Questions and Replies

27 January 2017 - NW2608

Profile picture: Malatsi, Mr MS

Malatsi, Mr MS to ask the Minister of Sport and Recreation

What is the total amount in rands that was spent on (a) him and (b) each member of his delegation on (i) flights, (ii) accommodation and (iii) any further expense for the (aa) 2015 Rugby World Cup in England, United Kingdom, (bb) 2016 Olympic Games and (cc) 2016 Paralympic Games in Rio de Janeiro, Brazil, (dd) Commonwealth Games host announcement in Auckland, New Zealand and (ee) 2015 Cricket World Cup in Australia and New Zealand?

Reply:

We are still trying to source information from our archives. The Information is not readily available

27 January 2017 - NW2682

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Bergman, Mr D to ask the Minister of Sport and Recreation

(a) On which date were the promoters of the SA Broadcasting Corporation boxing bout informed that the event would be cancelled which was to have taken place on 24 November 2016 in Kimberley in the Northern Cape, (b) what was the reason for the cancellation of the specified event, (c) what amount was lost due to the cancellation of the event and (d) who paid for the lost funds?

Reply:

We are still trying to source in the archives; the information required is not readily available

27 January 2017 - NW2609

Profile picture: Malatsi, Mr MS

Malatsi, Mr MS to ask the Minister of Sport and Recreation

(1)What amount has Boxing SA spent on (a) legal fees and (b) legal counsel in the Xolisani Ndongeni v PBI Operations case to date; (2) whether a settlement has been reached between all parties involved in the specified case; if not, why not; if so, what are the relevant details? NW3022E

Reply:

We are still trying to source information and consulting with the Boxing SA on this matter and the information required is not readily available

25 January 2017 - NW2620

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Marais, Mr S to ask the Minister of Defence and Military Veterans

Is there a capped budgetary allocation for the upgrade of the military residence of a certain person (name and details furnished), who is stationed at the Youngsfield Military Base in Wetton, Cape Town; if not, why not; if so, what are the (a) details of all upgrades made at the specified person’s residence and (b) related cost per upgrade?

Reply:

There is no capped budgetary allocation for individual military residential upgrades. Budgetary allocations wrt building and maintenance are centralised and, therefore, all repairs and day-to-day maintenance are done on request. This also includes emergency repairs. The house of Col Mongo, the Officer Commanding of the Unit is repaired as need arises. Depending on the condition of a house, where breakages and wear and tear takes place, houses are repaired. The following repairs were done in the official residence of the OC:

(a) 2012 Lifting of old floor covering and replacing with Novillon.

2012 Fitting of blinds to windows

2013 Renovation of bathroom and toilet.

2014 Paving

2015 Replacement of gutters.

2015 Replacement of burst geyser.

2015 Painting of the exterior (unit purchased paint and only labour was outsourced as the house is a double storey).

2016 Roof leaks repaired.

(b) The house needs much attention but since funds are not available, repairs are done in relation to wear and tear, OHS matters, etc. Paving was done as the house is surrounded by big trees from the neighbours causing permanent shade that kills the grass.

25 January 2017 - NW2378

Profile picture: Holomisa, Dr BH

Holomisa, Dr BH to ask the Minister of Defence and Military Veterans

(1)With reference to the 2015-16 Annual Report of her department which indicates that about 14 666 military veterans had access to health care in the past year, which represents a commendable increase from the 2014-15 financial year, as well as an increase of R28 569 000 to about R38 million in expenditure initially allocated to the subprogram me of health and wellness, (a) of the 14 666 military veterans, how many accessed services and (b) where did they access the services given the reported access problems linked to the court process related to the provision of health services beyond military hospitals; (2) what amount out of the amount that was spent in the 2015-16 financial year on the specified sub-programme (a) was for expenditure on health and wellness for the current financial year and (b) what amount was for previous years; (3) in view of the fact that there is no other service provider other than SA Military Health Services (SAMHS), (a) exactly which service providers were paid for which services delivered and (b) when were the services delivered; (4) (a) what amount of the payment that was made for the subprogram was paid to SAMHS and (b) for which years?

Reply:

Response (a) and (b): of the 14 666 the following military veterans accessed services:

Year

Authorised to access Health care

Number of military veterans Head Count at SAMHS Facilities

Accessed through road show conducted by MVHPA

Accessed through MVHPA doctors

Accessed through ZEAL Health doctors

2015/16

14666

4069

   

1096

2014/15

11514

3824

5479

1299

 

2013/14

4719

2526

2121

   

2012/13

 

691

     

2011/12

 

362

     

(2) what amount out of the amount that was spent in the 2015-16 financial year on the specified sub-programme (a) was for expenditure on health and wellness for the current financial year and (b) what amount was for previous years;

Response (2):

Service Provider

2015/16 invoices

Previous Financial Years

Total

SAMHS

R30 966 202.48

R24 500 000.00

R55 466 202.48

MVHPA

0

R826 320.85

R826 320.85

ZEAL

R474 984.63

 

R474 984.63

TOTAL

R31 441 187.11

R25 326 320.85

R56 767 507.96

(3) in view of the fact that there is no other service provider other than SA Military Health Services (SAMHS), (a) exactly which service providers were paid for which services delivered and (b) when were the services delivered;

Response (3):

ZEAL Health Innovations was procured for a 3 month contract (1 April 2015 to 30 June 2015) with a total payment of R 474 984.63 for provision of:

  1. Primary and Chronic health services and related medication for military veterans.
  2. Dedicated counselling services for military veterans and their dependent

(4) (a) what amount of the payment that was made for the subprogram was paid to SAMHS and (b) for which years?

Response (4):

Service Provider

2015/16

Previous Financial Years

TOTAL

SAMHS

R30 966 202.48

R24 500 000.00

R55 466 202.48

NW2709E

23 January 2017 - NW2280

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Van Damme, Ms PT to ask the Minister of Communications

(1) Whether the South African Broadcasting Corporation (SABC) has reviewed (a) Mr Hlaudi Motsoeneng’s performance contract since his redeployment to the position of Group Executive of Corporate Affairs and (b) current affairs of the SABC; if not, why not; if so, will she furnish Ms P T van Damme with a copy of the specified review; (2) Whether the change of position for the specified person from Chief Operating Officer to the Group Executive of Corporate Affairs of the SABC had any implications for the person’s remuneration package; if not, what is the position in this regard; if so, (a) how was his remuneration package adjusted and (b) what is the total amount of remuneration that the person receives?

Reply:

1. (a) No

(b) No

The SABC is currently busy with the implementation of the performance management system to be implemented later in the year hence, no performance review on Mr Motsoeneng or any other employee of the SABC has been conducted. The quarterly review system is, however, done by individual line managers and in this case Mr Motsoeneng has not been in this (new) position for the period of 3 months.

SABC Current Affairs are operating normally and efficiently and there is no need for a review.

2. The disclosure of employee remuneration is against employee regulations. Further information about SABC employees’ remuneration may be obtained from the Annual Report which has been tabled in Parliament.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

18 January 2017 - NW237

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Mulaudzi, Mr TE to ask the Minister of Small Business Development

Whether she and/or her department has bought advertising space in The New Age in the (a) 2012-13, (b) 2013-14 and (c) 2014-15 financial years; if so, (i) what number of times and (ii) for what amount in each specified financial year?”

Reply:

The Department of Small Business Development is a newly established department that was allocated a separate Vote from the 1st of April 2015. There is no expenditure for the requested periods.

(a) 2012-13 not applicable.

(b) 2013-14 not applicable.

(c) 2014-15 not applicable.

10 January 2017 - NW2225

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Maynier, Mr D to ask the Minister of Finance

Whether the information with regard to the suspicious transactions contained in the certificate provided by the Financial Intelligence Centre, dated 4 August 2016, which forms part of his affidavit in respect of his application to the High Court of South Africa (details furnished), has been referred to the (a) SA Police Service, (b) SA Revenue Service and/or (c) any other (i) organ of state and/or (ii) entity for further investigation; if not, in each case, why not; if so, in each case, (aa) when was the information referred and (bb) why was the information referred?

Reply:

(a) (b) and/or (c) (i) and/or (ii) (aa) and (bb)

It is not possible for me to disclose this information, as the FIC is not able by law to provide such information to the Minister of Finance. Provisions in the FIC Act place strict limitations on the public disclosure of details concerning information reported to the FIC and its activities concerning such information, which prevents it from acknowledging whether it has, or has not, provided information to an investigating agency or any other competent authority (section 29(4), read with section 53 and sections 40 and 41, read with section 60).

While the FIC’s mandate requires that it work in collaboration with competent authorities and agencies in any given investigation, the public disclosure of information relating to matters that may be the subject of an investigation could potentially have negative impact or undermine any such an investigation. It would therefore be irresponsible for the FIC to comment in public on operational matters in which it may be involved.

The information contained in the certificate dated 4 August 2016 as submitted by me on 14 October 2016 to the High Court (Gauteng Division, Pretoria), numbered 1 to 72, refers to reports submitted to the Financial Intelligence Centre (FIC) by various institutions pursuant to their legal obligations under section 29 of the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001, the FIC Act).

The FIC uses reports such as these, along with other available information to conduct its analysis and produce financial intelligence reports. It is important to note that one (1) STR reported to it does not equate to the FIC reporting one (1) suspicion for investigation. Rather, the FIC may evaluate patterns found across multiple reports made to it before it makes a referral to the law enforcement and other competent authorities for their investigation.

10 January 2017 - NW2740

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Lees, Mr RA to ask the Minister of Public Enterprises

What is the (a) name, (b) scope and (c) value of each contract that pertains to the proposed merger of (i) the SA Airways, (ii) Mango and (iii) SA Express, as announced by her whilst addressing the National Council of Provinces on 30 November 2016; (2) Whether she will make a statement on the matter?

