Hansard: NCOP: Unrevised Hansard
House: National Council of Provinces
Date of Meeting: 26 Mar 2024
Summary
No summary available.
Minutes
UNREVISED HANSARD
NATIONAL COUNCIL OF PROVINCES
TUESDAY, 26 MARCH 2024
PROCEEDINGS OF THE NATIONAL COUNCIL OF PROVINCES
Watch video here: Plenary
The Council met at 14:01.
The House Chairperson: Committees and Oversight took the Chair and requested members to observe a moment of silence for prayers or meditation.
The House Chairperson: Committees and Oversight announced that the hybrid sitting constituted a sitting of the National Council of Provinces.
NOTICES OF MOTION
Ms M L MAMAREGANE: House Chairperson, I hereby give notice that on the next sitting of the House I shall move on behalf of the ANC:
That the House-
(1) debates advancing, redress and transformation of a skewed rationalised economy to benefit black industrialised companies to increase their chances of succeeding in an inclusive, dynamic and prosperous economy where every entrepreneur regardless of background thrives.
I so move hon Chair.
Mr E Z NJADU: House Chairperson, I hereby give notice that on the next sitting of the House I shall move on behalf of the ANC:
That the House-
(1) debates expanding joint collective efforts to focus on strengthening early TB case detection through targeted testing initiatives aimed particularly amongst the vulnerable.
I so move hon Chair.
Ms B M BARTLETT: House Chairperson, I hereby give notice that on the next sitting of the House I shall move on behalf of the ANC:
That the House-
(1) debates the review of the Policy of Minimum Free Basic Water to further help with cushioning the poor.
I so move hon Chair. Thank you.
STATE OF ROADS IN MPUMALANGA
(Draft Resolution)
Ms H S BOSHOFF: House Chairperson, I move without notice:
That the House-
(1) notes with concern that on 6 December 2023, this House agreed to a motion recognising and thanking the MEC of Roads and Transport in Mpumalanga for attending to the roads, namely R540, R36 and R536.
(2) also notes that since this motion was delivered and passed, these roads have deteriorated to such an extent that every road user is putting his/her life at stake as these roads are a death trap waiting to happen.
(3) further notes that numerous complaints from road users have been received and that various letters in this regard have been forwarded to the MEC, with no acknowledgment of receipt.
(4) notes with concern that the R36 can no longer be utilised due to the state of the road and the contractor is refusing to work as he has not been paid, the road users and more especially heavy vehicle road users are now utilising the R540 adding to the deterioration of this road which is a well-known tourist route; and
(5) acknowledges that the MEC must as a matter of urgency attend to these roads as promised on 6 December 2023.
Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
ESCAPE OF 69 UNDOCUMENTED FOREIGNERS FROM THE LINDELA REPATRIATION CENTRE
(Draft Resolution)
Ms A D MALEKA: House Chairperson, I move without notice:
That the House-
(1) notes with utmost concern the mass escape of 69 undocumented foreigners from the Lindela Repatriation Centre in Krugersdorp on Sunday, 17 March 2024.
(2) further notes and welcome the decisive intervention that was taken by the Minister of Home Affairs, Hon Dr Aaron Motsoaledi to immediately suspend the contract with EnviroMongz, which is responsible for guarding and managing the facility; and
(3) takes this opportunity to call on the Minister to ensure that the investigation of the conduct of the
company and its employees is expedited and that decisive action and measures be taken to strengthen the security of Lindela Repatriation Centre.
I so move.
Motion agreed to in accordance with section 65 of the Constitution.
COLLAPSE OF THE NELSON MANDELA BAY METROPOLITAN MUNICIPALITY
(Draft Resolution)
Mr M NHANHA: House Chairperson, I move without notice:
That the House-
(1) notes with concern the alarming collapse of the Nelson Mandela Bay Metropolitan Municipality. This collapse is perfectly encapsulated by the fact that Nelson Mandela Bay Metropolitan Municipality is now the most dangerous city in South Africa and the 9th most dangerous city in the world.
(2) notes during the DA-led government in Nelson Mandela Bay Metropolitan Municipality, in an effort to curb gangsterism we introduced the shot-spotter in the Northern Areas and ghost squad. These initiatives led to a safer Northern Areas and safer driving in and around the metro.
(3) notes with concern that since Nelson Mandela Bay Metropolitan Municipality fell on the hands of the coalition of corruption led by the ANC, the murder rate has increased by a staggering 37% in the last year alone.
(4) also notes with dismay the concerns expressed by the Minister of Finance over Nelson Mandela Bay Metropolitan Municipality’s fruitless and wasteful expenditure that amounts to approximately R20 billion in June 2023.
(5) Lastly, welcomes a probe into the Nelson Mandela Bay Metropolitan Municipality Mayor Gary Van Niekerk on fraud allegations. The people of Nelson Mandela Bay Metropolitan Municipality deserve a government that
puts their interests first, not someone who has a dark cloud hanging over him.
I so move.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Is there any objection to the motion?
Hon MEMBERS: Yes.
The HOUSE CHAIRPERSON (Mr A J Nyambi): There being an objection, the motion may not be proceeded with and will become a notice of motion.
IsiXhosa:
Mnu M NHANHA: Zinxibeni izihlangu ukuba ziyanilingana.
The HOUSE CHAIRPERSON (Mr A J Nyambi): No hon Nhanha. Hon Ntsube on the virtual platform.
SMOOTH PROCESSING OF THE APPEALS FOR NATIONAL STUDENT FINANCIAL AID SCHEME
(Draft Resolution)
Mr I NTSUBE: House Chairperson, I move without notice:
That the House-
(1) notes with joy, the smooth processing of the appeals for National Student Financial Aid Scheme, NSFAS funding by students who could not meet the test for funding.
(2) believes that the success of these appeals should open doors of learning to many students, especially those in the missing middle.
(3) therefore, congratulate the NSFAS administration for catering attitude and speedy processing of these appeals.
I so move hon Chairperson.
Mr T MAGWALA: That is objected.
Mr I NTSUBE: That is a late intelligence Magwala.
The HOUSE CHAIRPERSON (Mr A J Nyambi): There being an objection, the motion may not be proceeded with and will become a notice of motion.
Mr E M MTHETHWA: House Chairperson, I move without notice:
That the House-
(1) welcomes the orders granted to the National Prosecuting Authority’s Asset Forfeiture Unit, giving the unit permission to seize assets worth around R18 million from illegal mining kingpins;
(3) notes that the order was granted in the Pretoria High Court to seize 16 bank accounts, 51 vehicles and seven properties from several suspects, which are proceeds of unlawful activities of a syndicate dealing in unwrought gold in the Khutsong area in Carletonville;
(4) understands that the properties are expected to be sold at public auction with the proceeds going into the Criminal Asset Recovery Account;
(5) also understands that the trial against the nine accused who are facing various charges including money laundering and racketeering, is set to start on 24 July 2024, at the Pretoria High Court after it was transferred from the Oberholzer Magistrates Court;
(5) believes that these forfeiture orders are part and parcel of the Asset Forfeiture Unit’s asset recovery strategy to claim the proceeds of criminal activities back to the state; and
(6) commends implementation by law enforcement agencies of the overall National Anti-Corruption strategy, which is aimed at strengthening the fight against corruption and rising levels of crime such as illegal mining.
I so move Chair.
Motion agreed to in accordance with section 65 of the Constitution.
