Questions and Replies

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20 April 2018 - NW978

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Matsepe, Mr CD to ask the Minister of Economic Development

How much land does (a) his department and (b) the entities reporting to him (i) own, (ii) have exclusive rights to and/or (iii) lease from the State to (aa) use and/or (bb) occupy?

Reply:

The Economic Development Department, ITAC, Competition Commission and Competition Tribunal do not own land and currently rents office space. Attached as Annexure ‘A’ is information on land which IDC owns. The properties are part of the IDC’s overall portfolio.

 

-END-

23 March 2018 - NW453

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De Freitas, Mr MS to ask the Minister of Economic Development

What incentive programmes are currently in place in respect of the importation of electric cars into the country; (2) Are there any plans regarding the high import duties; if not, why not; if so, (a) will this affect the high import duties and (b) what incentive programmes are planned?

Reply:

1. South Africa does not generally incentivise the importation of goods into the economy, as policy is directed at building local industrial capacity. In terms of tariff support, the Automotive Production and Development Programme (APDP) provides an incentive for promoting local manufacturing of motor vehicles and not imports. The duty credits earned by the industry on production under the APDP can be used, among other things, to rebate import duties on electric vehicles if industry chooses to do so.

2. The existing 25% import duty on motor vehicles serves to support and encourage domestic investment and employment in the automotive industry in line with the APDP objectives. The dti is leading this area of work and will be engaging the sector in due course about prospects to localise the assembly of electric vehicles.

-END-

23 March 2018 - NW709

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Tarabella - Marchesi, Ms NI to ask the Minister of Economic Development

Whether his department has a sexual harassment and assault policy in place; if not, (a) why not and (b) by what date will his department have such a policy in place; if so, (i) how are reports investigated and (ii) what are the details of the consequence management and sanctions stipulated by the policy; (2) (a) what is the total number of incidents of sexual harassment and assault that have been reported in his department (i) in each of the past three financial years and (ii) since 1 April 2017, (b) what number of cases were (i) opened and concluded, (ii) withdrawn and (iii) remain open based on the incidents and (c) what sanctions were issued for each person who was found to have been guilty?

Reply:

1. The Department has a sexual harassment policy which was approved and signed on the 15 December 2011. This policy is currently under review. The details of the consequence management and sanctions stipulated by the policy can be found in sections 3.4 to 3.7 of the policy document that will be forwarded separately to the Member.

2. I am advised that the Department has no reported incident of sexual harassment.

-END-

28 February 2018 - NW315

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Bara, Mr M R to ask the Minister of Economic Development

What amount did (a) his department and (b) each entity reporting to him spend on the promotion or celebration of the Year of O R Tambo on the (i) Africa News Network 7 channel, (ii) SA Broadcasting Corporation (aa) television channels and (bb) radio stations, (iii) national commercial radio stations and (iv) community (aa) television and (bb) radio stations since 1 January 2017?

Reply:

In response to the questions:

a) The Accounting Officer advises no expenditure was incurred

b) The Accounting Officers advise that no expenditure was incurred

-END-

04 December 2017 - NW3676

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Cardo, Dr MJ to ask the Minister of Economic Development

(1)Whether the shareholders of a certain company (name furnished) have any connection or link with any (a) member of and/or (b) associate of a certain family (name furnished); if so, what are the relevant details; (2) whether any (a) member of and/or (b) associate of the specified family is a (i) shareholder or (ii) beneficiary of the specified company; if so, what are the relevant details?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which follows below.

“There are no known members of the Gupta family that are Shareholders at Foskor. Historically the IDC has not been aware of any links by the Foskor Shareholders to the Gupta family.

Subsequent to the parliamentary question to the IDC, an extensive search to establish any links was undertaken.This search revealed no link to Coromandel International Limited, Sun International (FZE) Dubai, Kopano Foskor Employees Trust (SPV 3) and Ba-phalaborwa and Umhlathuze Community Trust (SPV 2). A link was however established with the Manyoro Consortium (SPV1).

To our knowledge, a possible connection is that of a Ms R Govender, with an ultimate indirect percentage in Foskor of 0,23% of the equity via the Manyoro Consortium. The consortium is a broadly held BEE entity. Ms R Govender is not involved in Foskor operations. Following the parliamentary question we have since established that she serves as a director in companies with Gupta family shareholding.”

Mr MG Qhena, IDC Chief Executive Officer, 1 December 2017

For further information, a list of Foskor Shareholders is tabulated below.

Industrial Development Corporation Ltd

59%

“Coromandel” under the following legal entities:

  • Coromandel International Limited (2.82%)
  • CFL Mauritius Limited (11.82%)

14%

Sun International (FZE) Dubai

1%

Manyoro Consortium (SPV 1)

15%

Kopano Foskor Employees Trust (SPV 3)

6%

Ba-phalaborwa and Umhlathuze Community Trust (SPV 2)

5%

-END-

04 December 2017 - NW3678

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

What are the details of the (a) (i) names and (ii) nationalities of each client who received phosphates and phosphoric acid exports from Foskor as indicated in the 2016 Integrated Report and (b) amount of (i) product exported and (ii) revenue generated from each export?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which follows below.

A) EUROPE MARKET:

Nationalities: Switzerland, Belgium, France, Lithuania

Amount of product sold:

17 268 mt P₂O₅ (phosphoric acid)

574 776mt Rock

B) MIDDLE EAST / ASIA MARKET

Nationalities: India, Saudi Arabia and United Arab Emirates

Amount of product sold:

5 988mt P₂O₅ (phosphoric acid)

50 484mt Rock

C) SOUTH AMERICAN MARKET

Nationalities: Colombia

Amount of product sold:

30 000mt Rock

D) JAPANESE MARKET

Nationalities: Japan

Amount of product sold:

40 190mt P₂O₅ (phosphoric acid)

20 000mt Rock

F) NEW ZEALAND MARKET

Nationalities: New Zealand

Amount of product sold:

60 000mt Rock

Total revenue from above amounts to R2 129m.

FOSKOR does not publicise details of its individual customers and prices as these are regarded as commercially sensitive information.

-END-

04 December 2017 - NW3732

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Mbatha, Mr MS to ask the Minister of Economic Development

(1)Whether (a) his department and/or (b) entities reporting to him procured services from a certain company (name furnished); if so, (i) what services were procured in each case and (ii) what is the total amount that was paid to the specified company in each case; (2) whether the specified company provided services related to international travel to (a) his department and/or (b) entities reporting to him; if so, (i) what is the name of each person who travelled, (ii) what was the travel route and (iii) what is the total amount that was paid for each person?

Reply:

1. The Economic Development Department has procured services from Travel with Flair (TWF) in the 2016/17 financial year. The following services were procured: air travel (domestic and international), car rental, accommodation, shuttle services, and conference venues. The total amount paid in service fees to the company amounted to R 203 541.

2. The international visits were as follows:

  • Rwanda – World Economic Forum Africa (Minister Patel and support staff Dr DM Pule)
  • Iran – State Visit (Minister Patel and support staff Dr DM Pule)
  • Papau New Guinea – Summit of African Caribbean and Pacific Countries (Minister Patel and support staff Mr D Nkosi)
  • Switzerland – World Economic Forum (Minister Patel and support staff Miss A Appolis)
  • Vietnam and Singapore – Deputy President Bilateral Visit (Deputy Minister Masuku and support staff Ms S Shongwe)

A total amount of R 4 253 in service fees was paid to TWF for the travels. In each visit, the Minister or Deputy Minister were accompanied by one (1) official.

3. Entities reporting to the department (IDC, Competition Commission, Competition tribunal, ITAC) did not make use of TWF services.

-END-

29 November 2017 - NW3567

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Kopane, Ms SP to ask the Minister of Economic Development

(a) What is the total number of supplier invoices that currently remain unpaid by (i) his department and (ii) each entity reporting to him for more than (aa) 30 days, (bb) 60 days, (cc) 90 days and (dd) 120 days and (b) what is the total amount outstanding in each case? NW3995E

Reply:

a) The Economic Development Department, IDC, ITAC and Competition Tribunal EDD do not have any outstanding supplier invoices that remain unpaid for more than 30 days.

b) The Competition Commission currently has 40 outstanding invoices.

C:\Users\NPSHAB~1\AppData\Local\Temp\XPgrpwise\IMAGE.png

The reasons are as follows:

Banking Details outstanding: 13

Unresolved dispute with the supplier: 9

Supply Chain Documents outstanding: 18

The Competition Commission is still in discussion with the suppliers to have all payments resolved.

-END-

29 November 2017 - NW3436

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Mbatha, Mr MS to ask the Minister of Economic Development

(1)How many officials and/or employees in his department were granted permission to have businesses and/or do business dealings in the past three financial years; (2) are any of the officials and/or employees that have permission to have businesses and/or do business dealings doing business with the Government; if so, (a) what was the purpose of each business transaction, (b) when did each business transaction occur and (c) what was the value of each business transaction?

Reply:

One staff member was granted permission to participate in her own business, which does not have any dealings with government (selling ice cream over weekends).

Two other staff members were permitted to serve on boards as follows:

  • One person was a member of the board of the Government Employees Medical Aid Scheme (GEMS), and
  • One employee, who was on a short-term contract, was permitted to continue to serve on the board of the Health Professions Council of South Africa (HPCSA).

-END-

13 November 2017 - NW3298

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Mbatha, Mr MS to ask the Minister of Economic Development

Whether the (a) chief executive officer and (b) chief financial officer of entities reporting to him are employed on a permanent basis; if not, 2. Whether the specified officers are employed on a fixed term contract; if so, (a) what are the names of each of the officers and (b) when (i) was each officer employed and (ii) will each officer’s contract end?

