Questions and Replies

19 December 2018 - NW3373

Profile picture: Mkhaliphi, Ms HO

Mkhaliphi, Ms HO to ask the Minister of Finance

(a) What were the reasons for the purchase of a certain company (name furnished) by the SA Revenue Service (SARS), (b) who approved the purchase of the company and (c) what services did the company provide to SARS?

Reply:

a) SARS did not purchase a certain company (name furnished). A certain company (name furnished) was created and registered by SARS as a wholly owned State Owned Company (SOC) for the purpose of purchasing the business of Tatis Africa (Pty) Ltd and to employ the skilled staff of Tatis. Tatis Africa (Pty) Ltd subsequently changed its name to Tatis International (Pty) Ltd (Tatis), which comprised mainly of the intellectual property in the Tatis customs management solution software and its processes. A certain company (name furnished) also had to provide support and maintenance services to ADA (Luxembourg Customs), which at the time already had the software in operation. It was also intended to market the core customs solution through value-added resellers.

b) The Minister of Finance and Treasury approved the purchase of the business and assets of Tatis.

c) A certain company (name furnished) delivered the first phase of the modernisation programme to SARS in 2013, which is referred to as the iCBS (Interfront Customs and Border Management Solutions). It continued to support and maintain the iCBS, whilst at the same time adopting and modifying it by developing software for the new Customs Acts Programme.

19 December 2018 - NW3649

Profile picture: Paulsen, Mr N M

Paulsen, Mr N M to ask the Minister of Finance

Has the National Treasury, the Government Technical Advisory Centre and/or the SA Revenue Service awarded any contract to a certain institute (name furnished) since 1 January 2009; if so, what (a) was the contract for and (b) amount was paid to the institute?

Reply:

NATIONAL TREASURY

No contract was awarded since 1 January 2009.

GTAC

 

PARI contracts awarded and payments made up to October 2018

         
 

Contract Description

Duration

 

Amount paid

         

1

Provision of technical advisory services to the Eastern Cape Department of Education with the schools rationalisation project: knowledge management specialist

Nov 16 - Apr 19

 

999,798.61

         

2

The provision of action learning support to the Eastern Cape Department of Education turnaround project, focusing on supply chain improvement and culture change

Feb 14 - Feb 15

 

829,246.51

         

3

City Support Programme –Longitudinal studies, Case studies

Nov 14 - Nov 17

 

2,204,000.00

         

4

Expenditure and Performance Review of National Language Services - PanSALB, CRL and language services in the Dept of Arts & Culture

Nov 13- May 14

 

548,700.00

         
 

Total payments made

   

4,581,746.12

         

SARS

a) SARS awarded a contract to PUBLIC AFFAIRS RESEARCH INSTITUTE on 02 February 2011. This was for services to conduct a SARS Corruption study at a National level on a once off basis.

b) An amount of R799 755.00 was paid once off in 2011 for the services rendered.

19 December 2018 - NW3313

Profile picture: Mathys, Ms L

Mathys, Ms L to ask the Minister of Public Works:

(1) (a) On what date was the information technology (IT) infrastructure of (i) his department and (ii) entities reporting to him last upgraded or updated, (b) what is the name of the company contracted to do the upgrades, (c) what was the monetary value of the contract and (d) what is the name of each IT system that was upgraded; (2) (a) what is the name of the company that is currently responsible for the maintenance of the IT systems of (i) his department and (ii) entities reporting to him and (b) what is the value of the contract?

Reply:

(1) (a) (i) From 2014 to 2018

(b) the companies are, namely: Technology Corporate Management; Nambithi Technologies; EOH Mthombo; Odirile IT Holdings; Business Connexion; State Information Technology Agency; and Vodacom.

(c) Technology Corporate Management = R19 990 876.57

Nambithi Technologies = R13 626 624.77

EOH Mthombo = R12 131 776.84

Odirile IT Holdings = R20 459 128.48

Business Connexion = R127 418 715.24

State Information Technology Agency = R9 089 726.36

Vodacom = R5 539 284.36

(d) IT systems that were upgrade are as follows:

Name of the System

Service

Company

Value

1. Backup Infrastructure

Backup and recovery solution (2014-2017)

Technology Corporate Management

R19 990 876.57

2. Server Infrastructure

Regional servers (2014-17)

Nambithi Technologies

R13 626 624.77

 

V-Block replacement @ SITA (2017-18)

Odirile IT Holdings

R12 642 360.34

3.Data centres Infrastructure

Uninterrupted power supply and cooling (Head Office and Regions) (2017-18)

EOH Mthombo

R12 131 776.84

   

Odirile IT Holdings

R7 816 768.14

4. Network and Audio-visual Infrastructure

Procurement, installation and care pack service for the network equipment (2014)

Business Connexion

R127 418 715.24

 

Virtual Private Network (VPN) upgrade (2018)

State Information Technology Agency (per annum)

R9 089 726.36

 

Unified Communications (least cost routing and other related services): National Treasury Contract RT15 (2018)

Vodacom (per annum)

R5 539 284.36

 

Access Point Network Solution (User Mobile Data Services): National Treasury Contract RT15 (2018)

Vodacom per annum –

Paid per utilisation @ R0,1550 /MB

R325 560.00

(2) (a) (i)

State Information Technology Agency

Vodacom (Unified Communications (least cost routing and other related services): National Treasury Contract RT15)

Vodacom (Access Point Network Solution (User Mobile Data Services): National Treasury Contract RT15)

(b) (i)

State Information Technology Agency = R9 089 726.36 (per annum)

Vodacom (Vodacom (Unified Communications (least cost routing and other related services): National Treasury Contract RT15) = R5 539 284.36 (per annum)

Vodacom (Access Point Network Solution (User Mobile Data Services): National Treasury Contract RT15) = R325 560.00 (per annum)

Information pertaining to Public Entities reporting to the Minister of Public Works

Agrément South Africa (ASA)

(1)(a)(ii) Not applicable

Thus (b)(c)(d) as well as (2)(a)(ii) and (b) fall away.

Council for the Built Environment (CBE)

(1) (a) (ii) Last Upgrade Date

(1) (b) Service Provider

(1) (c) Contract Value

(1) (d) Details of the Upgraded Service

Contract Period

Service Type

Maintenance

(2)(a)(ii)(b)

September 2017

Data Centrix

R573 189.00

2 X Servers – HPE DL 380’s , supply and Setup for Virtual Environment

Once-Off

Infrastructure

 

N/A

April 2017

E-Novative Technologies

Africa

R1 053 538.00

Network and Telephone Setup New Offices, supply of Cisco Equipment, Wifi and Cabling

Once-Off

Infrastructure

N/A

1. September 2017

2. October 2018

Sage Computers Technologies

1. R281 786.00

2. R263 580.00

Laptop Refresh

Once-Off

Infrastructure

3yrs Warranty OEM (Original Equipment Manufacturer)

May 2018

IEE (Intelligence Everywhere Enterprise)

R498 000.00

Disaster Recovery as-a-service (DRAAS) - the service procured includes (Hardware, Server Space, Disaster Recovery Team, Monitoring, Backup, Replication and 10 Seats Office Space, Support and Maintenance)

12 Months (Mar 2018 –Mar 2019)

Infrastructure

Included in the contract

Feb 2018

E-Novative Technologies

Africa

R299 221.00

Firewall Security Service – Security as-a-service = 24/7/365 Supply, Implement, Support and Maintenance – Fortigate Solution

36 Months ( Feb 2018 – Feb 2021)

Infrastructure - Security

Included in the contract

Nov 2017

Nashua Kopano

R379 612.00

2 X Big Photo Copier/ Printer Rental and 4 x Printers Outright Purchase

24 Months (Nov 2017 – Oct 2019)

Infrastructure

Included in the contract

May 2018

Pulego Communications

R385 000.00

Website and intranet Development, Support and Maintenance

24 Months (March 2018 – March 2020)

IT System

Included in the contract

Construction Industry Development Board (CIDB)

(1)(a)(ii)

The system was upgraded to latest version on the 29th of March 2017.

(b) The company contracted to upgrade the system is nVisionIT as they were awarded a contract to maintain and support the system.

(c) The total amount of the contract was R656 600.00

(d) The name of the system upgraded is Microsoft Dynamics CRM and it was upgraded to a latest version (2016)

(2)(a)(ii)

The name of the service provider currently responsible for the maintenance of the IT systems is nVisionIT

(b) The total value of the contract is R4 912 110.00 for a period of 12 months.

Independent Development Trust (IDT) conducted several IT systems upgrades outlined as follows:

Wide Area Network Infrastructure upgrade:

The IT core network Infrastructure (Wide Area Network Infrastructure) for the IDT was last updated in March 2015. The name of the company contracted to do the upgrade was Telkom/BCX.

The contract value of the upgrade over three years (2015-2018) was R10 150 358.40.

The company currently doing the maintenance on the system is Telkom/BCX. Telkom provides the band width and maintains the network infrastructure for three years’ contract value.

The IDT also had a Financial Systems upgrade:

The financial systems were last upgraded in December 2013. The name of the company contracted to do the upgrade was Praxis. The contract value of the upgrade was R5 000 000. The IT system upgraded was Great Plains.

The company currently doing the maintenance of the financial system is Sethewo Pty Ltd. The contracted support rate is R 940.00 per hour. This includes support and general bugs fixing. The licence fee for Great Pains is R578 998.38 per annum.

IDT also conducted a Human Resources & Payroll Systems upgrade:

The Human Resources and Payroll systems were last upgraded in July 2017. The name of the company contracted to do the upgrade was Sage VIP. The contract value of the upgrade was R1 153 165.00. The IT System upgraded was Sage 300 Peope. The company currently doing the maintenance of the system is Sage VIP. The contracted support rate is R1 020.00 per hour. This includes support and general bugs fixing. The licence fee for Sage 300 People is R266 964.00.

19 December 2018 - NW3377

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Finance

(1)Whether he has been informed that members of the so-called Rogue Unit of the SA Revenue Service were allegedly given R150 million by a certain person (name furnished) allegedly to illegally install cameras and bugs at the offices of the Directorate for Priority Crime Investigation and the SA Police Services in 2007; if not, what is the position in this regard; (2) whether they obtained the authority to do the alleged illegal installations; if not, what is the position in this regard; if so, who authorised it?

Reply:

  1. I am not aware of an alleged payment of R150 million that was allegedly given to the members of the so called Rogue Unit.
  2. The Acting Commissioner has consulted with his Finance Team and they have confirmed that there is no record of the alleged R150 million payment flowing through the SARS Bank Accounts.
  3. The Acting-Commissioner furthermore informs me that to his knowledge, no installation of this nature occurred in the course of SARS operations and that no authority for the alleged installation was, as a result, requested from SARS or granted by SARS.

19 December 2018 - NW3485

Profile picture: Mhlongo, Mr P

Mhlongo, Mr P to ask the Minister of Finance

What qualifications and experience did a certain person (name furnished) have to be considered for appointment in certain positions (details furnished)?

Reply:

A certain person (name furnished) was appointed as Chief Officer Strategy, Enforcement and Enablement (SEE) on the 1/02/2011. The appointment was based on his extensive experience in enforcement within the Security Cluster. When he commenced his employment at SARS in 1999 he was appointed at a Chief Director level.

It is understood that the SARS qualification framework at that time made provision for either minimum qualifications and/or a number of years relevant experience as requirements for appointment. A certain person (name furnished) was then appointed on the basis of his experience.

In the 2009 Financial year three Senior SARS staff were designated as Deputy Commissioners of which Mr Ivan Pillay was one. He was never appointed as Commissioner but only Acted in that role.

According to SARS records, a certain person (name furnished) holds a grade 12 qualification.

Date

Job Title

Department

Grade

1999/04/01

Chief Director

Investigation Administration

DPSA Level 14

2000/06/01

Chief Director

Comp Si  Head Office

DPSA Level 14

2000/07/01

GM: COMPLIANCE

Comp Si  Head Office

9

2004/01/24

GM:ENFORCEMENT & RISK

Cmd: Compliance

9

2005/04/01

GM:ENFORCEMENT & RISK

Enforcement

9

2011/01/01

Chief Officer: Enforcement & Compl Risk

Enforcement & Compliance Risk

9

2011/02/01

Deputy Commissioner / Chief Officer: SEE

Office of the Commissioner

9

2012/05/01

CO: Strategy Enablement & Enforcement

Office of the Commissioner

9

2013/10/01

CO: Strategy Enablement & Communication

Office of the Commissioner

9

19 December 2018 - NW3679

Profile picture: Mathys, Ms L

Mathys, Ms L to ask the Minister of Higher Education and Training

(a) What number of institutions of technical and vocational education and training colleges have contracts with a certain company (name furnished) and (b) what (i) is the (aa) monetary value and (bb) duration of each contract and (ii) are the relevant details of the goods and services that the specified company provides in each case?

Reply:

The National Department of Public Works (NDPW) has taken a stance that all projects implemented by the department need to contribute towards the Expanded Public Works Programme (EPWP). The NDPW will consider the use of EPWP methodology in the erection of lighting and fencing at truck stops at the precincts of Government buildings and State-owned entities, when such projects are implemented by the Department and its entities.

19 December 2018 - NW3724

Profile picture: Dlamini, Ms L

Dlamini, Ms L to ask the Minister of Public Enterprises

(a) What number of persons are employed by each state-owned enterprise and (b) What is each person’s position?

Reply:

According to the information received from Eskom

(a)

Eskom Group, which includes Eskom Rotek Industries (ERI), as at the end of September 2018 had a headcount of 47 972.

(b)

Annexure A provides each person’s position.

19 December 2018 - NW3379

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Finance

Whether a certain person (name furnished) was given downloaded material during the period 1 January 1999 up to 31 December 2009 of the alleged illegal bugging of the offices of the SA Police Service and the Directorate of Special Operations (Scorpions); if not, what is the position in this regard; if so, what are the relevant details?