Reply:

(1) a) Bain and Company is the consultant appointed for the development of an optimal corporate structure to re-align the state owned airlines.

    b) The work to be conducted by Bain and Company South Africa entails the development of the said optimal corporate structure in line with Government’s objectives and in cognizance of the industry best practices.

   c) The total cost of the project is R12.1 million.

(2) I will not make a statement on the matter.

 

10 January 2017 - NW2696

Profile picture: Figg, Mr MJ

Figg, Mr MJ to ask the Minister of Labour

What is the total cost of producing one artisan for each skilled trade?

Reply:

I am not in a position to provide you with the cost associated with training of artisans in the country as I am no longer responsible for skills development. The function was transferred to the Department of Higher Education as from 01st April 2010.

10 January 2017 - NW2493

Profile picture: Chewane, Dr H

Chewane, Dr H to ask the Minister of Health

How many (a) doctors and nurses are currently employed at Tshilidzini Hospital in Limpopo, (b) vacancies does the specified hospital have for (i) doctors and (ii) nurses and (c) nurses upgraded their qualifications to be considered for Occupation Specific Dispensation in 2010 and 2015?

Reply:

(a) There are currently 56 Doctors and 774 nurses employed at Tshilidzini Hospital in Limpopo.

(b) It will be misleading to determine the number of vacancies for Doctors and Nurses based on the present organogram because it is completely faulty. The Province is in the process of determining a correct one and will give details in due course.

(c) Nurses who upgraded:

 - 2014: Assistant nurse to enrolled nurse = 3

               Enrolled nurse to professional nurse = 10

               Post basic (advanced) = 2

              Total = 15

- 2015: Assistant nurse to enrolled nurse = 6

          enrolled nurse to professional nurse = 12

          Post basic (advanced) = 5

         Total=23

        Post basic over the 2 year broken down by speciality

       Trauma = 2

       Psychiatry = 2

      Paediatrics = 1

     Orthopaedics = 1

     ICU = 1

     Total = 7

END.

10 January 2017 - NW2635

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Carter, Ms D to ask the President of the Republic

Whether, with reference to his statement at the Royal Bafokeng regarding the responsibility to fight corruption (details furnished) and his recent statement in Pietermaritzburg that he knows the thieves who are stealing (details furnished), he has reported these corrupt transactions to the SA Police Service; if not, why not; if so, what are the details of the cases?

Reply:

We have instructed the Anti-Corruption Task Team to work tirelessly to root out corruption at all levels of the public services where it exists. A lot of good work has been done as reported recently by the Anti-Corruption Inter Ministerial Committee.

In some of the progress made, since April 2013 I have signed more than 27 proclamation orders which has resulted in the Special Investigating Unit recovering cash or assets to the value of R204 million and managed to have contracts to the value of R755 million cancelled. Over the past three years 32 people involved in corruption cases worth R3 billion have been convicted. 58 people involved in fraud to the value of close to R200 million were also convicted.

We are committed to do even more to defeat the scourge of corruption. We do not only talk about fighting corruption, but we are doing something about it. The few cases I have mentioned above attest to the progress we are making.

We will continue to speak out to discourage unethical behaviour and to discourage those who may be tempted. The statement was made in that spirit.

10 January 2017 - NW2679

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Alberts, Adv A to ask the Minister of Health

(1)(a) How many persons in each year since 2009 died due to negligence by medical and other personnel of state hospitals, (b) in which hospital did each death from such negligence occur and (c)(i) which form of negligence resulted in the deaths and (ii) how many deaths resulted from such negligence; (2) which measures have been put in place or will be put in place to eliminate such deaths; (3) (a)(i) how many and (ii) what type of cases of negligence have been reported to the health ombud since it came into existence, (b) how many of the different type of charges were resolved and resolved in total and (c) how does the (i) national mortality rate since 2009 and (ii) number of deaths that have occurred nationally and were reported to the health ombud, compare to internationally accepted standards as prescribed by the World Health Organisation and/or other legitimate health organisations?

Reply:

(1) (a) Honourable Member, the question of whether a person died from negligence by medical and other personnel in a hospital, whether state or private, is not a medical diagnosis. It is a conclusion that can only be reached as a result of a court hearing or a hearing by the various statutory bodies like the Health Professions Council, the Nursing Council, the Pharmacy Council or the Allied Health Professions Council.

Hence we will have to peruse court records with the Department of Justice to clinch such information.

We will also have to peruse the rulings of the various statutory councils.

We will then be in a position to provide you with figures.

(b) and (c) The information so clinched as stated above will answer these two questions. Hence we will have to wait for that information first.

(2) Every hospital, clinic, health facility and health worker use special protocols and practices to avoid death as much as possible.

(3) The Health Ombuds, since starting work six months ago, has not yet reported on any case. This week the Office announced that it will issue the first report on the 18th of January 2017. Honourable Member has to be patient to wait for that.

END.

10 January 2017 - NW2734

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James, Ms LV to ask the Minister of Health

What (a) are the main reasons for the country’s in-patient early neonatal death-rate increasing from previous years to 12,4 for every 1000 live births in the 2015-16 financial year and (b) interventions will be undertaken to ensure that the specified rate is reduced to the target of 10 deaths for every 1000 live births set in the 2016-17 financial year?

Reply:

(a) The i-ENDR for 2014/15 financial year was 10.2 deaths per 1,000 live births (DHIS, 2014/15); and the i-ENDR was 10.5 per 1,000 live births in 2015/16 financial year, and not 12.4 as stated in the parliamentary question.

(b) The NDOH and all provinces have adopted the national newborn care implementation framework for action in 2013/14, which was followed by intensive provincial, district and facility capacity building and skills development (including improving skills to resuscitate babies through a programme called Helping Babies Breathe – given that asphyxia is one of the key causes of the neonatal mortality) to improve the quality of care for newborns especially at district hospital level, where large number of live births occur. In addition, the Department has strengthened access to contraceptives to reduce unplanned and unwanted pregnancies, especially amongst teenagers who are likely to deliver prematurely.

Further, to address the large need to improve outcome of premature babies, the NDOH supplied CPAP machines to 35 district hospitals across all provinces to improve their ability to resuscitate infants.

The level of new HIV infections in newborns has decreased over the past 5 years in particular due to the success of the prevention of mother to child transmission programme. The Department has launched the ‘Last Mile Plan’ to get as close to elimination of mother to child transmission as possible.

END.

10 January 2017 - NW2735

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Volmink, Mr HC to ask the Minister of Health

(1)What do practitioners of Chinese Medicine and Acupuncture, registered with the Allied Health Professions Council of South Africa, require in order to import single (a) raw and/or (b) powdered Chinese herbs for medicinal purposes and dispensing; (2) whether there are any labelling requirements for the specified single Chinese herbs; if not, why not; if so, what are the relevant details; (3) whether any prohibitions exist for importing single Chinese herbs for use by the specified practitioners; if so, what are the relevant details

Reply:

(1) The Medicines and Related Substances Act, 1965 (Act 101 of 1965) controls the sale of medicines. In accordance with Regulation 25 of the Act, medicines are categorised into four categories of which category D refers to Complementary Medicines intended for use in humans and animals.

The Council has identified 5 disciplines of Complementary medicines of which Chinese Traditional Medicines is but one.

The Medicines Control Council (MCC) regulates the use of any active ingredient to be used in a medicine by means of the registration process of the medicines. During the registration process, the MCC will consider the quality, safety and efficacy of the active ingredient/herb to be included in the medicine.

The MCC will allocate a Schedule status to the active substance contained in the herb. The scheduling status of the substance will determine the import requirements that the Chinese medicine practitioner needs to comply with. In the event that the substance is listed as a specified Schedule 5, Schedule 6 or Schedule 7 substance, the importing practitioner requires an import permit from the Director-General: Health (Section 22A (11) of the Act). Substances listed as S0, S1, S2, S3 or S4 may be imported by a practitioner without any restriction.

(2) Labelling requirements: in terms of the MCC requirements relating to Good Manufacturing Practices (GMPs) for the manufacture of a medicine, the guidelines specify the requirements to be included on the label of any raw material. The following information is the minimum information required:

  • Name of the substance
  • Chemical name of the substance
  • Batch number
  • Expiry date
  • Name of the manufacturer of the substance / herb
  • Indication of the hazardous nature of the substance
  • Quantity
  • Warning: requirement to protect against moisture or light
  • Storage conditions

(3) Prohibition on the importation of a herbal substance relates to the scheduling status of the substance. See response in (1) above.

END.

10 January 2017 - NW2736

Profile picture: Volmink, Mr HC

Volmink, Mr HC to ask the Minister of Health

(1)(a) How many properties currently occupied by the National Health Laboratory Service (NHLS) in KwaZulu-Natal belong to the specified province’s department of health; (2) (a) what amount does the provincial department of health owe the NHLS and (b) what steps have been taken by his department to date to resolve the specified debt?

Reply:

1.(a) There are 57 properties occupied by NHLS in KZN that belong to the province’s department of health.

2.(a) According to the findings of the Accountant General, KwaZulu Natal owes a historical amount of R1.8 billion;

(b) The Accountant General's office is engaging both KwaZulu Natal and the NHLS on how to resolve this issue.

END.

10 January 2017 - NW2702

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Mokgosi, Ms N to ask the Minister in the Presidency

Did her department advertise vacancies in the Commission for Gender Equality (a) in each of the past five financial years and (b) since 1 April 2016; if not, in each case, why not; if so, (i) according to what mandate was each advertisement process handled by her department, (ii) in which publications were the vacancies advertised, (iii) for what period were the vacancies advertised and (iv) what did the advertisements cost?

Reply:

(a) Yes

(b) Yes

(i) Section 3(3) of the Commission for Gender Equality Act, 1996 (Act No. 39 of 1996)

(ii) City Press, Sunday Times and Government Gazette

(iii) 30 days

(iv) R64,299.53 in 2016/17.

