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29 December 2023 - NW3197

Profile picture: Gondwe, Dr M

Gondwe, Dr M to ask the Minister of Public Service and Administration

(1) What (a) total number of public servants (i) are currently receiving grants in each (aa) provincial and (bb) national department and (ii) qualify to receive such grants and (b) types of grants do the specified public servants receive. (2) What total number of public servants have been disciplined for receiving grants they do not qualify to receive in each (a) provincial and (b) national department. (3) What total number of cases has her department opened against public servants who benefited from grants that they did not qualify to receive; (4) What total amount has her department recovered to date from public servants who benefited from grants that they did not qualify to receive?

Reply:

1.(a) Public servants that received grants:

TABLE 1

No

Province

Number public servants identified by AGSA

1

Eastern Cape

1257

2

Free State

103

3

Gauteng

280

4

KwaZulu-Natal

1102

5

Limpopo

468

6

Mpumalanga

296

7

Northwest

1460

8

Northern Cape

566

9

Western Cape

280

10

National

 

Total

5812

In March 2023 33833 public servants had their grants lapsed and also referred to the Fraud and Compliance Unit for further investigations as they failed to present themselves to a SASSA office to have their grants reviewed. Below is the distribution of the public servants (according to provinces)[1].

TABLE 2

(i) The 5812 Covid related (refer to Table 1) and 33833 normal grants (refer to Table 2) recipients had their grants lapsed upon identification that they had contravened Section 21 of the Social Assistance Act (furnished untrue information when applying or continue to receive social assistance when they standard of living has changed).

(aa) According to SASSA dataset extracted from Covid and SOCPEN systems, distribution is according to province as per Table 1 and 2 above indicating where grant application was submitted and not according to employing department (be it provincial or national).

(bb) SASSA dataset did not distribute civil servants according to employing department, but according to the province where the application was submitted

(ii) The numbers of civil servants contained on Table 1 and 2 may have qualified through misrepresentation which has been uncovered as SASSA systems were improved and enhanced.

(b) 5812 civil servants benefited from the Covid 19 Social Relief of Distress grant within the period of May to October 2020. Distribution of the 33833 was not provided by SASSA.

2. What total number of public servants have been disciplined for receiving grants they do not qualify to receive in each

(a) Provincial departments: 36

(b) National departments: 6

 

Misconduct cases of Public Servants who benefited from

social grants as at 30 September 2023 - cases referred from 2008)

 
 

National/ Provincial department

Number of cases

Number of people

Total

 

44

42

Eastern Cape

Total

2

2

 

Social Development

2

2

Free State

Total

1

1

 

Human Settlements

1

1

KwaZulu-Natal

Total

18

18

 

Health

6

6

 

Public Works

12

12

Limpopo

Total

1

1

 

Transport and Community Safety

1

1

National

Total

6

6

 

Home Affairs

2

2

 

Police

4

4

North West

Total

16

14

 

Community Safety and Transport Management

14

12

 

Social Development

2

2

Data source: PERSAL

     

Compiled by the DPSA

     

Excluding Defence and State Security Agency

   

3. What total number of cases has her department opened against public servants who benefited from grants that they did not qualify to receive?

To date 1815 cases have been referred to the South African Police Service by SASSA for further criminal investigation for the contravention of the Section 21 of the Social Assistance Act, as it is a criminal offence.

4. What total amount has her department recovered to date from public servants who benefited from grants that they did not qualify to receive?

The recovery of loss is being managed where the employee is located through signing of an acknowledgment of debt that SASSA at provincial office will submit to the Office of the Premier. Where employees refuse to sign acknowledgement of debt forms, Section 300 of the Criminal Procedure Act, will be invoked. DPSA and SASSA will coordinate the process.

End

  1. See 1 (bb)

29 December 2023 - NW3198

Profile picture: Gondwe, Dr M

Gondwe, Dr M to ask the Minister of Public Service and Administration

With reference to public servants who do not have qualifications for the positions that they currently occupy, what (a) is the total number of such public servants in each (i) national and (ii) provincial government department and (b) are the relevant details of the (i) positions that are occupied by such public servants and (ii) time period that each public servant has been employed in each specified position?

Reply:

a) (i) and (ii):

The Minister for the Public Service and Administration (MPSA), guided by section 3 (c) of the Public Service Act (PSA), issued a Directive guiding national and provincial departments on Compulsory Capacity Development Mandatory Training Days, and Minimum Entry Requirements, specifically for Senior Management Service (SMS) roles. The Directive sets forth mandatory requirements and standards which define qualification criteria that must be met for recruitment into SMS positions.

Since the Directive was issued the following has been noted:

  • The majority of officials that do not meet minimum entry requirements, entered into those positions before the Directive was issued and at a time when they were meeting the requirements. This means that departments are complying with the Directive.
  • As South African law does not allow for retrospective application unless specifically ordered by a court of law, the officials are being encouraged to improve their qualifications either through academic study or Recognition of Prior Learning (RPL).
  • Most of the Public Servants have since secured improved qualifications, however these are yet to be captured on PERSAL by their departments.
  • The DPSA is working with relevant departments to ensure that improved qualifications are correctly updated and captured on PERSAL.

Within the context of the Directive, the Department of Public Service and Administration (DPSA), fulfilling its role, compiles qualification data solely for SMS members in compliance with this Directive. The total number of SMS Members in each national and provincial government department is attached as Annexure A:

b) (i) and (ii):

The total number of SMS members with qualifications not specified on PERSAL as of 30 September 2023 is 1 801.

SMS Members with Qualifications Unspecified on PERSAL

Occupational Classification

Date Appointed In SMS

Total

 

Before 1 August 2016

From 1 August 2016

 

Total

1 259

542

1 801

Administrative Related

91

55

146

Advocates

 

1

1

Agriculture Related

2

 

2

Communication And Information Related

4

2

6

Computer Programmers.

 

1

1

Computer System Designers and Analysts.

 

1

1

Crime Investigators/ Misdaad Ondersoekers

 

1

1

Custodian Personnel

 

1

1

Economists

2

 

2

Finance And Economics Related

20

6

26

Financial And Related Professionals

18

11

29

Financial Clerks and Credit Controllers

2

 

2

General Legal Administration & Rel. Professionals

2

1

3

Head Of Department/Chief Executive Officer

20

6

26

Health Sciences Related

3

2

5

Human Resources & Organisational Development & Related Professions

10

4

14

Human Resources Related

11

4

15

Identification Experts

3

 

3

Information Technology Related

4

 

4

Legal Related

4

1

5

Natural Sciences Related

2

2

4

Operational Planning

 

1

1

Other Administration & Related Clerks and Organisers

2

3

5

Other Administrative Policy and Related Officers

2

 

2

Other Information Technology Personnel.

8

 

8

Other Occupations

9

 

9

Police.

 

1

1

Professional Nurse

1

1

2

Prosecutor

 

1

1

Risk Management and Security Services

4

 

4

Saps

1

1

2

Secretaries & Other Keyboard Operating Clerks

 

3

3

Security Officers

1

 

1

Senior Managers

1 027

432

1 459

Social Sciences Related

1

 

1

Social Work and Related Professionals

2

 

2

Trade/Industry Advisers & Other Related Profession

2

 

2

Veterinarians

1

 

1

Table 1: PERSAL Data as of 30 September 2023 Occupation Specific

End

29 December 2023 - NW3287

Profile picture: Ngcobo, Mr SL

Ngcobo, Mr SL to ask the Minister of Public Service and Administration

Whether his department has records of the total number of public servants in the Republic; if not, why not; if so, what are the statistics in each (a) department and (b) province?

Reply:

The following information reflects the total number of public servants in the Republic of South Africa. The information is obtained from PERSAL as of 30 September 2023
(3rd quarter 2023/2024).

a) The number of public servants in each National Department and Components are as follows:

TOTAL NUMBER OF PUBLIC SERVANTS IN THE NATIONAL DEPARTMENTS AND COMPONENTS

Agriculture, Land Reform and Rural Development

6 812

Basic Education

809

Civilian Secretariat for the Police Service

172

Communications and Digital Technologies

267

Cooperative Governance

632

Correctional Services

37 650

Employment and Labour

9 288

Environment, Forestry and Fisheries

3 323

Government Communication and Information System

410

Health

823

Higher Education and Training

29 295

Home Affairs

8 101

Human Settlements

467

Independent Police Investigative Directorate

369

International Relations and Cooperation

1 861

Justice and Constitutional Development

21 672

Military Veterans

125

Mineral Resources and Energy

1 445

National School of Government

212

National Treasury

1 932

Office of the Chief Justice

2 009

Office of the Public Service Commission

258

Planning, Monitoring and Evaluation

384

Police

186 143

Public Enterprises

156

Public Service and Administration

384

Public Works and Infrastructure

4 636

Science and Innovation

401

Small Business Development

203

Social Development

645

Sports, Arts and Culture

530

Statistics South Africa

3 260

The Presidency

463

Tourism

461

Trade, Industry and Competition

1 077

Traditional Affairs

101

Transport

687

Water and Sanitation

4 822

Women, Youth and Persons with Disabilities

109

TOTAL

332 394

b) The number of public servants in each Province is as follows:

TOTAL NUMBER OF PUBLIC SERVANTS IN THE PROVINCIAL DEPARTMENTS

Eastern Cape

112 003

Free State

55 501

Gauteng

179 702

KwaZulu-Natal

174 990

Limpopo

93 584

Mpumalanga

69 099

North West

64 076

Northern Cape

20 897

Western Cape

81 428

TOTAL

851 280

End

27 December 2023 - NW3806

Profile picture: Luthuli, Ms SA

Luthuli, Ms SA to ask the Minister of Small Business Development

Whether she will furnish Inkosi B N Luthuli with records of tangible achievements of her department since its establishment in 2014; if not, what is the position in this regard; if so, what are the relevant details?”

Reply:

In 1994, the new government inherited a highly unequal and concentrated economy, with very low levels of entrepreneurship, little to no black economic ownership, and an extremely weak and fragmented SMME support eco-system.

This made South Africa an outlier. SMMEs play a major role as a driver of growth and employment in both developed and developing economies.

To realise the growth and jobs potential of SMMEs, Government established the Department of Small Business Development in 2014. The mandate of the Department Small Business Development (DSBD) is defined: “to lead and coordinate an integrated approach to the promotion and development of entrepreneurship, Small, Micro and Medium Enterprises (SMMEs) and Co-operatives, and to ensure an enabling legislative and policy environment to support their growth and sustainability”.

Since its inception, the work of the DSBD has been driven by several key policy frameworks, including the National Development Plan, Vision 2030, which is aimed at harnessing the potential of SMMEs, Co-operatives and the informal sector, and sets specific goals for the small business sector as follows:

  • To enhance economic growth through SMMEs and Co-operatives as assessed through an increased contribution by the sector to GDP.
  • To enhance economic growth through SMMEs as assessed through an increased contribution by the sector to GDP.
  • To create 9 million of South Africa’s 11 million needed jobs by 2030 through the SMME sector.
  • To reduce the cost of regulatory compliance and promote ease of doing business for SMMEs and ensure policy coherence through partnerships among for SMMEs and ensure policy coherence through partnerships among key societal players, business and government.

The work of the DSBD has until recently been framed by the Integrated Strategy on the Promotion of Entrepreneurship and Small Enterprises (ISPESE), which was reviewed and a new national SMME and co-operatives strategy developed – the National Integrated Small Enterprise Development Strategic Framework (NISED) – adopted by Cabinet and launched in November 2022.

The ISPESE and NISED have been focused on addressing the core constraints faced by SMMEs and co-operatives, including:

  • Red-tape and regulatory burdens.
  • Market concentration, and lack of access to markets.
  • The lack of access to finance, and
  • Weak entrepreneurial and business development skills, and

Progress since 2014 is framed around what has been done to address these constraints and create a more enabling environment for SMMEs and co-operatives.

Red-Tape

To address the issues of reduced cost of doing business and regulatory compliance in South Africa, commonly referred to as red tape, the Department of Small Business Development (DSBD) is the custodian of red tape reduction (RTR) for Small, Medium and Micro Enterprises (SMMEs) and has initiated a number of interventions to reduce red-tape for SMMEs and co-operatives.

This includes reviewing the Businesses Act (1991), which was transferred from the Department of Trade Industry and Competition (the dtic) to the DSBD in the 2020/21 financial year. The DSBD has reviewed the Act and is in the process of finalising the Business Licensing Amendment Bill. Recently Cabinet has approved the National Business Licensing Policy for gazetting for public comments, by the end of the term a policy on Business Licensing will have been finalised.

The other piece of legislation which has been reviewed is the National Small Enterprise Act, 1996 (Act No. 102 of 1996). A National Small Enterprise Amendment Bill, 2023, has been developed and is currently before Parliament, National Assembly has referred this to the NCOP for concurrence and this should be finalised by the end of February by Parliament. The amendments:

  • provide for the establishment and registration, in terms of the Companies Act, No. 71 of 2008, of the Small Enterprise Development Finance Agency (SEDFA) and the subsequent incorporation into SEDFA of the sefa, the Co-operative Banks Development Agency (CBDA) and the Seda.
  • establish of the Office of the Small Enterprise Ombud Service ("the Office").
  • enable the Minister to declare certain practices in relation to small enterprises to be prohibited as unfair trading practices.
  • propose an amendment to section 20(2) of the Act to provide clarity on the interpretation of the powers assigned to the Minister in amending the Schedule to the Act as well as the definition for small enterprises, to allow for simplification of the Schedule.

The DSBD has also, in 2023, undertaken a “Rapid Review of ALL legislation that impacts SMMEs and Co-operatives” for “regulatory guillotining”, that is, at the level of National, Provincial and Local Government.

The DESBD has also supported red-tape reduction at municipal level, and has supported 23 Districts, 108 municipalities, and 4 Metros to roll out the Red-Tape Reduction Awareness Programme. Recently, the department has piloted the Pilot Administrative Simplification Programme (PASP) in association with KwaZulu-Natal EDTEA, COGTA and SALGA, targeting key red-tape reduction including access to infrastructure (specifically water as it permeates all municipalities), customer/complaints management, municipal policies, by-laws/regulations; land development and SPLUMA, building plan approval timelines/processes; and informal trading management. The idea is to consolidate this is a Municipal Red Tape Reduction Dashboard.

Market access

To address market access, the Department developed and continues to implement the SMMEs-focused Localisation Policy Framework that was adopted by Cabinet during the course of the 2020/21 financial year. At the end of 2022/23 financial year, 807 products produced by SMMEs, and Co-operatives were linked/introduced to domestic markets through working relationships with large retailers and wholesalers across the country against a five-year target of 1 000 products.

To drive localisation, the Department designed a focused Small Enterprise Manufacturing Support Programme (SEMSP) aimed at building and supporting SMMEs participating in the manufacturing value chain. The purpose of the SEMSP is to build a manufacturing sector for an improved industrial base through a focused import replacement programme and build the industrial base for both the domestic market and external market. The Programme aims to contribute to South Africa’s localisation strategy. As at 30 September 2023, SEMSP approvals concluded amounted to R879.2m to 94 SMMEs, facilitating 5295 jobs.

The DSBD has also partnered with the International Trade Centre to improve market access for women-led enterprises. As of 30 September 2023, the total cumulative number of South African members registered on the ITC SheTradesZA platform is 3004, whilst the ITC'S web developers finalise the system update. The Department is continuing to intensify its effort working towards realising its outcome to increase participation of women, youth and persons with disabilities, SMMMEs and Co-operatives in the domestic and international markets.