Reply:

The Acting Commissioner of SARS has informed me that SARS has no evidence of any such incident(s).

19 December 2018 - NW3406

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Tourism

Following the pronouncements by the Government to accelerate the oceans economy, what steps will his department take in order to work with cities and harbour authorities to ensure that dedicated cruise tourism infrastructure becomes the catalyst to unlock the potential of the country as a global cruise tourism destination of choice?

Reply:

Tourism is a competency shared between national, provincial, and local government – and in this case, with the harbour authorities (i.e. Department of Public Enterprises - Transnet). The infrastructure developments and strategies that are part of the Coastal and Marine Tourism implementation plan are thus primarily owned by the two provinces/cities in question, together with Transnet. The objectives in these infrastructure developments were, inter alia, to offer new and modernised terminals that will provide an ideal gateway to a unique South African experience through the Ports of Durban and Cape Town in support of the tourism industry. In addition, this infrastructure served to provide modern reception facilities with safe, reliable and efficient marine services to enhance the visitor experience ensuring that cruise terminals in South Africa have:-

  • Sufficient tourist facilities, namely, integration of the creative industry (arts and crafts), retailers, restaurants, suppliers of fresh food, waste disposal facilities, luggage handling;
  • Tourist, family and child friendly facilities;
  • Sufficient and easy to access parking facilities for various modes of transport such as, metre taxis, shuttle service, tour operators, bus service etc.;
  • Safe and free walk ways for tourists / public to walk to the city and back to the terminal (tourist safety), (including city police / SAPS); and
  • Fast track the processing of tourist arrivals and departures at the cruise terminals (including Home Affairs).
  • Going forward, the Department intends to coordinate the development of a Cruise Tourism Maximisation Strategy, which will include all relevant stakeholders – (all) port cities, provinces, harbour authorities, local tourism authorities and tourism associations. The aim of this strategy will be to collate information, share views and insights and to develop tourism beyond cruise infrastructure. The intended outcomes include: -
    • More cruise liners docking for longer periods in South Africa;
    • Leverage economic spinoffs for tour operators, hotels, game reserves, lodges and attractions and related industries
    • Increased development of tourism and related products such as wine outlets, jewellery, arts and craft in close proximity of arrival facilities;
    • Opportunities to support trained chefs through the incubator programme to establish and run their own restaurants); and
    • Collaboration with neighbouring destinations along South Africa’s two coasts.

19 December 2018 - NW3371

Profile picture: Dlamini, Mr MM

Dlamini, Mr MM to ask the Minister of Finance

(1)Whether the SA Revenue Service removed a certain service provider for information technology services (name furnished) and replaced it with other specified service providers (names furnished) as contractors or service providers during the period 1 January 1999 up to 31 December 2009; if so, (a) what was the rationale behind this decision, (b) how was the specified rationale substantiated and (c) on what basis were both these companies selected; (2) (a) why was the contract extended for a period of 12 years, (b) has he found that the extension was legal or compliant with relevant legislation and regulations and (c) did either of the companies go through a tender process for the initial contract or the extension?

Reply:

1 a) Yes, SARS replaced Oracle with BBD through a deviation process;

This was due to the fact that Oracle UK initially offered to review the offering against SARS’ requirements. Alternative proposals were put forward, but it quickly became apparent that SARS’ functional needs as agreed with Siebel, far exceeded what Oracle intended to deliver regarding scope, cost and implementation timelines.

b) The replacement was justified as follows:

Extensive discussions were conducted with Oracle in an attempt to rescue the transaction and bring it back in line with SARS’ original understanding, namely that it:

  • be a turnkey solution including all required infrastructure, hardware/networks and integrated costs. The contractor would manage, for a fixed price and delivery timeline, the solution “end to end” and guarantee its performance when in production;
  • be capped within the cost limit;
  • Includes all the functionalities which formed part of Exco’s original understanding.
  • Notwithstanding the fact that it was telephonically confirmed to SARS’ representatives by Oracle, Oracle was not willing to provide SARS with an undertaking in line with the above.

c) Accenture – came into SARS through a tender process in 2005 to appoint a strategic partner to assist SARS with the Modernisation Programme

The 2006 SARS records that have been reviewed by the current procurement leadership team reflects that the selection of the three entities (i.e. IBM, Accenture and BB&D) was based on the industry knowledge of the then Strategy, Modernisation and Technology senior staff. In circumstances relating to the replacement of the Oracle transaction BB&D was then chosen from the listed primarily because of price consideration.

2 a) The reason for not inviting competitive bids and instead extending the service providers’ contracts (i.e. Accenture, BB&D and others) was considered to be due to exceptional reasons which mainly centred on the need for natural continuation of the projects where previous work was carried out by the same service providers, thus presenting a clear advantage over competition. SARS wanted to also ensure consistent engagement with the same service providers in order to avoid a risk of information being disclosed to the public as the project was linked to taxpayer and SARS employee’ information.

b) The extensions of both Accenture and BBD were legal and compliant with the relevant legislation and regulations.

c) Accenture was selected through a tender process. BB&D was appointed through a deviation.

19 December 2018 - NW3311

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Finance

(1)(a) On what date was the information technology (IT) infrastructure of (i) the National Treasury and (ii) entities reporting to him last upgraded or updated, (b) what is the name of the company contracted to do the upgrades, (c) what was the monetary value of the contract and (d) what is the name of each IT system that was upgraded; (2) (a) what is the name of the company that is currently responsible for the maintenance of the IT systems of (i) the National Treasury and (ii) entities reporting to him and (b) what is the value of the contract?

Reply:

NATIONAL TREASURY

(1)(a)(i) 21 December 2016

(1)(a)(i)(b) Storage Technology Services (Pty) Ltd (StorTech)

(1)(a)(i)(c) R13,574,635.87

National Treasury shares infrastructure with Government Technical Advisory Centre and Co-operative Banks Development Agency.

(1)(a)(i)(d) Underlying IT Infrastructure that supports all applications and services, was upgraded.

(2)(a)(i) Maintenance of the IT systems is done within National Treasury.

(2)(a)(i)(b) N/a

ASB

1. The Accounting Standards Board uses off-the-shelf software without any amendments or modifications. All the computers were upgraded to Windows 10 on 26 October 2018. The upgrades were done by ITWindows CC and the cost of the upgrade was R10 062.50.

2. All IT maintenance is outsourced to ITWindows CC and the monthly fee is R5 500. The contract is for a twelve-month period, but can be cancelled with a 30-day notice period.

CBDA

CBDA uses National Treasury IT infrastructure at no cost. Please see information below provided by the National Treasury.

Date when the information technology (IT) infrastructure procurement

21-Dec-16

Name of Service Provider

Stortech

Value of Requisition

R 13,574,635.87

Nature of goods

Underlying IT Infrastructure that supports all applications and services was upgraded

Maintenance

In-house

Note:

CBDA shares infrastructure with GTAC and National Treasury hence costs are shared

DBSA

  1. (a) (ii), (b) (c) (d)

DBSA applies the Supply Chain Management (SCM) processes of reviewing and inviting bidders for ICT services every three years (3 years). Provisions are in place to also re-evaluate sole source vendors on a minimum annual basis. The core ICT systems and ICT infrastructure purchases done is shown on Section 1 of the below table.

Section 1. Update / Term Contracts

             

Core Infrastructure

Vendor

Update Date

Contract End Date

Value

Comments

Servers and Storage

Puleng Technologies

Jul-14

N/A

R7,452,017.29

Capex purchase of IBM Server/Storage equipment.

Local Area Network

Bytes Technologies

Jul-14

N/A

R11,519,640.00

Capex purchase of Cisco Network equipment.

Wi-Fi Network

Bytes Technologies

Sep-17

N/A

R7,582,621.38

Capex purchase of Cisco Wi-Fi equipment.

Telephone System

Gijima

Jan-16

N/A

R4,211,373.77

Capex purchase of NEC Telephone system

Multifunction Printers

Dido

May-18

Apr-21

R6,874,929.00

3 year agreement for the provision of multi-function printers

Backup and DR Services

Global Continuity SA

Apr-18

Mar-21

R3,705,300.00

3 year agreement for the provision of data backup and disaster recovery services

Internet Bandwidth and related services

Internet Solutions

May-18

Apr-21

R9,564,256.68

3 year agreement for the provision of Internet Bandwidth, hosting, APN, video conference bridge and web content filtering

Core Systems

Vendor

Update Date

Contract End Date

Value

Comments

SAP

SAP

Jul-16

N/A

R5,133,120.25

Last major update on Human Capital, Financials, Loans, Procurement

Quantum (Treasury System)

FIS Global

Apr-18

N/A

R3,090,675.00

Last major upgrade due to IFRS 9

  1. (a) (ii) (b)

The SCM processes are applied for ICT services for maintenance and support contracts. Section 2 and 3 covers the core ICT systems and ICT Infrastructure maintenance & support and licencing.

Section 2.Licenses

             

Software

Vendor

Contract Start Date

Contract End Date

Value

Update Frequency

Last Update

Comments

Microsoft Productivity Tools - DBSA

Microsoft

Jul-16

Jun-19

$597,296.79

Monthly

Oct-18

3 year agreement for Microsoft Windows, Office, SharePoint, Skype for Business, Data Centre and Client Access Licenses

Microsoft Productivity Tools - IDD

First Technologies

Oct-17

Sep-20

R1,705,089.39

Monthly

Oct-18

3 year agreement for Microsoft Windows, Office and Client access licenses. Subscription licenses procured to allow for flexibility

Microsoft Server licenses

Microsoft

Jul-17

Jun-20

$344,355.48

Monthly

Oct-18

3 year agreement for Microsoft SQL licenses

SAP Licenses (ERP)

SAP

Feb-09

N/A

R3,653,043.00

Annually

Aug-18

Country Legislative Changes (e.g. Tax, Budget, etc.)
Vendor review conducted annually

Quantum (Treasury System) licenses

FIS Global

Dec-04

N/A

R1,900,000.00

OEM release schedule

Sep-18

OEM release schedule and Legislative (IFRS9)
Vendor review conducted annually

Section 3. Maintenance and Support

             

Core Infrastructure

Vendor

Contract Start Date

Contract End Date

Value

Update Frequency

Last Update

Comments

Servers and Storage

IBM

May-17

May-19

R1,560,888.60

As per OEM release schedule

Jul-18

2 year maintenance contract for hardware and software support

Local Area Network

Datacentrix

Mar-18

Feb-21

R6,392,728.00

As per OEM release schedule

Aug-18

3 year maintenance for hardware and software support, combined into one contract including both Wi-Fi and LAN

Wi-Fi Network

Datacentrix

Mar-18

Feb-21

 

As per OEM release schedule

Jul-18

 

Core Systems

Vendor

Contract Start Date

Contract End Date

Value

 

 

Comments

SAP

Gijima

May-17

Apr-20

R14,645,493.55

Monthly

Oct-18

3-year support and maintenance of SAP system

Quantum (Treasury System)

FIS Global

Apr-17

N/A

R312,500.00

 

Apr-18

Annual support and maintenance fee

FAIS OMBUD

  1. No upgrades being done.
  2. (a) Hubtech Investment is currently responsible for the maintenance of the IT System

(b) R263 547.00

FIC

(1) The Financial Intelligence Centre’s information is as below:

(a)(ii)

Year

(b)

Supplier

(c)

Value

(d)

Description of  Infrastructure Hardware – Last 3 years

02/11/2015

Datacentrix

R 2 782 641.00

Cisco IPS

23/09/2015

Nambiti

R   169 269.20

Dell Server – Extra SQL host

04/12/2015

Sizwe

R   285 504.04

Cisco Routers

24/11/2015

Sithabile

R    315 903.39

Quantum Tape library

20/11/2015

Sizwe

R 1 534 947.64

Cisco Routers and Switches

24/03/2016

DEP Technologies

R    278 423.81

SAN storage upgrades

30/11/2016

Sizwe

R 2 607 191.95

Cisco Routers and Switches

16/10/2016

First Technology

R   187 567.85

VMWare Site recovery Manager

09/09/2016

DEP Technologies

R    225 818.82

VEEAM Backup software

02/12/2016

Edzenel Construction

R    160 611.06

Sophos firewalls

16/01/2017

JOS Electronics

R    142 249.18

Sophos Firewalls

16/02/2017

Dell

R    457 183.96

Dell Server Memory

23/03/2017

Sizwe

R 1 140 279.44 

Video Conferencing equipment

27/08/2018

Data Science

R 6 556 109.01

Pure SAN storage

(2)(ii) The Financial Intelligence Centre’s information is as below:

(a)

Supplier

(b)

Value

Business Connexion

R 1 188 482.28

Tendai Group

R  124 200.00

DEP

R 166 200.00

SITA

R 522 105.46

Sizwe

R 109 997.00

Dell

R1 419 449.08

FSCA

There were several information technology (IT) infrastructures upgrades over the past 3-4 years and this upgrade was driven by the need to refresh the aging technology that was about to reach end of useful and support life and were becoming uneconomical to maintain.

1. (a) The Information Technology (IT) infrastructure at the FSCA was upgraded as follows:

• The server and storage infrastructure in the production and in the disaster recovery environments were upgraded in March 2016 and March 2017;

• The server and storage infrastructure in the development and User Acceptance testing environments were upgraded in March 2018;

• The security and network optimisation and load balancing infrastructure (F5) was upgraded in September 2017 and in February 2018;

• The first phase of the audio visual equipment took place in June 2017 and the second phase of the upgrade is in progress. It is anticipated to be completed in February 2019;

• The network infrastructure is in the process of being upgraded with the anticipated project completion date March 2019.