COMMITMENT BY SANRAL
(Draft Resolution)
Mr M I RAYI: Hon House Chairperson, I move without notice:
That the Council-
(1) welcomes Sanral’s commitment to inject close to
R2 billion into the Dr AB Xuma Local Municipality in the Eastern Cape, where it seeks to implement its road maintenance projects over the next three years;
(2) notes that the roads agency seeks to implement two road infrastructure development projects in the municipality, which include the road improvements of the R61 National Road between All Saints to Bayiza, as well as road improvement of the R61 National Road between Qumanco and eNgcobo;
(3) also notes that the scope of the work on these projects will entail the upgrading of roads, bridges and culverts and improving road safety in the area;
(4) understands that the SA National Roads Agency, Sanral, as part of assisting with the development in that area, has set aside a minimum of 30% of the project value to be subcontracted to SMMEs, and a
minimum of 8% of the project value will be set aside for the local labour;
(5) believes that this project will assist municipalities in performing their basic functions such as road maintenance, amongst others which will lead to the rapid improvement of the quality of life of the residents; and
(6) calls for government to prioritise more infrastructure investment to ensure that construction of projects is undertaken with the necessary urgency and is spread all over the country so as to improve access to basic services and increase the overall efficiency and competitiveness of the economy.
Motion agreed to in accordance with section 65 of the Constitution.
WORLD TB DAY
(Draft Resolution)
Ms N E NKOSI: Hon Chairperson, I move without notice:
That the Council-
(1) notes that the world each year commemorates the World TB Day, to raise public awareness about the devastating health, social and economic consequences of TB and to step up efforts to end the global TB epidemic;
(2) recalls that this year the day is commemorated under the theme “Yes! You and I Can End TB”;
(3) also notes that South Africa is amongst the TB high burden countries;
(4) understands, however, that there has been a steady decline in the number of people diagnosed with TB each year since 2007, where the figure was about 644 000 compared to 280 000 in 2022;
(5) believes that the 94-million-dollar, funding will go a long way in bolstering South Africa’s ongoing efforts to respond to TB in the next five years; and
(6) calls for the strengthening of collective counter- response to TB to focus on strengthening early case detection through targeted testing initiatives, particularly among the vulnerable.
Motion agreed to in accordance with section 65 of the Constitution.
OPENING OF THE DEPARTMENT OF HIGHER EDUCATION AND TRAINING FUNDED NELSON MANDELA UNIVERSITY’S SCIENCE CENTRE
(Draft Resolution)
Ms N NDONGENI: Chairperson, I move without notice:
That the Council-
(1) welcomes the opening of the Department of Higher Education and Training funded Nelson Mandela University's groundbreaking Science Centre by the Minister of Higher Education and Training;
(2) notes that the state-of-the-art Science Centre is located on the Ocean Sciences Campus and represents Nelson Mandela University's commitment to community engagement and social justice-oriented education;
(3) also notes that at the heart of the Centre, lies a 15-metre digital dome-shaped auditorium, a pioneering feature in South Africa's educational landscape;
(4) understands that the Centre's role as an innovative hub, leveraging immersive technologies to foster interest and excellence in science, technology, engineering, and mathematics disciplines;
(5) believes that visitors, including school learners, will benefit a great deal and will be treated in interactive exhibitions and 3D shows, showcasing topics ranging from underwater life to space exploration;
(6) also believes that this science centre will expose learners to a multiplicity of careers in the sciences as the country looks into creating more
pathways for young people to take this country into the future; and
(7) hopes that the centre will grow and inspire future scientists and innovators, thus contributing to South Africa's knowledge-based economy, as well as advancing science for society and nurturing a new generation of STEM enthusiasts.
Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
INTERNATIONAL DAY OF REMEMBRANCE OF THE VICTIMS OF SLAVERY AND THE TRANSATLANTIC SLAVE TRADE
(Draft Resolution)
Mr M DANGOR: Chairperson, I move without notice:
That the Council-
(1) notes that 25 March marks International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade, which is a day designated by the United Nations to honour the lives of those who died as a result of slavery or experienced the horrors of the barbaric transatlantic slave trade and raise awareness about the dangers of racism and prejudice;
(2) further notes that millions of people were transported from Africa against their will to Central and North America Africa in the 16th century up to the 19th century;
(3) further calls on the UN to also designated for the slaves abroad the Western Cape;
(4) acknowledges that the appalling tragedies of the mass deportation of slaves not only resulted in the senseless, hideous and brutal death of millions of slaves from the African continent, but also became one of the worst, brutal and vicious violations of human rights in the history of humankind; and
(5) believes that even though the slave trade was abolished many years ago, the horrific effects of slavery, particularly racial subjugation and economic bondage is persisting in the economies of many African countries.
Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
ETHEKWINI METROPOLITAN MUNICIPALITY
(Draft Resolution)
Ms L C BEBEE: I move without notice:
That the Council-
(1) welcomes as a step in a good direction of the eThekwini Metropolitan Municipality’s move to intensify its collaboration with property owners to eradicate unsafe buildings within the inner city;
(2) notes that as part of the realisation of this undertaking, the Municipality has established a new unit that is called the “Problem Buildings Division”, which is dedicated to tackling unsafe buildings;
(3) also notes that problem buildings are defined as derelict, abandoned, hijacked, structurally unsound and unlawfully erected buildings;
(4) believes that these buildings heightened social issues, such as homelessness, crime, and drugs, which are often found in such buildings;
(5) understands that the division has already identified approximately 40 buildings within the city and has started the process to serve relevant notices;
(6) also understands that it calls for property owners, whose buildings have been deemed unsafe for occupation, to contact it or face future closure; and
(7) commends the city’s bold moves and believes that it will go a long way in creating a vibrant inner city, which is underpinned by well-managed buildings.
Motion agreed to in accordance with section 65 of the Constitution.
BRUTAL AND SENSELESS TERRORIST ATTACK OF OVER 133 INNOCENT PEOPLE AT A ROCK CONCERT IN MOSCOW
(Draft Resolution)
Mr M E NCHABELENG: House Chairperson, I move without notice:
That the Council:
(1) notes with utmost concern the brutal and senseless terrorist attack of over 133 innocent people at a rock concert in Moscow, Russia;
(2) further notes that Russia has since arrested 11 people, including four suspected gunmen for the rampage and senseless killing;
(3) takes this opportunity to condemn in the strongest possible terms this odious and senseless attack; and
(4) joins the President of the Republic of South Africa, President Cyril Matamela Ramaphosa to convey its heartfelt condolences to the families of the dead and the entire nation of the Federation of Russia and wishes those injured a speedy recovery.
Motion agreed to in accordance with section 65 of the Constitution.
MULTI-PARTY DELEGATION SENT TO GENEVA, SWITZERLAND FOR THE 48TH INTER-PARLIAMENTARY UNION ASSEMBLY BY PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA
(Draft Resolution)
Ms S SHAIKH: Chairperson, I move without notice:
That the Council-
(1) notes that that the Parliament of the Republic of South Africa has sent a multi-party delegation in
Geneva, Switzerland for the 148th Inter- Parliamentary Union Assembly which started on Saturday, 23 and will end on Wednesday, 27 March 2024 under the overall theme: “Parliamentary diplomacy: Building bridges for peace and understanding”;
(2) further notes that the delegation, which is led by the Deputy Chairperson of the National Council of Provinces, hon Ms Sylvia Lucas, has made several inputs to advance South Africa’s position in various Standing Committee Meetings and the Plenary Assembly of the IPU, including tabling an emergency item to advocate for an immediate ceasefire and humanitarian support in the Gaza strip; and
(3) acknowledges that South Africa’s participation in the 148th IPU Assembly will bring a key role in strengthening South Africa’s parliamentary diplomacy and national position on a number of issues confronting the global community, including putting in place measures to mitigate the unique risks posed by autonomous weapon systems, particularly to women, children and marginalised communities.
