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26 August 2020 - NW630

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Nolutshungu, Ms N to ask the Minister of Transport

Whether he has found that his visits that resulted in the gathering of crowds at taxi ranks (a) were in contravention of the regulations to prevent the spread of COVID-19 and (b) put the lives of commuters at risk who may have been infected by the coronavirus; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

1. In respect of the intervention made at the Noord Taxi Rank, it is important that I give context to my response and to also thoroughly explain the circumstances so my answer can be appreciated within this context.

1.1 Regulation 11B(1)(a)(i) of the Disaster Management Act 2002; Amendment of Regulations issued in terms of section27(2) (the Regulations) states;

‘11B. (1) (a) For the period of lockdown-

(i) Every person is confined to his or her place of residence, unless strictly for thepurpose of the performing an essential service, obtaining an essential good or service, collecting a social grant, or seeking emergency, life-saving or chronic medical attention Emphasis added.

1.2 Category B, item 26, of Annex B to the Regulations lists as an essential service:

Services rendered by the Executive, members of Parliament, Members of the Provincial Legislature Members of Local Councils, the Judiciary, Traditional leaders, and National Office Bearers of Political Parties represented in Parliament Emphasis added.

1.3 Accordingly, during the national lockdown, I am obliged to continue rendering my services and performing my duties as Member of Parliament and of the Executive, particularly in the fight to prevent or limit infections, transmissions and the spread of the Covid-19 virus, which has been declared a global pandemic by the World Health Organization.

1.4. Consequently, on 26 March 2020, I caused to be issued Directions in terms of Regulations 10(7) of the Regulations (the Directives). Given that the COVID-19 pandemic is a moving target, the Directives were amended on 31 March 2020. The aforementioned amendment to the Directives caused much unhappiness and ructions in the taxi industry which was likely to result in nationwide protests.

1.5 As the sitting Minister of Transport, part of my duties aforesaid is educating inter alia the taxi(namely; associations, owners, drivers and queue marshals)and public commuters about the Regulations and the Directives insofar as they relate to the industry in the fight to prevent or limit infections, transmission and the spread of the COVID-19 virus. Covid-19 has been declared a pandemic by the World Health Organization. The fight against it is not only a national but global duty. The honorable member cannot deny the importance and prioritization of his fight.

1.6 It has been widely publicized that the industry, which is obviously a major risk environment for infection, transmission and spreading of the virus was at the beginning of the national lockdown and has continue to be one of the main problem industries in the adherence to the Regulations and the measures put in place by the Government in the fight against pandemic. Consequently, the persistent and continued education of the taxi industry and commuters was identified as essential and a priority by Government, in particular the Ministry of Transport, of which I’m its head.

1.7 As Minister of Transport, I was alerted to overcrowding which was taking place in and around Noord taxi rank in Johannesburg Central Business District (the Taxi Rank) in contravention of the Regulations and the Directives, and which most concerning carried the real possibility of undoing the Governments’ efforts in the fight the pandemic. In response to this emergency.I urgently attended at the Taxi Rank to inter alia investigate the situation and to inform and educate the taxi industry and commuters about the reasons and rational behind, and the actual, measures that they must adopt in terms of the Regulations and Directives in the fight against the pandemic, being the prevention or limitation of the rate of infections, transmission and the spread of the virus.

1.8 Upon my arrival, I observed, with despair and concern, a number of contraventions of the Regulations and the Directors in and around the Taxi Rank by members of the taxi industry, commuters and general members of the public.

1.9 Consequently, exercising my duties as Minister of Transport, I inter alia gave an address to inform and educate the members of the taxi industry, commuters and general members of the public about the reasons and rational bind, and actual, measures that they must adopt in terms of the Regulations and Directives in the fight against the pandemic, being the prevention or limitation of the rate of infections, transmission and the spread of the virus. It will be noted from the video footage of my address which is publically available that there were also members of South African Police Services and The Johannesburg Metropolitan Police Services in attendance. What is more, residents of the buildings in the surrounding area also came out onto their balconies to listen to my address.

1.10 Since my address, the taxi industry and commuters have significantly improved their adherence to the Regulations and Directives. I had also requested the Mayor of Johannesburg and a Member of the Executives at Local Government level who is also declared an essential worker in line with the regulations to accompany me as these commuters and residents of his city.

2.

2.1 In light of the above, it is clear that I did not, nor did I intend to, contravene the Regulations, particularly regulations 11B.(1)(a)(ii)

2.2 The Honourable member’s assertions in the question that I contravened the Regulations when he made the address in the circumstances referred to above are not only incorrect but also reflective of wrong observations.

2.3 I have remained fully committed to complying with Regulations and the fight against infection, transmission and spread of the COVID-19 virus. I’m heartened by the millions of South Africans who are complying with the Regulations

2.4 I believe that all of us will meaningfully join the Government’s efforts in the aforesaid fight spread of other members of society focusing on derailing or destructing members of our society, the South African Police Services and the Executive who are at the forefront of fighting the pandemic.

25 August 2020 - NW972

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Masango, Ms B to ask the Minister of Social Development

(a) What are the processes that were followed in constituting the technical task team of her department, (b) for how long was the team set up, (c) what amount has been paid to each task team member, (d) what are the details of the (i) terms of reference and (ii) reports of the task team and (e) what has been done with the recommendations of the reports?

Reply:

a) The Technical Committee for SASSA was appointed by the previous Minister of Social Development to assist SASSA in implementing the Constitutional Court judgement of 23rd March 2018 and to advice on business model review of SASSA.

