Questions and Replies

Reply:

Domestic economic growth is the aggregation of multiple, complex streams of for example: production, consumption, expenditure, imports and exports. These are in turn affected by a wide range of domestic and global factors. It is not advisable to reduce these complex interactions to a simple direct and/or proportional relationship. Subject to this caution, the following information has been provided to me by the dtic.

In the Financial year 2021-22, Foreign direct investment (FDI), measured as investment liability inflows by the South African Reserve Bank (SARB), increased from R17.3 billion at the beginning of the 2021/22 financial year to R39.9bn at the end of the financial year, growing by 130.8% during the 2021/22 financial year. In the same period, GDP grew by 1.3%, from R4.5 trillion (tr) to R4.6trn during the same period. Some studies indicate that in South Africa, FDI and economic growth are positively related (Masipa, 2014[1]; Awolusi and Adeyeye, 2016[2]; Makhoba and Zungu, 2021[3]).

In Quarter 1 2022/23 (April to June 2022), FDI declined (-34.2%) quarter-on-quarter while economic growth contracted (-0.7%) quarter-on-quarter.

Regarding Job creation, in the Financial year 2021/22: Foreign direct investment (FDI), measured as investment liability inflows, by the South African Reserve Bank (SARB), increased from R17.3 billion at the beginning of the 2021/22 financial year to R39.9bn at the end of the financial year, growing by 130.8% during the 2021/22 financial year. During the same period, Statistics South Africa (StatsSA) reported that employment contracted by 0.2%, with employment declining from 14.94 million to 14.91 million. Some empirical studies have found a positive relationship between FDI and job creation in South Africa (see Masipa, 2014).

Quarter 1 of this Financial Year 2022/23, Employment increased by 4% quarter-on-quarter while FDI declined (-34.2%) quarter-on-quarter.

Lags in an increase (or decrease) in investment and a subsequent increase (or decrease) in employment may also not follow in the same year, but may lag the change.

-END-

1. Masipa, T. 2014. The Impact of Foreign Direct Investment on Economic Growth and Employment in South Africa: A Time Series Analysis. Mediterranean Journal of Social Sciences, 5(25), 18-27. ↑

2. Awolusi, OD. and Adeyeye, OP. (2016). Impact of foreign direct investment on economic growth in Africa. Problems and Perspectives in Management, 14(2-2), 289-297. doi:10.21511/ppm.14(2-2).2016.04. ↑

3. Makhoba, BP. and Zungu, LT. 2021. Foreign Direct Investment and Economic Growth in South Africa: Is there a Mutually Beneficial Relationship? African Journal of Business and Economic Research, 16(4). ↑

Reply:

The Department of Trade, Industry and Competition (the dtic) is focused on supporting domestic businesses and foreign and domestic investors.

This support includes the conceptualisation and implementation of sectoral Masterplans by Government, Business and organised Labour. the dtic’s interventions include the provision of globally competitive financial and non-financial incentives; support for localisation through targeted private and public procurement interventions; careful use of trade policy measures to support investment in the industrial sector; measures in the competition policy space which encourage investment and localisation; and unblocking activities to assist investors to navigate South Africa’s regulatory environment as efficiently as possible. These efforts bear fruit with new investments publicly launched in the first six months of this financial year valued at R26, 9 billion and R329 billion worth of manufactured goods were exported in the same period

In common with its key trading partners, South Africa is experiencing a rise in inflation. Supply-chain disruptions experienced during the COVID-19 outbreak, the impact of generous fiscal packages in large economies, and the effect that the war in the Ukraine has had on both the energy and food value-chains, all contribute to inflationary pressures. Rising inflation affects the poor in South Africa disproportionately since food purchases account for a relatively large proportion of these consumers’ monthly expenditure. Consequently, the dtic seeks to strike a careful balance when taking policy or programme decisions which support industrialisation and which may have an impact on poor consumers. In some cases, a trade-off is required and the Department considers all relevant factors in taking such decisions.

Industrialisation increases South Africa’s ability to manufacture a range of products and this ability often mitigates or reduces inflation, especially when global prices for a particular product are rising or when international value-chains are disrupted. The dtic responds to this need and the value of approvals in more than 300 projects approved by the dtic, IDC and NEF amounted to R12,6 billion in incentives disbursed in the first six months of the financial year. Projects are located in 23 of the 52 municipalities. 11 of these are from largely rural districts. Localisation is driven by the steel industry with contribution from motor vehicle parts, renewable energy components and poultry.

I draw the Honourable Member’s attention to the efforts by both the Minister of Justice and the Minister of Finance, dealing with greylisting.

-END-

Reply:

Details of performance of sectors in the economy are publicly available, as are the submissions made by the Department.

The President has provided information in State of the Nation Addresses, including on progress with specific Master Plans.

Details of relevant Master Plans have also been made available by the dtic to the Portfolio Committee, most recently on 1 November 2022 as part of the Department’s six-monthly report of performance against its Annual Performance Plan.

The report sets out to showcase the economic impact the Department has made in the implementation of the various Master Plans in the first 6 months of 2022/23 financial year, amongst other programmes. Furthermore, the presentation reported on the impact and outcomes of the department on a number of metrics, including jobs, manufacturing, local content, investments and industrial funding. A number of case studies were also provided across the various Master Plans to illustrate the impact of work done by the dtic.

In addition, other government departments responsible for specific master plans also make information available.

A number of businesses and sector leaders also provide information on the performance of Master Plans.

-END-

Reply:

1. the dtic does not have any reported corruption cases that have been closed due to the inability to locate key witnesses.

2. the dtic recognises fraud prevention as an integral part of strategic management. the dtic is committed to the elimination of fraud and strives towards maintaining and implementing the highest standard of prevention and detection. the dtic prevents fraud through implementing the following strategies:

a) Prevention Strategy –

1. the dtic has implemented a fraud and corruption email hotline address [email protected] which is on the dtic’s website.
2. Fraud Awareness Training: Employees in the department and provided with Fraud prevention training.
3. Assessment of Fraud Risks: The Office of the Chief Risk Officer (OCRO) within the dtic, conducts annual risk assessments to identify potential fraud risks based on the risk profile of the Department.
4. Internal Control: Internal controls are the first line of defence against fraud and are essential elements in the overall anti-fraud prevention strategy. the dtic promotes an internal control culture through the mapping of business processes to ensure that controls are built in, regular communication on ethics and ethical behaviour in the performance of daily activities, implementation of additional controls to prevent any fraud risks, and forensic investigations where required.
5. Pre-Employment Screening: Screening is an effective means of preventing fraud such as falsifying qualifications or employment history, as well as previous criminal convictions for offences.
6. Disclosure of interests: All staff members are required to disclose their financial interests on an annual basis. Failure to disclose fully incurs disciplinary action.
7. Approval of Other Remunerative Work Outside Public Service: All staff are reminded, via regular communications and newsflashes, to obtain prior written approval of other remunerative work outside the Public Service in terms of Section 30(1) of the Public Service Act. Failure to obtain such approval incurs disciplinary action.
8. Reviewing systems and procedures: When fraud is detected it is referred to the dtic’s Internal Audit unit for an investigation and recommendation of action. the dtic re-assesses the adequacy of the internal control environment and actively plans and implements improvements where required. The instances of fraud are received either through the whistle blowers hotline, National Anti-Corruption hotline or by management.
9. Whistle Blowers protection: Individuals are encouraged to come forward with any information without fear of victimisation as the dtic has institutionalised the protection afforded to whistle blowers by the Protected Disclosures Act by approving its own Whistle Blowing Policy.

