Hansard: NA: Unrevised hansard
House: National Assembly
Date of Meeting: 06 Sep 2022
Summary
No summary available.
Minutes
UNREVISED HANSARD
NATIONAL ASSEMBLY
TUESDAY, 6 SEPTEMBER 2022
PROCEEDINGS OF THE NATIONAL ASSEMBLY
Watch: Plenary
The House met at 14:00.
The House Chairperson Mr C T Frolick took the Chair and requested members to observe a moment of silence for prayer or meditation.
CONSIDERATION OF REQUEST FOR APPROVAL BY PARLIAMENT OF MULTILATERAL CONVENTION TO IMPLEMENT TAX TREATY RELATED MEASURES TO PREVENT BASE EROSION AND PROFIT SHIFTING IN TERMS OF SECTION 231(2) OF THE CONSTITUTION, 1996
Mr M J MASWANGANYI: Chairperson, Ministers, hon members, after the 2008 world financial crisis the G20 Ministers of Finance agreed to a framework to address the issue of tax havens and how to get multinational enterprises to pay more tax in the countries in which they earn their profits, which led to the birth of the Base Erosion and Profit Shifting, BEPS, project.
On 5th October 2015 the Organisation for Economic Co-operation and Development, OECD, presented the final package of the BEPS measures, G20 BEPS package, which was endorsed by the G20 Finance Ministers during a meeting on the 8th of October 2015 and by G20 Heads of States in November 2015.
South Africa is not the member of the OECD but is one of the member countries of the inclusive framework on BEPS.
The BEPS Multilateral Instrument, MLI, is aimed at updating the existing network of bilateral tax treaties; more than 3 000 tax treaties worldwide apply in this regard, to reduce the opportunities for tax avoidance and base erosion by multinational enterprises.
The BEPS MLI will be applied along existing tax treaties. South Africa has 79 bilateral tax treaties in force with two more awaiting ratification in the partner countries.
One of the measures adopted by the inclusive framework for the monitoring of the implementation of the OECD G20 BEPS package is the peer review process.
The implementation of this action six report is dependent upon inclusive framework member countries, having ratified and implemented the BEPS MLI or renegotiating their treaties in accordance with its principle.
Based on the fact that South Africa has not yet ratified and implemented the BEPS MLI, this imply that South Africa has already a negative point in the action six peer review.
Therefore, the ratification of this BEPS MLI is important for South Africa, so as to keep South Africa compliant with the OECD G20 BEPS minimum standards and address BEPS in South Africa.
After ratification, the instrument or notification of the ratification will be deposted with the OECD.
The Standing Committee of Finance, having considered the request for approval by Parliament on the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting, recommends that the House, in terms of section 231(2) of the Constitution, approve the said multilateral convention. Ndza nkhensa, Mutshamaxitulu. [Thank you, Chairperson.]
Declarations of vote:
Dr D T GEORGE: Chairperson, after 2008 global financial crisis, attention was focused on the issue of tax savings and how to get multinational entities to pay more tax in the countries in which they earn their profits.
G20 Ministers of Finance agreed a framework and this led to the Organization for Economic Co-operation and Development, OECD, endorsing a package of measures under the Base Erosion and Profit Shifting project in 2015.
South Africa is a member of the G2 but not of the OECD, although we participate on various OECD bodies.
The Base Erosion and Profit Shifting project consist of 137 countries that collaborate on implementation of the package. The framework assists in developing standards for the implementation review and monitoring of measures. There are 15 action items, and although South Africa signed it in 2017, it is not yet ratified.
In the global financial arena, it is vital for South Africa to adhere to good practices that enable us to compete with countries in other jurisdictions.
There was a time when South Africa enjoyed the admiration of its peers because the SA Revenue Services, Sars, was amongst the best in the world and our financial sector was well-ahead in technological developments and capacity.
Sars almost collapsed under the ANC’s state capture programme and lost its standing amongst the world’s best tax collection services. Although there has been steady progress in resolving this problem and restoring Sars to its former standard, the reputational damage will take a long time to resolve.
That is why the looming grey-listing of South Africa by the Financial Action Task Force, FATF, requires urgent and immediate attention.
In October last year the FATF published an evaluation of the measures in placing South Africa to counter money laundering, terrorist financing and illicit cash flows.
In June Treasury stated that the South African authorities had lagged behind on fighting financial crimes and that our anti- money laundering systems were well behind international standards. This is not an easy problem to fix, although a number of laws are in the process of being amended to up our game. It is highly unlikely that we will be able to satisfy the FATF by the October deadline that South Africa has addressed all the weak spots. Although the amended laws may be in place by then, the FATF will likely want to see improvements in the actual behaviour that the laws are intended to remedy.
No matter what laws in place, if law enforcement is unable or unwilling to act against the perpetrators of these crimes, South Africa will face the dire consequences. It is, therefore, essential that this problem is not only addressed by the National Treasury, but also by the Security Cluster.
The consequences of the grey-listing are not fully understood and is, therefore, difficult to predict what might happen, a difficult to take the best action under potentially dire circumstances.
Should South Africa be grey-listed, we won’t merely appear on a list alongside amongst others Albania, Mali, South Sudan, Syria and Yemen. Regulators in other jurisdictions may restrict their banks from transacting with South African counterparts.
If our major trading partners such as the United States of America, USA, United Kingdom, UK, European Union, EU, and Japan take action, this will have a significantly detrimental impact on our already teetering economy.
A recent survey found that 81% of South Africans are cutting down on daily meals due to high food prices and 41% say they can’t feed their families. This is a direct consequence of the ongoing mismanagement of our public finances, unworkable economic policy and slow responses to international obligations.
Noncompliance with international financial regulation is the result of government failure and doesn’t happen by accident, it happens when a government doesn’t care about the wellbeing of the people and where accountability has failed. Government must not forget that when local accountability fails, the
hurdle of international accountability remains and no amount of political interference is going to undo the consequences.
The treaty before us today is aimed at updating the existing network of bilateral tax treaties, to reduce opportunity for tax avoidance and base erosion by multinational entities and will be applied alongside existing tax treaties, and we support its ratification. Thank you, Chairperson. [Applause.]
Ms O M C MOATWE: House Chair, the multilateral convention to implement tax treaty-related measures to prevent base erosion and profit shifting is a misguided approach to the problem we as a country and the continent.
The only way we will begin to address base erosion and profit shifting, which form part of illicit financial flows, is to have correct legislation before there’s any attempt to enter into treaties.
Base erosion and profit shifting is an institutionalised stealing of resources that should be directed towards addressing the infrastructure backlog in housing and roads, paying for education, health and also increasing social grants.
If we do not address legislative loopholes and explore more radical measures such as the Sixth method for the mining sectors, for example, South Africa will continue to suffer the scourge of base erosion and profit shifting.
The EFF made clear practical and implementable recommendations to deal with base erosion and profit shifting. We must make it a law that mineral resources do not leave the country in their raw state, we must begin to see beneficiation of chrome, platinum and other minerals on an industrial scale.
We must make it compulsory for multinationals in all sectors including finance, manufacturing and telecommunications to procure services such as marketing, consulting and finance from local companies to prevent the use of shelf companies in tax havens.
We must make it a law that all multinational companies that have the majority of the operations in South Africa must strictly have bank accounts in South Africa and anyone who has a bank account in Seychelles, Mauritius, Malta and others must declare all the transactions on the annual filing with the Companies and Intellectual Property Commission, CIPC. This is the only way we’ll begin to fight base erosion and profit shifting. I thank you, Chair.
Inkosi E M BUTHELEZI: Thank you for the opportunity, hon Chair. Governments around the world, including South Africa, are losing revenue due to tax avoidance. According to the Organisation for Economic Co-operation and Development, OECD, the annual cost of lost revenue from base erosion and profit shifting, Beps, is estimated to be between US$100 billion to US$240 billion. The International Monetary Fund estimates this number to be higher at US$600 billion. These estimates are said to be as much as four times more than Africa receives in foreign development aid.
Gaps in the system need to be breached so that unscrupulous
... [Inaudible.] ... multinational companies do not undermine taxpayer compliance. South Africa’s economy cannot afford such weaknesses within the system. We need to act swiftly to effectively address such weaknesses, as the money we are
losing can contribute greatly towards addressing the socioeconomic challenges we face as a growing economy.
South Africa signed the Multilateral Convention to implement tax treaty related matters to prevent Beps in 2017 but it has not yet been ratified. The instrument of ratification has not been ... [Inaudible.] ... into the OECD. Therefore, the instrument is not yet in force. It is for this reason that the IFP supports the ratification of this treaty.
However, as the IFP we feel that we need to say that before we look beyond our borders we need to start at home. As South Africans, we see tax erosion and profit shifting happening within our own borders and people in positions of trust and
... [Inaudible.] ... authorities have been found wanting in this regard. We need to get our own house in order if we are to have any hope of growing our economy for the benefit of our people. The IFP supports the report.
Mr W W WESSELS: Thank you, House Chairperson. Corporate tax havens offer Beps tools to shift profits to the havens and additional Beps tools to avoid paying taxes within the havens.
The Beps activities cost nations an estimated ... between US$100 billion and US$240 billion in lost revenue each year, which is about 4% to 10% of worldwide corporate income tax collection. It is thus an important treaty and as we are a signatory, it is important to ratify such. Thus, the FF Plus supports.
Mr S N SWART: Thank you, House Chair. The ACDP supports this request for approval by Parliament on the Multilateral Convention to implement the tax treaty related measures to prevent Beps.
Now this landmark agreement, which was agreed to in 2021 by some 136 countries in jurisdictions representing almost 90% of global gross domestic product, GDP, is estimated to reallocate more than US$125 billion of profits from around 100 of the world’s largest and most profitable multinational enterprises to countries worldwide, and ensure that these firms pay a fairer share of tax wherever they operate and generate profits. Now clearly, this the ACDP supports as it is in the best interest of South Africa.
However, it must also be read with bilateral agreements that countries such as South Africa, which has 79 such bilateral treaties, have entered into. What is important is that developing countries which were members of the inclusive framework. have on an equal footing, played an active role in the negotiations leading to this convention and agreement, and the two-pillar solution contains a number of features to ensure that the concerns of low capacity countries are addressed.
Now, the OECD will ensure that rules can effectively and efficiently be administered, and also offer comprehensive capacity-building support to countries which need it, and although South Africa is not a member of the OECD, as part of the inclusive framework we will derive the benefit. It is for that reason that the ACDP supports this treaty.
Mr B N HERRON: House Chair, we support the request. Thank you.
Mr S M JAFTA: Thank you, hon Chair. In approving the Multilateral Convention to implement tax treaty related measures to prevent Beps, South Africa will be joining a list of jurisdictions such as China, as well as countries in
Europe, including the UK and Switzerland, and also New Zealand, which approved the convention as early as 2019. Some African countries such as Lesotho, Gabon, Kenya and Namibia have also approved the convention.
The convention’s preamble states, “Recognising that governments lose substantial corporate tax revenue because of aggressive international tax ...” and “that base erosion and profit shifting is a pressing issue not only for industrialised countries but also for emerging economies and developing countries.”
I just wish to remind the House that on 7 June 2017, South Africa signed the Multilateral Convention. What is needed now, in terms of section 231(2) of the Constitution, is for both the National Assembly and the National Council of Provinces to approve the convention. This House must also not lose sight of the effects of Beps on our economy and to the African continent. In a joint statement on the fight against illicit financial flows, the OECD’s secretary-general Angel Gurria and President Mbeki, who represented the high level panel on illicit financial flows from Africa, concluded that:
There is an urgent need for the international community to come together, as money laundering, tax evasion and international bribery, which form the bulk of illicit financial flows, affect all countries.
We cannot successfully deal with base erosion and profit shifting if we do not tackle the role of “professional enablers” in creating illicit off-shore accounts and shell companies” such as lawyers, accountants, financial institutions, corporate and trust service providers” that play a significant role in “maintaining a shroud of secrecy over illicit activities such as tax evasion, money laundering and corruption.”
In closing, we wish to appeal to this House that, upon approving the Multilateral Convention, to look into the modality of creating a Beps interagency as a financial intelligence unit, which will work alongside ... over financial control institutions such as the Financial Intelligence Centre, FIC. We support the request.
Mr M NYHONTSO: Chair, there is no declaration from the PAC.
Mr M G E HENDRICKS: Thank you very much, hon House Chair. Profit shifting by captains of industry and white monopoly capital robs the poor people of efficient water supply, robs them of proper housing, and robs them of access to electricity and all the basic needs of life. In fact, if a careful calculation is made, that money if recovered, is double the amount that the Zondo Commission identified which the fiscus lost.
So, we are very happy that the first steps are now being taken to reduce profit shifting, which is so sophisticated because it was developed during the harshest days of apartheid and it accelerated just before 1994. It will take 100 years to fix profit shifting but this is a good start. We support the report.
Ms E D PETERS: Thank you very much, hon House Chair and hon members. The Multilateral Convention, which will usher in tax related measures to prevent Beps, is a matter that the ANC and government has long campaigned for. The measures introduced by the tax treaty are both necessary and a reflection that the
system and dominance of the financialisation of the global economy requires strict regulatory measures to deal with the inherently corrupt practices that, through evidence, we find within the system.
Our former President Thabo Mbeki, as part of a research programme on the African continent, blew open the level and extent of how much Africa as a continent loses on an annual basis to base erosion and illicit profit shifting. These neocolonial economic practices have become embedded in our system and we welcome the fact that there is an integrated effort by the National Treasury, the SA Revenue Service and the FIC to expose these corrupt practices.
We would disagree with the explanation that, because of the self-induced 2008 world financial crisis, G20 Ministers of Finance agreed to a framework to address the issue of tax havens and how to get multinational enterprises, MNEs, to pay more tax in the countries in which they earned their profits. This practice was exposed decades before this by the ANC, progressive bodies and research institutions. Progressive bodies globally, many of whom have been aligned to the Nonaligned Movement, long before 2008 argued without support from the G7 or G20 that multinationals were shifting funds
from high to low tax jurisdictions, manipulating the invoicing system and shifting money to tax havens.
The Beps project, a global formation, was a very late initiative to practices that had been going on for decades and which are most acutely felt in Africa. To illustrate this, it was only in 2015 that the OECD presented a final package of Beps’ measures, which were endorsed by the G20 Finance Ministers and heads of state.
Clearly, the OECD have been sleeping on the job when the very member states of the OECD have companies within their geographical jurisdictions that have been operating systems of Beps. That exchange of information was exposed, even though banks themselves proved to be the greatest obstacle to information because of their bank secrecy laws. The Beps project therefore is a welcome part of the ongoing campaign to deal with Beps.
Importantly, we are one of the main member countries of an inclusive framework on Beps, consisting of more than
130 countries, of which only 23 are African. This has got to be a huge concern that the AU needs to address, and our Chief
Whip and all parliamentarians who serve on substructures of the AU and parliamentary structures on the continent, need to raise this. Chief Whip, the Pan-African Parliament, which has just ended, equally needs to address the low level of uptake by African countries which are severely affected by Beps. We are all aware of the African tax administrative reform but this does not address what the inclusive framework is dealing with.
Today, we need to ratify what arises from the report on action, which provided for the development of a multilateral instrument, MLI, capable of swiftly implementing the Beps’ treaty related measures and amending the existing tax treaties.
Of concern to all those who have been engaged in fighting Beps, is the fact that in 2017 South Africa signed the Beps multilateral instrument. However, it was not enforced as South Africa had not ratified it, and deposited the instrument of ratification with the OECD. Over the past five years since signing, more revenue loss to the country has occurred as we had not ratified the instrument. This really needs to be a wake-up call for both the executive and the legislature that,
whilst due consideration has been taken of the implications on domestic legislation and regulations by national agreements and of course constitutional consideration before an instrument can enter into force, does it really have to take five years to ratify an instrument that can assist?
It is the multinational enterprises that must remain our targets, as some of their practices are the most corrosive and it is common cause that they are the ones that budget for penalties in anticipation of being caught.
In conclusion, our ratification of the Multilateral Convention today is another brick in a process that the ANC in the Finance Committee in 2015 initiated in response to financial practices in our economy which are imbedded with corrupt practices and manipulation of the regulatory environment. It is with this process that the ANC in the Finance Committee led in examining the broader illegal forms of profit shifting, weakening our tax and revenue base and denying the necessary resources to fully finance the economic policies of the governing body. The ANC supports the ratification of the convention.
Question put.
Multilateral Convention to implement tax treaty related measures to prevent base erosion and profit shifting approved (Economic Freedom Fighters dissenting).
CONSIDERATION OF REPORT OF STANDING COMMITTEE ON FINANCE - OVERSIGHT VISIT TO FINANCIAL AND FISCAL COMMISSION (FFC)
Mr M J MASWANGANYI: Chairperson, the Standing Committee on Finance undertook an oversight visit to the Financial and Fiscal Commission, FFC, on 22 April 2020 in Gauteng. The main purpose of the visit to the FFC was to get a briefing on their annual performance plan, audit findings and action plan, and to meet staff and union representatives to discuss labour related issues.
The FFC is a very important constitutional institution which plays an important role in strengthening constitutional democracy. Its role includes advising government, Parliament and provincial legislatures on fiscal issues. Its mandate is to make recommendations on equitable shares and allocations of
revenue, government guarantees, provisional taxes, municipal fiscal powers and functions, provincial loans and municipal loans.