 

________________________

Approved by the Minister on

Date………………………..

10 January 2017 - NW2671

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Mokgalapa, Mr S to ask the Minister of International Relations and Cooperation

Whether she has taken any steps against a certain official of her department (name and details furnished) after being reported to the Hawks for allegedly committing financial fraud; if not, (a) why not and (b) when will she take steps against the specified person; if so, what are the full relevant details in this regard?

Reply:

Quote

(a) No, I have learned that SCOPA has referred the said case to the Hawks. The matter is still investigated by my Department and will release a report upon its conclusion.

(b) See (a) above.

Unquote

10 January 2017 - NW2672

Profile picture: Mokgalapa, Mr S

Mokgalapa, Mr S to ask the Minister of International Relations and Cooperation

With reference to her reply to oral question 263 on 16 November 2016, what (a) are the names of all the specified employees, (b) crimes were the employees found guilty of, (c) measures will be implemented to ensure that persons found guilty of committing any crime will not be appointed as diplomats in the future and (d) steps will her department take againt the specified persons?

Reply:

(a) Name

(b) Offence

M Mjikeliso

Forbidden Person in terms of Aliens Act as well as Culpable Homicide

P Mukeni

Reckless or Negligent Driving

PS Sizani

Public Violence as well as Failure to comply with provisions of the Value Added Tax Act

MMN Ngoma

Prohibition of certain forms of Intimidation

N Mkoroana-Cita

All Motor Vehicles shall be registered and licenced unless contrary prescribed

BP Motloung

Reckless or Negligent Driving

S Ngombane

Riotous Assemblies Act – Person attends gathering after it was prohibited

SM Radebe

Occupy the driver’s seat of a motor vehicle while under the influence of intoxicating liquor

(c) When an official has committed a crime a full vetting investigation is conducted in order to

determine if his/her security clearance must be withdrawn and if it is withdrawn the official will not be able to be posted again as a security clearance is a requirement for a posting.

(d) See (c) above.

 

10 January 2017 - NW2729

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Cardo, Dr MJ to ask the Minister of Economic Development

Whether the Presidential Infrastructure Coordinating Commission has unlocked loan funding from the BRICS New Development Bank; if so, (a) for which infrastructure projects and (b) to what Rand value?

Reply:

The PICC worked with other public entities to enable consideration of South African projects by the National Development Bank.

In 2016, the Bank approved a facility of USD 180 million to Eskom for the construction of transmission lines to connect renewable energy projects and strengthen other strategic transmission lines in Gauteng.

Prepared by: Lynette Milne

 

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

 

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:………………………

10 January 2017 - NW2731

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

With reference to his statement made during the debate on Vote No 25 – Economic Development, Appropriation Bill in Parliament on 21 April 2016, (a) what are the full relevant details of the (i) gaps, (ii) weaknesses and (iii) possible solutions identified in relation to the Competition Act, Act 89 of 1998, as amended and (b) by what date will his department release proposals in this regard for wider public consultation?

Reply:

It is my intention to release proposals regarding changes to the Competition Act during 2017, following a further round of engagements with practitioners during the latter part of 2016. As the various matters that may form the subject of the proposals are currently being reviewed, details of the proposed changes are not yet available for release. The review covers areas such as the efficacy of the administration of the Competition Act, procedural aspects in the investigation and prosecution of offences, matters relating to abuse of dominance, more effective investigations against cartels and the current public interest provisions of the Act. Not all of these areas will necessarily result in a review of the Act.

 

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

 

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:………………………

10 January 2017 - NW2730

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

(1) Whether the Industrial Development Corporation had legal consent from all shareholders to sign off resolutions authorising the share buy-back and reissue scheme affecting a certain company (name furnished) on or around 30 April 2014; if not, why not; if so, what are the relevant details (2) whether he has found that the authorisation of the specified scheme took place in accordance with the Companies Act, Act 71 of 2008; if not, why not; if so, what are the relevant details; (3) why was the valuation of the specified company’s shares as valued by a certain company (name furnished) at the request of business rescue practitioners in July 2013 not used to execute the specified scheme in line with section 48 of the specified Act?;

Reply:

Mr Geoffrey Qhena, the CEO of the Industrial Development Corporation (IDC), has advised that the IDC acted within the law and exercised rights it explicitly had, in respect of decisions relating to the Business Rescue Plan for a company, ODM.

The statement by the IDC CEO on the parliamentary question, follows:

1.“We assume that reference to “the scheme” is referring to the Business Rescue Plan (the Plan) adopted on the 30th of April 2013:

  • IDC provided funding to the BEE SPVs namely FNMIH, Red Gold and First Aone to enable them to invest in ODM. IDC funding was secured by, inter alia, cession and pledge of the SPV’s shares and the shares in ODM;
  • When ODM was placed in business rescue this amounted to a breach of the IDC funding agreements and entitled the IDC to act to secure its position;
  • Accordingly IDC exercised its rights in terms of a cession and pledge of shares thus had the right to vote its shares and those of the SPVs in favour of the plan.

2. It is our view that the authorisation for ODM to be placed in business rescue was done in accordance with the provisions of the Companies Act in that:

  • The directors of the company duly placed the company in business rescue in terms of the Companies Act;
  • The Plan was published in terms of the Act on 17 April 2013;
  • The Plan was adopted by creditors and shareholders of ODM on 30 April 2013 at a meeting convened in terms of the Act.
  • 3.We are not aware that the Business Rescue Practitioners had ODM and FNMIH valued in July 2013 or at any other time. If there was indeed any such valuation it was not brought to the attention of the IDC:
  • FNMIH shareholders (and not the Business Rescue Practitioner) had a valuation conducted into the value of its shares and those of ODM;
  • As stated above IDC exercised its rights against the BEE SPVs (including FNMIH) in terms of the cession and pledge agreements signed by the SPVs in favour of IDC;
  • In terms of the cession and pledge the shares were to be independently valued in order to determine the value that IDC will recover via the shares and what would still be due by the SPV’s;
  • The value of the shares of ODM and FMNIH was independently determined to be zero as at the date of the company going into business rescue.”

I also draw attention to the reply of the IDC on the turnaround strategy to ensure that the IDC recovers as much of the value of its funding as is possible, as set out in the reply to Parliamentary Question 2660 submitted on 14 December 2016.

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

 

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:……………………..

10 January 2017 - NW2561

Profile picture: Alberts, Adv A

Alberts, Adv A to ask the Minister of Public Enterprises

(1)     How many members does the (a) Transport Pension fund and (b) Transnet Second Defined Benefit Fund have currently; (2) How many members of the specified pension funds died in (a) 2014, (b) 2015 and (c) 2016; (3) What were the reported causes of death of each member of the pension funds in each specified year; (4) (a) How many members of each fund are currently (i) the main member and\or (ii) a dependent and (b) how many of the dependents are (i) spouses and (ii) children; (5) what was the growth (a) in the value and (b) in the surplus of each fund in the financial years (i) 2013-14, (ii) 2014-15 and (iii) 2015-16 NW2972E

Reply:

1. The Transport Pension Fund (“TPF”) has 338 active contributing members and 5 628 pensioners, and the Transnet Second Defined Benefit Fund (“TSDBF”) has 54 026 pensioners as at 31 October 2016.

(2) The number of members of the specified pension funds who died are recorded below:

Entity

Referencing

Financial Year

Number of Deceased Members

Transport Pension Fund

a

2013/14

181

 

b

2014/15

184

 

c

2015/16

212

Transnet Second Defined Benefit Fund

a

2013/14

4255

 

b

2014/15

4114

 

c

2015/16

4142

(3) The causes of death of each member are unknown.

(4) As at 31 October 2016, for the Transport Pension Fund, 3 113 pension members are main members, with 2 290 spouses and 221 children. For the Transnet Second Defined Benefit Fund 17 681 pension members are main members, with 36 180 spouses and 165 children.

(5) The growth of the specified pension funds is detailed below:

 

Entity

Financial Year

Market Value

Surplus

Transport Pension Fund

2013/14

R8 373 million

R2 903 million

 

2014/15

R9 053 million

R3 644 million

 

2015/16

R9 366 million

R4 325 million

Transnet Second Defined Benefit Fund

2013/14

R17 218 million

R2 983 million

 

2014/15

R16 757 million

R3 145 million

 

2015/16

R15 630 million

R3 807 million

10 January 2017 - NW2645

Profile picture: Kohler-Barnard, Ms D

Kohler-Barnard, Ms D to ask the Minister of Public Works

Yes, the Department of Public Works has obtained the required authorisation before commencement with the current project. The Built Environment and Landscape Committee of Heritage Western Cape, a public entity whose mandate is to identify, protect and conserve the heritage resources of the Western Cape Province, after extensive and comprehensive consultations with both the project consultants and the Department of Public Works Heritage Advisory Services Unit, as well as scrutiny of written reviews and proposals submitted by an independent team of specialist heritage consultants, issued authorisation to systematically undertake various repairs, renovations and restorations at and on the Tuynhuys and Good Hope Buildings.

Reply:

The Minister of Public Works

Yes, the Department of Public Works has obtained the required authorisation before commencement with the current project.

The Built Environment and Landscape Committee of Heritage Western Cape, a public entity whose mandate is to identify, protect and conserve the heritage resources of the Western Cape Province, after extensive and comprehensive consultations with both the project consultants and the Department of Public Works Heritage Advisory Services Unit, as well as scrutiny of written reviews and proposals submitted by an independent team of specialist heritage consultants, issued authorisation to systematically undertake various repairs, renovations and restorations at and on the Tuynhuys and Good Hope Buildings.