(b) and (c) The infrastructure upgrades were conducted by different companies and the names of the companies contracted to do so as well as the monetary values are as follows:

 

   

( b )

( c )

IT infrastructure Upgrade

Date Completed

Contracted Company

Contract Value

Server infrastructure upgrade for the Production and DR environments

March 2016

Ubuntu Technologies

R 1 322 706.03

 

March 2016

Bytes Systems Integration

R 697  766.43

 

March 2017

Nambiti  Technologies

R 2 392 429.09

Server and storage infrastructure upgrade in the Non production environments. Additional servers for the Production and DR environments

March 2018

Aptronics (Pty) Ltd

R 13 586 783.61

Storage infrastructure for the production and DR environments

March 2016

Dell SA

R 7 930 160.00

Implementation of the wireless network at the FSCA head office

March 2017

Business Connexions

R 832 778.37

Server  and storage infrastructure for the new FSCA organization in the production and DR environments

March 2018

Aptronics (Pty) Ltd

R 7 959 089.16

Network virtualisation infrastructure (XSIGO) was replaced in the production environment

March 2018

Eclipse (Pty) Ltd

R 992 618.27

Security and network optimisation and load balancing infrastructure (F5 appliance ) in the production and DR environment

September 2017

XON (Pty) Ltd

R 3 907 780.18

 

March 2018

XON (Pty) Ltd

R 8 181 600.01

Audio visual equipment in the process of being upgraded in the production environment

June 2017

VOX Telecoms

R 564 106.18

 

March 2019

AE Solutions

R 2 372 507.50

Installation of server racks and network cabinets – Project in progress

March 2019

IT Master

R 2 005 954.60

Network infrastructure is in the process of being upgraded in the Non production, Production and DR environments

March 2019

Sizwe IT Group

R 4 661 860.89

Microsoft Skype for business is in the process of being upgraded pending approval

March 2019

Omega Solution

R 1 928 943.43

2. (a) The company contracted to maintain the IT systems, in particular the provision of desktop and infrastructure support services, is Aptronics (Pty) Ltd and the contract value is R30 million over a period of five years, which commenced on 09 December 2015.

GEPF

The Government Pensions Administration Agency provides ICT services to the GEPF.

GPAA

System

Last Upgraded

Name of company

Monetary Value of contract

Company currently responsible

Value of contract for current contract

1.CIVPEN

June 2014

(will be phased out/replaced by 2021)

Accenture

R 17 538 555

IBM (hardware is currently under a maintenance and support agreement with IBM until 30 September 2021)

R 4 812 506

2.ORACLE Infrastructure

March 2014

(Refresh planned for 2020)

Accenture

R 23 651 835

ORACLE (Currently under Oracle Premier Support until 31 March 2019 through SITA)

R 2 307 132

3.HP Infrastructure

April 2014

(Refresh planned for 2020)

EOH

R 23 995 085 Plus R 3 369 116

EOH (currently the equipment is still under a maintenance and Support contract with HP until 31 March 2020)

R 6 093 514 for all HP infrastructure

IRBA

Hardware

(1) (a) (ii) All significant hardware components are subject to the warranties from the manufacturer.

The Warranties still active no upgrades are required.

(b) Manufacturers are Dell and HP.

(c) Due to the warranty in place all defective parts are replaced at the cost of the manufacturer.

(d) Dell servers and HP switch.

(2) (a) (ii) Bytes Systems Integration a division of Altron TMT (Pty) Ltd.

(b) R4, 824 963.00 (Tender value from June 2017 to June 2022, a five year contract)

Software (Significant Systems)

(1) (a) (ii) Windows Server Updates - This is done weekly - 2 November 2018

FlowCentric - When updates are available - January 2016

AccPac - This is done annually - March 2018

(b) Windows Server Updates - Bytes Systems Integration

FlowCentric - FlowCentric (Pty) Ltd

AccPac - Lorge Consulting (Pty) Ltd

(c & d) Windows Server Updates - Included under 2 (b) under hardware

FlowCentric - R131 426.04 (2016)

AccPac - R30 245 (2018/19)

(2) (a) Windows Server Updates - Bytes Systems Integration

FlowCentric - FlowCentric (Pty) Ltd

AccPac - Lorge Consulting (Pty) Ltd

(b) Windows Server Updates - Included under 2 (b) under hardware

FlowCentric - R374 834 (Year to date)

AccPac - R8 115 (Previous financial year)

LAND BANK

Response to questions as follows:

  • Question (1) – see link Annexure “A’
  • Question (2) – see link Annexure “B”

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW3311_AnnexureB.pdf

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW3311_AnnexureB.pdf

 

PFA

(1) (a) July 2018

(b) Nambiti Technologies Pty (Ltd),

(c) Contract value amounts to R 983 040

(d) Provision of ICT equipment, installation and support for the data centre.

(2) (a)(ii) The Office of the Pension Funds Adjudicator has a service level agreement with the Financial Sector Conduct Authority for ICT support and maintenance. The following companies are used for ICT security management support:

  • Computer Security and Forensic Solutions Pty (Ltd) – Network protection and events monitoring and management
  • Check Point Software Technologies Ltd – Firewall management
  • Securicom Ltd – Email security management

PIC

(1)

(2) Other than the companies mentioned above, the PIC does not have any company that is responsible for the maintenance of IT systems.

SARS

Question 1 response

The SARS ICT Infrastructure is used to provide both support functions as well as enabling core business functions (processes). It is a heterogeneous infrastructure landscape consisting of various technology architectures sourced through formal procurement vehicles.

The SARS strategy for ICT infrastructure renewal is based on a rolling upgrade cycle in terms of infrastructure that reaches end of life in a fiscal year. This is used to request budget but actual implementation is subject to final budget approval that is not guaranteed.

Renewal of infrastructure and providing infrastructure support is categorised and handled in the following ways:

SARS follows formal procurement process to establish ICT service provider towers for a minimum of 3 years. Each tower has a formally appointed vendor for the provisioning of ICT services within that category:

Tower

Scope

Service Provider

D

Data Carrier Services

IS

V

Voice Carrier Services

IS

I

Internet and Hosting Services

Vodacom

SMS

SMS Carrier Services

MTN & Telkom

N

Network Support Services

Sizwe

S

Server Support Services

Gijima

E

End-user Device Support Services

Sizwe

From an infrastructure refresh perspective, SARS uses the appointed vendors listed above in combination with formal procurement tenders established by the State Information Technology Agency (SITA Transversals), SARS administered tenders as well as formally approved National Treasury tenders and exemptions to refresh ICT infrastructure that has reached replacement status for each fiscal year.

In terms of question 1) above the following ICT Infrastructure was updated/upgraded.

2015/16 financial year:

ICT Infrastructure CAPITAL Expenditure

Cost

Supplier

Security infrastructure

R43 593 554,00

IBM

Infrastructure licensing

R 8 964 259,00

Microsoft

Enterprise data storage

R 8 160 694,00

IBM

Transport network infrastructure

R 6 725 590,00

Cisco

IT facility infrastructure

R9 173 409,00

BTS, Merque Communications

End User Devices

R 2 342 702,00

Dell, Lenovo

Voice networking infrastructure

R 7 966 854,00

Cisco

Midrange servers capacity upgrades

R 3 361 006,00

IBM

Audio visual equipment

R 517 803,00

Other

Total

R90 805 871,00

2016/17 Financial year:

ICT Infrastructure CAPITAL Expenditure

Cost

Supplier

* IBM Software renewal

R97 616 255,00

IBM

*Midrange Servers

R52 728 191,00

IBM

*Enterprise  data storage

R81 829 559,00

IBM & Ubuntu

*Mainframe replacement

R18 936 395,00

IBM

Commodity class servers

R17 754 055,00

Microsoft

Digital signage solution

R13 693 901,00

Bytes 

End User Devices

R12 335 494,00

Dell, Lenovo

Transport network infrastructure

R 4 017 513,00

Cisco

Contact Centres data storage refresh

R 3 380 873,00

IBM 

Microsoft software licences

R 2 599 525,00

Microsoft

Total

R304 891 761,00

* These items reflect the 3 year IBM Enterprise Agreement and are the reason for the big escalation in capital expenditure

2017/18 financial year:

ICT Infrastructure CAPITAL Expenditure

Cost

Supplier

Refresh of end of life commodity class servers

R24 133 311,57

Dell

Backup storage capacity upgrade

R 4 116 941,60

EMC

IT Facilities and Offices, Generators

R 4 968 616,30

BTS, Merque Communications

IBM WebSphere renewal

R 3 955 745,58

IBM

Personal Computers - Monitors, Laptops and Desktops refresh

R 3 304 820,64

Dell, Lenovo

SAP Licenses

R32 904 235,00

SAP

Casewise Enterprise Architecture tool

R5 999 757,00

Casewise

VMWARE software capacity

R2 675 570,00

VMware

Total

R 82 058 997,69

2018/19 financial year:

ICT Infrastructure CAPITAL Expenditure

Cost

Supplier

Personal Computers - Monitors, Laptops and Desktops refresh

R15 841 566,00

Dell, Lenovo

Refresh of end of life commodity class servers

R14 851 195,84

Dell

Renewal of Enterprise Content Management Maintenance Services

R12 036 532,50

OpenText

Network Infrastructure Refresh

R10 441 869,38

Cisco

Contact Centre Media Servers Renewal

R 7 230 810,25

Radisys

Casewise Enterprise Architecture tool

R 996 511,00

Casewise

IT Facilities and Offices, Generators

R 4 140 644,32

BTS, Merque Communications

Total

R65 539 129,29

The 2018/19 infrastructure expenditure does not show current projects in execution as this is only shown upon project completion. One such example is the renewal of the eFiling infrastructure and migration to the new data centre with a total estimated value of R 197 m. Another example is the equipment for the Disaster Recovery Facilities with a total estimated value of R54m. Both these projects are expected to be completed in April 2019.

Question 2 response

As per question 2 above and in addition to the infrastructure hardware and software that enables and support the SARS business, the following Business Systems are also maintained and supported by external vendors.

Period covered

Business System

Description

Supplier

2018/19

Average Annual Maintenance and Support Value

3 Yrs Contracts values

         

BAU (Maintenance & Support)

Project and Capex

Procurement vehicle Total

01.01.2017 - 31.12.2019

eFiling

SARS premier digital channel for the submission of a variety of tax returns including VAT, PAYE, SDL, UIF, Income Tax, STC and Provisional Tax through the eFiling website.

Shandon Business Solutions

R 10 713 000

R 35 000 000

R 140 000 000

R 175 000 000

01.01.2017 - 31.12.2019

e@syFile™

SARS offline capability that assists the taxpayer to manage engagement with SARS and validate declarations in offline mode before sending them to SARS.

Ionize

R 15 659 000

R 50 000 000

R 45 000 000

R 95 000 000

01.01.2017 - 31.12.2019

ATP/Service Manager/IVR/Telephony/U3TM

A collective of integrated systems that offer Case Management, Workflows, Interactive Voice Response (IVR), Telephony for Contact Centres and Master Entity capabilities.

BBD

R 45 651 000

R 128 000 000

R 355 000 000

R 483 000 000

01.01.2016 - 31.12.2020

SAP (ERP, SRM, Sourcing, HR)

A collective of SAP modules that provide both revenue collection accounting functionality as well as corporate ERP (internal) capability.

SAP

R 35 196 000

R 129 796 838

R 160 554 000

R 290 350 838

01.01.2017 - 31.12.2019

iCBS (DPS, CPS)

The Customs ecosystem of capabilities to ensure processing of Customs declarations and other supporting functions

Interfront (SOC)

R 24 763 000

R 85 000 000

R 400 000 000

R 485 000 000

TOTALS **

     

R 131 982 000

R 427 796 838

R 1 100 554 000

R 1 528 350 838

** The above list does not include any SARS internally developed and maintained systems

** These totals are 3year procurement vehicle value

SASRIA

  1. Please refer below, at Table 1 for a reply.

Date last updated

Company responsible for upgrades

Monetary value

IT system

2018/08/01

Darktrace and Antegina

R 500 000

New security monitoring system to enhance our security

2016/09/01

AlienVault SIEM

R 500 000

New security management tool for internal and external vulnerability

2018/10/01

Data Guardian

R 150 000

Windows Server Upgrade Project and Commvault Disaster Recovery Live Sync

2016 -2018

Internet Solution

R 1 200 000

Management of comprehensive internet solution. External firewall management

2017/04/01

Metrofile

R 141 072

Backup Storage

2019/06/

Dimension Data

R 350 000

Expansion of the Wi-Fi including new WiFiless devices, WI-FI Expansion

Cisco ASA Firewall & VPN

2017/04/01

Ilanga

R 823 755

Annual IMS Services, Licenses and Maintenance

2018/04/01

DCX- Hewlett Packard/ESS Disaster Recovery/ DCX

R 225 014

Disaster Recovery Services and Hosting

2016/04/01

IDI Technology Solutions

R 23 000

GP- Great Plains Micro Dynamic Support and licenses

2018/04/01

Great Soft(Pty) Ltd

R 378 000

Subscription and Support to BoardPad Software

2017/06/30

GX Diesel

R 16 850

Generator Maintenance Services and Power generation

2014/05/26

Software AG South Africa (Pty)Ltd

R 498 000

ARIS Software Licenses, Support, Maintenance

2017/03/01

Seventynine Digital

R 41 400

Website Maintenance & Support

2016/10/06

Fraxion (Pty)Ltd

R 28 000

Fraxion Software License

2014/05/26

Software AG South Africa (Pty)Ltd

R 490 637

Renewal ARIS Software Licenses, Support, Maintenance

2018/02/01

Isometrix

R 94 000

Isometrix Upgrade & Annual Licenses

2018/04/01

Cortell Management Solutions

R 264 175

IBM Cognos Licenses renewals

2018/04/01

Intervate Solutions

R 980 000

Web Rates Calculator

2018/05/01

Dimension Data

R 110 000

WI-FI Expansion

2018/08/01

Dimension Data

R 150 000

Cisco ASA new Firewall & VPN upgrade

2018/08/01

Microsoft

R 1 100 000

New Office 365

2018/11/01

EOH

R 100 000

Cisco 3850 Catalyst Switches for network connectivity

2018/11/01

Bytes Technology

R 300 000

2x Brocade Fibre Switches to enhance storage capability

2018/11/01

Interconnect Systems

R 300 000

Setting up new office space: 34 Fricker Road, Cisco 3850 Catalyst Switches & WI-FI devices

 

TAX OMBUD

  1. The Office of the Tax Ombud utilizes the SARS IT infrastructure. All updates or upgrades are done by SARS.
  2. Maintenance of the IT systems is done by SARS.