The FFC is understaffed. Of the total staff complement of 37 employees, there are seven full-time researchers, including the head of research and 11 research interns. However, the FFC has a 20% vacancy rate. The board and the management have assured the committee that they will fill the vacant positions as they have developed a recruitment plan, with special focus on the research division.
The committee is concerned with the high turnover at managerial level. The current CEO is suspended. In the past seven years, there has been seven CFOs and four CEOs, including in an acting capacity. The FFC should stabilise governance and management in order to improve its constitutional mandate.
Slower spending during the financial year has accumulated to an underspending of R11,5 million in the budget or accumulated
surplus of R12,4 million for the financial year. The FFC struggles repeatedly on compliance with legislation. The prevalent instances are in areas of supply chain management due to ineffective audit action plans and inadequate consequence management.
Some examples are the misidentification of root causes on the accountability chain. For an example, program, rules and responsibilities, et cetera, and the misinterpretation of risks and audit opinions.
Over the past few years, the FFC has received concerning audit outcomes which the Auditor-General has said are caused by leadership instability, failure of management to monitor compliance with the PFMA and Treasury regulations, in adequate implementation of the audit action plans and failure to implement proper controls in order to ensure that annual financial statements were accurate.
In conclusion, the committee is concerned that the recommendations made by the FFC during the Budget processes
are sometimes reportedly not considered by National Treasury. The committee emphasised that the independence of FFC should be upheld and be respected. Co-operation between National Treasury and FFC should be strengthened. The National Treasury should incorporate the inputs of the FFC in compiling their Budget. I move for the adoption of the Report.
Xitsonga:
Ndza khensa. [Thank you.] Inkomu. [Thank you.]
Declarations of Vote:
Dr D T GEORGE: Chairperson, the Financial and Fiscal Commission is meant to be an independent and impartial advisory institution that government must consult on the division of revenue, in particular. It was established by the Constitution and submits its recommendations before the Minister of Finance tables the Budget in Parliament in February. The commission is only relevant if its recommendations are properly taken into account by the Minister of Finance.
Our country’s public finances have been grossly mismanaged by an incapable government, desperately trying to implement a developmental state model that requires a capable state that we do not have. This is clearly evidenced in the never-ending fruitless and wasteful expenditure that costs taxpayers billions of rands every year, bottomless bailouts and guarantees to hopelessly bankrupt state-owned enterprises, to fund the political patronage - that is cadre deployment.
The act of theft of the people’s money through corrupt tenders and crony consultancy contracts and the trillions of rands borrowed without any impact on our economic growth. All of this fraud and mismanagement, directly impacts on the work of the Fiscal and Financial Commission because it shrinks the pot of money available for division of revenue. The commission exists to advise government and should be a valuable resource in ensuring the people’s money is optimally spent.
It is regrettable then that the National Treasury has chosen to narrowly categorise the recommendations that the commission makes, to restrict the advice to what is considered to be
directly related to the division of revenue. Increasing poverty and unemployment is a direct consequence of the inability of government to properly manage our public finances in the high tax rate drain, disposable income households and the most vulnerable or deprived of the basic service delivery that government was elected to deliver.
Although various Finance Ministers have mentioned zero-based budgeting, there has been no progress. What happens in practice is that debt repayments and guarantees are provided for first, and then the bloated number of national government
departments are allocated amounts. Usually, the previous year’s allocation adjusted for inflation or notionally
reduced to do lip service to fiscal discipline. Then the provinces are allocated their share based on a formula. That is why an accurate census is required.
There are two clear problems with this Budget approach. Borrowing and guarantees are funded first and there is no incentive to curtail them. Ballooning interest payments result from this and makes the financial envelope available for service delivery shrink smaller and smaller. There is also no incentive for national departments to become more efficient.
Instead, they plead for more money during the Budget debates. This is the business of the commission and their hands should not be tied.
It is concerning that the leadership of the commission appears to be unstable, with several vacancies and senior positions and high turnover. This is likely a consequence of political interference in selection processes and is manifested in the audit outcomes that the commission struggles repeatedly on compliance with legislation, especially on procurement and irregular spending.
According to the National Treasury, South Africa’s monthly Budget balance fell back into a significant deficit of
R121 billion in July, following a R72 billion surplus in June. This is the largest monthly Budget shortfall since July 2021 and much worse than market expectations of an R85 billion shortfall. Our economy contracted by 0,7% in the second quarter of 2022.
The commodities boom is over and we cannot expect any tax windfall. South Africa is fast running out of money in a hostile global environment, with inflation at its highest level in decades and no end in sight of the Russian war on Ukraine that is directly impacted on global food prices.
South African households are struggling to put food on the table while government wastes the people’s money as if it will never run out. Government should never forget that it has no money of its own, that it all belongs to the people and it is the custodian of that money. The commission cannot become yet another failed entity. Active steps must be taken to avoid that from happening. Thank you, Chairperson.
Ms O M C MAOTWE: House Chair, while we did not form part of the delegation that went on oversight to the Financial and Fiscal Commission oversight visit? It is clear that the obsession with the failures of audit plans and recruitment plans to reduce the vacancy rate of 20,8% is shifting the focus to a side matter while there are more important problems.
The reality is that Parliament, over the past years, has failed to consider recommendations of the FFC, including the Standing Committee on Finance. The fact of the matter is that the FFC’s constitutional mandate is to make recommendations on equitable shares and allocations of revenue, municipal fiscal powers and functions, and provincial laws is relegated to a footnote in the process of drafting and passing money Bills.
What is even more shocking, is that despite legislation empowering Parliament and the mandate of the FFC, proposed money Bills are treated as gospel truth despite senseless and reckless Budget cars in social services such as health, education, water, sanitation and housing services.
While we are concerned about the persistence of disregard for supply chain management, the high vacancy rate and high leadership instability at the FFC, the issue we must all be concerned about is how we take the FFC back to what it is mandated to do in terms of the Constitution.
The Standing committee on Finance must review the work of the FFC to fully understand what has been the role of the
FFC and how it has assisted or failed to assist Parliament in changing the Fiscal Framework. If we do not approach the
matter of the FFC differently, the recommendations of the committee will remain just that - recommendations adopted
by the House. I thank you, House Chair.
Inkosi E M BUTHELEZI: Chair, from the outset the IFP wishes to record concerns over the status or the Financial and Fiscal Commission. This commission plays a critical role in our democracy and its integrity cannot be compromised by leadership instability, which must be solved swiftly. As noted in the standing committee’s report during the past seven years, there have been more than seven chief financial officers and four chief executive officers. High staff turnaround creates uncertainty and the situation requires disparate solutions. The IFP agrees with the standing committee’s concern in this regard and we will closely monitor the situation.
Furthermore, it is incomprehensible that, despite the Auditor- General’s clear recommendations, the Financial and Fiscal Commission, FFC finds itself in the same situation year on year. We note it with great concern the failures of the FFC to implement proper controls and adequate implementation of the Auditor-General’s action plan. The situation is dire and it does not appear that the institution appreciates the severity of the circumstances. Institutions like the FFC should set the standard. Proper financial conduct and good governance should be the norm. It is a great concern to the IFP that we see similar challenges across the board, despite having systems in place to provide checks and balances. As the IFP we must ask if this speaks to the problem of personalities rather than the systems.
We believe it is time to look at the calibre of the people who are in charge of the commission, and other such institutions. These are the people that should have absolute integrity and know the knowhow as to how do their work. If leaders or others are found to be involved in corrupt activities, we need to do more than just consequence management. Such people should not be allowed to work in the public service again. They can’t
only get a slap on the wrist and pay a fine. The punishment must fit the crime.
Furthermore, the fact that the FFC apparently terminated all the illegal contracts is not enough. We should ask the question as to how these contracts were entered into in the first place. It is clear that the due process was ignored and the protocols were never adhered to. We therefore need to see the report from the forensic investigation services that were apparently appointed in April 2022. The IFP will also hold the FFC to commit to the commitments rather made following the oversight visit, to ensure consistent compliance with that audit improvement plan. We need to demand accountability and consequence management from the institution. The failure to act on clear recommendations of the Auditor-General must be met with harsh consequences. The IFP supports the report.
Thank you Chair.
Mr S N SWART: House Chair, the ACDP has studied this report and we appreciate that the members of the Finance Committee for an honest this oversight visit to the FFC in April this year, given the challenge ...[Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Swart, can you just hold that please. Can we please just inform the member from the IFP who just made a declaration that he is disturbing the sitting. Can the Whips please communicate with him, from the IFP. Also, may I ask the Table just to disconnect the member while the hon Swart is making his declaration. Please proceed.
Mr S N SWART: Thank you House Chair. The ACDP shares the concerns pointed out by the committee in its report including that, the FFC struggles repeatedly on compliance with legislation, and this is according to the audit outcomes. But the prevalent instances being in the areas of supply chain management, just caused by ineffective audit action plans and inadequate consequence management. Now, this must clearly be addressed and the portfolio committee has indicated that, it will be closely monitoring the audit improvement plans to ensure that they are implemented.
As other speakers have indicated, the FFC sits with the vacancy rate of 20%, which clearly negatively impacts its
ability to perform its constitutional role of advising government, Parliament and provincial legislatures in fiscal issues. What is crucial to remember is that, various financial constitutional provisions, such as relating to the equitable share and allocations of revenue may be enacted only, I quote: “Any recommendation of the FFC has been considered”
Now, the committee highlights the fact that this does not take place in certain instances, and that recommendations made by the FFC during the budget process, are reportedly not considered and even ignored. The ACDP agrees that this is intolerable, and therefore needs to be far greater co- operation between the FFC and the National Treasury.
Finally, the ACDP shares the concerns about leadership instability at the FFC, with the high turnover of seven chief financial officers and four chief executive officers in the past seven years, and the chief executive officer been suspended. This must clearly be addressed to ensure that the FFC is efficient. The ACDP will support this report. I thank you.
Ms M D MABILETSA: Thank you House Chair. [Inaudible] ... interact with the Financial and Fiscal Commission throughout the financial year of their research and recommendations, on a sustainable fiscal and equitable intergovernmental fiscal relations system, we have drawn over the years from the quality of their research and often found agreement on their findings and recommendations. They have argued for an equitable share within the spheres of government with within a system that is characterized by mismatches of both vertical and horizontal imbalances. The struggle has been centred around intergovernmental fiscal transfers, and the matter of equity. Equity for who and how? This is to be found in the actual distribution of revenue.
Notwithstanding its constitutional status, history demonstrates that, many of its recommendations have not been considered and incorporated in a more equitable intergovernmental fiscal relations system. Whilst the objective of the visit may appear to fit in with our oversight responsibility for the ANC, a lot more needs to be done to shift our oversight to enhance oversight. If we had rather adopted a position of measuring through oversight that has
been the impact of the FFC’s recommendations in recent years, this would have provided a different picture. If we have done so, we may not have come away from the visit with the concerns that all parties shared, but rather our prior preparation before visiting the FFC would have told us what to expect.
Many of the recommendations of the FFC in recent years are partially taken into consideration or not at all. If that is the case, why do we expect will happen to the institution?
Certainly one cannot argue that recommendations and advice must just be adopted. Governance requires more than just acting upon these. However, the major impact when an advisory body feels its advice or recommendations are being ignored, is that people will start to move on elsewhere to an area where they believe they can make a difference.
So, the committee raises its concerns about staff turnover, but do a diagnostic analysis and the answer will tell you why it is happening. This is what Parliament needs to debate and get far deeper explanation, especially from the National Treasury. Why advice and recommendations are not in their
opinion suitable under the circumstances, especially since FFC is the creation of the Constitution.
Provinces, local government and SA Local Government Association, Salga have expressed their views exclusively on these matters. Adverse audit outcomes and the high level of staff turnover at the executive level are symptomatic of a bigger problem which oversight must address. Currently, the vacancy rate stands at almost 21% and the chief executive officer is suspended.
Audit opinion with findings roll from one year to the next, and really should tell us that it is not just consequence management when a constitutional body struggles with compliance and legislation. Struggling with supply chain management in an advisory body like FFC, should tell us that we need to ask more and maybe the diagnosis we came back with, is insufficient.
Lack of investigations into supply chain management is not just a problem of not doing it, it reflects something else.
The annual performance plan, and here and we refer to the research programme, must tell us what impact the FFC wants to have on government thinking and decisions, given the quality of research that the FFC has been able to produce year after year. If the annual performance plan, APP does not tell us this, we are merely going through a descriptive exercise of what is going to happen. Impact on decisions of government is what the FFC has as its objective, but the performance plan does not show this. This is why the committee found is largely not happening.
So, why should we be concerned about research which is a core function of FFC, and is linked to the integrity of the advice and recommendation of the FFC, has massively shrunk from 36,7% in 2018-19 and 16,2% in 2020-21. Over the medium term, an average 67,5% of the total expenditure is concentrated on the administration programme. On the total staff compliment of 37, there are only seven fulltime researchers including the head of research, and 11 research interns. Underspending amounts to R11,5 million and the cash balance at the end of the year amounted to R16,2 million. This is in spite of the return in the previous year of surplus to the fiscus of R19,7 million.
The audit finds material noncompliance funding on expenditure management, fruitless and wasteful expenditure, which are primarily driven by irregular expenditure incurred from noncompliance with procurement prescripts. What we discovered in the oversight visit on these matters was indeed deeply disturbing and goes beyond lack of consequence management.
There needs to be a serious briefing on matters. We acknowledge the action that is being taken on the identified areas. The ANC supports the report in so far as the action that is recommended to turn matters around.
IsiXhosa:
UMBHEXESHI OYINTLOKO WEQELA ELILAWULAYO: uLulu ubuyile ...
[Kwahleka.] Enkosi kakhulu Sihlalo weNdlu. Ndiphakamisa ukuba, le ngxelo ithiwe thaca apha mayamkelwe yile ndlu ihloniphekileyo. Enkosi.
Question put.
Motion agreed to (Economic Freedom Fighters dissenting).
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION, SCIENCE AND INNOVATION ON REVISED 2020 - 2025 STRATEGIC PLANS AND 2022-23 ANNUAL PERFORMANCE PLANS OF NATIONAL SKILLS FUND (NSF) AND LOCAL GOVERNMENT SECTOR EDUCATION AND TRAINING AUTHORITY (LGSETA)
Mr B S YABO: Hon House Chair and hon members, I rise to introduce the report of the Portfolio Committee on Science and Innovation on the Consideration of the Revised 2020-25 Strategic Plans and 2022-23 Annual Performance Plans, APPs, of the National Skills Fund, NSF, and the Local Government Sector Education and Training Authority, LGSETA, for adoption by the House.
The committee is mandated to exercise oversight over the budget and strategic priorities of the department and its entities. In line with this mandate, we have considered the revised 2020-25 strategic plans and 2022-23 annual performance plans of the NSF and the Local Government SETA. In the main,
entities had to, amongst others, align the 2020-25 strategic plans with the Department of Performance, Monitoring and Evaluation and the guidelines for the implementation of the same, update the legislative framework to improve the alignment of key government strategies and programmes including the Economic Reconstruction and Recovery Plan, ERRP, and its coupled skills strategy.
In February 2022 the President, His Excellency, Mr Ramaphosa, announced that the Department of Higher Education and Training would place 10 000 unemployed Technical and Vocational Education and Training, TVET, College graduates in work places from April 2022. Working with the departments, the National Skills Fund and the Local Government SETA have set the targets for the APPs to implement this priority.
The NSF has targeted to support 61 000 learners to access education and training, 38 000 learners for education and training towards occupations in high demand and ensure that
11 000 complete education and training. The NSF also aimed to award 5 000 bursaries to students for their qualifications and
support 1 000 youth from rural areas for skills development in response to innovation and digital technology evolution.
The committee was concerned about the low targets for completion numbers in all the identified programmes. The committee urged the National Skills Fund to look into this matter and address the challenges that may constrain high completion numbers. The NSF’s Medium-Term Expenditure Framework, MTEF, revenue amounts to R15,5 billion of which R4,8 billion is the revenue for the 2022-23 financial year. The bulk of this budget, R3,3 billion, is allocated to skills development. The committee is concerned about the projected accumulated surpluses and reserves amounting to R13,2 billion.
The entity has assured the committee that the spending on the accumulated surpluses and reserves will improve. The committee will monitor progress in this regard and progress in addressing the challenges that plagued the entity over the past years. The committee will follow-up on the findings and recommendations of the forensic investigation and the Ministerial Task Team review of the NSF.
In terms of the Local Government SETA the revenue for 2022-23 amounts to R905 600 000 which is projected to increase to R959 900 000 and R1 billion in the outer two years of the Medium-Term Expenditure Framework period. The budget will fund the skills development interventions, administration and quality assurance. During the 2022-23 financial year the LGSETA will conduct six research projects on skills development needs in local government, conduct evaluation
study on skills development programmes and projects, develop a monitoring and evaluation tool, train 20 co-operatives and 20 small emerging enterprises in the sector and national priority occupations.
In line with the presidential announcement to place 10 000 TVET college students, the LGSETA will place 800 TVET students and 350 university students requiring work integrated learning to complete their qualifications. It will also establish partnerships with 10 TVET colleges, 10 higher education institutions and three Community Education and Training, CET, colleges, support five centres of specialisation and train 30 people on entrepreneurial skills.