To date, 188 SMMEs and Cooperatives were exposed to global market opportunities, between 2022/23 and 2023/24, through international missions, exhibitions, and fairs. Our work in exposing SMME products and services to global markets through the Small Business Exported Development Scheme has seen an extension in driving the African Continental Free Trade Area (AFCFTA) markets during the 2023/24 financial year.

The other area of focus for DSBD has been the opening of corporate supply chains for SMMEs and co-operatives. To this end, an Enterprise Supplier Development (ESD) Community of Practice (COP) has been established with the private sector to overcome fragmentation and strengthen the key element of targeted entrepreneurship development. The ESD COP is complemented with an ESD e-learning platform and a series of masterclasses by Seda along with a website for COP member recruitment and the promotion of capacity building events and activities.

Access to finance

Here the focus has been on supporting SMMEs and co-operatives from under-served communities with access to finance, be it direct lending, blended finance, and micro-finance.

There have been numerous instruments designed and impended since 2014. This includes those for supporting SMMEs, Cooperatives and informal enterprises in townships and rural areas such as the Township and Rural Entrepreneurship programme. There are instruments for youth, such as the Youth Challenge Fund, those targeting people with disabilities such as the Amavulandlela Funding Scheme, as well as those implemented during COVID-19 to support SMMEs and Cooperatives experiencing financial distress such as the Business Viability Programme

Since 1 April 2014 to 31 October 2023, the DSBD, through its implementing agency sefa, approved loans to the value of R12.3 billion, disbursed into the South African economy R14.5 billion[1], and provided financial support to 597 473 SMMEs and Co-operatives. These funded clients in turn helped create and retain 809 148 jobs.

In terms of developmental impact:

  • sefa disbursed R11.6 billion to enterprises owned by black entrepreneurs,
  • R5.5 billion to women-owned businesses,
  • R2.9 billion to businesses owned by youth,
  • R109 million to enterprises owned by persons with disabilities,
  • R1.9 billion to small businesses operating in the townships, and
  • R4.4 billion to enterprises operating in rural towns and villages.

The DSBD has also developed an SMME and Co-operatives Funding Policy to ensure improvement in access to finance for SMMEs and Co-operatives. The Policy is now at NEDLAC.

Business Development Services

Much of DSBD’s entrepreneurship and business development support is implemented through Seda. Since 2014, the following has been achieved:

Number of clients reached through entrepreneurship awareness sessions

201 879

Number of clients supported with various interventions

414 205

Number of clients supported through Incubation Programme

69 840

Number of incubation centres established

110

Number of jobs created by supported clients

38 787

Number of jobs sustained by supported clients

62 118

The 110 Incubation Centers and Digital Hubs are aimed at nurturing new and existing small enterprises by providing them with financial and technical advice pertaining to the running of a business. The breakdown of these 110 that are in various stages of implementation is 73 Technology Business Incubators; 31 centers for Entrepreneurship and Rapid Incubation; and six Township and Digital Hubs that focus on various designated sectors within which small business start-ups are functioning.

The goal of increasing incubation centers and digital hubs to 100 by 2024 has already been achieved, and the new focus is on improving governance, independent sustainability and returns on investments.

Conclusion

As is evident, much has been achieved since the establishment of the DSBD in 2014. But much more needs to be done to place SMMEs at the centre of driving the country’s inclusive growth. The merger of Seda, sefa and the CBDA will provide seamless and customised support to the sector but needs to be effectively capitalised to effectively contribute to addressing the triple challenges of poverty, unemployment and inequality, and leveraging the kinds of partnerships envisaged in the NISED.

  1. Due to the nature of sefa’s partnership with the intermediaries, disbursements are always higher because the intermediaries roll sefa’s money several times a year before paying it back.

27 December 2023 - NW3817

Profile picture: Luthuli, Mr BN

Luthuli, Mr BN to ask the Minister of Small Business Development

What (a) total amount was spent on the sustenance and development of (i) small-, medium- and micro enterprises and (ii) informal businesses in the (aa) townships and (bb) rural areas during the COVID-19 lockdown in each province, (b) post-COVID-19 support was offered to the specified businesses, (c) total number of the businesses supported in this way during the COVID-19 lockdown are still operational and (d) are the further relevant details in each case?”

Reply:

I have been advised that:

a) The Department of Small Business Development (DSBD) through the Small Enterprise Finance Agency (sefa) provided support to small businesses during the Covid-19 pandemic. sefa contributed towards the Covid-19 emergency fund (relief programme) which was aimed at providing relief to small businesses during the pandemic. Through the fund, sefa disbursed R316 million to 1 144 small businesses. Of this amount, R28 million was disbursed to businesses in townships and R60 million were to businesses in rural areas.

(a)(i)&(ii)

b) An additional R10 million was disbursed towards business growth and resilience facilities.

R105 million has been approved for SMME payment holidays. The Department further introduced the Economic Recovery Programme to assist small businesses in the South African economy. The economic recovery programme disbursed R1.3 billion to small businesses operating in various provinces as per the table below. The disbursements to small businesses operating in townships amounted to R552 million and R392 million to those in rural areas.

A table with numbers and text

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c) Through the Covid-19 relief scheme, a total of 1 161 clients were funded. As at end of September 2023, 450 clients had their loans settled, 407 are still honouring their payment obligations and 304 clients are not paying.

d) The businesses that have settled their loans are no longer under sefa monitoring. 450 clients are still honouring their payments although their term has expired. These businesses are still operational and sefa is considering restructuring these loans. The 304 clients which are not paying sefa and are handed over to pursue collection. An exercise is underway to re-verify their existence.

27 December 2023 - NW4021

Profile picture: Luthuli, Mr BN

Luthuli, Mr BN to ask the Minister of Small Business Development

What was the total (a) amount spent on her and her Deputy Minister’s travel costs in the 2022-23 financial year, (b) number of trips she and her Deputy Minister undertook in the specified financial year, (c) amount spent by her department on (i) hotel, (ii) residential and/or (iii) other accommodation for her and her Deputy Minister and (d) amount of any further costs incurred by her department in relation to such travel?

Reply:

I have been advised that:

(a) The total amount spent on the Minister and her Deputy Minister’s travel costs in the 2022-23 financial year is R2 615 876.16

(b) The number of trips the Minister and her Deputy Minister undertook in the specified financial year: 198 domestic trips and 12 international trips

(c) The amount spent by her department on:

(i) Hotel: R474 660.68

(ii) Residential: R0.00 (The Deputy Minister has been allocated state accommodation in Cape Town and Pretoria and DSBD has not incurred costs on rental or maintenance as it is the Department of Public Works and Infrastructure (DPWI)-Prestige responsibility. The monthly fee is charged from the Deputy Minister’s salary in line with the lease agreement signed by herself (an amount of R1 196.57). The Department of Small Business Development (DSBD) has only spent on relocation costs and related housekeeping services.

(iii) Other accommodation for the Minister and her Deputy Minister: R0.00

(d) The amount of any further costs incurred by her department in relation to such travel: R2 141 215.48, this is the cost of domestic air travel, car hire and international air travel (see table below).

DSBD - Minister and Deputy Minister Travel Expenses for the Period April 2022 to March 2023

Category

Number of transactions

Amount “R”

Domestic Air Travel

195

783 799.39

Accommodation Domestic

98

474 660.68

Car Hire

62

1 234 134.69

International Air Travel

12

123 281.40

Total

367

2 615 876.16

27 December 2023 - NW4022

Profile picture: Luthuli, Mr BN

Luthuli, Mr BN to ask the Minister of Small Business Development

Whether her department enables positive and consistent contributions of township and village economies in each province that (a) encourage entrepreneurship in townships and villages and (b) provide sustainable employment to township dwellers; if not, why not, in each case; if so, what are the relevant details in each case?

Reply:

I have been advised that:

a) In Encouraging entrepreneurship in township and villages:

The Department of Small Business Development (DSBD) has in place the Township and Rural Entrepreneurship Programme (TREP) which aims to assist informal, micro and small enterprises grow their businesses. The financial package is structured at a maximum value of R1 000 000 that consist of:

  • Maximum of R1 000 000.00 towards working capital, cost of equipment, or any other CAPEX (paid directly to the supplier where applicable).
  • The financial package will be offered in the form of a blended finance with 50% of the total approved amount being a grant i.e., a maximum grant amount of R 100 000.00.

TREP supports all small enterprises operating in townships and rural areas that meet the qualifying criteria including, but not limited to, the following:

    • Clothing and Textile
    • Bakeries and Confectionaries
    • Tshisanyama and Cooked Food
    • Retail (including restaurants, car washes, general dealers etc.)
    • Automotive
    • Personal Care
    • Artisans

Also, the Small Enterprise Development Agency (Seda) has a big network of offices in the country, with 53 branches and 52 co-location points. Our co-locations are specifically established to extend access to Seda services in underserviced and rural South Africa. It is also realised that there are still several areas where entrepreneurs and SMMEs still must travel far for them to access services. Seda has therefore established 80 service points or access points. Seda will continue to expand service delivery to rural communities through various modalities whilst striking a sound balance between community needs, budget availability and collaboration with ecosystem partners. Furthermore, the organisation has 110 incubators, of which 32 are based in rural areas.

The agency also employs alternative mechanisms for ensuring that services are available, like mobile offices. Information is provided through DSBD, Seda and the Small Enterprise Finance Agency (sefa) websites and contact centers. Where possible, Seda also provides virtual interaction with those clients that can attend, for example online training and webinars. To this end, 801 clients attended virtual sessions during the 2022/23 financial year, and 1 630 during the second semester of the current financial year (2023/24). Support includes, amongst others, Pitch for funding, Access to markets, including Pop-up markets, Digital skills development training, Inventory Management Training, etc.

b) Providing sustainable employment to township dwellers:

While the Township and Rural Entrepreneurship Programme (TREP) described in part (a) is aimed at the individual entrepreneur, the National Informal Business Upliftment Strategy (NIBUS) seeks to uplift informal businesses and micro enterprises through a systemic and institutional response collaborating with and supporting local chambers/business associations and municipal Local Economic Development offices to deliver and facilitate access to upliftment programmes aimed at providing sustainable employment to township and rural dwellers, targeting informal business entrepreneurs from designated groups, i.e., women, youth, and people with disabilities.

    1. NIBUS has two Instruments under its enterprise development pillar, namely the Shared Economic Infrastructure Facility (SEIF) and the Informal and Micro Enterprise Development Programme (IMEDP).
    2. The Informal and Micro Enterprises Development Programme (IMEDP) is a 100% grant offered to informal and micro enterprises from a minimum grant amount of five hundred rand (R 500.00) up to a maximum of ten thousand rand (R10 000.00) to assist them in improving their competitiveness and sustainability.
    3. The key objective of this financial facility is to provide developmental support to informal and micro businesses that are operating in townships and rural areas of South Africa with an emphasis on support for designated groups, i.e., women, youth and persons with disabilities.
    4. The programme aims to develop and strengthen the capacity of credible informal and or micro enterprises to be sustainable through the provision of access to information, appropriate business development support and business infrastructure (machinery, tools, equipment, and stock) and excludes (working capital, conversions, clothing) for eligible applicants.
    5. Going forward, it is planned that Informal and micro enterprises are to be supported using the DSBD’s Informal and Micro Enterprise Development Programme (IMEDP) capped at R 30 000.00 for informal businesses and the Small Enterprise Development Agency (Seda) to support micro businesses with amounts above the R 30 000.00 threshold.
    6. The funding will be 100% grant for the informal sector and subject to availability of funds.

During the 2022/23 financial year, the Small Enterprise Development Agency (Seda) provided a total of 21 181 skills development and support interventions to township and rural businesses and 10 836 interventions during the second semester of the 2023-24 financial year. These interventions included amongst others Basic Business Skills, Business Start-Up 1, Cybercrimes, South African Revenue Service (SARS) Incentives, Costing & Pricing, Business Planning, Business Model Canvas, Financial Management training, Access to funding, Point of Sale Training, Access to Funding, Business Plans, Mentoring and various others.

Seda also has a dedicated programme, the Basic Entrepreneurship Skills Development (BESD) which was jointly developed by the Agency and German Federal Ministry for Economic Cooperation and Development via Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) since 2012. GIZ left the programme in December 2016 and since then the programme is funded by the National Skills Fund for an amount of R84 million. The BESD approach utilises coaching as an innovative methodology to facilitate and reinforce learning and development support to emerging entrepreneurs. A total of 2 038 Emerging Entrepreneurs were supported through the programme to date. All the project sites across the country were completed in 2019, we are currently utilising remnants of the budget to benefit more SMMEs.

Seda, through its Learning Academy, has also developed different training programmes. These programmes are credit bearing and accredited by the Services Seta. Quality training aims to assist organisations of all types to implement and operate the Quality Management System (QMS) to increase effectiveness, consistency, and customer satisfaction, explain the benefits of implementing QMS and understand the quality, management principles. Whilst Food safety introduces Food Safety, Understand Pre-Requisite programme, HACCP (Hazard Analysis, Critical, Control, Point) system and HACCP principles and Implementing a Food Safety Management System (SANS 22000:2019.).

Seda has also forged the following skills development partnerships namely:

  • A 3-year partnership with the National Skills Fund (NSF) to benefit 14 000 beneficiaries for a total budget of R 592 275 000. The aim of the project is to recruit unemployed graduates with Accounting and Business Management qualifications to be trained on New Venture Creation, Coaching, and Mentorship Programme to enhance their skills to provide support to Micro Enterprises. Seda will use coaching as an innovative methodology to facilitate and reinforce learning and development support to Micro Enterprises and the unemployed graduates will be trained on new venture creation as well as business coaching to enable them to transfer skills and knowledge to Micro Enterprise owners.
  • Seda and Wholesale and Retail Seta signed an agreement to support one thousand (1 000) Tuckshops, General Dealers to the value of R 9 975 000.
  • In 2021, DSBD, Seda and Merseta signed Agreement for Merseta to release a discretionary grant to Seda to the value of R 50million. The funding will be provided in a phased approach over a 3-year period. The purpose is to train Small Enterprise in the Automotive Trade Sector as well as facilitate Artisan Recognition of Prior Learning (ARPL).
  • A partnership between Seda, GIBBS and the Cherie Blair Foundation for Women was forged. The Cherie Blair Foundation has an award-winning Mobile App that offers women entrepreneurs essential business training and support on the go. It features a range of learning tracks on topics including launching a business, accessing finance, expanding market access, e-commerce, and mobile money.

During the first two quarters of the 2023/24 financial the Township and Rural Entrepreneurship Programme supported the sustaining and/or creation of 10 884 jobs, whilst 38 059 jobs were supported in the 2022/23 financial year.

Proposed future interventions will utilise a macroeconomic approach that combines the expertise of public and private sector partners to counteract resource and capacity constraints.

Furthermore, provision of sustainable employment to township dwellers the level of the social economy and community empowerment levels include through the Co-operatives Development and Support Programme (CDSP), for new and budding primary co-operatives.

  1. There is a start-up grant of up to R1,5 million, up to R2.5 million for growing primary co-operatives and up to R5 million for secondary co-operatives.
  2. All co-operatives to be funded are subjected to co-operative governance training so as to ensure that they understand what is expected from them in running a successful organisation.

