields as we
hoped it might, the much-heralded age of technology is serving
to heighten the mounds of privilege and deepen the troughs of
poverty. Government wants 80% of the population to have access
to the internet by 2024. But access to internet is of little
worth to those who cannot afford data. A bit like people with
theoretical access to electricity, but who live in the dark
because they cannot afford to pay for any of it.
According to the 2019 General Household Survey 64,7% of South
African households had at least one member with access to the
internet, either at home, work, place of study or internet
cafés. Just over 10% of South African households had access to
the internet at home. Yet more and more of modern life takes
place online. More people work remotely, access educational
materials on the internet, and do their shopping
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electronically. Digital skills are in higher demand in the
workplace, in the health-space and in commerce.
Those without the ability to fund data are once again being
left in the dirt. We have to ask ourselves if the re-
impoverishment of more-or-less the same group of people who
were deliberately impoverished under apartheid is either
desirable or sustainable. How do we grow an economy in an
environment in which most people cannot participate? It
beggars belief that the cost of data in South Africa is among
the highest in the world.
In his state of the nation address, President Ramaphosa drew
attention to the Competition Commission having instructed
mobile operators to adjust their pricing to reduce the digital
inequality. The operators lowered the poverty premium on low-
denomination, prepaid mobile bundles. But this is hardly
enough. The rich, with their greater purchasing power, still
pay less for data.
The President referred to the Competition Commission having
proposed a free lifeline data package to provide a certain
amount of free data daily at no cost. That would be a good
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place to start. For it to work for all, implies developing
sufficient telecommunications infrastructure to cover the
nation. It is time for this proposal to see the light of day.
With will and dexterity, we can close this gap, demonstrate
the value we put on reducing inequality, and lift the false
ceilings that trap the disconnected and keep them down. I
thank you Acting House Chairperson.
Mr L E MOLALA: Chairperson, hon Minister, hon members, fellow
South Africans, information and communication technologies
have become an increasingly important tool for development,
providing access to information for science technology
innovation and fostering and enhancing regional and
international co-operation.
Along with the rest of the world, South Africa has been
catapulted by the pandemic into an environment that require
rapid digital transformation. A study conducted by Harvard
University Review in 2019, reveal that South Africa is a
leading regional leader in the ease of creating digital jobs.
South Africa is also a regional leader in the deployment of
several emerging technologies such as biometric data, payment
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cars to deliver social security, drones in mining, which helps
it to keep at an innovative edge.
Our information communication technology, ICT, sector
continues to demonstrate signs of growth, recording
R246 billion in revenue in 2021, up from R224 billion in 2020.
According to the state of ICT sector report in South Africa
delivered by Independent Communications Authority of South
Africa, ICASA, earlier this year, the total sector revenue
increased by 0,3%.
Having noted all the advancement made, the ANC is of the view
that made, the ANC is of the view that it can be done to
leverage the ICT sector and all that the 4th Industrial
Revolution has to offer in order to respond to socioeconomic
challenges we face in our society today.
As we celebrate the opportunities that come with new
technology, allow me to also take this opportunity to
recognize one of the people who have contributed immensely
towards science innovation technology and engineering in our
country. The Deputy Chairperson of the Presidential Commission
on the 4th Industrial Revolution, Vice Chancellor of the
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University of Johannesburg, Professor Tshilidzi Marwala for
his election to the American Academy of Arts, and Sciences.
Professor Maralwa has been elected to the academy as a new
international honorary member to form part of the 261 members
elected this year. The ANC wish him well as he embarks in his
new journey and as we remain proud and confident that he will
fly the South African flag higher
Hon members, while ICT is seen as a powerful tool for economic
development and for effective and efficient service delivery
by government. Our country is still challenged with issues of
accessibility, usability and affordability. The inability to
access ICT is closely associated with poverty which is most
prevalent in our rural and poor areas of our country.
Since the pronouncement of the South African Connect Project
in 2013, the ANC-led government has been hard at work in
making sure that all South African have reliable ICT
infrastructure. To date, 970 government facilities have been
connected and a feasibility study has been conducted to
evaluate the resources that will be needed to carry out phase
two, which will see the completion of the remaining 5 185
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facilities that were not provided with broadband services due
to the limited budget allocation.