Reply:

Competition Tribunal :

  1. The Tribunal Chairperson (CEO equivalent), Mr Norman Manoim, is employed on a 5 year contract which will end on 31 August 2019.
  2. The Chief Operating Officer (CFO equivalent), Ms Janeen de Klerk, is employed on a permanent contract, since 1 September 2013.

Competition Commission:

  1. The Commissioner- Mr Tembinkosi Bonakele, is employed on a 5 year fixed term contract for the period 20 April 2014 to 20 April 2019.
  2. The CFO – Mr Molatlhegi Kgauwe, is employed on a 3 year fixed term contract for the period 14 March 2016 to 14 March 2019.

ITAC:

  1. The Chief Commissioner (CEO equivalent), Mr Siyabulela Tsengiwe is employed on a three-year contract, which will end on 31 December 2017.
  2. The Chief Financial Officer position is filled on an acting basis by Ms Lebogang Bogatsu whilst a suitable candidate is being recruited.

IDC:

  1. The CEO, Mr Geoffrey Qhena and CFO, Ms Nonkululeko Dlamini of the IDC are both appointed on five (5) year fixed term contracts as follows:
  • Chief Executive Officer appointed with effect from 1 March 2015 until 28 February 2020.
  • Chief Financial Officer appointed with effect from 1 September 2015 until 31 August 2020.

-END-

13 November 2017 - NW3158

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Mbatha, Mr MS to ask the Minister of Economic Development

(1) What are the details including the ranks of service providers and/or contractors from which (a) his department and (b) the entities reporting to him procured services in the past five years; (2) what (a) service was provided by each service provider and/or contractor and (b) amount was each service provider and/or contractor paid; (3) (a) how many of these service providers are black-owned entities, (b) what contract was each of the black-owned service providers awarded and (c) how much was each black-owned service provider paid?

Reply:

The department and its entities procured a variety of goods and services over the past 5 years, ranging from leasing accommodation, consultant services, travel and transport, ICT related goods and services etc. The quantum of these individual transactions run into the thousands on an annual basis.

Attached are detailed lists of goods and services procured by the department and its entities for the audited financial period 1 April 2016 to 31 March 2017.

See attachment

24 October 2017 - NW2998

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Lotriet, Prof A to ask the Minister of Economic Development

What is the (a) total amount that was paid out in bonuses to employees in his department and (b) detailed breakdown of the bonus that was paid out to each employee in each salary level in the 2016-17 financial year; 2. What is the (a) total estimated amount that will be paid out in bonuses to employees in his department and (b) detailed breakdown of the bonus that will be paid out to each employee in each salary level in the 2017-18 financial year?

Reply:

1. (a) R1 383 428.55 is the total amount that was paid out in bonuses to employees for the 2016/17 financial year.

(b) 1. Salary level 3 (3 employees) - R21 815.04

2. Salary level 5 (4 employees) - R30 787.35

3. Salary level 6 (4 employees) - R66 248.01

4. Salary level 7 (6 employees) - R112 082.79

5. Salary level 8 (12 employees) - R240 185.68

6. Salary level 9 (4 employees) - R113 389.05

7. Salary level 11 (5 employees) - R200 923.95

8. Salary level 12 (9 employees) - R393 625.73

9. Salary level 13 (2 employees) - R92 632.65

10. Salary level 14 (2 employees) - R111 738.30

2. This information is not yet available.

-END-

16 October 2017 - NW2482

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Cardo, Dr MJ to ask the Minister of Economic Development

(1)What (a) was the (i) value and (ii) purpose of the loan granted by the Industrial Development Corporation (IDC) to a certain person (name and details furnished) and (b) were the repayment terms of the specified loan; (2) whether the Deputy Minister of Public Enterprises, Mr Ben Martins, played any role in securing the loan for the specified person; if not, what is the position in this regard; if so, what are the relevant details; (3) whether the IDC has taken any steps to recover the loan; if not, (a) why not and (b) by which date will the IDC be taking steps; if so, what are the relevant details?

Reply:

I am advised by the CEO of the Industrial Development Corporation of the following details related to the question:

“The total value of the IDC approved loan was R48,5 million for the manufacture of compressed logs targeting mainly the braai and fireplace market. The logs were to be branded as Eco Blaze and manufactured from recycled green waste. There were repayment terms specified for the loan. The loan agreements are structured in line with the cash-flows of the business.

“The Deputy Minister of Public Enterprises, Mr Ben Martins did not play any role in securing the loan for Semona Eco.

“The IDC’s investment decision-making process is such that no single person can take a decision on whether or not to invest in a particular project. This is a decision reserved for various investment committees within the IDC.

“To date the IDC has obtained judgment against Semona Eco and its guarantors. Additional steps taken are listed below:

  • we have liquidated Semona Eco;
  • we have liquidated Semona Oil (a guarantor);
  • laying of criminal charges against Semona Eco & its officials with the Sandton Commercial Crimes Unit of SAPS;
  • the listing of Semona Eco and its officials on the list of entities and persons the IDC will not do business with; and
  • the institution of sequestration proceedings against Ms Lorraine Masipa (set down for hearing on 30 August 2017).”

Mr Geoffrey Qhena, IDC CEO.

-END-

16 October 2017 - NW2879

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Dreyer, Ms AM to ask the Minister of Economic Development

What is the detailed (a) breakdown of and (b) valuation for current and non-current assets and investments held by (i) his department and (ii) each entity reporting to him according to (aa) listed assets (aaa) directly held and (bbb) indirectly held and (bb) unlisted investments (aaa) directly held and (bbb) indirectly held by each of the entities, in each case breaking the current assets and investments down by 0-3 months, 3-6 months, 6-12 months and beyond 12 months?

Reply:

Details of current and non-current assets are available in the 2016/17 Annual Reports tabled in parliament for both the Department and its entities.

For the Economic Development Department, the details are contained from page 122 of the Audited Financial Statements. Similar details may be obtained in entity reports.

-END-

16 October 2017 - NW2483

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Cardo, Dr MJ to ask the Minister of Economic Development

With reference to his statement at the 11th Annual Competition Law, Economics and Policy Conference, which took place from 30 August to 1 September 2017, that South Africa loses about R27 billion of Gross Domestic Product and 76 000 potential jobs every year due to corruption, (a) on what research are these figures based, (b) how were the figures calculated and (c) in which sectors of the economy does the corruption occur?

Reply:

The information on the cost of corruption was based on an economic modeling exercise that sought to quantify the cost of the reduction in real capital spending that results from corruption and the impact on decreased spending in the SA economy on goods and services. While the full extent and thus real costs of corruption is unknown precisely because by its nature it is concealed, a calculation was done based on a scenario where corruption results in a 10% increase in costs; this increase was then modeled into the data-sets to obtain GDP and employment effects.

The purpose of the modeling exercise was to show that corruption is not a ‘victimless’ crime and that the opportunity costs of improperly and unlawfully diverting resources for private gain, comes at a significant cost to economic growth, job creation and service delivery. There is a compelling case for immediate and decisive action against corruption, based on the costs it imposes on the economy, on jobs and on the poor. The results of this modeling exercise were referred to in my speech at the 11th Annual Competition Law, Economics and Policy Conference on 31 August 2017 as well as at other public gatherings and were also shared with the Committees of the Economic Cluster, in Parliament, on 10 October 2017.

During my address to the 11th Annual Competition Law, Economics and Policy Conference on 31 August 2017, I noted the following:

Neither corruption in the public sector (with its private sector counterparties) nor collusion between large firms are victimless crimes. Corruption takes resources away from housing, jobs, social grants, education and health facilities. Collusion increases the costs of doing business, it stunts the dynamism and competitiveness that is needed and it has a negative impact on growth and jobs.

A World Bank study on competition in South Africa noted the following:

“In the case of four cartels in maize, wheat, poultry and pharmaceuticals – products which make up 15.6% of the consumption basket of the poorest 10 percent – conservative estimates indicate that around 200 000 people stood to be lifted above the poverty line by tackling cartel overcharges”.

We recently began doing work to quantify the cost of corruption in the public sector, based on just a 10% increase in the price of infrastructure projects as a result of corruption...Based on our modelling, it leads to at least R27bn foregone annually in GDP and the loss of 76 000 jobs that would otherwise have been created. So corruption is not only an ethical issue, it is also a profound issue of delivery, of growth, of servicesw to the poor.

There are some troubling matters to address in looking at corruption and the collusion therewith by professional firms, from auditors to lawyers and others.

The culture of rampant acquisition is spreading so widely that the professional standards of integrity that is a hallmark of functioning institutions, are under enormous pressure. One of its outcomes is a fraying of the social compact that all societies need and unless we act with resolution, we will not build a society that achieves the vision of the constitution, indeed, we will betray it.

There are things we can do, practical things, while the wider battle to ensure integrity in the public and private sectors, is pursued.