19 December 2018 - NW3676

Profile picture: Wessels, Mr W

Wessels, Mr W to ask the Mr W W Wessels (FF Plus) to ask die Minister of Finance

(1) What is the number of taxpayers who declared capital profits regarding cryptocurrency to the SA Revenue Service during the tax years 2016, 2017 and 2018; (2) whether the National Treasury intends to introduce specific legislation, regulations and/or measures to (a) regulate the mining and trading of cryptocurrency in South Africa and (b) improve the levying of tax on the profits regarding cryptocurrency, as is already in place with the identification and levying of taxes on other traditional capital profits; if not, why not; if so, what are the relevant details and periods; (3) whether he will make a statement on the matter?

Reply:

1. SARS is not able to accurately trace the number of declaration pertaining to capital progits on cryptocurrency

The existing income tax return forms currently do not make provision for taxpayers to specifically declare capital profits regarding cryptocurrency trades, however work is underway within SARS to consider the amendment of the tax forms for the 2019 tax season in order to cater for the description of other assets (which will include cryptocurrencies) by means of a specific description field on the form.

Taxpayers who have made some form of declarations regarding cryptocurrency trades, have captured such trade as a form of “other trade income” or “other trade loss”, and have made reference to a description of digital/crypto currency trading (e.g. Bitcoin Cash, Litecoin (LTC), Ethereum (ETH), Zcash (ZEC) to name a few).

2. The South African Revenue Service (SARS) issued a media release on 6 April 2018 clarifying that it would apply normal income tax rules to cryptocurrencies.

In line with the announcement made in Annexure C of the 2018 Budget Review, the Taxation Laws Amendment Bill, 2018, proposes amendments with respect to the treatment of cryptocurrencies for income tax and value-added tax purposes.

These amendments ensure that that losses on cryptocurrencies may only be set off against profits from cryptocurrencies (otherwise known as ring-fencing), clarify that cryptocurrencies cannot be classed as personal use assets for capital gains tax purposes and treat cryptocurrencies as financial services for value-added tax purposes. Further, National

Treasury does not wish to pre-empt the work of the Intergovernmental Crypto Assets Regulatory Working Group (CAR WG). The CAR WG is looking into all aspects of cryptocurrencies, related blockchain concepts and use cases. This is being done with a view towards developing a cohesive governmental understanding and response to cryptocurrencies.

In keeping with the development of a unified intergovernmental regulatory framework, the CAR WG has broad intergovernmental representation and includes representatives from the Financial Intelligence Centre, Financial Sector Conduct Authority, National Treasury, SA Reserve Bank and SARS. It is anticipated that, following broad industry comment and participation, the CAR WG will be ready to release a final research paper on the subject during the course of 2019. The OECD/G20’s Inclusive Framework on BEPS is also working on the tax challenges arising from digitalisation, which include the issue of cryptocurrencies. An interim report was issued earlier this year (https://www.oecd-ilibrary.org/taxation/tax-challenges-arising-from-digitalisation-interim-report_9789264293083-en) with a view to issuing a final report in 2020.

3. N/A

19 December 2018 - NW3384

Profile picture: Galo, Mr MP

Galo, Mr MP to ask the Minister of Finance

(1)Whether the Government intends to use the contingency reserve to bail out underperforming state-owned entities; if so, what are the relevant details; (2) whether any funds from the contingency reserve have been used before; if so, (a) what government programmes were targeted and (b) at what value; (3) (a) what amount is the gross net amount in the contingency reserve and (b) does the National Revenue Fund and the contingency reserve fall under the same consolidated account of national Government?

Reply:

1. The budget tabled in February provides for a contingency reserve for the three years of the medium term expenditure framework period. The contingency reserve is set aside, but not allocated in advance, to accommodate changes to the economic environment and to meet unforeseeable spending pressures. The contingency reserve for the outer years of the medium term expenditure framework period may also contain funds to effect policy priorities identified in subsequent budget processes which may include support for state-owned companies if the need arises.

In the middle of each fiscal year, the adjustments process provides an opportunity to make permissible revisions to the budget, in response to changes that have affected the planned government spending for that year. The adjusted budget may allocate unused funds, mainly from the contingency reserve, declared unspent funds, provisional allocation for contingencies not assigned to votes and projected underspending to offset additions to spending in form of roll-overs, unforeseeable and unavoidable expenditure, self-financing expenditure as well as any announcements made by the Minister of Finance in the budget speech for which allocations are to be made in the adjustments budget and additional amounts that have been approved for particular types of spending, if that be the case.

2. Yes. The following adjustments were tabled for the 2018/19 financial year:

Adjustments to vote appropriations amount to an increase of R12 063.2 million, of which:

  • unforeseeable and unavoidable expenditure

R 668.6 million

  • expenditure earmarked in the 2018 Budget speech for future allocation

R 9 687.9 million

  • roll-overs

R 258.0 million

  • self-financing expenditure

R 1 777.5 million

  • declared unspent funds (reductions to vote allocations)

R-328.8 million

Adjustments to estimates of direct charges against the National Revenue Fund amount to R1 372.7 million more than anticipated at the time of the budget, of which:

  • debt-service costs
  • National Revenue Fund payments

R 975.0 million

R 14.9 million

  • skills levy and sector education and training authorities

R 382.8 million

The adjustments to vote appropriations (R12.1 billion increase) and estimates of direct charges (R1.4 billion increase) are offset against the R6 billion provisional allocation for contingencies not assigned to votes and R8 billion contingency reserve set aside in the budget. In addition, the revised budget framework makes provision for approximately R2.7 billion in projected underspending at national government level, and R500 million in the local government repayment to the National Revenue Fund. The total estimated adjustments spending for 2018/19 thus decreases by R3.8 billion, from a budgeted R1 512.2 billion to a revised R1 508.4 billion.

The 2018 Adjusted Estimates of National Expenditure publication can be consulted for further information on each of the above adjustments.

3. (a) Over the 2019 MTEF R27billion has been set aside for the contingency reserve as follows

  • 2019/20: R7 billion
  • 2020/21: R8 billion
  • 2021/22: R12 billion

b) The contingency reserve is part of the main budget fiscal framework

19 December 2018 - NW3692

Profile picture: Mathys, Ms L

Mathys, Ms L to ask the Minister of Higher Education and Training

(a) What number of institutions of technical and vocational education and training colleges have contracts with a certain company (name furnished) and (b) what (i) is the (aa) monetary value and (bb) duration of each contract and (ii) are the relevant details of the goods and services that the specified company provides in each case?

Reply:

This information is being individually sourced from the 50 Technical and Vocational Education and Training (TVET) colleges as they are separate juristic entities and given that colleges will be closing for the festive season, the Department will be able to provide this information on or before 31 January 2019.

19 December 2018 - NW2262

Profile picture: Figg, Mr MJ

Figg, Mr MJ to ask the Minister of Public Works

(a) What is the current amount that is outstanding in terms of rental income for each Ministerial residence, (b) which Ministers are in arrears, (c) what is the (i) location and (ii) description of each residence with outstanding rental income, (d) what is the cost of monthly rental of each of the specified residences and (e) what processes have been followed to collect outstanding debt?

Reply:

(a) The current total amount outstanding in terms of rental income for Ministerial residences is R1 214 064.23.

(b) In our analysis of how the Ministers ended up being in arrears, we found that there were a number of systemic flaws. The building up of arrears is largely not through faults of or negligence by the Ministers. It would therefore be unfair to name which Ministers are in arrears, save to mention that the problem is being addressed with the departments concerned.

(c) (i) and (ii) For security reasons we cannot disclose the location and description of each residence with outstanding rental income.

(d) The monthly rental cost for Ministerial residences ranges between R988.90 and R1 200.82.

(e) The challenge with collecting rental income for Ministerial residences is a systemic one. Once Ministerial residences have been allocated, the Department of Public Works submits the documents indicating the amounts payable monthly to the client departments, whose responsibility it is to action the stop orders from Ministers and Deputy Ministers’ monthly income. Despite numerous reminders some departments fail to action the stop orders leading to escalating debt. In the past I have engaged with Members of the Executive on the debt owed to the Department of Public Works and this was done with relative success. However, the challenge persists. Ministers are always willing to cooperate in terms of paying their monthly rentals. The challenge that we must resolve is a systemic one to ensure that the monthly rentals are collected without fail on an on-going basis.

19 December 2018 - NW644

Profile picture: Bara, Mr M R

Bara, Mr M R to ask the Minister of Finance

With reference to the Minister of Transport’s reply to question 3537 on 23 November 2017, what (a) progress has the National Treasury made with regard to each investigation into irregular and unauthorised expenditure by the Passenger Rail Agency of South Africa, as instructed in the Public Protector’s report titled Derailed and (b) are the total costs to date in this regard?

Reply:

a)  National Treasury submitted the draft reports to PRASA on 25 April 2017. The PRASA Board requested time to consider the reports until 31 October 2017. The National Treasury was informed that PRASA had discovered additional documentation that must also be subjected to investigation. However, feedback is still awaited from PRASA on the draft reports that were submitted during April 2017.

b)  The total amount spent on the 13 companies was R24 174 529.

19 December 2018 - NW3062

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

(1)Whether the SA Revenue Service (Sars) conducted any due diligence investigations to check the qualifications of a certain person (name furnished) prior to appointing the specified person to the specified position; if not, why was due diligence not conducted; if so, (2) whether Sars found any inaccuracies; if so, what (a) are the relevant details and (b) action was taken to correct the person’s qualifications for the specified position?

Reply:

1. A certain person (name furnished) was recruited through the utilization of services of an employment agency; she commenced her duties as a Chief Officer - DIST at SARS on May 1, 2017. As per the recruitment policy of SARS in July 2016, prior her appointment a due diligence on her qualifications as indicated on her CV was conducted. A due diligence was conducted on the following qualifications prior her appointment and were Verified:

  1. Diploma in Practical Accounting, Damelin, 1996
  2. Diploma in Bookkeeping, Damelin, 1996
  3. Diploma in Business Organization & Management, Damelin, 1997
  4. Diploma in Personnel Training and Management, Damelin, 1997
  5. Masters of Business Administration, University of North West, 2004

A due diligence was not conducted on the following foreign qualifications prior her appointment:

6. General Certificate of Education. University of Cambridge, 1985

7. Diploma in Information Technology, Square one, Data processing College, 1987.

SARS places responsibility for verification of Foreign Qualifications on the applicant through the South African Qualifications Authority and employment is conditional to these verifications.

2. Whether SARS found any inaccuracies; if so, what (a) are the relevant details and (b) action was taken to correct the person’s qualifications for the specified position?

  • The General Certificate of Education issued by the University of Cambridge has been evaluated to be equivalent to NQF level 3 Intermediate Certificate by the South African Qualifications Authority. For ease of understanding the NQF level 3 Intermediate Certificate is equivalent to Grade 11 in the South African context. (Reference, SAQA National Qualifications Framework).
  • With regards to the Diploma in Information Technology issued by Square one, Data processing College, the employee has not provided SARS with an evaluation result by SAQA of this qualification.
  • The matter of the Employee’s qualifications has not yet been concluded as the employee is currently on an extended sick leave.

__

19 December 2018 - NW3407

Profile picture: Robertson, Mr K

Robertson, Mr K to ask the Mr K P Robertson (DA) asked the Minister of Public Works:

(1) What are the details of (a) his department’s programme to release departmental property in the Bloubergstrand area, (b) the title of the property and (c) the size of the property; (2) whether the release of the property is for the purposes of restitution claims; if not, what is the position in this regard; if so, what are the relevant details; (3) whether his department has other properties that are designated to be released for purposes of land reform; if not, what is the position in this regard; if so, (a) what is the name of each property and (b) what number of hectares is each property?

Reply:

(1) (a) The property in the Bloubergstrand area has been requested and earmarked for human settlements by the Housing Development Agency.

(b) The property is an unregistered portion of Erf 268, Blaauwbergstrand, known as Erf 1117, Blaauwbergstrand. Erf 268 and Erf 1117 share the title deed number: T1606/1953.1117

(c) The property measures 277.6009 Hectares in extent.

(2) No, the property is not required for restitution purposes. As indicated in (1) above, the property has been requested by the Housing Development Agency for human settlement purposes.

(3) Yes, the Department of Public Works has got other properties designated to be released for purposes of land reform.

(a) and (b) See attached hereto the list (Annexure A) with names of each property and extent.

18 December 2018 - NW3071

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

Whether an illicit economy unit has been and/or will be established in the SA Revenue Service; if not, why not; if so, what are the relevant details?

Reply:

The re-establishment of the Illicit Economy unit (IEU) at SARS is currently in progress and will be implemented in two phases. The 1st phase will be an interim IEU solution, which is scheduled to be functional by November 2018.