As the committee we welcome the commitment of both the NSF and LGSETA in supporting and collaborating in skills development interventions in the TVET and CET sectors. We submit to the House to adopt the report. Thank you very much.
Declarations of Vote:
Ms C V KING: House Chairperson, South Africa suffers from a serious shortage of skilled people. This is a major constrain on our prospects to achieve the kind of sustained economic growth that will open the way for much wider participation in the economy, as well as reduce poverty and social ills. There is a need for reliable and credible labour market and skills demand intelligence as a precursor for improving the skills development pipeline. A reliable demand trajectory is required to know what the occupational growth and skills demand trends are in order to guide the determination of priorities for the skills development system, guide learners and provide signals to the provider system for planning and learning programme development considerations.
There appears to be a lack of understanding of the structures of the economy, the nature of the work processes and the role
of SETAs in them. Another concern is that the NSF and the SETAs try to work nationally, provincially and locally, and directly support a range of sectors which they have little knowledge of and experience in. For example, the NSF will directly allocate monies to each individual Expanded Public Works, EPW, project rather than allowing the Department of Public Works to manage the processes as part of its existing processes. Similarly, the NSF directly funds enterprise development programmes and will provide money to provinces to do this rather that allocate the monies to the bodies in government that support small medium and micro enterprises, SMME, development as a comprehensive package of which includes, but it is not limited, to training.
The National Skills Fund 2020-25 realigned new indicators introduced in the 2021-22 annual plan and an enhancement to support improving the audit outcome reporting and evaluation exercises as per the preliminary audit findings of the Auditor-General. The fund revised its budget to ensure
consideration of the Medium-Term Expenditure Framework and the costing per programme.
An amount of R15,5 billion revenue is projected over the MTEF and for the 2022-23 the fund has a revenue of R4,8 billion.
When considering inflation adjustments to the budget, the NFS increased by a R177 million or 4%. This revenue increase has little significance when the fund cannot account for
R5 billion under allocated funds, when audit outcome plans are not implemented at a desirable pace, when high vacancy rate is screaming capacity challenges and the slow pace of implementing corrective measures carries a risk for the entity to have another regress audit outcome for 2021-22 financial year.
The Local Government SETA received much fanfare of praise for the progress made with the revised strategic plans, especially since the Auditor-General did not make any findings against its performance indicators and for taking the bull by the horns in the fight against corruption in the entity. The relentless effort to protect those who stand against corruption is commendable.
Considering the critical role they play in local government, concern was raised with the capacity and availability of
councillors to deal with the service delivery challenges at the local government level, as well as concern over the lack of dedicated gender-based violence policies in place.
In reality, we need to ask the question how effective was training provided by the Local Government SETA in municipalities of Inxuba Yethemba, Enoch Mgijima and Great Kei municipalities with basic service delivery principles have fallen by the wayside, in Buffalo City municipality where officials desperately require skills on rezoning property and financial into control measures. Clearly there seems to be a misalignment with skills training as per the relevant skills needed. Just recently the National Skills Fund contributed a R100 million towards digitisation in the education sector for close to 2 000 students. Now just imagine how much more bursaries could have been awarded from the missing R5 billion. To make matters worse, Grade 12 learners from schools like Green Point Secondary and Grenville Senior Secondary and some postgraduate students are not even aware of funding office from the NSF. It is for this very reason why we are again call on ... [Inaudible.] ... to take our proposal of having a
national skills fund portal for one application process to multiple sources of entities. We say no student left behind.
Mr S TAMBO: House Chairperson, the country’s critical shortage of skills and the escalating socioeconomic inequalities must be seen against the backdrop of massive looting of state resources, particularly by the SETAs under the management of Mr Blade Nzimande. A short while ago it was reported that the National Skills Fund could not account for over R5 billion that simply disappeared over the past two financial years. The forensic investigation that Mr Nzimande promised to undertake in May this year was simply to cover up this corruption because he knows that he has staffed all these skills development entities with his communist party cronies who use these entities to loot state funds.
In 2021 he did the same thing and sought to appoint a private investigator instead of letting the Special Investigating Unit, SIU, investigate these chronic corruption problems at the NSF. The LGSETA is no different; they have done next to nothing to below the capacity of the local government over the past few years. Recent reports show that many councillors
cannot even read municipal reports, they cannot use computers and some cannot even write their own names.
The LGSETA hasn’t made any interventions to ensure that capacity at municipal level is on par with the requirements of running proper governance at municipalities. The NSF, the LGSETA and most of this sector of education and training authorities need to be repurposed so that they align with the developmental aspirations of the country. A more urgent need though is to remove Mr Nzimande as a person in charge of these entities because he uses them to disperse patronage to his South African Communist Party, SACP, cronies. Therefore we reject this report. Thank you very much.
Mr S S ZONDO: Hon Chairperson, the development of education is and continues to be the backbone of this nation as educational and training system play a vital role in employment and skills enhancement. In order to achieve this the county depends on programmes and system that help ease the implementation of education and training strategies to equip more people in this country with the skills and resources to integrate and compete in the economy and labour market. The success of this direct
indicate the progress societies make and more specifically the impact the socioeconomic position of many.
The IFP echoes with the committee concern regarding the National Skills Fund spending on sustainable postschool education and training systems. This take away from the premises of the initiatives which is also expanded in full and integrate various trends of the postschool systems. This has slowed down the possible contribution that the fund would have made towards its service delivery performance in funding these learners while they develop the skills as well as giving them access to colleges and skills centres which will empower them to join the workforce. Should this surpass the performance continues it would further compromise the funding of the skills development initiative as well as the possibility of competing in the work force or labour market. This could ultimately worsen the triple challenges of inequality, poverty and unemployment which is something South Africa battle with on daily basis.
Careful attention has been given to the National Skills Fund, NSF, and organisational structures as well as factors that have contributed to the entity’s failure to fill the vacancies
timeously. This feed the negative into Programme 1, administration, where lies the possibility to produce effective management and business operations and service delivery environment which has started to lag behind already.
The IFP agrees that the state of affairs of the NSF should be improved and lamented by the committee report of the commitment by the director-general, DG. The report shields the light of the corruption which is scotched that the allies of the country and government on daily basis. Therefore, acknowledgement should be duly given as in the committee report to the Local Government Sector Education and Training Authority for its active involvement in tackling corruption.
Furthermore, the delay is noted in the committee report relate to the implantation of task force, a serious impediment in the provision of trainings of many individuals who are supposed to be growing through the processes of learning and training and ultimately their integration into the economy.
The IFP will therefore support close monitoring and accountability measures to ensure that board entities reach their intended targets with few delays as possible. The IFP accepts the report. Thank you.
Dr W J BOSHOFF: Hon House Chair, I think it is a common cause that what will enhance economic growth in South Africa would be if skills are enhanced because South Africa has a perpetual scarcity of skills and it has been coming like that for some quite decades. Therefore, in 1999 the ANC government, decided to devise a whole new structure especially what used to be technical colleges. It had several names and they have been done because that is something that we do very nicely, renaming stuff and trust that it will improve that process.
But we got the new tax in the form of the Skills Development Levy, which is 1% of the total wage bill of South Africa. That has been used ever since to fund the National Skills Fund and also the different the Sector Education and Training Authority, Setas, for the past two year, around about. The problem is that the country has not been in the position to facilitate the spending of this money, and it is still not in that position after 20 years. That is the basic problem. The diagnosis is correct to say, but we need to spend more money on the development of skills if we want our economy to grow.
Unfortunately, it is our government which grows and not our
economy. The 1% on the wage bill is actually not a large price to pay if we can succeed in that. But as this report shows, both the National Skills Fund and this one the Services Sector Education and Training Authority, Seta, which is one of the several, both have many unfilled vacancies because the skills to develop skills are not available. There are just too few people with the relevant knowledge and they suffer and struggle to get the money spent. This is another way to indicate that the relevant skills are absent.
Now, the problem is exactly with this kind of centralised thinking that we became used to, to think that every problem can be solved with a centralised solution while the actual solution lies in involving communities in what is important in their direct economies, and not to abstract economy into numbers which touch ...
Afrikaans:
In Afrikaans sê ons, wat nie kant of wal raak nie.
English:
But to say, the economy is relevant to each community’s everyday life. [Time expired.]
Mr S N SWART: Chairperson, there is no declaration, and we support the report.
Mr M G E HENDRICKS: Hon House Chair, higher education should continue at high schools after matric to meet job requirements in this decade. Skills and innovation needed to create next generation jobs and new revenue streams can be developed in just two years after matric. This is the case in advanced countries and also in the United Kingdom. It lessens the need for university education. There is no strategic plan to reduce the need for universities. All university studies should be online reducing the need to force student accommodation which is very costly. It is a waste of money to pay for university fees and student accommodation if placement in jobs is less than 20%. So 80% of the budget to implement the five-year strategic plan which we are discussing here is wasted and could be better spent on extending high school beyond matric by just two years.
Strategic plans for the next five years does not capture the imagination of the nation. We want to hear about the advances in artificial intelligence, robotics and sending an African to the moon. We want to hear an advances in innovation to take the H out of the HTO for Nitrogen energy as we have ready bias in the European Union.
The report is silent on the next generation jobs and the next revenue streams. Thank you very much.
Ms J S MANANISO: House Chair and hon Boshof, you forgot to tell us whether you support or you do not support. However, one wants to thank the opposite parties who have supported the report. The revision of the five-year strategic plan and the consideration of the annual performance plan of the National Skills Fund is critical and it has to respond to the current focus of advancing the economic, reconstruction and recovery plan. Skills development is a vital component of the economic, reconstruction and the recovery plan. The department developed an economic, construction and recovery plan skills strategy that seeks to address the level of unemployment, poverty and inequality through a focus on public and private education, training institutions and skills development providers in the
workplaces. The economic, reconstruction and recovery plan, ERRP, skills strategy demonstrates the ability of the government to adapt its policies and programmes to address the emerging challenges to respond to the impact of the global coronavirus pandemic and the changing world of work.
In the state of the nation address debate response the President committed to ensure that government increases its skills development opportunities to address the levels of youth unemployment particularly the youth who are not in employment, education and training. This is a critical commitment to empower the youth with the skills to improve their chances of getting work opportunities or developing business enterprises to sustain their livelihoods.
The revised NSF strategic plan respond to the call of increasing development opportunities through increasing targets to an overall of 27 additional beneficiaries focused on funding. The focus of this funding is to include fields such as the digital skills and other skills in demand. As the ANC we have called for the massification of skills development opportunities to advance work experiential learning which assist you in participating in the mainstream economy.
Hon Boshof, the annual performance plan of the National Skills Fund has targeted 61 000 learners for education and training and 38 000 for education and training occupation in high demand. This is a targeted approach for skills development.
The ANC is committed in creating opportunities for young unemployed youth who bear the brunt of the low economic growth and increased cost of living.
We are concerned about the governance challenges and reported financial mismanagement in the NSF. We are committed that the investigation and intervention by the department will yield positive outcomes. The ANC stands opposed to any form of maladministration. A significant concern is the understanding of 35% of the budget for the 2020-21 financial year. This is a dismal outcome we shun as the ANC. We shall closely put an eye on the challenges facing the NSF as this is the critical instrument to address unemployment and skills mismatch in the economy. We have recommended a review of the target of filled positions to 90%, which is currently is 60% to ensure the entity has sufficient capacity to implement its mandate.
Another critical matter the portfolio committee’s focus is on it, is the Local Government Seta. The 2022 local government has seen one of the highest turnover of councillors. The fact that many elected councillors are new always poses a challenge for government. It takes relatively over six months for a new councillor to understand their role as council members and the mechanism of working with the communities developmentally.
Training and equipping councillors with the requisite skills and knowledge is one of the laments and the spine line for good governance in a competent council of any municipality. The role of the Local Government Seta is skills development in the local government sphere is critical as part of building a developmental local government which will respond to the challenges affecting communities.
Hon Chair, the entity will certify 25 000 learners against unit standards and 3 000 against full qualification. This reflects the extent for training the Seta is undertaking to advance the skills revolution. We welcome [Interjections.] Chairperson, please protect me. We welcome the decisiveness of the Local Government Sector Education and Training Authority, LGSeta, board which suspended some senior executives implicated in allegations of maladministration and allegedly
contributed to the entity R35 million in irregular expenditure record in 2020-21. The board ... [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon members, no, no! If the hon member disrupts again, please disconnect the audio of that member.
Ms J S MANANISO: The board has also appointed an investigator to deal deeper into the alleged maladministration and produced a report that will assist its remedial action. This is not a lip services, hon Boshof, to mismanagement but an apparent effort to restore governance. Shaik Emam, the concern of the ANC on the report received is the threats to the accounting officers’ safety. The implications of corruption are not only a loss to the state, but they give rise to the legal cost and investigating in recouping funds which can result in nonconnection. This places an important on preventing corruption through solid government system and internal control. The ANC supports this report. I hope that hon Boshof have noted that as much as the diagnostic report is relevant therefore we have given you he response. I thank you, Chair.
The CHIEF WHIP OF THE MAJORITY PARTY: Hon Chair, I move:
That the Report be adopted.
Motion agreed to (Economic Freedom Fighters dissenting).
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION, SCIENCE AND INNOVATION ON OVERSIGHT OF HYDROGEN AND FUEL CELL TECHNOLOGIES RESEARCH, DEVELOPMENT AND INNOVATION PROGRAMME
Ms N T MKHATSHWA: Hon House Chairperson, hon members and members of the National System of Innovation, good afternoon. On the 18th of March 2022, the committee visited the South African Institute for Advanced Materials Chemistry at the University of the Western Cape which holds one of three hydrogen centres of competence. Here the committee received an onsite briefing from the Department of Science and Innovation on the hydrogen and fuel cell technologies, research development and innovation programme as well as efforts to harness the relationship development intervention, RDI, programme together with industry partners and government
create new economic sectors and geographical corridors via the hydrogen society road map.
In an effort to develop safe, clean and reliable alternative energy sources to fossil fuels as well as build national capability and frontier science and technology initiative, South Africa has given considerable attention an investment to the development of local hydrogen economy. With the energy crisis of 2007, via load shading and the existing global focus on the hydrogen as an energy carrier combined with fuel cell technology to produce electricity. Looking into resource beneficiation to develop capability and gain greater social economic benefit was considered as strategic imperative. The potential for resource beneficiation would be supported because an important component of most types of fuel cell is a platinum group metals, PGM, based electrocatalysts which is South Africa possess approximately 80% of the world’s PGM reserves. The programme aimed at stimulating and guiding innovation in the area of hydrogen and fuel cell technology through beneficiation of PGM was launched as Hydrogen South Africa in 2008, and ... [Inaudible.] ... second review Cabinet approved the hydrogen society road map, HSRM, in 2021 which would be an overarching country plan.
HSRM build on what has been achieved in the Hydrogen South Africa, HySA, programme to prepare South Africa to move from research and development to manufacturing and commercialisation. The HSRM’s key goal is to enable the development of an inclusive sustainable and competitive hydrogen economy that supports South Africa’s aspirations to move towards a net-zero carbon economy by 2050. Another key aspiration ... [Inaudible.] ... created 20 000 jobs by 2030 through the project that will be implemented under the HSRM. Approximately R1,3 billion has been invested in HySA to date and has generated through ... [Inaudible.] ... companies developed 23 prototypes and 18 commercial product and filed 30 patents, among others.
The technology development and product innovations have been deployed in a number of local settings. For example, Chief Whip, the fuel cells deployed to provide power to ... [Inaudible.] ... hospital set up during coronavirus disease 2019, Covid-19, were part of the work that HySA has done until now. After the sit-down briefing that we received at the University of the Western Cape we exploited an exhibition explaining the work and integration of the three centres of competence of HySA. From there we went to the lab where we saw
a number of the products that have been developed into an electrical scooter with a fuel cell range extender, a fuel cell forklift developed in collaboration with Impala Platinum and a metal hydride tanks were hydrogen storage and supply, amongst others.
I must say that it was really great to see young African women being part of that space and also sharing their experiences of working in that environment with us. Coming out of the day and what really stood out was the really great collaboration by various entities of the Department of Science and Innovation, institutions of higher learning, science councils, national departments, private sector and global partners in the work of various components of HySA and the HSRM. Noting the extent of partnership that must strengthen this work we committed ourselves to further briefings on HySA and the HSRM with other relevant portfolio committees such as a mineral resources and energy, amongst others.
Noting the challenges around the fuel implementation of the HSRM we encourage the Department of Science and Innovation with its partners to develop clear implementation plans with manageable timeframes with monitoring and evaluation
mechanisms that will stimulate a sense of accountability throughout the progress of this project. Increase in international agreement can also assist to attract additional funding to support and ensure the programme that the programme remains relevant in terms of the latest developments in the RDI. We noted that there is already existing technology capacity and capability that could be implemented under the HSRM. For example, transitioning the fossil fuel-based, heavy- duty mining transport industry or trucks to hydrogen powered trucks. Here there is a need for the policy and regulation environment to receive the necessary attention to enable this transition.
We also want to really see the inclusion or the increase inclusion of technical and vocational education and training, TVET, colleges of ensuring that we have skills that can empower this particular hydrogen economy. House Chair, it was a really great experience and we will continue to monitor the work that the Department of Science and Innovation and HySA are doing in terms of building a hydrogen economy in South Africa. Thank you, House Chair.