22 December 2023 - NW3908

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Nodada, Mr BB to ask the Minister of Finance

With regard to the correspondence by the Government Employees Pension Fund in November 2022 informing its members who intended to retire in November or thereafter that they would not receive their full pension payments, and in light of the complaint received from a retiree (details furnished) that despite applying for her pension before November and not receiving any letter she did not receive her full pension, (a) what informed the retroactive application of the November correspondence and (b) how many individuals were affected by such retroactive application?

Reply:

a) The GEPF implemented its revised actuarial factors with effect from 1 November 2022. The actuarial factors of the GEPF are updated in accordance with any changes to the actuarial assumptions at each statutory valuation of the GEPF. In terms of the Government Employees Pension Law, 1996, (GEP Law), the actuarial factors are consulted with public sector labour unions. Upon conclusion of this process, the actuarial factors were implemented with effect from 1 November 2022, as referred to above. Pension benefits, as prescribed in the GEP Law, are determined and finally calculated as at date of service termination. The GEP Law specifies the date on which a benefit shall become payable to a member, pensioner or beneficiary, and this date is typically the last day of service at the employer.

Any Estimate of Benefits provided prior to the last date of service, is a mere estimation of current/future benefits. This is clearly indicated on the Estimate of Benefits which indicates that benefits are awarded in terms of the rules of the Fund and will be confirmed by the Fund when the benefits become payable.

Pension benefits are thus not calculated and/or confirmed on the date applying for retirement but on the information as on the last day of service. In this specific instance the Estimate of Benefits referred to, was provided as at 30 September 2022, being a date prior to the last day of service.

The actuarial factors applicable as from 1 November 2022 adjusted the actuarial factors applicable at 30 September 2022 and accordingly influenced the calculations. It is however not correct to state that the member did not receive her full pension. Members continue to receive their full benefits in accordance with the GEP Law, 1996, and rules. The adjustment to the actuarial factors were not applied retroactively as the adjustments were implemented effectively from 1 November 2022 onwards, applying only to exits on or after 1 November 2022.

b) The amended actuarial factors, which became applicable as from 1 November 2022, influenced all resignations as well as other exits where members had less than 10 (ten) years pensionable service and which members terminated service on or after 1 November 2022. Thus, all resignations and other exits from the GEPF, where the members’ exit date was on or after 1 November 2022, would have been influenced by the adjustment of the actuarial factors as all such benefits refer to the actuarial interest a member has in the GEPF. The adjusted actuarial factors was applied to all pension benefits paid as a result of resignation and other exits from the Fund where members had less than 10 (ten) years pensionable service, where the exit from the Fund occurred on or after 1 November 2022.

It is again confirmed that there was no retrospective application of the adjusted actuarial factors as it was implemented from a future date being 1 November 2022. The application of the adjusted actuarial factors follows the approval thereof by the GEPF Board of Trustees after the required consultation process with organized labour as per the GEP Law, 1996 and Rules of the GEPF.

The GEP Law,1996 and Rules provides for the adjustment to actuarial factors as part of the benefit structure of the GEPF. Actuarial interest factors are based on a set of financial and demographic assumptions as recommended by the Fund’s valuator in the statutory actuarial valuation report. These assumptions are expected to reflect the experience of the GEPF membership and its investments. The assumptions are based on reasonable expectations about future events and are guided by actual experience and statistics. The main driver of the actuarial factors is the investment returns above inflation, which the Fund’s investments are expected to earn from now until the pension benefits are payable. Economic conditions however change from time to time and, as a result, the actuarial interest benefits can rise or fall depending on how the actuarial factors is adjusted, as explained above.

Members however still received their pension benefits prescribed in the Rules of the GEPF as per the formula set out in the Rules.

It must be clarified that the adjustment to the actuarial factors apply consistently to all active GEPF members, maintaining fairness across the board and reflecting current economic realities.

22 December 2023 - NW3981

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Abraham, Ms PN to ask the Minister of Finance

What is the (a) performance of the amendments of Regulation 28 asset allocation for infrastructure of 40% in relation to public infrastructure as the Economic Reconstruction and Recovery prioritises infrastructure and private investment and (b) impact of the increased allocation of 45% foreign asset exposure on domestic investment?

Reply:

a) It is too early to provide a detailed answer to the question as the amended Regulation 28 only came into effect on 1 January 2023. The first investment reports, post the amendment, will be submitted to the Financial Sector Conduct Authority in 2024. Secondly, it will be difficult to make the comparison since there is no reference point to compare changes in investment in infrastructure due to the ERRP with the amendment to Regulation 28. It is also not only retirement funds that are expected to invest in infrastructure, but other asset managers that are not subject to Regulation 28.

In general terms the financial sector continues to heavily fund government. As noted in the MTBPS, National Treasury will seek to achieve infrastructure investment growth through establishing an Infrastructure Finance and Implementation Support Agency that will systematically address the need to crowd-in private sector finance and expertise into the public infrastructure programme. In addition, government will also widen the scope for concessional borrowing by creating new mechanisms through which private-sector investors and multilateral institutions can co-invest with government for selected infrastructure projects. These interventions will lay the basis for broader investment by private sector including pension funds through the 45% asset allocation to infrastructure investment in Regulation 28.

b) The share of foreign exposure relative to the 45% upper limit increased across all institutional investors moderately. Where increases in offshore asset allocations have occurred, retail investors i.e., unit trusts have accounted for the majority in percentage terms. For all institutional investors, offshore exposure remains at about 23% of total assets under management (AUM). The data suggests that the impact of the increases in offshore allowance has expanded the scope of possible outflows but has not triggered actual large outflows in line with the maximum permissible amounts.

22 December 2023 - NW4081

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Joseph, Mr D to ask the Minister of Sport Arts and Culture

(1). With reference to the failure of a certain person (name and details furnished) to pay a certain person (name also furnished) money that is owed to him despite promising to do so, (a) how is it possible that the specified person remains an executive committee member of the National Professional Promoters Association and (b) what example is set by the situation; (2). with reference to the announced compulsory training for licensees that was announced by Boxing South Africa (BSA) at very short notice earlier this year, leading to many licences’ being unable to attend the initial and/or the second, cancelled round of training leading to licensees now being refused licenses, how can BSA cancel training and then penalise licensees; 3(a). how were the trainers selected since neither of the trainers have ever acted as a ring official in a professional bout (details furnished) and (b) what are the reasons that the process did not go out to tender?

Reply:

The response to question from Boxing SA is as follows:

(1). Most promoters owe Boxing South Africa due to the income declarations that are made after tournaments through affidavits in terms of the Boxing Regulations. All promoters who owe Boxing South Africa are subject to this arrangement and therefore none of the debts by the promoters have prescribed, hence Boxing SA is not able to take any action based on this arrangement.

(a). The National Professional Boxing Promoter Associations is an independent structure of licensed promoters established in terms of section 28 of the Boxing Act.

This structure operates on its own constitution, and it held elections of its leadership, and all the office bearers were duly elected in an open and transparent process. It is not for BSA to dictate who are supposed to be the leaders of the structure. As far as the question around the boxer is concerned, it must be noted that contracts between Promoters and Boxers are concluded without the intervention of Boxing South Africa and so are disputes arising therefrom.

(b). The Board resolved to establish a sub-committee that looks at the tournament applications of each promoter and each promoter that is owing Boxing South Africa appears before the committee to commit to some arrangement in terms of which the debt can be settled and once this arrangement is in place the promoter is then allowed to stage tournaments subject to payment arrangements as approved by this committee.

(2). Boxing SA responded as follows: It would amount to fallacy to hold the view that Boxing South Africa penalises licensees upon postponement of its programmes. Boxing South Africa held its second phase training timeously and those who were successful in the assessments have been duly licensed.

(3)(a&b). The Board established a committee in terms of section 7 of the Boxing Act and this committee was established based on experience and therefore there was no need for
the training to be outsourced.

 

 

22 December 2023 - NW3145

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Abrahams, Ms ALA to ask the Minister of Communications and Digital Technologies

On what date was the last SA Social Security Agency (SASSA) payment technical infrastructure and software updated by the SA Postbank, (b) what (i) year and (ii) model is the payment technical infrastructure and software currently in use for SASSA payments and (c) what is the cost of the payment technical infrastructure and software for the current financial year?

Reply:

(a)-(b) The South African Postbank SOC Ltd processes and pays SASSA grants using an Integrated Grant Payment System (IGPS) based on FSS Tech 5.1.0 Software and a payment switch, Postillion Switch 5.6 Software. The payment switch was last updated on 28 September 2023, version 2023.V1.5.0.  

(c) The payment technical infrastructure and software, IGPS are licensed until March 2024 for R32.2 million for the duration of the contract.

Thank You.

22 December 2023 - NW3999

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Tambo, Mr S to ask the Minister of Communications and Digital Technologies

Whether the SA Broadcasting Corporation has relinquished its part ownership on videos that were produced during the 1980s in partnership with record companies; if not, what is the position in this regard; if so, what were the terms of the termination?

Reply:

The Rules Committee took a decision on 4 and 23 November 2022, in respect of questions requesting information prior to 1994, that such questions should take into account the possible non-availability of information before the pre-democratic era (see page 10 of attached ATC).

The SABC has indicated that it is proving difficult to track information dating back to the 1980s.

Thank You.

22 December 2023 - NW3975

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Joseph, Mr D to ask the Minister of Sport Arts and Culture

(1). Whether he can furnish Mr T W Mhlongo with any good reasons why the entire board of Boxing SA (BSA) should not be suspended with immediate effect, given that recent notices served on licensees of BSA to appear at disciplinary hearings in August of 2023 has seen the licensees incorrectly charged as officials of BSA and not as licensees (details furnished); if not, why not; if so, what are the relevant details; (2). whether he is able to furnish a (a) clearly defined timeline and (b) date of when the matter of a certain person (name furnished) will be resolved; if not, why not; if so, what are the relevant details; (3). what are the reasons that (a) a certain person (name furnished), who has been a boxing promoter for over 15 years, is still unable to promote a tournament without receiving government funding since promoting boxing is a business and (b) his department, and essentially taxpayers, must finance the businesses of a certain select group of boxing promoters; (4). what are the reasons that some of the promoters who are continually assisted by the Government financially are the promoters who do not adhere to the Boxing Act, Act 11 of 2001, and who pay some of the lowest purses?

Reply:

(1). The Minister announced the appointment of the new board on Tuesday, 28 November 2023. The new board assumed it’s duties on 12 December 2023 whilst the erstwhile board concluded its term on Monday, 11 December 2023. The new board has a responsibility to review all outstanding legal and disciplinary matters not concluded by the previous board before the end of the financial year 2023/2024 ending in March 2023

(2)(a). The Qithi matter has been settled.

(3)(a&b). Provincial Departments are at liberty to implement sport programmes that benefit their athletes and communities. However, Boxing and all National Federations must get to a point where they run with limited support from government, this requires corporate investment. To this end, BSA has committed to developing a funding model for the sector. BSA is expected to provide details of this strategy (operating model) with due dates. This will be shared with Parliament as soon as BSA provides these, a timeline of 31 March 2024 has been set for this plan.

(4). BSA cannot interfere with contracts between promoters and the boxers. However, BSA will investigate the possibility of establishing minimum purse monies for specified bouts to ensure that there is no exploitation of boxers. There is a need to ensure that there is profitable business model for the sport of boxing, and this is part of the turnaround strategy that BSA is already implementing.

 

 

22 December 2023 - NW3900

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Alexander, Ms W to ask the Minister of Finance

Whether, noting that the Integrated Financial Management System (IFMS) has reported fruitless and wasteful expenditures of over R2,6 billion by the IFMS project since its inception and Auditor-General South Africa accordingly raised a qualified audit opinion against the National Treasury (details furnished), which subsequently led to various state agencies, including Special Investigating Unit, the Public Protector South Africa and the Directorate for Priority Crime Investigation conducting investigations to this effect, he will furnish Mrs WR Alexander with the findings of these investigations?

Reply:

The investigations have not been finalised and as a result the National Treasury is unable to provide a response to the above question at this stage. The Honourable Member is encouraged to request the findings from the relevant institutions when the investigations are complete.

22 December 2023 - NW3982

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Skosana, Mr GJ to ask the Minister of Finance

What (a) is the performance of the Bounce-Back Support Scheme relative to the COVID-19 loan guarantee scheme and (b) are the profiles of the beneficiaries?

Reply:

a) In 2020 National Treasury launched the Covid Loan Guarantee Scheme (LGS) as part of a package of measures to help small and medium business survive the most severe lockdowns related the global Covid pandemic. The LGS enabled eligible businesses to access loans via commercial banks in terms of a finance facility administered by the Reserve Bank. At the termination of the LGS scheme (27 March 2021), banks had approved 14 827 in loans, with the LGS providing R14,6 billion in loans.

Following the conclusion of the LGS, South Africa experienced another economic set-back due to civil unrest in KwaZulu-Natal and Gauteng from the period 8 July 2021 to 19 July 2021. The civil unrest resulted in damage to business properties and caused major supply chain disruptions. The impact of the civil unrest was mostly felt by businesses, some of which were still recovering from economic losses caused by the Covid-19 pandemic induced lockdowns.

The Bounce Back Support Scheme (BBS) was launched in April 2022 and was terminated in April 2023. This scheme operated on an opt in basis. The BBS resulted in 3211 small businesses being provided with support. The total disbursed amounts was around R 1 billion (R935,385,620.)

2. Data on the geographic and other demographic information was not collected.

22 December 2023 - NW3403

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Manyi, Mr M to ask the Minister of Finance

In light of the fact that the Auditor-General has reported a 31% shortfall in terms of upgrading unqualified audit outcomes into clean audit in the National Treasury and all 16 entities that report to him, what actions has he put in place to achieve 100% clean audit in (a) the National Treasury and (b) all the entities that report to him?

Reply:

1. NATIONAL TREASURY

The department has developed an audit action plan to address audit findings and improve on the quality of reporting on both the financial statements and performance information. The audit action plan will be presented quarterly to the NT Audit Steering Committee, where the responsible officials identified as per the action plan will be invited to provide progress updates on the proposed action plan.

The monitoring of the audit action plan will be facilitated by Internal Audit, wherein they will engage with the respective responsible officials on the inputs for the action plans to be implemented as well as monitoring the effectiveness of the corrective measures.

Continuous improvements on the effectiveness of the Internal Control through frequent assessment and enhancement of current controls to detect and prevent any deficiencies that may potentially hamper the department to achieving a clean audit. These includes amongst others the strengthening controls on the effectiveness of:

  • Contract Management review processes to detect and prevent any possible Unauthorised, Fruitless & Wasteful, and Irregular Expenditure;
  • Proactively engaging relevant stakeholders such as Office of the Accountant General, Internal Control and Audit Steering Committee on significant extra ordinary transactions that pose a potential for material misstatements i.e. Land Bank and ESKOM; and
  • Identifying high risks areas coming from prior year audit to initiate early engagements and discussions to prevent the reoccurrence of material findings.

Of the 11 entities reporting to the Minister of Finance, 6 entities received an unqualified audit opinion, while 5 received an unqualified audit opinion with emphasis of matters.

2. ACCOUNTING STANDARDS BOARD (ASB)

We have only ever received unqualified (“clean”) audits since the inception of the ASB in 2002. This includes the audit for the financial year ended 31 March 2023.