The South African Heritage Resources Agency, in October 2014, endorsed the previous Heritage Western Cape’s Records of Decision and gave the necessary approval to continue with the completion of the outstanding repairs, renovations and restorations.

10 January 2017 - NW2646

Profile picture: Kohler-Barnard, Ms D

Kohler-Barnard, Ms D to ask the Minister of Public Works

What is the current status of the legal action initiated by his department against a certain bank (name furnished) over the ceding of a certain person’s (name furnished) monthly payments from his department to the specified bank in case the specified person defaulted on the repayment of a R380 million bond?

Reply:

The Minister of Public Works

The stated legal action undertaken by the Department of Public Works, where the bank in question intervened as a Respondent has now been settled between the parties. The bank in question has agreed to withdraw its opposition to an order of the court dictating that the lease agreement in question be declared void ab initio.

10 January 2017 - NW2676

Profile picture: Kopane, Ms SP

Kopane, Ms SP to ask the Minister of Public Works

Why did his department not (a)(i) develop, (ii) complete, (iii) gazette or (iv) submit to Parliament the draft Prestige Norms and Standards for category 111 clients and (b) sign the Service Level Agreement with Parliament to develop and complete the specified norms and standards?

Reply:

The Minister of Public Works

a) (i) The Norms and Standards for Category 111 clients are being developed.

(ii) The Department has been in the process of consulting various stakeholders.

(iii) There are no plans to gazette.

(iv) Parliament, as a Prestige Client, will be given an opportunity to see the draft Norms and Standards.

b) Once the process outlined in (a) above has been completed the Service Level Agreement with Parliament will be developed.

10 January 2017 - NW2677

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Kopane, Ms SP to ask the Minister of Public Works

Whether he received the (a) Developed Draft Contractors Development Implementation report, (b) final draft of his department’s Property Management Empowerment Policy, (c) draft Bill to amend the State Land Disposal Act, Act 48 of 1961 and (d) Revised Guidelines on User and the Custodian Asset Management Plans for his consideration; if not, in each case, (i) why not and (ii) by what date will the specified documents be submitted to him; if so, what are the relevant details in each case?

Reply:

The Minister of Public Works

(a) Yes,

(b) No.

(i) The draft Public Works Property Management Empowerment Policy was developed and submitted to the Property Sector Charter Council to solicit inputs from the Property Industry.

(ii) The Property Sector Charter Council is in the process of coordinating the information flow from the Property Industry and once the process is concluded, the final draft Public Works Property Empowerment Policy will be submitted to the Executive Authority for approval. It is envisaged that this process will be concluded in the 2017/18 financial year.

(c) No.

(i) The Department has initiated the amendment of the State Land Disposal Act of 1961 through a policy discussion document issued in 2015. Since the development of this Act is the joint responsibility of the NDPW and the Department of Rural Development and Land Reform, discussions were held between the two departments. The review of the Act will form part of the development of a Public Works White Paper, which will encompass the Public Works functional area of concurrent national and provincial legislative competence.

(ii) The White Paper process will commence in 2017 and it is envisaged that the amendment of certain existing legislation and the drafting of new legislation as an outflow of the Public Works White Paper will be undertaken in 2019.

(d) No.

(i) A task team comprising of representatives from the national and provincial Public Works departments was formed to review and refine the guidelines. The refinement of the guidelines is still underway.

(ii) Upon endorsement by the Public Works Technical MinMec and MinMec structure, the draft guidelines shall be submitted to Executive Authority for approval. It is expected that this process will be finalised in the 2017/18 financial year.

09 January 2017 - NW2738

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Steyn, Ms A to ask the Minister of Police

(1)Whether the SA Police Service (SAPS) keeps farm murder statistics as a separate category in its records; if not, why not; if so, how many farm murders were recorded in the (a) 2015 and (b) 2016 calendar years to date; (2) whether the SAPS’ Rural Safety Plan has been implemented in full; if not, (a) why not and (b) by what date will the specified plan be implemented in full; if so, what are the relevant details?

Reply:

(1) The South African Police Service (SAPS) keeps figures of incidents of violence on farms and smallholdings per financial year, based on a manual system, for operational purposes.

(1)(a) A total of 60 murders on farms and smallholdings were reported during the 2014/2015 financial year.

(1)(b) A total of 49 murders on farms and smallholdings were reported during the 2015/2016 financial year.

(2) The Rural Safety Strategy has not been implemented in full at all identified rural and rural/urban police stations.

(2)(a) The annual target for the implementation of the Rural Safety Strategy in the Annual Performance Plan for 2016/2017 of the SAPS is that 759 of the 879 identified rural and rural/urban mix police stations must implement the Rural Safety Strategy by 31 March 2017. At the end of the second quarter of the 2016/2017 financial year a total of 783 rural and rural/urban police stations had already implemented the Strategy. This means that the target was exceeded by 24 police stations.

(2)(b) The implementation of the Rural Safety Strategy is part of the Annual Performance Plan of the SAPS and the target for 2017/2018 has not been finalised.

09 January 2017 - NW2662

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Cardo, Dr MJ to ask the Minister of Police

How many (a) persons did the SA Police Service arrest for the illegal poaching of abalone in the Overstrand Local Municipality in the Western Cape (i) in the (aa) 2014-15 and (bb) 2015-16 financial years and (ii) since 1 April 2016 and (b) of the specified persons were successfully prosecuted?

Reply:

(a) Arrests

(b) Successful prosecutions

(found guilty)

(i)(aa) 2014-15

(i)(bb) 2015-16

(iii) 1 April 2016 to 31 Oct 2016

(i)(aa) 2014-15

(i)(bb) 2015-16

(iii) 1 April 2016 to 31 Oct 2016

22

28

43

5

17

5

09 January 2017 - NW2693

Profile picture: Redelinghuys, Mr MH

Redelinghuys, Mr MH to ask the Minister of Police

(1)What (a) is the current status of the Directorate for Priority Crime Investigation’s investigation into case IR 2016/03/71 and (b) are the charges contained in the docket; (2) whether any suspects have been arrested to date; if not, why not, in each case; if so, what are the relevant details in each case; (3) whether any (a) suspects or (b) witnesses have been interviewed; if not, why not, in each case; if so, (i) when and (ii) what are the further relevant details; (4) when are the specified investigations anticipated to be finalised?

Reply:

(1)(a) The matter is still under investigation.

(1)(b) An enquiry was opened vide Johannesburg Commercial Crime Investigation Unit (CCIU) Enquiry 02/06/2016. As soon as sufficient evidence has been gathered, a criminal case docket will be registered.

(2) No suspects have been arrested yet and the investigation is still proceeding.

(3)(a) No, if any suspects are interviewed prematurely, it will hamper the investigation and possible crucial evidence may be tampered with or destroyed.

(3)(b) One witness has been interviewed.

(4) It is anticipated that the investigation will be concluded by the end of January 2017.

06 January 2017 - NW2576

Profile picture: Mulaudzi, Mr TE

Mulaudzi, Mr TE to ask the Minister of Rural Development and Land Reform

(a) How many small and medium farms are not being utilised in the Vhembe region and (b) for what period has any of these farms not been utilised?

Reply:

(a) There are no such farms, except for a portion within a leased farm whereby the farmer removed his livestock, due to drought; and, had not yet returned them when this response was drafted.

(b) Falls away.

05 January 2017 - NW2689

Profile picture: Ollis, Mr IM

Ollis, Mr IM to ask the Minister of Labour

(1) Whether the acting Registrar of Labour Relations: Trade Unions accepted the financial statements of the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (CEPPWAWU) for each of the (a) 2010-11, (b) 2011-12, (c) 2012-13 and (d) 2013-14 financial years; if not, (i) for which of the specified financial years were the specified financial statements not accepted and (ii) why not, in each case;

Reply:

(1) The following financial statements of CEPPWAWU were submitted and accepted by the Registrar of Labour Relations:

(a) 2010 - 2011

(b) 2011 - 2012

(c) 2012 - 2013

(d) 2013 - 2014 (under construction, therefore not yet submitted)

(i) not applicable

(ii) not applicable

(2) whether the specified acting registrar accepted the minutes of the meeting of the National Executive Committee of the CEPPWAWU held on 14 January 2016 where the financial statements were allegedly tabled; if so, (a) why did the acting registrar accept the minutes of the specified meeting despite the Labour Court judgment handed down on 15 April 2016 that the financial statements were not compliant with the CEPPWAWU’s rules and labour legislation and (b) what are the further relevant details;

MINISTER'S RESPONSE

(2) The Registrar of Labour Relations accepted the CEPPAWAWU NEC minutes of the meeting held on 14 January 2016.

(a) There was no reason compelling the Registrar of Labour not to accept or reject the minutes referred to. The minutes referred to were brought to the Registrar's attention during the course of February 2016. Therefore the Labour Court judgement of 15 April 2016 had no bearing on decision of the Registrar of Labour Relations whether to accept or reject the minutes of 14 January 2016.

(3) whether each of the financial statements were fully audited in terms of sections 25(5) and 98(2) of the Labour Relations Act, Act 66 of 1995, as amended; if not, in each case, why not; if so, did CEPPWAWU comply with its own constitution in this regard;

MINISTER'S RESPONSE

(3) In as far as it relates to the question and information submitted by CEPPAWAWU to the Registrar of Labour Relations, the financial statements submitted were fully audited in terms of section 25(5) and 98(2) of the Labour Relations Act 66 of 1995 and CEPPAWAWU complied with its own constitution.

(4) whether she has taken any steps against any member of the leadership of CEPPWAWU for allegedly failing to comply with Labour Court orders dated (a) 9 October 2015 and (b) 15 April 2016 in terms of failing to table full, legally audited financial statements and minutes showing the adoption of such financial statements; if not, why not; if so, what are the relevant details? NW3180E

MINISTER'S RESPONSE

Assuming that "she" refers to me, it important to note that in terms of the provisions of the Labour Relations Act 66 of 1995, the Minister does not have any legal powers to reprimand any registered Trade Union or Employer Organization other than engage the Trade Union or Employer Organization as a stakeholder.