Various Constitutional Court judgements in the course of 2017 made it clear that there were challenges with the existing contract with service providers for cash payment, without which SASSA would not be able to execute its mandate and the extra capacity for a period of time was required.

b) The Technical Committeewas appointed from May 2018 until October 2018

c) The members of the Technical Committee were paid as follows:

Name of Committee Member

Total Amount Paid

Ms.Dipuo Peters

R468,503.05

Ms ManokoNchwe

R449,040.00

Ms.Totsie Memela

R235,592.00

Mr.SelwynJehoma

R383,466.00

Ms.ZodwaManase

R348,580.00

Mr.SiphoShezi

R649,650.00

d) The Terms of Reference is attached for ease of reference

e) The six reports from the Technical Committee are attached for ease of reference

  • The project recommendations identified in the reports were implemented
  • Governance and Institutional Review is underway. The new Chief Executive Officer had to be appointed to drive the review.
  • The Agency is in the process of developing a business case for replacement of SOCPEN and also evaluating options and approach to replace the system depending on availability of budgetary resources.

25 August 2020 - NW1384

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August, Mr SN to ask the Minister of Social Development

(1)Whether, considering that her department now does not need to pre-approve plans to enable nongovernmental organisations to provide food relief to citizens in need, the regulation includes that takeaway and/or disposable containers would be acceptable for soup and food kitchens that can provide the specified take-away containers; if not, what is the position in this regard; if so, what arethe relevant details; (2) whether homeless persons will be exempted from the requirement that soupkitchens and food parcel distributors provide the names and addresses of allrecipients, since homeless persons do not have an address (details furnished); ifnot, what is the position in this regard; if so, what are the relevant details? NW1755E

Reply:

1. Yes, theDepartment (DSD) does not need to pre-approve plans to enable nongovernmental organisations to provide food relief to citizens in need. The DSD was rather seeking to better coordinate all food distribution activities and ensure vulnerable people receive food in a dignified manner in partnership with individuals and organizations involved in food distribution.

The permission of take away and/or disposable containers is acceptable for soup and food kitchens that can provide the specified take-away containers.

The measures introduced by DSD are not prohibitive but intended to protect the health and well-being of our people. Health inspectors had warned the food programme against use of inappropriate materials, hence the Department had provided cutlery and crockery in the centres. The take away provision was to enable centres to not have congestion whilst we striving for social distancing during the COVID-19 period.

2. No, the homeless persons are supported by the shelters and in the case where they do not have IDs and addresses our officials use their names to identify and register them. A portfolio of evidence is part of accounting for resources distributed by government and the soupkitchens and food parcel distributors providingfood to the homeless without addresses do still register the recipients using their names, surname and the centre or area they come from.

25 August 2020 - NW1456

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Groenewald, Mr IM to ask the Minister of Tourism

(1)Apart from the R200 milion relief fund for the tourism industry, what other measures, programmes and/or initiatives are being put in place to assist the tourism industry; (2) which of these measures, programmes and/or initiatives do not have broad-based black economic empowerment accreditation requirements in order to qualify; (3) whether she will make a statement on the matter?

Reply:

1. Apart from the Tourism Relief Fund what other measures, programmes and/or initiatives are being put in place to assist the tourism industry.

Apart from the Tourism Relief Fund, the Department has established a Tourist Guides ReliefFund for which a R30 million budget has been set aside to provide relief to freelance tourist guides.

The tourism sector, like all other industries and sector of the economy alsohas access to other forms of Covid-19 financial relief measures such Tax Relief fromSouth African Revenue Services (SARS), Temporary Employee Relief Scheme (TERS) or Unemployment Insurance Fund (UIF) Covid-19Relief Benefit from the Department of Employment and Labour; and the National Treasury’s R200 billon Credit Guarantee Scheme.

2. Which of these measures, programmes and/or initiatives do not have broad-based black economic empowerment accreditation requirements in order to qualify.

N/A

3. Whether the Minister will make a statement on the matter.

The Minister and/or departmenthas made public statements in relation to the relief measures that are provided by the department.

25 August 2020 - NW1460

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Luthuli, Mr BN to ask the Minister of Cooperative Governance and Traditional Affairs

(1) Whether the Covid-9 pandemic has impacted some critical vacancies in her department; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

There has been no negative impact on the Department’s ability to fill critical vacancies. The Department has been able to continue with the appointment in critical vacancies.

End.

25 August 2020 - NW1730

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Van Dyk, Ms V to ask the Minister of Cooperative Governance and Traditional Affairs

With reference to her reply to question 794 on 18 May 2020, why is she unable to provide the information as to whether councillors who resign, informs her department of such resignations?

Reply:

  1. No.

When a person resigns as a councillor, he or she may submit their resignation to the municipality or to the political party to which the councillor may belong, for the party to then facilitate the submission of the resignation to the municipality, where after a vacancy is declared.

End.

25 August 2020 - NW1288

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Brink, Mr C to ask the Minister of Cooperative Governance and Traditional Affairs

Whether, since her reply to question 392 on 1 August 2019, she has made any attempts to obtain the requested information since 2 August 2019, if not, what is the position in this regard; if so, (a) what are the details of the attempts, including emails, meetings and telephonic correspondence and (b) why has she failed to provide the requested information to date?

Reply:

When the reply to Parliamentary Question 2019/392 was submitted, responses received were from Gauteng and the North West provinces; a response from Limpopo was still outstanding. Limpopo province submitted additional information on 19th August 2019.

The Department continued to engage the Limpopo province requesting progress on all forensic investigations, including the Venda Building Society Mutual Bank (VBS) cases. The province submitted a progress report on forensic investigations in January 2020.

a) Engagements with the province and law enforcement agencies on VBS cases were executed through email and telephonic correspondence.

b) Additional information on VBS cases was provided through follow-up PQ2019/392 where progress from the province was included. Further, the progress report received from the province in January 2020 formed part of the report presented to the Portfolio Committee on Co-operative Governance and Traditional Affairs in March 2020 on forensic investigations in general.

End.