One of the provisions in the Construction industry Settlement Agreement that I referred to earlier, is an Integrity Commitment that CEOs of the seven largest companies signed publicly and I want to briefly quote from it:

“ In my capacity as CEO of [name of company], I do hereby declare and affirm that:

  1. I will conduct business, and will do everything in my power to ensure that the company and all of its associated companies (‘the Group’) conducts business in South Africa, in accordance with sound legal and ethical practice;
  2. I will not be involved, and will do everything in my power to ensure that no one in the Group is involved, in any kind of bribery, corruption, collusion or unfair means of furthering our business interests;
  3. I will do everything in my power to intill a culture of integrity, honesty and transparency in the Group consistent with this declaration
  4. I will develop and actively promote codes of conduct imposing ethical and legal standards on all personnel in the Group that are aligned with international best practice for the construction industry and impose appropriate penalties on those who don’t comply; and
  5. I will use my best efforts, and take firm steps, in line with and pursuant to my executive management authority, to expose, confront, eradicate and prevent collusion and corruption in the construction industry and in all the construction industry’s dealings with public entities, private sector institutions and with each other.”

-END-

16 October 2017 - NW2481

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

(a) what amount did the Industrial Development Corporation (IDC) spend (i) in total and (ii) in each medium on advertising in the 2016-17 financial year and (b) what was the IDC’s budget for advertising in the specified financial year?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which follows below.

(a) The total amount spent by IDC on advertising was R33 833 079.89 in the 2016-17 financial year (see table below).

(b) The IDC’s budget for advertising in the specified financial year (2016/17) was R38 000 000.

IDC Advertising spend:

Digital

Yonder Media – nett

74 666,67

 

Reprise - nett

296 804,79

 

LinkedIn

120 000,00

 

IOL

40 000,00

 

Gagasi Radio

23 850,00

 

CSRNEWSSA

15 544,91

 

Cadreon – nett

428 526,90

 

TOTAL DIGITAL

999 393,27

 

The Mercury

48 688,00

 

The Herald -17%

17 991,62

 

Stellander -17%

3 821,30

 

Rustenburg herald -Herout -17%

19 424,94

Loose Inserts (Newspaper)

Polokwane Observer

3 592,81

 

Platinum Weekly

13 600,00

 

Phalaborwa Herald - 17%

3 154,00

 

Mopani Herald - 17%

3 320,00

 

Mafikeng Mail -17%

9 553,25

 

Letaba Herald - 17%

4 399,01

 

Klerksdorp record -17%

12 737,67

 

Isolezwe

161 530,00

 

Hoedspruit Herald - 17%

2 656,00

 

Highvelder 17%

13 928,10

 

Gemsbok - Nett

28 651,15

 

Diamond Fields Advertiser

100 838,32

 

Capricorn Voice - 17%

7 453,77

 

Cape Times

197 604,79

 

Brits pos -17%

5 731,95

 

Bosveld Review - 17%

3 320,00

 

TOTAL INSERTS

661 996,68

Magazine

The Thinker Magazine

29 928,14

 

SA Grain/Graan

21 050,00

 

Public Sector Manager

32 935,00

 

Outlook Publishing

83 826,35

 

North West Business

35 868,00

 

Nelson Mandela Bay Business Chamber

10 778,45

 

MiningMX Yearbook

55 743,85

 

Landbouweekblad

39 650,00

 

KZN Top Business

52 163,66

 

Kazibiz

35 930,00

 

Infocom

4 670,66

 

Forbes Africa Women

53 892,22

 

Finweek - nett

147 852,00

 

Finweek

49 284,00

 

Financial Mail -17%

318 203,11

 

Financial Mail

60 030,00

 

Entrepreneur

78 560,00

 

Destiny Man

161 676,65

 

Destiny

203 592,81

 

CSI Handbook

35 928,14

 

CSI - The Human Face of Business

27 905,00

 

Africa's Most Influential Women in Business & Government

20 360,00

 

African Leader

18 000,00

 

ACUMEN

301 724,99

 

TOTAL MAGAZINE

1 879 553,04

Newspaper

Weekend Post 17%

27 017,25

 

Volksblad -nett

57 142,99

 

The Star

110 189,52

 

The Herald -17%

77 777,46

 

Sunday World -17%

35 104,53

 

Sunday Times-Business Times

448 092,00

 

Sunday Times - Business Times - 17%

1 113 522,04

 

Sunday Times - 17%

394 845,41

 

Sunday Sun -nett

39 513,77

 

Sowetan Newspaper - 17%

481 930,41

 

Sowetan Newspapers

62 694,00

 

Mail & Guardian - Business

315 900,00

 

Mail & Guardian

0,00

 

Lowvelder

158 676,60

 

Isolezwe - KZN Edition

158 024,71

 

Isolezwe - Eastern Cape Edition

100 396,80

 

Diamond Fields Advertiser

37 548,00

 

Daily News

53 035,92

 

Daily Dispatch - 17%

162 801,27

 

Daily Dispatch

23 328,00

 

City Press - nett

649 331,74

 

City Press - Business

201 517,20

 

Cape Business News

54 720,00

 

Cape Argus

69 672,96

 

Business Report (Star, Cape Times, Pretoria News, Mercury)

473 911,20

 

Business Report (Inc)

483 643,39

 

Business Day - 17%

330 272,41

 

Business Day

47 466,00

 

Bua Sedibeng News (Direct)

15 300,00

 

African Independent

42 325,25

 

TOTAL PRESS

6 225 700,81,

     

Out of Home

Provantage Media

305 389,22

 

PRIMEDIA Outdoor

928 742,98

 

Mall Media Company

173 652,69

 

JC Decaux South Africa Outdoor Advertising

934 131,74

 

Impact Outdoor Media

161 676,65

 

Face First Media

64 670,66

 

Connect Media Advertising Pty Ltd

59 881,44

 

Brand IQ

97 005,99

 

Boo Media - Billboards And Wraps

243 736,53

 

Ad Outpost (Pty) Ltd

136 526,95

 

TOTAL OOH

3 105 414,84

Radio

YFM

231 815,00

 

Vuma 103 FM

28 742,52

 

Umhlobo Wenene FM (Xhosa)

1 110 192,00

 

Ukhozi FM (Zulu)

1 528 410,00

 

Trufm

48 720,00

 

Thobela FM (N.Sotho)

561 444,00

 

SAFM

71 310,00

 

RSG (Radiosondergrense)

293 595,00

 

Radio Teemaneng - nett

69 820,36

 

Radio Riverside-nett

61 077,84

 

Phalaphala FM (Venda)

223 158,00

 

OFM

88 272,00

 

North West FM - 17%

38 647,19

 

Munghana Lonene FM (Tsonga)

248 157,00

 

Motsweding FM (Setswana)

1 031 092,00

 

Metro FM

1 096 710,00

 

Lotus FM

41 640,00

 

Ligwalagwala FM (Seswati)

914 569,00

 

Lesedi FM (Sesotho)

1 020 201,00

 

Kaya FM 95.9

345 240,00

 

Ikwekwezi FM (Ndebele)

253 227,00

 

Heart 104.9

126 780,00

 

Good Hope (Ghfm)

97 710,00

 

Gagasi Radio

523 217,64

 

FORTE FM

7 904,19

 

Energy FM

63 031,83

 

Capricorn Radio Direct - nett

130 000,00

 

Capricorn FM

137 700,00

 

Bosveld FM

12 594,45

 

BDA FM 17%

2 341,89

 

ALGOA FM-17% - united stations

110 427,98

 

5fm

357 600,00

 

TOTAL RADIO

10 875 347,89

Television

SABC 3

1 189 656,00

 

SABC 3

351 819,00

 

SABC 2

2 242 881,00

 

SABC 1

3 676 104,00

 

ETV

1 941 049,68

 

ENCA

684 181,68

 

TOTAL TVC

10 085 691,36

Grand Total

33 833 097,89

-END-

22 September 2017 - NW2567

Profile picture: Mbatha, Mr MS

Mbatha, Mr MS to ask the Minister of Economic Development

When are the application dates (a) opening and (b) closing for the board positions of all entities and councils reporting to him?

Reply:

  1. The Competition Commission is not required to have a board. In accordance with Section 22 of the Competition Act 89 of 1998, The Minister appoints the Commissioner and Deputy Commissioner.
  2. The Competition Tribunal is not required to have a board. In accordance with Sections 29 and 30 of the Competition Act 89 of 1998, The President, on the recommendation of the Minister, appoints the Tribunal Chairperson, Deputy Chairperson, full-time and part-time Tribunal members.
  3. ITAC does not have a board, but consists of a full-time Chief Commissioner and part-time Commissioners.
  4. IDC has a board in place and board members are reappointed, appointed or retired at the Annual General Meeting. The next AGM to consider board membership will take place in 2018.

-END-

22 September 2017 - NW2619

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Alberts, Mr ADW to ask the Minister of Economic Development

1. How many loans the Industrial Development Corporation has allocated to (a) individuals and (b) legal persons, including trusts, since 1 January 2000; 2. in respect of each person and/or legal person to whom the loan was allocated, what is the (a)(i) amount and (ii) basis of the loan, (b) what served as security for the loan, (c)(i) on which date was the loan allocated and (ii) what is the (aa) term and (bb) interest rate of the loan and (d) what amount of the loan has been repaid in each case; 3. (a) which of the loans will in all probability never be repaid, (b) what steps will be taken in respect of each one and (c) which loans will probably be converted into shares?

Reply:

The total number of transactions approved between January 2000 and March 2016 is 4450.

The IDC offers the following financing products:

  • term debt,
  • revolving credit facilities,
  • guarantees,
  • working capital loans,
  • business support loans and
  • quasi-equity (e.g. preference shares or subordinated loans).

The IDC may also take direct equity investments in companies at times.

The products and terms are structured in a way that will suit the business’ needs most appropriately and may be used on their own or in combination depending on the clients’ requirements.