(b) Detection Strategy: Despite the existence of fraud prevention programmes, fraud may still occur. An anti-fraud reporting facility via the Presidential hotline and Whistle Blower’s line complements and underpins the commitment of the dtic to fighting fraud.

(c) Response Strategy -

• 1. Disciplinary Action: Subsequent to a full investigation, the dtic takes disciplinary action in all cases where warranted. Any member of staff found guilty of dishonesty or fraud will be considered to have committed a serious disciplinary offence and will be dismissed.
  2. Recovery of money or property lost through fraud: the dtic will actively pursue the recovery of money or property lost through fraud and will refer the matter for criminal prosecution.

(d) Forensic Investigation -

1. In the event that fraud is detected or suspected, the matter is fully investigated by Internal Audit Forensic Investigators.
2. All fraud cases are tabled, discussed and monitored at the Pre-Risk Committee.
3. All fraud cases are referred to SAPS for further prosecution.
4. The findings of the SIU investigation of the National Lotteries Commission (NLC), have been prioritised and is being addressed as recommended in the SIU report. In addition, a fraud and corruption hotline has been created and placed on the NLC website to enable anonymous reporting by the public, of fraud and corruption at the NLC. This hotline is managed by the dtic, independently from the NLC.

(e) Anti-Corruption Unit and measures in progress: An Anti-Corruption unit within the dtic is in the process of being capacitated with the objective of intense focus on anti-fraud and corruption initiatives and measures across the dtic group, inclusive of all public entities reporting into the dtic.

-END-

__________________

Mr Ebrahim Patel

Minister of Trade, Industry and Competition

Date: ….../….../ 2022

Approved/Not Approved

Reply:

I have been furnished with the information that follows, by the management of the Industrial Development Corporation (IDC):

The SMME Crisis Partnership Fund is managed by an independent Fund Manager, that being the SASME Fund.

As an investor in the fund, the Industrial Development Corporation (IDC) participates in a governance framework that has been put in place to protect the fund against corruption and wasteful expenditure. This consists of:

• Advisory Board

• Investment Committee

• IDC Oversight

• Reporting and Audit

Advisory Board

The Advisory Board is comprised of members appointed by the Investors. These members are independent in that they are not employees of the Fund Manager. The Advisory Board ensures that the Fund’s Guidelines, Policies and Procedures are adhered to. The Fund Manager may raise reasonable objections to the appointment of a prospective candidate e.g., reputational, or legal (criminal/fraud). The rights and responsibilities of the Advisory Board are to:

1. approve any variations or waivers to the Fund Guidelines.
2. approve increases to prudential limits on investments where specifically allowed in the Fund’s guidelines.
3. advise on any governance issues that may arise in the Fund.
4. review all expenses of the Fund.
5. approve the appointment/replacement of the Fund’s Auditor.
6. review bank statements of the Fund.
7. review the annual valuations of investments, and to the extent that there is any dispute in respect of a valuation refer the issue to a recognised expert for final determination.
8. to resolve any material conflict of interest between the Fund Manager and the Investors or the investors themselves arising from a Fund transaction.

Investment Committee

The Investment Committees key role is to:

1. Approve or decline investments or exits from investments.
2. Monitor and report to Investors the performance of the investments.
3. Approve third party expenses to be borne by the Investors in respect of investments or exits.
4. Ensure that the Fund manager implements the Investment Policy of the Fund as negotiated with Investors.

The committee is established and hosted by the Fund Manager. The Investment Committee members are individuals independent from the Fund Manager who possess the requisite industry, technical and financial skills to make investment decisions in accordance with the investment mandate and terms of the Fund.

IDC Oversight

IDC ensure appropriate oversight of the fund through representation on the Advisory Board and the Investment Committee. IDC has appointed senior staff who possess the requisite experience in respect of deal assessment, development finance and township sector knowledge to sit on these committees.

In addition, the IDC has a senior person responsible for constant oversight of the Fund and the Fund Manager.

Payments to the fund by the IDC are made as the fund invests in the SMMEs and not in a single lump sum. To effect disbursement of monies to the Fund, the Fund Manager must provide to the IDC the minutes of the Fund’s IC meetings showing which applicants have been approved for investment and the value of the investment.

Reporting and Audit

The fund manager is required to:

1. Provide monthly reports to IDC on the performance of the Fund within 7 days after each month-end. The report will cover but not be limited to relevant fund performance indicators including approvals, cancellations disbursements, impairments, distressed investees, realised and projected financial returns and latest valuation of the Fund (and each of its underlying investments); number of jobs created/ saved, the number and value of investments to black owned investees.
2. provide management accounts of the Fund and the Fund Manager to IDC on a quarterly basis within 30 days after each quarter-end.
3. provide the IDC with audited annual financial statements of the Fund and Fund Manager within 6 months after its year-end.

-END-

Reply:

The One-Stop Shop is part of Government’s services to improve the investment climate and make it easier to operate a business in South Africa.

To this end the One-Stop Shop provides an investment facilitation service, at the National One-Stop and the three (3) Provincial in Gauteng, KwaZulu-Natal and Western Cape.

This consists of support with respect to:

• pre investment (information and advisory) services to investors
• set up (roll out and implementation) and
• post investment services.

The role of the One-Stop Shop is to support new investments, expansions and retention of investment through assisting investors. Examples of the type of support rendered to foreign investors include support with:

• addressing challenges at local government level
• environment impact licenses
• water usage licenses
• construction permits
• electricity connections
• information to facilitate compliance with standards
• port clearances and
• work visas for managers and investors

Investment cuts across the three (3) sphere of Government (National, Provincial and Local) and Government agencies and InvestSa thus work with these various entities.

The One-Stop Shop provides an investment facilitation service throughout the investment life cycle journey in South Africa. The One-Stop Shop facilitates investment projects to be implemented and operationalised so that production plants and services can start, thereby creating new jobs and retaining jobs.

Recent examples include facilitating visas and electricity connections for Ford’s $1 billion new production line at the Tshwane Special Economic Zone (SEZ); as well visas for P&G and technical engagements with the National Regulator for Compulsory Specifications (NRCS) for industrial products.

The quarterly reports of the Department submitted to Parliament, provides additional information on the successes of InvestSA.

-END-

Reply:

South Africa’s official statistical agency is Statistics South Africa (StatsSA) and it is responsible for calculating South Africa’s national gross domestic product (GDP). I am advised that StatsSA does not publish data in the form requested by the Honourable Member.

-END-

Reply:

All the appointments of personnel in public sector positions are made in accordance with relevant legislation. No structure outside of those prescribed in legislation can determine the deployment of personnel in public sector positions. Where the legislation requires me to make an appointment, I apply myself to the requirements of the entity concerned, the legislative prescripts and the merits of candidates for the positions.