3. CO-OPERATIVE BANKS DEVELOPMENT AGENCY (CBDA)

The CBDA is a relatively small entity without its own internal audit function. The CBDA appointed a service provider to perform qualify reviews during the 2022/23 annual financial statements. This measure resulted in an unqualified audit outcome with no material misstatement for the 2022/23 annual financial statements.

Five of the findings on material misstatements of the 2022/23 annual financial statements were resolved and one, relating to non-compliance with legislation, was resolved. The only outstanding finding relates to consequence management, which is in progress. The Acting Managing Director, after his re-appointment in July 2023, has now concluded the remaining consequence management matters and has sent it to NT Internal Audit for due diligence, as requested by the CBDA Audit Committee. All consequence management issues will be finalised during this financial year.

Yet again, a service provider has been appointed to perform qualify reviews for the 2023/24 annual financial statements.

The AMD is confident that the measures put in place will achieve a 100% clean audit for the 2023/24 financial year.

4. DEVELOPMENT BANK OF SOUTHERN AFRICA (DBSA)

N/A - DBSA achieved a clean audit.

5. FAIS OMBUD

We confirm that the FAIS Ombud Office achieved a clean audit for the 2022/23 financial year and will continue to strive to achieve it.

6. FINANCIAL INTELLIGENCE CENTRE (FIC)

The Financial Intelligence Centre (FIC) has achieved a clean audit in its 2022/23 financial year. The FIC will continue on this trajectory of rigorous financial management in the current financial year.

7. FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA)

The Financial Sector Conduct Authority (FSCA) has adopted a comprehensive approach to maintain a clean audit status from the Auditor-General of South Africa (AGSA). Its commitment to financial prudence, transparency and accountability drives its efforts to ensure that Annual Financial Statements (AFS) are free from material misstatements, whether due to fraud or error and the Annual Performance Report (APR) meets the highest standards of accuracy and compliance. The following are the key measures the FSCA has put in place to maintain a clean audit status:

1. Annual Financial Statements

A dedicated team of qualified and experienced personnel is responsible for preparing the AFS. They ensure strict compliance with relevant accounting standards, the Public Finance Management Act (PFMA) and other applicable legislation. The Executive Committee (EXCO), Strategic Management Committee (SMC), Audit and Risk Committees provide oversight of the FSCA’s monthly, quarterly and annual financial reporting.

2. Irregular, Fruitless and Wasteful Expenditure

To prevent irregular or wasteful expenditure, the FSCA has implemented a rigorous multi-level approval process and established a system of internal controls. These measures ensure that all financial transactions align with organisational goals and adhere to FSCA internal policies and applicable legislation.

3. Predetermined Objectives

The FSCA’s Monitoring and Evaluation unit reviews quarterly reports and verifies the submissions against each division’s portfolio of evidence to ensure that all reports accurately reflect the performance against the predetermined objectives laid out in the Annual Performance Plan.

4. Procurement and Contract Management

The FSCA procurement decisions benefit from the expertise of supply chain professionals and the counsel of the Head of Office of General Counsel, who advise the Bid Adjudication Committee on the legal aspects of all procurement decisions.

5. Compliance with Key Legislation

The compliance unit continuously monitors the FSCA’s adherence to relevant policies, legislation governing financial matters, including the PFMA and other applicable legislation.

6. Effective Internal Control Systems

The internal audit function overseen by the Audit Committee reviews internal controls annually in alignment with the FSCA's risk profile. The audit annual plan incorporates a pre-assessment of financial and performance reporting. Additionally, all findings raised from audits, if there are any, are recorded in the audit tracker and implementation of controls as per the audit recommendations, are monitored on a monthly basis. The Governance, Risk and Assurance department conducts a thorough annual risk assessment to identify potential risks related to financial and performance reporting and takes steps to mitigate them. Regular training is provided to personnel responsible for financial and performance reporting to ensure that reports produced are in accordance with applicable laws and regulations.

7. Governance

The FSCA has four governance committees in place authorised to provide oversight and make recommendations to EXCO. These are the Remuneration, Risk, Audit, and Social and Ethics Committees. These committees have approved terms of reference that outline the purpose, scope, and operational rules for each committee. All committees have annual evaluation processes in place to measure the effectiveness of each committee.

Through these measures, the FSCA is dedicated to achieving and maintaining a clean audit status, demonstrating a commitment to uphold the highest standards of financial integrity, transparency and accountability.

8. GOVERNMENT EMPLOYEES PENSION FUND (GEPF)

The GEPF has received unqualified audit outcomes for 26 consecutive years from 1998 to 2023.

9. GOVERNMENT PENSIONS ADMINISTRATION AGENCY (GPAA)

The Government Pensions Administration Agency (GPAA) has historically never achieved a clean audit due to irregular expenditure and the inadequate consequence management related to it. The GPAA has made a concerted progress towards a clean audit outcome during 2022/23 financial year under the guidance of the newly appointed Chief Executive Officer and the Acting Chief Financial Officer. This is evidenced by a visible R14 million (33%) decrease in the irregular expenditure of (R29 million) reported during 2022/23 against the R43 million reported during 2021/22. The R25 million of irregular expenditure was due to the historic irregular recurring contracts emanating from previous financial years. The CEO GPAA has taken a firm stance and decision to terminate these recurring irregular contracts in order to halt the continuation of irregular expenditure.

The decrease in irregular expenditure was achieved due to management initiatives of improving the internal controls around the procurement processes. The GPAA CEO, Acting Chief Financial Officer and relevant Chief Directors also improved on the implementation of historical pending consequence management cases relating to irregular expenditure.

All these initiatives took place even though the GPAA has operated without the following Level 15 Executive positions for a decade:

Chief Financial Officer

Chief Operations Officer

Head Corporate Services

A decade long lack of Director-General Positions at GPAA has led to this void and the fact that we are currently operating at over 200 contract positions, has led to the instability of the work force. The finalisation of vacant Director General positions is currently in the DG: Treasury’s desk and we await feedback. Subsequently on the 7 June 2023; The Minister of Finance has recommended to the Minister DPSA the GPAA structure for approval. The GPAA still await the approval of the baseline structure from DPSA. Some supply chain management vacancies still need to be filled to improve on the capacity and performance of the unit. The approval of the structure will ensure that operationally we are more stable and rigid in achieving our mandate and circumvent matters that impede the organisation from achieving a clean audit, amongst others.

Management’s efforts has been carried forward into 2023/24 and the results should reflect a significant improvement.

10.GOVERNMENT TECHNICAL ADVISORY CENTRE (GTAC)

GTAC had achieved a clean audit for the 2022/23 year

11. INDEPENDENT REGULATORY BOARD FOR AUDITORS (IRBA)

The IRBA already receives a clean audit.

12. LAND BANK

Actions at entity level

Reason for Land Bank’s unqualified audit with findings:

The Land and Agricultural Development Bank of South Africa (Land Bank) received an unqualified audit opinion with findings for FY2023 due to internal control deficiencies that were identified by the Auditor General of South Africa on the reporting of collateral that resulted in material adjustments. The underlying collateral management system works as intended. The finding resulted from the erroneous reporting wherein some portfolios’ collaterals were duplicated.

Remedial Action

The Board of Land Bank instituted an extensive remedial plan post the disclaimed audit opinion in FY2020. The remedial plan process continues to be implemented with focus not only on areas where deficiencies were identified but broadly across the different processes of the Bank to ensure that adequate internal controls are in place.

Specific remedial work is being undertaken on the management and reporting of collateral to address the audit findings raised by the Auditor General of South Africa (AGSA) in the FY2023 audit.

The Land Bank’s Internal Audit Department (which has been strengthened with the appointment of a permanent Chief Audit Executive effective 03 July 2023) provides an independent review of the remedial work by management.

Progress Monitoring and Oversight.

Implementation of the remedial plan is done through a dedicated management forum and monitored through the oversight role of the Audit and Finance Committee of the Board which meets on a monthly basis for this purpose.

13. OFFICE OF THE PENSION FUNDS ADJUDICATOR (OPFA)

Not applicable, the Office of the Pension Funds Adjudicator received a clean audit for the 2022-23 financial year.

14. OFFICE OF THE TAX OMBUD (OTO)

  1. Section 19(1) of the Tax Administration Act, 2011 (Act 28 of 2011) (TAA) provides that the Tax Ombud reports directly to the Minister of Finance and the Office of the Tax Ombud must submit an annual report to the Minister of Finance, within 5 months of the end of the South African Revenue Service (SARS) financial year.
  2. In turn, section 19(3) of the TAA makes provision for the Minister of Finance to table the annual report of the Office of the Tax Ombud to the National Assembly.
  3. The Office of the Tax Ombud (OTO) is not a public entity in terms of the Public Finance Management Act, 1999 (Act 1 of 1999) (PFMA).
  4. That said, the Auditor General South Africa (AGSA) currently performs the external audit assurance only on performance information of the Office of the Tax Ombud at the request of the Tax Ombud. The audit conclusion on the performance of the Office of the Tax Ombud against predetermined objectives is included in the 2022/2023 Annual Report of the Office of the Tax Ombud that was tabled by the Minister of Finance in the National Assembly on 29 September 2023 and discussed in the Standing Committee Finance on 11 October 2023.
  5. Therefore, the Office of the Tax Ombud received no material findings on its audit of pre-determined objectives for the 2022/2023 financial year.
  6. To maintain the status-quo the OTO will incorporate combined assurance approach within its governance structure that involves the integration and coordination of various assurance activities to provide a comprehensive and well-rounded view of risk management, control systems, and overall performance. This includes bringing together multiple assurance providers, such internal audit, external audit, and oversight committees, to collaborate and share information, findings, and insights.

15. PUBLIC INVESTMENT CORPORATION (PIC)

  1. Audit opinion: unqualified audit opinion with a finding.

 

The Auditor-General’s finding indicated that the investment activities performed did not, in all instances, comply with investment policies and guidelines, in that in some instances, the risk relating to politically exposed persons (PEPs) identified was not assessed to ensure that the necessary enhanced due diligence and enhanced monitoring processes are applied to the high-risk PEPs identified, as required by the established policy.

  1. Action:
  • The identified PEPs have been included in the PEP register.
  • The custodian of the PEP register is now the Compliance Department that gets weekly PEP activity from the system.
  • The policy will also be workshopped to the business.

16. SOUTH AFRICAN REVENUE SERVICE (SARS)

SARS received clean audits for its Expenditure Accounts (Own Accounts) (1), Revenue Accounts (2) and the report on the Audit of the Annual Performance Report (3) in the 2022/2023 financial year. The three (3) audit opinions attest to the quality of financial management in SARS and is aligned to one of its Strategic Objectives focused on inculcating good stewardship of its resources across the organisation.

SARS Internal Audit regularly perform audits on areas of risk. SARS has appointed resources such as Governance Specialists in the finance teams. Controls have been embedded to detect and pro-actively manage risks related to the regulated environment.

SARS also implemented action plans to not only sustain the audit outcome from 2022/23 but to further embed good financial management practices.

17. SASRIA SOC LIMITED

  1. Audit opinion: unqualified audit opinion with a finding.

Finding related to SASRIA’s failure to comply with section 55 of the PFMA insofar as it relates to the submission of the annual report, annual financial statements and the report of the auditors on those statements.

  1. Actions to be put in place
  • SASRIA will have an Audit Steering Committee, comprising of External Audit, other Assurance functions and management.
  • Ensure active management and implement improvements in communication and efficacy of the audit process.
  • External Audit will be requested to develop a project plan which will be approved by the Audit Committee. The progress against the plan will be monitored by the Steering Committee on a weekly/bi-weekly basis.
  • Significant deviations from the plan will be escalated to the Executive Committee and if no improvement to the Audit Committee.

22 December 2023 - NW3984

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Shaik Emam, Mr AM to ask the Minister of Finance

What is the total (a) local and (b) foreign debt owed by the three spheres of government and the state-owned companies?

Reply:

Table 3.8 from Chapter 3 of the MTBPS 2023 shows a projected national government’s gross debt. Gross debt is projected to reach R5.28 trillion by end of 2023/24. This debt is made up of domestic debt of R4.64 trillion and foreign denominated debt of R595.2 billion.

22 December 2023 - NW4115

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Loate, Mr T to ask the Minister of Communications and Digital Technologies

(1)Whether the Government and/or his department initiated a programme such as Dubai’s National Programme for Coders to attract coders and programmers from around the world to create the best eco-system in the world to allow coders to develop, grow and thrive; if not, what is the position in this regard; if so, (2) whether the Government intends to emulate Dubai’s initiative of attracting 100,000 golden visas for coders and establish 1000 digital companies in the next five years; if not, what is the position in this regard; if so, what are the relevant details, (3) what widescale internship opportunities are offered to South Africa’s youth in collaboration with global technical companies such as Google, Microsoft, Amazon, Cisco, IBM and Facebook?

Reply:

1. No.

2. No

3. In partnership with Huawei, the DCDT implements a yearly programme called ‘Seeds for the Future.’ The programme targets students from previously disadvantaged universities at third or fourth year level who attend a two-week training programme in China. The programme offers training in various fields such as Internet of Things (IoT), 5G, cloud and Artificial Intelligence. Moreover, as part of the implementation of the Cooperation Contract, the DCDT and Huawei jointly train SMMEs on the SMME Digital Skills Transformation which focuses on skills and capacity building in the areas of cloud computing, digital marketing, Huawei Cloud including cloud services.

Thank You.

22 December 2023 - NW4041

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Majozi, Ms Z to ask the Minister of Communications and Digital Technologies

What is the number of (a) international and (b) domestic trips undertaken by senior officials in each entity reporting to him in the 2022-23 financial year?

Reply:

ENTITY

INTERNATIONAL

DOMESTIC

BBI

8

52

FPB

2

3

ICASA

13

18

NEMISA

0

11

POSTBANK

2

162

SAPO

0

6

SABC

0

64

SENTECH

46

2413

SITA

11

50

USAASA

1

42

ZADNA

9

29

Thank You.

22 December 2023 - NW3832

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Joseph, Mr D to ask the Minister of Sport, Arts and Culture

(1).What are the reasons that the South African Boxing Act, Act 11 of 2001 and the rules and regulations are only applicable to some licensees, but no action is taken in cases where promoters fail to pay in purse monies within the specified time (details furnished); (2). what (a) measures has he put in place to ensure that the sport does not continue to be run in this manner and (b) are the detailed reasons why the entire Board of Boxing South Africa (BSA) should not be immediately suspended; (3). whether he intends to initiate a full commission of enquiry into the administration of BSA; if not, what is the position in each case; if so, what are the full relevant details?

Reply:

Boxing South Africa has responded as follows to this question:

(1). Most promoters owe Boxing South Africa due to the income declarations that are made after tournaments through affidavits in terms of the Boxing Regulations. The Board resolved to establish a sub-committee that looks at the tournament applications of each promoter and each promoter that is owing Boxing South Africa appears before the committee to commit to some arrangement in terms of which the debt can be settled and once this arrangement is in place the promoter is then allowed to stage tournaments subject to payment arrangements as approved by this committee. All promoters who owe Boxing South Africa are subject to this arrangement.

(2)(a). No formal process with supporting evidence has been submitted to the Minister that warrants the Minister’s action within the ambit of his responsibilities within the legislative framework.