This two pronged approach to establish the specialized enforcement capability and capacity is being pursued, first an interim capacity and capability to immediately respond to the current illicit economic activities, and second, developing and implementing the organisational design to build the full functioning IEU of the future. Given the current limited capability and capacity, the focus of the Interim IEU relate to organised tax, Customs and Excise evasion schemes inter-alia in the following industries: Tobacco, Cash and Carry, Textiles, Alcohol and Fuel.  In addition, abusive practices such as advanced import payments and currency smuggling, phoenixism, abusive liquidation and business rescue practices and Syndicated refund fraud, including organised VAT fraud such as carousel structures will also be addressed as per the IEU mandate.

Currently SARS have identified 58 potential cases that fall within the illicit IEU mandate.  A new conceptual design and interim structure for the illicit economy Unit has been developed and approved.

The 2nd phase will involve the compete operationalisation of the IEU. The anticipated completion of the 2nd phase will be June 2019."

18 December 2018 - NW3164

Profile picture: McLoughlin, Mr AR

McLoughlin, Mr AR to ask the Minister of Finance

(1)In view of China’s recent moves to reintroduce a gold standard for the Chinese Yuan, are the BRICS countries, such as South Africa, being encouraged to do likewise; if so, what is South Africa’s position on such a move; (2) what benefit has South Africa derived from being a partner in the New Development Bank so far?

Reply:

1. China has not reintroduced a gold standard for the Chinese Yuan. This issue has not been discussed under the auspices of the BRICS Finance Ministers and Central Bank Governors’ meetings.

2. The New Development Bank has already approved US$680 million in project financing for South Africa. In addition, the NDB employs 18 South African professionals both at the Africa Regional Centre (Sandown, South Africa) and at the bank’s headquarters (Shanghai, China).

18 December 2018 - NW3424

Profile picture: Chance, Mr R

Chance, Mr R to ask the Minister of Finance

(1)What steps has the National Treasury taken to ensure that (a) government departments and (b) government entities pay their suppliers on time; (2) whether a certain person (details furnished) issued directives instructing (a) departments and (b) entities to pay suppliers timeously; if not, why not; if so, (i) by what date and (ii) to which departments and institutions were the directives issued; (3) whether accounting officers of government departments faced (a) criminal and/or (b) disciplinary actions against them related to the late payments of suppliers (i) in the (aa) 2016-17 and/or (bb) 2017-18 financial years and/or (ii) since 1 April 2018; if not, why not; if so, what are the relevant details in each case?

Reply:

1. In terms of section 38(1)(a)(f) of the PFMA, the accounting officer of a department, trading entity of constitutional institution must settle all contractual obligations and pay all money owing including intergovernmental claims within the prescribed or agreed period.

Treasury Regulation 8.2.3 also requires accounting officers of departments to settle all payments due to creditors within 30 days from receipt of an invoice, unless determined otherwise in a contract or other agreement.

To this end, National Treasury issued SCM Instruction Note 5 of 2016/17 to address outstanding payments due to suppliers/creditors exceeding 30 days after submission of valid invoices for all PFMA complying institutions.

In terms of section 65(2)(e) of the MFMA, the accounting officer must take all reasonable steps to ensure that all money owing by the municipality be paid within 30 days of receiving the relevant invoice or statement unless prescribed otherwise for certain categories of expenditure. To effect this provision, National Treasury issued MFMA Circular 49 of 2009 applicable to all municipalities.

National Treasury continues to support Department of Monitoring, Planning and Evaluation (DPME) in monitoring payment of suppliers.

2. (a) Yes

    (b) Yes

(b)(i) 26 March 2018

(b)(ii) departments, constitutional institutions, public entities, municipalities and municipal entities.

3. (a) We do not have this information.

(b) We do not have this information.

(i) (aa) We do not have this information.

(i) (bb) We do not have this information.

(ii) We do not have this information. The DPME is responsible for coordination of this information.

 

18 December 2018 - NW3273

Profile picture: Khawula, Ms MS

Khawula, Ms MS to ask the Minister of Water and Sanitation

Whether (a) his department and/or (b) entities reporting to him awarded any contracts and/or tenders to certain companies (names and details furnished) from 1 January 2009 up to the latest specified date for which information is available; if so, in each case, (i) what service was provided, (ii) what was the (aa) value and (bb) length of the tender and/or contract, (iii) who approved the tender and/or contract and (iv) was the tender and/or contract in line with all National Treasury and departmental procurement guidelines?

Reply:

Refer to the table below:

The Department

None

The Entities

Amatola Water

None

 

Bloem Water

None

 

Lepelle Northern Water

None

 

Magalies Water

None

 

Mhlathuze Water

None

 

Overberg Water

None

 

Sedibeng Water

None

 

Umgeni Water

None

 

Trans Caledon Tunnel Authority (TCTA)

None

 

Rand Water

Yes, Refer below for the response

 

Water Research Commission (WRC)

Yes, Refer below for the response

 

Rand Water:

Rand Water awarded work to 1 of the 13 companies provided in the list, namely Vox Telecommunications. The work was awarded from 07 March 2013 up to 26 July 2018. The awards were made in accordance with the applicable SCM practices.

-2-

The table below provides the details required for (i) to (iv):

Doc. Date

Purch.Doc.

Description

Net Value

Duration

Approver

26.07.2018

4500205144

Request for Room Booking Panel

156,113.66

Once-off

Supply Chain

19.06.2018

4500204614

Off Premise Contact Centre 201805

278,650.74

6 months

Supply Chain

30.04.2018

4500203783

Email Filtering & Security Services

431,728.00

10 months

Supply Chain

10.04.2018

4500203488

Supply & Delivery of Internet Service

335,738.73

10 months

Supply Chain

31.01.2018

4500202608

Internet service for 3 months

438,129.63

3 months

Supply Chain

30.01.2018

4500202579

Internet service

400,000.00

Once-off

Supply Chain

01.11.2017

4500201570

Internet Services for 3 months

437,481.57

3 months

Supply Chain

20.10.2017

4500201336

Call Centre Systems 6 months

430,701.12

6 months

Supply Chain

26.07.2017

4500199366

Internet Services for a period of three months

306,473.46

3 months

Supply Chain

31.05.2017

4500197701

Off Premise Contact Centre for WOL 6mnth

400,080.05

6 months

Supply Chain

29.06.2016

4500184884

WOL-Installation& Configuration Contact c

486,651.78

 

Supply Chain

12.05.2015

4500164350

Vox tender cost routing

2,151,160.88

24 months

BAC

14.04.2015

4500163033

Cost Routing Service

149,658.72

6 months

Supply Chain

17.03.2015

4500161587

cost routing telephone

116,823.68

   

25.02.2015

4500160456

Cost routing for telephones

127,285.11

   

09.02.2015

4500159599

Cost routing telephone

127,285.11

   

23.01.2015

4500158801

Cost Routing Telephone

766,743.82

Once-off

BAC

06.03.2014

4500143226

RFP00237/13A Internet service 3yrs

5,196,449.72

36 months

BAC

19.06.2013

4500131227

Audio / Video Conferencing

204,949.20

Once-off

Supply Chain

07.03.2013

4500126223

Cost routing telephones

2,996,290.64

24 moths

BAC

TOTAL

15,938,395.62

   

Water Research Commission (WRC)

b) Water Research Commission

(i) Provision of Cloud Hosting Services to the Water Research Commission (WRC) for a period of twelve (12) months

(ii) (aa) The Contract value amounted to R 493 085.50 (Inclusive of Vat)

(bb) Contract period of twelve (12) months, Contract award date: 10 September 2018

(iii) The contract was evaluated by the Bid Evaluation Committee and approved by the Bid Adjudication Committee in line with their approval delegation

(iv) The approved tender and contract award processes followed was in line with all National Treasury and the WRC procurement policies and procedures.

The contract awarded to Vox Telecommunications (Pty) Ltd (Company registration number: 2011/000797/07) was cancelled on the 22 November 2018 due to the company failing to commence with the contract as per the agreed contract terms and conditions. The contract start date was 01 October 2018, the company failed to commence on that date and the start date was extended to 01 November 2018 and was unable to migrate the WRC data and thus again failed to commence with delivering the contracted services. The company provided the technical reasons why they were unable to provide the services and estimated that the data transfer would take three months this was not acceptable to the WRC. The WRC then served VOX Telecommunications (Pty) Ltd with a contract termination letter on the 22 November 2018, which they accepted and agreed to reimburse the WRC an amount of R 7 509.23 which incurred as a result of the delays during the month of November 2018.

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18 December 2018 - NW3857

Profile picture: Motau, Mr SC

Motau, Mr SC to ask the Minister of State Security

1. Whether (a) her department and/or (b) any entity reporting to her contracted the services of a certain company (name and details furnished), in each of the past 10 financial years; if so, what (i) number of contracts were signed, (ii) was the date on which each contract was signed, (iii) was the duration of each contract, (iv) services did the company render and (v) was the monetary value of each contract in each case; 2. Whether any irregular expenditure relating to the contracts was recorded and/or condoned in each case; if so, what are the relevant details?

Reply:

1. For the exclusive knowledge of the State Security Minister and Deputy, the State Security Agency (SSA) has never contracted the services of Bosasa or African Global Operations, as it is know now.

2. Not applicable (N/A)

18 December 2018 - NW3338

Profile picture: Wessels, Mr W

Wessels, Mr W to ask the Minister of Finance

(1)What is the (a) percentage of tax returns of (i) private individuals and (ii) businesses that are selected for auditing annually and (b) average turnaround time of such audits; (2) what is the (a) turnaround time for paying amounts that are due to (i) private individuals and (ii) businesses and (b) total amount that is still due as at the latest date for which information is available; (3) whether he will make a statement on the matter?

Reply:

(1)

The percentage of tax returns that are selected for audit and the associated turnaround time of these audits are shown in the following tables: Commissioner please note that this point relates specific to cases that are routed for audit. You will see

For the current financial year (2018/19) to date 31 October 2018:

Tax Type

Taxpayer

Returns Received

Returns Selected for Audit

(a)

%Audits

(b)

avg. TAT for Audit(W Days)

Income Tax

i) Companies

650,051

42,416

6.5%

45d

 

ii) Individuals

5,678,840

1,476,677

26.0%

28d

 

Trusts

95,408

19,715

20.7%

30d

VAT

(i & ii)

2,151,221

270,670

12.6%

42d

For the previous financial year (2017/18) to date 31 March 2018:

Tax Type

Taxpayer

Returns Received

Returns Selected for Audit

(a)

%Audits

(b)

avg. TAT for Audit(W Days)

Income Tax

i) Companies

1,003,930

49,808

5.0%

69d

 

ii) Individuals

6,474,838

1,594,302

24.6%

44d

 

Trusts

168,081

43,206

25.7%

52d

VAT

(i & ii)

3,435,900

257,949

7.5%

44d

(2)

a) The turnaround times for refunds to taxpayers are shown in the following tables: This table includes non-audited cases hence the TAT is lower. It does however show audit as the bottleneck. You can give a view on planned work, reducing audit alerts, where possible delinking audit from refund process.

For the current financial year (2018/19) to date 31 October 2018:

Tax Type

Taxpayer

Number of Refunds Paid

Value of Refunds Paid

avg. TAT for Refund (W Days)

Income Tax

i) Companies

31,431

-11,656,141,104

14d

 

ii) Individuals

2,111,140

-19,891,039,717

10d

VAT

(i & ii)

282,751

-122,105,382,787

29d

For the previous financial year (2017/18) to date 31 March 2018:

TaxType

TaxPayer

Number of Refunds Paid

Value of Refunds Paid

avg. TAT for Refund (W Days)

Income Tax

i) Companies

55,993

-13,587,950,231

16d

 

ii) Individuals

2,693,371

-26,801,336,863

13d

VAT

(i & ii)

401,475

-191,070,644,045

23d

(b)

The SARS Credit Book for the applicable tax types as on 11 November 2018: It is important to note that the spike in 2018/19 PIT credit book is mainly as a result of the fact that filing season has just concluded and we are not comparing the same period. The increase in VAT credit book is as a result of the absolute 1% (7% relative terms) increase. With the increased VAT refund allocation of R20bn this will assist in reducing the VAT credit book.

Tax Type

Taxpayer

Credit Book at 11Nov'18

Income Tax

i) Companies

-16,267,274,457

 

ii) Individuals

-11,796,073,880

VAT

(i & ii)

-36,092,087,307

The SARS Credit Book for the applicable tax types as at the end of the previous Financial year on 31 March 2018: This view is as at the 31 March 2018 and specifically on PIT there are no further influx of returns for this year (previous table) hence between now and then the book will reduce.

Tax Type

Taxpayer

Credit Book at 31Mar'18

Income Tax

i) Companies

-21,162,573,909

 

ii) Individuals

-7,605,166,381

VAT

(i & ii)

-30,385,217,532

18 December 2018 - NW3188

Profile picture: Mileham, Mr K

Mileham, Mr K to ask the Minister of Finance

(1)What is the current financial status of the Maruleng Local Municipality in Limpopo with regard to (a) debtors days, (b) collection rates and (c) creditor days; (2) what (a) total amount does the specified municipality currently owe to (i) Eskom and (ii) its bulk water supplier and (b) is the detailed breakdown of the amounts owed in each case in terms of (i) 30 days and (ii) more than 90 days; (3) whether he has found that the billing system used by the specified municipality is functional and provides residents with accurate billing on a monthly basis; if not, why not; if so, what are the relevant details?

Reply:

The following information has been reported in the monthly section 71 report for the quarter ended 30 June 2018. This information was verified and signed on by the Municipal Manager and Chief Financial Officer of the Maruleng Local Municipality:

(1)(a) Debtors

  • The Debtors Age analysis shows the municipality is owed an amount of R82.7 million by customers (households, business and government); of which 81.6 per cent or R67 million is due for over 90 days.