As part of building a capable state, I make all reasonable efforts to strengthen the skills mix in those public sector appointments within my remit. I therefore consider carefully the suitability of candidates on the information available to me and the need to have a diverse set of skills and experiences on an entity’s board.

-END-

Reply:

No trade agreements were signed at the recent South Africa-Saudi Arabia Joint Economic Commission (JEC) meeting held in Pretoria on 3-4 October 2022.

The JEC was convened inter alia in order to prepare the work for the planned State Visit to Saudi Arabia subsequently undertaken by President Ramaphosa on 15-16 October 2022, at which several economic cooperation agreements were signed. The JEC was therefore a useful clearing-house and opportunity to identify the status of negotiations on such proposed agreements.

-END-

Reply:

InvestSA reports on metrics outlined in the dtic’s Annual Performance Plan, which sets out the key actions to be undertaken. By acting as a facilitator in the business eco-system, Invest SA plays a role in companies investing and expanding. The outcomes are in turn reported on as set out below.

The following six examples as outlined in the dtic Annual Report presentation to the Portfolio Committee on Trade, Industry and Competition, provides tangible evidence of targets being attained:

• R176 billion-investment pipeline.
• 642 investor consultations for rapid implementation
• Assisted with the evaluation of 305 visa recommendations for technical experts of various companies
• 54 ease of doing business engagements i.e., Technical Working Groups, Business meetings , Stakeholder engagements
• 179 intra-company transfers, critical skills and permanent residency visas facilitated.

There are several more examples of outcomes achieved by Invest South Africa and I will report on some of these to the Portfolio Committee when reporting on the department’s quarter 1 and quarter 2 performance for this financial year.

Reports are generated internally through the branch in cooperation with other branches such as the Economic Research and Policy Branch in the Department.

Reports are generated internally and there are no costs involved.

Quarterly reports are compiled by Invest SA based on reports submitted by companies.

-END-

Reply:

The Companies and Intellectual Property Commission (CIPC) informs me that it uses standard industrial classification codes (SIC) that does not include the level of detail set out in the question. For example, if a company’s business is in the computer industry, it will be classified as Information and Communication Technology and will not be specific as to whether that entails Artificial Intelligence or Robotics etc. The Companies Act, 2008 (Act No. 71 of 2008), did away with the concept of primary business being contained in a Companies Memorandum of Incorporation and made same general.

-END-

Reply:

The CEO of the Industrial Development Corporation (IDC) has advised me that the following total production volumes were achieved for the 10 year period from 2013-2022:

• Phosphate rock: 18 860 000 tons (on average 73% of capacity)
• Mono-ammonium phosphate 2 678 000 tons (on average 59% of capacity).

The Mine and acid plant had not been operating at full capacity for a number of years. Improvements to the infrastructure, power supply and additional technical capacity is required to improve production and capacity utilisation. The IDC has regularly engaged the Foskor leadership to improve operational performance and works with Transnet on logistics and Eskom on the energy related issues.

Following operational improvements made and favourable market conditions, a projected improvement in output for the current financial year is expected to increase capacity utilisation at the mine to 95% and a substantial improvement at the plant.

The IDC is the majority shareholder in Foskor, holding 59% of the Foskor shares. The IDC does consider potential Strategic Equity Partners for businesses that it is involved in.

-END-

Reply:

A large number of public comments were received by the due date and a few stakeholders requested additional time and were granted a short extension. Comments ranged from pro-forma views in favour or against the proposals; to substantive submissions that engaged specifically with the policy, legal or economic aspects of the proposals. These comments are currently being evaluated and considered by the Ministry.

Copies of submissions are not normally made available to the public or to Members of Parliament, as respondents to a request for comment did not make representations in anticipation that their comments would be made available to the public.

-END-

Reply:

The Department of Trade, Industry and Competition (the dtic) regularly provides documents for public and stakeholder comment as feedback can assist to strengthen policy documents.

Section 195(1)(e) of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), prescribes that Public administration must be governed by the democratic values and principles enshrined in the Constitution, including the principle that the people’s needs must be responded to, and the public must be encouraged to participate in policy-making.

Copies of the dtic Policy documents are available on the Department website: www.thedtic.gov.za.

-END-

Reply:

The National Lotteries Commission has furnished me with a response to the question.

It provides a list of various parties litigated against and legal fees for litigation. I have requested that additional details be provided in respect of the specific matters covered in the legal briefs.

For the supplementary reply on legal costs, I am requesting that the NLC compiles a record of the following:

1. Total legal and consultancy costs of the various matters involving the Ministry, including but not limited to:

• Litigation on the appointment of acting chairperson
• Litigation on disclosure of information and appointment of forensic investigators,
• Litigation on appointment of board
• legal or consultancy advice sought on power of Minister or the dtic in relation to the Board, including its removal
• legal or consultancy advice sought on the disclosure of beneficiary information
• legal or consultancy advice sought on the appointment of the forensic firm by the dtic; and the appointment of the SIU by the President
• media consultancy or lobbying costs involving matters relating to the Ministry or the dtic
• legal or consultancy cost in relation to disciplinary proceedings commenced by the Minister against members of the Board

2. Total legal and consultancy costs of the various matters involving any member of parliament

3. Total legal and consultancy costs of the various matters involving any journalist or media house or SANEF.

The new Board is currently reviewing the legal costs of the NLC. I will request the Board to consider that the review should cover whether legal costs of the extent covered in the reply below is justified; and to adjust the future NLC Budgets based on the outcome of the review.

In respect of the legal department of the NLC, I will be requesting the Board to commission a review of the work actually done by the Unit and each specific member of the Unit and to evaluate the outcome of such review.

The NLC advises as follows in respect of the questions:

“(1) The matters initiated by the NLC constituted 25% of litigation matters pursuant to section 10(3) of the Lotteries Act, 1997 (Act No. 57 of 1997).

(1)(a) List of all the parties litigated against:

• NLC / Boitumelo Mafonjo
• NLC / Yanga Mvakwa
• NLC / Minister of Trade, Industry & Competition
• NLC / Ithuba Holdings & 2 Others

(1)(b) Matters instituted against the NLC by current and/ or former staff:

• Mzukisi Makatse / NLC
• Tshililo Ndonyane / NLC
• Khomotso Aphae / NLC
• Sello Qhina / NLC
• NUPSAW obo Members / NLC
• Ithuba Holdings / Lotto Star & Others
• Katleho Malatsi / NLC & 4 Others
• Phillemon Letwaba / NLC & SKX

(2)(a)&(b) The Legal and Investigation Services Division, comprises of a staff complement of seven (7) employees - structured as follows:

 

a) Position	b) Duties
1 x Executive Manager: Legal	The incumbent is responsible for strategic legal direction and the effective and efficient management of the Legal and Investigations Division. The incumbent oversees the Commission’s legal compliance and management of legal risks, fraud risks as well as contractual risks. Provides legal support and advisory services to the NLC and the NLC Board in executing its functions as per the Commission’s enabling legislation. Ensures safe and adequate whistleblowing arrangements are in place.
1 x Legal Manager	The incumbent provides operational and credible legal advice to all Commission’s divisions to ensure that legal challenges are avoided, and legal and fraud risks are mitigated. Ensures the efficacy of legislation, practical implementation of all legislative prescripts and manage litigation when it arises whilst anticipating and acting against legal risks facing the Commission and provide general legal support to the Commission. Ensures that all investigations are conducted in an independent, objective and credible manner. Manages the whistleblowing arrangements.
1 x Legal Specialist	Provision of general legal advice, legal and advisory support to the Commission. Conduction of education and awareness interventions and drafting of all contracts of the Commission. Monitoring and reporting of divisional risks (monthly & quarterly reporting).
1 x Senior Legal and Forensic Specialist	The incumbent investigates all fraud and corruption and any other activities that undermine the Commission’s regulatory and grant making mandate in order to ensure prosecution/civil recovery and associated disciplinary action / relevant consequence management. Monitors trends of impropriety and flags it for the respective divisions. Conducts fraud education and awareness as well as alerts to NLC stakeholders. Identifies and reports control weaknesses to appropriate management and identifying areas within the Commission. Collaborative engagements with law enforcement agencies for when there is alleged or actual acts of impropriety.
1 x Forensic Officer	The Forensic Officer is responsible for investigating all allegations of fraud and corruption. Conduction of education and awareness relating to fraud and trends. Reports cases to law enforcement agencies. Drafts investigation reports.
1 x Administrative Assistant	Renders administrative support to the Commission’s investigation unit.
1 x Executive Assistant	Incumbent is responsible for providing secretarial, clerical, administrative support and general office duties in order to ensure that services in the Legal Services Division are provided in an effective and efficient manner.”

-END-

Reply:

1. The South African Government is mandated to effect redress in the interests of equity, as embodied in the Constitution of the Republic of South Africa, 1996 (Act no. 108 of 1996). The Constitution, 1996 laid the foundation for a coherent and an inclusive economy of all its citizens. Section 9 of the Bill of Rights, in the Constitution, promotes equality in all facets of life, inclusive of the economy. An inclusive economy will only be possible if the South African economy builds on the full potential of all persons and communities across the length and breadth of our Country.

The Broad-Based Black Economic Empowerment (B-BBEE) Act, 2003 (Act No. 53 of 2003), as amended, defines ‘broad-based black economic empowerment’ as: “the viable economic empowerment of all black people, in particular women, workers, youth, people with disabilities and people living in rural areas, through diverse but integrated socio-economic strategies that include, but are not limited to -

(a) increasing the number of black people that manage, own and control enterprises and productive assets;

(b) facilitating ownership and management of enterprises and productive assets by communities, workers, co-operatives and other collective enterprises;

(c) human resource and skills development;

(d) achieving equitable representation in all occupational categories and levels in the workforce;

(e) preferential procurement from enterprises that are owned or managed by black people; and

(f) investment in enterprises that are owned or managed by black people”.

(2) The introduction of ‘broad-based’ criteria is intended to ensure that the impact of policy is not confined to opportunities only for black entrepreneurs. The impact of policy on living standards (including persons living in poverty) and on employment (measured by the quality and quantity of jobs), are therefore also relevant.

A number of broad-based investment vehicles addresses socio-economic development matters such as

• provision of bursaries to students, which assist with increasing employability of the individuals and helps to grow the pool of skills that can drive higher growth, and thus higher incomes and jobs numbers
• rolling out of education support (eg teaching of numeracy at primary schools), laying the basis for better technical skills
• health-care services (such as HIV-Aids education) to discourage risky behaviour and stigmatising HIV positive persons
• rural development which assists with sustainable livelihoods
• job creation schemes and
• measures to improve living standards for members of communities.

The Department is currently undertaking research that can assist to quantify the impact of broad-based BEE policies on the above.

-END-

Reply:

The National Lotteries Commission has furnished me with a response to the question.

It provides a list of law firms. I have requested that additional details be provided in respect of the specific matters covered in each of the specific briefs given to each law firm. Attention is also drawn to the reply to Parliamentary Question 606.

The reply of the NLC is attached hereto. A supplementary reply will be tabled if warranted, once the further information I have requested has been received.

-END-

Reply:

The CEO of the National Empowerment Fund (NEF) has furnished me with a detailed reply, which disputes the version apparently put to the Honourable Member.

In the reply, the CEO advises that the NEF “discussed the investment opportunity with the client to prepare the investment report and potential investment terms. Some key challenges arose during the due diligence stage of the application. Consequentially, in terms of due process, the application did not proceed to the Investment Committee of the NEF for final approval. A solution is being explored with the seller to address the outstanding information required to finalise the due diligence process and to ensure that the rights of all parties are protected. The opportunity is still available, and the seller is willing to work with the NEF to find a solution to the impasse emanating from his past reluctance to share the required information.”

I will be happy to arrange a discussion between the Honourable member and the NEF to provide more details.

-END-

Reply:

The IDC has approved R14,4 billion of funding in the Foundry and/or mini mill industry since FY 2010, in the following forms: industrial loans of R5,99 billion, equity of R8,44 billion and grants of R4m.

In addition, the IDC provided guarantees of R5,5 billion to companies in the sector.

A supplementary reply will be submitted shortly, with additional information.

-END-

Reply:

South Africa’s infrastructure is being stripped at an unprecedented rate with a substantially negative impact on government, citizens and the economy. The objective of the proposed measures (which include prohibition on scrap metal) is likely to lead to a material reduction in the theft of metal from the country's infrastructure. The details setting out the rationale for and proposed modalities of such restriction, were published in the Government Gazette for public comment.

Over the past decade research has pointed to 26 developing and developed countries (the latter including the European Union) who have imposed different forms of restrictions on the export of scrap metal for a variety of reasons, including environmental reasons or to ensure domestic supply. Some countries have imposed export restrictions on scrap metal to curb criminality and the destruction of infrastructure.

Government has consulted with external lawyers regarding the legality of the proposed measures and believe them to be compliant with international trade obligations.

-END-

Reply:

1. The sale by the IDC of shares that it holds in a company is based on a number of considerations, including whether such sale is warranted given the IDC strategic mandate. The discussions between the IDC and the investor covered matters that are covered by the IDC mandate, including working capital commitments, market access commitments including on exports, transformation, incorporation of minority protection rights and development of industrial opportunities in South Africa, including in green technologies. The shareholder representative supported the approach of the IDC in respect of securing appropriate terms on these matters that would further the IDC mandate.
2. We are advised by the IDC that the prospective buyer cited their reason for withdrawing from the deal as the weakening global economic conditions, which have led them as a company to reconsider their investment decisions.

-End-

Reply:

I have been furnished with the attached reply to the question submitted, by the Acting Commissioner of the National Lotteries Commission.

 

 

 

Reply:

The CEO of the National Empowerment Fund (NEF) has furnished me with a detailed reply, which disputes the version apparently put to the Honourable Member.

In the reply, the CEO advises that the NEF “relied on the letter of intent to conduct due diligence with the anticipation that Fairplay Hardware would issue a final binding contract prior to presenting the application to the NEF’s Investment Committee for final approval.”

I will be happy to arrange a discussion between the Honourable member and the NEF to provide more details.