Debt facilities have fixed repayment terms (monthly, quarterly, semi-annually or annually) determined by the cash flow of the company whereas equity-type transactions have longer terms and do not necessarily have fixed repayment terms, rather milestone or event based repayment terms and /or a bullet payment at a future date.

In respect of loan financing, IDC offers a discount when achieving the development objectives as determined by IDC from time to time.

Over the years the IDC has managed a range of different funds in an effort to respond to various needs in the economy, each with customised pricing. For example, the Gro-E Youth programme for youth-empowered enterprises (more than 25% equity held by youth) has a loan cost of prime less 3% and an equity cost-structure based on a 6% Real After Tax Internal Rate of Return and where jobs are created at a cost of below R500 000 per employment opportunity.

Prior to April 2017, the IDC had a client confidentiality framework in place that is typical for a financial institution. Since 1 April 2017, the IDC provides information on business partners that it funds, on the IDC website. Approvals for the first quarter of the 2017/18 financial year are available on the website.

In accordance with the above, the IDC assures me that it has mechanisms in place to ensure that in any transaction appropriate consideration is taken in terms of amounts approved, interest charged, and requisite security taken over and above the provision of post investment support provided to IDC funded clients.

Additional details may be accessed from the IDC Annual Reports, copies of which are tabled in parliament and which may also be accessed at www.idc.co.za

-END-

22 September 2017 - NW2605

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Mbatha, Mr MS to ask the Minister of Economic Development

(a) What is the current status of the Masorini Steel Project and (b) what amount has the Government spent on the specified project since its inception?

Reply:

IDC initiated the Masorini Iron and Steel Project (the “Project”) in 2010. The rationale for the project was to beneficiate local raw material and export semi-finished goods like steel products. The IDC completed a Project pre-feasibility study (“PFS”) for establishing a low cost iron and steel facility in South Africa based on the utilisation of high quality domestic raw material resources including Palabora magnetite (a by-product of copper mining) as the primary source of iron ore. In September 2014, HESTEEL (previously called Hebei Iron and Steel or “HBIS”), IDC and China Africa Development Fund (“CADFund”) signed a Memorandum of Understanding and started co-developing the Project.

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, which provides additional details and a status report on the Project.

Update provided by IDC CEO:

(a) The project was put on hold in July 2016 due to the persistent unfavourable global economic climate and continued over-supply in the global steel market which are expected to persist in the medium to long term. This affected the viability of the Project.

(b) Total expenses incurred amounted to R129.2 million since inception of the project in 2010. In lieu of benefits and lessons learnt, the IDC derived in-depth understanding of the country’s resources required to establish a low cost steel making facility over and above access to international steel producers and technology providers. The IDC was also able to develop a better appreciation of the technology suited for our resources including an understanding of why our upstream sector was not competitive internationally. In addition we were also able to use the information to redirect our strategy towards modularised steel making facilities (mini mills) which has had a positive impact in the lowering of “long” steel product prices which are now closer to international prices.

Under the initial study, this Project comprises a fully integrated 2.5Mtpa Iron and Steel Plant which extends from the reclamation and beneficiation of secured magnetite ore from 2 sites in Phalaborwa, to the production of iron and steel in Middleburg. The capacity of the Middleburg site in the initial PFS was 1.35Mpta of flat steel and 1.15Mpta of long steel.

Subsequent to the conclusion of the PFS, an opportunity in the steel sector was identified which would allow for the production of steel on two separate sites. The combined capacity of the sites in the current thinking will result in an increase in capacity to 3.5Mpta, split between 2,5Mpta of flat steel products and a 1Mpta of long steel products.

The PFS provide a compelling case to those international steel producers who had expressed serious intent in entering the South Africa and regional markets.

The plan was supported by:

  • The key attributes of the project, namely its ability to be the lowest cost steel producer in Sub Saharan Africa;
  • Proximity to both local and regional markets;
  • The availability of readily sourced stockpiled magnetite with a secure off take agreement;
  • The use of Rotary Hearth Furnace (“RHF”) technology which did not require the importation of expensive coking coal and was well suited to utilise the low cost ore available;
  • The location and availability of thermal coal to generate power and gas;
  • Access to infrastructure and outsourcing of logistics, gas and power utilities;
  • Market and Government support of modern lower cost facility operated by a new entrant, which would have been supported by downstream users of steel products, and offer an opportunity to acess new markets both within South Africa and the rest of Africa.

A Project Information Memorandum (PIM) was issued to invite participation from a selected group of global Companies to review the key findings, basis and supporting documentation on the PFS (herein referred to as the “Due Diligence”) with the specific objective of attracting participation with IDC in completing the Detailed Feasibility Study (“DFS”) phase.

A Participation Agreement was concluded with Heibei and signed to formalise the arrangements and commitments between the parties.

The Project formed part of the country’s strategic plan to reduce the local production costs of steel and thereby further stimulate economic growth.

South Africa is the natural choice for sourcing construction products, equipment and other manufactured goods in the SADC region and the Masorini enhanced this position.

Africa has proven to be relatively resilient during the recent global financial and economic crisis. Improved macro-fundamentals and increased intra-regional trade was major reason for this saturation of markets and low returns in many developed economies, driving growth in African economies. Neighbouring countries had experienced rapid economic growth in excess of the growth experienced in South Africa, and significant projects are either in progress or mooted in the continent.

This concluded:

  • Reclamation and Beneficiation Plant (RBP) – Illustrating what beneficiation is needed on the magnetite ore;
  • Iron and Steel Plant (ISP) – An in-depth study on the options available to produce iron and steel;
  • Gas and Power Island (GPI) - Describing the gas and power production plant;
  • Site Selection, Infrastructure and logistics – Explaining the site selection of the Masorini plant; and
  • Environmental and Socioeconomic Impact.

The Project is significantly advantaged by the availability of readily sourced stockpiled magnetite, and abundant low costs and otherwise stranded coal resources, which will enable the Project to produce finished products at a cost that will be lower than the project cost of other South African producers.

The information contained in the PFS is being used and will be used in some of the other projects that the IDC is developing.

-END-

11 September 2017 - NW2497

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Atkinson, Mr P to ask the Minister of Economic Development

(1) What are the details of the cases that were being investigated on the laptops that were stolen from the Competition Commission’s Cartel Conduct Investigation Unit on or about 8 August 2017; (2) whether the (a) serial numbers and/or (b) Internet Protocol Addresses of the stolen laptops can be traced; if so, have the laptops been recovered; (3) what are the details of all security measures that are in place at the Competition Commission’s head office in Pretoria to prevent burglaries at its offices; (4) whether any evidence relating to the break-in have been recovered from closed-circuit television cameras; if not, why not; if so, what are the relevant details; (5) (a) what is the case numbers of the cases opened at the SA Police Services in respect of the stolen laptops and (b) what is the status of the progress made in this regard as at the latest specified date for which information is available?

Reply:

On 8 August 2017, there was a break-in at the offices of the Competition Commission during which laptops containing details of current investigationsa by the Commission, were stolen. The Commission reported the matter to the SAPS and obtained case number CAS 293/8/2017 from the Sunnyside SAPS station. The matter was raised by the Minister of Economic Development with the Minister of Police. The case is being transferred to the Hawks.

Evidence in the possession of the Commission relating to the break-in have been handed over to the police to aid their investigation. No laptops have as been recovered.

Steps have been taken by the Commission following the break-in to improve security. I am sure the Honourable Member will appreciate that it would not be appropriate to place details of such measures in the public domain, nor furnish more information as the matter is currently under investigation by the law enforcement authorities.

-END-

11 September 2017 - NW2558

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Lekota, Mr M to ask the Minister of Economic Development

(1) What are the circumstances that resulted in the decision of the Industrial Development Corporation (IDC) to lay criminal charges laid against a certain person (name furnished); (2) whether he has found that the manner in which the IDC monitored matters related to the loan, including conditions attached thereto, was according to applicable regulations; (3) whether he has found that the manner in which the loan application to the IDC by the said businessperson was processed and approved by the IDC was in accordance with applicable regulations; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, to the question, which follows below.

1. “The circumstances resulting in the IDC laying criminal charges against the client are as a result of an audit finding which found that there was a material misrepresentation made by the company in its request for funding to the IDC, which amounted to fraud. Details of the case cannot however be disclosed, as the matter is still under investigation by the South African Police Services.

2. According to our records, IDC monitored matters related to the loan, including conditions attached thereto, according to applicable internal processes.

3. The loan to the business/company of the said businessperson, was processed and approved by the IDC in accordance with applicable IDC internal processes.”

-END-

25 August 2017 - NW2284

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Mbatha, Mr MS to ask the Minister of Economic Development

With reference to his reply to question 1874 on 31 July 2017, what was the monetary value of the tenders for which transaction advisers were used by (a) the Industrial Development Corporation’s appointment of Price Waterhouse Cooper Ltd for the Masorini Steel Project, (b) the Industrial Development Corporation’s appointment of PSG Capital for the UCW Transaction, and (c) the Industrial Development Corporation’s appointment of Ernst and Young and Rothschild (South Africa) for SCAW?

Reply:

The IDC from time to time undertake large transactions for which it requires advisory or technical support, often involving global consultancy firms with expertise in the areas concerned.

In the three transactions referred to, the IDC utilized specialist advisory skills for transactions with initial transaction value estimates set out in the table below:

No.