Thank you.
Motion agreed to in accordance with section 65 of the Constitution.
RESOLUTION BY COUNCIL OF LAPSED CONSIDERATION OF A BILL
(Draft Resolution)
Ms N E Nkosi, on behalf of the Chief Whip of the Council moved that the Council resolves that Rule 218(1), provides inter alia that the consideration of a Bill may not commence before at least three working days have lapsed since the committee’s report was tabled, be suspended for the purposes of consideration of Revenues Laws Amendment Bill.
Declaration of Vote:
Mr F J BADENHORST: Hon House Chairperson, this is just a declaration to ask about the process. Rule 218 of our rules states that the Council may not consider or pass a Bill before at least three working days have lapsed since the committee report was tabled. So, firstly, this is a Bill before the House in terms of Joint Rule 216 or secondly, an urgent Bill
before the House. Could be perhaps the reason why an amendment is now requested before this august House.
Thank you very much.
The HOUSE CHAIRPERSON (Mr A J Nyambi): The process we are involved in is exactly addressing the question you are raising. We subject to this process in terms of the Rules of the National Council of Provinces. If in terms of the process, we fail then we are not going to proceed. However, if we are going to get the number in terms of the very same Rules then we are going to have it passed because that is the motion moved by the Speaker of the House. It is in line with our Rules, hon Badernhorst.
Question put: That the Motion be agreed to.
In Favour: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West.
Abstain: Western Cape.
Motion agreed to in accordance with section 65 of the Constitution.
CONSIDERATION OF REPORT OF JOINT STANDING COMMITTEE ON THE FINANCIAL MANAGEMENT OF PARLIAMENT ON THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA’S 2023-24 MID-YEAR PERFORMANCE, DATED
5 MARCH 2024
Ms D G MAHLANGU: Hon House Chairperson, thank you for the opportunity, the Chairperson and the Deputy Chairperson of the NCOP in absentia, House Chairperson Mme Ngwenya, the Chief Whip of the Council, special delegates and hon members. Hon House Chairperson, it is my pleasure to present the Report of the Joint Standing Committee on Financial Management of Parliament having considered the Parliament of South Africa’s 2023-24 mid-year Performance Report. Parliament has its vision to be an activist and responsive people’s Parliament that improves the quality of the South Africans and ensures enduring equality in our society. Its mission is to represent the people and to ensure government by the people in fulfilling its constitutional functions of passing laws and overseeing executive actions. To this end, Parliament conducts its business adopting the values of openness, responsiveness, accountability, teamwork, professionalism and integrity.
Hon House Chairperson, Parliament has identified only two strategic priorities for the Sixth Parliament which are to
strengthen oversight and to enhance public involvement in Parliament’s activities. In order to achieve these outcomes, the Sixth Parliament in terms of improving its performance it has planned to improve committee oversight work in relation to the budget cycle allowing more time in the parliamentary programme for oversight activities and encouraging committees to undertake joint oversight activities. Allocate more time to committee oversight activities and the possibility of holding joint briefings and meetings.
Parliament will also improve the effectiveness of public hearings through greater public participation by expanding public education better dissemination of information, effective use of broadcasting technology and social media, the use of more official languages and encouraging committees to undertake joint public hearings.
Hon House Chairperson, the new macro framework for the Seventh Parliament has been designed to ensure that Parliament is transformative, responsive and collaborative through effective stakeholder engagement.
Parliamentary administration would be realising a serries of improvement to its reporting framework to align it to the new
macro framework which focusses on Parliament’s outcomes and impact.
The new reporting framework will focus on Parliament’s transformative framework which will measure the extent to which Parliament impacts the daily lives of people in South Africa. The impact will be measured through the National Development Plan, NDP, impact indicators which are related to poverty alleviation, inequality reduction and inequality eradication.
Hon House Chairperson, as already said, the report has been Announcements Tablings and Committee, ATCeed and members will go through it. I will just browse through observations and recommendations from the committee.
Hon House Chairperson, the committee shared Parliament’s concerns about the absence of an effective institutional broadcasting strategy. Of particular concern is the broadcasting of parliamentary activities on pay-to-view and data dependent platforms which under the current economic conditions makes it impossible for a significant section of the population to have access on how they are represented in Parliament and the business of Parliament in general.
The committee notes that the finalisation of the institutional broadcasting strategy was dependent on the finalisation of the SA Broadcasting Corporation Bill recommended that once that law has been finalised the broadcasting strategy should be completed as a matter of urgency. The strategy should include provision for free access to televised and social media content.
Hon House Chairperson, the committee notes the lower-than- expected performance in respect of public participation which was central to Parliament’s activities. Thus, the committee recommends that progress in respect of public participation related indicators be monitored closely and that remedies for the slow progress be implemented immediately.
Shortcomings in Parliament’s management of public participation must be addressed by the time the Seventh Parliament commences.
Hon House Chairperson, the constituency office are citizens caused immediate point of access to Parliament and public representation. The committee notes the delays in the completion of benchmarking of the support constituency office required to operate effectively. Therefore, the committee
recommends that the benchmarking exercise to be completed as a matter of urgency and before the Seventh Parliament that is impossible. So, the recommendation should talk to the Seventh Parliament. Constituency offices must be supported to ensure that they operate effectively as the link between the citizens and Parliament and they must be adequately funded.
In addition, hon House Chairperson, constituency offices must be equipped to account for the funds allocated to them in terms of the Political Party Funding Act 6 of 2018.
In conclusion House Chairperson, the committee notes interventions underway to professionalise the parliamentary service but remains concerned about the lack of progress in the lack of progress in respect of organisational realignment project. Therefore, the committee recommends that the institution reports on progress in respect of organisational realignment of the specifically the reasons for the long delay and how these would be addressed. Every effort should be made to fast-track the process to ensure that the Seventh Parliament is well supported. Thank you very much, hon House Chairperson.
Let me thank the hon members and further request the House to adopt this report and recommend that the executive authority should support the committee on the Seventh Parliament with a respond within 30 days of the adoption of this report meaning in the Seventh Parliament. Thank you, hon House Chairperson.
IsiNdebele:
Ngiyathokoza.
English:
Debate concluded.
Question put: That the Report be agreed to.
In Favour: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly agreed to in accordance with section 65 of the Constitution.
CONSIDERATION OF REPORT OF JOINT STANDING COMMITTEE ON THE FINANCIAL MANAGEMENT OF PARLIAMENT ON THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA’S 2023-24 THIRD QUARTER REPORT, DATED
5 MARCH 2024
Ms D G MAHLANGU: Hon House Chair, I’m once more honoured to present the report of the Joint Standing Committee on the Financial Management of Parliament and having considered performance of Parliament of the Republic of South Africa in the third quarter of 2023-24 financial year. Hon members and House Chair, the third quarter report tracked 31 indicators of which three were related to the parliamentary programme, nine were associated with member satisfaction and 19 related to transformational target. On the operational excellence of communication and brand positioning in 2023-24, Parliament plans to develop an institutional strategy to improve public trust. In quarter three, the target was to consult key stakeholders on recommendations to improve public trust, and the target was achieved. Hon House Chairperson, the Parliament intends to implement a broadcasting strategy for the Seventh Parliament in 2023-24 as indicated in the mid-year term.