(3). The suspension of a board is based on the formal submission to the Minister of substantive reasons to display any misdemeanors. There has been no process to inform the Ministers decision to suspend the Board or initiate a full commission of enquiry into the administration of BSA.

 

22 December 2023 - NW4134

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Manyi, Mr M to ask the Minister of Finance

What (a) are the relevant details on the specific initiatives underway to rectify the failures in preventing and/or mitigating systemic events within the financial sector and (b) proactive measures is the National Treasury considering, to bolster the regulatory framework that deters banks from manipulating the Rand through illicit practices such as price-fixing and market allocation in the future?

Reply:

The misconduct investigated by the Competition Commission is specifically the type of abuse the National Treasury considered in 2011 when proposing and implementing the Financial Sector Regulation Act (FSRA) as part of the Twin Peaks reform.

This reform established a new dedicated market conduct regulator to ensure that all financial institutions treat their customers fairly and operate with the highest ethical standards, which is the nature of the misconduct Standard Chartered Bank was found to have committed.

Specific reforms have also been undertaken as a result of observing misconduct in other jurisdictions to ensure that these do not occur domestically. For this reason, National Treasury tabled Regulations in Parliament in March 2023 which proposed to designate the “provision of a benchmark” as a financial service in accordance with section 3(3) of the FSRA, and to specify that the Financial Sector Conduct Authority is the responsible authority for the regulation, supervision and oversight of the financial sector. In terms of section 288(1)(b) of the FSRA, which empowers regulations to provide for procedural and administrative matters that are necessary to implement the provisions of this Act, some specific powers and duties are provided to the Financial Sector Conduct Authority in relation to the provision of benchmarks to enable the effective regulation and supervision of the “provision of a benchmark”.

In 2024, National Treasury will introduce further legislation to ensure South African financial markets are fair, transparent and operate with integrity. The Conduct of Financial Institutions (CoFI) Bill proposes that banks and other financial institutions in the Financial Exchange market are carried into the CoFI licensing activities and will be subject to the CoFI Act in addition to the markets regulation. This implies that requirements for good governance, transparency, managing conflicts of interest, among others will continue to apply.

22 December 2023 - NW3978

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Mabiletsa, Ms MD to ask the Minister of Finance

(1)What does investors demand for premiums on debts to compensate for the risk of investing in the Republic imply on the relationship between the State and the financial sector considering that he stated in the Medium Term Budget Policy Statement that regardless of the maturity profile of loans and bonds that most of the debt is domestic; (2) whether the premium demand is one of the key factors determining the fiscal policy trajectory based on investor risk fears; if not, why not; if so, what are the relevant details?

Reply:

1. The predominance of domestic debt indicates that the local financial sector is heavily invested in government bonds and loans. This scenario fosters a mutually dependent relationship, wherein the financial well-being of the government significantly influences the stability and health of the domestic financial sector. If this risk premium were to increase (due to an impairment in risk perceptions) and National Treasury were not to include this increased premium into the price of government bonds, investors would choose to invest their cash in other instruments (i.e. corporate bonds or equity, which offer better return, albeit at greater risk). This would result in government being unable to borrow the funds necessary to finance the borrowing requirement. The same principle would apply when borrowing in foreign markets; however, there is less quantum demanded for South African bonds at attractive rates in the international markets. Higher premiums on government debt can lead to crowding out of private investment, as the government absorbs a significant portion of available credit. This can slow economic growth, affecting both the state and the financial sector. The risk premium highlights the need for sustainable borrowing practices, efficient debt utilization, and a clear plan for debt reduction.

2. Risk premiums, while a considerable factor, are not the sole determinants of fiscal policy. They are, however, a critical indicator of investor confidence and perceived risk. When investors demand higher premiums, it reflects their concerns about the country's ability to repay its debts, often influenced by factors such as political stability, economic performance, and fiscal management. Most domestic investors in government debt, such as pension funds and insurance companies, are crucial for the country's financial and economic stability. If the government's debt becomes unsustainable, these institutions could face severe challenges, impacting a broad spectrum of the population. The instances of US regional banks facing near collapse due to holding weakened debt, highlights the tangible consequences of fiscal mismanagement and the importance of maintaining liquidity through the appropriate government loans. It underscores the need for prudent fiscal policies and sustainable debt management. Chapter 3 of the MTBPS emphasizes government's commitment to sustainable debt management, ensuring that borrowing is balanced with economic growth and fiscal responsibility. This along with reforms in the Logistics, Electricity, Water and Communications sectors will ensure that government plays its part in reducing the risk premium.

22 December 2023 - NW4133

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Manyi, Mr M to ask the Minister of Finance

Whether he will furnish Mr M Manyi with a robust overview of the specific consultative measures he had with the SA Reserve Bank (SARB) to ensure that the SARB is fully aligned with its constitutional duty, particularly in light of recent developments suggesting vulnerabilities to manipulation through price-fixing and market allocation; if not, why not; if so, what are the relevant details of the concrete consultative measures or steps being taken to (a) fortify the regulatory framework and (b) pre-empt any future lapses in fulfilling the critical mandate?

Reply:

It is not clear to the Minister of Finance what specific consultative measures the Honourable member refers to. As enshrined in section 224(2) of the Constitution, the operational independence and autonomy of the South African Reserve Bank are constitutionally guaranteed. The Minister of Finance and the Governor of the South African Reserve Bank regularly interact so as to ensure the alignment of fiscal and monetary policy.

Whilst there is constant collaboration between the Minister of Finance and the South African Reserve Bank, the investigation into allegations of uncompetitive practices by banks was conducted by the Competition Commission, with neither the Minister of Finance nor the South African Reserve Bank taking part in it.

22 December 2023 - NW4122

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Buthelezi, Mr EM to ask the Minister of Finance

With reference to his speech during the tabling of the Medium-Term Budget Policy Statement on 26 October 2022, wherein he projected that the average economic growth would be 1,6% and would not be enough to support the developmental goals of the Republic and as a result structural reforms will be implemented, what are the full details of the (a) form of the specified structural reforms, (b) projected growth and results that his department envisages in the different sectors and (c) promotional and supportive assistance and/or investment that his department will offer (i) small, medium and micro enterprises, (ii) the agricultural sector and (iii) township and informal economies to ensure sustainability and that their growth is not stifled?

Reply:

(a) The Economic Recovery and Reconstruction Plan (ERRP) outlines the country’s near-term growth agenda. It includes a number of structural reforms aimed at supporting the economic recovery by unlocking investment and removing barriers to growth.

(b) The National Treasury provides forecasts from the expenditure side of GDP, details of which can be found in the Budget Review 2022 and Medium Term Budget Policy Statement (MTBPS) 2022.

With regard to the estimated impact of reform implementation, this was estimated to result in a 2.3 percentage point growth above the baseline over the next ten years. The details of this work can be found in the Economic Recovery and Reconstruction Plan.

(c) The MTBPS does not make specific allocations to departments and programmes. Such allocations will be published in the 2013 Budget.

22 December 2023 - NW3464

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Joseph, Mr D to ask the Minister of Sport, Arts and Culture

(1). Since what date has his department assisted representatives to attend events (a) inside and (b) outside the Republic as ambassadors of SA Sport as is the case regarding a certain person (name furnished); (2). (a) what number of persons is his department currently supporting with the specified initiatives and (b) how are the persons selected; (3). what is the breakdown of cost for each person from the date the financial support started to up to the latest specified date; (4). whether his department has a revolving policy that benefits more than just the persons who have been selected; if not, why not; if so, (a) are persons allowed to apply to his department to become ambassadors and (b) what are the relevant details; (5). what criteria were used to choose the specified person as a super fan who is seen at rugby, cricket and netball matches with her trademark face painting, isicholo hat and flag colours of the Republic?

Reply:

(1). The Department has not assisted any persons to attend events inside the country or outside the country as ambassadors of SA Sport and hence we are not able to respond to;

  • the number of persons that are currently supported,
  • how they are selected
  • , the cost and dates related to the support.
  • The date the financial support started to up to the latest specified date.
  • A revolving policy that benefits more than just the persons who have been selected.
  • How are persons allowed to apply to the department to become ambassadors and
  • The relevant details: what criteria were used to choose the specified person as a super fan who is seen at rugby, cricket and netball matches with her trademark face painting, isicholo hat and flag colours of the republic?

 

22 December 2023 - NW4138

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Mthethwa, Mr E to ask the Minister of Sport, Arts and Culture

What (a) are the relevant details of his department’s COVID-19 pandemic recovery plan, (b) programmes will be put in place to stimulate the creative and cultural sector economy in terms of development and growth,(c) is the roll-out plan, (d) are the time frames regarding the specified plans and (e) are the details of the projected budget?

Reply:

(a). The Department have through the COVID 19 pandemic recovery plan aim to focus on the following Five Critical Priority Areas:

    • Job creation using the employment multiplier model through the PESP 2&3
    • Creating an enabling environment through the Regulatory Environment
    • Enabling access to local and international markets
    • Monetisation of the cultural, creative and sport industries
    • Enhancement of the arts, culture; heritage and sport tourism as well as the Cross-cutting priority of reviving the economy through Infrastructure development through the DSAC contribution.

(b)(c). The department have through the following programmes that focussed on the above priorities

(i) continue to support the CCI industry in 2022/23 utilizing PESP Budget allocation; using the employment multiplier model, where creatives are funded to create work for themselves. The allocation to the implementing agencies and the focus areas are as follows:

National Arts Council (NAC): to be responsible for disbursement to the following domains.

Performance and celebrations (including the area of theatre, dance opera); Design and Creative services; Books and Publishing (including indigenous language development and promotion); and Public Art.

National Film and Video Foundation (NFVF): Audio-Visual and Interactive Media.

National Heritage Council (NHC): Cultural Heritage.

National Museum (Arts Bank): Visual Arts and craft.

Business Arts South Africa: Support to SMMEs and/or Cooperatives in the Creative industry.

In PESP 3, 44 329 Jobs have been created over the target of 24 400 jobs and in PESP 4 the target number of jobs is 37 800 and to date, 11 478 jobs have reported, and the number will increase, and some projects are currently implementing their projects under PESP4 which should indicate that PESP has contributed to the growth and sustainability of the CCI sector.

(ii) Enabling the creative industry to thrive Creating spaces in the provinces that were previously marginalized. e.g. declaration of Nelson Mandela Theatre Complex in Gqeberha, Eastern Cape provided with a budget of R13m for operational costs; and R17m for infrastructure and maintenance in the Northern cape; refurbishment has been completed, resulting into a fully-fledged theatre space in Northern Cape; construction that will commence in Limpopo with DSAC contributing R7m in 2022/23 financial year. For the Limpopo Theatre, a contractor has been appointed and will be on site by Mid-January 2024 to commence with construction. Preferred locations have been identified in Mpumalanga. Govan Mbeki LM has appointed a service provider to assess the building. In the Northwest and engagements continue with those Provinces Northwest Theatre/Mmabana Arts Centre completed a feasibility study. DSAC has included this project in the UAMP for 2024/25 until 2026/27.

(iii) CCI Masterplan: The CCI Masterplan was approved by Cabinet in August 2022. A roll-out of the implementation plan was undertaken in all 9 provinces through Information Sessions with the sector and provincial representatives. National IGR and stakeholder meetings are attended once a month to strengthen the implementation of the Key Action Programs; and DSAC reports there with all National departments. The approved CCI Masterplan has also been aligned with the ACPD Annual Performance Plan.

(iv) Outcome of the Davis Commission: Department of Sport and Recreation led by Sports Trust and Department of Arts and Culture together with BASA developed a detailed submission requesting for the inclusion of arts and culture and sport as eligible activities for public benefit consideration . Based on the submission, Schedule 9 was amended to include these activities amongst others. Sport. Arts and culture are now eligible for consideration as public benefit organisations and if approved can administer donation certificates for specific taxation exemption and tax rebates.

(v) Skills transfer/ Capacity building: Academies project implementing skills transfer project including this includes Incubator Programs in Performing Arts Institutions. Allocated budget towards Incubator and Training Programs where artists are provided with practical skills that enable them to grow their businesses changes per year as it forms part of the branches Annual Performance Plan (APP). These are run in different Performing Arts Institutions throughout the country; and also conducted by different Academies. The 2023/24 APP includes the 22 Capacity building which is budgeted at a total of R68.7m.

(d). In the 2023/2024 financial year.

(e). PESP: To date, a sum of R412 818 600 million has been transferred to the 5 implementing agencies out of the R459,2 million PESP allocation for the 2023/2024 financial year. A total of R46 381 400 remains to be disbursed to entities.

Skills Development programmes are budgeted annually and the 2023/24 budget was R 68 750 000.

Nelson Mandela Theatre Complex in Gqeberha, Eastern Cape was provided with a budget of R13m for operational costs; and R17m for infrastructure and maintenance in the Northern Cape Theatre. The Limpopo Theatre construction the DSAC contributing R7m in 2022/23 financial year.

22 December 2023 - NW3994

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George, Dr DT to ask the Minister of Finance

In view of the compelling argument for instituting a debt rule that sets a clear target for the national debt as a percentage of Gross Domestic Product (GDP), what (a) are the reasons that the National Treasury has not acted on the growing concern that the current expenditure rule has failed to halt the deterioration of our debt-to-GDP ratio and (b) measures will the National Treasury that will manage and control the rising national debt effectively?

Reply:

a) The ceiling on main budget non-interest expenditure was introduced in 2012 to anchor fiscal policy. However, budget deficits and debt have continued to grow, in part because the ceiling was not binding. The target of reducing and stabilising debt has been persistently shifted out, largely because of lower‐than‐expected economic and revenue growth, and large spending pressures such as state‐owned company bailouts and compensation costs. As a result, main budget expenditure has remained relatively high at over 29 per cent of GDP over the past two years. This has led government to consider additional rules to provide an anchor for fiscal sustainability. Further details will be provided in the 2024 Budget.

b) Over the medium term, government will support the economy, stabilise the public finances and protect the social wage. In the context of persistently low economic growth, government’s fiscal strategy remains focused on consolidating the public finances to narrow the budget deficit, stabilise public debt and ensure fiscal sustainability. Fiscal policy will pursue a balanced approach that includes spending restraint, revenue measures and additional borrowing. Tax measures to raise additional revenue of R15 billion in 2024/25 will be proposed in the 2024 Budget. Relative to the 2023 Budget estimates, proposed reductions to main budget non-interest spending mainly baselines and provisional allocations and changes in reserves amount to R33.1 billion in 2023/24 and R213.3 billion over the next two years. On a net basis, non‐interest expenditure will decrease by R3.7 billion in 2023/24 and R85 billion over the next two years. Compared with the 2023 Budget, the main budget deficit increased by R54.7 billion in 2023/24, R51.8 billion in 2024/25 and R66.7 billion in 2025/26. The gross borrowing requirement for 2023/24 has increased from R515.6 billion to R563.6 billion, relative to the 2023 Budget. Gross loan debt is projected to stabilise at 77.7 per cent of GDP in 2025/26. And government will propose new fiscal anchors to ensure a sustainable long‐term path for the public finances.