(1)(b) Collection Rates

  • The Municipality reported a Collection Rate of 74.7 per cent against billed revenue of R75.1 million for the 2017/18 financial year. The billed revenue comprises of property rates being levied on ratable properties and service charges for provision of waste management service (refuse removal).

(1)(c) Creditors

  • The municipality owes suppliers and contractors a total of R223 thousands; of which R203 thousands or 91.2 per cent is due by the municipality within 30 days.

(2)(a)(i)(ii) (2)(b)(i)(ii)

  • The municipality is not an Electricity Licensee and only accounts for own electricity consumption, therefore it does not owe money for bulk supplier (ESKOM and Lepelle Northern Water)

(3) The billing system used by the municipality is functional and residents are billed accurately for property rates and waste refuse removal

18 December 2018 - NW3087

Profile picture: Basson, Mr LJ

Basson, Mr LJ to ask the Minister of Water and Sanitation

(1)Whether a certain person (name and details furnished) was placed on suspension because the specified person refused to allow other projects of his department to access the R12 billion fund of the unit of the specified person; if not, why was the specified person placed on suspension; if so, (2) whether he supports the suspension of the specified person based on the specified person’s refusal to allow other departmental projects to misappropriate funds from the specified person’s unit; if not, what is the position in this regard; if so, what are the relevant details; (3) whether he has taken any steps to prevent the units of his department from misappropriating funds from each other; if not, why not; if so, what are the relevant details?

Reply:

1. No.

2. Falls away.

3. Yes, compliance with the PFMA is encouraged by the Accounting Officer.

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18 December 2018 - NW3734

Profile picture: Rawula, Mr T

Rawula, Mr T to ask the Minister of Finance

(1)Whether the Public Affairs Research Institute (PARI) was awarded any contracts that a certain person (name furnished) was involved in as a government official; if not, what is the position in this regard; if so, (a) on what date was the tender awarded, (b) what is the total number of bidders who submitted bids, (c) what was the bidding price of each bidder and (d) what was the bidding price of the PARI; (2) whether the specified person declared her relationship with the PARI when each contract was awarded; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

1. PARI was awarded a contract to complete an Expenditure and Performance review of the duplication of language services in Pan South Africa Language Board (PanSALB), Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities (CRL) and The Language Services in the Department of Arts and Culture.

a) The tender was awarded on 7 October 2013 by a panel of five officials, of which a certain person (name furnished) was part.

b) The tender was a composite tender across a number of sectoral topics and 47 bids were received. For the topic of language services duplication, PARI was the only bidder.

c) PARI was the only bidder and their bid price was R548 700.

d) PARI’s bid price was R548 700.

2. A certain person (name furnished) did not have a relationship with PARI at the time of the awarding of the contract. Three years after this body of consulting work was completed, she became a Research Fellow at PARI in May 2017. Apart from the Expenditure and Performance Review on language services duplication, she has had no involvement in any other work between PARI and GTAC.

18 December 2018 - NW3061

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

(1)Whether a certain official of the SA Revenue Services (Sars) was authorised to participate in an interview with the SA Broadcasting Corporation on 17 October 2018; if so, who authorised the specified person to participate in the specified interview; (2) whether the statements made by the person during the interview were authorised by the Commissioner of Sars; if not, what is the position in this regard; if so, what are the relevant details; (3) whether the statements made by the person during the interview are an accurate reflection of the status of the information technology (IT) systems at Sars; if not, (a) why are they not accurate and (b) what is the real status of Sars’ IT systems; (4) whether any disciplinary action has been instituted against the specified person due to the statements made during the interview; if not, why not; if so, what are the relevant details?

Reply:

1. The certain official was duly authorised by the Acting Commissioner of SARS to participate in the said interview. Aside from the Commissioner, Chief Officers comprise the top rung of SARS leadership. Historically, when the appointed Commissioner is unavailable, a Chief Officer is appointed to act as the Commissioner. A Chief Officer is expected to represent SARS at the highest levels, including at international events and in interviews with the media particularly when the subject matter falls within the Chief Officer’s mandate. The authority given by the Acting Commissioner was based on the understanding that a SARS Chief Officer and member of EXCO should be competent and able to fully address any matter of SARS culture, vision, strategy, policy and operations that arises in an interview and particularly when the issues relate to his/her portfolio of accountability.

2. Statements made by the SARS official during the interview were not authorised by the Commissioner of SARS in any event there are no means of ensuring that representations by SARS executives are approved by the Commissioner prior to any interview as interviews in their very nature are dynamic and not preemptive. Chief Officers of SARS are expected to be able to handle any matter relating to their area of accountability.

(3)(a) The statements made by the person during the interview did not describe the state of SARS IT and what is required to enhance the IT systems.

3(b) Although SARS IT systems are ageing and require continuous maintenance, they are currently stable, operative and serving our clients well. The SARS technical IT teams have the necessary skills to ensure we modernize our systems and SARS is committed to providing the required resources to enable us to eventually have the ideal technology offering. SARS is on record on the need to refresh its ageing ICT infrastructure and plans in this regard are underway.

(4) The contents of the interview have impacted on SARS and the issue of disciplinary proceedings is being considered. The most appropriate steps will be taken once a preliminary opinion has been formulated and formal discussions have taken place.

18 December 2018 - NW3861

Profile picture: Mhlongo, Mr TW

Mhlongo, Mr TW to ask the Minister of Water and Sanitation

(1)Whether (a) his department and/or (b) any entity reporting to him contracted the services of a certain company (name and details furnished), in each of the past 10 financial years; if so, what (i) number of contracts were signed, (ii) was the date on which each contract was signed, (iii) was the duration of each contract, (iv) services did the company render and (v) was the monetary value of each contract in each case; (2) whether any irregular expenditure relating to the contracts was recorded and/or condoned in each case; if so, what are the relevant details?

Reply:

(1)(a) No.

(1)(b) No.

(2) Falls away.

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18 December 2018 - NW3058

Profile picture: McLoughlin, Mr AR

McLoughlin, Mr AR to ask the Minister of Finance

(1)With reference to the Auditor-General’s latest Annual Report, how does the National Treasury intend to cover the budgetary shortfall that will be created by the proposed writing off of R58 million in unpaid audit fees; (2) does the National Treasury intend to obtain a refund of the sum of R150 million assistance to be provided to the Auditor-General (AG), from those municipalities who have failed to settle their audit accounts and which have caused the need for such assistance to be given to the AG; (3) whether he intends to set up some form of mediation committee to attempt to find resolutions in the cases where disputes arise between the AG and his auditees to prevent the unacceptable situation that ensues when two government departments or entities employ the services of private legal practitioners to argue their respective cases before the courts of the country, such as recently happened between the SA Revenue Service and the AG and the Department of Water and Sanitation and the AG; (4) (a) what has so far been the total cost to the AG’s office for all legal fees and disbursements relating to litigation conducted by auditees against the AG in each of the past five financial years and (b) to which firms of attorneys were these costs paid; (5) (a) on what legislative basis did he rely to settle the accounts of municipalities who owe the AG’s office unpaid audit fees and (b) does he intend to now also pay other debts owed by municipalities to other debtors from the National Revenue Fund?

Reply:

1. The Auditor-General (AGSA) accepted the National Treasury’s offer for a full and final settlement of the accumulated outstanding fees in terms of section 23(6) of the Public Audit Act (PAA), Act no.25 of 2004, as at 2017/18. The AGSA does not receive direct funding from the National Treasury and as such, the National Treasury will not cover any budgetary shortfall arising from the write-off of unpaid audit fees.

2. In terms of section 23(6) of PAA, if the audit fee exceeds one percent of the total current and capital expenditure of such an auditee for the financial year, such excess must be defrayed from the National Treasury’s vote, provided that, the National Treasury is of the view that the auditee has financial difficulty to settle the cost. This excludes national and provincial departments. Therefore, based on these provisions PAA above, the National Treasury does not intend obtaining a refund for the R150 million assistance given to the AGSA on behalf of the municipalities.

3. The National Treasury (NT) and AGSA has well documented dispute resolution mechanisms in place to deal with technical and accounting cases where an entity disagrees with an audit finding of the AGSA. A situation that is occurring more frequently is where the AG and NT agrees on a case, but the auditee refuses to accept the final resolution and continues to challenge both the final opinion of AGSA and NT. The NT agrees that in most cases, state funds should not be used to litigate against the audit opinions of the AGSA, as these cases can be solved in the normal process.

4. The National Treasury does not have the information available, these costs and legal firms used must be obtained from the individual departments and public entities that have pursued the legal action.

5. The National Treasury has since the effective date of the approval of the Public Audit Act, Act No. 25 of 2004 (PAA), been assisting with the payment of audit fees of applicable entities and municipalities that, based on the view of National Treasury, are in financial difficulty. These payments are done in accordance with section 23(6) of the PAA, and are only done for audit fees that exceeds one percent of the total current and capital expenditure of auditees in financial distress. It must be mentioned that National Treasury has a specific amount appropriated in the budget for settling audit fees of struggling entities. Unfortunately, the budgeted amount is not always adequate to cover all the amounts owed to the AGSA. For this reason, the National Treasury has put forward measures to improve the payment of outstanding audit fees for auditees in financial distress in the amendments to the Public Audit Act.

18 December 2018 - NW3513

Profile picture: Wessels, Mr W

Wessels, Mr W to ask the Minister of Water and Sanitation

(1)What are the current water levels of the dams that supply water to the Mangaung Metropolitan Municipality; (2) how many litres of water were lost during the 2017-18 financial year in the specified municipality as a result of leakages, (3) whether he has found that the levels at the specified dams justify changing the current water restriction level; if not, why not; if so, what are the relevant details; (4) whether he will make a statement on the matter?

Reply:

(1) Refer to Annexure A for the current water levels of the dams that supply water to the Mangaung Metropolitan Municipality.

(2) The Mangaung Metropolitan Municipality has lost 13 334 248 000 litres of water during the 2017-18 financial year as a result of leakages.

(3) The Caledon-Modder Water Supply System that supply water for the Mangaung Metropolitan Municipality experienced significant drought conditions from around 2015 until 2017 seasons. Although the situation has improved a bit, drought conditions are still lingering into this 2018 season.  Hence, some good inflows came into the dams of the system, easing the critical state of total dams’ storage from about 44% in May 2017 to about 57% in May 2018. May is the decision month for the system. Therefore, following the 2018 Annual Operating Analysis, the new system storage level justified changing water restrictions from 20% to 15% level.

(4) The Department held a Stakeholders Operation Forum (SOF) meeting, which involve water users from the system, in Mangaung on 4 October 2018, where results of the annual operation analysis, including the new restriction levels, were presented. Publication of a gazette notice for the new restriction levels is being processed.

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18 December 2018 - NW3753

Profile picture: Waters, Mr M

Waters, Mr M to ask the Minister of Water and Sanitation

(1)      (a) How often does her department conduct inspection visits to sewerage processing plants throughout the country, (b) what are the dates of the latest inspections at each sewerage plant, (c) which plants failed to meet minimum standards and (d) what action was taken in each regard; (2) whether she has been informed of the allegation that 50 000 litres of sewerage flows into our rivers every day (details furnished); if not, what is the position in this regard; if so, (a) what action is her department taking in this regard and (b) which municipalities are the biggest culprits in this regard?

Reply:

(1)(a) The Department prioritizes sewerage plants that were found to be critical in terms of their operation and monitors them quarterly.

(1)(b) The latest inspections were done in the previous quarter.

(1)(c) Refer to Annexure A for the list of plants that failed to meet the minimum standards in the last quarter (July-September 2018).

(1)(d) Refer to Annexure B for the Non-Compliance letter issued by Northern Cape Provincial operations for Siyathemba LM associated with the following WWTW refer to:

  • Prieska WWTW
  • Marydale WWTW
  • Niekerkshoop WWTW

 

2. The Department is aware of these media reports; and, is dealing with this non-compliance through routine inspections of these wastewater treatment works and through administrative action where non-compliance occurs.

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Annexure A

List of Plants which failed to meet the minimum standards in the last quarter (July-September 2018):

  • Tugela Ferry WWTW
  • Rosendaal (Mautse)WWTW
  • Winburg WWTW
  • Steynsrus WWTW
  • Wesselsbron WWTW
  • Heilbron WWTW
  • Ekangala WWTW
  • Rooiwal East WWTW
  • Rooiwal North WWTw
  • Flip Human WWTW
  • Zongesien WWTW
  • Senwamokgope WWTw
  • Elandskraal WWTW
  • Groblersdal WWTW
  • Jane Furse WWTW
  • Moroke Mecklenberg WWTW
  • Motetema WWTW
  • Tubatse WWTW
  • Musina Singelela WWTW
  • Thohoyandou WWTW
  • Balfour WWTW
  • Grootvlei Eskom WWTW
  • Grootvlei Mine WWTW
  • Siyabuswa WWTW
  • Ferrobank WWTW
  • Riverview WWTW
  • Kriel WWTW
  • Ruitspruit WWTW
  • Delmas WWTW
  • Botleng WWTW
  • Waterval Boven WWTW
  • Belfast WWTW
  • Kwazamokuhle WWTW
  • Blinkpan WWTW
  • Brits WWTW
  • Lethlabile WWTW
  • Delareyville WWTW
  • Atamelang WWTW
  • Wolmaranstad WWTW
  • Leeudoringstad WWTW
  • Rulaganyang WWTW
  • Warrenton WWTW
  • Jankempsdorp WWTW
  • Douglas WWTW
  • Griekwastad WWTW
  • Hopetown New WWTW

18 December 2018 - NW3925

Profile picture: Groenewald, Mr PJ

Groenewald, Mr PJ to ask the Minister of State Security

1. Whether a certain person (name furnished) worked at the State Security Agency (SSA) at any stage since 1 January 1994; if so, during which duration; 2. Whether the specified person instituted any claims against the SSA; if so, what are the relevant details of the claims; 3. Whether she intends to pay these claims; if no, why not; if so, by which date; 4. Whether she will make a statement on the matter?