There was no debate.
Declarations of vote made on behalf of the Democratic Alliance, Economic Freedom Fighters, Inkatha Freedom Party, Freedom Front Plus, African Christian Democratic Party, Good, Al Jama-ah and African National Congress.
Declarations of Vote:
Ms N I TARABELLA MARCHESI: Thank you, House Chair. With petrol hikes and the cost of living skyrocketing it is truly make sense to look at clean affordable renewable energy. Therefore, for us to be able to reduce our dependence on fossil fuel we need energy independence so as to isolate ourselves from the external factors as the crisis of today that we have seen ourselves in which is between Ukraine and Russian conflict.
The oversight was intended to see the progress done on hydrogen economy, especially the focus on hydrogen as energy career combined with fuel cell technology to produce electricity. It is a strategic imperative with greater socioeconomic benefits which has a potential to actually help to alleviate the poverty crisis that we are faced with in South Africa.
Hydrogen energy has a potential to actually make South Africans to be more mobile, to be more accessible because it will be a more ... [Inaudible.] ... that is affordable and readily available. The only issue that actually came out during our oversight was the fact that in order to produce hydrogen one needs to be able to isolate hydrogen as a molecule itself, but then the problem was that and how do you actually move the hydrogen that you have harnessed from the water sources. That is one other, you know, research project that the department is looking into to ensure that hydrogen is actually readily available and also it can be transported to various areas.
What we experienced at the site was that there is hydrogen cells that are actually ready and they can be used in motorbikes as the hon member mentioned earlier. Therefore, that project is really available and they are well-talking about looking at having that available for anyone who wants to buy that kind of technology and also help because that’s one other thing that we mentioned as a fact that like, you know, with Uber Eats at the moment whereby you have a lot of young people that are involved in the industry of delivering food to households that they can actually be able to access that kind
of technology and they will be able to use the motorbikes and be more mobile and allow them to be accessible and make it easy for people to actually order food online so that we can really move more into that technology as South Africans.
Therefore, one other thing that, you know, we felt that it is important as a committee was the fact that regarding the Eskom issue. Eskom has few sites in the country where they have substantial energy storage capacity for renewable by means of lithium batteries. This breaches are known to be potential dangerous that could actually be an issue that we were concerned about and there are prone chemical fire. Moreover, there made with a ... [Inaudible.] ... materials many of which come from international conflict zone and where child labour is prevalent in Congo, etcetera. So, those were also, you know, issues that are actually as I was reading the reports I realised that we need to look into as a committee and try to highlight them as points of concern. However, otherwise we’re very excited about the project because we believe that it has the potential and also to also look at ... [Inaudible.] ... transportation like when it comes to buses in our communities, especially in the townships.
Therefore, we would like to encourage the department also looking to that to see how is it possible that that buses can get also be filled with hydrogen energy so that people can access mobile as I said earlier. There’s a lot of work. The only other issue also is that, you know, given the fact that there’s a lot of work that is done by Council for Scientific and Industrial Research, CSIR, especially on the hydrogen energy centre that like those are made available and do allow that more people can be able to be getting involved because they have a potential of changing our economy and also ensuring that our young people become part of those kind of technologies. Therefore, it is quite exciting and I think it’s something that South Africa can look forward to see more in our communities. Thank you, House Chair. [Time expired.]
Mr S TAMBO: Hon House Chair, the EFF welcomes the report of the portfolio committee on the oversight visit to the Hydrogen and Fuel Cell Technologies Research, Development and Innovation Programme. The development of alternative means of energy is critical, especially in the context of the rolling blackouts, which characterise South Africa. The lack of reliable electricity supply has a detrimental effect on the
economy and the lives of the poor. And the resolution to the torment that Mr Jamnadas Gordhan subjected us to can be found in the use of hydrogen and fuel cell technology.
The hydrogen value of the platinum value initiative, which is set to promote the scale-up of clean emerging technologies and reduce emission through the development of green hydrogen hubs, is a welcomed initiative. It is notable that this initiative may even promote job creation in identified hubs of Johannesburg, Durban, Richards Bay and Mogalakwena in Limpopo, as opposed to the nonexistent just transition, which seeks to abandon coal as a means of generating energy, and collapses acceptance in South Africa that is booming in developed nations, such as China.
The state however must remain the central mediator of the development of this method of generating energy and this project must not replicate the current parasitic relations that Eskom, for example, has with independent power producers.
As the EFF, we therefore concur that government departments must participate meaningfully in the project, particularly the Department of Mineral Resources, to ensure that this project retains the resemblance of sovereignty and it is not used by private entities, simply for profit maximization purposes.
We do not believe that an enterprise pertaining to energy must be heavily commercialised, as this will have a negative effect result for ordinary people who are in need of reliable energy supply, due to the predictable extractive interest of capitalist investors.
The state must play a much larger role and determine how private interest interact with our energy and developmental objectives. Thank you very much.
Mr S S ZONDO: Hon House Chair, hydrogen and fuel cell technologies presents South Africa with exciting opportunities, not only for meeting our own energy needs, but also with the potential to become a major player in a global production of green hydrogen, and logistics.
The report being considered states that approximately R1,3 billion has been invested into Hydrogen SA, HySA, and the three centres’ competence should all be commended for their work and innovation. Taking into consideration the substantive government investment into research, as well as what the report recommended, is an indication that international engagement will invite funding and continued relevance.
The IFP would like to recommend the initiation of a multistakeholder oversight panel, to oversee the research of all three Centres of Competence, COCs. The panel should include government, academia and expertise in the field. The panel would provide the potential for continuous review of global development and commercialised technology and methodologies in the field. This would ensure that the funding is spent on in innovation and not on the reinventing of ... [Inaudible.]
While also encouraging international partnership, we recommend two products that have already been developed, such as fuel cell forklift, developed in collaboration with Impala
Platinum. Has a similar product already been developed? Or is there a potential to commercialise such innovation?
The same question can be asked for emergency fuel cell development for use during covid-19. Will this be commercialised and be made available to organisations such as Doctors without Borders or Gift of the Givers?
Actions such as these will show that these innovations are commercialised, viable and therefore attract international investors to South Africa’s research initiative in the sector.
Finally, with regard to public awareness and promotion of the expansion of the TVET colleges programme, it is a recommendation that we approach Sasol, due to its involvement in the Presidential Programme at ... [Interjections.]
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members! Order! Hon members, let us allow the member to conclude.
Order, hon members! Hon Mashego!
Mr S S ZONDO: We suggest that they produce a high-school level programme with ...
IsiZulu:
Kungcono ngizokunika ungifundele ngoba ngathi unezinkinga.
English:
... video content about the development of Science, Technology, Engineering, and Mathematics, STEM, skills relating to green hydrology. The programme should promote hydrogen as the fuel for the future, highlight job opportunities the sector offers and introduce TVET colleges that offer the course one needs to enter the industry.
As the IFP, we are excited about the potential this development industry holds for the future of the country. The IFP accepts the report. I thank you.
The HOUSE CHAIRPERSON (Mr C T Frolick): Hon Mashego, do you want to be recognised? You had your hand up. You know, I will
never make a mistake, if there is a noise in that corner. I will identify you and I am spot on. I am spot on. I don’t make a mistake.
Dr W J BOSHOFF: Hon Chair, I decided to use your stop watch this time around, but now I see it is unlicensed. I am not sure whether it is safe to do so. It is not often that we really get something to get excited about, but we visited facilities at the University of the Western Cape, to look at the activities of Hydrogen SA and it was really such an example.
If we take the whole question about climate change seriously, then we seriously need to look into alternatives of coal-based energy or even petroleum-based energy, and green hydrogen is exactly such an alternative.
The thing about green hydrogen is exactly that it uses renewable energy, in order to get the hydrogen out of the water. The Department of Science and Innovation created Hydrogen SA, HYSA, and it is actually a double plus, because
except for the energy self-sufficiency, it also makes very good use of the platinum minerals group. I am so sorry that hon Mantashe is not here today, because he will be really very glad to know that hydrogen can be used to clean up coal flue gas. And there is nothing that he likes more than burning coal and now it can be a little bit cleaner.
The energy crisis that we experience today will probably be solved by light commuter traveling going over to electricity and heavy ... What do you call it?
Afrikaans:
... swaer vervoer ...
English:
... heavy trucks and trains to be done by hydrogen. That is exactly what is going to happen at the moment and this is a project that is on time and on budget busy to unfold. Within the next 10 years, it could really change the pace of energy usage in South Africa.
What we witnessed with this visit was how these solutions are already in actual use and it really gave one something to be positive about. The FF Plus really likes to welcome this report.
Mr W M THRING: Hon House Chairperson, the ACDP is aware of the current scramble around the world to find clean renewable green energy, as we move away from the finite fossil fuel energy. Globally, attention is given to develop ...
The HOUSE CHAIRPERSON (Mr C T Frolick): Order, hon members! Hon member, can you take your seat, please.
Mr W M THRING: Globally, attention is given to develop local hydrogen economies and South Africa is suitably placed to become a global leader in this regard. Hydrogen is the simplest and most abundant element in the universe. It is a major component of water, oil, natural gas and all living matter can be generated from oil natural gas, biomass, all by splitting water, using renewable solar or electrical energy.
In a fuel cell, hydrogen energy is converted directly into electricity with high efficiency and low power losses.
Hydrogen therefore is an energy carrier, which is used to move, store and deliver energy produced from other sources.
The ACDP acknowledges the fact that an important component of most types of fuel cells is a platinum group metal-based, PGM, electro catalyst. More importantly, South Africa possesses approximately 80% of the world’s platinum group metal reserves and the use of PGM electro catalyst will increase the demand for these platinum group metals.
Clearly, hydrogen as an energy carrier, combined with fuel cell technologies, to produce electricity must be a strategic imperative in which to develop capability and gain greater socioeconomic benefit through resource beneficiation.
The ACDP asserts that it is a travesty that almost 30 post- 1994, South Africa continues to be a net exporter of our raw
and precious minerals, only to import the more expensive finished product from other countries.
In supporting the recommendations, the ACDP agrees that our students at our TVET colleges must be given the necessary skills to support a hydrogen economy and that collaboration with the private sector be strengthened to ensure the sustainability of the commercialisation objectives of the hydrogen society roadmap. The ACDP accepts the report. I thank you.
Mr B N HERRON: Thank you House Chairperson. Chairperson as we steadily emerge from the pandemic’s economic luau, it’s important that we make note of our international surroundings and opportunities that due to a number of factors including the State Capture, we have taken a steps backwards on our journey to establish ourselves as an international producer and economic leader to other emerging nations.
Therefore, green hydrogen fuel cell technology offers us another sector to rise to prominence in. Through this report and the hydrogen study road map, we can establish three core
facts. Firstly, the sector is still new and South Africa has the capability of being a global distributive powerhouse.
Secondly, this project has been underway for over a decade and there many South Africans who look to the sector with the hope of employment and uplifting communities.
Lastly, while the technology is not flawless, we have the ability to be the global lead in harnessing and utilising the technology in a sustainable manner.
However, the only way to achieving this is by backing our local projects and protecting the assets we have. A perfect example of this can be seen in the Prieska Park reserve in the Northern Cape.
This hydrogen and renewable energy focus reserve is black run, female led and vital in our continued transformation of various sectors as well as women in stem.
For these projects to work, we need to be safe guarded and as we continue to transform our society into the technology of
the future, we must ensure that those placed in charge of these projects share the same vision.
The vision will be approved immediately with a massive international market. Germany unveiled its new hydrogen fuel around 21 century train this week. This shows that their technology is new, in demand and has the potential to help our society along with it.
This is a once in a lifetime opportunity that could create thousands of jobs, upskill hundreds of communities and bring South Africa into a role of being a crucial renewable energy supplier. We support this report House Chair.
Mr M G E HENDRICKS: Thank you hon House Chair. Hon House Chair, in his State of the Nation Address his Excellency Cyril Ramaphosa created a sense of excitement when he raised the advantages of hydrogen green energy. The portfolio committee today has also caused further excitement in that thousands of jobs can be created.
I am proud of the fact that my alma mater the University of the Western Cape where I served on a conversation as well as the other structures of the university like the Alumni Union that they are taking the lead and it is necessary to tell them to speed things up so that we can take advantage of these opportunities sooner than later.
The University of the Western Cape also has dozens of balls and those balls are treated 24 hours a day and supplies water to the water grid and one would expect that they would also supply hydrogen energy in one way or another to the electricity grid. So, there are a lot of opportunities that this emerge and we would like to thank the portfolio committee for their oversight visit as well as the encouragement that they have created.
I’m not happy with the fact that when it comes to innovation they talk about deliveries by Uber. Deliveries must be by drones not by Uber. But I suppose we will get ready for that.
Al Jama-ah welcomes the report and supports the report.
Ms K D MAHLATSI: Thank you very much Chairperson and good afternoon to the hon members. Chief Whip, it is quite nice to declare on a report that has been affirmed, agreed to, accepted and supported. But the bottom line is that all political parties are supporting this report.
Hon members, like the rest of the continent South Africa is endowed with precious metals and several mineral resources which are the back bone of the industrialisation worldwide and domestically. Fossil fuels have the potential to accelerate economic growth and where conflicts exist they can also serve as a curse.
For the ANC, our natural resources are endowments which should be used in the interest of the people to advance their social and economic wellbeing while protecting the environment.
The climate change impact of carbon emission has resulted in the world committing a part of low carbon emission as guided by the different protocols such as the Paris agreement.
South Africa has also set its nationally determined contribution which requires a just transition to a low carbon economy. South Africa’s carbon emissions is primarily through coal empowered generation. This then places energy generation as a critical area for the country in reducing its emissions.
To offset its reliance on coal empowered electricity generation, the state and the private sector should invest in renewable energy. For the South African economy to gain a competitive edge by reducing energy cause, the first assessment should identify the key energy sources which have relative abundance.
The energy from the sun is one of the sources of renewable energy which should be a key component of our integrated resource plan. Energy storage is critical to energy security as the risk of different power generations sources is inherent. The lack of energy storage capacity can lead to energy loss when energy generation is abandoned.
Hon members, hydrogen is one of the natural resources that South Africa has in abundance which accounts approximately 80% of the world’s platinum grid metal.
The global and domestic focus on hydrogen as an energy carrier combined with fuel cells technologies to produce electricity is an area in which the Department of Science and Innovation has supported as part of the development of local hydrogen economy.
This is a critical area to advance the beneficiation of hydrogen and to advance the socio economic development of our country. As the demand for hydrogen increases, platinum grip metals will serve as a critical economic stimulant.
With an approximately R1,3 billion investments thus far, the hydrogen vision with three identified hubs in Limpopo, Gauteng and Kwa-Zulu Natal will establish a corridor of hydrogen value chain which will attract investment.
In our oversight visit to the SA Institute for Advanced Material Chemistry at the University of the Western Cape, we received a detailed briefing on the hydrogen and fuel cells technology research, development and innovative programmes which is part of the country’s effort to build a local hydrogen economy.
The world’s largest hydrogen power truck which uses 3 megawatts of the hydrogen fuel cells from the platinum mine in Limpopo should be the beginning of incorporating hydrogen as a source of energy to empower numerous heavy machinery. Hydrogen has always been adopted by major companies such as Volvo which already offers fuel cells, electric trucks powered by hydrogen bound to expand in the transport sector and South Africa should position itself in the global growth.
The state investment in hydrogen demonstrates the government’s commitment to supporting research and development. The collaboration between the institution of higher learning, higher education and universities and TVETs and the science and innovation entities such as the Council for Scientific Industrial Research, Eskom and other institutions is an aspect where we welcome and encourage.
Research and innovation are essential components for the development of any institution in the sector. It is for these reasons that the portfolio committee emphasized the importance of collaboration between public institutions and other spheres of government with the Department of Science and Innovation.
We urge the department to ensure inclusive development of the hydrogen economy to include the participation of women, people with disabilities and the youth in the economic value chain, research and development aspect.
The hydrogen economic sector should be modelled to create economic opportunities for small business and medium size enterprises to ensure the redistribution of the value within the industry.
Another critical aspect of the recommendation is expanding the TVET colleges programme which is already underway to train and attract more students in the hydrogen sector.
We need to create awareness of the hydrogen economy in our country and encourage our learners in schools and students in the universities to have an interest in the platinum group metals to spare innovation as it can be defining competition advantage for the beneficiation of growth and manufacturing capacity as a nation.
It must be noted that hydrogen economy is new game changer in the bigger scheme of things and young people of the country
must take advantage of this opportunity. Our country is facing serious energy crisis and in responding to this, the ANC led government supports the just and fair transition from coal to renewable energy.
The current energy system is dominant by fossil fuels and is carbon intensive affects human health and is very expensive. Once they move towards renewable energy it will reduce environmental health hazards and reduce the cost of energy.
However, the journey towards renewable energy as a country must be just and fair. The just part must focus on looking after the people who are currently on the energy system who will be affected negatively by this transition.
As the ANC, we support the future focus on repurposing our coal plants as well as our reskilling and skilling the current workforce to avoid job losses. As the ANC, we support this report as it reflects the strides taken to ensure sustainable green energy for the South African economy and the growth of the hydrogen economy. I thank you.