Although in the first and second quarter the targets could not be achieved, the third quarter target was achieved. The formulation of the legislative framework facilitating free-to- air broadcast service for Parliament, including licensing provisions under the Independent Communications Authority of South Africa, Icasa, has been developed and submitted for processing and approval.
Additionally, hon House Chairperson and members, a thorough broadcast strategy for the Seventh Parliament has been drafted and presented for approval. An external team of broadcasting talent comprising technical, managerial and on-air expertise was being assembled. This external team will collaborate with Parliament to formulate and an implementation plan for the Seventh Parliament protesting strategy. A service provider has been appointed to translate the strategy into an actionable implementation plan. Hon Chairperson, for the operational excellence on research project in 2023-24 financial year, the Parliament intended to implement the plan for restoring the building affected by the incident of fire as we all know in 2022. The institutions reported that there was no information was provided in respect of progress made towards the target to execute the restoration plan according to the milestone set out in it. In the presentation made to this committee, however, Parliament reported that 155 offices were completed on the fourth and fifth floor, 90 Plane Street, the same as it was reported in the second quarter. There was rubble removal, asset recovery and the Old Assembly building’s temporary roof is completed, the same progress as reported in the second quarter. So, there is stage 2 concept and viability that have been completed. Stage 3 delayed designed at 80%, heritage application process at 60% and pre-qualification of
contractors of the Old Assembly and the National Assembly buildings are completed.
According to the information presented, the underperformance in the third quarter was due to the gathering of user requirements and engagements on design concept at stage 2, taking longer than planned and there were delays in the SA Heritage Resource Agency, SAHRA, application, for stage 3. The underperformance will be remedied by consultants, putting in extra time to finalise the detailed design and parallel engagement in heritage matters. Hon Chairperson, allow me now to focus on the committee’s concerns and the recommendations. The committee notes with concern the continued delays in the review of parliamentary constituency offices, PCOs. These offices were citizens most immediate point of access to Parliament and public representation, and failure to capacitate them adequately, interferes with the citizens ability to access Parliament and participate in its business. The committee notes with concern the underperformance in respect of various targets, the underperformance related to the oversight priority model, the committee planning framework, the impact assessment framework and the oversight partnership framework. These interventions will be key elements in the support of the oversight work of the Seventh
Parliament. The lack of progress may also delay the interventions and the improvements that could result in more efficient spending of funds used on oversight and public participation activities. The committee should be provided with the delayed report on what has caused the delays in respect of the review of the PCOs.
Hon House Chairperson and members, the restoration project has underperformed. The underperformance in respect of the restoration project, as well as the inconsistent information that has been reported on the table in the third quarter and the presentation on the third quarter performance are noted with concern by the committee. Furthermore, the concern is that the remedies proposed in order to address the delays are not specific. Therefore, committee should be provided with the monthly reports detailing any delays experienced as far as meeting the oversight related targets, the causes and impact proposed remedies, including the monitoring and supporting provided to the teams responsible for delivery. The committee further recommends that the remedies to address underperformance should be detailed and specific to the challenges identified. In addition, the committee should be provided with the report on how physical sittings of the Seventh Parliament will be accommodated.
Hon House Chairperson, as I conclude, the committee notes the disciplinary processes instituted in 12 matters in the third quarter. It has also noted that none of the matters have been finalised by the time of this report. The committee recommends the speed of the disciplinary processes in respect of the 12 matters reported above. The cases of the officials who are on suspension, particularly with full benefits, should be resolved with the necessary urgency, while still ensuring adherence to the applicable legal prescripts. The committee notes with concern the long delays in the filling of the funded post, particularly, those at senior management level.
The most concerning here ... [Interjections.] ... is the detrimental impact these delays may have on the functioning of Parliament. The committee recommends that the filling of critical and funded vacancies be implemented during the start of the Seventh Parliament. Chairperson, in closing, allow me to thank the members and the support staff as we have been processing all these reports. Thank you very much.
Debate concluded.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon delegates, I now put the question that the report be adopted. Before we proceed to voting, I shall allow the provinces the opportunity to make
their Declarations of vote in terms of Rule 86 if they so wish. We shall now proceed to voting on the question, and I will now call upon the provinces to cast their votes. When called upon, the heads of delegation must indicate whether they vote in favour, against or abstain.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly agreed to in accordance with section 65 of the Constitution.
CONSIDERATION OF REPORT OF SELECT COMMITTEE ON LAND REFORM, ENVIRONMENT, MINERAL RESOURCES AND ENERGY - RATIFICATION OF THE CONVENTION ON THE INTERNATIONAL TREATY ON PLANT GENETIC RESOURCES FOR FOOD AND AGRICULTURE
Ms T C MODISE: Hon House Chairperson, let me greet my colleagues and all people that are listening to this report. Let me start by saying that the Select Committee on Land Reform, Environment, Mineral Resources and Energy, having considered the request for approval by Parliament on the Ratification of the Amended Convention on the International Treaty on Plant Genetic Resources for Food and Agriculture,
tabled in terms of section 231(2) of the Constitution, 1996, and Explanatory Memorandum attached thereto, referred to it on
1 February 2024, was briefed by the department on 27 February 2024. The committee thanks the department ...
The HOUSE CHAIRPERSON (Mr A J Nyambi): Hon Modise. Hon members, please. Let’s have order. You can continue. You are protected hon Modise.
Ms T C MODISE: The committee thanks the department for the presentation on the Agreement and requested that the department clarify to the committee why South Africa waited for such an extended period before ratifying the treaty. The department responded that the delay in becoming signatories was to assess which other countries were party to the treaty, what the world opinion was towards the treaty, how the treaty would benefit South Africa and what the potential shortfalls of the treaty were before becoming a signatory to it. The department assured the committee that extensive consultation took place, and that commercial small-scale farmers were consulted. The farmers were also included in the implementation process of the treaty.
The committee enquired whether a similar instrument exists for the protection of animal genetic resources. The response was that globally there is none, and that South Africa together with other countries are consulting each other on a global plan of action for securing animal genetic resources which could potentially lead to an international agreement such as the one serving before the committee.
The committee, after deliberating the matter, recommended that the council, in terms of section 231(2) of the Constitution, 1996, approves this agreement.
Setswana:
Re a leboga Modulasetulo.
Debate concluded.
Question put: That the Report be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Report accordingly agreed to in accordance with section 65 of the Constitution.
ELECTORAL MATTERS AMENDMENT BILL
(Consideration of Bill and of Report thereon)
Ms S SHAIKH: Hon Chairperson, greetings to all hon members. The Constitutional Court, in its judgment in the New Nation Movement NPC and others versus President of the Republic of South Africa and others, declared the Electoral Act No 73 of 1998 unconstitutional. To the extent that it requires that adult citizens may be elected to the National Assembly and provincial legislatures only through their membership of political parties. Parliament enacted the Electoral Amendment Act No 1 of 2023 to provide that adult citizens may contest elections for the National Assembly and provincial legislatures as independent candidates.