However if the "she" refers to the Registrar of Labour Relations, it is important to note that the Registrar of Labour Relations is a "he".

(a) CEPPAWAWU complied with the Court Order handed on 09 October 2015. Therefore there was no compelling reason for me to engage the leadership of CEPPAWAWU or the Registrar of Labour Relations to take any steps against the leadership of CEPPAWAWU.

(b) In terms of the information submitted to the Registrar of Labour Relations during the course of February 2016, CEPPAWAWU tabled full, legal audited financial statements and minutes showing the adoption of such financial statements. During the course of February 2016 there was no compelling reason for me to engage the leadership of CEPPAWAWU or the Registrar of Labour Relations to take any steps against the leadership of CEPPAWAWU. However I am not suggesting that now there is such a compelling reason to engage or take steps against the leadership of CEPPAWAWU; because such a decision legally falls within the discretion of the Registrar of Labour Relations.

I am advised though that the Registrar of Labour Relations is awaiting the release of the transcript of the alleged judgement of 15 April 2016. Thereafter he will study the content of the judgement and take a decision on how to deal with the matter; because the alleged judgement deals with a number of issues which may or not directly/indirectly assist him in executing his duties in as far as it relates to the question raised.

05 January 2017 - NW2718

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Alberts, Adv A to ask the Minister of Justice and Correctional Services

Whether the Government, seen against the background of its constitutional obligations in respect of human rights, intends signing and ratifying the Optional Protocol to the International Convention on Economic, Social and Cultural Rights; if not, why not; if so, by what date will this be done; (2) whether the Government, seen against the background of its constitutional obligations regarding human rights, intends to institute local legislation supportive of the treaty itself as well as the optional protocol; if not, why not; if so, by what date will this take place?

Reply:

South Africa has ratified the ICESCR and in terms of section 231(4) of the Constitution is required to enact legislation to implement the International Convention on Economic, Social and Cultural Rights (ICESCR). Chapter 2 of South Africa’s Constitution is based on the ICESCR which promotes and protects socio-economic and cultural rights. Socio-economic and cultural rights are also promoted in myriad pieces of legislation which give effect to the obligation contained in the Constitution (towards socio-economic and cultural rights). There is therefore no additional legislation required to implement the tenets of the ICESCR.

South Africa is yet to ratify the Optional Protocol to the ICESCR, so no obligation to enact legislation to domesticate the option protocol exists. Once the Optional Protocol is ratified section 231 (4) of the Constitution requires that the treaty be domesticated through the enactment of national legislation.

05 January 2017 - NW2719

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Alberts, Adv A to ask the Minister of Justice and Correctional Services

Whether, in light of the fact that South Africa has signed and ratified the International Convention/Treaty on Civic and Political Rights, including the optional protocol which allows for individual complaints, the Government intends creating legislation for making the rights contained in the Treaty applicable locally; if not, why not, given the Government’s international and constitutional obligations in this regard; if so, (a) by what date and (b) what are the further relevant particulars regarding the process and proposed content; (2) how many of all the international human rights instruments have been signed and ratified by South Africa; (3) in cases where there was no signing or ratification of a convention/treaty, what was the reason for that, seen against the background of the Government’s constitutional obligations regarding human rights; (4) whether there are any plans for signing or ratifying the convention/treaty; (5) (a) what are the compulsory dates for handing in the reports, (b) on what dates has the Government actually submitted reports since the signing and ratification of each international human rights instrument, (c) what are the reasons for any default regarding the submission or late submission of the reports in each separate case and (d) whether each of the reports is available?

Reply:

1. (a) South Africa has ratified the International Covenant on Civil and Political rights

(ICCPR) which required domestication through national legislation as per section 231(4) of the Constitution. There is no additional legislation required to implement the tenets of the ICCPR because South Africa has not only enshrined civil and political rights within the Bill of Rights in the Constitution of the Republic of South Africa (Act 108 of 1996), but South Africa also has existing legislative and policy frameworks in place to give effect to civil and political rights.

(b) South Africa has ratified the OP-ICCPR and is yet to domesticate same through

The enactment of national legislation. Same is receiving attention.

2. A total of nine (9) Human Rights conventions have been signed and ratified by South Africa.

Overall, South Africa is party to (has ratified) thirty-two (32) international treaties/ conventions. These relate to international human rights; humanitarian law, labour, environmental law, maritime law, labour law, trade, education, conservation and anti-corruption.

3. The decision to become party to an international instrument is taken with due regard of government’s priorities (at a given time). As these are constantly changing and being revised in light of the most pressing needs, so also does the ratification of international instruments need to change to reflect the change in societal needs and development.

4. Same is receiving attention, and is under due consideration by Government.

5. The list of all treaty obligations and reporting status is attached.

With regard to the Department of Justice and Constitutional Development’s mandate on international obligations, the following should be noted:

   (a) Each treaty has different periodic reporting requirements- some are quadrennial, while other are biennial and the Human Rights Bodies which consider the reports may request further information or may make recommendations on when the country should deposit its next report.

   (b) South Africa deposited the 1st-3rd combined periodic reports on the ICERD in 2006, and the 4th-8th combined periodic reports in 2012; the 1st ICCPR report was submitted in 2014; the 1st periodic report on the CAT was submitted in 2005 and the 2nd and 3rd reports were submitted in 2015. The 1st periodic report on the ACHPR was submitted in 1999, the 3rd-6th combined periodic reports were submitted in 2005, the 1st and 2nd UPR reports were submitted in 2008 and 2012 respectively and the 3rd UPR report is due in May 2017 and the 1st periodic report on the ICESCR is due in May 2018.

   (c) Challenges with capacity and lengthy consultative processes.

   (d) Yes, each of the reports is available.

05 January 2017 - NW2690

Profile picture: Ollis, Mr IM

Ollis, Mr IM to ask the Minister of Labour

(1)Whether the acting Registrar of Labour Relations: Trade Unions took any remedial action by approaching the court to enforce the Labour Court order handed down on 9 October 2015 against the leadership of the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union for allegedly failing to table full, legally audited financial statements and minutes showing the adoption of such financial statements; if not, why not; if so, what are the relevant details;

Reply:

(1) No; because CEPPAWAWU complied with the Court Order handed on 09 October 2015. Therefore there was no compelling reason for the Registrar of Labour Relations to do so.

(2) whether she has taken any steps against the specified acting registrar for failing to take any remedial action in this regard; if not, why not; if so, what are the relevant details? NW3181E

MINISTER'S RESPONSE

(2) No; because there was no compelling reason for Registrar of Labour Relations to take any remedial action by approaching the court to enforce the Labour Court order handed down on 9 October 2015 against the leadership of the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union for allegedly failing to table full, legally audited financial statements and minutes showing the adoption of such financial statements. Therefore there is no legal reason for me to take any steps against the Registrar of Labour Relations.

04 January 2017 - NW2686

Profile picture: Davis, Mr GR

Davis, Mr GR to ask the Minister of Basic Education

Why has the contract regarding the Kha Ri Gude Literacy Campaign been extended until September 2017 despite concerns about irregular expenditure as presented by her department to the Portfolio Committee on Basic Education on 23 November 2016 (details furnished)?

Reply:

The current contract with SAB&T Ubuntu was extended to September 2017 due to the fact that the campaign is coming to an end at the above mentioned date. The matter went through all departmental procurement processes and the Department was advised by its Bid Adjudication Committee that it would not be cost effective for the Department to appoint a new service provider for such a short period.

The irregular expenditure that occurred was not created by the current service provider but happened due to a disagreement between the Department and the Auditor-General on a technical point in the procurement process. The matter was then submitted to a technical team at the Auditor-General which then ruled against the Department. This matter was however addressed in a previous response to the Honourable Member.

28 December 2016 - NW2351

Profile picture: Marais, Mr S

Marais, Mr S to ask the Minister of Defence and Military Veterans

(1)With reference to the trip she undertook to the Democratic Republic of the Congo (DRC), where she allegedly assisted a Burundian national, (name and details furnished), to travel with her back to South Africa in 2014, what are the (a) names of each (i) diplomatic, (ii) military and (iii) civilian passenger on board the flight to and from the DRC, including the Ethiopia leg, and (b) costs of the specified flights; (2) whether she and each specified passenger travelling with her were subjected to all immigration processes by the customs officers at the Waterkloof Airforce Base; if not, why not; if so, (3) whether the customs officers made any adverse immigration findings against any of the specified passengers travelling with her; if so, what are the relevant details in each case; (4) whether any (a) communication took place and/or (b) arrangements were made to allow the immigration clearance of the specified person to South Africa upon her return from the specified trip; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

This matter is the subject of a police investigation, as per this member’s own press release, and as such responses are to be provided as part of that investigation.

25 December 2016 - NW2699

Profile picture: Van Der Walt, Ms D

Van Der Walt, Ms D to ask the Minister of Basic Education

(1)With reference to her reply to question 998 on 21 June 2016, (a) how many of the specified tablets that were purchased for the paperless classroom project in Gauteng have been (i) lost and (ii) stolen since 21 June 2016, (b) what is the total value of the tablets that were (i) lost and (ii) stolen, (c) what action was taken in this regard and (d) what steps have been put in place to prevent similar incidents from occurring in the future in each case; (2) whether the tablets that were (a) lost or (b) stolen will be replaced; if not, what is the position in this regard; if so, (i) what will it cost to replace the tablets and (ii) what are the further relevant details?

Reply:

(1) and (2) On 02 December 2016 the Department of Basic Education (DBE) requested the Gauteng Department of Education (GDE) to provide a response. The DBE will provide the necessary response once the information is made available by the GDE.