Reply:

Information relating to members of the State Security Agency (SSA) forms part of the broader operational framework of the SSA and therefore remains classified and privileged.

It should however be observed that the SSA is held accountable on such matters by the Joint Standing Committee on Intelligence (JSCI) and the Inspector-General.

18 December 2018 - NW3476

Profile picture: Johnson, Mr M

Johnson, Mr M to ask the Minister of Water and Sanitation

Despite the many challenges confronting his department, what are the details of the achievements of his department since 27 April 1994?

Reply:

The Department is in the process of compiling the summary of all the Annual Reports since 1994/1995 to date, where the challenges and achievements are outlined. As soon as this information is ready the information will be made available.

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18 December 2018 - NW3382

Profile picture: Mulaudzi, Mr TE

Mulaudzi, Mr TE to ask the Minister of Finance

Whether taxpayer and SA Revenue Service information were shared by certain SA Revenue Service officials (names furnished) with certain persons (names furnished) during the period 1 January 1999 up to 31 December 2009; if not, what is the position in this regard; if so, who authorised it?

Reply:

I have consulted with the Acting Commissioner of SARS who informs me that:

  • The sharing of such taxpayer information would have been a breach of the then provisions of the Income Tax Act (and other legislation administered by the Commissioner) relating to secrecy; and
  • Every SARS employee at the time was, and still is, required to take an oath or affirmation of secrecy in respect of all SARS and taxpayer information.

He has no evidence indicating that any such information was shared by the said SARS Officials with the said persons in that period.

18 December 2018 - NW3483

Profile picture: Khawula, Ms MS

Khawula, Ms MS to ask the Minister of Finance

(1)Whether an intelligence unit was established at the SA Revenue Service (SARS) at any time during the period 1 January 1999 up to 31 December 2009; if not, what is the position in this regard; if so, (a) on what legal basis or provisions did the SARS rely for the establishment of this unit, (b) was the establishment of this unit approved by the then Commissioner of the SARS and (c) was intelligence equipment purchased for the intelligence unit; (2) were procurement laws and regulations followed in the purchasing of intelligence equipment for the intelligence unit; if so, (a) was the purchase of such equipment approved by the then Commissioner of the SARS and (b) what are the further relevant details?

Reply:

1. Around 2007 SARS established a unit that provided support to tax and customs investigations of the illicit economy and organized crime. At various times the unit was called the Special Projects Unit, National Resource Group and the High Risk Investigation Unit.

The formation and functioning of the unit has been considered and commented on by the Sikhakhane Panel, KPMG and the SARS Advisory Board. On 28 September 2018 retired Judge Kroon testified before the Commission of Inquiry, headed by retired Judge Nugent, that the establishment of such a unit was not unlawful.

2. SARS is not aware of any equipment procured by the unit that did not comply with the procurement policy.

18 December 2018 - NW3038

Profile picture: Mileham, Mr K

Mileham, Mr K to ask the Minister of Finance

(1)        Whether KPMG was involved in auditing any (a)(i) national and (ii) provincial departments and (b) state-owned entities in the past three financial years; if so, in each case, (i) which (aa) department and (bb) entity did the specified company audit, (ii) what are the details of the audit outcomes and findings and (iii) what amount was paid to the audit company for the auditing services rendered; (2) whether there were any incidents where the specified audit outcomes were found to have been (a) falsified, (b) misleading and/or (c) irregular in any way; if so, what are the relevant details in each case?

Reply:

1. (a) (i) and (ii) The audit of National and Provincial departments are done by the office of the Auditor General (AGSA), therefore this question should be referred to the AGSA.

(b) State-owned entities appoints their auditors in concurrence with Auditor General for final approval, through their boards or accounting authorities, therefore the information should be requested from the Auditor-General

2. The response on the incidents of the audit outcome should be requested from the Office of the Auditor General for all national, provincial departments and for the State-Owned entity.

18 December 2018 - NW3642

Profile picture: Mkhaliphi, Ms HO

Mkhaliphi, Ms HO to ask the Minister of Finance

What (a) number of chief directors are in the employment of the National Treasury and (b) is the (i) name, (ii) gender, (iii) race, (iv) experience in years, (v) salary level of each chief director and (vi) in which division is each chief director employed?

Reply:

a) 55 Chief Directors are in the employment of the National Treasury.

b) See below: (i) names furnished to the Member.

DIVISION (vi)

GENDER (ii)

RACE (iii)

EXPERIENCE IN YEARS (iv)

SALARY LEVEL (v)

     

TENURE IN GOVERNMENT (YEARS)

TENURE IN CD POST (YEARS)

OTHER NON- GOVERNMENT (FOR LESS THAN 5 YEARS’ CASES)

 

Office of the Director-General

MALE

COLOURED

19

14

 

14

 

FEMALE

AFRICAN

16

10

 

15

 

FEMALE

WHITE

24

13

 

15

 

MALE

AFRICAN

7

4

5

14

 

MALE

AFRICAN

16

5

 

14

Asset & Liability Management

FEMALE

AFRICAN

0

0

6

14

 

FEMALE

AFRICAN

8

3

 

14

 

MALE

WHITE

44

16

 

14

 

MALE

AFRICAN

27

0

 

14

 

MALE

INDIAN

17

0

 

14

 

FEMALE

WHITE

11

9

 

14

Budget Office

FEMALE

WHITE

11

0

 

14

 

FEMALE

AFRICAN

18

4

 

14

 

MALE

INDIAN

14

9

 

14

 

MALE

WHITE

12

3

 

14

 

MALE

INDIAN

15

11

 

14

 

MALE

AFRICAN

15

7

 

14

Public

Finance

MALE

AFRICAN

12

3

 

14

 

MALE

WHITE

10

4

 

14

 

FEMALE

COLOURED

9

9

 

14

 

FEMALE

COLOURED

16

16

 

14

 

MALE

WHITE

26

8

 

14

 

FEMALE

COLOURED

12

2

 

14

Economic Policy

MALE

WHITE

21

16

 

15

 

MALE

COLOURED

5

1

7

14

 

FEMALE

WHITE

8

4

 

14

Intergov Relations

FEMALE

WHITE

31

9

 

14

 

FEMALE

AFRICAN

17

2

 

14

 

MALE

AFRICAN

11

6

 

14

 

MALE

AFRICAN

1

1

12

14

 

MALE

WHITE

28

16

 

14

Tax & Financial Sector Policy

MALE

INDIAN

9

9

 

15

 

FEMALE

AFRICAN

0

0

13

14

 

MALE

WHITE

9

6

 

14

 

FEMALE

AFRICAN

4

4

8

15

International & Regional Economic Policy (IREP)

FEMALE

WHITE

13

6

 

14

 

FEMALE

AFRICAN

17

2

 

14

 

MALE

AFRICAN

16

3

 

14

DIVISION (VI)

GENDER (ii)

RACE (iii)

EXPERIENCE IN YEARS (IV)

SALARY LEVEL (V)

     

TENURE IN GOVERNMENT (YEARS)

TENURE IN CD POST (YEARS)

OTHER NON- GOVERNMENT (FOR LESS THAN 8 YRS CASES)

 

IREP

MALE

COLOURED

21

4

 

14

 

MALE

AFRICAN

4

0

6

14

Chief Procurement Office

MALE

AFRICAN

16

16

 

14

 

FEMALE

WHITE

15

5

 

14

 

FEMALE

AFRICAN

14

2

 

14

 

MALE

AFRICAN

18

5

 

14

Corporate Services

FEMALE

AFRICAN

1

1

11

14

 

FEMALE

AFRICAN

2

2

6

14

 

MALE

AFRICAN

7

2

3

15

 

FEMALE

WHITE

2

2

10

14

Office of the Accountant General

MALE

INDIAN

23

17

 

14

 

FEMALE

WHITE

7

7

 

14

 

MALE

INDIAN

14

14

 

14

 

FEMALE

WHITE

15

11

 

15

 

MALE

INDIAN

35

9

 

14

 

FEMALE

AFRICAN

19

15

 

14

 

MALE

AFRICAN

16

9

 

15

18 December 2018 - NW2969

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

What are the details of the appointment of a certain person (name furnished) in terms of the (a) qualifications required for the position, (b) qualifications that the specified person possesses, (c) process that was followed to attract applicants for the position, (d) applicants who applied for the position and (e) reasons the specified person was appointed to the position?

Reply:

a) An appropriate postgraduate qualification.

b) PhD: Management, Administration and Policy;

Masters in Management, Administration and Policy; and

Bachelor of Social Science.

c) The position for Chairperson of the Financial and Fiscal Commission was advertised in national newspapers during September 2016. The closing date for applications was 7 October 2016.

d) Thirteen applications were received. see the link:

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2969_Applications.pdf

e) The Chairperson of the Financial and Fiscal Commission is appointed by the President together with a member of Cabinet, i.e. in this instance, the Minister of Finance. Prof Plaatjies was recommended by the Minister of Finance prior to his appointment by the President. In addition to his qualifications, Prof Plaatjies has held the following positions:

1.Part-time Commissioner of the Financial and Fiscal Commission;

2.Executive Director: Democracy, Governance and Service at the Human Rights Research Council;

3.Adviser to the Minister for Public Service and Administration;

4. Head of Performance and Evaluation in the Office of the Premier for the Free State Provincial Government;

5. Deputy Director-General at the South African Social Security Agency.

18 December 2018 - NW2968

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

What (a) total number of consent orders did the Independent Regulatory Board for Auditors make in the 2017-18 financial year, (b) number of the specified consent orders were finalised, (c) is the detailed breakdown of the number of orders that were made and finalised against each audit firm and registered auditor, (d) are the details of any fines and penalties imposed on each (i) audit firm and (ii) registered auditor, (e) are the dates in each case and (f) are the details of the transgressions on which the consent orders were issued in each case?

Reply:

IRBA News Edition 38 – April - June 2017

 

 

 

 

No Disciplinary Advisory Committee meetings convened in this period.

 

 

 

 

 

IRBA News Edition 39 – July - Sept 2017

 

 

 

 

Consent order

Matter 1 - Audit

Fine of R200 000 with R50 000 suspended for 3 years, R20 000 costs, general publication

Consent order

Matter 2 - Audit

Fine of R200 000 with R50 000 suspended for 3 years, R20 000 costs, general publication

Consent order

Matter 3 - Audit

Fine of R100 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 4 -Audit

Fine of R100 000 with R20 000 suspended for 3 years, no costs, general publication

Consent order

Matter 5 - Audit

Fine of R150 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 6 - Audit

Fine of R100 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 7 - Audit

Fine of R100 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 8 - Audit

Fine of R40 000 with R20 000 suspended for 3 years, no costs, general publication

Consent order

Matter 9 - Audit

Fine of R80 000 with R40 000 suspended for 3 years, no costs, general publication

Consent order

Matter 10 - Audit

Fine of R150 000 with R75 000 suspended for 3 years, no costs, general publication

Consent order

Matter 11 - Audit

Fine of R80 000 with R40 000 suspended for 3 years, no costs, general publication

Consent order

Matter 12 -Audit

Fine of R80 000 with R40 000 suspended for 3 years, no costs, general publication

Consent order

Matter 13 -Audit

Fine of R80 000 with R40 000 suspended for 3 years, no costs, general publication. In addition the imposition of a previously suspended fine of R50,000 relating to a previous matter became payable.

Consent order

Matter 14 - Audit

Fine of R100 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 15 - Audit

Fine of R60 000 with R30 000 suspended for 3 years, no costs, general publication

Consent order

Matter 16 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 17 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 18 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 19 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 20 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 21 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 22 - Companies Act

Fine of R80 000 with R40 000 suspended for 3 years, R5 000 costs, general publication

Consent order

Matter 23- Audit

Fine of R150 000 with R75 000 suspended for 3 years, no costs, general publication

Consent order

Matter 24 - Audit

Fine of R150 000 with R75 000 suspended for 3 years, no costs, general publication

Consent order

Matter 25- Audit

Fine of R150 000 with R75 000 suspended for 3 years, no costs, general publication

Consent order

Matter 26 - Audit

Fine of R150 000 with R75 000 suspended for 3 years, no costs, general publication

Referred to Disciplinary hearing

Matter 27 - Audit

In progress

Referred to Disciplinary hearing

Matter 28 -Tax

In progress

 

 

 

IRBA News Edition 40 – Oct- Dec 2017

 

Consent order

Matter 1- Audit

Fine of R100 000 with R50 000 suspended for 3 years, R25 000 costs, general publication

Consent order

Matter 2-Audit

Fine of R100 0000 with R50 000 suspended for 3 years, R25 000 costs, general publication

Consent order

Matter 3- Audit

Fine of R100 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 4- Audit

Fine of R100 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 5- Tax

Fine of R150 000 with R50 000 suspended for 3 years, no costs, general publication

Consent order

Matter 6 - Audit

Fine of R100 000 with R20 000 suspended for 3 years, no costs, general publication

Consent order

Matter 7 -Audit

Fine of R60 000 with R30 000 suspended for 3 years, no costs, general publication

Referred to Disciplinary hearing

Matter 8 -Audit

In progress

 

 

 

IRBA News Edition 41 – Jan - Mar 2018

 

 

Discharge

Rule 3.5.1.1

3 matters

Discharge

Rule 3.5.1.3

1 matter

Consent order

Matter 1 - Audit

Fine of R180 000 with full amount suspended until re-registration, no costs, general publication

Consent order

Matter 2 - Auditing Profession Act

Fine of R50 000 with R40 000 suspended for 3 years, no costs, general publication

Consent order

Matter 3 - Audit

Fine of R100 000 with R50 000 suspended for 3years, no costs, general publication

Consent order

Matter 4 - Audit, Companies Act

Fine of R150 000 with R75 000 suspended for 3 years, no costs, general publication

Consent order

Matter 5 - Assurance

Fine of R80 000 with R40 000 suspended for 3 years, no costs, general publication

Consent order

Matter 6 - Assurance

Fine of R120 000 with R40 000 suspended for 3 years, no costs, general publication

Referred to Disciplinary hearing

Matter 7 - Audit, Code

In progress

Referred to Disciplinary hearing

Matter 8 - Assurance

In progress

18 December 2018 - NW3488

Profile picture: Alberts, Adv A

Alberts, Adv A to ask the Minister of Finance

(1) (a) In terms of the legal prescriptions the National Credit Regulator (NCR) relies on for any powers to raise debt counselling fees, which were introduced as an interim measure in 2008, (b) whether the measures are binding in any way and (c) what are the specific legal precepts; (2) why National Treasury has not submitted any amendments in terms of section 171 of the Credit Act, Act 34 of 2005, to Parliament to authorise the Minister to prescribe debt counsellors’ fees in the regulations; (3) (a) on which directives in South African legislation does the NCR rely to enforce any guidelines when article 16(1)(b)(i) of the Credit Act stipulates the NCR's guidelines as non-enforceable and (b) why the guidelines have subsequently, as prescribed in the Constitution, 1996, also not been followed up with public feedback through an official notice in the Government Gazette by the Minister; (4) (a) what company has been appointed by the NCR to conduct the investigation regarding debt counselling fees, (b) whether the tender processes have been followed properly, (c) what is the cost relating to the investigation and (d) how the expense is justified when such investigation has been suspended after four months?