-END-

Reply:

The National Lotteries Commission has furnished me with the following response to the question

“The position of Senior Executive: Grant Funding ceased to exist in April 2017 and was replaced by position of Chief Operations Officer.

FINANCIAL YEAR: 2019/2020 (aa)

Executives	(a) Basic R'000	(b) Provident Fund and Risk Benefit Contributions R'000	(c) Travel Allowance R'000	(d)Cellphone Allowance R'000	(e)Performance Bonus R'000	Total R'000
(i) Chief Financial Officer	1 703	245	-	48	296	2 292

FINANCIAL YEAR: 2020/2021 (bb)

Executives	(a) Basic R'000	(b) Provident Fund and Risk Benefit Contributions R'000	(c) Travel Allowance R'000	(d) Cellphone Allowance R'000	(e)Performance Bonus R'000	Total R'000
(i) Chief Financial Officer	1 731	250	-	48	655	2 684

FINANCIAL YEAR: 2021/2022 (cc)

Executives	(a) Basic R'000	(b)Provident Fund and Risk Benefit Contributions R'000	(c)Travel Allowance R'000	(d)Cellphone Allowance R'000	(e)Performance Bonus R'000	Other Allowances	Total 2022
(i) Chief Financial Officer	2 116	326	-	48	687	104	3 281

-END-

Reply:

The National Lotteries Commission has furnished me with the following response to the question:

“FINANCIAL YEAR: 2019/2020 (aa)

Executives	(a) Basic R'000	(b) Provident Fund and Risk Benefit Contributions R'000	(c) Travel Allowance R'000	(d)Cellphone Allowance R'000	(e)Performance Bonus R'000	Total R'000
(i) Chief Information Officer	2 410	365	120	48	440	3 383
(ii) Executive Manager: Regulatory Compliance	1 995	-	156	48	333	2 532

FINANCIAL YEAR: 2020/2021 (bb)

Executives	(a) Basic R'000	(b) Provident Fund and Risk Benefit Contributions R'000	(c) Travel Allowance R'000	(d) Cellphone Allowance R'000	(e)Performance Bonus R'000	Total R'000
(i) Chief Information Officer	1 731	250	-	48	655	2 684
(ii) Executive Manager: Regulatory Compliance	2 031	40	156	48	738	3013

FINANCIAL YEAR: 2021/2022 (cc)

Executives	(a) Basic R'000	(b)Provident Fund and Risk Benefit Contributions R'000	(c)Travel Allowance R'000	(d)Cellphone Allowance R'000	(e)Performance Bonus R'000	Other Allowances	Total 2022
(i) Chief Information Officer	2 395	543	120	48	977	327	4 410
(ii) Executive Manager: Regulatory Compliance	2 233	-	156	48	771	32	3 240

-END-

Reply:

The National Lotteries Commission has furnished me with the following response to the question:

“The Corporate Services was disbanded in June 2017, therefore the position of Executive: Corporate Services ceased to exist.

FINANCIAL YEAR: 2019/2020 (aa)

Executives	(a) Basic R'000	(b) Provident Fund and Risk Benefit Contributions R'000	(c) Travel Allowance R'000	(d)Cellphone Allowance R'000	(e)Performance Bonus R'000	Total R'000
i) Company Secretary	1 581	228	-	48	275	2 132
ii) Executive: Corporate Services	n/a	n/a	n/a	n/a	n/a	n/a

FINANCIAL YEAR: 2020/2021 (bb)

Executives	(a) Basic R'000	(b) Provident Fund and Risk Benefit Contributions R'000	(c) Travel Allowance R'000	(d) Cellphone Allowance R'000	(e)Performance Bonus R'000	Total R'000
i) Company Secretary	1 607	232	-	48	611	2 498
ii) Executive: Corporate Services	n/a	n/a	n/a	n/a	n/a	n/a

FINANCIAL YEAR: 2021/2022 (cc)

Executives	(a) Basic R'000	(b)Provident Fund and Risk Benefit Contributions R'000	(c)Travel Allowance R'000	(d)Cellphone Allowance R'000	(e)Performance Bonus R'000	Other Allowances	Total 2022
i) Company Secretary	1 980	305	-	48	638	247	3 218
ii) Executive: Corporate Services	n/a	n/a	n/a	n/a	n/a	n/a	n/a”

-END-

Reply:

A directive for all departmental senior managers (SMS members) to return to office was issued on 26 and 27 January 2022. The Department of Public Service and Administration issued a directive for all government officials to return to office with effect from 1 July 2022. This directive was communicated to the dtic officials on the same day.

I have been advised that a snap survey was conducted in early September 2022 which the Department says indicated that that six employees out of a total staff complement of 1 197 were working remotely. Five officials submitted medical certificates to support their request to work remotely and one person was incapacitated due to a motor vehicle accident. Subject to their medical condition, three officials will return within the next four months, whereas the remaining three are undergoing continuous assessment to determine when they are able to return.

I have asked the Department to prepare a further review of attendance to ensure that there is compliance with the policies and that attendance information is correctly reflected.

(2) No statement on this matter will be made as the information is provided above.

-END-

Reply:

I have been furnished with the attached reply to the question submitted by the Acting Commissioner of the National Lotteries Commission.

 

 

Reply:

I have been furnished with the attached reply to the question submitted by the Acting Commissioner of the National Lotteries Commission.

Reply:

The previous Commissioner of the National Lotteries Commission (NLC), had furnished me with the following response to the questions:

1. The Board members earned meeting fees for bid evaluations as detailed under Question 3.

2. What number of meetings did each board member attend during the last bid evaluation which resulted in Ithuba being awarded the lottery operator licence?

BOARD MEMBER	2013/14	2014/15
	No of Meetings	No of Meetings
Prof NA Nevhutanda	-	15
Adv. JC Weapond	23	15
Prof G Reddy	8	15
Ms M Mokoka	14	15
Ms TS Kekana	-	19
Ms NEP Loyilane	-	14

3. (a) Name of each board member who was involved and (b) total amount that each member earned during the previous licence adjudication.

BOARD MEMBER	2013/14	2014/15
	R’000	R’000
Prof NA Nevhutanda	-	228
Adv JC Weapond	167	114
Prof G Reddy	10	88
Ms M Mokoka	45	112
Ms TS Kekana	-	76
Ms NEP Loyilane	-	121

4. Previous and/or current board members earned to date for attending meetings and/or other tasks related to the current adjudication for the new licence due to be awarded in 2023.