As a result of the Electoral Amendment Act that made it possible for independent candidates to contest elections of the National Assembly and provincial legislatures, required consequential amendments to five pieces of legislation, which the Electoral Matters Amendment Bill addresses. The Electoral Matters Amendment Bill 2023 makes consequential amendments to the Political Party Funding Act No 6 of 2018, the Electoral Act No 73 of 1998, the Electoral Commission Act No 51 of 1996,
the Electoral Communications and Transactions Act No 36 of 2005 and the Financial Management of Parliament and Provincial Legislatures Act No 10 of 2009.
The Electoral Matters Amendment Bill seeks to amend the Electoral Act 1998, the Electoral Commission Act 1996, the Electoral Communications Act 2005 and the Financial Management of Parliament and Provincial Legislatures Act 2009, to estimate consequential amendments resulting from the introduction of independent candidates to contest elections of the National Assembly and provincial legislatures.
With regard to the Political Party Funding Act 2018, amongst the amendments is to provide for the regulation of the private and public funding of independent candidates and independent representatives and matters incidental thereto, to preclude the Electoral Commission from accepting donations to the
Multi-Party and Independent Democracy Fund which it has reason to believe is the proceeds of crime, to empower the commission to invest money in the funds in any bank registered in terms of the Banks Act 1990, to amend the powers of the President to make regulations and certain matters, including in respect of the upper limit of donations and disclosure of limits for donations, to amend Schedule 2 in respect of the formula for
the allocation of money in the funds on a proportional and equitable basis, in line with Section 236 of the Constitution.
The National Assembly on the 7 December 2023 referred the Electoral Matters Amendment Bill to the Portfolio Committee on Home Affairs, given the closeness to the end of the term of the sixth Parliament, demanded that the committee adopt a more practical process to consider the Bill by following due process. The Select Committee on Security and Justice and the Portfolio Committee on Home Affairs consulted Parliamentary Legal Services on the joint processing of the Bill and conferral process.
The committees jointly received a briefing by the Department of Home Affairs on the Bill and jointly advertised the Bill for public comments from the 14 December 2023 to the 26 January 2024. Thirteen public submissions were received, of which 10 submissions were substantive. On the 6 February 2024, the committees jointly conducted a virtual public hearing and on the 9 February the committees joined to receive responses to the written and oral submissions from the Department of Communications and Digital Technologies, Department of Home Affairs, the Independent Electoral Commission and Parliamentary Legal Services.
Furthermore, in the case of the section 75 Bill, Parliament has no obligation to consult with provinces as no mandates are required from provinces. The select committee was however advised to request provincial responses from provincial legislatures, as the Bill would have consequential amendments for the financial management of Parliament and Provincial Legislatures Act. The committee requested comment from the provinces and received two responses. One from KwaZulu-Natal and the other from the Limpopo legislature. Both legislatures indicated that they had no objection to the amendments, confirming that the amendments were technical and crucial to accommodate independent candidates.
The Electoral Matters Amendment Bill was referred to the Select Committee on Security and Justice on the 12 March 2024. The committee received a briefing from the content advisor and Parliamentary Legal Services on the 13 March 2024. The committee deliberated on the Bill on the 15 March 2024 and concluded its deliberations on the Bill on the 19 March 2024. In the committee deliberation, the committee considered the public submissions on the Bill, and the amendments that were effected by the Portfolio Committee on Home Affairs.
The Department of Home Affairs and Parliamentary Legal Services responded to matters raised by committee members. Much of the deliberation was on clause 24 of the Bill, which deals with the amendment to Schedule 2 of the Political Party Funding Act 2018. Specifically, the amendment to the formula by which money in the funds is allocated to represented political parties and independent representatives on a proportional and equitable basis and the amendment to regulation 7 and 9 of Schedule 2 of the Political Party Funding Act that is the upper limit donations and the disclosure threshold for donations.
In relation to clause 29, the following key issues were discussed in detail by the committee: substantive and material changes and their bearing on further public participation. It was clear to the committee that the amendments were not material but were consequentially in nature and therefore the Bill did not require further public participation. The formula to calculate the allocation from the fund - that is the 90/10 split - the committee considered the fact that the formula satisfies proportional and equitable distribution in terms of the requirement of section 236 of the Constitution, which states that to enhance Multi-Party Democracy, national legislation must provide for the funding of political parties
participating in national and provincial legislatures on an equitable and proportional basis.
The removal of the amounts and donation thresholds and upper limits to regulations in clause 27 of the Electoral Matters Amendment will provide that the President, acting on the resolution of the National Assembly, may make regulations.
Requires these regulations should be ready as soon as the Bill was enacted to prevent confusion on donations prior to the pending elections. The committee was assured that the department would gazette the regulations as soon as the Bill is assented to. Furthermore, Parliamentary Legal Services advised the Speaker the need for the urgent consideration of a resolution by the Assembly. The Speaker would ensure that the matter is expedited in the National Assembly.
The committee was satisfied with the Bill amends Political Party Funding Act of 2018 to provide for the regulation of the private and public funding of independent candidates and independent representatives. Also, that the Bill seeks to align to various pieces of legislation with the Electoral Amendment Act of 2023 and enables independent candidates to contest elections for seats in the National Assembly and provincial legislatures.
The committee was satisfied with the amendment to Schedule 2 in respect of the formula for the allocation of money in the funds on a proportional and equitable basis in respect of the up to limit of donations and the disclosure limit for donations. Indeed, the allocation of funds complies with section 236 of the Constitution and provides for the equitable and proportional distribution of funds.
Further, the committee has satisfied itself that the regulations will be dealt with by the speedy adoption of a resolution in the National Assembly. This resolution further enhances the National Assembly’s role in respect of the appropriate measures of accountability. The regulations will be dropped with haze and gazetted as soon as the President signs this Bill.
The committee on the 20 March 2024 proceeded to consider and adopt the Bill as referred without proposed amendments. The committee further adopted the report on the Bill on the 20 March 2024. We are pleased that the 2024 national and provincial elections signifies the birth of a new era in our democracy, while previously only political parties could contest elections, now independent candidates may contest.
The Select Committee on Security and Justice having considered the Electoral Matters Amendment Bill, B42B–2023, referred to the committee on the 12 November 2020, classified by the JTM as a section 75 Bill, recommends that the council pass the Bill without amendments. I thank you, Chair.
Declaration(s) of vote:
Mr T MAGWALA: Greetings Chairperson and to the members in the House. The EFF support the Electoral Matters amendment Bill. The amendment seeks to align the Political Funding Act, the Electoral Commission Act, the Electoral Act and the Communication Act with the new reality of the existence of independent candidates. As the ANC nears its slow painful death, faces an absolute rejection in the 29 May election by the people of South Africa.
Chair, one of the consequences of the decline of the ANC is the emergence of numerous political parties and independent candidates like the MK this morning. We have noted the role of certain rich families such as the Oppenheimers in not just providing funding but in a creation of new political parties in South Africa. Contrary to section 12 subsection (h) of the Political Party Funding Act, we believe that all new political parties and independent candidates must declare their funding
to the IEC even before they are represented in Parliament and legislatures.
The IEC should be able to audit their books and check if their funding does not come from illegitimate sources or criminal activities. By only imposing the obligation to report their funding only when they are now represented in Parliament and legislatures, will be too late in our view. This is because they would have utilised the money from criminal processes to campaign and get seats in our Parliament and Legislation.