22 December 2023 - NW4080

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Joseph, Mr D to ask the Minister of Sport Arts and Culture:

(1). Whether a certain person (name and details furnished) currently owes Boxing South Africa (BSA) any money; if not, what is the position in this regard; if so, what (a) is the total amount owed to BSA by (i) the specified person and (ii) other promoters and (b) are the reasons that the debt owed by the person has been allowed to prescribe; (2). what are reasons that the person was allowed to promote again under the Xaba Promotions banner without the debt having been paid after having been banned from promoting under that banner due to his debt to BSA; 3(a). how could the person be elected as Chairman of the National Professional Promoters Association when he owes BSA money and a former boxer who has since been deceased, Lwandile Sityata, had to obtain a civil judgment against him in June 2022 and (b). what are the reasons that no disciplinary action has been instituted against the person who has cancelled at least three tournaments in the first half of 2023 alone; (4). whether he will furnish Mr T W Mhlongo with a copy of the Constitution of the National Professional Promoters Association; if not, why not; if so, on what date?

Reply:

The following responses were provided by Boxing SA.

Most promoters owe Boxing South Africa due to the income declarations that are made after tournaments through affidavits in terms of the Boxing Regulations.

(a)(i)&(II) The Board resolved to establish a sub-committee that looks at the tournament applications of each promoter and each promoter that is owing Boxing South Africa appears before the committee to commit to some arrangement in terms of which the debt can be settled and once this arrangement is in place the promoter is then allowed to stage tournaments subject to payment arrangements as approved by this committee.

(b). All promoters who owe Boxing South Africa are subject to this arrangement and therefore none of the debts by the promoters have prescribed.

(2). Boxing SA indicates that it is not correct to suggest that a promoter has been banned from staging tournaments. It is only those who have not made suitable arrangements with BSA that have not been allowed to stage tournaments.

(a). The National Professional Boxing Promoter Associations is an independent structure of licensed promoters established in terms of section 28 of the Boxing Act. This structure operates on its own constitution, and it held elections of its leadership, and all the office bearers were duly elected in an open and transparent process. It is not for BSA to dictate who are supposed to be the leaders of the structure. As far as the question around the boxer is concerned, it must be noted that contracts between Promoters and Boxers are concluded without the intervention of Boxing South Africa and so are disputes arising therefrom.

(b). Tournaments are cancelled for a variety of reasons, and it is not a breach of any Rule of BSA to cancel tournaments as cancellation of tournaments happens routinely across the world and therefore there is no basis to charge any promoter noncancellation tournaments. In fact, the Boxing regulations recognises that boxing tournaments may be cancelled or be postponed for a variety of reasons.

 

21 December 2023 - NW4177

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De Freitas, Mr MS to ask the Minister of Tourism

What (a) total amount has been budgeted and/or allocated for the Tourism Business Council of South Africa (i) in each month in the past three financial years and (ii) since 1 April 2023 to date, (b)(i) processes, procedures and/or reporting mechanisms are in place to ensure and monitor that the funds are properly spent and (c) amount has been spent in each month in the specified period?

Reply:

I have been informed that the Department of Tourism has not had a budget line item for transfers to the Tourism Business Council of South Africa (TBCSA) for the financial years 2020/21 to 2023/24 and has not made any transfers to TBCSA in that period.

SA Tourism does not allocate budget for the Tourism Business Council of South Africa (TBCSA) as they have their own budget as the administrators of the Tourism Marketing South Africa (TOMSA) levy.

21 December 2023 - NW3784

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Khanyile, Ms AT to ask the Minister of Home Affairs

With reference to the constitutional defects of section 34(1)(b) and (d) of the Immigration Act, Act No 13 of 2002, which were highlighted in the judgment handed down by the Constitutional Court on 29 June 2017 but suspended the declaration of invalidity for 24 months that expired on 29 June 2019, what total number of (a) persons were (i) detained for the purposes of deportation between 29 June 2019 and 30 October 2023 and (ii) deportations were confirmed and (b) court cases (i) have been initiated against Home Affairs concerning the (aa) detention for purposes of deportation, (bb) prevention of confirmation of deportation and (cc) confirmation of deportation between 29 June 2019 and 30 October 2023 and (ii) did the department defend?

Reply:

(a)(i) There were 31 229 persons detained for the purposes of deportation between 29 June 2019 and 30 October 2023.

(a)(ii) 27 823 deportations were confirmed between 29 June 2019 and 30 October 2023.

(b) For the period between 19 June 2019 and 30 October 2023, the following:

(b)(i)(aa) There were no court cases initiated against Home Affairs concerning detention for purposes of deportation.

(b)(i)(bb) No court cases were initiated against the department to prevent confirmation of deportations.

(b)(i)(cc) There were no court cases initiated against the department regarding the confirmation of deportation.

(b)(ii) There were no court cases which required the department to defend.

 

END

21 December 2023 - NW4046

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De Freitas, Mr MS to ask the Minister of Tourism

(1)With reference to the seizure of South African Tourism’s assets, (a)(i) when and (ii) where did the seizure take place; (2) What assets (a) were seized and (b) are being utilised in place of the seized assets; (3) What (a) was the value of the assets seized (b) were the reasons for the seizure; (4) Whether legal action has been initiated in this regard; if not, why not; if so, what are the relevant details? NW5322E

Reply:

(1)(a)(i) - When did it take place?

I have been informed by South Africa Tourism that, regarding the inquiry concerning the acquisition of assets belonging to South African Tourism, it is imperative to clarify that it was not a seizure but rather a retrieval of assets. Specifically, the laptops in question are the rightful property of SA Tourism and do not constitute the personal assets of the individuals who were instructed to surrender their laptops for the purpose of data preservation. This procedural action transpired on Thursday, July 6, 2023.

(1)(a)(ii) - Where did it take place?

At the SA Tourism Johannesburg office, located in Bojanala House, 90 Protea Road, Chislehurston, Johannesburg, 2196.

(2)(a) - What assets were seized?

NO

LAPTOP/DESKTOP

MAKE

COLLECTION LOCATION

DATA COLLECTED

DATE RETURNED

1

LAPTOP

DELL LATITUDE 5520

SIU OFFICES DELIVERED BY SAT

10-Jul-23

11-Jul-23

2

LAPTOP

DELL LATITUDE 5520

SIU OFFICES DELIVERED BY SAT

10-Jul-23

11-Jul-23

3

LAPTOP

DELL LATITUDE 5520

SIU OFFICES DELIVERED BY SAT

07-Jul-23

10-Jul-23

4

LAPTOP

DELL LATITUDE 5520

SAT

06-Jul-23

10-Jul-23

5

LAPTOP

DELL LATITUDE 5520

SAT

06-Jul-23

10-Jul-23

6

LAPTOP

DELL LATITUDE 7300

SAT

06-Jul-23

10-Jul-23

7

LAPTOP

DELL LATITUDE 7290

SAT

06-Jul-23

10-Jul-23

8

LAPTOP

DELL LATITUDE 7300

SAT

06-Jul-23

07-Jul-23

9

LAPTOP

DELL LATITUDE 5300

SAT

06-Jul-23

07-Jul-23

10

LAPTOP

DELL LATITUDE 7290

SAT

06-Jul-23

07-Jul-23

11

LAPTOP

DELL XPS

SAT

06-Jul-23

07-Jul-23

12

LAPTOP

DELL LATITUDE 5520

SAT

06-Jul-23

07-Jul-23

13

LAPTOP

DELL LATITUDE 5430

SAT

06-Sep-23

08-Sep-23

(2)(b) - What are being used in place of the seized assets?

Individual laptops were returned as per the Table above. The focus remained on expediting the return of laptops to individuals in the minimum amount of time.

(3)(a) - Value of the seized assets?

The average value of laptops taken is approximately R 21 000, therefore the total average value was approximately R 252,000 at the time of collection for data preservation purposes.

(3)(b) - Reason for the seizure?

The assets were collected for the preservation of data to ensure that all information necessary to the investigation was secured and available to the investigators.

(4) - Whether legal action has been initiated?

The event was not a seizure but a collection of assets which already belonged to SA Tourism, not the individuals who were asked to hand them in for data preservation purposes. The assets that were collected are the property of SAT as an employer and were not seized from anyone. Officials were requested to temporarily hand in SAT property. No legal action has been initiated, and the SIU employees seconded to the agency continue their investigations.

 

 

21 December 2023 - NW4209

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Roos, Mr AC to ask the Minister of Home Affairs

What process does his department follow in removing persons who have (a) denounced and (b) lost/forfeited their South African citizenship from the population register; (2) whether there is any backlog in removing persons from the population register; if not, what is the position in this regard; if so, (a) what is the total number of persons that constitute the backlog and (b) on what date is it envisaged that the backlog will be eradicated?

Reply:

(1)(a) When an applicant applies for renunciation and submits a guarantee letter, [of a pending offer of citizenship by another country] the applicant is issued with a renunciation letter, and his/her ID number is converted from a SA citizen ID number to a non-SA citizen ID number.

(1)(b) Same as above.

(2)(a) There is no backlog.

2(b) Not applicable

 

END

21 December 2023 - NW4127

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Matumba, Mr A to ask the Minister of Tourism

What (a) has been the progress on the implementation of the summer campaign and (b) total number of jobs does she envisage to create from the summer campaign this year?

Reply:

ACTIVATIONS AND AMPLIFICATION OF THE CAMPAIGN:

I have been informed by SA Tourism that the plan for a summer campaign activation has been approved for implementation during the weekends of December 15-17 and 22-24. The objective is to establish a platform for South Africans to engage in the Tourism Economy while also generating excitement among the public through a diverse range of tourism products and experiences.

The roll out includes the following activities:

  • Out of Home Campaign - running since October 2023
      • SMME Showcase platforms at main route oasis + Festivals through the Sustainability Village platform.
      • Gimme Summer Amplification of PTA summer campaign activations (2 per province)
      • Amplification of the activations through SAT owned social media channels.

(b) total number of jobs does she envisage to create from the summer campaign this year?

SA Tourism uses the “Summer Army” in the activation across all nine provinces. SA Tourism will receive the final job creation figures at the end of the summer campaign.

21 December 2023 - NW3898

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Khanyile, Ms AT to ask the Minister of Home Affairs

Considering that in 2019 the Refugee Appeals Authority South Africa (RAASA) entered into an agreement with the United Nations High Commissioner of Refugees (UNHCR) for a backlog project, what total number of (a) RAASA members (i) were hired and (ii) remain employed and (b) appeal hearings have been (i) heard and (ii) decided after a hearing by the specified members?

Reply:

The Four-Year Partnership Agreement is between the Department of Home Affairs and the United Nations High Commissioner for Refugees (UNHCR). The Agreement was signed on 8 March 2021 paving the way for the implementation of Plan 2019: Backlog Project.

A (i) At the heart of Plan 2019, was the recruitment of 36 legally qualified Refugee Appeals Authority of South Africa (RAASA) members to assist with the adjudication and finalisation of Backlog Appeal cases. A total of thirty (30) Members were recruited at different times of the project in 2021. The Project was never fully capacitated with 36 Members due to UNHCR’s financial constraints.

(ii) During the recruitment process, we preferred lawyers who actually practised on arguing cases in court. However, the number has decreased to twenty-two (22) because many lawyers who abandoned their practices during the Covid lockdown have now resigned to go back to their practices since the lockdown is over

The UNHCR has first informed that they no longer have money, however, the EU (European Union) has agreed to help but can only fund ten (10) members. The result is that 12 members’ contracts will have to be terminated.

B (i) A total number of hearings conducted: 3 439.

(ii) A total number of finalised decisions: 3 626. (This figure includes paper determinations, “No Show” decisions, and family joining)

The total number of finalised appeal cases including cancellations/withdrawals of asylum claims: 8 380.

END

21 December 2023 - NW4129

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Matumba, Mr A to ask the Minister of Tourism

Whether her department is responsible for the Mphephu Resort; if not, what is the position in this regard; if so, what (a) is the status of the Resort, (b) measures has she put in place to rehabilitate the specified resort and (c) time frames have been set in this regard?

Reply:

I have been informed that the Department is not responsible for the Mphephu Resort and has not provided any funding to this facility. I understand that this property belongs to the Limpopo Department of Economic Development, Environment and Tourism and the Honourable Member is advised to refer this query to them.

21 December 2023 - NW4128

Profile picture: Matumba, Mr A

Matumba, Mr A to ask the Minister of Tourism

(a) By what date will the SA Tourism Board be appointed, (b) what are the reasons for the many delays and (c) what time frames have been put in place in this regard?

Reply:

(a and c)The time allocated in Cabinet for concurrence is as follows:

  • Present to ESIEID Cabinet Committee on 7 February 2024
  • Cabinet approval on 14 February 2024.  
  • Gazette on 23 February 2024.

(b) I was hoping to get this matter onto the November Cabinet schedule.

21 December 2023 - NW4087

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Powell, Ms EL to ask the Minister of International Relations and Cooperation

Whether he met with Mr Ismail Haniyeh, the Hamas leader based in Qatar and/or any other members of Hamas whilst in Qatar during November 2023; if not, what is the position in this regard; if so, what are the full details of their discussions?

Reply:

The Minister of International Relations and Cooperation (DIRCO) did not meet with Mr Ismail Haniyeh or any member of Hamas during her visit to Qatar in November 2023. It is worth noting that Hamas is headquartered in Qatar and that the organisation is funded by the Government of Qatar. The presence of Hamas has historically been supported by the Government of the United States as the latter required a channel of communication to the organisation. This is part of the reason why Qatar has been able to play a prominent role in negotiating the current humanitarian pause as well as the exchange of hostages and political prisoners between Hamas and Israel.

21 December 2023 - NW4103

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Matumba, Mr A to ask the Minister of Tourism

What is the implementation interface between the Tourism Sector Masterplan and the National Tourism Sector Strategy 2016-2026 with regard to the SA Tourism plans; (2) Whether SA Tourism has developed audit action plans to deal with financial management and the cash flow challenges; if not, what is the position in this regard; if so, what are the relevant details; (3) Whether SA Tourism has started to develop a business optimisation strategy; if not, why not; if so, what are the relevant details; (4) What measures has SA Tourism put in place to achieve its employment equity targets with the current moratorium in place?

Reply:

  1. What is the implementation interface between the Tourism Sector Masterplan and the National Tourism Sector Strategy 2016-2026 with regard to the SA Tourism plans?

The Tourism Sector Masterplan (TSMP) was approved by Cabinet in October 2023.

It was derived from, among others, the three-year Tourism Sector Recovery Plan (TSRP), which comprises interventions that extend beyond its immediate implementation time period of 2023–2024 and was approved by the Cabinet in April 2021.

The plan primarily aims to galvanise government, industry and labour to collectively share a common vision that will position the tourism industry on an inclusive and sustainable competitive path for the benefit of all South Africans.

The Masterplan is anchored on three interlinked pillars or strategic themes:

  • Protect and Rejuvenating Supply;
  • Re-ignite Demand;
  • Strengthen Enabling Capability for long-term sustainability.

Within these pillars, there are seven Strategic Interventions that address key areas of focus. These interventions include enhancing education and skills development, promoting entrepreneurship and economic growth, improving infrastructure and connectivity, fostering social cohesion and well-being, preserving the environment and natural resources, strengthening governance and institutions, and promoting regional cooperation.

Additionally, there are three Enablers that support the implementation of the plan, namely, to form targeted, strategic partnerships between government and industry; partnering with relevant departments to ensure improved travel facilitation through the implementation of e-visas, tourist safety, airlift capacity and quicker turnaround times in the processing of tour operator licences; and stimulate domestic demand through Government Consumption expenditure.