Name of Transaction Advisor

Tender description

Initial Monetary / Transcation Value

Tender pricing

Amount paid to date

1

PriceWaterhouseCoopers Incorporated

Transaction Advisory Services for the Masorini Steel Project

US$ 5 billion

R 3,506,800

R 3,049,919

2

PSG Capital (Pty) Ltd

Transaction Advisor for the UCW Transaction

R 550 million

R 2,351,114

R 2,351,114

3

Ernst & Young Advisory Services (Pty)

Transaction advisor on the Corporatisation of Scaw

R 6 billion

R 17,256,155

R 13,520,721

4

Rothschild (South Africa) (Pty) Ltd and Identity Capital Partners (Pty) Ltd Joint Venture

Transaction advisory services to the IDC to identify strategic equity partners to its subsidiary, Scaw

R 6 billion

R 17,500,000

R 7,579,905

 

END

17 August 2017 - NW2063

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Mbatha, Mr MS to ask the Minister of Economic Development

Whether (a) his department and/or (b) any entities reporting to him are funding, including by way of discretionary funding, any institution of research and development (i) domestically and/or (ii) internationally; if so, (aa)(aaa) what are the names of the specified institutions and (bbb) what are their functions, (bb) from what date has his department or any entity reporting to him been funding them and (cc) what amount has his department contributed towards such funding?

Reply:

The Economic Development Department, Competition Tribunal and ITAC are not funding any institution of research and development either domestically or internationally. Below are details of Competition Commission and IDC funding for institutions of research development.

Competition Commission

Beneficiary Institution

Function

Period of funding

Amount

University of Fort Hare

Establishment of the University programs on Competition Law and Economics

April 2017 (valid for one year)

R1 000 000.00

University of Stellenbosch

Establishment of the University programs on Competition Law and Economics

March 2017 valid for one year

R2 000 000.00

University of Johannesburg

Establishment of the University programs on Competition Law and Economics

March 2017 valid for one year

R1 000 000.00

Gordon Institute of Business Science

Establishment of the University programs on Competition Law and Economics

March 2017 valid for one year

R850 000.00

IDC

Beneficiary institutions

Function

Period of funding

IDC Grants over the past 5 years

Global Reporting Initiative

An international community of practice for sustainability reporting, Global Reporting Initiative is a pioneer in the development sustainability reporting over the last two decades.

1-year contract

Euro 14 000 x 1 year

SADC DFI Network & Association of African DFIs

Development of DFIs thus contributing to member countries economic development

Over the past 5 years

$176 684 x 5 years

Association of African Development Finance Institutions (AADFI)

Providing financial support to the Research unit of the Association.

Over the past 5 years

Euro 5000

Regional Industrial Development Strategy (RIDS)

Vutha’s Mlilo Fund Impact Assessment

July 2014- December 2014

R 445 450.00 x 1 year

Mining Towns Revitalization (Special/Spatial Intervention Programme funds)

Conducting Economic Activities and Opportunity Assessment Around the declining mining towns in order to improve socio-economic conditions of mining regions for six municipal districts around South Africa.

August 2014 – July 2015

R 2 154 480.00 x 1 year

World Economic Forum -Regional Partnership

In line with its mandate to expand its investment into the Rest of Africa, the Regional Partnership enables the IDC to strengthen its catalytic role in the continent. It gives the IDC the opportunity to engage with the business communities, key representatives of government and various financial institutions on issues that pertains to the development of the continent.

2017-2019

CHF 300,000.00 x 3 years

University of Johannesburg’s Automation and Control Research Centre in the School of Electrical Engineering

Automation and Control Research

2014

R1 million x 1 year

Mapungubwe Institute for Strategic Reflection (MISTRA)

MISTRA is an independent research institute that takes a long-term view on the strategic challenges facing South Africa, with the aim of deepening debates in issues such as economic, governance, history, culture and natural sciences. MISTRA collaborates with policy-makers and practitioners to ensure implementation of the recommendation emanating from its research findings. It was established in 2010 and has completed numerous comprehensive research projects, including commissioned research projects for a range of clients in the private sector and also released several publications.

Nov 2015  (Only)

R500 000.00

Beneficiary research institutions (undertaking specific research project/s after being selected through open bid process)

 

Total amount approved

Year approved

Total disbursements to date

University of KwaZulu-Natal

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R1,028,055

2013

R685,370

Bureau of Food and Agriculture Policy

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R1,072,500

2013

R1,072,500

National Agricultural Marketing Council

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R920,000

2013

R920,000

South African Poultry Association

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R808,054

2013

R808,054

Blue Karoo Trust

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R560,000

2013

R560,000

Urban-Econ Development Economists

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R387,600

2013

R387,600

Nkwele Agribusiness Planning and Investment (Pty) Ltd

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R456,000

2013

R456,000

Agricultural Research Council

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R1,550,000

2013

R1550,000

Optimal Agricultural Business Systems Development

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R938,620

2016

R563,172

Optimal Agricultural Business Systems Development

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R1,776,223

2016

R803,134

Urban-Econ Development Economists

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R387,200

2016

R387,200

Luhlaza Integrated Sustainable Solutions

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R1,734,238

2016

R540,469

Urban-Econ Development Economists

Agro-Processing Competitiveness Fund: Research Grant Component (managed by IDC Research & Information department on behalf of EDD)

R878,000

2016

R74,100

-END-

31 July 2017 - NW1717

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James, Ms LV to ask the Minister of Economic Development

Whether any staff of (a) his department and (b) each entity reporting to him were awarded any contracts or agreements to conduct business with any state entity in the (i) 2014-15, (ii) 2015-16 and (iii) 2016-17 financial years; if so, what are the (aa)(aaa) names and (bbb) professional designations of the staff members and (bb)(aaa) details of the contract(s) and/or agreement(s) awarded and (bbb) amounts in each case?

Reply:

a) I am advised that the management of the Department (EDD); the Industrial Development Corporation (IDC); International Trade Administration Commission (ITAC) and Competition Tribunal are not aware of any contracts that were awarded to staff members in the above mentioned financial years, and to the best of their knowledge, no contracts were awarded to staff members.

b) Mr Nkhumeleni, a Case Administrator at the Competition Commission, provided stationery to the Department of Forestry and fisheries in the 2016/17 financial. The amount involved amounted to R41 000.

 

-END-

31 July 2017 - NW1928

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Bergman, Mr D to ask the Minister of Economic Development

By which date will the International Trade Administration Commission’s findings of its investigation into safeguards for European poultry producing countries be made available?

Reply:

ITAC intends to finalise its investigation and findings during August 2017. Once the Commission has made its final determination, it will make a recommendation to the Minister of Trade and Industry, who is responsible for the process of negotiation with the EU in terms of the bilateral trade agreement in place. The Department of Trade and Industry will publicise the Minister’s final decision, after completion of the negotiation process that the Minister of a Trade and Industry oversees.

 

-END-

31 July 2017 - NW1752

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Marais, Mr S to ask the Minister of Economic Development

Does (a) he, (b) his Deputy Minister or (c) any of the heads of entities or bodies reporting to him make use of security services paid for by the State for (i) him/herself, (ii) his/her immediate family members or (iii) any of their staff members; in each case (aa) what are the reasons for it, (bb) from which department or entity’s budget is the security services being paid, and (cc) what are the relevant details?

Reply:

(a) & (b) Security Services for the Minister and Deputy Minister is provided by SAPS VIP Protection. These services comply with the provisions in the Ministerial Handbook.

(c) The Industrial Development Corporation (IDC); the Competition Tribunal and the International Trade and Administration Commission (ITAC) do not make use of any security services paid by the state for heads of the entities, their immediate family members or any staff members.

Three staff members of the Competition Commission are being provided with security services paid for by the Competition Commission.

As part of its risk Management processes, the Commission approached law enforcement agencies to conduct a risk assessment in a number of areas including the three Executive Managers. The Commission is still awaiting responses from the agencies that were approached.

In June 2017, the Commission decided to place the three Executives under private security protection as an interim precautionary measure whilst waiting for response from the law enforcement agencies, and also as a response to various incidents which included armed robbery resulting in the loss of Competition Commission devices and other important valuable, incidents of threats and stalking directed at one staff member.

 

-END-

31 July 2017 - NW1874

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Mbatha, Mr MS to ask the Minister of Economic Development

Whether (a) his department and (b) each entity reporting to him appointed transaction advisors for tenders in the period 1 January 2012 to 31 December 2016; if so, (i) who were the transaction advisors that were appointed for the tenders, (ii) for which tenders were they appointed, (iii) what was the pricing for the tenders in question and (iv) what amount were the transaction advisors paid?

Reply:

The EDD, Competition Tribunal, ITAC and Competition Commission did not appoint any transaction advisors for any tenders in the period 01 January 2012 to 31 December 2016.

The IDC engages the services of transaction advisors in the execution of some of its strategic business related activities.

For the period 01 January 2012 to 31 December 2016, the following transaction advisors were appointed by the IDC:

No.

(i) Name of Transaction Advisor

(ii) Tender description

(iii) Tender pricing

(iv) Amount paid to date

1

Nedbank Capital and Basis Points Capital (Pty) Ltd Joint Venture

Financial Valuation of TargetCo

R 750,000

R 750,000

2

PriceWaterhouseCoopers Incorporated

Transaction Advisory Services for the Masorini Steel Project

R 3,506,800

R 3,049,919

3

PSG Capital (Pty) Ltd

Transaction Advisor for the UCW Transaction

R 2,351,114

R 2,351,114

4

Sasfin Bank Ltd

Independent financial valuation of United Carriage Wagons

R 200,000

R 200,000

5

Ernst & Young Advisory Services (Pty)

Transaction advisor on the Corporatisation of Scaw

R 17,256,155

R 13,520,721

6

Rothschild (South Africa) (Pty) Ltd and Identity Capital Partners (Pty) Ltd Joint Venture

Transaction advisory services to the IDC to identify strategic equity partners to its subsidiary, Scaw

R 17,500,000

R 7,579,905

-END-

31 July 2017 - NW1950

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Cardo, Dr MJ to ask the Minister of Economic Development

What are the full details of the 22 investment and infrastructure projects that he announced in the Debate on Vote 25 – Economic Development, Appropriation Bill, in the National Assembly on 25 May 2017, which his department will target and help to unblock?