The ANC implores on National Treasury to make provision for
two of South Africa’s connect project as Ministry and
department also sourced out funding to ensure that the rest of
the country gets connected. We also implore the National
Treasury and the department to fast-track the upgrade and
rollout of 100Megabits per second, Mbps, connectivity as this
will optimise the modernisation, digitalisation and
transformation programmes for government. There has been a
rapid increase in the number of users utilising online
services for application such as remote working, online
learning, electronic healthcare and a subsequent requirement
for increased internet connectivity. The improving of internet
connectivity speed has become a necessity and therefore
requires to the South African connect infrastructure footprint
countrywide and it is of paramount important.
The ANC commends State Information Technology Agency SOC Ltd,
SITA, for the hard work that they have put toward turning
around the agency. Over the period ahead, the agency will
focus on the financial sustainability and has reconfigured its
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strategic programmes to complement the objectives of the
National Economic Reconstruction and Recovery Plan.
The ANC welcomes the allocation of R1,5 billion towards the
acquisition of assets over the Medium-Term Expenditure
Framework, MTEF. The agency generates revenue by providing ICT
infrastructure and services to government departments and
organs of state. Revenue is expected to increase at an average
rate of 4,3% from R6,2 billion in 2021-22 financial year to
R7,1 billion in 2024-25. This will contribute towards adding
the work of the agency.
Hon members, it is in this 6th Parliament that ICASA released
the long awaited spectrum in over 17-years. The ANC commends
the work of the council through the auction of R14,4 billion
that has been collected and will continue towards the national
fiscus. Not only with the funds benefit other key government
programmes that are focused on addressing the triple
challenges of poverty, unemployment and inequality that
confronts our people on a daily basis. It will also provide
better quality services for consumers with fewer dropped
calls, faster internet downloads speeds and reduce mobile
data.
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The ANC notes that in order to increase the access to quality
broadband services, - The authority plans to implement the
radio frequency migration plan and develop monitoring report
on the impact of the deployment of 5G in the ICT sector. We
are of the view that an additional allocation of R300 million
2022-23 will assist the council in its effort to strengthen
regulatory capacity and licencing of spectrum for
international mobile telecommunication, specifically wireless
broadband services. For the mobile operators, spectrum
allocation will help provide faster and more widespread high
speed data service. It’s expected to feed up spectrum, will
increase access to internet and stimulate the growth of
business and the economic recovery effort. With that
presentation, the ANC supports this Budget Vote. I thank you.
Mr W M MADISHA: Thank you, hon Acting House Chair and members.
Cope has once again looked into the mandate of the department
today’s budget proposal to the House and the department’s
expenditure analysis. We have also accessed the challenges
faced by the South Africans, particularly the underprivileged
and the poor. Cope agrees that there are both national and
international information and communications technology, ICT,
demands that we can’t avoid. We agreed that like other
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countries of the world South Africa is faced with the Fourth
Industrial Revolution and to save all South African people,
Parliament must allot more and enough resources. It is not
only the relevant machinery, but is necessary to take South
Africa and her people forward, but also the human brains that
must be accessed to help with the implementation of the
required knowledge. This means that enough must have been
availed to ensure that enough educators and trainers are
employed.
On the SA Broadcasting Corporation, SABC, we know that SABC is
faced with many challenges which include those that have risen
due to technological advances, other forms or media houses
which have enough resources. If you were to compare them to
SABC the growing lack of interests for many companies when it
comes to advertisements, corruption as already identified by
the Auditor-General’s office and many other problems that need
a capable management and an independent board. The board which
is not pushed for the realisation of particular political
interests by certain political leaders. We truly need to look
into that which SABC has and has been continuing to do which
is basically out of order.
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On the SA Post Office, that is an extremely important entity
which is, as you all know, used by millions of South Africans
deep in the rural areas, in villages and in townships. More
must be done to improve their services by both ensuring enough
staff and resources. Now, all the other entities, I have no
time to mention, I believe that more must be done to address
incapacity by many amongst them. South Africans pay those
entities for nothing. The majority of them are given money
every year, but either fail to do what they are supposed to do
or misuse the money given to them by the South African
peoples.
The committee must address those problems as a matter of
urgency. Let me end by saying that it is ... we support the
Vote. Thank you, Acting House Chair. [Time expired.]