25 August 2020 - NW1761

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Brink, Mr C to ask the Minister of Cooperative Governance and Traditional Affairs

Whether, since her reply to question 312 on 19 March 2020, she has made any attempts to obtain the requested information; if so, (a) what are the relevant details of the specified attempts, including emails, meetings and telephonic correspondence and (b) why has she failed to provide the requested information to date?

Reply:

a) The official resigned from the post of Director-General with effect from 30 December 2019.

b) No severance/ and /or settlement agreement was paid.

c) No amount was paid in lieu of the specified official serving the balance of the employment agreement.

d) No performance bonus was paid to the official.

End.

25 August 2020 - NW1813

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Komane, Ms RN to ask the Minister of Cooperative Governance and Traditional Affairs

How will the comprehensive redesign of the Community Works Programme of her department support the skills of the labour force in a manner that contributes to the competitiveness of the South African economy and create sustainable decent employment?

Reply:

The redesign of the implementation model for the Community Work Programme (CWP) is aimed at achieving operational efficiencies and enhance development effectiveness. The redesign will contribute towards remodelling service delivery by refocussing the nature of useful work towards economic generating activities and those with a potential to contribute to youth employment. In this instance, business models will be explored that promote small business development opportunities for the youth. Emphasis will be on the formation of Cooperatives and training them to be viable and sustainable.

Through a partnership with the Municipal Infrastructure Support Agent (MISA), the participants will conduct useful work activities supporting infrastructure maintenance with technical oversight provided through MISA engineers.

Participants will acquire critical skills that have the potential to open other livelihood opportunities as they get trained as Artisans, Plumbers, Carpenters etc. The objective is to enhance the employability and self-employment prospects for the youth beyond the CWP.

A redesigned CWP will put emphasis on value-add with regard to training and links will be established with SETAs, TVET colleges and Universities by ensuring that training provided not only assist in improving the quality of useful work performed at site level, but that it contributes towards inclusive growth by equipping participants with skills that empowers them to either enter the formal economy or to be self-employed. Preference is given to women, youth and people with disabilities.

End.

25 August 2020 - NW1815

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Thembekwayo, Dr S to ask the Minister of Human Settlements, Water and Sanitation

(a) On what date will her department assist the child-headed household at 4607 in Extention 6, Lekwa, Standerton Township in Mpumalanga, that lost a house and everything in it due to a fire that broke out, with offering the children a temporary shelter and (b) by what date will her department rebuild the house that burnt down?

Reply:

(a)&(b) Honourable Member, my Department has informed me that it has conducted a site visit to verify the nature and extent of the damages at the said household. It is liaising with the Lekwa Local Municipality to ensure that the affected household is promptly provided with temporary shelter through its Municipal Relief Programme.

Further, upon finalization and approval processes, a house shall be allocated to the affected household on Stand No. 4607, Ext 6 Sakhile under the project (E19100002) which is currently undertaken by a contractor appointed to construct 200 housing units in the area. On approval, the contractor shall be given one calendar month to complete the house.

25 August 2020 - NW1289

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Brink, Mr C to ask the Minister of Cooperative Governance and Traditional Affairs

(a) What are the details of the process that needs to be followed by any municipal council when investigating allegations of serious financial misconduct against a municipal manager and (b) on which statutory provisions should they rely in this regard; (2) whether she will issue a circular to provincial departments responsible for cooperative governance and traditional affairs to clarify (a) the relationship between the Disciplinary Regulations for Local Government Senior Managers based on the Local Government: Municipal Systems Act, Act 32 of 2000 and the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings based on the Local Government: Municipal Finance Management Act, Act 56 of 2003, and (b) in which circumstances each is to be applied?

Reply:

1. (a) Regulations 5 and 6 of the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings (“Municipal Financial Misconduct Regulations”)prescribe that the following processes be followed by a municipal council when investigating allegations of financial misconduct against a municipal manager:

(i) A municipality or municipal entity must develop terms of reference for an investigation within seven days of receipt of a referral from a disciplinary board for approval by council or board of directors.

(ii) A disciplinary board must conduct a preliminary investigation to determine whether or not the allegation is founded and make a recommendation to council or board of directors as to whether sufficient grounds exists to warrant a full investigation into the allegation.

(iii) If the disciplinary board determines that the allegation is founded, a full investigation must be conducted by:

a) disciplinary board;

b) provincial or national treasury;

c) appropriate specialist expertise and who is not an official of the municipality or municipal entity; or

d) an independent team of investigators appointed by council or board of directors

(iv) After completion of a full investigation, the investigator must:

a) compile a report on the investigation.

b) submit a report to the mayor or chairperson of the board of directors and the accounting officer together with its findings and recommendations regarding disciplinary steps that should be taken against the alleged transgressors, if applicable; and

b) immediately inform the speaker of council of the submission of the report and submit a copy of the report to the provincial treasury and the national treasury.

(v) The mayor, speaker, accounting officer or chairperson of the board of directors must table the report of the investigation to council or board of directors at the first sitting after the report is finalised.

(vi) If the report that is tabled before council or board is amended, the person tabling the report must provide written reasons for the amendments to council or board.

(vii) If the findings or recommendations of the report are rejected by council or board, reasons for rejection must be provided to the investigator within five days of rejection.

(viii) Where the recommendations of the report regarding disciplinary steps against the alleged transgressors are not implemented, the investigator must notify the provincial treasury and the national treasury for a possible intervention in terms of regulation 19 of the Municipal Financial Misconduct Regulations.

(ix)If the investigator recommends that disciplinary proceedings be instituted against the alleged transgressor, council or board of directors must by way of resolution institute the disciplinary proceedings.

(b) The provisions as contained in the Municipal Financial Misconduct Regulations made in terms of the Municipal Finance Management Act, 2003 take precedent in relation to investigations of serious financial misconduct.