Sesotho:
SEPHADI SE KA SEHLOOHONG SA MOKGA WA BONGATA: Ha ke lebohe
Modulasetulo. Modulasetulo ke tsitsinya hore Ntlo ena e amohele tlaleho ena e beuweng mona. Ke a leboha.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION, SCIENCE AND INNOVATION ON PERFORMANCE OF 2021-22 SECOND AND THIRD QUARTERS OF DEPARTMENT OF HIGHER EDUCATION AND TRAINING
Ms K D MAHLATSI: Hon House Chairperson and hon members, good afternoon. May I introduce the report of the Portfolio Committee on Science and Innovation of the Consideration of the 2021-22 Second and Third Quarters Performance Report of the Department of Higher Education and Training for the adoption by this House.
In strengthening oversight and accountability by the executive, the committee has continued to consider the Public Finance Management Act, section 32 reports to conduct in monitoring of the implementation of the annual performance plan targets and budgets adopted in May 2022.
Hon members, we have considered the 2021-22 second and third quarter performance reports of the Department of Higher
Education and Training and assess progress towards achieving the 2019 to 2024 Medium-Term Strategic Framework, MTSF, priority. For the 2021-22 second quarter, the department had
18 planned targets and achieved 50% of the nine targets. The bulk of the targets, 11 out of 18 were implemented under Programme 4, which is Technical Vocational Education and Training, TVET, programme. The programme achieved 27% of all the seven of the planned targets.
The committee notes with concern that the department did not reach the target to paying 100% of valid invoices received from the creditors within 30 days.
As the committee, we are very concerned about the impact of the nonpayment of invoices on 1% of service providers. This might be valuable to small businesses that may not even survive without payment. We implore the department to ensure that all invoices are paid on time.
We have also noted with concerns that some targets were not achieved due to lack of capacity.
Hon members, we welcome the approval by the teaching and learning improvements at Continuing Education and Training,
CET, colleges and approval of the draft government standards and regulations for CET council.
At the end of the second quarter the department spent R70,25 billion or 71% against the projected expenditure of R70,9 billion. Recording lower than projected expenditure amount to R702,2 million.
We are concerned about the delays in the transfer of the infrastructure efficiency grant for the TVET colleges and the delays in the filling of vacancies.
The committee notes the infrastructure efficiency grant is often a target of National Treasury. For our reprioritisation per sectors with budget constraints, we implore the department and the TVET colleges to put mechanism in place and improve spending on the infrastructure grants. The TVET colleges, lectures and students deserve to have conducive teaching and learning spaces.
For the 2022-23 third quarter performance report, the department had 16 planned targets of which three or 9% were achieved. I need to indicate that the performance in the third quarter was very poor which cannot be acceptable.
The department failed to pay 100% of the valid invoices from the creditors. The target to the updated guidelines for implementing the Department of Higher Education and Training bursary schemes to poor and working class students at public universities submitted to the Minister for approval by 31 December 2021, was not achieved.
The department ascribed the noncompliance or nonachievement to the uncertainties due to National Student Financial Aid Scheme, NSFAS, budget shortfall. The guidelines should be finalised when the National Treasury confirm the allocation to cover the budget shortfalls. Like in the second quarter, Programme 4 TVET had recorded poor performance. All eight targets planned by the department on the third quarter were not achieved which is very concerning to the committee.
Expenditure at the end of the third quarter amounting to R105 billion, including direct charges against the National Revenue Fund. The third quarter expenditure excluding direct charges amounting to R90 billion recording lower than projected expenditure amounting to R644 million or 0,7%. The lower than the projected spending was attributed to delays in transfers and earmarked grants under university education
project programme and compensation of employees in Programme 4.
Hon members, for example, the department reported that target have a draft exception of three-year enrolment plan with differentiation in programme enrolled circulated for consultation by 30 December 2021 was not achieved due to lack of capacity.
The committee enquires about the unique capabilities and requires that redistributing directed concept and the pre- enrolment plan.
Hon members, as the committee we will continue to monitor the implementation of these recommendations to the department. I submit the report for the adoption by the House. Thank you very much, House Chair.
There was no debate.
Declarations of Vote:
Ms C V KING: Hon House Chairperson, to comprehensively improve the postschool education and training system and enhancing the
socioeconomic inclusion, through increasing equitable access, to the country’s tertiary institutions in a weak economic environment is required. For South Africa to grow substantially fast, it needs to address its skills gap by perpetuating inequality and fuel policy uncertainty.
The mixed impact of the financial scheme for fee-free higher education policy has an inequality as well as its high micro economic costs means that South Africa would have to make trade-offs between allocating budgetary resources to support most students to enrol in higher education institutions on one hand and expanding higher education institution admission capacity and improving the quality of education on the other hand to ... [Inaudible.]
To give credence to the Public Finance Management Act, and to the Money Bills Amendment Procedures and Related Matters Act, the committee conducts in year monitoring and assessment of the service delivery and financial performance of the department towards achieving a performance indicators and target set out in the annual performance plan. When a department is slow to make improvements then we have a problem.
The department during the period under review showed little or no improvements on overall performance. Out of the 18 target planned in the second quarter, only nine were achieved.
Out of the 16 targets planned in the third quarter, only three were achieved. Quarter two expenditure amounted to
R70,25 billion and quarter three amounts to R90,94 billion resulting in an under expenditure of R702,2 million and R644,3 million respectively. Overview of 42 and three brought to the fore concerns of poor performance in Programme 4, technical and vocational training, filling of funded vacant posts, delays to pay creditors within 30 days, which impacted
11 Small, Medium and Micro Enterprises, SMMEs. Poor consequence management reporting not following proper procurement processes as indicated by the Auditor-General.
Reprioritising funds from university subsidies and earmarked funds to curb on the National Student Financial Aid Scheme, NSFAS, funding shortfall, guidelines of the Department of Higher Education and Training bursary schemes not approved during the review period and norms and standards of [Inaudible.] housing not approved during the period under review.
Instead of fixing the internal control measures and adhering to deadlines, the department under a constrained budget, is forced to reprioritise funds towards socialist, racialist policy with the aim of slowly but surely limiting public university autonomy and undervaluing the TVET colleges.
Transforming the higher education landscape, entails the creation of systems free from unfair discrimination and artificial barriers to access and success as well as one that is built on the principles of social inclusivity, mutual respect and acceptance.
South Africa with its acute public resource constraints, cannot achieve rapid growth in an environment by thinking that it can follow the traditional model by building and funding new public universities with budgetary resources.
Private institutions should be allowed the space to fill the gap led by public institutions in access to education. The higher education should and must be reformed to ensure alignment with the current trends, structures and processes.
The mess created by the ANC with the merge of higher education institution in the past as notable with the challenges experienced by Walter Sisulu University cannot be left solely in the hands of Minister Blade Nzimande. We should unapologetically defend higher education as a public good and not as a political tool to drive divisive narratives. I thank you.
Mr S TAMBO: Hon House Chairperson, the EFF rejects the second and third quarter performance in expenditure reports of the Department of Higher Education and Training. Once again the reports reflect the carelessness of which the department regards Technical and Vocational Education and Training, TVET, sector which has been a central submission by the EFF whenever we reflect on the quarterly expenditure reports.
The targets for the release of examination results per circle for qualifying students, to be released within 40 days from the last date of the exam timetable was not achieved due to noncompliance with the reporting standards and guidelines.
The target for the circulation of the draft governance standards for TVET college councils’ for consultation by 30 September 2021 was not achieved again due to noncompliance with reporting standards and guidelines.
This is all while the TVET sector faces a systemic collapse in its resolute irregularities in governance. Whilst interventions being made in the appointment of palpably incompetent people in the sector who cannot even draft reports that re up to standard.
At the end of the second quarter there was lower than projected spending of up to R1 billion, constituting up to 15,6% of the budget of the TVET sector programme.
The transfer of R357,3 million to the TVET infrastructure grant was not made further crippling the sector which lacks adequate facilities and trampers qualitative output of learning.
Why does the Department of Higher Education and Training hate the TVET sector so much? The answer is simple. It is the department that has no appreciation of the role of the
vocational sector in the development and one that is determined to deliberately under develop South Africans so that they remain on the outskirts of skills and economy.
We must raise sharply and consistent the need for the support of the TVET sector otherwise South Africa will continue to pretend to be a developmental state, while the State President inspects portholes in places where there are no roads. Thank you, House Chairperson.
Mr S S ZONDO: Hon Chairperson, the Department of Higher Education tool steering the youth of our country towards the prosperous future. Unfortunately, the current leadership in the department lacks the same vision. The performance of the country’s youth and the vision of the reformat is severely impeded by the department’s unsuccessful performance achievement of just 50%. The IFP is deeply concerned with the department’s poor planning and its inconsistency in reporting its targets.
The gross under-achievement of this department is attributed to the delay in the filling of vacancies within the department. This is a serious concern, as it affects the
payment of bursaries and funding of students who are often struggling to complete their studies due to the economic pressure they face. The IFP believes that, the reasons cited are completely unacceptable. In the main department of this Administration and the former, there is a general discrepancy of consequence management and the culture of professionalism is lacking.
Of a bit concern, it has shared the lack of attention page of the consequence management of employees who were responsible for the irregular conduct. For example, the Auditor-General noted that, certain service providers have been appointed without following the necessary processes. Unfortunately, for the South Africans, we can expect more at the next Commission of Enquiry, given the current Administration’s relationship with corruption.
The IFP supports the committee’s recommendation that the department must provide a proper account of explanation in terms of conducting its annual performance plan. It has further suggested that, the department must report to the committee on its progress every month until the next Annual Performance Plan, APP, is due. All funded vacant posts must be
filled for the next APP, and at the same time, report its progress in planning. There should be a report appraising the committee on filling the vacancies.
The IFP believes that, we will not be able to create a trustworthy government that prides itself on an ethical behaviour, unless there is a serious shift towards the implementation of consequence management. Through you, hon Chairperson, Minister, you announced your intention to build two new more universities and more colleges in South Africa, specifically looking at Science, Technology, Engineering and Mathematics, STEM, subjects.
While this is welcomed, we are also asking you to conduct a feasible study into building a university for health profession, as there seems to be desperate shortages of place that we see many of our citizens seeking to pursue study in the former university. The IFP supports the repot. I thank you.
Dr W J BOSHOFF: Hon House Chair, it is something that all parties agree on in this House that, the Post-School Education
and Training, PSET, system, is crucial for the economic development of South Africa. Of course, it depends on the basic education sector, but from there, the Department of Higher Education actually hold the future of South Africa in its hands, and therefore, underperforming.
It is so common and it is reflected in this quarterly report as a shame to the nation. But is worse than a shame, it is harmful. If we look at Technical and Vocational Education and Training, Tvet system, that whole programme in one quarter didn’t even reach one of its goals. It is of course, crucially important to engage the skills we need to build the economy, but this important matter is not reflected in the findings, but the findings are reflected in the performance.
One would then ask the question, was the merger of the old technical colleges in the Tvet colleges effective? Did we gain anything by these merges, or was it only get expanded, inflated bureaucracies? Then we have the Community Education and Training, CET, sector, as the separate programme. It is then a very good question of whether there should have been a separate programme in the first place, because the work down there it could have just been part of the Tvet sector?
Now, about the skills development programme, we said something about that in the previous debate on the Local Government Sector Education and Training Authority, LGSETA, that it actually goes for most by being summarised as not being proud. If you look onto these universities, the university programme is the one that is less controlled by the department and the one-based performing programme. There may be a link on that, the one that is less controlled by the department, actually performs better and not worse.
This of course remains a problem, and in fact, it was acknowledged by the Minister that it is not viable in the long-term in its present form. Therefore, we welcome what is going to be done about that, let’s say it is an improvement. One of the main problem is transformation, which is a very important sector of the economy. But sadly, it is actually a smokescreen for cadre deployment. The FF Plus supports the report.
Mr S M JAFTA: Hon Chair, the Chapter 9 of the National Development Plan, NDP, envisaged education and training
facilities such as Further Education and Training Colleges, Professional Colleges and the Community Education and Training Centres as constituting important element of the post-school system that provides diverse learning opportunities in the country. In light of this, our main contribution turn on the department’s performance under the segment of technical and vocational education and training.
This area of technical and vocational training is seen by government as an important catalyst of bringing the shortages of skills into the economy. It is therefore concerning, hon Chair, that the department’s 2021-22 third quarter target under the Tvet portfolio were not met. What is more troubling is that, the department spent R8,32 billion at the end of 2021-22 third quarter, against the quarterly projected budget of R8,63 billion.
This means that, the department underspends its budget to the tune of R306,8 million or 3,6%. This underspending betrays the lack adequate student accommodation in the Tvet sector, including the recurring anomaly of unfilled funded vacancies. We are also concerned that the draft framework and guidelines to accommodate students with disability, circulated to
stakeholders for consultation by 30 September 2021, is yet to be finalised and adopted.
The recommendations and observations made by the committee must carefully be studied and implemented by the department. We therefore support the report. I thank you.
Mr M G E HENDRICKS: Hon House Chair, we would like to thank the portfolio committee for bringing all these reports to Parliament, reports on higher education, reports on science, reports on innovation. And it gives a better understanding on what is being done in the Department of Higher Education and Training. And it also gives the nation a better understanding what is happening so that we can plan for the future.
Al Jama ah supports the report. Thank you.
Mr W T LETSIE: House Chair, allow me to greet all political parties, also all political parties there. Who did well there in removing a very arrogant Speaker of Johannesburg, but also encourage them not to end there, they must go ahead and visit that mayor who failed to disclose her criminal case to Council.
House Chair, the second and third quarter performance report of the higher education vote, reflects department’s progress in implementing our annual performance plan. The Department of Higher Education and Training is critical, to the nation’s ‘human capability development to build an inclusive economy, which equitable distributes income.
Our higher education system should create sufficient education and training opportunities for the youth. As the ANC we have continuously raised concerns about the capacity of the department to manage and support the post school, education and training sector. Because this sector is vast from Technical Vocational Education and Training, TVET to Community
Education and Training, CET, State Information Technology Agency, SITAs and many other various entities of the department.
This really requires the department to sustain a low level of vacancies in the department, if it is play an effective or efficient role in the public sector, ps. For the second quarter the department achieved 50% of its planned target, which was worrying as it was, but it dropped to 19% in the
third quarter, representing a serious decline in the performance.
One of the reason for this poor performance, according to them is the higher rate of vacancies in the department and another unintended consequence of low human resource support is understanding ... as the department lacks capacity in critical function. We welcome the introduction of an automated recruitment system to improve the turnaround time of filling vacancies.
TVET colleges play a critical role in our economy and we have urged the department to prioritise centres of specialization, which are essential to focus on industries to develop artisans. To advance the industrialisation of our economy, technical skills are at the centre of well-functioning industrial sector.
The National Development Plan has targeted creating one million learning opportunities through Community Education and Training colleges, to produce 30 000 artisans a year. And for TVET colleges to cover about ... [Inaudible.] ... it’s our concern House Chairperson, that we still have students who
have not received their National Student Financial Aid Scheme, NSFAS, allowances since the beginning of the year, this is an unacceptable situation. As this makes students vulnerable to all kinds of exploitation in the system.
Colleges and universities should collaborate to ensure that NSFAS holders receive their allowances timeously, despite the
administrative challenges, as this will support students to succeed in the system.
In our continuous oversight work with the portfolio committee we will continue to ensure that the department implements
consequence management actions and implement its audit action plans. Despite the challenges, the Department of Higher
Education and Training has made significance strides in
children to access to higher education. We are confident that the department will improve ... [Inaudible.] ... as we support
the report, we want close by saying that sober political ... [Inaudible.] ...does not only ... [Inaudible.] ... to hold accountable because ... [Inaudible.] ... are not. We don’t know [Inaudible.] ...
THE CHAIRPERSON (Ms R M M Lesoma): Hon member, your connectivity has got a serious challenge. It seems like you have disappeared ... No, allow me to continue. The platform, he has been kicked off, the system ... hon Chief Whip... no we heard that. Hon Chief Whip, I would like to recognise you, if I may.
Debate concluded.
The CHIEF WHIP OF THE MAJORITY PARTY: Apology House Chair, House Chair, I move that the Report be accepted by this House. Thank you very much.
Question put. That the Report be adopted.
Motion agreed to.
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION, SCIENCE AND INNOVATION ON PERFORMANCE OF 2021-22 SECOND AND THIRD QUARTERS OF DEPARTMENT OF SCIENCE AND INNOVATION
Ms N T MKHATSHWA: Hon House Chairperson, hon members, citizens of South Africa, on 4 March 2022, the committee considered the 2021-22 second and third quarters financial and nonfinancial performance of the Department of Science and Innovation. The department’s 2021-22 budget allocation increased from
R7,3 billion in the 2020-21 financial year to R8,9 billion, this represented when I just did for inflation a real increase of 17,8%, and closely returned the department’s allocation to what was in 2020 before the budget cuts to meet the needs of a national COVID-19 pandemic response. At the end of the second quarter the department has spent 51,6% of the available budget. At the end of the third quarter the department has spent 75% of the available revised budget. For the second quarter the department achieved 81% of its performance output targets and for the third quarter the department achieved 69% of its performance output targets.