 

24 December 2016 - NW1724

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

(1) Whether a forensic investigation has been launched into the SA Revenue Service’s Modernisation and Technology Programme; if not, why not; if so, (a) who authorised the investigation, (b) who is conducting the investigation (c) what is the purpose of the investigation, (d)(i) when did the investigation begin and (ii) when will the investigation be completed and (e) what (i) costs have been incurred and (ii) is the breakdown of such costs; (2) whether he was informed of the investigation; if not, why not; if so, when was he informed?

Reply:

  1. and (2):

The Minister of Finance has not been informed by Mr Moyane regarding any forensic investigation that has been launched in terms of the South African Revenue Services Modernisation and Technology Programme despite the media coverage on the matter.

I have requested my office to submit this question to SARS to establish the facts. Once the information is obtained, I will respond to this question in more detail.

24 December 2016 - NW2223

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

(1)Whether, with reference to his replies to questions 1894 on 12 October 2016 and 1975 on 12 October 2016, the SA Revenue Service (SARS) had any (a) meetings and/or (b) communication with (i) him, (ii) the Financial Intelligence Centre (FIC) and/or (iii) any other (aa) organ of state and/or (bb) entity; if not, in each case, why not; if so, in each case, what was the (aaa) date and (bbb) purpose of each meeting and/or communication; (2) whether SARS experienced a lack of cooperation from the FIC while dealing with the specified matter; if so, what are the relevant details?

Reply:

In a previous parliamentary question 2139 [NW2456E], I indicated that there is a lack of accountability and cooperation from the South African Revenue Services top management. I therefore cannot place great reliance on the information that I have received from SARS, particularly in terms of this matter; however, I am able to provide the following in response:

(1) (a) (i) Mr Moyane responded on the 27 October 2016 after a written request from me. Apart from this, SARS has not communicated with me further on the Makwakwa matter beyond what was reported in questions 1894 and 1975, both dated 12 October 2016.

As previously stated, Mr Moyane did not inform me about this matter prior to it appearing in the Sunday Times on 11 September 2016. A meeting was convened at my request on the 12 September 2016 regarding the Makwakwa matter, and thereafter correspondence was exchanged on the 14th and 16th of September 2016, to confirm and follow-up on the meeting. To date, apart from the letter dated 27 October 2016 from Mr Moyane, where he provided his Terms of Reference for the law firm Hogan Lovells (South Africa) Inc, to investigate and conduct disciplinary proceedings related to Mr Makwakwa and Ms Elskie, Mr Moyane has not provided any substantive report on this matter. However, Mr Moyane indicated in his letter that the law firm would conclude the first part of the investigation by 20 December 2016. By 22 December, I have not yet received any such report.

The Terms of Reference do not include the role of Mr Moyane in the Makwakwa matter. Mr Moyane stated in his letter dated 27 October 2016 that he does not accept responsibility for failing to timeously report the Makwakwa matter to the Minister of Finance (as the executive authority of SARS) prior to the 12 September 2016 meeting, as he expected the Financial Intelligence Centre (FIC) to do so. According to Mr Moyane “…the FIC is under a clear legislative mandate to report to…” the Minister of Finance “….. an investigation into Makwakwa”s affairs, taking into consideration the public importance of the matter and Makwakwa’s position within the SARS”. Mr Moyane holds to this view, despite the fact that section 40 of the FIC Act prohibits the FIC from reporting such transactions or referrals, to the Minister of Finance or to any other person other than those permitted to receive such reports.

I will not say more on Mr Moyane’s failure to act in terms of the FIC Act and other anti-corruption legislation at this stage. This matter is also subject to legal action as reported in the media (e.g. charges by Corruption Watch).

  (i) I will not comment on any further communication between SARS and FIC but want to point out the following. I wrote to Mr Moyane on 23 September expressing my serious concern on a media statement issued by SARS stating that there was a lack of co-operation by the FIC on the Makwakwa matter (refer to SARS media release titled “SARS APPOINTS SENIOR EXECUTIVES TO ACT IN MAKWAKWA’S POSITION” dated 16 September 2016). I pointed out that as the executive authority for both the FIC and SARS, I would have expected that before launching a public attack on the FIC, that he would have first requested my intervention if indeed there were any problems of non-cooperation between SARS and FIC. I requested his explanation for the statement, including what impact such statement will have for their future working relationship, and the steps he intends to take to address such breakdown. On the 27th October 2016, more than a month later, Mr Moyane responded, denying “that there is a breakdown of the relationship between the SARS and the FIC” and states that he does not need any intervention from my office, and that his media statement is not a public attack on the FIC and “….does not constitute a drastic step”.

  (ii) Mr Moyane has indicated to my office that SARS had a meeting with representatives from the Directorate for Priority Crimes Investigations (DPCI) on 27 September 2016. This meeting was convened subsequent to an email that had been sent to SARS by DPCI on 15 September 2016 regarding the DPCI investigation into the Makwakwa and Elskie matter. On 30 September 2016, SARS received a written confirmation from DPCI of the meeting that had taken place on 27 September 2016.

I have not had had any explanation from Mr Moyane why he did not contact the DPCI or any other law enforcement agency immediately after Mr Moyane first became aware of the Makwakwa matter after receiving the FIC letter 17 May 2016. Instead, Mr Moyane did not do so for four months and only did so after he was contacted by the DPCI on 12 or 15 September after the media exposure. (I refer the Honourable Member to the SARS response on this matter in PQ 1976 [NW2287E])

2. It is my view that the key issue currently is not any problem related to a lack of co-operation between SARS and the FIC but how best to protect the reputation and integrity of SARS as a critical fiscal institution. The focus must remain on the investigation against Mr Makwakwa, by both SARS and the law enforcement authorities. The issue of co-operation between SARS and FIC is important but must be understood in terms of the role and function of the FIC in terms of the law. As Mr Moyane himself confirms in his letter dated 27th October 2016, there is no breakdown in relationship between SARS and the FIC. This is also the view of the Director of the FIC.

To protect the reputation and integrity of SARS, we need to know why Mr Moyane took more than four months to act effectively after he was first alerted to the Makwakwa matter by the FIC through a letter dated 17 May 2016 and to only act after this matter was exposed in the media. Further, why Mr Moyane takes no responsibility for failing to report timeously to his responsible Minister. Mr Moyane also needs to explain why he continued to allow Mr Makwakwa to remain in his position as part of his top management team, dealing with individual and corporate taxpayers and allowing him to represent SARS at hearings of the Standing Committee of Finance on 23 August 2016 and the Davis Tax Committee on 8 September 2016. These and other matters like that involving Mr Vlok Symington raise serious concerns about the stewardship of a vital fiscal institution. Further consideration will be given to substantially increase the accountability of the top SARS management for their actions and decisions.

21 December 2016 - NW2744

Profile picture: Mulder, Dr CP

Mulder, Dr CP to ask the Minister of Public Enterprises

What amount is required to pay a bonus of 10% to all pensioners of the Transport Pension Fund and the Transnet Second Defined Benefit Fund where the rules make provision for this; 2. Whether the present surplusses of the pension funds may be used to increase the base of all pensions; if so, with what percentage will the pensions be increased; 3. Whether she will consider implementing such an increase; if not, why not 4. Whether the pending class action court case plays any part in her decision; if not, what is the position in this regard; if so, what are the relevant details? NW3232E

Reply:

1. Based on the actuarial valuation results as at 31 March 2016, the amount required to pay a 10% bonus to all pensioners of the Transport Pension Fund (TPF), i.e. Transnet Sub-Fund, SAA Sub-Fund and PRASA Sub-Fund is R37.7m and for the Transnet Second Defined Benefit Fund (TSDBF) the amount is R172.4m. The Rules of the respective Funds contain a provision that authorises for the payment of ad hoc bonuses. These amounts are paid from the actuarial surplus of each of the Funds, amounting to R4.325 billion for the Transport Pension Fund and R3.807 billion for the TSDBF

2. There is currently no provision in the respective Fund Rules to utilise the surplus to increase the base of the pension.

3. The Shareholder Minister is unable to consider an increase in the base of all pensions as this is not provided for in the pension fund rules.

4. The pending class action court case has no impact on the matter. The rules of the funds guide action related to the pension funds.

 

21 December 2016 - NW2717

Profile picture: Alberts, Adv A

Alberts, Adv A to ask the Minister of Public Enterprises

Which company is currently in charge of the investments that the (i) Transport Pension Fund and (ii) Transnet Second Defined Benefit Fund make; (b) What role does a certain person (name furnished) play in making investments in both funds; (c) What are the specified person’s official positions and involvement in (i) Transnet, (ii) the Transport Pension Fund and (iii) the Transnet Second Defined Benefit Fund; (d) Who appointed him; and (e) Why was he appointed in the specified positions?

Reply:

(a) There is no company in charge of investments of the Transport Pension Fund and Transnet Second Defined Benefit Fund. The Boards of Trustees of the respective Funds are in charge of their investment activities.

(b) No role is played by the said individuals as the Board of Trustees of the respective Funds are in charge of the investment activities.

(c) The specified person’s official positions and involvement in (i) Transnet is that of a Non-Executive Director and Chairperson of the Acquisitions and Disposals

(d) Committee. He is also Chairperson and Trustee of the Board of Trustees of the (ii) Transport Pension Fund and (iii) Transnet Second Defined Benefit Fund respectively.

(d) All non-Executive Directors are appointed to the Transnet Board of Directors by the Shareholder Minister.

(e) The specified person was appointed in the specified positions on the basis of his academic qualifications and technical expertise on the activities of the Board of Directors, and the respective Funds.