Mr M G E HENDRICKS: Thank you very much, hon Acting House
Chair. Hon Acting House Chair, rural villages are always
lacking with the advancement ... [Inaudible.] water,
employment, house services and lately communications and
digital technology. Deputy Minister acknowledged that the
first resistance fighters against apartheid and for our
freedom came from former Transkei and even mentioned Walter
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Sisulu. Therefore, the first resistance fighters came from
Transkei that led to our liberation, but they are the last to
receive in this case ... [Inaudible.] Hon acting House Chair,
we will not make any progress as the Deputy Minister said that
there is no spot ... [Inaudible.] there has to be shortcut to
make up for the long delays that we have ... [Inaudible.] they
need data.
President Ramaphosa talks about the right to data not access
to data, the right to data. Therefore, let us hear that one
gig of data will be given especially to the people in the
rural villages ... [Inaudible.] only speak about Independent
Communications Authority of South Africa, Icasa. There are
many government programmes that are not communicated to the
people because this department has failed the nation.
Constituency offices are based in the heart of communities and
easily accessible. These constituency offices describe as
bringing Parliament to the people should be used by government
and Icasa to inform people and that should be part of their
licence conditions when they issue licenses to community radio
stations.
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Hon Acting House Chair, we heard this morning in a portfolio
committee that when it came to fibre Telkom and the other two
for five years oppressed those below ... [Inaudible.] they
wanted to enter the field. We are as Al Jama-ah very worried
that the same will now happen that the spectrum has been
allocated and they were undermined the small businesses, the
micro-businesses, the township businesses and when you lay a
complaint with the Speaker like they did now, they give you
millions in compensation. We don’t want compensation for small
businesses, we want empowerment. Thank you very much, hon
Acting House Chair.
Mr M S MALATSI: Hon House Chairperson, the efficiency of the
Department of Communications and Digital Technologies and its
multiple state-owned entities, SOEs have been hit the hardest
by the frequency of cabinet reshuffles and musical chairs at
the various boards. From the disastrous tenures of Nomvula
Mokonyane and Siyabonga Cwele to the prima donna days of
Minister Stella Ndabeni-Abrahams, the department and its
entities were the biggest victims of political interference
and abuse of state resources which almost collapsed them.
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The department’s budget for the current Medium-Term
Expenditure Framework, MTEF stands at R7,7 billion with
R5,4 billion dedicated to transfers to entities under its
portfolio. Given the scale of the lofty ambitions that the
department and its respective entities have, there is a
glaring mismatch between the budget and set targets. This
makes it even more pressing for the department to spend
wisely, to align its plans to the economic reality it faces
and for the political principals to lead by example in
upholding the highest level of financial probity.
Yet the amount of monies spent by the Ministry on items such
as travel, catering, and accommodation are an exhibition of
disregard for any financial prudence. This Ministry ranks
amongst one of the biggest spenders in the Cabinet on travel,
catering and accommodation. The total amount spent by the
offices of the Minister and Deputy Minister between May 2019
and March 2022 is almost quarter of a million, R248 309 86 on
catering. Deputy Minister, it is not sensationalized
reporting. These are figures that are contained in a reply to
parliamentary Question 846 which the department replied to.
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While officials in the department spent almost double that
amount by squandering approximately half a million, R490 672
85 on the catering for the same period under review. This
excessive wastage of public funds is even more worrying when
one reviews both the Ministry and department’s expenditure on
accommodation for the same period. The Minister’s expenditure
on accommodation amounted to R3,6 million while the Deputy
Minister’s expenses stood at just over R1 million
In comparison, accommodation expenses for officials in the
department in the same period were R10,7 million. These
exorbitant amounts are difficult to justify given that a large
portion of them were incurred during the Covid-19 pandemic
when most of the country was working from home. We understand
that the work of the Executive often requires spending a
number of days away from their official residences. However,
political principals must be more mindful that state resources
are not a ticket to endless junkets.
At a time when Treasury has been preaching the urgency of the
gospel of upholding austerity measures in government and when
everyone in society is tightening their belts to adjust to the
ever rising costs of living, there is no justification
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whatsoever for any Minister to be incurring millions on
catering and accommodation.
Hon Minister, please liaise with your Social Development
counterpart to reverse the senseless decision by the SA Post
Office, Sapo to no longer pay the R350 Social Relief of
Distress Grant, SRD at its branches. If you claim to have so
much unbridled confidence in the turnaround strategy of the SA
Post Office, then lead the charge in reinstating the payment
of the SRD grants immediately.