2. (a) No. The Municipal Systems Act Disciplinary Regulations and the Municipal Finance Management Act Municipal Financial Misconduct Regulationswere enacted into law following comprehensive consultations with the provincial treasuries, provincial departments responsible for local government and municipalities and therefore there is no evidence that municipalities confuse the relationship between the two set of regulations.

(b) The Municipal Financial Misconduct Regulations deals with reporting and investigation of financial misconduct, including criminal offences while the Municipal Systems Act Disciplinary Regulations prescribe procedures for the institution of disciplinary proceedings against municipal managers. Therefore, the two set of regulations are complementary and applied concurrently to the extent required.

End.

25 August 2020 - NW1660

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Mohlala, Ms MR to ask the Minister of Cooperative Governance and Traditional Affairs

What measures will her department implement to ensure that there is consequence management in the Sekhukhune District Municipality, where the Auditor-General’s report revealed that the Executive Mayor and a councilor are doing business with the specified municipality without declaring any interest? NW2050E

Reply:

We requested the Province to investigate the matter and report back.

End

25 August 2020 - NW1406

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Brink, Mr C to ask the Minister of Cooperative Governance and Traditional Affairs

What did she mean when she referred to cadres and cadre deployment in respect of her remarks to get the right cadre for the job (details furnished), (b) how does she reconcile such a policy with sections 195(1) and 197(3) of the Constitution of the Republic of South Africa, 1996, and section 6 of Annexure A, Part II of the Local Government: Disciplinary Regulations for Senior Managers of the Municipal Systems Act, Act 32 of 2000, and (c) which (i) policy, (ii) statutory and (iii) constitutional provisions does she rely on for making such appointments in the Public Service?

Reply:

a) Appointments of municipal staff are done within the ambit of the law. Section 82 of the Local Government: Municipal Structures Act, 1998 read together with section 56 of the Local Government: Municipal Systems Act, 2000 prescribe that a person appointed as a municipal manager and manager directly accountable to municipal manager must have the relevant skills and expertise to perform the duties associated with that post. My sentiments find expression in these legislative provisions.

b) The appointment of the candidates with the relevant skills and expertise will enable municipalities to build the requisite skills, capacity and capabilities to perform their functions, promote efficient, economic and effective use of resources and accountable local public administration in line with the democratic values and principles governing Public administration as enshrined in section 195(1) of the Constitution of the Republic of South Africa, 1996 (“the Constitution”).

c) The authority to employ personnel in local government vests in the municipal council in terms of section 160(1)(d) of the Constitution of the Republic of South Africa, 1996, but only subject to national and provincial legislation. As regards the appointments, municipalities relies on the following applicable pieces of legislation, statutory frameworks and policies governing local public administration and human resources:

(a) The Constitution of the Republic of South Africa, 1996;

b) The Local Government: Municipal Structures Act, 1998;

c) The Local Government: Municipal Systems Act, 2000 (Act (‘‘the Systems Act’’) and the following regulations promulgated in accordance with section 72 of the Systems Act:

(i) The Local Government: Regulations on Appointment and Conditions of Employment of Senior Managers, 2014 (“the Regulations”); and

(ii) The Local Government: Disciplinary Regulations for Senior Managers, 2011.

d) Regulations on Minimum Competency Levels made in terms of section 168 of the Local Government: Municipal Finance Management Act, 56 of 2003; and

e) Any other applicable labour laws and legislation.

End.

25 August 2020 - NW1389

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Luthuli, Mr BN to ask the Minister of Tourism

What scientific backing went into the decision to reopen cinemas and casinos during the Covid-19 pandemic?

Reply:

As Honorable member would know, cinemas fall under the mandate of the Department of Sport, Arts and Culture.

As for the reopening of casinos, it was informed by the stringent preventative protocols developed by the casino industry, which were deemed adequate to prevent the spread of infections from a health point of view. These included adequate social distancing and spacing between machines, wearing of masks, frequent sanitization, different entrances for staff and patrons, screening of patrons and staff, keeping a register, arrangements for isolation room where necessary, booking of slots before arrival, and mainly working with membership based clientele amongst others.

25 August 2020 - NW1684

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Joseph, Mr D to ask the Minister in the Presidency

What are the names of the (a) Ministers and/or (b) Deputy Ministers who have been deployed to the district municipalities in each province according to the announcement made by the President, Mr M C Ramaphosa; 2. whether the deployment plans will be submitted to Parliament for oversight purposes according to section 42(3) of the Constitution of the Republic, 1996; if not, why not; if so, by what date will the plans be submitted; 3. what are the specific (a) mandates and (b) outcomes the deployed Ministers and/or Deputy Ministers must achieve in the district municipalities; 4. whether the (a) SA Local Government Association, (b) trade unions and (c) civil society will be consulted during the deployment process; if not, why not; if so, what are the relevant details; 5. how will section 154 of the Constitution of the Republic, 1996, be affected?

Reply:

All Ministers and Deputy Ministers, refer to the list below.

WESTERN CAPE PROVINCE

District

Champion

Title

1

Central Karoo

Pam Tshwete

Deputy Minister

2

West Coast

Barbara Creecy

Minister

3

Overberg

Patricia De Lille

Minister

4

Garden Route

Alvin Botes

Deputy Minister

5

Cape Town

Naledi Pandor

Minister

   

Bheki Cele

Minister

6

Cape Winelands

Ebrahim Patel

Minister

KWAZULU-NATAL PROVINCE

District

Champion

Title

7

Amajuba

Thulas Nxesi

Minister

   

Hendrietta Bogopane-Zulu

Deputy Minister

8

eThekwini

Nocawe Mafu

Deputy Minister

 

 