21 December 2016 - NW2694

Purdon, Mr RK to ask the Minister of Water and Sanitation

(1)With reference to the critical drought that is severely affecting major parts of the Republic, (a) which of the country’s major storage dams are currently under 35% capacity in each province and (b) what measures has her department put in place to urgently conserve the water in the specified dams; (2) whether each municipality affected by the dams is implementing stringent measures to conserve water; if not, (a) why not and (b) what steps will she take in this regard; if so, (i) did the specified municipalities receive direction from the Government and (ii) what are the further relevant details in this regard?

Reply:

(1)(a) Refer to Annexure A for the list of the country's major dams that are below 35%.

(1)(b) My Department develops annual operating rules which include drought restrictions rules. These are communicated to stakeholders at the System Operations Forums. In addition Joint Operations Committees are established to monitor progress on the implementation of water restrictions and advice provided on further interventions where necessary e.g installation of flow restrictors at household level or supply through water tankers, drilling of boreholes etc. Further details are given in the table and section 2 of the response below.

(2)(a) Yes. Most of the municipalities are implementing measures to conserve water and there is already a reduction in demand. The measures include:

  • Restrictors on the bulk meters and the reticulation meters, some municipalities are also restricting consumer meters;
  • Pressure Management;
  • Education and awareness;
  • Water rationing;
  • Monitoring Minimum Night Flows;
  • Active and passive leakage control, etc.

(2)(b) As mentioned in (a) above, most of the municipalities are already implementing Water Conservation and Water Demand Management measures, for those that are not yet implementing. It is mainly due to lack of human and financial capacity. The Department will continue engaging municipalities through the established structures and the municipalities must actively participate and report in this meetings and prioritize resources and budgets to implement Water Conservation and Water Demand Management.

---00O00---

Annexure A

Table1: Country’s Major Storage Dams below 35%

Provinces: Free State, KwaZulu-Natal, Mpumalanga, Limpopo, Eastern Cape, North West & Northern Cape

Reservoir

Name

Full Supply Capacity in 106 m3

%

Municipality supplied

Measures

Implementation

Free State

Bloemhof

1 240

20.4

Lekwa-Teemane Municipality Bloemhof, Kuruman,

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 12/08/16

(No 40203)

  • Restrictions for Domestic @15%andIrrigation @ 20% are being implemented
  • Early Warning systems established to monitor achievement of restrictions
  • Joint Operations Committee (JOC) formed to give direction to municipality on implementing the restrictions
  • Last SOF held on 1 December 2016

Kalkfontein

325

3.7

Kopanong Municipality

(Koffiefontein, Jacobsdal, Jagersfontein and Fauresmith)

Drought Operating Rule determined and communicated at the SOF

Restrictions gazetted on 19/02/16 (No 39718)

  • Restrictions for Domestic @ 40%&Irrigation @100% are being implemented
  • Early Warning systems established to monitor achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last Forum held on 29 November 2016

Allemanskraal

174

14.0

Masilonyana and Tswelopele Municipality (Brandfort, Bultfontein, Theunissen and Virginia)

Drought Operating Rule determined and communicated at the SOF

Restrictions gazetted on 12/08/16

(No 40203)

  • Restrictions for Domestic: 40%Irrigation 92% are being implemented
  • Early Warning systems established to monitor achievement of restrictions.
  • JOC formed to give direction to municipality on implementing the restrictions. -Last Forum held on 1 December 2016

Rustfontein

71

25.5

Mangaung Metropolitan

Drought Operating Rule determined and communicated at the SOF Part of Bloemfontein System.

Restrictions gazetted on 12/02/16

No 39679.

  • Restrictions for Domestic: 30%Irrigation: 75% are being implemented
  • Early Warning systems established to monitor achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions.
  • Last SOF held on 29 November 2016

Krugersdrift

71

26.0

Ikgomotseng and Soutpan

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 19/02/16: No 39718

  • Restrictions forDomestic: 20%Irrigation: 50% are being implemented
  • Early Warning systems established to monitor achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last SOF held on 29 November 2016

KwaZulu Natal

Goedertrouw

301

19.5

Umhlathuze, Umlalazi, Uthungulu

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 24/03/16, No 39860:

  • Restrictions for Domestic: 40%Irrigation: 80% Industrial: 15%are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last SOFs held on 12 July 2016

Albert Falls

288

27.3

Umgugundlovu, Ethekwini Metropolitan

Drought Operating Rule determined and communicated at the SOF. Part of the Umgeni system

Restrictions published on 24/03/16

(No 39860)

  • Part of the Umgeni Water Supply System which is currently at 47,6% and -Restrictions for Domestic: 15% Irrigation: 50%Industrial: 15%are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last SOF was held on 17 June 2016 as part of Mgeni SOF.

Mpumalanga

Kwena

158

23.9

Ehlanzeni

Drought Operating Rule determined and communicated at the SOF. Part of the Crocodile System.

Restriction notices issued by Inkomati/Usuthu Catchment Management Agency.

(Compliance not known yet)

  • Restrictions for Domestic, irrigation are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last Committee held on 2 November 2016 as part of the CROCOC

Driekoppies

250

20.5

Nkomazi

Drought Operating Rule determined and communicated at the Komati Joint Operations Forum. Part of the Komati Basin Water Authority (KOBWA)

Restriction notices were issued.

(Compliance not yet known)

  • Early Warning systems established to measure achievement of restrictions
  • JOC established to give direction to municipalities on implementing the restrictions
  • Last Forum held on 17 November 2016 as part of KOBWA

Limpopo

Middel-Letaba

171

16.3

Mopani Municipality

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 16/09/16

(No 1066)

  • Restrictions for Domestic 20%Irrigation 80% are being implemented
  • Early Warning systems established to measure achievement of restrictions.
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last Forum held on 29 April 2016 as part of the Shingwedzi CMF

Tzaneen

156

13.2

Mopani Municipality

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 16/09/16

(No 1066)

  • Restrictions for Domestic @ 20%& Irrigation @ 70% are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions.
  • Last Forum held on 25 October 2016

Nzhelele

51

8.6

Thulamela

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 16/09/16

(No. 1066)

  • Restrictions for Irrigation: 40% are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last Forum held on 21 April 2016

Flag Boshielo

185

17.7

Polokwane Metro

Part of the Polokwane System. Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 16/09/16,

( No 40284)

  • Restrictions for Domestic: 30%Mining: 55% are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC to be established to give direction to municipality on implementing the restrictions
  • Last Forum held on 25 May 2016

Rhenosterkop

204

16.3

Nkangala DM

Drought Operating Rule determined and communicated at the SOF. Restrictions gazetted on 16/09/16

(No. 1066)

  • Restrictions for Irrigation: 60%-70%(Depending on rainfall) are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last Forum held on 20th April 2016

Eastern Cape

Darlington

180

18.2

Nelson Mandela Metro

Drought Operating Rule determined and communicated at the SOF.

Receiving water from the Orange River System:

Restrictions published on 26/08/16 (No.40229)

The Dam is operated below 45% for Dam safety reasons

  • Restrictions of 15% on all transfers form the Orange River System are being implemented
  • Early Warning systems established to measure achievement of restrictions and communication is on-going to align information
  • Last Forum held on 20 September 2016

North West

Molatedi

200

25.2

Moses kotane

Drought Operating Rule determined and communicated at the SOF.

Restrictions gazetted on 14/10/16

(No. 40346)

  • Restrictions on Domestic @50%& Irrigation @75% are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • JOC formed to give direction to municipality on implementing the restrictions
  • Last Forum held on 16 August 2016 as part of the Marico CMF

Northern Cape

Reservoir

Name

Full Supply Capacity in 106 m3

%

Municipality supplied

Measures

Implementation

Spitskop

57

9.2

Mmamusa Municipality SchweizerReneke

Drought Operating Rule determined and communicated at the SOF.

30% restrictions on irrigation recommended. Achievement not yet visible

  • Restrictions on irrigation are being implemented
  • Early Warning systems established to measure achievement of restrictions
  • Last Forum held on 07 September 2016

21 December 2016 - NW2678

Profile picture: Alberts, Adv A

Alberts, Adv A to ask the Minister of Public Enterprises

(1) What was the state of the surplusses of the (a) Transport Pension Fund and and (b) Transnet Second Defined Benefit Pension Fund in (i)(aa) 2011, (bb) 2012, (cc) 2013, (dd) 2014, (ee) 2015 and (ii) at the latest specified date for which information is available; (2) (a) what have the surplusses been used for since 2011 and (b) what is their envisaged application for the future?

Reply:

  1. The table below details the surplus for the requested years, as well as the

utilisation:

ENTITY

REF

DATE

SURPLUS

UTILISATION

Transport Pension Fund

 

31 March 2010

R1605m

-

 

aa

31 March 2011

R1739m

-

 

bb

31 March 2012

R1548m

R120m as a Transnet 8.333% bonus

 

cc

31 March 2013

R1453m

R62m as a Transnet 8.333% bonus, and extra 2.47% pension increase for SAA and PRASA respectively

 

dd

31 March 2014

R2903m

R68m as two Transnet 8.333% bonuses, and extra 2.42% pension increase for SAA and PRASA respectively

 

ee

31 March 2015

R3644m

R73m as two Transnet 8.333% bonuses, and extra 1.02% pension increase for SAA and PRASA respectively

   

31 March 2016

R4325m

R72m as two Transnet 8.333% bonuses, an extra 2.42% pension increase, and 13th cheque bonus for SAA and PRASA respectively

   

31 March 2017

-

R70m*

Transnet Second Defined Benefit Fund

 

31 March 2010

R2835m

-

 

aa

31 March 2011

R2733m

R335m as two Transnet 8.5% and 8.333% bonuses

 

bb

31 March 2012

2346m

R520m as a Transnet 10% and two 8.333% bonuses respectively

 

cc

31 March 2013

R2167m

R155m as a Transnet 8.333% bonus

 

dd

31 March 2014

R2983m

R305m as two Transnet 8.333% bonuses respectively

 

ee

31 March 2015

R3145m

R300m as two Transnet 8.333% bonuses respectively

   

31 March 2016

R3807m

R294m as two Transnet 8.333% bonuses respectively

   

31 March 2017

-

R360m**

Notes:

* Uses after 31 March 2016 were two Transnet bonuses of 10% and 11% respectively, and an extra 2.07% pension increase and 13th cheque bonus for SAA and PRASA respectively

** Uses after 31 March 2016 were 10% and 11% bonuses respectively

(2)(a) The surpluses have been used to pay bonuses to beneficiaries of the Transnet Pension Fund and Transnet Second Defined Pension Fund.