Reply:

During the Economic Development Budget Vote, I noted the following:

“To address obstacles to investment projects, the Department will target 22 investment and infrastructure projects it will help to unblock.”

The target was derived from the Department’s Annual Performance Plan tabled in parliament earlier this year.

The actions consist of identifying investment and infrastructure projects that are not proceeding to schedule due to reasons that can be addressed by the Department. These may include, for example, lack of regulatory approvals by a municipality or national agency, access to energy and delays in approvals of incentives or funding.

Most of these kind of challenges are brought to the attention of the Department and its agencies by users or project initiators and thus no prior list exists at the start of the financial year.

Progress with this target for the current financial year will be reported on a quarterly basis to the Portfolio Committee on Economic Development.

Details of actions taken in the past year will be included in the Department’s Annual Report due to be tabled in parliament in due course.

 

-END-

31 July 2017 - NW1951

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

In light of the fact that South Africa is now in a recession, what steps is his department taking to ensure that the country does not experience further consecutive quarters of negative economic growth?

Reply:

During the recent Economic Development Budget Vote, I set out the key steps that will be taken by the Department and agencies reporting to it, to address the economic challenges and to contribute to government’s overall response to the recession. These include specific steps on industrial funding, infrastructure investment, competition policy and social partnership spelt out in the Budget Vote speech, a copy of which is available at www.economic.gov.za. Additional announcements on key projects will be made as and when they are confirmed and implemented.

I wish to emphasise the importance of boosting confidence within communities and among investors, which require among others that issues of governance and integrity within state-owned companies and public institutions be fully and expeditiously addressed.

-END-

31 July 2017 - NW1968

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Atkinson, Mr P to ask the Minister of Economic Development

What role does a certain person (name and details furnished) play as a South African representative of Startup Nations, a programme run by the Global Entrepreneurship Network and (b) how is this reflected in the programmes and policies of (i) the Industrial Development Corporation and (ii) his department?

Reply:

I am advised by the IDC that Start-Up Nations South Africa is a platform for the IDC to assist in establishing and developing a conducive environment for entrepreneurs and the promotion of entrepreneurship in South Africa, particularly in support of increasing youth enterprise applications. The IDC is a founding member of the programme. The IDC has motivated its participation in this programme as providing support to develop the IDC’s bankable pipeline of businesses to be supported and financed with regards to youth, women, Black Industrialists, B-BBEE, localization, rural development and township economy projects amongst others. Ms Mmodi Rambau-Nesengani is the appointed IDC representative to the Start-Up Nations SA programme.

 

-END-

28 July 2017 - NW1785

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Mbatha, Mr MS to ask the Minister of Economic Development

1. Which entities reporting to him (a) have a board in place and (b) do not have a board in place, (i) of those that have a board, (aa) when was each individual board member appointed and (bb) when is the term for each board lapsing and (ii) how many (aa) board members are there in each board and (bb) of the board members of each entity are female; 2. With reference to entities that do not have boards in place, (a) who is responsible for appointing the board and (b) when will a board be appointed?

Reply:

a) The Competition Commission is not required to have a board. In accordance with Section 22 of the Competition Act 89 of 1998, The Minister appoints the Commissioner and Deputy Commissioner.

b) The Competition Tribunal is not have required to have a board. In accordance with Sections 29 and 30 of the Competition Act 89 of 1998, The President, on the recommendation of the Minister, appoints the Tribunal Chairperson, Deputy Chairperson, full-time and part-time Tribunal members.

c) ITAC does not have a board, but consists of a full-time Chief Commissioner and part-time Commissioners.

d) The IDC has a board in place and board members are reappointed, appointed or retired at Annual General Meetings. Appointments were confirmed at the Annual General Meeting held in 2016. Please refer to the table below:

NO

NAME OF DIRECTOR

GENDER

INITIAL APPOINTMENT

1.

Ms BA Mabuza- Chairperson

Female

2011

2.

Ms L I Bethlehem

Female

2008

3.

Mrs P Mthethwa

Female

2011

4.

Ms N P Mnxasana

Female

2015

5.

Ms N D B Orleyn

Female

2015

6.

Mr B A Dames

Male

2011

7.

Mr R Godsell

Male

2011

8.

Dr S Magwentshu-Rensburg

Female

2011

9.

Ms M F More

Female

2016

10.

Mr A T Kriel

Male

2016

11.

Mr N E Zalk

Male

2011

12.

Mr M G Qhena – CEO

Male

 

 

-END-

28 July 2017 - NW1924

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Maynier, Mr D to ask the Minister of Economic Development

Whether any entity reporting to him made any payments to the Black Management Forum for its Corporate Update Dinner on 9 June 2017; if not, what is the position in this regard; if so, what was the (a)(i) total cost and (ii) detailed breakdown of such costs and (b) purpose for each payment made?

Reply:

The Competition Tribunal, ITAC, and Competition Commission did not make any payments to the Black Management Forum for its Corporate Update dinner hosted on the 09 June 2017.

The IDC purchased one table at the Black Management Forum (BMF) dinner at a cost of was R40 000 excluding VAT. The sponsorship included one corporate table, branding for the IDC and allowance for a total of 10 attendees.

-END-

19 June 2017 - NW1565

Profile picture: Cardo, Dr MJ

Cardo, Dr MJ to ask the Minister of Economic Development

Did the International Trade Administration Commission oppose the introduction of a 12% safeguard duty on imported hot-rolled steel in an essential facts letter issued in 2017; if not, what is the position in this regard; if so, (a) why and (b) what are the further relevant details in this regard?

Reply:

The Chief Commissioner of the International Trade Administration Commission (ITAC) has advised that as part of its standard procedure before making a final determination on trade remedies, it normally issues essential facts letters. The purpose of an essential facts letter is to inform the applicant and interested parties of the relevant factors that the Commission was considering in making a final determination for all the participants to comment. It is always emphasised in these letters that the Commission has not yet made its final determination and nothing in these letters should be construed as such.

In the case of hot-rolled steel, the Commission relayed in the essential facts letter that it was considering making a final determination that: there were unforeseen developments; there was a surge in imports; there was serious injury to the domestic industry caused by a surge in imports; and that it was also considering not recommending imposition of safeguard measures on public interest grounds. It then called on parties to comment on these. ITAC considered comments received from the applicant and interested parties and the Commission made a final determination.

The contents of its final determination and reasons will be made public once the Report of the Commission on the safeguard investigation on hot-rolled steel is published for implementation by the Ministry of Finance.”

 

-END-

12 June 2017 - NW1484

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Kruger, Mr HC to ask the Minister of Economic Development

Whether (a) his department and (b) each entity reporting to him procured any services from and/or made any payments to (i) a certain company (name furnished) or (ii) any other public relations firms; if not, in each case, why not; if so, in each case, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such payments?

Reply:

1.Neither the Department nor any entity reporting to me have procured any services nor made any payments to Bell Pottinger as there is no good reason to do so.

2. One entity, the Industrial Development Corporation (IDC) used a public relations firm, Grounded Media, for a one-year period, at a contract price of R554 400. The IDC CEO has advised that the payments were for the following services:

  • Developing and implementation of the Public Relations strategy;
  • News writing;
  • Management of media data base;
  • Media training and;
  • Reporting and analysis on IDC media coverage.

-END-

05 June 2017 - NW1216

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Lotriet, Prof A to ask the Minister of Economic Development

Whether (a) his department and (b) each entity reporting to him has (i) procured any services from and/or (ii) made any payments to the Decolonisation Foundation; if not, in each case, what is the position in this regard; if so, what (aa) services were procured, (bb) were the total costs, (cc) is the detailed breakdown of the costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of the payments in each case?

Reply:

Public funds are intended to be spent for public purposes. Accordingly, no payments were made to the named entity.

-END-

24 April 2017 - NW662

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Cardo, Dr MJ to ask the Minister of Economic Development

(a) What is his department’s working definition of radical economic transformation and (b) how does his department plan to translate radical economic transformation into programmes and projects in the 2017-18 financial year?

Reply:

Radical economic transformation has been defined in the State of the Nation Address. Policy-specific elaborations at the level of economic development for the 201718 financial year would normally be done during the Economic Development Budget Vote.

Subject to the above, the following additional details are provided.

In the context of our challenges, radical economic transformation is about ensuring growth that directly, sustainably and expeditiously promotes national development goals. These goals are focussed on addressing the high levels of poverty, inequality and unemployment in South Africa. To achieve this, the country needs faster growth, more inclusive growth and job-rich growth so that the economy can generate the resources to meet these defining challenges of our times.

‘Transformation’ includes two key components.

The first is to grow the size and resilience of the economy, including through promoting entrepreneurship on scale, increasing the level of investment in the economy, promoting beneficiation of raw materials into finished goods; strengthening economic links with the rest of the African continent and promoting higher levels of industrial innovation as well as addressing the other key structural constraints identified in the New Growth Path and the National Development Plan. The ratings downgrade is bad news for our efforts to grow the economy at a faster and more inclusive level and thus we need to take steps to ensure that we regain investment-grade status from lenders and pursue a credible, bold inclusive growth strategy in the interest our people. In the medium to long term, the levels of domestic savings need to be increased to enable us to finance more of our growth efforts from internal resources, with the resultant returns helping to increase the levels of national wealth. Foreign investment will remain an important source of innovation, new technology and market access and must be encouraged, particularly in sectors where domestic capabilities are limited.