Reply:

The National Credit Act, 35 of 2005 does not fall under the mandate of the National Treasury.

The question should rather be directed to the National Credit Regulator and the Department of Trade and Industry.

18 December 2018 - NW3372

Profile picture: Dlamini, Mr MM

Dlamini, Mr MM to ask the Minister of Finance

(1)Why did the SA Revenue Service (SARS), purchase a certain company (name furnished) for R27 million when it was valued at R2 million, (b) how did SARS arrive at the figure of R27 million and (c) what services did the specified company provide to SARS; (2) following the purchase of the specified company, (a) what amount did SARS spend on information and technology (IT) services and (b) why were the IT services of the specified company needed in view of SARS’ purchase?

Reply:

 

1.

(a) SARS did not purchase Interfront SOC Ltd. The said company was formed by SARS with the required consent/approvals from the Minister and Treasury as required by the PFMA. SARS purchased the business and assets of Tatis International (Pty) Ltd (Tatis) which consisted mainly of the intellectual property (IP) in the customs solution software called TATIScms and employed Tatis’s skilled IT staff using Interfront as the legal entity as a wholly owned subsidiary of SARS. The total purchase consideration for the IP and assets of Tatis was not R27m but valued at R98m of which Accenture and Tatis Africa contributed R14m each for reseller rights. Accenture’s contribution was in the form of cash paid to Interfront (CLIDET at the time) and Tatis Africa a discount to the IP value. SARS is not aware of the allegation that the value of Tatis was R2m. Revenue collected by Interfront from Luxembourg for support and maintenance on the system for the period 2011-2018 amounted to R77m. A further R11m per annual is forecasted for the next 3 years.

(b) This question is answered under (a). Interfront firstly, modernised the Customs system to an electronic IT system which was implemented in SARS in 2013 and secondly has been building a new more modern electronic customs solution system to implement the new Customs Act.

(2) following the purchase of the specified company, (a) what amount did SARS spend on information and technology (IT) services and (b) why were the IT services of the specified company needed in view of SARS’ purchase?

a) SARS spent to date (31 Oct 2018-accruals included) a total amount of R784m, of which R669m is for software development, on all information technology and related services.

b) The Customs transaction volumes (Important and Exports) were doubling over the years while the staffing level remained static and minimal expenditure in information technology targeted at Customs, Customs was left in an untenable situation having to manage ever growing volumes with little capacity. Customs was utilising over 34 distinct systems to manage its business. Those systems were developed over a time as global trade was growing and evolving. The core system, CAPE, was commissioned in 1979 and was based on the first generation technology originally designed for batch data capture. The underlying conclusion was SARS Customs was not in a favourable position to deliver on its multifaceted mandate and effectively manage its many risks while providing the level of services required then in a competitive economy. After considerable analysis of the environment at the time, a number of options to resolve the technology issues and challenges were considered. The options investigated were as follows:

Option 1- Develop a new in-house custom-built solution utilising similar technology to that used for Tax Modernisation,

Option 2 – Create a SARS owned Development Company that would acquire the TATIS customs management solution.

Option 3 – Select and deploy a commercially-available customs software package such as Bull.

The key considerations, high-level time-lines and financial implications were discussed in the National Treasury submission and after applying the risk-adjusted public sector comparator; option 2 solution benefits considerably outweighed the risks. The submission was duly noted and signed by the Finance Minister at the time.

SARS continues to make use of the IT services of its subsidiary to modernise its Customs systems and achieve compliance with specific reference to the new Customs Act.

18 December 2018 - NW3651

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Finance

Whether, with reference to the reply of the Minister of State Security to question 3378 on 13 November 2018, the so-called spy tapes were produced by the SA Revenue Service’s High-Risk Investigation Unit and handed to Mr Michael Hulley for the defence of the former President, Mr J G Zuma; if not, who produced the tapes; if so, who handed the tapes to Mr Hulley?

Reply:

The Acting Commissioner has no knowledge of the origin of the so-called “spy tapes” other than what has been reported on in certain media articles such as an article of April 2009 in which it was reported that the Inspector General of Intelligence had confirmed an investigation had been opened.

Herewith is link to the M&G Article:

https://mg.co.za/article/2009-04-09-the-spy-who-saved-zuma

News

The spy who saved Zuma

Pearlie Joubert, Adriaan Basson09 Apr 2009 07:10

18 December 2018 - NW3466

Profile picture: Khanyile, Ms AT

Khanyile, Ms AT to ask the Minister of Water and Sanitation

(1)(a) On what date did his department last conduct an audit of artwork owned by Government which is under his department’s curatorship and (b) what are the details of each artwork under the curatorship of his department according to the Generally Recognised Accounting Practice 103; (2) whether any artworks under his department’s curatorship have gone missing (a) in each of the past five financial years and (b) since 1 April 2018; if so, what are the relevant details?

Reply:

The Hounorable Member is requested to note that the Generally Recognised Accounting Practice 103 (GRAP 103) is applicable to Public Entities in the Arts and Culture sector that prescribes the uniform accounting for classifying and recording Heritage Assets and regulates related disclosure requirements. The Hounorable Member is requested to refer the question to the Minister of Arts and Culture.

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18 December 2018 - NW3908

Profile picture: Khawula, Ms MS

Khawula, Ms MS to ask the Minister of Water and Sanitation

Whether, with reference to the reply of the Minister of Public Service and Administration to question 141 for oral reply on 7 September 2018, his department and the entities reporting to him implemented the Public Service Coordinating Bargaining Council resolution that all persons employed in the Public Service as Assistant Directors must have their salary level upgraded from level 9 to level 10, and that all Deputy Directors must have their salary level upgraded from level 11 to level 12; if not, why not; if so, what are the relevant details?

Reply:

No, it should be noted that not all the Assistant Director and Deputy Director posts in this Department are on level 10 and 12. There are some that have been originally graded on post levels 9 and 11. The Job Evaluation information (generated through the Job Evaluation system) has been used to determine the grading of these jobs. Subsequently, the Job Evaluation results are factored into the approved organizational structure of the Department. Hence, the Job Evaluation database is created to reflect all the jobs, inclusive of all the Assistant Directors and Deputy Directors which are on 9, 10, 11 and 12.

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18 December 2018 - NW3156

Profile picture: Dlamini, Mr MM

Dlamini, Mr MM to ask the Minister of Finance

With reference to the Minister of Energy’s reply to question 2344 on 15 October 2018, what (a) is the annual salary of a certain person (name furnished) and (b) are the relevant details of the time period of the specified person’s employment or contract?

Reply:

a) The annual salary of the indicated person is R3 812 280.00.

b) The official was appointed by the Development Bank of Southern Africa on 31 March 2016 on a three year contract which ends on 28 February 2019. Prior to that she was seconded to the IPP office by the National Treasury.

18 December 2018 - NW2970

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

What (a) is the total cost of legal expenses incurred by the Financial and Fiscal Commission (FFC) (i) in the 2017-18 financial year and (ii) since 1 April 2018, (b) percentage of the total expenses incurred by the FCC is constituted of legal expenses in each case and (c)(i) is the total number of cases, (ii) are the details of the legal matters covered in each case and (iii) is the total cost incurred for each case?

Reply:

(a) (i) The total cost of legal expenses during 2017-18 financial year amounted to R198 800

(ii) The total cost of legal expenses since 1 April 2018 amounted to R139 955

(b) Percentage of each case in 2017-18 financial year see below link: 

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2970_Percentage_2017-18..pdf

Percentage of each case since 1 April 2018 see below link: 

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2970_Percentage_2018-19.pdf

(c) (i) Total number of cases in 2017/18 financial year - 2

Total number of cases since 1 April 2018 – 1

(ii) All cases dealt with labour matters

(iii) Refer to table in b above

18 December 2018 - NW3580

Profile picture: Hlonyana, Mrs NKF

Hlonyana, Mrs NKF to ask the Minister of Finance

(a) Who introduced a certain company (details furnished) to the SA Revenue Service and (b) was the specified company issued a contract after a tender process?

Reply:

a) The 2006 SARS records that have been reviewed by the current procurement leadership team reflects that the selection of the three entities (i.e. IBM, Accenture and BB&D) was based on the industry knowledge of the then Strategy, Modernisation and Technology senior staff.

b) A Master Services Contract was concluded.

18 December 2018 - NW3484

Profile picture: Matiase, Mr NS

Matiase, Mr NS to ask the Minister of Finance

On what legal basis or provisions did the decision of the former Minister of Finance rely in 2012 when he allegedly instructed senior executives of the SA Revenue Service to pursue the tax issues against the President of the Economic Freedom Fighters, Mr J S Malema?

Reply:

SARS cannot disclose taxpayer specific information. In terms of the applicable legislation administered by SARS during the period of 2009 /2010 SARS could identify a taxpayer based on a specific risk identified or alternatively on a random basis. As per SARS’ compliance approach taxpayers would be encouraged to regularize their affairs. Continued non-compliance by taxpayers would then inform the most appropriate SARS Enforcement response.

Legally the Minister of Finance cannot instruct SARS to investigate a taxpayer. SARS is further not aware of such an instruction given to SARS as alluded to in the parliamentary question.

18 December 2018 - NW3374

Profile picture: Khawula, Ms MS

Khawula, Ms MS to ask the Minister of Finance

(1)Whether certain companies (names furnished) were contracted by the SA Revenue Service (SARS) at any time since 1 January 1999; if so, (a) on what date, (b) for how long was each specified company contracted and (c) what was the value of each contract; (2) (a) whether a tender was advertised for each contract, (b) on what basis was each specified company selected and (c) did the then Commissioner of SARS approve the contracts; (3) whether the contracts with the specified companies were extended; if not, why not; if so, (a) for what period, (b) what was the value of each contract, (c) for how long was each contract extended, (d) did the extensions comply with regulations and (e) was each extension of the contract approved by the then Commissioner of the SARS?

Reply:

1 a) BB&D was contracted from 01 February 2007.

Oracle (Siebel which changed its name to Oracle) was contracted from December 2005.

b) BB&D have been contracted for 12 years from 01 February 2007 to 31 December 2019 through multiple deviations.

Oracle was contracted for 2 years from December 2005 to December 2007.

c) BB&D spend from 2007 to date is R1 275 550 118.99

Oracle spend from 2005 to 2007 is R 18 773 278.23

2 a) BBD was appointed through a deviation process and not a tender process

In consultation with long serving SARS employees and in the absence of the records to verify the assertions made (due to the time lapses), it was established that Siebel had a long standing contract with government from when SARS was still Inland Revenue Service as such their engagement was on the basis of systems already deployed through that government wide commercial arrangement.

b) The 2006 SARS records that have been reviewed by the current procurement leadership team reflects that the selection of the three entities (i.e. IBM, Accenture and BB&D) was based on the industry knowledge of the then Strategy, Modernisation and Technology senior staff. In circumstances relating to the replacement of the Oracle transaction BB&D was then chosen from the listed primarily because of price consideration.

In as far as Siebel/Oracle is concerned refer to 2a) above.

c) BBD - The then Commissioner of SARS approved the appointment of BBD through a deviation as per Treasury Regulation 16A6.4

In relation to Siebel/Oracle no record of approval could be established in line with 2a).

3 a) BB&D – original approval was from 01 February 2007 to 31 March 2012(5years)

1st extension from 01 April 2012 to 31 March 2016

2nd extension from 01 April 2016 to 31 December 2016

3rd extension from 01 January 2017 to 31 December 2019

Oracle was not extended beyond 31 December 2007 and they were replaced by BBD in the work they were doing for SARS

b) BBD - The contract value for BB&D from February 2007 to date is R1 275 550 118.99

Oracle - The spend from 2005 to 2007 is R 18 773 278.23

c) BBD – Refer to 3a above

Oracle - The Oracle contract was from December 2005 to December 2007 and was not extended further.

d) BBD – The extensions relating to the BB&D contract complied with the applicable regulations

Oracle - There were no extensions on the Oracle contract as it ran from December 2005 to December 2007 and was not extended further.

e) BB&D – the extensions were approved by the relevant Commissioner in terms of the applicable DOA at the time.

Oracle - There were no extensions on the Oracle contract as it ran from December 2005 to December 2007 and was not extended further.