John Jeffery

Deputy Minister

9

Harry Gwala

Jackson Mthembu

Minister

10

iLembe

David Masondo

Deputy Minister

11

King Cetshwayo

Fikile Mbalula

Minister

12

Ugu

Buti Manamela

Deputy Minister

13

uMgungundlovu

Sindisiwe Chikunga

Deputy Minister

14

uMkhanyakude

Lindiwe Sisulu

Minister

15

uMzinyathi

Nathi Mthethwa

Minister

16

uThukela

Joe Phaahla

Deputy Minister

17

Zululand

Blade Nzimande

Minister

MPUMALANGA PROVINCE

District

Champion

Title

18

Ehlanzeni

Mcebisi Skwatsha

Deputy Minister

19

Gert Sibande

Thabang Makwetla

Deputy Minister

20

Nkangala

Maite Nkoana-Mashabane

Minister

EASTERN CAPE PROVINCE

District

Champion

Title

21

Alfred Nzo

Stella Ndabeni-Abrahams

Minister

22

Amathole

Hlengiwe Mkhize

Deputy Minister

   

Inkosi Phathekile Holomisa

Deputy Minister

23

Chris Hani

Ronald Lamola

Minister

24

Joe Gqabi

Parks Tau

Deputy Minister

25

OR Tambo

Senzo Mchunu

Minister

26

Nelson Mandela Bay

Aaron Motsoaledi

Minister

27

Sarah Baartman

Zoleka Capa

Deputy Minister

28

Buffalo City

Cassel Mathale

Deputy Minister

   

Pinky Moloi

Deputy Minister

FREE STATE PROVINCE

District

Champion

Title

29

Fezile Dabi

Pinky Kekana

Deputy Minister

30

Lejweleputswa

Lindiwe Zulu

Minister

31

Mangaung

David Mahlobo

Deputy Minister

   

Dikeledi Magadzi

Deputy Minister

32

Thabo Mofutsanyana

Sdumo Dlamini

Deputy Minister

33

Xhariep

Phumulo Masualle

Deputy Minister

NORTHERN CAPE PROVINCE

District

Champion

Title

34

Frances Baard

Noxolo Kiviet

Deputy Minister

35

JT Gaetsewe

Regina Mhaule

Deputy Minister

36

Namakwa

Nomalungelo Gina

Deputy Minister

37

Pixley ka Seme

Ayanda Dlodlo

Minister

38

ZF Mgcawu

Fish Mahlalela

Deputy Minister

GAUTENG PROVINCE

District

Champion

Title

39

Ekurhuleni

Zizi Kodwa

Deputy Minister

40

Johannesburg

Nosiviwe Mapisa-Nqakula

Minister

41

Sedibeng

Angie Motshekga

Minister

42

Tshwane

Pravin Gordhan

Minister

43

West Rand

Fikile Slovo Majola

Deputy Minister

LIMPOPO PROVINCE

District

Champion

Title

44

Mopani

Thoko Didiza

Minister

45

Capricorn

Tito Mboweni

Minister

46

Sekhukhune

Thembi Siweya

Deputy Minister

47

Vhembe

Candith Mashego-Dlamini

Deputy Minister

48

Waterberg

Khumbudzo Ntshavheni

Minister

NORTH WEST PROVINCE

District

Champion

Title

49

Bojanala

Gwede Mantashe

Minister

50

Kenneth Kaunda

Nkhensani Kubayi-Ngubane

Minister

51

Modiri Molema

Obed Bapela

Deputy Minister

52

Ruth Mompati

Maggie Sotyu

Deputy Minister

   

Njabulo Nzuza

Deputy Minister

 

2. The Champions will be working with the Districts, Provinces and the Local Government to implement Plans that are developed through the ordinary Planning Processes of Government.

 

3. The Champions will be working on strengthening responses to COVID – 19 and the Gender Based Violence and Femicide (GBVF).

In summary the roles and responsibilities of the Political Champions who include Ministers and Deputy Ministers are:

  • To provide strategic guidance for the development and implementation of the One Plan
  • To contribute towards the institutional stabilisation of the allocated district and the reprioritisation process that seek to respond to urgent institutional and governance gaps, and urgent development priorities outlined in the specific district profile.
  • To facilitate the District wide adoption of the One Plan through the various Inter Governmental Relations Structures (IGR), including its sign off and implementation.
  • To work in collaboration with line Ministries and provide support to unblock and bring to the surface any issues that may hinder progress in the implementation of the District Development Model.
  • To collaborate with other champions and districts to maximise impact.

4. .The Champions will work with all Stakeholders in a District.

 

5.The District Development Model (DDM) provides the framework through which Section 154 of the Constitution of the Republic, 1996, will be implemented where the District Development Model brings the whole of government in a spatially targeted way to address developmental needs and opportunities of the 52 district spaces, including providing targeted support in building institutional capacity and capability of local government to perform its constitutional responsibilities.

The District Development Model – One Plan cannot and does not replace any existing prescribed Development, Departmental Strategic and Annual Performance Plans, IDP’s of Municipalities and Sate Entities. It is rather an expression of Integrated Investments Plans and clear Socio – Economic Programmes for changing the living conditions our people in the Spatially Targeted District space.

NW2074E

25 August 2020 - NW1168

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De Freitas, Mr MS to ask the Minister of Tourism

With reference to tour offices of the Republic in countries worldwide, (a) what total number of tour offices does her department have in each country, (b) on what date was each office opened, (c) what are the monthly costs of each office, (d) what is the mandate of each office, (e) what (i) was the output of each office in the 2016-17, 2017-18 and 2018-19 financial years and (ii) for the remainder of this financial year, (f) how is each office monitored and (g) to whom does each office report?

Reply:

a) South African Tourism has offices in 10countries globally operating as regional hubs and servicing key source markets.

b) On what date was each office opened?

AFRICA

AMERICAS

EUROPE

ASIA

AUSTRALASIA

Nigeria

US

Germany

UK

France

Netherlands

India

China

Japan

Australia

2014

1984

1960

1989

1993

1983

2004

2014

1978

2000

c) What are the monthly costs of each office?