The second is to improve the participation by and benefits of black South Africans in the economy, including through increased equity by black investors in the economy; worker-participation in company boards and as shareholders in the firms concerned; job creation that can draw in and benefit large numbers of unemployed persons; promotion of small businesses and township and rural enterprises; and improvements in skills, wages and productivity of workers. Young people are a major resource for a fast-growing economy and we need to step up efforts to draw in the talents and energy of youth, as entrepreneurs and creators of new wealth and as skilled workers, artisans and technicians that competitive economies depend on. A programme that is aimed at enriching only a small number of persons will not address the gaping levels of inequalities, provide social stability and or be sustainable. The high levels of wealth and economic concentration act to deter and at times inhibit new entrants from securing space in the economy. Pervasive exclusionary conduct, many examples of which the competition authorities have begun to uncover over the past few years, aggravates this situation. This means we need to address both the structural and corporate behaviour challenges in the economy to enable a more open, competitive and dynamic economy to develop. Corruption, maladministration by public institutions and state capture by narrow vested interests will profoundly undermine economic transformation. Any programme that will see the majority of citizens benefitting from economic transformation must therefore also entail fighting corruption and attempts at state capture.

‘Radical’ in the above context of economic transformation refers to ensuring that transformation is bold, extensive and implemented expeditiously.

At an operational level, the Department has implemented or supported policies and measures to promote inclusive economic growth, which includes addressing transformation of ownership, management, staffing and conditions of employment in the economy. I wish to highlight a few examples of these.

The IDC introduced a special programme to support black industrialists, with a capital allocation of R23 billion. This programme was announced in parliament during my Budget Vote previously and has been widely welcomed by Members of Parliament and stakeholders. This is a significant pool of capital that is available at concessionary rates to black South Africans who seek to invest in sustainable businesses in productive sectors of the economy. I will provide further details of progress we have made in the Department’s Budget Vote in due course.

The competition authorities and the Department pursued black economic empowerment, small business and employment protection and job-creation objectives through a number of mergers and acquisitions, including more recently in respect of Coca-Cola, AB InBev and Edcon. For example, a portion of the equity in Appletiser has been set aside for black South Africans in the Coca-Cola transaction. The Edcon transaction has a significant employment commitment that will affect tens of thousands of black workers. The AB InBev transaction specifically targets the development of a class of small-scale farmers, most of who are black, with a commitment to integrate them into the commercial value-chain of the company.

In settlements of cartel cases, such as in the construction and metal industries, the settlement agreements covered bold economic transformation goals. In the case of three major listed companies in construction, they intend to sell more than 50% of their shares to black shareholders and open up a sector that had been characterised by high levels of concentration. The primary steel-maker agreed last year to revise its shareholding and it agreed to certain employment commitments that can benefit previously-excluded South Africans.

Details of the work of the Department on infrastructure development, job creation and the promotion of investment in South Africa has previously been highlighted in the Economic Development Budget Vote and presentations to the Portfolio Committee and will therefore not be repeated here.

In order to ensure that transformation is sustainable, it is important to

  • build a wide social consensus on the modalities that are put in place and ensure they are transparent, effective and not used misused through fronting; and
  • avoid transformation being used as a smokescreen to pursue narrow agendas including the empowerment of a favourite few. If we want to ensure real transformation, then the resources of the state and commitments by private capital must be applied with integrity and be free of corruption.

We must work hard therefore to ensure that millions of South Africans benefit from transformation. It requires a new, bolder approach by the business community, working in partnership with the state and labour. The worker empowerment model has great promise in that it ensures that key stakeholders in the economy can benefit from empowerment and have the twin benefits of performance gains in the companies concerned (and therefore benefit the economy as a whole), as well as equity gains that reduces the levels of inequality in South Africa. Job creation must be a central pillar and the more than 2 million new jobs created since the adoption of the New Growth Path must be further stepped up. The youth investment programmes should be strengthened and in addition, complemented where warranted, by stronger mentoring support by existing successful businesses and inclusion of youth-owned enterprises in major supply-chains. Funding for innovation-driven businesses need to be a priority in the work of development finance institutions and private capital markets. Actions against economic exclusion should be pursued firmly, including measures to deal with cartels and monopolies and with corruption and attempts at state capture. Finally, a broader social partnership should underpin our joint efforts so that we are able to draw in the resources and capacities across the society to address poverty, inequality, unemployment and economic exclusion.

-END-

21 April 2017 - NW685

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Figlan, Mr AM to ask the Minister of Economic Development

(1)Did (a) his department or (b) any entity reporting to him participate in the Dialogue with the President: Unpacking of the SONA 2017 on Radical Economic Transformation Implementation event hosted at the Oyster Box Hotel in Umhlanga, Durban, on 25 February 2017; if so, what amount was spent in each case; (2) did (a) his department or (b) any entity reporting to him participate in the auction of the (i) souvenirs or (ii) personal belongings of the President of the Republic, Mr Jacob G Zuma; if so, (aa) which items were purchased and (bb) at what cost, in each case?

Reply:

The Economic Development Department and its entities did not participate in the above-mentioned event or auction.

-END-

21 April 2017 - NW773

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Cardo, Dr MJ to ask the Minister of Economic Development

Whether the Industrial Development Corporation (IDC) has commissioned any feasibility studies into (a) platinum and (b) ferrochrome processing methods that reduce electricity consumption; if so, (i) what are the relevant findings and (ii) how does the IDC plan to take advantage of new technologies in this regard?

Reply:

I have been advised by the Industrial Development Corporation (IDC) that it is considering ways to reduce electricity consumption in domestic processing of both metal groups and I attach hereto the more detailed reply by the CEO of the IDC.

“With reference to question (a), the IDC is participating in the feasibility study to advance the development of a process aimed at producing platinum group metals without going through the high energy intensive smelting route.

This process recovers platinum group metals from sulphide flotation concentrates into separate solution streams for further downstream conventional refining. Unlike smelting, it is also able to upgrade low grade platinum group metal concentrates.

The feasibility study has recently been completed with positive findings confirming the economic viability of the process. The process is considered to be a game changer for the beneficiation of platinum because of its innovative nature and the benefits the platinum industry will derive by adopting this technology.

Firstly, indications from test work are that it reduces energy consumption by approximately 20% because the process is hydrometallurgical rather than pyro-metallurgical.

Secondly, it also eliminates CO2 emissions which makes it an environmentally friendly technology. It is not affected by the chrome content of platinum ores which is a major constraint of traditional smelters.

CHROME SMELTING

Regarding ferrochrome processing the IDC has conducted an internal study which has identified high costs as a major reason for the recent ferrochrome smelter closures, and has identified the need to build less energy intensive ferrochrome producing facilities going forward if the South Africa ferrochrome sector is to remain competitive.

To that end, the IDC has recently approved funding to participate in a feasibility study that is expected to lead to the establishment of a ferrochrome smelter which utilises heat generated by furnace waste gases from the smelting processes to pre-heat the chrome ore before it is fed into the smelter’s furnaces.

The smelter is expected to operate with production costs of approximately 20% lower than the global average.”

-END-

21 April 2017 - NW661

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Cardo, Dr MJ to ask the Minister of Economic Development

Has the vacancy on the Board of the Industrial Development Corporation that resulted from Mr Brian Molefe’s resignation been filled; if not, by what date will the vacancy be filled; if so, by whom?

Reply:

Section 6(2) of the Industrial Development Corporation Act provides for a board of directors of not less than five and not more than 15 directors. Currently the Board has 12 directors. Should it become appropriate to appoint additional members to the Board, an announcement of such successful candidate/s will be made.

-END-

27 March 2017 - NW540

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Cardo, Dr MJ to ask the Minister of Economic Development

(a) When will the National Empowerment Fund be incorporated into the Industrial Development Corporation (IDC) as a wholly owned subsidiary and (b) what financial obligations will the transaction place on the IDC?

Reply:

It is Government’s public goal to consolidate the number of public entities in order to avoid duplications of mandates and reduce overhead costs.

Both the IDC and the NEF have responsibility for the promotion of black economic empowerment. In addition, the NEF has funding challenges for new loan approvals.

To give effect to the goal of agency consolidation and to enable the NEF to benefit from the IDC balance-sheet and experience, it was agreed in principle between the Ministers of Trade & Industry and Economic Development as well as the IDC and NEF to incorporate the NEF as a wholly-owned subsidiary of the IDC.

The technical work to enable this decision to be implemented will now be undertaken and the timeframes for conclusion thereof is not yet available. In order to enable the NEF to continue to provide industrial funding for black industrialists, the two organisations are considering transitional measures pending conclusion of the merger arrangements.

These will be announced when they are finalised.

-END-

27 March 2017 - NW541

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Cardo, Dr MJ to ask the Minister of Economic Development

(a) What developmental projects have been earmarked by the R1,5 billion Tirisano Fund for the 2017-18 financial year and (b) which black-owned construction companies are expected to benefit from the specified fund?

Reply:

The Tirisano Trust is currently in the process of being set up. Once the process is complete, the trustees will allocate funding on an annual basis. The monies will come via the National Revenue Fund and will be appropriated by parliament to the Fund and thus there will be parliamentary accountability.