BOARD MEMBER	2020/21	2021/22	2022/23
	R’000	R’000	R’000
Prof NA Nevhutanda	389	-	-
Adv. WE Huma	348	-	-
Prof YN Gordhan	361	114.11	-
Dr MA Madzivhandila	393	75.65	-
Ms DLT Dondur	436	108.92	-

5. The budget allocated for Board emoluments for member’s role in adjudicating amounts to R4, 594,015.00.

-END-

Reply:

The National Lotteries Commission has furnished me with the following response to the question, for the period to the end of the 2021/22 financial year.

a) Board Fees

BOARD MEMBER	i) 2019/20	ii) 2020/21	iii) 2021/22
	R’000	R’000	R’000
Prof NA Nevhutanda	1 572	996	-
Adv. WE Huma	946	979	329
Prof YN Gordhan	1 106	1 133	1 755
Dr MA Madzivhandila	1 111	1 117	1 524
Ms DLT Dondur	1 066	1 210	1 853
* Ms Z Brown	-	-	-
Dr CR Lubisi	-	-	15
Ms BD Ferguson	-	-	24
Ms PK Mvulane	-	-	28
Mr W Hofmeyr	-	-	24

* Ms Brown is Minister’s designate to the Board, employed in the public service, therefore not eligible for Board emoluments.

b) Provident Fund

Board members are not staff of the Commission, therefore not eligible for Provident Fund benefit.

c) Travel Allowance

BOARD MEMBER	i) 2019/20	ii) 2020/21	iii) 2021/22
	R’000	R’000	R’000
Prof NA Nevhutanda	442	10	-
Adv. WE Huma	159	9	-
Prof YN Gordhan	312	5	-
Dr MA Madzivhandila	234	22	40
Ms DLT Dondur	298	6	-
* Ms Z Brown	-	-	-
Dr CR Lubisi	-	-	1
Ms BD Ferguson	-	-	11
Ms PK Mvulane	-	-	5
Mr W Hofmeyr	-	-	-

* Ms Brown is Minister’s Representative employed in the public service therefore not eligible for Board emoluments

d) Cell Phone Allowance

BOARD MEMBER	i) n2019/20	ii) 2020/21	iii) 2021/22
	R’000	R’000	R’000
Prof NA Nevhutanda	21	41	-
Adv. WE Huma	14	55	9
Prof YN Gordhan	14	55	55
Dr MA Madzivhandila	14	55	46
Ms DLT Dondur	14	55	55
* Ms Z Brown	-	-	-
Dr CR Lubisi	-	-	-
Ms BD Ferguson	-	-	-
Ms PK Mvulane	-	-	-
Mr W Hofmeyr	-	-	-

* Ms Brown is Minister’s Representative employed in the public service therefore not eligible for Board emoluments

e) (i),(ii),(iii)

Performance Bonus

Board members are not staff of the Commission, therefore not eligible for Performance Bonus.

-END-

Reply:

The National Lotteries Commission has furnished me with the following response to the question. It should be noted that the sums paid out are currently the subject of evaluation and an investigation. Where any wrongdoing is found to have been committed, firm action will be taken.

a) Basic Salary

DESIGNATION	(aa) 2019/20	(bb) 2020/21	(cc) 2021/22
	R’000	R’000	R’000
i. Commissioner	3 032	3 085	3 384
ii. Chief Operations Officer	2 422	2 465	465

b) Provident Fund

DESIGNATION	(aa) 2019/20	(bb) 2020/21	(cc) 2021/22
	R’000	R’000	R’000
i. Commissioner	59	60
ii. Chief Operations Officer	367	373	398

c) Travel Allowance

DESIGNATION	(aa) 2019/20	(bb) 2020/21	(cc) 2021/22
	R’000	R’000	R’000
i. Commissioner	144	144	133
ii. Chief Operations Officer	120	120	120

d) Cell Phone Allowance

DESIGNATION	(aa) 2019/20	(bb) 2020/21	(cc) 2021/22
	R’000	R’000	R’000
(i) Commissioner	-	-	-
(ii) Chief Operations Officer	48	48	48

e) Performance Bonus

The Performance Bonus is determined and paid out in terms of the Performance Management and Short-term Incentive Policies. Bonus amounts disclosed in the Annual Financial Statements are actual bonus payments for the prior financial year as bonuses are paid one year in arrears. The 2019/20 bonuses were paid in October 2020 which was during the 2020/21 financial year. The amounts are disclosed at gross amounts prior to deduction of Pay as You Earn (PAYE).

(i), (ii)

DESIGNATION	(aa) 2019/20	(bb) 2020/21	(cc) 2021/22
	R’000	R’000	R’000
Commissioner	500	250	*354
Chief Operations Officer	442	976	# 0

* Provisioned amount pending outcome of Audit of Performance Objectives

# Not eligible for participation in accordance with the NLC’s Performance Management and Short-Term Incentive

Policies Short-Term Incentive Policy

-END-

Reply:

The project is under the control and management of the Limpopo province.

The Department has contacted the CEO of Musina-Makhado Special Economic Zone (MMSEZ) in order to respond to the questions posed, and the CEO has furnished the department with the following reply:

1. The project is behind schedule due to delays in the process of securing Environmental Impact Assessment (EIA) authorisation on time. The timelines for the implementation of the Musina-Makhado Special Economic Zone (MMSEZ) are dependent on amongst others, the granting of the environmental authorisation. The environmental authorisation granted on 23rd February 2022 is currently the subject of an appeal process. As a result, no development can take place on the site until the appeal processes are completed.

2. Environmental authorisation was granted on 23rd February 2022 and currently undergoing appeal process.

3. It is anticipated that majority of the job opportunities to be created in the MMSEZ will benefit the people of Limpopo, based on the available skills. Priority will be given to local entrepreneurs for the majority of business opportunities in line with the existing government policies and regulations. A comprehensive enterprise development strategy has been developed for the integration and empowerment of local Small, Medium and Micro Enterprises (SMMEs) in the implementation of the project.

The Honourable Member is encouraged to engage directly with the province and the SEZ Management to get more details about the project.

-END-

Reply:

I advise the Honourable Member that the management of the SEZ is with the Provincial government and queries should be directed to the appropriate sphere.

To assist with the question, the Department sent the question to the CEO of Saldanha Bay Industrial Development Zone (IDZ), who provided the following information:

(A) Investor Names	(B) Investment Amount (Rm)	(C) Industry / Sector	(D) Status of Operations
West Coast Corrosion Protection (WCCP) [SEZ Facility]	25,00	Manufacturing, repair & installation	Operational
Off-Shore Supply Base Saldehco	92,00	Maritime	Operational
Anchora Enterprises	1400,00	Maritime	Construction to commence
Cape Oceans Terminals	2000,00	Energy	Construction to commence
New Tenant SEZ Facility	1500,00	Medical	Lease negotiation underway
New Tenant SEZ Facility	1300,00	Renewable	Lease negotiation underway
Chemie Tech/Goal	900,00	Chemicals	Delay in environmental permits
ALE/Mammoet (Q1’21)	24,00	Logistics	Contract Completed
Absolute Wind (Q1’21)	2,50	Logistics	Contract Completed
Rennies (Q1’21 & Q4’20)	1,08	Logistics	Operational
Total	7244,58

a) Column A – name of companies that have invested;

b) Column B – total amount invested to date by each company; and

c) Column C – details of the industry / business conducted by each company.

Column D indicates the actual operational status of each investment. Only three (3) companies are operational and the rest are at different stages of: contracting, lease drafting, or to commence with construction. The SEZ does not yet wish to have details of two tenants published until the transactions have been completed.

-END-

Reply:

The Department has provided a brief report on the work done on updating the previously approved standards. It does not adequately explain the need for the time taken and I have requested a more detailed reply. A supplementary reply will be furnished within a week.