AFRICA

AMERICAS

EUROPE

ASIA

AUSTRALASIA

Nigeria

US

Germany

UK

France

Netherlands

India

China

Japan

Australia

R1 066 796,98

R1 444 683,24

R1 196 157,23

R1 162 767,57

R1 144 239,24

R1 031 060,45

R1 313 938,18

R 866 063,72

R 534 334,97

R 868 375,25

d) What is the mandate of each office?

Each office operates as a regional hub servicing key source markets, to ensure effective marketing initiatives, support to the value chain partners and effective delegation of authority and responsibility. Mandate of each office is to drive number of international tourist arrivals into South Africa, increase tourist foreign direct spend, geographic spread, brand positivity and awareness.

(e )(i) What was the output of each office in the financial year?

The output achieved is through partnering with relevant travel trade in each of the markets that are serviced by the country offices in which it invests to maximise synergies, enhance tourist experiences and increase sales of packages to South Africa. Partnerships allow South African Tourism to reach a larger audience at a shared cost with the partner, while the partner is equipped with brand relevant content and tools.

COUNTRY OFFICE

( and the markets it serves)

2016/17- Arrivals

2017/2018- Arrivals

2018/19 - Arrivals

Nigeria

(IncludesGhana)

82 751

68 626

74 768

US

( Includes Canada)

406 192

437 903

444 671

Germany

(Include Austria and Switzerland)

394 548

437 837

431 668

UK

(Includes Ireland)

478 385

479 411

462 305

France

( Include Spain, Portugal and Italy)

292 494

335 666

323 641

Netherlands

(Include Belgium, Denmark, Sweden, Finland and Norway)

297 152

320 275

310 258

India

(IncludeTurkey, UAE, Malaysia and Singapore)

121 298

135 336

126 998

China

(IncludesSouth Korea)

126 658

119 444

119 004

Japan

24 018

27 410

27 542

Australia

(IncludesNew Zealand)

115 611

133 351

131 059

e (ii)Remainder of this financial year.

South Africa has a goal of achieving 21 million international arrivals by 2030. However, the COVID-19 pandemic has severely disrupted the travel and tourism sector with borders closed and flights grounded. The forecast by the UNWTO is that global tourism will decline by 20-30%.

The pandemic has rendered South African Tourism’s current market investment portfolio outdated for this year. Plans are in place to review the market investment choices by revising and updating the Marketing Investment Framework. The revision will ensure that new variables and data are considered in the framework which will reflect the future tourism state post the pandemic and will allow South African Tourism to review market investment choices based on various scenarios.

f) How is each office monitored?

Activities at all global offices are monitored and evaluated through SA Tourism Strategy, Insights and Analytics (SIA) Unit as part of the organisational performance monitoring processes and the markets performance are reported quarterly. Furthermore, the compliance and governance are maintained through policies and processes and monitored through the Internal Audit Unit.

g) To whom does each office report

Each office reports to Regional General Managers based at the South African Tourism’s Head Office in Sandton. The reporting is structured as follows:

Reporting

Regional General Manager: Africa

Regional General Manager: Americas

Regional General Manager:

Europe

Regional General Manager:

Asia/Australasia/Middle East

Continent

AFRICA

AMERICAS

EUROPE

ASIA

AUSTRALASIA

Country Office

Nigeria

US

Germany

UK

France

Netherlands

India

China

Japan

Australia

25 August 2020 - NW1762

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Brink, Mr C to ask the Minister of Cooperative Governance and Traditional Affairs

(1) (a) In which municipalities and (b) on what dates did she exercise her powers to intervene in terms of section 139(7) of the Constitution of the Republic of South Africa, 1996, in the stead of the provincial executive since her appointment to the current portfolio? (2) What (a) was the purpose of each intervention, (b) form did each intervention take and (c) was the outcome of each intervention? NW58E

Reply:

(1)(a) Since the appointment of the Minister in her current portfolio, no municipality to date, has been subjected to an intervention in terms of section 139(7) of the Constitution.

(1)(b) and 2(a)(b)(c), these questions are not applicable, since section 139(7) of the Constitution was never invoked by the Minister in her current portfolio.

End.

25 August 2020 - NW1499

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Mackenzie, Mr C to ask the Minister in The Presidency

Whether he has held any discussions regarding potential candidates to be considered for appointment to the Board of the Media Development and Diversity Agency; if not, what is the position in this regard; if so, (a) with whom and (b) what are the relevant details of each discussion he has held?

Reply:

No, the Minister in the Presidency has not held any discussions regarding the potential candidates to be considered for appointment to the Board of the Media Development and Diversity Agency.

                                                                                                                                                                        

                  

25 August 2020 - NW1628

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Bagraim, Mr M to ask the Minister of Cooperative Governance and Traditional Affairs

What (a) are the relevant details and (b) is the total (i) number and (ii) total amount of all disbursements made available to each province by her department in response to Covid-19 pandemic?

Reply:

a) The Department of Cooperative Governance (DCOG) through the National Disaster Management Centre (NDMC) administers the disaster grants that are meant to provide immediate disaster relief. The department transferred the following grants to assist organs of state to combat the spread of COVID-19 pandemic:

  • An amount of R466 393 000.00 (R466. 3 million) was allocated from the Provincial Disaster Relief Grant to the Departments of Health in all the nine (9) provinces to procure ventilators and personal protective equipment (PPE). The transfer of funds was undertaken between 30 March and 01 April 2020.

b) (i) and (ii)

Funds allocated through the Provincial Disaster Relief Grant to the Provincial Departments of Health

PROVINCES

PURPOSE

AMOUNT

Eastern Cape

Response measures to combat the spread of COVID-19 pandemic (Ventilators and Personal Protective Equipment)

R44 551 000.00

Free State

 

R12 429 000.00

Gauteng

 

R115 996 000.00

KwaZulu-Natal

 

R138 918 000.00

Limpopo

 

R42 449 000.00

Mpumalanga

 

R33 993 000.00

Northern Cape

 

R6 224 000.00

North West

 

R18 540 000.00

Western Cape

 

R53 292 000.00

Total

 

R466 392 000.00

End.