We must note that of its R22,6 million spent for the third quarter, 44% was spent on small, medium and micro-sized enterprise SMMEs, with 79% on black-owned companies, 30% on women-owned companies and 8% on youth-owned companies. This are not cumulative percentages, but rather reflect the nature
of the companies benefiting from the department’s procurement’s expenditure.
It must also be noted that the department takes an average of
10 days to pay all of its invoices. We also requested the department to give us quarterly reports on their progress in relation to the audit action plan and we are satisfied with the actions underway and the progress achieved to date. The committee must acknowledge some of the key achievements of the Department of Science and Innovation over both quarters.
The SA Health Products Regulatory Authority approved their project to locally develop COVID-19 Rapid Antigen Tests, thus these tests can now be manufactured. This project is funded by the Department of Science and Innovation and the Technology and Innovation Agency, TIA, and managed by the SA Medical Research Council.
Our capability to manufacture these tests locally will also result in their affordability. At the University of KwaZulu- Natal, we note the mechanical engineering masters and doctoral students at the Aerospace Systems Research Group who designed and successfully tested a powerful liquid propellant rocket
engine as the first step towards developing a launch vehicle for placing satellites into earth orbits.
As the committee always stresses the importance for science and innovation to have a direct impact on the socioeconomic realities of citizens, the Grassroots Innovation Programme of the Department of Science and Innovation remains quintessential. We acknowledge that the department under this programme was able to facilitate access to multi-tier support packages to a 111 beneficiaries, ensure that through commercialisation that unemployed graduates emerged as entrepreneurs, forged partnerships with other government and private sector agencies in tourism and insurance sectors and successfully launched 10 innovative products into market during youth month.
We also note that five of the successfully commercialised products are owned by women innovators under the age of 35 and that many of the products supported through the Grassroots Innovation Programme provided market solutions to real life problems in areas such as gender-based violence and safety through personal tracking devices to counter human trafficking and kidnapping of kids in schools in other fields such as skin care and wellness.
We also welcome the awareness and advocacy work of the department in ensuring that we place a gender ... [Inaudible.]
... on science and innovation, and demystify, Chief Whip, any ideas that science is not for women and that science and innovation is a poppy white boys choir. We welcome efforts by the department to have conversations around women and the changing nature of work, women and their role in debunking COVID-19 vaccines, technopreneurs with a gender perspective, advancing diversity through the inclusion of women in science, technology, engineering and mathematics fields.
Colleagues, we also welcome the signed agreement of the Square Kilometre Array Observatory, SKAO, between Australia and South Africa to host telescope and associated infrastructure. These documents formalise the arrangements for construction and operation of the Square Kilometre Array, SKA, telescopes in the two host countries. And we all know how important it is for us to ensure that this project is inclusive of young people from those small dorpies [towns] in Carnarvon and Sutherland in the Northern Cape.
Another concern pertains to slow uptake or non-uptake of the department’s innovations by other government departments and by private sectors. This is where we really want to see that the ... [Inaudible.] ... play a very pivotal role in co- ordinating and integrating science and innovation across spheres of government and most importantly co-ordinating the various budgets of different departments. I am not lobbying department’s now, but I would really need to see that budget being earmarked for science and innovation. There is a really role in driving a technology-led industrial and socioeconomic development for our country. This report is tabled before the House for consideration and adoption. Thank you so much, House Chair
Declarations of vote:
Ms C V KING: ... [Interjections.] ... by placing science, technology and innovation at the centre of South Africa’s developmental agenda, we have an opportunity to ensure that the country becomes a global centre for science and innovation. We need solid investment in skills development in different industries and a firm commitment to increase the
number of students studying science, if we are to promote scientific excellence and its economic benefits.
Though South Africa has made a significant contribution to the technological innovation worldwide, the country remains heavily dependent on imported technology. South Africa’s GDP investment on research and development will have to reach 1% to meet its aspirations of being the innovation hub of the continent. Unemployment in the country is classified the highest in the world and our growth rate remains low to meaningfully create opportunities.
Therefore, to ignite the industrial and research application of the Fourth Industrial Revolution, we need to increase investment in human capital and identify key areas of the economy which requires investment. A technocratic future can only be assessed when government adopts an innovationist approach.
One of the key issues highlighted in South African Science, Technology and Innovation Indicators Report was that South Africa needs to increase the number of recess and technicians it has at ... remain globally competitive in innovation. The
Department of Science and Innovation call to action during the advent of COVID-19 ensuring vaccination production world-class research on the genomic features of the virus and ventilator production is a precursor to the impact of science and research output when the right funding is secured. The
R8,9 billion allocated for the 2021-22 financial year meant the allocation remains the same as in previous years and the department had to use the small allocations effectively.
The reprioritisation of funds where Medium-Term Expenditure Framework, MTEF, supports technology localisation, beneficiation, advancement manufacturing and research from a National Research Foundation. During the period under review, significant virements and shifts were affected to meet South Africa’s obligation for the Square kilometre Array capital contribution totalling R215,7 million from the Technology Innovation Agency, the Green ... [Inaudible.] ... from the Council for Scientific and Industrial Research, CSIR, infrastructure research development.
The continued use of virements across programmes highlighted poor planning in some areas which can potentially lead to internal control deficiencies. The department achieved 815 of
the second quarter targets and 69% of its third quarter targets acknowledging the negative trajectory of its financial performance which was attributed to poor planning and target formulation deficiencies and the underfunding of its financial obligations. The department submit the comprehensive written responses on measures put in place to avoid this in the future.
Provincial departments and municipalities should embrace the chronological advancements and innovations in their operations. We saw how Kouga Municipality was the first on the African continent to develop a plastic road and how they revolutionise the housing industry with their 3D printed housing project. The Western Cape took it a step further by positioning Cape Town as Africa’s tech capital with the technology start up on the continent. The Cape Town- Stellenbosch region already employ double the amount of people in a tech sector with both Nairobi and Lagos combined.
Innovation doesn’t just come from giving people incentives, ANC. It comes from creating environments where ideas can connect. Innovation is doing new and exciting things for the betterment of society. I thank you.
The CHAIRERSON (Ms R M M Lesoma): Hon members, I just recognised the EFF. [Interjections.] Hon members, may we have order. You may proceed.
Ms N N CHIRWA: Thank you, Chairperson. The EFF rejects this report. For the past financial year, the Department of Science and Innovation was given R8,9 billion to run its operations.
While the allocation for innovation projects was increased to R503 million, the department ... [Inaudible.] ... cannot pinpoint major innovation projects that were initiated exclusively by black scientists in this country. The department like almost all other government departments is simply a front for the advancement of established and ...
The CHAIRERSON (Ms R M M Lesoma): Hon member, just one minute. Information technology, could you please assist us. If anyone has a microphone on the platform switch it off please. You may proceed.
Sepedi:
Moh N N CHIRWA: Le se ke la mphaphela.
English:
The department like almost all other government departments is simply a front for the advancement of established and vested white interest in the science and innovation space. The same goals for its continued funding of the mining research and development component of the Council for Scientific and Industrial Research, CSIR, this work does not result in a coherent plan for local beneficiation of our mineral resources.
We still ship raw mineral resources out of the country, only to import them as finished products at inflated prices. This inability to develop a utilised internal capacity to process our minerals means that we will forever be at the receiving end of US imperial machinations, and this strips us of our own sovereignty. If we had leadership in this department, focus now will be shifted to intensive vaccine research in order for the country to be in a better place and to be better prepared with future health pandemics. The department still has a very high vacancy rate, still misses own targets and fails to utilise funds despite the fact that this committee has
previously asked for more funding to be channelled to the department. We reject this report.
Mr S S ZONDO: Chairperson, few a years ago when the former Science and Technology Department merge with Higher Education we expected that this will bring about historically of programmes and development across the board. Unfortunately, this has not materialised and it seems as both are working in a silo.
The department perform one of the most critical functions in our country as it gives substance to the development agenda of our country and its economic needs.
According to Science and Innovation as listed under the votary pipe the department has had an increase in the budget of roughly R9 billion in 2021-22 financial year. Despite the increase the department has failed to meet the target as it set for itself in four out of five programmes.
The poor performance in not achieving its target will have several severe consequences in terms of infrastructure
development and substance. This department need to hold its entities or impending bodies who are not meeting the submission deadline and accountable. Unless there is a good reason not to do so, the IFP believe that accountability needs to be rooted in every aspect of work within the public service.
Moreover, planning is vital for the successful of each department in meeting its targets. The number of vacancies indicated that there are lack of planning exist in the department. It is vital that the large number of vacancies are filled and the department work tirelessly to ensure that they conduct their due diligent when undertaking the selection and appointments processes. The vacancy in the department accounts for about 16% of all posts living the severe gap and shortcoming in meeting the service repetition.
The details around the irregular expenditure as well as consequence management are quite concerning for the IFP. The department must present the details to the committee for parliamentary conducts sufficiently oversight on how these matters are dealt with. The IFP will not tolerate the lack of accountability and transparency by the department especially
when it comes to public funds. The IFP support the report. Thank you.
Dr W J BOSHOFF: Hon House Chairperson, I just want to start by informing hon Majozi and our friends in the red that if you have a good report on a bad situation there can still be a good report. Say if somebody report about something in a mattress - you don’t need something under the matrass but you support the report.
If we look at science and innovation, we could say science is a way of knowing but innovation is a way of thinking. It’s actually a kind of a cultural thing, how do you deal with things around you with less or with more technology but how does the mechanics in your head work.
Say of you spend about R10 billion in science and innovation but you spend R360 billion on social grants then it means that you created culture of social dependency rather than a culture of innovation. And that is a very fundamental problem that we have to deal with in South Africa.
Now vacancy is actually the key word. If you go through this quarterly report the number of vacancies is a recurring scene. And if you don’t have the people you can’t spend the money and that is why underspending is also a recurring scene. And also the shipping around of money, which I must acknowledge to call it a violent. It sounds much more scientific than just saying you have just to give one situation money to another.
Now this department actually has a ridiculously low budget if you consider what it has to do, it has to do pioneering work in astronomy, in the use of technology, in social sciences, in meteorological sciences. That is a very difficult word to pronounce by someone who grew in Pretoria. Business support for small emerging businesses and even the support of students because National Student Financial Aid Scheme, NSFAS, doesn’t support post graduate students. All that has to be done with the R10 billion and still all the money could not have been spent. That’s actually a very big problem. And because that report tells us all about those vaccines, we support the report.
Mr B S YABO: House Chair, it is sad that beauty lies in the eye of the beholder. On those who are overly critical of
beautiful things must visit the ophthalmologists soonest to get their eye sight checked. Resent global development from the health pandemic to climate change disasters has demonstrated the significance of science and innovation.
Nations that have invested in science and innovation have reaped the rewards as their science played a pivotal role in their response to multiply crisis.
Our science and innovation system and scientist have reason that the demand of the complex challenges facing humanity and our country. As a country, we contributed to the body of knowledge as the world garbled with the Coronavirus. As you would now remember, it was a team of scientists from our shores that picked up the variant Omicron and we must applaud them for that feed.
We must recognise that the department’s vote for Science and Innovation increased from R7,3 billion in the 2020-21 financial year to R8,9 billion, which is a positive development. But this is insufficient to advance the trust of the mandate of the department in research and development remains a key priority focus for the ANC because of its capacity to be a catalyst for socioeconomic transformation.
The growth of the digital economy is one area that can harness innovation reflecting continues technological changes. The development of vaccination capacity through BioVec and its role in the distribution of vaccines across the country has demonstrated that the state can play a developmental role and productive highly specialised sectors.
We shall continue to assess the performance of BioVec and its development trajectory. The private sector and the state are involved in BioVec, which is a success. The department should consider venturing into other specialise economic industries such as the manufacturing of satellite on a large scale.
Hon members, as the ANC we have emphasise the importance of promoting access to science projects for the department to focus on resolving challenges facing our local communities.
Research development and support is a critical programme at the department which provide support to the research capacity of our country and provision of support for research through the National Research Foundation, which support thousands of post graduates and offers various research grants.
The department did not achieve several targets for the second quarter and understand the challenges faced by the department were mainly due to factors outside their control whilst one was due to ineffectiveness of the implementation.
The problem of understanding is a common trend across various departments reflecting weaknesses and planning and the weakness of project implementation.
In the current context of low economic growth and recovery from economic impact of the Coronavirus pandemic, we expect the department to hasten implementation as part of stimulating economic recovery, prevalence of vehemence and underspending require the department to plan operations thoroughly to meet targets timeously.
The Department of Science and Innovation is one of the most efficiency departments. Can I repeat that. This department is one of the most efficient department characterised by good governance. We should give credit where credit is due. [Applause.]
One of the significant programmes of the department is in support in technology innovation through the technology innovation agency. The entity is facing performance challenges to deliver its mandate but we welcome the intervention by the department to review the entity’s functionality.
In our engagement with the department, we emphasise the importance of supporting innovators by providing incubators an accelerate programmes to advance their commercialisation and contribute to the economic development of our country.
The allocation of R32 million to appoint 900 unemployed graduates through the Water Research Commission, Water Graduate Employment Programme is aimed at improving employment readiness in the water sector and the training of 250 graduates at the Council for Scientific and Industrial Research, CSIR, to support the council and various fields are important programmes to applaud. We do so because they create an opportunity for a young graduate and unemployed youth to join programmes that generate work and other economic opportunities.
Our public institutions have a critical skill development role and various private sector entities in science and innovation should create work opportunities for young people, women and people with disabilities.
We welcome the increase in the allocation for the square kilometre array and the Council for Scientific and Industrial Research on mining research and development from R41,
7 million to R63, 5 million. Although the increase may seem mini-skew but it is a step in positive direction at the National Integrated Cyber Infrastructure System, which is allocated R3, 6 billion over the medium term.
The ANC support the report as it reflects the key issues raised by the portfolio committee and importantly the recommendations which should orientate a strategic focus on areas of weakness and to further excel in their programmes as they largely do. We support this programme. Thank you very much.
The CHIEF WHIP OF THE MAJORITY PARTY: House Chair, I move that the House adopt this report. Thank you.
Motion agreed to (Economic Freedom Fighters dissenting).
Report accordingly adopted.
CONSIDERATION OF REPORT OF PORTFOLIO COMMITTEE ON HIGHER EDUCATION, SCIENCE AND INNOVATION ON COMMISSION FOR GENDER EQUALITY REPORT ON GENDER TRANSFORMATION INVESTIGATIONS IN TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING COLLEGES
Ms N T MKHATSHWA: Hon House Chairperson, hon members and citizens of South Africa, for the last time this afternoon, good afternoon.
If we reaffirm education as an apex priority of our pro poor policies and the essential pillar of our fight against poverty, inequality and unemployment, with a population that is predominantly young and female, we must ensure access to education for young women.
The enrolment figures in the Technical and Vocational Education and Training, TVET, programme indicate that women are in the majority – I think it is about plus minus 66% - yet
like in many microcosms of our society gender transformation remains a concern, that’s placing a focus on the need to ensure that success of young women in the TVET programme as part of ensuring the active participation of women in the economy.
Despite legislation, policies and plans, the pace of gender transformation is not at the speed that the socioeconomic realities of young women warrants.
After engaging with the Commission for Gender Equality, CGE, on its investigations in the university programme, we recommended that the CGE investigates the TVET colleges as well. The CGE heeded to our request to look into TVET colleges and reported to the committee.
We have noted the recommendations to the department, to the colleges that were investigated, to the sector and related stakeholders. We appreciate the work of the CGE as an enabler to our oversight on gender related matters in the sector.
Already stemming from the concerns in this report, we have met with the Northern Cape Urban and South West Gauteng TVET colleges.
The CGE had hearings with four colleges being Nkangala, Northern Cape Urban, South West Gauteng and Waterberg. This was the first ever gender transformation investigation report that was done on TVET colleges. It was concerning that some colleges did not comply with the CGE’s request to appear before the commission and some were underprepared despite being informed timeously of the documents required by the commission.
With only eight women principles out of 50 TVET colleges, key observations coming out of the CGE report was that there is still underrepresentation of women on senior management positions in TVET colleges. There is poor representation of persons with disabilities in administration and academia of colleges. There are insufficient resources to support gender transformation because the function is of national competence. Also key from the observation is that the sexual harassment policies of colleges are not aligned to the Code of Good Practice of 2005.
We also raised concerns on the suitability of TVET colleges’ infrastructure to cater for the needs of persons with
disabilities but also to play a gender ... [Inaudible.] ... on infrastructure development, in particular student accommodation because we should understand the correlation of student accommodation with the safety of students, in particular young women.
Out of our deliberations with the CGE, the committee recommended that we break the silos in the sector and have the CGE and Department of Higher Education and Training, DHET, to work closely together. The department must assist TVET colleges with the necessary capacity required to develop and implement their own gender transformation, sexual harassment and gender-based violence and femicide, GBVF, related policies and programmes. Where there are policies, they must be reviewed and implemented. Where there is none, they must be formulated collectively by students, staff and academics, lifting the need to have a dedicated unit of the department that will monitor the implementation of gender transformation and the national policy framework of gender-based violence and femicide within the entire TVET system.
Out of this briefing, we implored the department to have a summit on gender related matters particularly in the TVET
programme. We are happy to say that in July, the TVET industry partnership summit of the department, they dedicated Day 2 of the programme to these particular discussions.