The plan indicates that South African Tourism is the lead partner in destination marketing of South Africa as a key destination and the entity will continue leading in the stimulation of demand in collaboration with the industry and provinces through the following programmes:

  • Targeted domestic initiatives and campaigns through domestic tourism seasonal campaigns.
  • Domestic business events and B2B campaigns.
  • Regional tourism campaigns to increase the number of tourists from the continent/region.
  • A global marketing campaign targeted at high-value source markets.
  • A global business events campaign to drive an increase in the number of events and business events hosted in SA.
  • Drive the number of international bid submissions.
  • Facilitation through the National Association Project to host Business events in VTSDs.
  • Drive the growth in the number of quality-assured establishments.  
  • Confirming and implementing the brand management protocol.

SA Tourism is the lead on the Effective Marketing Pillar of the NTSS, which is aligned to the strategic interventions of the Tourism Master Plan. The effective marketing is done through engagement with tourism bodies and provinces through a coordinated approach.

(2) Whether SA Tourism has developed audit action plans to deal with financial management and cash flow challenges; if not, what is the position in this regard; if so, what are the relevant details?

With regard to audit action plans; for the current financial year South African Tourism has compiled an audit action plan resulting from findings by the Auditor General and Internal Audit services. The plan is monitored on a monthly basis by internal audit to ensure implementation by management. Moreover, SAT has set up an “operation clean audit committee” comprising various business unit managers to ensure that compliance and financial management is achieved throughout the organisation.

Stringent cashflow management is in place given the current cashflow challenges. Controls are to monitor cash flow daily and report more frequently. Measures also include deferring non-urgent payment and transfer of funds to the international office been rationed to transfer only what is required on a monthly basis.

3. Whether SA Tourism has started to develop a business optimisation strategy; if not, why not; if so, what are the relevant details?

The budget optimisation strategy which was identified as a deliverable in the approved Annual Performance Plan, is at an advanced stage of development. A change in the approach to strategy development in the beginning of the financial year, and extensive work required in research and benchmarking has resulted in delays in the targeted dates. However, management will ensure that sufficient progress is achieved at the end of quarter 3.

4) What measures has SA Tourism put in place to achieve its employment equity targets with the current moratorium in place?

Two targets have not been met during the period, namely Women in Senior management positions and employment of person with disabilities.

1. Ordinarily the action would be to identify roles for purposes of meeting the Employment Equity targets as part of recruitment planning.

2. Persons with disabilities were prioritised through the recruitment of interns with disabilities,  as well as awareness sessions and management training on reasonable accommodation.

 

21 December 2023 - NW4178

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De Freitas, Mr MS to ask the Minister of Tourism

What (a) are the details of the plans of (i) her department and (ii) SA Tourism (SAT) to adhere to the National Treasury circular to all departments requesting them to reduce spending, (b) are the (ii) timelines, milestones and/or deadlines in this regard and (c) is the anticipated impact of the reduction in spending on the (i) functioning and (ii) respective mandates of her department?

Reply:

(i)The Department

(a)(i) What are the plans to reduce spending?

I have been informed by the Department that the Cost Containment Guidelines were issued as advisory and not an instruction in terms of section 76 the Public Finance Management Act (PFMA), 1999. The department, however, took an initiative to reduce expenditure on travel and related items as advised in the guidelines. An internal circular was issued to staff in that regard in September 2023.

(b)(ii) What are the timelines, milestones and/or deadlines in this regard?

Based on the guidelines, the Department of Tourism reprioritized and released R63,699m during the Adjustment Estimates of National Expenditure (AENE) process.

(c) What is the anticipated impact of this on the

(i) functioning of the Department

Although travelling was scaled down due to the budget cuts, the department is committed to achieve all the planned targets.

(ii) respective mandates of the department?

The department is committed to implement all the targets in the APP. There have not been any amendments to the APP.

(ii) SA Tourism

(a)(i) What are the plans to reduce spending?

I have been informed by South African Tourism that in 2024/25, SA Tourism’s budget allocation is set to decrease by 7,5%. The budget cuts and spending reviews during the Medium Term Expenditure Committee submission have heightened the entity’s budget optimisation strategy. The entity had already in its annual performance plan identified budget optimisation as an indicator, thus emphasizing efforts to adhere to austerity measures as communicated by National Treasury.

(b)(ii) What are the timelines, milestones and/or deadlines in this regard?

Overhead expenditure, which include operational costs such as communication, office consumables and IT support have been targeted as areas to reduce spending. Where contractual obligations exist, these will not be renewed. This is an ongoing process; however, most savings are expected to be realised in 2024/25 budget.

(c) What is the anticipated impact of this on the

(i) functioning and (ii) the respective mandate of SA Tourism

Marketing costs which are the core operating costs in achieving SAT’s are expected to decrease by 6% in 2024/25. Hosting and capabilities have been targeted to be reduced. These include reduction in travel costs of hosted media and trade.

Also, currently cost efficiency measures are being implemented in procurement of marketing initiatives to ensure that SAT achieves maximum value for money and unnecessary spending is avoided.

21 December 2023 - NW3887

Profile picture: De Freitas, Mr MS

De Freitas, Mr MS to ask the Minister of Tourism

With regard to the top leadership and management at the levels of (a) Director-General and (b) Deputy Director-General in SA Tourism, (i) what qualifications does each of the specified persons have in each case and (ii) how do the specified qualifications align with the position that must be fulfilled?

Reply:

I have been informed by SA Tourism that the details regarding qualifications of top management are contained in the table below.

With regard to the top leadership and management in SAT

(i) What qualifications does each of the specified persons have in each case

(ii) How do the specified qualifications align with the position that must be fulfilled

(a) Chief Executive Officer

The CEO role is currently vacant and recruitment is in progress.

The acting incumbent has been appointed by the Board to carry the delegation of CEO to allow for business continuity.

The requirements for the Chief Executive Officer are the following:

  • A recognised Bachelor’s Degree;
  • A recognised post graduate qualification. Masters or equivalent will be an added advantage;
  • At least 10 years proven experience in senior management, including 5 years at executive-level;
  • Public Service/Public entity experience at senior management level will be an added advantage;
  • An understanding of the tourism industry (Government Policy and Private Sector Stakeholder landscape) will be an added advantage;
  • Marketing Operations Management

(b) Chief Finance Officer

- Bachelor degree in Accounting;

- Bachelor Honours degree in Accounting; and (CA) SA

The requirements for the Chief Finance Officer are the following:

  • B. Com Financial Accounting Honours Degree or equivalent;
  • Registration with SAICA as CA (SA);
  • Master’s in Business Administration (MBA) or Financial Management will be a definite added advantage;
  • Minimum 10 years in executive financial management role;
  • Minimum 10 years’ experience in managing the Finance function in a public entity;
  • Minimum 10 years experience in managing the Finance function of an entity within the tourism sector will be an added advantage;

The qualifications the incumbent possesses, coupled by their work experience align them to the position fulfilled.

(c) Chief Operations Officer

- Bachelor of Social Science

- GIBS Executive Leadership Development Programme;

The requirements for the Chief Operations Officer are the following:

  • A three-year Commerce degree (major in Marketing would be preferred);
  • Excellent understanding of marketing principles
  • A post graduate business management qualification and/or previous project management experience would be an advantage
  • 8-10 years’ work experience in Marketing and Advertising and communications field, or similar environment, of which 5 should be in senior management.
  • Marketing Operations Management.
  • Government priorities and imperatives.
  • Legislation and regulations that govern the Public Service e.g. the Public Service Act.
  • The PFMA and regulations, and other relevant legislation – e.g. the National Strategic Intelligence Act; the National Archives of South Africa Act; the Promotion of Access to Information Act.
  • Performance monitoring, evaluation and reporting frameworks, systems and processes.
  • Relevant legislation and regulatory requirements namely PFMA, Treasury Regulations and Frameworks on performance information and strategic plans.

The panel at the time of recruitment considered the candidate's experience and knowledge and concluded that it is aligned with job requirements which led to the decision to hire the candidate.

(d) Chief Quality Assurance Officer

- BCom Marketing Degree

- Professional Management Development programme -GIBS

- MASA Diploma in Media Management.

- A Three-year Commerce degree (major in Marketing would be preferred)

- A postgraduate or Master’s Degree in PR/Hospitality/Sales & Marketing/Travel & Tourism Management or equivalent.

- 8-10 years in Senior Operations and/or Marketing and Sales Management experience or a related field, of which 5 years should be in management position.

- Experience in Hospitality Product / Business Development, Destination and/or product knowledge.

The qualifications the incumbent possesses, coupled by their work experience align them to the position fulfilled.

e) Chief Marketing Officer

The CMO role is currently vacant and recruitment is in progress.

The acting incumbent has been appointed to carry the delegation of CEO to allow for business continuity.

  • Bachelor’s degree in marketing/Advertising/Business Development/Management/Business Administration/International Relations/Public Relations or a bachelor’s degree in any other field with relevant experience
  • Postgraduate qualification in Marketing/Advertising/Business Development/ Management and/or relevant field will be an added advantage.
  • 10 years’ work experience in Marketing, Advertising, Communications and Media Marketing (press and digital) with experience from travel and tourism industry or similar background. • 5 years’ experience in Senior General Management experience • Experience in Public Sector will be added advantage • Experience in international/multinational marketing organisation • Ability to operate and manage in a matrix organisation with multiple stakeholders • Savvy marketer and a great communicator

f) Chief Convention Bureau Officer

The CCBO role is currently vacant and recruitment is in progress.

The acting incumbent has been appointed to carry the delegation of CEO to allow for business continuity.

  • Degree Commerce (major in Marketing/Tourism/Economics would be preferred);
  • Excellent understanding of marketing principles, especially business events;
  • A postgraduate qualification in business management and previous project management experience would be an advantage;
  • 8-10 years’ work experience in Marketing and Advertising and communications field, or a similar environment, of which 5 should be in management.

g) Chief Strategy Officer

Vacant

  • Bachelor’s Degree preferably in Business Information Science or Statistics.
  • 8-10 years in data analytics and research or a related field, of which 5 years should be in a management position. • Post Graduate Degree in Business Management would be an added advantage.

- Extensive knowledge of international and domestic travel • Knowledge and understanding of the principles of business, the application thereof, the opportunities within business and the seizure of such opportunities • Knowledge and understanding of research methodology and principles critical in deriving intel that is reliable and integral • Excellent understanding of marketing principles, especially business events. Understanding general data management policies and procedures. • Ability to implement and follow governance and compliance procedures. Previous experience in managing an Analytics/ Research Department is essential

21 December 2023 - NW4102

Profile picture: Matumba, Mr A

Matumba, Mr A to ask the Minister of Tourism

What are the details of SA Tourism will do differently in the implementation of the Tourism Sector Masterplan against the strategies developed to implement the Tourism Sector Recovery Plan?

Reply:

The Tourism Sector Masterplan which was approved by Cabinet in October 2023 was derived from, among others, the three-year Tourism Sector Recovery Plan (TSRP), approved by the Cabinet in April 2021.

The plan primarily aims to galvanise government, industry, and labour to collectively share a common vision that will position the tourism industry on an inclusive and sustainable competitive path for the benefit of all South Africans.

The Masterplan is anchored on three interlinked pillars or strategic themes:

  • Protect and Rejuvenating Supply;
  • Re-ignite Demand;
  • Strengthen Enabling Capability for long-term sustainability.

Within these pillars, there are seven Strategic Interventions that address key areas of focus.

These interventions include enhancing education and skills development, promoting entrepreneurship and economic growth, improving infrastructure and connectivity, fostering social cohesion and well-being, preserving the environment and natural resources, strengthening governance and institutions, and promoting regional cooperation.

Additionally, there are three enablers that support the implementation of the plan, namely, to form targeted, strategic partnerships between government and industry; partnering with relevant departments to ensure improved travel facilitation through the implementation of e-visas, tourist safety, airlift capacity and quicker turnaround times in the processing of tour operator licences; and stimulate domestic demand through Government Consumption expenditure.

The plan indicates that South African Tourism is the lead partner in destination marketing of South Africa as a key destination and the entity will continue leading in the stimulation of demand in collaboration with the industry and provinces through the following programmes:

  • Targeted domestic initiatives and campaigns through domestic tourism seasonal campaigns.
  • Domestic business events and B2B campaigns.
  • Regional tourism campaigns to increase the number of tourists from the continent/region.
  • A global marketing campaign targeted at high-value source markets.
  • A global business events campaign to drive an increase in the number of events and business events hosted in SA.
  • Drive the number of international bid submissions.
  • Facilitation through the National Association Project to host Business events in VTSDs.
  • Drive the growth in the number of quality-assured establishments.  
  • Confirming and implementing the brand management protocol.

 

21 December 2023 - NW4210

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Roos, Mr AC to ask the Minister of Home Affairs

Whether his department plays a role in the Independent Electoral Commission’s online application process for a special vote abroad; if not, why not; if so, what are the reasons that the process does not require applicants to provide their current physical addresses?

Reply:

The Department of Home Affairs plays no role in the online application process beyond confirming the citizenship status of the supplied identity number. The duty to register voters, compile and maintain a voters’ roll is in terms of section 5 (e) of the Electoral Commission Act 51 of 1996 read with section 5 of the Electoral Act 73 of 1998 within the sole remit of the Electoral Commission.

Voters who register to be included in an international segment of the voters’ roll are not required to provide their physical addresses because they are registered against a South African mission and the mission constitutes a component of the international segment of the voters’ roll for purposes of elections of the National Assembly.

END

21 December 2023 - NW4226

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Steenhuisen, Mr JH to ask the President of the Republic

Considering that his term is coming to an end in 2024, what are the details of the current progress that has been made in delivering the (a) bullet trains and (b) smart cities he promised during the State of the Nation Address on 20 June 2019?

Reply:

In the State of the Nation Address in June 2019, I invited South Africans to look beyond the challenges of the present and to imagine a country of high-speed trains, smart cities and a high-tech economy.

I said that to reinvigorate the implementation of the National Development Plan, “we must cast our sights on the broadest of horizons”.

This bolder vision of a technologically advanced society has received practical attention over the last few years.

For example, the Department of Transport has developed a High-Speed Rail Framework. The Framework has prioritised and ranked the corridors using internationally benchmarked criteria. The Johannesburg to Durban corridor was identified as the highest-ranking potential high-speed rail corridor, with the Pretoria to Mbombela to Komatipoort corridor, and Johannesburg to Pretoria to Polokwane to Musina corridor, ranking second and third, respectively.

On 1 November 2023, Cabinet approved the High-Speed Rail Framework Framework for implementation, and for the Johannesburg to Durban corridor to be prioritised for a feasibility study. The Department of Transport plans to establish a High-Speed Rail Project Management Office to take this process forward.

Another practical example is the Lanseria Smart City.

The project aims to establish a new smart city in the area currently known as Lanseria that will be home to between 350,000 and 500,000 people by 2030. The Master Plan is managed and coordinated by the Gauteng Growth and Development Agency, with the support of local, provincial and national government.

Support is being provided for the development of bulk infrastructure through the allocation by the Department of Human Settlements of an Urban Settlements Development Grant to the city of Johannesburg.

The current focus of the project is on building a wastewater treatment and land acquisition.