The insistence by the Post Office that its decision to stop
paying the social relief grant at its branches will help
alleviate long queues is an amateurish spin to gaslight poor
South Africans as the primary source of the entity’s gross
inefficiency. The long queues at Post Office branches are the
legacy of chronic inefficiency, shortage of staff, closure of
more offices and obsolete technological infrastructure and not
because of the beneficiaries of the social relief grants. The
hard truth is that the South Africa Post Office was broken by
the ANC-led government. And today we are asked to entertain
some fables about the turn-around strategy that will
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reposition the Post Office as a modern and profitable postal
and courier services.
From having one of widest footprints of service delivery in
the country with fully functional branches in some of the most
remote areas in the country, Post Office branches are
evaporating daily. A total of 248 Post Offices branches were
closed down between Jan 2018 and March 2022, thereby further
pushing poor South Africans into far-away branches outside
their communities to access their grants. The Post Office has
become one of the easiest targets of corruption cartels
operating in our country.
Since May 2020 when the Post office started paying the Social
Relief Grant, a total of 1 131 burglaries, 631 armed robberies
and 103 cases of vandalism occurred at Post Office branches
through the country. While there is no doubt a sizeable number
of honest and hardworking individuals working to serve the
public good at the Post office, far too many of its employees
are colluding with criminals to loot it to ground.
Few things illustrate this as vividly as the high number of
disciplinary cases against Post Office staff ranging from
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theft of grant monies to fraud. A total of 314 Post Office
employees have been suspended with pay at a cost of
R41 million in salaries since the 2020/21 financial year.
House chairperson, one of the largest contributors of
widespread corruption within the public service is that the
ANC, as a major beneficiary of state corruption, enables the
theft and misuse of public funds with its nonchalant attitude
towards its political leaders implicated in corruption.
The SABC’s strategic importance in society has previously been
hampered by squabbles between board members, infighting by
senior executives and tensions between Minister and the board.
While the current SABC board and management are making
relative operational progress in repositioning the public
broadcaster, the handling of the suspension and ultimate
dismissal of the former Head of News, Phathiswa Magopeni will
remain an indelible stain that will forever taint their term
of office.
We have one message to the SABC, please pursue and protect
your journalistic independence at all times. The public
broadcaster must resist all the undue pressure from the
executive to reduce it into becoming a glorified
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communications agency for the government. We are all aware
that this administration has an insatiable appetite to exert
its unholy grip on how the media reports on its service
delivery failures.
We congratulate the incoming Head of News, Moshoeshoe Monare
for his appointment and hope that he will uphold the
journalistic values that will enhance the SABC as the public
broadcaster that we can all be proud of. The fair and
consistent coverage of all political parties must not just be
the exception during elections. It must be a consistent norm
throughout whether or not there is an election.
Hon Minister, in your speech during the debate on state of the
nation address on February 2022, you exuberantly announced
that an allocation of 10GIG basic data would be made available
to every household. Yet, in a reply to a parliamentary
Question 431, you confessed without any specific irony that a
specific feasibility study relating to the latest 10GIG
programme has not been undertaken. Perhaps, this illustrates
perfectly the irony of this government. Huge on ever promising
and very low on delivery. I thank you, hon House Chairperson.
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Mr T T GUMBU: House Chair, hon members, Minister and the
Deputy Minister, fellow South Africans, the ANC has as far
back as 1969 at the consultative conference in the city of
Morogoro in Tanzania, affirmed that South Africa would have a
mixed economy. A mixed economy comprises a balance between the
private sector and public sector ownership of the productive
sectors of the economy.
In this regard, the developmental agenda of the ANC government
must be enhanced through state-owned entities, SOEs, in order
to ensure a dedicated, focused capacity of the state to
deliver effectively and efficiently. The ANC believes that
SOEs must be channelled towards the implementation of the
objectives of the democratic state. In his 2022 state of the
nation address, President Cyril Matamela Ramaphosa implored
all of us to work together to address the challenges of
poverty, unemployment and inequality that blight our society
today. One of the ways we ought to do that is by restoring
trust and pride in our public institutions and developing them
to be self-sustainable as they execute their respective key
roles in the state. The government plays a critical role as a
shareholder and the executive authority. The ANC government is
always concerned with the agenda of the SOEs, their mandate
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and functionality. The challenge of weak leadership in both
executive and non-executive board members in the past was
persistent and undermined the critical roles of SOEs. Coupled
with this, the allegations of corruption in the SOEs have
posed a challenge. All of these challenges have been dealt
with and are in the process of being resolved.