Thank you. You look very beautiful.
Afrikaans:
Mnr S F Du TOIT: Agb Voorsitter, die skyn word gewek dat onafhanklike kandidate wat nie aan partybeleid, organisatoriese voorskrifte, of enige ander gesagsliggaam buiten hulself en die Parlimentêre eed, onderworpe is nie, mag deel in befondsing, wat grondwetlik aan politieke partye, wat in wetgewers deelneem, verdeel moet word.
English:
The ANC is trying to use this Bill to force the proverbial constitutional life to cut a larger piece of the cake for themselves while giving the independent candidates only a
width and depriving opposition parties from their almost fair share.
Afrikaans:
Hierdie is slegs nog ’n voertuig wat, onder andere, die ANC onregmatig kan befonds en nie noodwendig in die belang van demokrasie en die kieser in Suid-Afrika gaan wees nie.
English:
By approving this Bill today, the ANC will now yet open another door for legal battles in the Constitutional Court as with the National Health Insurance, NHI, and the Expropriation Bill. This, to the taxpayers’ expense.
Chair, if the ANC want favour with the independent candidates by supporting and driving a seemingly constitutionally sound Bill, that in its reality is a vehicle to fund the ANC and degenerates an already flawed democratic system in South Africa. The FF Plus cannot support this Bill. Thank you.
Mr F J BADENHORST: Hon Chair, I want to state on record that even though some opposition parties will be negatively affected by the allocation of party funds, except for the IFP, that supported our objections during our select committee
deliberation session none of the other opposition parties objected to this or fought to have this changed in any other committee meetings. I am specifically referring to clause 29 which increases the proportionality of the allocation from 66,6% to 90% and it decreases the equitable share allocation from 33% to 10%.
Hon Chair, section 236 of the Constitution provides that; and I quote: “The national legislation must provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis.” This proposed clause goes against the tenets of the Constitution. It is no surprise that the ANC stands to benefit most from this, with an extra R15 000 000 going to the ANC in the next year alone while most opposition parties’ income will be drastically reduced.
Chair, the DA maintains that the current funding model remains and that a proper investigation is done in the party funding before the laws are amended. The DA does not support this Bill. I thank you.
Mr T S C DODOVU: Hon Chairperson, the point of departure is that the Electoral Amendment Bill is a consequential amendment
emanating from the amendment of the Electoral Act. Therefore, the Bill seeks to amend the Political Party Funding Act of 2018, also, to align various pieces of legislation with the Electoral Amendment Act of 2023, which enables the independent candidates to contest elections for seats in the National Assembly and the provincial legislatures.
The Constitution of the Republic provides that to enhance the multiparty democracy, the national legislation must provide for the funding of practical parties participating in the national and provincial legislatures on an equitable and proportional basis. It is important to note, therefore, that the Constitution does not prescribe the formula to be adopted to ensure that funding of political parties is done in a proportional and equitable manner. The Constitution left that responsibility to the legislative arm of the state which we are doing this afternoon.
We are convinced as the ANC that scientifically the 90/10 formula passes the test of proportionality and equitability in the allocation of funds to political parties. Contrary to the lie that is peddled here this afternoon and elsewhere to repeatedly indicate that this will benefit the ANC only. The truth is that all parties including the DA, the FF Plus, the
EFF and everybody else will benefit proportionally from the formula as provided for in this particular Bill. Again, that all parties will benefit equitably from the 90/10 formula.
My last point, Chair, that I want to make is that regulation for threshold by the President will ensure that matters relating to inflation, the cost of running the political party including the cost of the elections will be considered by the President in outlining the transferring of the regulation.
Now, all these parties claim that the ANC’s support is going down, so, let them win! Let them win the elections so that they get a high percentage in order to address the deficiencies that they claim. It is not a deficiency.
Proportionality as well as credibility is something that this particular legislation is proposing and this is what we are saying as the ANC. Let us go and fight on the 29 May. Let us not use other platforms, waffle here and talk about things that are not there. Chair, we are ready for them, we are ready. We think that this will go a long way in terms of helping us to move forward. Thank you very much.
The HOUSE CHAIRPERSON (Mr A J Nyambi): Thank you, hon Dodovu. Order! Order, members. We will now allow one minute for the
hon delegates who are outside and those on virtual platform to join the House. One minute.
Debate concluded.
Question put: That the Bill be agreed to.
Bill agreed to in accordance with section 75 of the Constitution.
CONSIDERATION OF COMPANIES SECOND AMENDMENT BILL [B26B–2023] (NATIONAL ASSEMBLY – SECTION 75) AND REPORT OF SELECT COMMITTEE ON TRADE AND INDUSTRY, ECONOMIC DEVELOPMENT, SMALL BUSINESS DEVELOP-MENT, TOURISM, EMPLOYMENT AND LABOUR THEREON
CONSIDERATION OF COMPANIES AMENDMENT BILL [B27B–2023] (NATIONAL ASSEMBLY – SECTION 75) AND REPORT OF SELECT COMMITTEE ON TRADE AND IN-DUSTRY, ECONOMIC DEVELOPMENT, SMALL BUSINESS DEVELOPMENT, TOURISM, EMPLOYMENT AND LABOUR THEREON
Mr M I RAYI: Hon House Chairperson, greetings to you, hon Mntimande. The Companies Second Amendment Bill was passed by the National Assembly and referred to the National Council of Provinces for concurrence on the 30th of November 2023. The
committee received a briefing on the on the Bill from the Department of Trade, Industry and Competition, on the 5th of December 2023.
The purpose of the Bill or the purpose of the Companies Second Amendment Bill is to amend Companies Act of 2008 so as to amend the term bars in respect of proceedings to recover any loss and damages or cause for which a person may be held liable in terms of section 77 of the Companies Act.
Further, the Bill aims to amend the time bar for the bringing of an application to declare a person delinquent in terms of section 162, subsection 2, and subsection 3 of the Companies Act, and to provide for matters connected there with.
The process followed, the committee invited public comments through advertisement in newspapers, social media and the website of Parliament and government. The closing date for reaching submission was on the 29th of January 2024. The advertisement was published in all 11 official languages. The committee received submissions on the Bill from the following stakeholders: The Institute for Directors, South Africa and King Committee, Law Society of South Africa, and the Western Cape Government.
The committee held public hearings on the 21st of February 2024 and received responses from the Minister of Trade, Industry and Competition, on the 27th of February 2024. This was followed by responses from the Department of Trade, Industry and Competition on the 5th and 12th March 2024 on the submissions received. On the 12th of March 2024, the committee deliberated on the Bill.
And the outcome of the committee’s consideration was as follows: five members of the ANC, voted in support of the Bill, two members of the DA voted against the Bill. So, the Bill hon House Chair was agreed without any amendments.
Coming to the next order, which is, the Companies Amendment Bill, which is the main Bill. This Bill was passed by the National Assembly and referred to the National Council of Provinces for concurrence on the 30th of November 2023. The committee received a briefing on the Bill from the Department of Trade, Industry and Competition, on the 5th of December 2023.
The purpose of the Companies Amendment Bill is to amend Companies Act of 2008, so as to insert certain definitions and amend definition of securities, to clarify when a notice of
amendment of a memorandum of incorporation takes effect. And to provide for the commission to publish as prescribed, the notice of the location of company’s records.