24 August 2020 - NW1346

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Hill-Lewis, Mr GG to ask the Minister of Finance

(1)What total amount of the announced Covid-19 R 200 billion government-secured loan scheme has thus far been deployed by banks; (2) whether he has found the pace of the lending to be satisfactory; if not, (3) whether any design modifications are being considered to encourage banks to deploy the scheme; if not, what is the position in this regard; if so, what modifications are being considered?

Reply:

1. The latest information provided to the National Treasury by the Banking Association of South Africa (BASA) is that, as at 25 July 2020, participating South African banks have provided a cumulative R44.85 billionin total financial relief and loan guaranteesto South African businesses and individuals who are financially distressed due to the Covid-19 pandemic and national lockdown. This includes R12,79 billion in loans extended under the Covid-19 Loan Guarantee Scheme. The balance is non-guaranteed financial relief that banks have voluntarily offered to their customers, including R19,18 billionto individuals and R12,88 billion to commercial and small and medium enterprises.

2. The initial update of the Covid-19 Loan Guarantee Scheme appeared to be slow, however it should be seen within the context of the initial relief granted by the banks (debt restructuring, repayment holidays and similar relief) before the credit guarantee scheme took effect.

3. Yes, the modifications have been considered and effected on 27 July 2020. This includes a longer payment holiday (increased to a maximum of 1 year after taking out the loan and repayment over five years) and offering business “restart” loans.The previous turnover cap has been removed and replaced with a maximum amount of R100m per loan. Previously the customer had to be in good standing with their bank on 29 February 2020 and this has been moved to 31 December 2019, which allows for more businesses to access the loan. Sole proprietors are now explicitly included. No security or suretyship was required and this was further clarified to still not be a requirement. Banks may reconsider applications declined under the first phase.The press statement that was issued by National Treasury, the Banking Association of South Africa and the South African Reserve Bank on 26 July 2020 provides more details, and can be accessed on the treasury website at:http://www.treasury.gov.za/comm_media/press/2020/20200726%20Media%20statement%20-%20Updated%20Loan%20Guarantee%20Scheme.pdf

24 August 2020 - NW1683

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Brink, Mr C to ask the Minister of Finance

With reference to his reply to question 56 on 2 July 2020, (a) which municipalities are not budgeting, transacting and reporting directly on their core financial systems, but instead are working on Excel spread sheets as referred to in paragraph 2(b)(i) of the reply, (b) what are reasons that each specified municipality has given for the failure to use the core financial systems and (c) which municipalities have persistently not complied with the Municipal Regulations on Standard Chart of Accounts as mentioned in paragraph (2) of the reply?

Reply:

a) The National and Provincial Treasuries have conducted a module use verification in October and November 2019 to assess if municipalities are using the IDP, budget, billing and receipts, general ledger, SCM, asset management and inventory, payroll, debtors, creditors and reporting modules available in their core financial systems. The findings were that most municipalities have access to these modules on the core financial system or via 3rd party sub-systems. Despite this finding, a number of municipalities are still budgeting, transacting and reporting outside of the core systems in excel spreadsheets and then capture the information on the system at a later stage. Municipalities do not openly admit to these poor practices, but it is evident when the financial performance reported to Council differ from the information thatis submitted to National and Provincial Treasuries and the high levels of unauthorized expenditure reported by the Auditor-General (when budgeting, transacting and reporting are done outside of the system and captured at a later stage, the built-in controls in the core system to prevent unauthorised expenditure are not triggered).

b) The reasons whymunicipalities are not fully using their core financial systems include:

  • Lack in capacity of municipal officials to use the financial system, use the mSCOA chart correctly, apply basic accounting principles and do balance sheet budgeting.
  • Unwillingness of municipalities to lock the budget on the system before transactions take place and to properly close off month-end processes as changes cannot be made to the figures on the system once the budget and month-end has been locked.
  • Resistance to change previous financial management practices and adopt mSCOA and its transparency.
  • Deliberate circumvention of theinternal controls built-in on the systems to dodge unauthorised expenditure and commit acts of fraud and corruption.
  • Budgetary constraintsto upgrade and maintain the ICT environment (servers, hardware, software, updated modules and versions of the system, and licenses).
  • Connectivity problems at rural municipalities impact on the use of web-based systems and the submission of data strings to the Local Government upload portal.
  • The level of customisation in the system functionality required by Metros and large secondary cities delay system development.
  • Some municipalities are dependent on the system vendors and do not take ownership of their system/the data captured on it.
  • Some municipalities do not perform the responsibilities required from them (i.e. data cleansing, user testing, transaction capturing, etc.) when migrating to a new system, resulting in delays to implement the core system.
  • Non-payment of system vendors due to contractual disagreements result in vendors suspending support.

c) In terms of MFMA Circular No 98 that was issued on 6 December 2019, municipalities are required to submit a roadmap to the National and respective provincial treasury to indicate how the municipality will be become mSCOA compliant if the minimum level of mSCOA implementation has not been achieved as yet. The following municipalities have persistently not complied with mSCOA for the reasons stated:

Eastern Cape:

  • Nelson Mandela Bay Metro: In-house system is not mSCOA enabling and requires additional development. A road map has been submitted to the National Treasury.
  • Amathole Municipality: Huge investments were made to purchase a mSCOA enabling system but the previous implementing agent of the financial system did not conclude the development work, citing a lack of cooperation from the municipality to conclude user testing when required as the reason for not being able to conclude the work. The municipality has taken legal action against the previous implementing agent and appointed a new agent. A road map has not been submitted to the Provincial Treasury.