Some political parties here in this House would like to give
an impression that nothing has been done by the ANC government
with regard to resolving the challenges faced by our SOEs.
Today I will tell you a story of how our government has worked
hard to improve the governance of SOEs and turned them around
so that they fulfil their development mandates. I want to
remind South Africans that it was the ANC members working with
members of other parties who led the Parliamentary Inquiry
into the SA Broadcasting Corporation, SABC, Eskom and the
Passenger Rail Agency of South Africa, Prasa, to mention a
few, and we have also supported the work of the Zondo
Commission, the Special Investigating Unit, SIU, and various
forensic investigations. It is essential that corruption be
uprooted in all our SOEs. The legislatures in their oversight
must pay attention to the Auditor-General's report on
corruption and make the necessary follow-ups. The government
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has embarked on a thorough assessment of the entities under
this portfolio, to this effect, Broadband Infraco, BBI, and
Sentech have been merged. The State Information Technology
Agency, Sita, SABC, the SA Post Office, Sapo, and the Film and
Publications Board, FPB, are in the process of being
repositioned and repurposed. This is to ensure that their
mandates are in alignment with the developmental objectives of
the state for enhanced service delivery to our people.
The budget as a policy implementation tool plays a critical
role in this realisation. While the SABC has raised its
concerns in relation to the risk posed by the unfunded public
mandate on its financial sustainability and the concerns
around the declining audiences. The ANC commends the public
broadcaster for achieving 96% of its turnaround strategy
targets, and we also welcome the initiatives that the
broadcaster will be taking as a means to explore other revenue
opportunities through the introduction of its official
streaming and satellite services and seek to increase the
revenue generated from advertising.
We believe that Members of Parliament, as well as the
executive and the department, have an important role to play
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in ensuring that the corporation becomes self-sustainable. We
look forward to seeing increased revenue from sponsorship,
advertising, TV licenses, and the new over-the-top, OTT
platform. The work comes with the move of the SABC to launch
its own OTT platform which is expected in the second quarter
of the financial year 2022-2023. Revenue from the OTT platform
is expected to amount to R88 million for the 2023-2024
financial year. The OTT will total R471 million over the
Medium-Term Expenditure Framework. This is something to look
forward to.
South Africa’s broadcasting digital migration project is long
overdue. In 2006, South Africa and other countries in Europe,
the Middle East and Africa committed to meeting an
International Telecommunication Union deadline to switch over
to digital territorial television broadcasting by 2015. It is
imperative that we support the work of the department to
achieve a complete analogue switch off. This is important
because it will release the high-demand spectrum, which can be
used for the socioeconomic development of our country, as well
as bridge the digital divide that exists. The ANC, therefore,
supports the once-off allocation of R1,1 billion to achieve
this objective. It is indisputable that the SA Post Office
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plays a vital role in the lives of many South Africans. Not
only do we rely on it for our mail and postal services, but
the vast majority of our people are dependent on it to receive
their social grants. The post office has a footprint of 1 979
points across the country. The ANC supports the implementation
of the Post Office of Tomorrow Strategy for the realisation of
a renewed, modern and sustainable post office that is
technology-driven and has the support of strategic
partnerships in order to address the core challenges it faces.
Over the medium-term, the SA Post Office has been allocated
R1,6 billion for funding its public service mandate. While we
welcome this allocation, we are also alive to the reality that
Sapo is currently in a financial crisis. We call on the
National Treasury to seek innovative solutions to support our
post office. Equally, we would also like to call upon all
South Africans to take pride and protect their public
infrastructure. The vandalism and the robberies taking place
in some of our post office branches undermine directly the
results of our democratic gains. While we believe the Post
Office of Tomorrow Strategy provides a glimmer of hope to turn
the tide, we also understand the fact that, in its current
form, the post office was unable to adequately service the
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millions of Social Relief of Distress, SRD, or R350
beneficiaries. The ANC supports the other means of
disbursement they made available to ease the delivery of the
R350 grants to the post office, and we are of the view that
the proposed solution will be beneficial to everyone as is it
provides more options for our people to receive their money
from either Pick and Pay, Boxer, Shoprite, Checkers or Usave.
We further support that the SA Post Office commits to continue
to dispense the old age disability and the children’s grants.
In its 54th national conference, the ANC resolved that a state
bank shall be established in order to promote economic
development. The ANC also resolved that the Postbank should be
registered as a bank with the understanding that state banks
tend to give greater emphasis on employment creation,
empowerment, industrial diversification and development, small
businesses and co-operatives, small-scale agriculture,
microenterprises and local and regional economic development.