Further, the purpose is to differentiate where the right to gain access to company’s records may be limited. To provide for the preparation, presentation and voting on company’s renumeration policy and director’s renumeration report. To provide for the filing of a copy of the annual financial statement and to empower the court to validate the irregular creation and the allotment best financial statement. And to empower the court to validate the irregular creation and the allotment of issues of shares.
In addition, it is to clarify that shares which are not fully paid are to be transferred to a stakeholder and dealt with in terms of a stakeholder agreement. To exclude subsidiary companies from the requirements relating to financial assistance. To provide for instances where special resolution is required for the acquisition by a company of its own shares. To provide for a social and ethic committee report and remuneration report. Also be presented at an annual general meeting of a public company. And to provide for the
circumstances under which a private company will be a regulated company.
Further, the purpose is geared to provide for publication of the application for exemption from the requirement to appoint Social and Ethics Committee to deal with the composition of the Social and Ethics Committee. To provide for the preparation by Social and Ethics Committee and Social and Ethics Committee report as prescribed.
The committee report to be presented at an annual general meeting or shareholders’ meeting. Just looking for the time, I don’t see it here, I don’t see the time. So, I don’t know how far, am I.
In addition to the envisaged act is crafted to extend the definition of employee share scheme, to include situation where there are purchases of shares of a company. To provide for the determination by the Minister in consultation with the panel of financials’ threshold, for the purposes of identifying the private companies. To which part B and C of chapter five of the act apply. To provide for the post commencement finance for unpaid amounts that are due to the landlord during business rescue proceedings and to provide for
the commission to substitute the contested name of a company under certain circumstances.
Finally, the purpose is crafted to provide for mediation, conciliation and arbitration by the company’s tribunal, only in respect of a relief of complaints in terms of the act. To further provide for the operation and governance of company’s tribunal. To provide for a pronouncement that may be issued by the financial Reporting Standard Council and to provide for matters connected with.
Hon House Chair, in terms of the process follow it’s similar to the one of the second amendment. And there were 29 stakeholders who participated in the public hearings. So, these hearings were also on the 21st of February and the responses were provided by the Minister again on the 27th of February and this was followed by the department on the 5th and 12th of March on the submissions.
And therefore, the outcome was five members of ANC voted in support of the Bill, two members of the DA voted against the Bill and the committee agreed to the Bill without amendments. Thank you very much.
Declarations of votes made on behalf of Freedom Front Plus, Economic Freedom Fighters and African National Congress.
Declarations of vote:
Mr M A P DE BRUYN: Hon House Chair, this Bill will open the door to more governmental interference in the ownership of companies and the Companies Tribunal will have the authority to make black economic empowerment, BEE, for example, or broad-based black economic empowerment, B-BBEE, for example,
even more binding and compulsory. No Bill should be adopted if it disregards the corporate legal personality of companies by unduly piercing the corporate ... [Inaudible.] ... This Bill will worsen the growing uneasiness directors and managers of companies that are keeping the economy of this country afloat.
This Bill will only serve to compel investors to reconsider the future employment prospects in South Africa and therefore the Freedom Front Plus rejects this Bill. Thank you.
Ms N TAFENI: House Chairperson, it has been 15 years since the introduction of the Companies Act. It is, indeed, correct that things have improved in terms of various administration process. It is also true that the Companies Second Amendment Bill seeks to introduce an amendment that will go a long way
in improving various administrative and policy issues identified in the review process. We agree that there is a need for more transparency in terms of the payment of directors, to curb the payment gap in most companies. It is not only the gender pay gap that we need to deal with, but it is also the racial gap.
It is not a secret that the majority of companies continue to pay white directors and senior managers more than Africans. It is also not a secret that the majority of companies refuse to transform, and their management level remains exclusively white spaces. We agree that there is a need for more transparency in terms of the shareholders of companies. We agree that the requirement to file an annual return with the Companies and Intellectual Property Commission, particularly the issue of the latest financial statements is unnecessary for small businesses. However, even the issue of paying R100 for everyone’s annual fine must be scrapped.
In conclusion, there is a far greater omission in the Companies Second Amendment Bill that is deliberate, mischievous, and will undermine all efforts to improve corporate governance, including financial accountability or fight grey listing. We must include in these amendments and
non-negotiable requirement for companies to disclose all transactions between subsidiaries. However, the Companies Amendment Bill is silent on this. The issue of antimoney laundering and terrorism in just one side of the problem. As EFF, we reject this Bill. Thank you, House Chairperson.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon members! Thank you, hon member, hon Tafeni. The next speaker is hon Mmoiemang, and also, hon members, I would like to remind you that for declaration is one per party, not two per party. Thank you.
Hon Mmoiemang! Sorry to disturb you, hon Mmoiemang. Hon members, please can we always understand what we are doing. We are on the Fifth Order. Therefore, please, hon member, it’s one per party. One per party on the declaration.
Mr K M MMOIEMANG: Hon House Chair, I will then allow hon Dangor to do the declaration who should encapsulate both the first and the second. Thank you, hon House Chair.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Thank you very much, hon member. In that order, hon Dangor.
Mr M DANGOR: Thank you, hon House Chair.
Mr K M MMOIEMANG: Hon House Chair, there’s confusion at the Table. Maybe just to clarify, my declaration will be on the Second Amendment Bill, which is number B26B of 2023.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Proceed, hon Dangor.
Mr M DANGOR: House Chairperson, I’m doing this ...
The HOUSE CHAIRPERSON (Ms W Ngwenya): Sorry, hon members, you know what you are confusing me, and I don’t know why always when I’m presiding then you, hon members, will confuse me. I think parties must learn to focus themselves than to come in the House and cause confusion and confuse myself. Please, we’re all leaders here.
Mr K M MMOIEMANG: Thank you, hon House Chair, for giving me an opportunity. Like as I indicated the declaration that I’m making is on the Second Amendment Bill, which is Bill number B26B of 2023, and my humble and sincere apology, hon House Chair, if there is any confusion that we might have created in the House. Hon House Chair, allow me to borrow from the words of our President, the commander in chief, the face of the ANC campaign, His Excellency President Ramaphosa, who said at the National Anticorruption Advisory Council’s national dialogue
on building South Africa as follows, I quote ... [Interjections.]
Ms M DLAMINI: Who also hides dollars under his mattress. That one who ...
The HOUSE CHAIRPERSON (Ms W Ngwenya): Order, hon Dlamini! Order! Order, hon Dlamini! Order!
Mr K M MMOIEMANG: ... “Corruption has wounded our democracy and shaken our people’s faith in our institutions. If corruption is not arrested, the greatest damage will not be in the funds stolen, or the jobs lost, or the services not delivered. However, the greatest damage will be to the belief in democracy itself.” For a very long time the act of corruption has been associated with malfeasance in government affairs only. However, the investigation into state capture exposed on a grand scale how government corruption is interlinked to that of a private sector - how the private sector corrupts government procurement processes.
Corruption must also be understood as a global problem that impedes service delivery and perpetuate poverty, inequality, injustice and unfairness. It is not just prevalent in the
local context of South Africa and African continent, but also in the global context and demands a global response. We have seen multinationals pleading guilty and also reimbursing our tax base.