It has been agreed between government and the construction companies that all the transactions in the Tirisano Fund will be done on a transparent basis, all beneficiaries will be publicly disclosed and all financial transactions of the Fund (including administration fees, consultancy payments – if any and if warranted), as well as payments made to any individual or company, should be open to public scrutiny.

The Trust provides that monies may be allocated as follows:

  • Bursaries for black students studying engineering, quantity surveying and building science; 
  • Bursaries for the development of black artisans including through mentorship and employment placements;
  • Maths and science education in public schools;
  • Special social development projects such as rural bridges, student accommodation, clinics, schools and sports-fields. 
  • Building capacity in the state on engineering, project management and other infrastructure services in the design, construction, operation and maintenance of public infrastructure; and
  • Enterprise development programs for small, black-owned construction firms, including through the provision of working capital at concessional rates and support on performance bonds.

The Trust will report publicly on specific projects to be selected and the companies, individuals and communities who will benefit, once the Tirisano Fund has made such allocation.

 

-END-

27 March 2017 - NW539

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Cardo, Dr MJ to ask the Minister of Economic Development

Was he consulted by the Competition Commission before it referred a collusion case against 18 banks on charges involving price fixing and market allocation to the Competition Tribunal in February 2017; if so, what was the nature of the consultations?

Reply:

The investigation by the Competition Commission of collusion involving price-fixing and market allocation in forex transactions has been a matter of public record and was reported in the Commission’s Annual Report tabled in Parliament during 2016. The Commission advised the SA Reserve Bank, Minister of Economic Development as well as the National Treasury when it had completed its investigation, that it would refer the matter to the Competition Tribunal.

-END-

27 March 2017 - NW448

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Bara, Mr M R to ask the Minister of Economic Development

Whether his department procured any services from and/or made any payments to (a) Mr Mzwanele Manyi, (b) the Progressive Professionals Forum, (c) the Decolonisation Fund and/or (d) the Black Business Council; if not, in each case, why not; if so, what (i) services were procured, (ii) was the total cost, (iii) is the detailed breakdown of such costs, (iv) was the total amount paid, (v) was the purpose of the payments and (vi) is the detailed breakdown of such payments in each case?

Reply:

No payments were made nor were any services procured from the persons and organisations referred to in the question.

-END-

20 March 2017 - NW352

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Van Damme, Ms PT to ask the Minister of Economic Development

What is the (a) make, (b) model, (c) price and (d) date on which each vehicle was purchased for use by (i) him and (ii) his deputy (aa) in the (aaa) 2014-15 and (bbb) 2015-16 financial years and (bb) since 1 April 2016?

Reply:

No new vehicles were purchased for the Minister or Deputy Minister in the period referred to in the question.

The vehicles currently used for official purposes were purchased as follows:

  • Minister: Toyota Fortuner, bought in March 2010 at a price of R411 373.
    • Purpose: for use in Pretoria and in performance of duties in the central and northern parts of the country.
  • Minister: Toyota Fortuner, bought in February 2011 at a price of R477 693.
    • Purpose: for use in Cape Town and surrounding areas.
  • Deputy Minister: Mercedes Benz E-class, bought in February 2011 at a price of R647 865.
    • Purpose: for use in Pretoria and in performance of duties in the central and northern parts of the country
  • Deputy Minister: Audi Q7, bought in April 2013 at a price of R684 988.
    • Purpose: for use in Cape Town and surrounding areas.

-END-

23 February 2017 - NW66

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Krumbock, Mr GR to ask the Minister of Economic Development

(1)With reference to his reply to question 1781 on 9 June 2015, what are the details of the costs to the (a) Industrial Development Corporation (IDC) and/or (b) State of maintaining the mothballed Sustainable Fibre Solutions kenaf fibre processing plant (i) for the 2015-16 financial year and (ii) since 1 April 2016 up to the latest specified date for which information is available; (2) whether any staff are currently employed at the specified plant; if not, what are the details of (a) measures implemented and (b) costs incurred each month from 1 April 2015 to date in order to secure the specified plant’s assets from theft and vandalism; if so, what are the (i) details of each person employed, (ii) costs to the (aa) plant, (bb) IDC and/or (cc) State of employing the specified staff and (iii) details of the job descriptions of each of the specified persons?

Reply:

The CEO of the IDC has advised as follows and attention is also drawn to the reply to parliamentary question 65:

“The net cost of maintaining the mothballed operations for the 2015/2016 financial year was approximately R2.5m.

As previously communicated, there are two full time employees looking after the maintenance of the mothballed operations. The total cost of these employees is circa R70 000 a month for the two employees combined. Furthermore, there is a security company looking after the physical security.

It is important to note that, prior to the IDC’s investment, the land on which SFS is situated was valued at R1.7m. As a consequence of the IDC’s investment the land and buildings are now valued at R40.2m whilst the plant and equipment are valued at R36.1m. The values referred to above are in terms of a valuation conducted into the assets in January 2017. In the circumstances and in the light of the high security value attached to the buildings, plant and equipment it is crucial that they are properly maintained and secured so as to preserve value.”

-END-

23 February 2017 - NW65

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Krumbock, Mr GR to ask the Minister of Economic Development

(1)Whether, with reference to his reply to question 1781 on 9 June 2015, an appropriate solution has been found for the reopening of the Sustainable Fibre Solutions kenaf fibre processing plant; if not, (a) why not and (b) are any appropriate solutions being considered; if so, what are the relevant details; (2) have there been any approaches from any person or entity to purchase the whole or part of the specified plant; if so, what are the details of each (a) approach and (b) outcome; (3) has the Industrial Development Corporation made any attempt to sell the whole or part of the specified plant; if not, why not; if so, what are the details of all attempts (a) made and/or (b) currently underway to sell the specified plant; (4) what are the relevant details of the (a) origins and (b) business plan of this project?

Reply:

The CEO of the IDC has advised as follows:

An appropriate solution has not as yet been found for the re-opening of the Sustainable Fibre Solutions kenaf fibre processing plant. The IDC has, however, commissioned a study whose objective is to explore alternative uses for the kenaf fibre processing plant, the largest and most technologically advanced kenaf processing plant in the world.

Admittedly the study and the exercise to find alternative use for the kenaf processing plant is taking longer than anticipated but the preliminary study has been completed and results indicate that it could be used to process hemp. Hemp is used to make numerous consumer products, from hemp apparel and accessories to house-wares and hempseed oil cosmetics. Some of the products made from hemp are: clothing, shoes, diapers, rope, canvas, cellophane, paints, fuels, chain lubricants, biodegradable plastics, paper, fibreboard, cement blocks, food, cosmetics, and soap.

In terms of existing South African legislation, hemp is classified under the cannabis sativa plant species. Consequently a permit is required before one can plant hemp. Upon final confirmation that the plant can indeed be used to process hemp, the process of obtaining the necessary regulatory approvals from, inter alia, the Medicines Control Council, to plant hemp in South Africa on a commercial basis, will commence.

The IDC has been approached by an entity known as Industrial Hemp (Pty) Ltd who expressed a desire to acquire the kenaf processing plant. The IDC advised Industrial Hemp (Pty) Ltd that the kenaf processing plant is not for sale. This decision was informed by the fact that the IDC is still exploring alternative uses for the plant through the study it has commissioned. As a result, the IDC has not made an attempt to sell the whole or part of the specified kenaf processing plant to date. Industrial Hemp (Pty) Ltd was also advised that in the event of the kenaf processing plant being sold, a fair and transparent process that is in line with the provisions of the PFMA would be followed.

The project was started by the Industrial Development Corporation to initiate large-scale production of kenaf, a fibre crop used to make paper pulp, thermal and sound insulation, automotive parts and bio-composite, non-woven materials. The previous business plan proved not viable and as such we are in the process of scoping for a new proposal following the study recently completed into hemp.

-END-

10 January 2017 - NW2729

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Cardo, Dr MJ to ask the Minister of Economic Development

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

Reply:

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

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

Prepared by: Lynette Milne

 

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

 

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:………………………

10 January 2017 - NW2730

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Cardo, Dr MJ to ask the Minister of Economic Development

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

Reply:

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

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

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

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

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

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

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

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

 

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:……………………..

10 January 2017 - NW2731

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Cardo, Dr MJ to ask the Minister of Economic Development

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

Reply:

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

 

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

 

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:………………………

14 December 2016 - NW2661

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Cardo, Dr MJ to ask the Minister of Economic Development

(1)    (a) What are the names of each so-called politically exposed persons who received a loan from the Industrial Development Corporation (IDC) since 1 January 2009, (b) which company is each of the specified persons associated with and (c) what is the amount of money loaned by the IDC to each of the persons and/or their companies in each case; (2) whether each of the specified loans due for repayment were repaid to the company on time; if not, (a) why not and (b) what are the renegotiated terms in each case; if so, what are the relevant details?

Reply:

The IDC has a confidentiality policy that applies to companies that it transacts with. The CEO of the IDC advised me that the requested information would be in breach of the current policy. The IDC has taken a decision to provide macro-data on the number of transactions involving politically exposed persons in future annual reports.

I have taken note of the IDC’s advice and have now requested the IDC to review the appropriateness of the current policy, having regard to relevant commercial considerations, the legitimate public expectations of transparency as well as the rights to privacy of individuals and the need to ensure – and be seen to ensure – integrity in all investment decisions; and to facilitate an engagement between me and the Board on the outcome of this review during the course of 2017.

Original proposed by: Mr MG Qhena, CEO IDC

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:……………………..