This would all be geared to the betterment of the lives of our
people. The ANC welcomes that the banking license for the post
office is in its final stages, and is now pending the
finalisation of the amendments to the Postbank Act. The
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ultimate passing of the Postbank Amendment Act will enable the
registration of the banking controlling company with the SA
Reserve Bank, and this is the final stage in the banking
license application process. The ANC supports Budget Vote 30 –
Communications.
Tshivenda: 18:28
Ndi a livhuwa. [I thank you]
English:
Chairperson.
The MINISTER OF COMMUNICATIONS AND DIGITAL TECHNOLOGIES: Thank
you, hon House Chair. Let me start with the hon members of the
DA. Indeed, listening for understanding is not common to all
of us, and I am thankful that the committee is chaired by the
ANC who understand the legal principles of sub judice on
matters that deal with the court. I know that the majority or
cowards hide behind the general because the facts will not
support their hallucinations. We will await some members to
remove their heads from the clouds and come back to mother
earth and deal with the realities of our time.
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Hon Singh, we continue to work on our performance management
system and consequence management system, you will start to
see improvements on that – not only on the department but
across the entities. We want to thank hon members, except the
EFF for supporting resoundingly, the conclusion of the digital
migration programme that must be concluded with no further
delay. I hope those who have the powers to adjudicate on the
matter will also be listening. Indeed, hon Molala and hon
Maneli, we need to build capacity within the state and sector
education and training authority, Seta, to introduce new
technologies and emerging technologies. I am glad to report
that last year South Africa spearheaded the Artificial
Intelligence Blueprint for Africa through the Smart Africa
Alliance with contributions of academia, research institutions
and leading players.
This financial year we will launch the SA Artificial
Intelligence Hub in partnerships with academic institutions
and industry players. It is my honour to announce that the
catalytic projects of this SA Artificial Intelligence Hub will
include some of the applications that are registered on the
DigiTech platform, that I spoke about earlier. This work is
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part of department’s implementation of the recommendations of
the Presidential Commission on Fourth Industrial Revolution.
Hon Gumbu, we are glad that you raised the matter of the
Postbank. The success of the Postbank is to an extent
dependent on the viability of the SA Post Office, SAPO. The
Deputy Minister will detail the work we are undertaking to
implement the strategy for the Post Office of tomorrow and the
small achievements we are starting to register although the
road ahead remains challenging.
Access to funding is a major contributor to participation in
economic activities. During the COVID-19 pandemic, South
Africans witnessed the reluctance of the commercial banks to
assist the poor and marginalised, both businesses and
individuals, to financially recover despite government
guarantees. In addition, banks including in South Africa have
played a catalytic role in the adoption of technology.
The Postbank as a state bank can therefore play a significant
role drive adoption of technology but also to extend banking
services in the terms that promote inclusion and banking for
all South Africans. We are working in a determined manner to
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ensure that the corporatisation of the Postbank is concluded
within the current financial year. However, to achieve this,
we will require the assistance of Parliament to prioritise the
finalisation of the Postbank Amendment Bill that is already
submitted for consideration.
In addition, we are working with the relevant authorities to
complete the appointment of the full complement of the
Postbank board in line with applicable Rules. We will also
complete the strategy and implementation plan for the Postbank
as a state bank. We are aware of the challenges of system
weaknesses facing the Postbank and are working with the board
to resolve them including holding those liable accountable. We
must appreciate the support of the Minister of Finance on the
work we are doing to ensure successful corporatisation of the
Postbank.
As I conclude, the work we do is not for us, it is an
investment for future generations. Therefore, we cannot aim
low, no matter how daunting the tasks and how big the
obstacles. The tasks at hand and those that lie ahead demands
that we remain resolute, focused, and intentional. We have the
calibre of people both in the department, our entities and
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sector emerge victorious on the other side. In any case, we
were raised to know that ...
Tshivenda:
... muntshimbidza vhusiku, ndi mutenda lotsha!
Sepedi:
Montshepet?a bosego ke mo leboga bosele!
Xitsonga:
Munhu u fambaka na yena vusiku u nwi Khensa rixile.
English:
We will act well our part!
Tshivenda:
Ro livhuwa.
Debate concluded.
The mini-plenary session rose at 18:32.
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