What we have agreed to as a committee is that, we, in fact, should have a sectoral engagement on gender-based violence and femicide and various gender related matters in Higher Education and Training. We further recommend that there must be safe spaces on campus to deal with GBVF and related matters. We must also develop mechanisms to track and manage cases of GBV within and outside campuses. We must establish relationships with local SAPS. This is very important.
We also had a joint committee meeting with the Portfolio Committee on Police and Women, Youth and Persons with Disability to ensure that there is collective effort in ensuring the success of women students. There is no particular department or portfolio that can be responsible for ensuring safe communities for women in our country. Therefore, there must be collaborative work and effort put together by various departments. We will continue to have these joint portfolio committee meetings to see how we can work together as different spheres on addressing these matters.
Colleagues, we understand that patriarchy and misogyny are social contracts that must be intentionally deconstructed. Our education and training institutions are responsible not only for providing skills and knowledge, but as Paulo Freire argues: “to create whole human beings and shape society ...” on such we recommend mandatory inclusivity and gender sensitivity training for first year students, returning students, new staff and current staff. The committee places this report before the House for consideration and adoption.
Thank you, House Chair.
Declarations of Vote:
Ms N I TARABELLA MARCHESI: House Chairperson, first of all, I would like to commend the CGE for undertaking to conduct their first ever gender transformation in the TVET sector and to also reiterate that these investigations must be ... [Interjections.]
The CHAIRPERSON (Ms R M M Lesoma): Hon member, one second. We are only seeing half of your head. If you can set your screen
properly because it is disturbing the House or switch off the video. Thank you. You may proceed.
Ms N I TARABELLA MARCHESI: ... extended to all sectors or institutions, including the Community Education and Training, CETs. The only way this can be achieved is to adequately fund the CGE as it is grossly under resourced and underfunded.
The work of the CGE is highly crucial in this country. It is one of the catalyst in the equation of combating gender-based violence and femicide, a pandemic that is truly worrying. It is therefore a concern when the CGE visits an institution like the South West Gauteng TVET college where it was treated with disdain, where officials showed lack of preparedness and disregard in the CGE and not co-operating in such an investigation because they feel it is not worthy to report to the CGE.
As a Chapter 9 institution, the CGE has equal standing like any other Chapter 9 institution and deserves the respect afforded to any such institutions. I hope the Minister has addressed this issue at this institution as promised.
During their reporting, the CGE observed the person with disability continue to be excluded from management and academic positions. More needs to be done to include persons with disabilities who are fit for purpose into these spaces. Most institutions are not equipped to accommodate persons with disabilities. This is why it is important that the Disability Bill that is heading to Parliament is discussed in Parliament.
The other issue is gender mainstreaming offices. Gender mainstreaming are important in order for institutions to have platforms where they can be able to discuss gender-based violence issues and also to discuss issues of consent within campuses and outside campuses.
Lack of resources to support gender transformation was also brought to light. In fact, this was observed in all four TVET institutions. It was also found that there were subjects for the deaf and the visually impaired resources were also lacking.
The sexual harassment definition of the colleges were not in line with the Code of Good Practice on handling sexual harassment cases in the workplace. Lack of training and education on gender-based violence was also missing. Also of concern was lack of disaggregated data on remuneration of employees, which means that they need to compile gender ... and raise this aggregated data to the requirements of equal pay for equal work. What was also concerning was that the policies were not gender sensitive. There is lack of training on sexual harassment for students and staff members. There was also lack of inadequate disciplinary processes. Employment equity also lapsed. That needed to be renewed.
This report clearly shows the concerns that South Africans have given how gender-based violence is not really spoken about as South Africans would have hoped yet institutions within higher education are the ones that can be used to advocate for gender-based violence.
The outcry of South African women still continue because if institutions of higher learning don’t take gender-based violence seriously, then it means that this government is not
sincere and honest, and it lacks the intent to fight gender- based violence. Thank you, House Chair.
Ms N N CHIRWA: Greetings to the commander-in-chief, Julius Sello Malema, all the officials, commissars, fighters in the diaspora and empathisers of the only movement in South Africa that cares about the livelihoods of young people in this country.
As with all the other ailing and debilitated departments ruined by the ruling party, the political heaven of thugs and murderers, this report is concrete evidence of the chronic failure of Minister Blade Nzimande who has subjected the young people of this country to together with the Commission for Gender Equality whose only job has been reduced to reports and recommendations it cannot defend like other Chapter 9 institutions and still have the integrity like the Auditor- General SA, AGSA, and the Public Protector when it was still led by Adv Mkhwebane.
The CGE embarked on investigative hearings selecting four TVETs to appear before it; Nkangala TVET, Northern Cape TVET, South West Gauteng TVET AND Waterberg TVET concerning issues
of transformation. These visits and hearings by the CGE bear absolutely no positives as these TVETs are still triumphed by managerial crisis and funding issues that see money leave the pockets of taxpayers and end up in the pockets of the political elites through tendering systems that don’t benefit the youth of this country.
Women and queer people’s lives in TVET colleges. Every other institution of higher learning in this country is constantly an issue that is being negotiated. Gender equality is still a distant dream despite the fact that the majority of students in this country in higher learning institutions are women.
Trusting Minister Blade Nzimande with the project of transforming our institutions is equivalent to trusting hyenas in the wilderness with the duty of protecting leftovers of lions. The CGE knows this but will continue doing absolutely nothing to resolve this as they pledge their allegiance to the powerful man and to the ANC and not the women of this country who abused, raped and violated with no consequence against perpetrators in our TVETs and institutions of higher learning.
The CGE is an accomplice because like with all other reports, Ministers have ignored, from the rapes of 9-year-olds who are
carrying evidence of their rape with pregnancies in our schools and the forced sterilization of HIV positive black women by the ANC government. The CGE has an opportunity to take all these lazy Ministers like Blade Nzimande to court and force them to implement recommendations but they will not do this because comrades come first, and persons with disabilities, gay people and victims of rape all come second. We reject this report, we reject the CGE and reject Blade Nzimande indefinitely like we reject all the political projects of the Phala Phala mafia masquerading as Ministers when they are gangsters and thugs in suits. Thank you very much.
Ms P MARAIS: Chairperson, on a point of order: Can you speak to your ... cadres of the ANC because anytime that they talk we are quiet but when we talk then they make a noise.
Mr S S ZONDO: Hon Chair, given our country’s ongoing struggle with curbing gender-based violence and femicide, it is pivotal that gender mainstreaming ... [Interjections.] ...
IsiZulu:
... Okubuhlungu ukuthi njalo iyakhala i-EFF uma sibhekana nayo.
English:
The CHAIRPERSON (Ms R M M Lesoma): No, hon member, they were assisting you. You were not quite audible. [Interjections.]
IsiZulu:
... mhlawumbe nje ephuzwini lokulungisa lapho, angifiki sisi, kade ngabakhona la.
English:
Considering the eruption of ... [Inaudible.] ... rate relating to sexual violence on campuses of higher education institutions in 2016, it is evident that there is an urgent need for gender transformation on campuses. In consideration of the report, the IFP wants to reiterate its support for the Commission of Gender Equality’s initiative to differentiate between the institutions of higher education and focus on Technical and Vocational Education and Training colleges who are often neglected.
However, we wish to raise our concern regarding the lack of sexual harassment policy aligned with the 2005 Code of Good Practice. It is troubling that two of four TVET colleges did not use the 2005 Code of Good Practice as a guiding document to address issues of sexual harassment. As the code was created to provide an appropriate procedure to deal with sexual harassment and prevent its recurrence. We are also concerned about the lack of collaboration between the Department of Higher Education and Training and the relevant government departments on shared issues.
The implementation of gender mainstreaming will continue to come second if government departments continue to operate solo, especially in relation to issues such as employment equity in TVET colleges. A further concern we have is the lack of structures dealing with the transformation programme in TVET colleges. The transformation of institutions, especially with a focus on gender, will be near impossible without the policy framework that can ensure continuity, accountability, and transparency in the implementation of equality.
The IFP recommend that the Commission for Gender Equality, CGE, mandate the alignment of sexual harassment policies in
TVET colleges to the 2005 Code of Good Practice as this will ensure that a standardised approach is taken in relation to the procedure and prevention of sexual harassment.
Furthermore, we recommend that the commission call up all the relevant government departments to capacitate the necessary outstanding policies related to gender and transformation.
We also wish to reiterate the committee’s recommendation for the establishment of transformation offices as these offices will serve as an overseeing authority responsible for the implementation and evaluation of gender transformation policies and programmes. In conclusion, the IFP wishes to stress the importance of implementing in ... general on issues of transformation in TVET colleges and approach this form of transformation collectively through the ... The IFP accepts the report. [Time expired.]
Mr P A VAN STADEN: Hon, Chairperson, can we request to complete this ... speech after another party has spoken? Is that possible?
The CHAIRPERSON (Ms R M M Lesoma): Okay. [Interjections.]
Mr S N SWART: House Chair, the ACDP welcomes this report given the high levels of sexual harassment that we have in the workplace and of course the gender-based violence that we have at universities as well. But it is a matter of concern when one sees in the report that the sexual harassment definition of the college, this particular college, but it seems to be across the board was not in line with the code of good practice on hand in sexual harassment cases in the workplace. And we know that does happen in many aspects of workplaces.
And, therefore, this is a matter of great concern. I think the other issue of concern is that only a small number of colleges were visited, four out of a possible 30. And so on ... although this is a sample, I am sure that there are a lot of deficiencies in other colleges.
There is a regrettable typing error as well, where there is an indication that the college did not offer subjects for dead or visually impaired students. I think it should read deaf with due deferment to our hearing-impaired students as well. So, the ACDP with these few comments supports this report and looks forward to an improvement in fighting gender-based violence at our institutions. I thank you.
Mr P A VAN STADEN: There is no declaration. Thank you, Madam Chair.
The CHAIRPERSON (Ms R M M Lesoma): Oh! After waiting so long? Okay. Never mind.
Ms D P SIBIYA: Chairperson, greetings to hon members, South Africa is a patriarchal society which excludes women in different aspects of social, economic and political life. The colonial and apartheid systems have entrenched systems which have placed women on the periphery of things. The democratic government has developed a gender machinery which has placed gender equality at the centre of transformation.
The ANC has identified women’s empowerment and women’s emancipation as a priority to address the development and implementation of policies and legislation which create an environment for gender transformation. The Commission for Gender Equality, a Chapter 9 institution, plays an important role in ensuring that it monitors and evaluates policies and practices in state organs at any level and recommends Parliament. The Committee for Gender Equality ...
IsiZulu:
... yabe isiphenya ikakhulukazi amakolishi ama-TVET yabe isiza nezincomo.
English:
The investigation hearings special by the CGE constitute a significant test of the progress of gender transformation through a method which enables the voices of various stakeholders in the college. It is one thing to have a framework to advance gender transformation and another thing to transform an institution and its people only through a work environment. The practice of people is the product of various influences from different social institutions which have shaped their conduct and understanding.
Workplaces and student spaces are not immune to the broader social challenges. Hence the implementation of gender policies is an imperative we should realise. It is with great concern that the situation reported by the CGE showed that in Nkangala TVET College, 10% of administrative positions and no academic positions are filled by persons with disabilities.
IsiZulu:
Ibuhlungu-ke leyo.
English:
The college also had no mechanisms to track and manage gender- based violence cases within and outside the school. The lack of a mechanism for gender-based violence reflects the challenges of college management not being systematic in addressing matters prevalent in our society and colleges.
Inclusivity also requires intentionally taking strides to recruit people with disability who continue to be marginalised without intentional effort to include them in public institutions and the private sector.
At the Northern Cape Urban TVET College, the sexual harassment definition of the college was not in the line with the Code of Good Practice on handling sexual harassment cases in the workplace of 2005. This unfortunate circumstance exposes a weakness in the application of policies and a lack of undertaking policy reviews. This can potentially prejudice victims of sexual harassment. The fact that the CGE found that
the college demonstrated a lack of training and education on gender-based violence and related topics showed a weakness of awareness on how to respond and handle gender-based violence matters which can potentially create an environment which ... [Inaudible.] ... gender-based violence in colleges.
The investigation hearings of the South West Gauteng TVET College could not be undertaken due to a lack of preparedness by a representative of the college. This is a worrying factor as the conduct of the college undermines the constitutional mandate of the CGE and decisive action ought to be taken against the management of the college. The Waterberg TVET College did not have gender-sensitive policies and had a lapsed employment equity plan. The college did not have an institutional approach to dealing with transformation and had several outdated labour policies.
What is ... [Inaudible.] ... from the report is that the TVET colleges require a comprehensive process of ensuring that all the TVET colleges’ sexual harassment and employment equity plans are up to date to ensure the colleges advance gender transformation. Institutional capacity, such as transformation offices and resources to drive gender transformation plans are
an essential component of ensuring colleges comply with laws and regulations related to gender transformation. We recommended that the department strengthens its gender ... [Inaudible.] ... in the post-schooling education and training sector in line with the National Policy Framework on Gender- Based Violence and Femicide. And that the CGE should investigate other Post School Education and Training, PSET, institutions such as Setas. We further recommended the department include the monitoring of the gender-based violence framework in its annual performance plan.
IsiZulu:
Sengivala, Sihlalo ...
ILUNGU ELIHLONIPHEKILE: Inganekwane!
English:
Ms D P SIBIYA: The ANC supports this report to ensure that the department implements the CGE recommendations and of the portfolio committee to strengthen the gender transformation machinery and protect vulnerable women and people with disabilities.
IsiZulu:
Ngiyabonga, Sihlalo.
The CHIEF WHIP OF THE MAJORITY PARTY moved: That the Report be adopted.
Motion agreed to (Economic Freedom Fighters dissenting).
Report accordingly adopted.
MISUZULU KAZWELITHINI CROWNED AS KING OF ZULU NATION
(Draft Resolution)
Mr B M HADEBE: Chairperson, on behalf of the gigantic ANC, I moved without notice:
That the House –
(1) notes that Misuzulu Zulu kaZwelithini was crowned as king of the Zulu nation in a traditional ceremony on Saturday, 20 August 2022;
(2) further notes that 47-year-old Misuzulu Zulu ascended to the throne once held by his late father, Goodwill Zwelithini kaBhekuzulu;
(3) recalls that thousands of people gathered at the KwaKhangelamankengane Royal Palace on the day to witness the crowning of a new king;
(4) remembers that on the preceding Friday night, Misuzulu had entered the palace’s “cattle kraal” where he took part in a sacred ritual designed to present the new monarch to his ancestors;
(5) understands that in the following month, he is to be hosted by the government for a state ceremony at Moses Mabhida Stadium; and
(6) congratulates King Misuzulu Zulu kaZwelithini on ascending to the throne. Wena WeNdlovu Bayede!
Agreed to.
PASSING AWAY OF MS LORRAINE BOTHA
(Draft Resolution)
M.Gen O S TERBLANCHE: Chairperson, on behalf of the DA, I hereby moved without notice:
That the House –
(1) notes with sadness the sudden passing of Ms Lorraine Botha on 31 August 2022;
(2) further notes that Ms Botha was elected to the Western Cape Provincial Parliament in 2014, and served as the Chairperson of the Standing Committees of Education, Social Development and Premier and Constitutional Matters;
(3) acknowledges that Ms Botha was appointed as Chief Whip of the Democratic Alliance’s Western Cape Caucus in May 2022, and also served as a
constituency head for the Bergrivier Local Municipality;
(4) recognises the big contribution that Ms Botha made in serving the residents of the Western Cape;
(5) recalls that her husband also sadly passed away in January 2022; and
(6) conveys its heartfelt condolences to the family, friends and colleagues of Ms Botha. May her soul rest in peace.
Agreed to.
BOIKHUCO OLD AGE HOME DILAPIDATED
(Draft Resolution)
Ms Y N YAKO: Chairperson, on behalf on the EFF, I moved without notice:
That the House –
(1) notes that Boikhuco Old Age Home facility in Bloemfontein is one of the few old age homes that cater for the elderly in the townships;
(2) further notes that its infrastructure and facilities were found to be old and dilapidated, and affected the livelihood and dignity that should be afforded to the elderly;
(3) acknowledges the contribution by the Economic Freedom Fighters to help with renovations and refurbishment of the facilities as part of its giving-back efforts in celebration of the organisation’s 9th anniversary;
(4) recognises that such improvements to the facilities give dignity to the elderly and improve their quality of life;
(5) further recognises the work of all caregivers at Boikhuco Old Age Home and all other old age homes across South Africa who look after our elderly; and
(6) calls on all stakeholders, particularly civil society, with a role to play to ensure that the dignity and quality of life for the elderly is made a social priority.
Agreed to.
CONGRATULATIONS TO TETE DIJANA
(Draft Resolution)
Ms N G ADOONS: Chairperson, on behalf of the ANC, I moved without notice:
That the House -
(1) notes that Tete Dijana from South Africa won the 95th Comrades Marathon on Sunday, 28 August 2022;
(2) further notes that the Nedbank Club runner stormed to victory, beating his teammate and defending champion, Edward Mothibi;
(3) acknowledges that Dijana, a security guard from the North West, finished the race in 5 hours, 30 minutes and 38 seconds, while Mothibi finished in 5 hours,
33 minutes and 46 seconds;
(4) further acknowledges that Nedbank Running Club’s dominance in the event was highlighted by the fact that five of the top ten all belonged to the club; and
(5) congratulates Dijana on his well-deserved win.