(b) The expected future uses a mixture of bonuses and pension increases above 2%, should the Rules be amended to allow this.

 

21 December 2016 - NW2663

Profile picture: Mazzone, Ms NW

Mazzone, Ms NW to ask the Minister of Public Enterprises

What amount did the former Chief Executive Officer of DENEL, Mr Riaz Salojee receive in payment of a severance package before the specified person’s suspension and subsequent resisignation?

Reply:

Mr. Riaz Saloojee did not receive a severance package and did not resign. He was only paid up to the end of his contract.

   
   
   
   
   

21 December 2016 - NW2611

Profile picture: Baker, Ms TE

Baker, Ms TE to ask the Minister of Water and Sanitation

With reference to her reply to question 2195 on 31 October 2016, (a) for how many hours has each specified water board sat (i) in the (aa) 2013-14, (bb) 2014-15 and (cc) 2015-16 financial years and (ii) since 1 April 2016 and (b) what is the total amount that each of the specified board members was paid in (i) remuneration and (ii) any other allowances in the specified periods?

Reply:

Requesting the Honourable Member to refer to the Water Boards Annual Reports of each specified financial year.

---00O00---

20 December 2016 - NW2577

Profile picture: Mokoena, Mr L

Mokoena, Mr L to ask the Minister of Mineral Resources

(a) How does his department intend to deal with zama-zamas and (b) how will the outputs of this plan be measured?

Reply:

(a) The department has established provincial illegal mining stakeholder forums in Mpumalanga, Free State, Gauteng and Northern Cape Provinces. Various stakeholders such as government departments (i.e. National, Provincial and local government), law enforcement agencies, mining companies, unions and associations, municipalities, certain SOEs, refineries and organized communities participate in these forums. Physical activities such as closure of open mine holes, arrests, prosecutions and convictions, deportations, disruptive operations and encouragement of land use/occupation have been conducted which led to a significant decrease of this practice. The illegal mining space is decreasing which result to illegal miners fighting for the remaining limited space and resorting to other crimes.

(b) The above mentioned Provincial Stakeholder Forums have action plans of which the output is measured against the action plan. Since the establishment of the Provincial Illegal Mining Stakeholder Forums progress has been made on combating illegal mining activities. The following has been achieved through the Provincial Illegal Mining Stakeholder Forums:

  1. Illegal miners were arrested and continued to be arrested and convicted.
  2. Illegal imigrants who are also involved in illegal mining activities were arrested and continued to be arested and deported.
  3. Mining permits have been issued to mining companies to conduct legitimate mining in areas that were infested with illegal mining.
  4. Most of the open holes and open shafts where illegal mining was taking place have been sealed, rehabilitated or closed.
  5. Land where illegal mining was taking place has been rehabilitated and used for development.
  6. People were employed through rehabilitation and shaft sealing projects.
  7. Conviction rates have increased from 2 months to 8 years.
  8. Reef outcrop and sub-oucrop areas where illegal mining was taking place has been succesfully mined and continued to be mined by legitimate mining companies.

Approved/not approved

Mr MJ Zwane, MP

Minister of Mineral Resources

Date Submitted:-……………/………………/2016

15 December 2016 - NW2743

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Mulder, Dr CP to ask the Minister of Finance

(1)With reference to point (5) of his reply to question 2375 on 30 November 2016, (a) when and (b) how did the Public Investment Corporation violate the strategic asset allocation owing to the movement of the markets in each separate case; (2) whether the investment committee of the Government Employees Pension Fund (a) was informed in each individual case regarding the violation and (b)(i) condoned or (ii) rectified it?

Reply:

The following information was submitted by the Public Investment Corporation:

1. There were no investments made outside the mandate. However, there have been some technical breaches as is normal in the ordinary course of asset management business. These technical breaches are as a result of various factors such as changes during portfolio transitioning periods, market movements and currency fluctuations. These technical breaches are recognised by the mandate signed with the Government Employees Pension Fund (GEPF).

2. All technical breaches are reported to the GEPF in accordance with the mandate.

15 December 2016 - NW2745

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Mulder, Dr CP to ask the Minister of Finance

(1)What is the (a) nature and (b) legal basis for the protection that deposit-taking banks give their clients against fraud (i) inside and outside the banks and also (ii) as a result of online scams to protect their clients’ money; (2) whether banks are obliged to take out insurance for these risks; (3) whether banks are obliged to compensate their clients 100% for losses incurred where the clients themselves did not act negligently and the problem has arisen at the bank itself and with other service providers, such as cellphone companies; if not, why not; if so, what is the legal basis of the obligation?

Reply:

(1)(a) The South African Banking Risk Information Centre (SABRIC) has been established by the banks in South Africa specifically to assist the banking industry in combating organised bank-related crimes. SABRIC consistently releases information on different types of criminal activity, including cyber-crime, to assist customers to be more vigilant. Banks themselves have in place sophisticated systems to detect and prevent fraudulent access to customer accounts. Internationally, the issue of technological innovations in the financial sector, and the risks that it can bring from a cybercrime perspective, is a major focus area, led by international regulators in the Financial Stability Board and Basel Committee on Banking Supervision.

(1)(b)(i), (ii) The current legal basis for financial consumer protection is in terms of generic consumer protection legislation. However, it is important to note that Parliament is currently processing the Financial Sector Regulation Bill, which places a strong emphasis on market conduct regulation and the fair treatment of customers in the financial sector. The Bill creates a Financial Sector Conduct Authority, and will result in the introduction of new regulation and standards that aim to better protect financial sector customers.

Currently, banks are required to comply with the Consumer Protection Act 68 of 2008, which provides for the rights of consumers to be protected against, for example false, misleading or deceptive representations (section 41) and fraudulent schemes and offers (section 42).

Banks are also required to ensure continued compliance with legislation such as the Financial Intelligence Centre Act 38 of 2001, the Prevention of Organised Crime Act 121 of 1998 and the Protection of Constitutional Democracy against Terrorist and Related Activities Act 33 of 2004. Banks are specifically required to register with the Financial Intelligence Centre in terms of section 43B of the Financial Intelligence Centre Act. Sections 21 to 45F of that Act address the control measures which banks must implement to combat money-laundering activities and prevent the financing of terrorist and related activities.

Regulation 50 of the Regulations made under section 90 of the Banks Act 94 of 1990, states that a bank must implement and maintain robust structures, policies, processes and procedures to guard against the bank being used for purposes of financial crime such as fraud, financing of terrorist activities and money laundering.

In terms of the Regulation 50, banks are required to facilitate co-operation with relevant law-enforcement agencies, identify customers, recognise suspicious customers and transactions, maintain high ethical standards in all business transactions, provide adequate training and guidance to staff, maintain records of transactions, report suspicious customers and transactions and provide a clear audit trail.

(2) The manner in which a bank mitigates its risk is not prescribed per type of risk (e.g. fraud and financial crime risks) by the Regulator. However, Regulations 33 and 34 of the Banks Act do require a robust enterprise risk management framework for a bank, which includes operational risk, such as fraud and financial crime. There is an obligation on banks to hold capital for operational risk. Banks are allowed to take out insurance against this risk, but this does not influence the regulatory capital requirement.

(3) The manner in which a bank compensates a client depends on the bank’s internal policies and are generally assessed on a case-by-case basis. Clients that are not satisfied with the services of their bank in relation to such compensation decisions can approach the Ombudsman for Banking Services. The majority of retail banks in South Africa are members of the Ombudsman for Banking Services. Going forward, it is worthwhile to note again that the conduct of business of retail banks, including its fair treatment of customers, will be regulated by the Financial Sector Conduct Authority when the Financial Sector Regulation Bill is enacted.

15 December 2016 - NW2741

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

(1)Whether with reference to his reply to question 1804 on 30 November 2016, the SA Airways (SAA) (a) chairperson and/or (b) board granted the National Treasury permission to commence the specified review; if not, why not; if so, what are the relevant details; (2) what are the (a) names, (b) scope and (c) value of each SAA contract that the National Treasury (i) has reviewed (ii) is reviewing and (iii) will, pending approval by the SAA Board, review; (3) whether he will make a statement on the matter?

Reply:

1. SAA has granted the National Treasury permission to review contracts.

2. The National Treasury requested the following 7 contracts on the 01st November 2016, currently received documentation for 3 contracts.

No

Names (a )

Scope

(b)

Estimated values

(c)

Has reviewed

(i)

Is reviewing

(ii)

Pending approval by the SAA Board

(iii)

1.

Security

X-Ray Machine

R37 m

     

2.

Marketing & Media

Global Advertising

R90 m

     

3.

Ground handling

Washington

R 5 169 710

     

4.

Crew Transport

Crew Transport at ORTIA, Durban and Cape Town

R21 m

   

Awaiting documents

5.

Inflight Services

Wines

R20 m

   

Awaiting documents

6.

Inflight Services

Catering in Hong Kong

R47 m

   

Awaiting documents

7.

Inflight Services

Cosmetics and Amenity kits

R105 m

   

Awaiting documents

3. The above is consistent with the approach of the CPO to, from time to time, review certain tenders above the value of R10m in various government entities to ensure that there was ‘value for money’ obtained by government.