I have also requested the Department to review the processes to ensure that they are not cumbersome and that duplications in processes are removed, as part of the red-tape review.

-END-

Reply:

1. I am advised that the proposed specifications were published for public comment and that the dtic has considered the comments and is currently finalizing the publication of the Compulsory Specification for Performance of general service lamps (VC 9109); and the Safety of general service lamps (VC 9110).

The new specifications are expected to be published in the Government Gazette by September 2022.

2. The Department does not table technical regulations/compulsory specifications at the National Assembly prior to implementation. The matter is regulated by section 13(1) of the National Regulator for Compulsory Specifications Act, 2008 (Act No. 5 of 2008) which prescribes the process for finalizing regulations. The Honourable Member is encouraged to provide any submission on the matter to the Department within the next two weeks. Although the deadline for public comment has passed, I will request the Department to take these into account prior to submitting their final report to me. the dtic and the technical agencies would be subject to oversight by the National Assembly through the Portfolio Committee in relation to the work they have undertaken.

-END-

Reply:

The IDC provides funding for companies based on the mandate to industrialise the economy and support broadening the base of the economy. A number of IDC investments are successful whilst some projects fail, for a range of reasons. These reasons may include changes in market conditions resulting in changes in either demand or costs, failure by investors to adhere to their commitments and counter-party challenges.

As a development finance institution, the IDC will normally take a higher risk profile than commercial banks.

The IDC publishes information in its annual reports on loans and equity approvals or disbursements that it makes and the level of impairment to its book, which includes amounts written off. In a number of cases, the IDC pursues recovery of funds where there is a legal basis for doing so, for example, that an investor has applied the funds for purposes different to what is in the funding agreement.

I have requested the IDC to review a number of its transactions in East London with a view to identifying common or unique reasons for investment projects failing or succeeding and will provide the Honourable Member with a supplementary reply on conclusion of the study, citing specific project details as appropriate.

-END-

Reply:

Industrial Parks fall within the responsibility of Provinces and in some instances, municipalities. The dtic considers requests for funding for infrastructure improvements, typically on areas such as fencing and security. The Department has tabled a report on SEZs and Industrial Parks at the Portfolio Committee of Trade and Industry, addressing the challenges with the existing model and the need for reform.

The Department has provided more details on developments relating to the Ekandustria Industrial Park, which I set out below.

It advises that the Ekandustria Industrial Park application for Phase 2, was submitted on 10 November 2020 by Mpumalanga Economic Growth Agency (MEGA) to DBSA. This was to solicit assistance from DBSA to finalise the Bill of Quantity and Project Schedule before submission to the dtic. The department has not adjudicated on the application from MEGA for Ekandustria due to incomplete information and delays in responding to requests to provide the outstanding information. In an effort to assist the Province, the IDC based PMU project support team has been requested to provide support.

In respect of the second part of the question, the Department advises:

(a) (i) – (iii)

There was no budget sum set aside because the Phase 2 application has not been submitted for the 3-years in question.

(b) No Phases were delivered and implemented prior to application approval being granted.

(c) (i) – (ii)

Further Phase development is dependent on Phase 2 approval being granted and successfully implemented.

(d) There are no budgetary estimates applicable since no application has been approved for the said period.

-END-

Reply:

During the Budget Vote on Trade and Industry, I noted that building an enabling environment for industrialisation requires securing our key network infrastructure, such as energy and logistics, and protecting our electrical grid and rail network from the continued threat of scrap metal syndicates. I committed that by the end of July, the Department will have developed and tabled a draft policy on scrap metal, which will introduce a blend of domestic and export measures to address illegal trade in copper cable and scrap metal.

Since then, research has been completed and Cabinet has been briefed on the overall strategy. A document setting out the draft policy is being developed and will be published for public comment shortly.

-END-

Reply:

The question replied to in PQ 1464 dated 22 April 2022. See submitted reply below.

Reply:

First, proposals to address a broad public policy on dealing with wage gaps in industry, were developed and drafted into legislation, in the form of a Companies Amendment Bill, 2021 (the Bill)

Second, these proposals were discussed with social partners in Nedlac, where the principle of disclosure of the wage gaps and responsibilities assigned to shareholders, were agreed

Third, Cabinet was briefed on the proposed changes

Fourth, the proposals were published for public comment.

The public comments are currently being considered and in the Department’s Budget Vote this year, I indicated that the anticipated timeframe for the Bill be submitted to Cabinet for consideration, which is within the next three months.

-END-

Reply:

I have been furnished with the attached reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

-END-

Reply:

The Commissioner of the National Lotteries Commission (NLC), Ms Thabang Mampane has advised as follows:

(a)(i) and (ii) Provincial breakdown of the total number of applications received,:

Provinces	2020/21	2021/22
Gauteng	1 183	1 867
Mpumalanga	545	889
Limpopo	1 354	1 796
North West	324	421
Northern Cape	346	370
Eastern Cape	1 133	1 456
Free State	622	1 006
Western Cape	576	907
KwaZulu-Natal	1 376	2 270
Total	7 459	10 982

(b) Funding applications per legislated sector:

Sectors	2020/21	2021/22
Arts, Culture and National Heritage	2 129	2 797
Charities	3 061	4 880
Miscellaneous	203	154
Sports and Recreation	2 066	3 151
Total	7 459	10 982

(c) Total number of applications funded per sector:

Sectors	2020/21	2021/22
Arts, Culture and National Heritage	631	677
Charities	861	893
Miscellaneous Purpose	24	26
Sports and Recreation	1 121	1 698
Total	2 637	3 294

-END-

Reply:

I have been furnished with the attached reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission.

 

-END-

Reply:

The Commissioner of the National Lotteries Commission (NLC), Ms Thabang Mampane has advised as follows:

“(1)(a) )(b)(i), )(ii), (c) and (2)

Neo Solutions is not engaged in any ICT related tender or contract with the NLC neither is the NLC aware of any affiliate of Neo Solutions currently involved in any ICT related tender.

-END-

Reply:

The Copyright Review Commission set up by the Department, considered the matter and its report recommended as follows:

“The Copyright Act must be amended to include a section modelled on that in the US Copyright Act providing for the reversion of assigned rights 25 years after the copyright came into existence. Such an amendment will go far to relieve the plight of composers whose works still earn large sums of money that are going to the assignees of the composers’ rights long after the assignees (or their predecessors) have recouped their initial investment and made substantial profits, in excess of those anticipated when the original assignment was taken”, page 102.

The Copyright Amendment Bill, 2017 and the Performers’ Protection Amendment Bill, 2016 Bills addresses the challenges of musicians in terms of the Copyright Review Commission report.

One of the amendments to the Copyright Act (Act No. 98 of 1978) is limiting the period of assignment to 25 years in order to aid musicians and creators to reclaim the rights to their copyright which was assigned to a producer or publisher, because they can exploit those works after 25 years when it reverts to the musician and creator.

One of the challenges musicians face is unfair contracts signed on a work that continues to make significant returns over time including after those assigned have recouped initial investment. In many cases, the musicians have signed the rights away in assignments and earn no royalties or income to those works and are locked in those contracts without economic benefits accruing to them. The Department advises that in a number of cases, musicians would have been paid a very small initial once off amount for their original work. This provision in section 22 of the Bill ensures that the musicians can have access to the copyright in musical or literary works after 25 years of such assignment.