Agreed to.
PRINCE MANGOSUTHU BUTHELEZI FOUNDATION LAUNCHED
(Draft Resolution)
Mr N SINGH: Chairperson, on behalf of the IFP, I moved without notice:
That the House –
(1) notes the launch of the Prince Mangosuthu Buthelezi Foundation at the Inkosi Albert Luthuli International Convention Centre in Durban on Thursday, 1 September 2022;
(2) further notes that the Foundation exists to preserve the legacy of Prince Mangosuthu Buthelezi in its diverse entirety and, through his life philosophy and principles, to work towards contributing to a better South Africa, Africa and the world at large;
(3) congratulates the Foundation on its chosen objectives of promoting the virtues of nation- building, constitutionalism, justice and inclusiveness;
(4) commends the Foundation on its collaborative first project to create a digital archive of all the documents, correspondence and artefacts that have crossed the desk of Prince Buthelezi in his long public life, thereby preserving history and making it accessible to anyone interested in South Africa’s journey from oppression to freedom; and
(5) welcomes the emergence at the launch of hope for reconciliation finally being accomplished between the Inkatha Freedom Party (IFP) and the African National Congress (ANC), in light of the KwaZulu- Natal ANC’s congratulatory statement to Prince Buthelezi on his 94th birthday on 27 August 2022.
Agreed to.
NATIONAL TOURISM CELEBRATED
(Draft Resolution)
Mr I M GROENEWALD: Chairperson, on behalf of the FF Plus, I moved without notice:
That the House –
(1) notes that South Africa celebrates national tourism month during the month of September, providing a heightened month-long focus on the importance of the sector to the South African economy;
(2) further notes that International Tourism Day is celebrated annually on 27 September 2022, as has been done each year since 1980, and that the theme for this year’s celebrations is: Rethinking Tourism, with an emphasis on highlighting the shift towards tourism being recognised as a crucial pillar of development;
(3) acknowledges that tourism plays a critical role in the broader South African economy, directly accounting for 3,7% of the gross domestic product, GDP, supporting over 770 000 jobs directly (1,49 million indirect) and contributing some R209 billion to the national economy in 2019, according to Statistics South Africa;
(4) further acknowledges that the outbreak of the COVID-
19 pandemic had a significant impact on the South African tourism industry, mainly due to the lockdown and travel restrictions that were imposed, resulting in an estimated decrease of 71,0% of tourists during the COVID-19 pandemic period and the closure of
large numbers of tourism related businesses and hundreds of thousands in job losses;
(5) recognises that government has implemented its Tourism Sector Recovery Plan, re-affirming tourism’s position as a major contributor to the South African economy and its envisaged role in the broader economic reconstruction and recovery effort;
(6) further recognises that tourism month also encourages South Africans to travel domestically to sustain jobs and support the recovery of tourism in line with the Tourism Sector Recovery Plan; and
(7) calls on Government to make more resources available to all players in the tourism industry, without prejudice of race, ... [Time expired.]
Agreed to.
CONGRATULATIONS TO BANYANA BANYANA
(Draft Resolution)
Ms F A MASIKO: Chairperson, on behalf of the ANC, I moved without notice:
That the House –
(1) notes that Banyana Banyana were crowned champions of Africa after winning Women’s Africa Cup of Nation, WAFCON, in Morocco on Saturday, 23 July 2022;
(2) further notes that the new queens of the continent earned a hard-fought victory against a determined Moroccan outfit, who were eager to raise the trophy in front of a 52 000-strong home crowd;
(3) recalls that Banyana Banyana had been denied a win in five previous Women’s Afcon finals, and at the 2022 edition tasted glory for the first time in the history of the national senior women’s team;
(4) remembers that on their road to win the gold medal they defeated tournament favourites Nigeria, before seeing off Burundi, Botswana, Tunisia and Zambia; and
(5) congratulates Banyana Banyana on their wonderful victory. They remained the Champions of Africa.
Agreed to.
PASSING AWAY OF NICOLE MIENIE
(Draft Resolution)
Ms M E SUKERS: Chairperson, on behalf of the ACDP, I moved without notice:
That the House –
(1) notes with great sadness the passing of Nicole Mienie, a 21-year-old pilot, from Oudtshoorn in the Klein Karoo, who tragically died with four German passengers in a horrific air crash on the banks of the Zambezi River in Namibia on Tuesday, 30 August 2022;
(2) notes that according to ExamRevolution.com, Nicole was a careful student who had passed her CPL Radio
Aids exam in record time with 97% – within six minutes – an average of 12 seconds per question;
(3) further notes that this special young lady will be missed by her friends, family and colleagues;
(4) acknowledges that her passion and love for flying aircraft will live on in her absence; and
(5) conveys its deep and heartfelt condolences to the Mienie family.
Agreed to.
UNTIMELY AND TRAGIC PASSING OF MS NDONI MCHUNU
(The late Ms Ndoni Mchunu)
Ms B S MASANGO: Hon House Chairperson, I move without notice:
That the House –
(1) notes with sadness the untimely and tragic passing of the renowned environmental scientist, agronomist, researcher,
entrepreneur and founder of black women in science Ms Ndoni Mchunu on 16 April 2022;
(2) further notes that Ms Mchunu has been described as a powerhouse and a force to be reckoned with at a global scale, she is renowned for African solutions to climate change in exposing youth to science and empowering young women;
(3) appreciate Ms Mchunu’s achievements as she has been listed in the top 50 most inspiring women in technology in South Africa and recognised as one of the 40 under 40 African leaders for climate resiliency in 2019;
(4) acknowledges that Ms Mchunu also had a global presence where she worked as part of the secretariat development team at south North for the adaptation research alliance and became a regular feature in international media;
(5) further notes that Ms Mchunu obtained doctoral degrees from the Stellenbosch University and the University of Witwatersrand and was an alumnus of the African Doctoral Academy;
(6) conveys its heartfelt condolences to the family and friends of Ms Mchunu for this massive loss to them the country and the world. May her soul rest in peace.
PICK N PAY MEETS WITH EFF
(Draft Resolution)
Ms N N CHIRWA: Hon House Chairperson, I move without notice:
That the House –
(1) notes the meeting held between the EFF and Pick n Pay following the allegations that Pick n Pay’s franchise model and market store initiative were damaging to black former franchisees;
(2) also notes that the former black franchises of Pick n Pay raised systemic issues of racial and financial discrimination;
(3) further notes that after a constructive meeting the meeting resolved that Pick n Pay will appoint an independent inquiry led by a senior council to review the company’s actions, policies and conduct and have a transparent one-on-one sessions with aggrieved far black franchisees to seek to resolve individual grievances and suspend all legal actions during the duration of the independent inquiry;
(4) welcome the constructive engagement and appreciation by Pick n Pay that the allegations raised by the former black franchisees require urgent attention and the commitment to the process of transparent and meaningful engagement;
(5) encourage the private sector to constructively engage small black-owned businesses when they raise issues of systemic racial discrimination in their sector to ensure that there is meaningful transformation and transfer of ownership of the economy to the majority of South Africans.
Agreed to.
THE SAD PASSING ON OF THE LEGENDARY ARTIST TOKOLLO “MAGESH” TSHABALALA
(The late Mr Tokollo “Magesh” Tshabalala)
Ms V P MALOMANE: Hon House Chairperson, I move without notice:
That the House –
(1) notes with sadness the passing on of the legendary artist Tokollo “Magesh” Tshabalala, a member of the South African famous Kwaito group TKZee on Monday 15th August 2022, at the age of 45;
(2) recalls that Tokollo was well-known for his hit song which dominated the music industry;
(3) remembers that he used his talent as a weapon to uplift the past apartheid era youth;
(4) believe that his immense contribution to the entertainment industry will never be forgotten;
(5) conveys its deepest sympathy to the Tshabalala family, fans and friends;
Agreed to.
POLICE OFFICERS LOST THEIR LIVES IN THE LINE OF DUTY
(Draft Resolution)
Mr A M SHAIK EMAM: Chairperson, on behalf of the NFP, I move without notice:
That the House –
(1) notes that 33 police officers lost their lives in the line of duty from the 1st of April 2021 to the 31st of March 2022;
(2) also notes that many of these officers were killed mercilessly by criminals;
(3) further notes that an attack on a police offer is an attack on a state;
(4) call upon this hon House to extend our condolences to the families of the deceased;
(5) wish that the South African Police will leave no stone unturned in identifying the perpetrators of this barbaric attack on our police officers and ensure that they face the full might of the law.
Agreed to.
ASHLEIGH BUHAI MAKES HISTORY AT MUIRFIELD
(Draft Resolution)
Ms L N MOSS: Chairperson, on behalf of the ANC, I hereby moved without notice:
That the House –
(1) notes with great pride that Ashleigh Buhai made history by becoming only the 3rd South African woman to win a major golf championship;
(2) further notes she survived a disastrous 15-hole to claim a life changing victory in a marathon play-off against Chun In-gee in the Women's Open at Muirfield on Sunday, August 2022;
(3) acknowledge that Ashleigh won the first of three South African amateur titles when she was just 14-years old;
(4) acknowledges that she had three wins in Europe and two South African open but she had never won a Ladies Professional Golf Association, LPGA, title until now.
(5) further acknowledges that Ms Buhai’s victory was also South Africa’s first major men and women since Ernie Els wins at Royal Lytham and St Annes;
(6) congratulates her on an outstanding achievement and wishing much success in her future endeavours.
Agreed to.
PASSING AWAY OF MS RITHA ALICE NDZANGA
(The late Ms Ritha Alice Ndzanga)
Ms M M E TLHAPE: Chairperson, on behalf of the ANC, I hereby moved without notice:
That the House –
(1) notes with sadness the passing of former Member of Parliament struggle stalwart and esteemed member of the Order of Luthuli Ms Ritha Alice Ndzanga aged 88 on Wednesday, 17 August 2022;
(2) further notes that she was a true patriot and heroin for workers for worker’s rights which saw her play a role in the establishment and organisation of the labour movement in the 1950s;
(3) acknowledges that she was involved in the formation of the Congress of South African Trade Unions, Cosatu;
(4) recalls that her opposition to the unjust and apartheid system saw her suffer harassment, arrest, torture and banishment by the apartheid regime;
(5) remembers that her activism came at a huge personal sacrifice which saw her bare the pain or detention of her husband n ntate [Mr] Lawrence Ndzanga;
(6) further remembers that she was among the first legislators of the democratic Parliament until her retirement in 2004;
(7) believe that we have lost a true revolutionary, a committed servant of the people and a disciplined cadre of the African National Congress; and
(8) conveys our heartfelt condolences to the family.
Agreed to.
CONGRATULATES THE SOUTH AFRICAN SPORTSPERSONS WHO WON MEDALS
(Draft Resolution)
Mr T W MHLONGO: Chairperson, on behalf of the DA, I hereby moved without notice:
That the House –
(1) notes that a number of South Africans sports persons participates in various sporting codes at 2022 Common Wealth games hosted in August in the United Kingdom;
(2) further notes that South African sports persons received
27 medals at the games, seven gold, nine silver, and eleven bronze;
(3) recognise that many South African Sports persons the same professional resources, financial support available to their counterparts in other parts of the world, many of them have competed professionally on part basis;
(4) acknowledges that it is important for all sports persons who compete and represent South Africa are awarded financial bonuses and that all sporting codes should enjoy the same recognition and support;
(5) congratulates the South African sport persons who won medals at the games, halala [congratulations.]
Agreed to.
FAGRIEL MOOSA CALL TO PRAY AT SALAT AL-JUM’AH
(Draft Resolution)
Mr M G E HENDRICKS: Hon Chairperson, on behalf of the Al Jama- ah, I hereby moved without notice:
That the House –
(1) commends Mr Fagriel Moosa, who is in the House today and he is from Portlands in Mitchells Plain the first deaf person in South Africa to have made ... [Inaudible.] ... call to pray at a Friday Salat Al-Jum’ah congregation prayers on the 2nd of February 2022;
(2) further commends him for making the call to pray at ... [Inaudible.] ... in Rocklands in Mitchells Plain from where it was held and witnessed by hundreds of congregants and was video streaming all over the world showing South Africa embracing deaf people;
(3) acknowledges that after more than 350 years of Islam in South Africa, Fagriel has made history at a country for a person who has hard of hearing and who have made it despite not hearing his own melodius voice and call to pray;
(4) further acknowledges that Friday sermon was made by Dr Cassiem De Wet which was translated into sign language by the interpreter;
(5) congratulates Fagriel Moosa on his perseverance and the ability to render a call to pray.
Agreed to.
MOTION OF CONDOLENCE
(The late Ms Jessie Yasmine Duarte)
Ms K D MAHLATSI: Chairperson, on behalf of the ANC, I hereby moved without notice:
That the House –
(1) notes with sadness the passing on of the ANC Deputy Secretary-General and antiapartheid activist Jessie Yasmine Duarte at the age of 69 on Sunday 17 July 2022;
(2) remembers that Duarte who has been the ANC’s Deputy Secretary General since 2012 served the governing party and the government in various capacities;
(3) recalls that she dedicated her entire life to the struggle for united, non-racial, non-sexist, democratic and prosperous South Africa;
(4) recognises that her life and work reflected a consistent commitment to advancing the right of the poor;
(5) believes that Duarte’s passing is a great loss not only to her family but to a democratic movement and a country as whole;
(6) conveys its heartfelt condolences to the Duarte and the Dangor family, friends and the African National Congress.
Agreed to.
NOTICES OF MOTIONS
Mr B M HADEBE: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ANC:
That the House -
debate sustainable solutions to the complex challenges of local government.
I so move
Ms B S MASANGO: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the DA:
That the House -
debate possible abuse of the social grants system in the republic due to alleged loopholes in policy and qualification criteria.
I so move.
Ms L F TITO: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the EFF:
That the House -
(a) debate Sasol Secunda in Mpumalanga continues to fail to meet toxic gas emission standards that were set up by enactments of this house to safeguard people’s health and the environment.
(b) The government is well aware of these society harmful habits of these huge conglomerates that
I so move.
emits Sulphur dioxide and hydrogen sulphide in harmful quantities.
(c) To make matters worse, their offsets projects to mitigate air ambiance are half hearted. Many respiratory related diseases there could be avoided if we avoid putting profits before human life. If we avoid putting profits before human lives.
Ms M M E TLHAPE: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ANC:
That the House -
debate the acceleration of the distribution of land to all those who work and those who need it together with the provision of sustainable and effective forms of support.
I so move
Ms Z MAJOZI: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the IFP:
That the House –
debate the current capacity of law enforcements officials to investigate and prosecute cyber-crime in South Africa and the further necessary intervention required to mitigate and prevent against cyber-attack by cyber criminals which are expected to grow exponentially in the near future, especially with the advent of artificial intelligence.
I so move.
Mr W W WESSELS: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the FF Plus:
That the House -
I so move.
debate the perilous state of the Koeberg Nuclear Power Facility and the momentous safety risks posed thereby.
Mr C N MALEMATJA: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ANC:
That the House -
debate measures to support emerging industrialists and other business.
I so move.
Mr S N SWART: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ACDP:
That the House -
debate the intended closure of 3255 rural schools nationwide, given the wide ranging social impact
I so move.
this will have on thousands of rural children who will be displaced from their families to grow up in government facilities and boarding schools with limited or no family structure close by to support them in their formative years.
Mr N L S KWANKWA: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the UDM:
That the House -
debate the need to support small businesses through better coordination of relevant agencies, development finance institution as well as private and public sectors partnerships for their development and improvement.
I so move.
Ms V VAN DYK: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the DA:
That the House -
debate current state of orchestras in the Republic in light of the recent establishment of the Mzansi National Philharmonic Orchestra.
I so move.
Mr H A SHEMBENI: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the EFF:
That the House -
debate The rise of state sponsored xenophobia exemplified by the recent occurrences by the Limpopo MEC for Health.
I so move.
Ms V T MALINGA: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ANC:
That the House -
debate constructing environmentally sustainable technology processes and energy resources.
I so move.
Mr A M SHAIK IMAM: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the NFP:
That the House –
debate price fixing particularly in the retail food sector and airline sector resulting in exorbitant prices.
I so move
Ms T MGWEBA: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ANC:
That the House –
debate strengthening the public order policing unit and working to re-establish community policing forum.
I so move.
Ms S T MANELI: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the NFP:
That the House –
debate Rebuilding and strengthening the public service and also the culture of Batho Pele.
I so move.
Ms H S WINKLER: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the DA:
That the House –
debate the impact of collapsing water and sanitation infrastructure on the republic’s tourism economy.
I so move.
Mr M G E HENDRICKS: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of Al-Jamah:
That the House –
debate an alternative dispute resolution structure on matters relating to personal Law, including marriage and divorce law be put in place, the provision for free, informal, and speedy resolution of disputes outside formal court processes that may conflict with cultural and religious beliefs. This is in line with international convention South Africa sign and included in the green paper on marriage law to enhance freedom of religion.
I so move.
Mr J H BILANKULU: House Chairperson, I hereby give notice that on its next sitting I shall move on behalf of the ANC:
That the House –
debate advocating global political and economic architecture that is democratic, fair and inclusive and which prioritises the needs and interests of the poor.
I so move.
The House adjourned at: 17:56
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