In 2017, the African National Congress’s 54th National Congress resolved to support the establishment of the Zondo Commission to investigate malfeasance that occurred within the state. We understood at the time that it was necessary to ... [Inaudible.] ... as part and parcel of our broader effort to end state capture and corruption, but also to ensure that we create the necessary base to have free corrupt society. Hon House Chair, we support the time bar as contained in section 162(2) and (3), and the two recommendations that were made by Zondo Commission is also supported. The ANC supports the Second Amendment Bill. Thank you, House Chair.
Ms M DLAMINI: You only support what suits you with the Commission. The ANC only supports ... [Interjections.]
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon Dlamini ...
IsiZulu:
... akukona enkulisa lapha. Awuyekele ukudlala. Akukona enkulisa lapha.
English:
Mr I NTSUBE: Throw her out. Throw her out, House Chair.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Hon members! Order, hon Ntsube! Hon members, order! We will now allow one minute to the delegates who are outside the visual platform to join the House, one minute.
Question put: That the Bill be agreed to.
Bill agreed to in accordance with section 75 of the Constitution.
REPORT OF SELECT COMMITTEE ON TRADE AND INDUSTRY, ECONOMIC DEVELOPMENT, SMALL BUSINESS DEVELOPMENT, TOURISM, EMPLOYMENT AND LABOUR
(Consideration of Companies Amendment Bill and of Report thereon)
Debate concluded.
Question put: That the Bill be agreed to.
Bill agreed to in accordance with section 75 of the Constitution.
REVENUE LAWS AMENDMENT BILL
(Consideration of Bill and Report thereon)
Ms M L MAMAREGANE: Thank you, hon Chairperson, ...
Sepedi:
... mohl Mme Ngwenya.
English:
Hon Chairperson, I hereby present the Report on Consideration of New Laws Amendment Bill. B39B-2023, as per National Assembly Section 77 and Report of Select Committee on Finance thereon. The Revenues Laws Amendment Bill was tabled in Parliament on 1 November 2023 with an intention to amend the Income Tax Act. The intention of our caring government with this Bill is to create a two-pot system in where ordinary citizens can access their funds to cushion them from distress.
The two-pot system will have a savings pocket in where citizens can withdraw from. This will start from 1 September 2024. We are saying considering the economic climate, citizens who qualify for this must take this opportunity and use it towards their development.
Hon House Chairperson, as expected we took this Bill in a way of public consultation. However, we must stress, a lot can still be done to make sure that Parliament attracts a lot of stakeholders to comment on Bills such as this. The committee welcomes the new implementation date of 1 September 2024.
Ideally this should have been earlier. The committee notes National Treasury response that while the draft legislation had a very ambitious implementation date, the changes that were required to be put into the system were substantial.
These changes needed a lot of time not only for the industry, but also to enable the SA Revenue Service, Sars, to put in place measures to be able to implement the withdrawals. As the withdrawals are to be taxed of the marginal rate and it will be a huge percentage of what is withdrawn and is extremely likely that most of those who withdraw from their funds will be very disappointed and maybe even very frustrated.
It is utterly important that the National Treasury, Sars and the pension fund industry inform and educate members about the tax implication of accessing the savings in the two-pot system before retirement. The committee urges that this be done. The SA Revenue Service should monitor the tax implications, individuals and the state with the view of easing the tax burden on withdrawals date in terms of the two-pot system in future of this Bill.
Hon House Chairperson, having said that, as the Select Committee on Finance having examined the Revenue Laws Amendment Bill, we accept this Bill as it is for consideration. I thank you, hon House Chairperson.
Declarations of Vote:
Mr M S MOLETSANE: Hon House Chairperson, the EFF engages this Bill with mixed feelings. Firstly, we are pleased that this Bill, will provide some form of relief to the working class. Therefore, we are supporting it processing into a law.
However, we are not pleased with the fundamental reasons that have put us here. We are here because the Sixth Administration under Mr Ramaphosa has destroyed the economy. We are faced with an economy which is not growing. As a result, workers are
burdened with taxes, while wages remain stagnant and while the cost of leaving increases drastically.
When the EFF takes power after 29 May, this is what we will do.
The HOUSE CHAIRPERSON (Ms W Ngwenya): Order, hon members!
Mr M S MOLETSANE: The EFF-led government will establish a state-owned asset management firm to manage all municipal pensions. The EFF-led government will also consolidate all national, provincial, municipal and state-owned company assets under one asset manager and create the biggest balance sheet in the country. It will consolidate all municipal pensions to be administered under the new state-owned company. It will amend the Pension Funds Act to increase investment in private equity for infrastructure development, small medium enterprises development and land transformation.
The EFF-led government will pass a Special Appropriation Bill allocating R100 billion to the Sovereign Wealth Fund in the 2025-26 Budget. It will pass a Special Appropriation Bill to write off some debt in state-owned companies and convert the Public Investment Corporation debt to equity.
The EFF is a government in waiting. We urge all our people to go out and vote come May 29. Thank you, House Chairperson. [Time expired.]
Mr Y I CARRIM: Hon House Chairperson, I also feel very sorry because there is no need to respond to this. However, Mr Moletsane has been so gracious and helpful in the processing of the Bill, but I do not know of how much he says he believes in.
Firstly, it is not even a speech relevant to this Bill. They are desperately scraping the bottom of the barrel to bring in a lot of hairy fairy pie in the sky, fantastic and fabulous staff. However, I do not know, and you know I got an E for maths in matric which I am proud of because I was expecting an
F. Alright.
Now, Mr Moletsane I am sure did better than me! However, he must explain to this House one day as ... [Interjections.]
Ms M DLAMINI: Play the game, not the man!
Mr Y I CARRIM: How is it possible, hon House Chairperson? [Interjections.]
Ms M DLAMINI: Keep quiet! Just sit down!
Mr I NTSUBE: Order, Mbali!
Mr Y I CARRIM: How is it possible that a party with 10% of votes and a maximum 19% of the votes ... [Interjections.] If you want to govern you have to win 51% of the votes! Mr Moletsane you know that!
Secondly, a lot of the things he says they cannot do, even if in the year 2095, remotely, if possible, they came to power with a slide majority, if that were possible at all. So, it is just as much a dream, as he dreams of what he is going to do. You see it is very easy to say it, because you know you never going to be a majority. You know you are never going to win.
So, you can offer all these promises. [Interjections.]
Ms M DLAMINI: Speak to the Bill, Sir. We do not have the whole day!
Mr Y I CARRIM: You are enjoying a party of fantasies!
Mr I NTSUBE: Chairperson, throw the hon Dlamini out!
Mr Y I CARRIM: Hon House Chairperson, covid came about and not because of Mr Ramaphosa our President! It is because of the pandemic which South Africa had nothing to do with it! The main trust for this Bill, is the effect of it! [Interjections.]
The one final point I want to say, House Chairperson, is that the DA and Mr Moletsane’s party and our party feel very strongly that to tax people who are going to withdraw from the savings because of the financial distress has hired the SA Revenue Service, Sars. Every R30 000 you withdraw. Please educate people, because R15 500 is all you are going to get because R14 500,00 is going to the tax person. We disapprove of that. We want the committee to address it by engaging with Sars and the National Treasury. Thank you very much and Mr Moletsane agrees with me.
Mr M S MOLETSANE: Hence our mixed feelings!
Question put: That the Bill be agreed to.
Bill agreed to in accordance with section 75 of the Constitution.
The Council adjourned at 16:12.