21 December 2023 - NW3910

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Ismail, Ms H to ask the Minister of Tourism

What (a) type of critical skills shortages are there in the tourism sector institutions that report to her and (b) is the detailed report on the number of critical skills currently short in her department?

Reply:

(a) The type of critical skills shortages within the tourism sector institutions are:

  • Financial Management
  • Strategic Leadership
  • Food Safety Quality Assurance
  • Travel consulting
  • Professional Cookery
  • Tourism Information Officers
  • Work Readiness and placement
  • Occupational Health Norms and Standards
  • Career Development
  • Service Excellence
  • Digitalisation Skills

I have, further, been informed that the above critical skills are informed by the existing Skills Audit Report and Tourism Sector Human Resources Development Strategy 2017 – 2027.

(b) The department experiences high turnover is some skills while unable to recruit and retain adequately skilled persons, at the same level as the level of loss, in the following areas:

  • Supply Chain Management Skills
  • Risk Management (Business Continuity Management Skills)
  • Information and Communication Technology Skills
  • Geographic Information System
  • Graphic Designers

The department has also resolved to strengthen existing capacity on the management of Infrastructure Projects through augmenting the following skills:

  • Construction Project Managers
  • Quantity Surveyors

 

21 December 2023 - NW4092

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Loate, Mr T to ask the Minister of Employment and Labour

(1)Whether the Government’s negotiations at the National Economic Development and Labour Council in respect of the social compact has progressed substantially in the past 21 months, since the President, Mr Cyril M Ramaphosa, announced the urgent need in his State of the Nation Address in February 2022; if not, why not; if so, (2) how much progress has the Government registered since February 2022 in (a) visibly building a better and more inclusive society, (b) growing the economy, (c) creating jobs and (d) tackling crime and corruption with the help of partners from organised business, Labour and communities in society at large? NW5373E

Reply:

1. There are some imperatives that must be understood by all when it comes to Social Compact and Social Compacting. Among these, are the following:

  1. Social Compacting is both a process and an institutional framework.
  2. Social Compact traverse on the social dialogue path, it then progresses through collective bargaining processes
  3. Social Compact requires elements of societal partnerships.
  4. Given what is stated above and below, it therefore stands to reason that, Social Compacting is about Unity in Diversity, where common interests are maximised in a principled manner.
  5. Social Compacting is premised from a firm belief that working together, coordinating, collaborating, cooperating, converging, co-creating, networking and building trust between important groupings in society will lead to better socio-economic outcomes than each working separately.

2. The dynamic process of Social Compact is advancing, recognising changing conditions, adapting to them, acknowledging different and/or conflicting interests, navigating through them. It should be stated that some of the elements that are listed on this question may not fall under the ambit of Social Compact, whilst others can be grouped together, and as such are globally responded to.

  1. Emerging consensus was achieved on key binding constraints to economic growth and what should be done especially in relation to energy and freight.
  2. Understanding of the nature of the ESKOM crisis and links to the energy crisis was developed
  3. Signing of the social compact to support ESKOM
  4. The implementation plan has been regularly reviewed and updated making the Social Compact a living and interactive process
  5. Birthed the work of Operation Vulindlela, the National Electricity Crisis Committee (NECOM) and the Operational Partnership between business and government.
  6. Changing nature of NEDLAC Energy Work Stream when NECOM was set up.
  7. Set up co-ordinating structures including a 7-a-side of the leadership of social partners and government.
  8. Improve the eco-system for small business
  9. The structures set up under the Economic Recovery and Reconstruction Plan (ERRP) were consolidated into NEDLAC Chambers and Task Teams.
  10. Establishment of the Presidential Climate Change Commission

21 December 2023 - NW4045

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De Freitas, Mr MS to ask the Minister of Tourism

(1)With reference to forensic audits undertaken by South African Tourism in the last three financial years and since 1 April 2023 to date, (a) which audits have been (i) each per month, (ii) concluded per month, and (b) what was the value of each of the audits in each instance respectively; (2) What was the nature of each audit in each instance respectively; (3) Who conducted the audits in each instance respectively; (4) What was the outcome of each audit in each instance respectively?

Reply:

Forensic Audits 2020-2021

(1)(a)(i+ii) Which audits have been concluded per month

(1)(b) What was the value of each audit

(2) What was the nature of each audit

(3) Who conducted each audit

(4) What was the outcome of each audit

N/A

R0

General complaint received 24 Feb 2020

Independent Forensic Investigators

Closed

N/A

R0

Unethical conduct complaint received 22 July 2020

Independent Forensic Investigators

Closed

Forensic Audits 2021-2022

(1)(a)(i+ii) Which audits have been concluded per month

(1)(b) What was the value of each audit

(2) What was the nature of each audit

(3) Who conducted each audit

(4) What was the outcome of each audit

From 1 January 2022, three investigations were undertaken.

Two investigations were received in May 2022 through the Hotline and one was a direct call from the whistle-blower received in June 2022.

R0

R0

The Direct Call

R89 000

Unethical Conduct

Unethical Conduct

Payment of invoices without work done

All investigations are conducted by independent forensic investigators that are sourced through supply chain management processes.

The process was underway to conclude the three investigations in the FY 2022-2023 table.

 

 

Forensic Audits 2022-2023

(1)(a)(i+ii) Which audits have been concluded per month

(1)(b) What was the value of each audit

(2) What was the nature of each audit

(3) Who conducted each audit

(4) What was the outcome of each audit

N/A

R0

Unethical Conduct

SIU

Irregularities were identified. Matter still underway.

N/A

R0

Unethical Conduct

SIU

Allegations partly confirmed. Matter still underway.

N/A

R390 195

Bribery/Corruption

Forensic Investigators (Outsourced)

Improper conduct and misrepresentation on the part of certain officials identified. Matter still underway.

N/A

R0

Misconduct

Human Capital

False allegations identified.

N/A

R0

Misconduct(duplicate of 10)

Human Capital

False allegations identified.

N/A

R89 000

Payment of invoices without work done

The preliminary investigation was done by forensic investigators (Outsourced)

Referred to SIU for full investigation. Matter still underway.

Forensic Audits since 1 April 2023

(1)(a)(i+ii) Which audits have been concluded

(1)(b) What was the value of each audit

(2) What was the nature of each audit

(3) Who conducted each audit

(4) What was the outcome of each audit

N/A

Pending

Corruption

SIU

In progress

N/A

Pending

Corruption

SIU

In progress

N/A

Pending

Investigation

Pending

In progress

18 September 2023

Pending

Suspected scam

SIU

In progress

04 October 2023

Pending

Complaint on HC process

SIU

In progress

 

21 December 2023 - NW4060

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Marais, Mr S to ask the President of the Republic

(1)In light of the Expert Panel into the July 2021 Civil Unrest’s recommendation of the urgent development of an Integrated National Security Strategy and with reference to his 2022 State of the Nation Address in which he made a call to all South Africans to participate in the development of the Integrated National Security Strategy and pronounced that he intends to approach Parliament’s presiding officers to request that Parliament plays a key role in facilitating inclusive processes of consultation, what is the (a) status and (b) progress of the development of the Integrated National Security Strategy; (2) what (a) public or other consultations have been undertaken in the development of the Strategy and (b) is the envisaged finalisation date for the specified Strategy; (3) (a) when will he engage the presiding officers of the Parliament of RSA for including it in the development of the Strategy and (b) what will be the extent to which he envisages Parliament’s involvement?

Reply:

The development of the draft National Security Strategy is being undertaken by the National Security Council. Once the National Security Council has completed its work and the draft National Security Strategy has been considered by Cabinet, the draft will be made available for consultation and input.

21 December 2023 - NW4211

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Roos, Mr AC to ask the Minister of Home Affairs

Whether his department plays a role in the accreditation of venues as voting stations for eligible South African citizens abroad; if not, why not; if so, what mechanisms and/or protocols are followed to accredit a venue that is not an embassy, High Commission or a Consulate of the Republic as a voting station?

Reply:

The Department of Home Affairs plays no role in the accreditation of venues as voting stations for eligible South African citizens abroad. Sections 33(3) and 33(4) of the Electoral Act 73 of 1998, determine the location of voting stations outside of the country at South African Embassies, High Commissions, and Consulates.

END

21 December 2023 - NW4174

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Sithole, Mr KP to ask the Minister of Tourism

Whether her department has any records of the number of ongoing cases in which her department is the (a) plaintiff and (b) respondent; if not, why not; if so, what are the relevant details?

Reply:

I have been informed by the department that the details of ongoing cases are contained in the table below.

NO.

NAME OF THE CASE

DATE STARTED

NATURE OF THE CASE

1.

Minister of Tourism vs. Corporate Skills Development Services.

25/02/2019

This is a claim by Department for the irregular award of a tender to Corporate Skills Development Services. The Department requested the court to cancel the contract.

2.

Minister of Tourism vs. KA Morritt/ Morritt CC

07/11/2016

This is a claim by the Department based on a collision between a Departmental vehicle and a vehicle belonging to and/ or driven by KA Morritt.

3.

Minister of Tourism vs. Bonwelong Skills Development cc and Mr Inama.

27/01/2017

This is a claim for money paid in advance to Bonwelong for the implementation of the Hospitality Youth Programme in Limpopo and North West Provinces. Bonwelong cancelled the Agreement with the Department but failed to pay back the advanced payments.

4.

Minister of Tourism vs. Wayne Smith and Associates & Wayne Smith

04/11/2020

This is a claim by the Department based on a collision between a Departmental vehicle and a vehicle belonging to and/ or driven by Wayne Smith and Associates & Wayne Smith.

5.

Minister of Tourism vs. Second Generation Consulting CC

18/10/2017

This is a claim filed by the Minister for damages emanating from failure by the Defendant to discharge its contractual obligations as per the Agreement.

6.

Minister of Tourism vs. Amathemba Skills Pty Ltd

14/07/2021

This is a claim by the Department against Amathemba Skills for:

  1. Claim for payment of unused project funds totalling R1 335 106-15.
  1. R445 632-12 which was withdrawn by Amathemba after the expiry of the Agreement without authorisation.
  1. R1 412 348-86 for drawings made by Amathemba without furnishing valid invoices to justify the expenses.

7.

Minister of Tourism vs. Samuel Malesela Mogale Business Enterprise CC

10/07/2020

This is a claim by the Department against the Defendant as a result of double payment from a Covid-19 relief fund.

8.

Minister of Tourism vs. Siyanda Mbeki

28/06/2019

On 1 July 2019, the Defendant was transferred from the Department of Tourism. At the time of his departure, he had an existing debt in respect of his bursary debt. The Defendant failed to comply with clause 2(C) of the bursary contract, where upon he had undertaken to “furnish the Department with necessary proof of my examination results immediately after the results of any annual examinations/ supplementary examinations have been made known by the examination authority.” As a result of his non-compliance the Department withdrew his bursary contract in terms of clause 3(b) of the contract and the debt became due.

9.

Minister of Tourism vs. ZM Kubheka.

02/03/2022

This is a claim to recover from the official, overpayment of monthly salary, bond repayment and leave taken without authorisation, which resulted in leave without pay.

10.

Minister of Tourism vs. MBB Consulting Services (PTY) Ltd

01/11/2022

The claim relates to financial loss to the amount of R12 215 308-00 suffered by the Department due to mismanagement of the projects’ funds by the Implementer.

11.

Minister of Tourism vs Kganakga SM

21/04/2022

On 11 November 2020, the Department entered into a written an agreement with the Defendant wherein the latter was to participate in a training programme of Mandarin Language Tourist Guiding.

The Defendant pulled out of the programme before its completion and as a result the Department incurred costs in the sum of R8 395-00 being costs for the preparation.

The Department instructed the State Attorney to recover the amount from the Defendant.

Ongoing Cases against the Department

NO.

NAME OF THE CASE

DATE STARTED

NATURE OF THE CASE

1.

Gerson Nevari vs. Department of Tourism & Director-General of the Department of Tourism

25/06/2020

Applicant is challenging that the Department that he resigned from his employment and if the court finds that indeed he resigned, he alleges constructive dismissal.

2.

Umbuso Training Services (Pty) Ltd vs. The Member of the Executive Committee, Department of Tourism

15/04 2021

This is a claim against the Department for payment in the amount of R246 675-00 (being the 10% retention money) and for payment in the amount of R825 700-00 (being for administration of stipends).

3.

ActionSA vs. Minister of Tourism and Others

16/11/2022

An application regarding the flow of untreated and raw sewage into the rivers and the sea in Durban and surrounding areas.

21 December 2023 - NW4176

Profile picture: De Freitas, Mr MS

De Freitas, Mr MS to ask the Minister of Tourism

What (a) steps have been taken to deal with issues related to tourism mentioned in the World Bank report titled Safety First: The economic cost of crime in South Africa, to ensure that the challenges mentioned in the report are addressed in order to ensure growth in tourism and (b) are the timelines, deadlines and/or milestones in this regard?

Reply:

a) What steps have been taken to deal with issues related to tourism mentioned in the World Bank report?

It is the mandate of the South African Police Service to deal with all crime.

The safety of all tourists is paramount and we are determined to do all we can to ensure that all tourists have a safe and memorable experience in South Africa.

The Department continues to engage relevant Departments and implements various initiatives aimed at ensuring that tourists are safe, through the National Tourism Safety Strategy and the Memorandum of Understanding (MoU) between the Department and the South African Police Service (SAPS).

I convened the inaugural, quarterly, National Safety Forum (NSF) meeting on 29 May 2023. Two subsequent meetings were held on 29 August 2023 and 12 December 2023.

The NSF comprises all three spheres of government, SAPS, Airports Company South Africa, National Prosecuting Authority, Provincial Tourism entities, the private sector and various tourism product owners.

The NSF meets quarterly and has set targets to be achieved quarterly.

The Department has also budgeted R174 Million for the deployment and training of 2300 Tourism Monitors who will be deployed at major tourist attractions and sites, including strategic ports of entry, national parks and other attractions across the country to assist with tourism and safety related information and matters.

Another aspect of the National Tourism Safety Strategy is the Victim Support Programme (VSP) running in some provinces to support victims of crime.  A Standard Operation Procedure/ “How-to Guide” for the establishment of the VSP for all provinces was developed by the Department to assist provinces in setting up VSPs. Currently Mpumalanga and the western Cape have successful VSPs.

As part of the National Tourism Safety work, on 14 November 2023, I also held a Tourism Safety engagement with members of the Diplomatic Corps. The session was attended by 115 participants including Ambassadors, High Commissioners, Attachés’ as well as the embassy officials who included the locally recruited personnel.  

The briefing document was sent, via the Department of International Relations and Cooperation, to the diplomatic Corps and all SA Missions abroad.

The purpose of the session was to amongst others share South Africa’s programmes, interventions and strategies towards tourist safety.  The session provided prerequisite information with a view to enable the Diplomatic Community to appreciate South Africa’s efforts towards tourist safety and to further transmit the information to their citizens in countries of origin who are planning to visit South Africa in the near future. 

Earlier this year, the private sector launched the Secura Traveller app and 24-hour operations center to assist tourists with a range of services they may need in the event of any incident. The private sector indicates that the app links tourists to more than 200 service providers including private security companies, medical and translation services.

(b) What are the timelines, deadlines and/or milestones in this regard?

The above initiatives are continuously implemented by the department with the Tourism Monitors programme launched in Mpumalanga on 12 December 2023. The deployment to the remaining eight provinces will take place during the festive season.