The Copyright Tribunal under the Act has limited scope and jurisdiction. The scope of matters the Tribunal may hear has been extended to all Copyright matters in the Bill, therefore addressing issues of access. Regulations will further empower how the Tribunal will operate once the legislation has been finalised. The Department and the Companies and Intellectual Property Commission will embark on education and awareness programmes on the amendments to educate citizens on the changes.

On 16 June 2020, the President referred the Copyright Amendment Bill, 2017 and the Performers’ Protection Amendment Bill, 2016 back to the National Assembly to address constitutional issues. The remitted Bills are currently before the Portfolio Committee on Trade, Industry and Competition, and will be referred to the National Council of Provinces for consideration thereafter.

-END-

Reply:

The Department has embarked on a process to review posts on the organogram for the following reasons:

• First, in order to create a fit for purpose capacity, aligned to the new Strategic Plan and Annual Performance Plan
• Second, to address the potential duplication caused by the merger of the Economic Development Department (EDD) and the Department of Trade and Industry (DTI) into the new Department which was based on transferring all the posts of both departments to the new Department.
• Third, to align staffing to the available budget in light of reductions in the Department’s operating budget; and
• Finally, to take account of changes in technology and greater use of virtual platforms that requires a change in the skills sets in the Department and may make some functions redundant while requiring new skills and functions.

In the next phase of the consolidation of the Department, a revised staff structure is being developed. This is done in a manner that enables the core work of the Department to not be interrupted. This includes too a review of the organogram of the Department and will also benefit from consultation and staff feedback.

The new APP will require specific skills gaps to be identified and posts created. To avoid the bureaucracy expanding, current funded posts will be converted to the new skills profiles required. For example, the following skills needs have been identified to date:

• Business turnaround skills to assist companies undergoing challenges in the market
• Facilitation, social negotiation and engagement skills required to help unlock economic opportunities through Master Plans and firm-level compacts
• Financial analysis of company accounts and analysis of trade and other economic trends and data; and
• Facilitation skills to assist firms to expand their export footprints, including through accessing market opportunities through bilateral trade agreements.

The Ministry has further requested that the number of posts be reviewed to ensure (a) that a greater portion of the staff budget goes to front-office delivery staff instead of administration (which currently accounts for 33% of the staff); and (b) that the ratio of budget committed to staff compared to direct support to industry be reviewed, to identify ways of increasing budget allocation to industrial support measures.

The following staff numbers apply to the Department:

A total of 1 176 staff were in the employ of the Department as at 31 March 2022. This number includes staff appointed on contract.

As at 31 March, in light of the review described above, there were 9 vacancies that had been approved and declared with a process commencing to fill the following posts:

• Director-General: 1
• Deputy Directors-General: 3
• Chief Directors: 2
• Directors: 1
• Deputy Directors: 2

Of these, 2 have subsequently been filled and an offer has been made for a third person.

A further 130 positions are subject to the review set out above, which will be completed as follows:

• With effect from 1 June 2022, 33 posts have been approved for advertising and filling, as follows:
  • Chief Directors: 7
  • Directors: 11
  • Deputy Directors: 13
  • Assistant Directors: 2

• By end August 2022, the draft new draft organogram which will include details on the posts to be retained, will be completed. This will allow for consultation and feedback and for the final organogram to be completed and relevant parts to be implemented within the timeframes set out in the Annual Performance Plan of the department.

One DDG post is kept vacant until the return of the Ambassador to the WTO, who is retained at DDG level by the DTIC.

Appointments on contracts for a limited period will be approved to address short-term and urgent needs whilst the organogram process is being completed.

-END-

Reply:

I am advised by the Department as follows:

1. Information for 2019/20 on Communications, Marketing and Media services is classified according to the economic classification per the Annual Financial Statements. The related expenditure is contained in the Statement of Financial Performance and the notes to the Annual Financial Statements (see pages 140 and 260 of the dtic 2019/2020 Annual Report). Information on the details of service providers and services provided, is being compiled and will be provided shortly.

2. Information for the 2020/21 financial year was previously provided to the Member in response to PQ No. 1140 (published 07 May 2021).

3. Information for 2021/2022 financial year will be published in the Annual Report of the dtic once the AGSA has completed its audit.

The department further advises that all services were procured from suppliers registered on the National Treasury’s database and were in full compliance with the Supply Chain Management Policy of the department and in accordance with National Treasury’s prescripts. Single source procurement was only done when one supplier was qualified to fulfil the requirements in line with the objectives of the marketing brief.

-END-

Reply:

(a) and (b)

Following the retirement of the former Director-General, the Department advertised the position in July 2021. At the same time, a process to consider a reconfiguration of the Department commenced, which process was put on hold to enable staff to focus on the work required to support firms and workers affected by the July unrest last year. A Transition Team of three senior staff was put in place, with two Deputy Directors General and the Chief Financial Officer. The approach also provided leadership stability during this key period leading up to the conclusion of the Annual Performance Plan and the Budget of the Department. This affected the timelines on the recruitment processes. The recruitment process is now recommencing following the completion of the Department’s Annual Performance Plan.

-END-

Reply:

I have been advised by the IDC and NEF as follows:

Industrial Development Corporation (IDC)

The IDC set aside a R800 million fund that gave financial support to companies providing essential supplies to address the COVID-19 Pandemic. This fund includes R300 million from the Department of Trade, Industry and Competition’s Manufacturing Competitiveness Enhancement Programme (MCEP). The table below provides details of the companies supported by the COVID Essential Supplies Fund.

Applicant Name	MCEP Finance	IDC Finance	Total Approved	Total Disbursed
Supra Healthcare	30,000,000	100,000,000	130,000,000	130,000,000
Alternative Living and Technical Solutions for Africa (Pty) Ltd	-	27,000,000	27,000,000	25,639,250
Amka Products (Pty) Ltd	30,000,000	120,000,000	150,000,000	150,000,000
Pharmapac (Pty) Ltd	16,000,000	4,000,000	20,000,000	19,993,500
Blend Tech (Pty) Ltd	30,000,000	27,000,000	57,000,000	56,875,793
Starrate (Pty) Ltd	-	5,000,000	5,000,000	5,000,000
Maba Africa (Pty) Ltd	1,400,000	3,600,000	5,000,000	5,000,000
Isondo Investments (Pty) Ltd	1,200,000	300,000	1,500,000	1,500,000
Crystal Pier 148 (Pty) Ltd	12,000,000	14,000,000	26,000,000	10,728,407
Starrate (Pty) Ltd		13,000,000	13,000,000	13,000,000
GQ Tissue Products (Pty) Ltd	13,000,000	7,200,000	20,200,000	20,200,000
Grand Total	137,000,000	398,531,730	535,531,730	437,936,950

National Empowerment Fund (NEF)

The NEF set aside R200 million to provide financial assistance to companies that manufacture and supply essential products for Covid-19. A total of R211 million support was approved to the following beneficiaries:

-END-