Free State:

  • Kopanong Municipality: Due to server and connectivity challenges the legacy system (FMS) which is not mSCOA enabling is being used.
  • Mafube Municipality: Due to budgetary constraints the municipality has server challenges and cannot migrate to EMS version of the system.
  • Mohokare Municipality: Due to non-payment of the system vendor, the support to the system is suspended at times and this impacts on reporting.
  • Nala Municipalityis highly dependent on the system vendor to such an extent that the vendor and not officials are capturing the information on the system.
  • Tokologo Municipality is highly dependent on the system vendor to operate the system and as a result officials revert to using the legacy system (FMS) which are not mSCOA enabling.

No road maps have been submitted by any of the Free State non-complying municipalities and the Provincial Treasury is following up on this.

Gauteng:

  • City of Johannesburg: Due to the required level of customisation, the system development has not been concluded as yet.
  • City of Tshwane: Due to required level of customisation, the system development has not been concluded as yet.

Road maps have been submitted to the National Treasury.

KwaZulu-Natal:

  • Msunduzi Municipality: Huge investments were made to purchase a mSCOA enabling system but the previous implementing agent of the financial system did not conclude the development work. The municipality has taken legal action against the previous implementing agent and appointed a new agent. A road map has not been submitted to the National Treasury. Legal action is being taken against the vendor.
  • uPhongolo Municipality: Changed their financial system due to contractual disagreements and currently in process of migrating to a new system. A road map will be submitted to the Provincial Treasury once a system vendor has been appointed.

Limpopo:

  • Lepelle-Nkumpi Municipality: Changed their financial system due to contractual disagreements and currently in process of migrating to a new system. A road map has been submitted to the Provincial Treasury.

Mpumulanga:

  • Gert Sibande and Pixley Ka Seme Municipalities both lack internal capacity and are dependent on the system vendor to assist them to upload the data strings. No roadmaps have been submitted to the provincial treasury.

North West:

  • Rustenburg, Ditsobotla, Dr Ruth SegomotsiMompati, and Greater Taung Municipalities all changed their systems and are still busy with the migration to the new system, which impacts on reporting and credibility of information.
  • Mamusa – political and administration leadership challenges (municipality was recently dissolved and went to had a by-election and the CFO and MM are both suspended) and a lack of capacity in finance department impact on the implementation of mSCOA.
  • Ngaka Modiri Molema Municipality is highly dependent on the system vendor to such an extent that the vendor and not officials are capturing the information on the system and generating the data strings.

No road maps have been submitted by any of the North West non-complying municipalities and the Provincial Treasury is following up on this.

Northern Cape:

  • Richtersveld Municipality: Due to capacity constraints, a lack of knowledge on mSCOA and their own financial system, the budget and reports are prepared out of the system and then given to the system vendor to import on the system.
  • David Kuiper Municipality: Due to system related challenges and a lack of knowledge on mSCOA and their own system, the municipality has decided to change to another system and is busy with the Section 33 process in this regard.

No road maps have been submitted by these non-complying municipalities.

24 August 2020 - NW1336

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Brink, Mr C to ask the Minister of Finance

In respect of draft contracts published for comment by municipalities in terms of section 33 of the Municipal Finance Management Act, No 56 of 2003, in the 2018-19 municipal financial year, (a) on which draft contracts identified by the relevant municipality and/or the parties to the contract did the National Treasury give adverse comments and/or ask clarity-seeking questions, (b) what was the essential reason for the adverse comments and/or the clarity-seeking question in each case and (c) which of the specified draft contracts were subsequently concluded by the relevant municipal councils unamended and/or without answers to clarity-seeking questions by the National Treasury?

Reply:

a) Section 33 of the MFMA requires a municipality to amongst others, solicitthe views and recommendations of the National Treasury and the relevant provincial treasury. Treasuries generally reviewmatters of compliance with the MFMA, processes followed, contents of draft contracts, supply chain management, alignment of resources and future obligations, as well as processes of consultation with the public and transparency principles. Draft contracts are reviewed to advise municipalities that contract management are aligned to the provisions in terms of section 116 of the MFMA. No adverse comments were raised on any of the draft contracts received during the 2018/19 financial year.

b) There were no adverse comments on the draft contracts. Comments were more for the municipal officials and council’s consideration prior to approval.

c) We do not maintain records of contracts entered intoafter the conclusion of the comment process.No further processes were followed, since the MFMA requires such contracts to be made public on municipal websites to maintain the accountability and transparency principles.

24 August 2020 - NW1537

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Hill-Lewis, Mr GG to ask the Minister of Finance

Whether, with reference to the announcement by the Member of the Executive Council for Health in KwaZulu-Natal on 2 June 2020 that the province had received an additional R1,5 billion allocation from the Government for the quarantine and isolation site that the province established at the Clairwood Hospital in Durban, any other province has received any similar additional allocations from the Government; if not, why not; if so, what are the relevant details in each case?

Reply:

  • In terms of Treasury Regulations section 6.6.3, the relevant Provincial Treasury must table an adjustments budget within 30 days of the tabling of the National Adjustments Budget. Therefore, Provinces have until the 24thJuly 2020 to table their adjustments budget, and the requested information will only be available then. This information should be obtained directly from Provinces as the responsibility to determine specific provincial allocations for quarantine and isolation sites vest with each province in terms of their own budget determination processes.

24 August 2020 - NW420

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Schreiber, Dr LA to ask the Minister of Finance

(1)(a) On what legal basis does the Government Employees Pension Fund (GEPF) administer the Associated Institutions Pension Fund (AIPF) and (b) what measures have been put in place to ensure that the funds of the AIPF are safeguarded and managed transparently in the interests of its members; (2) what are the reasons that the GEPF does not currently have a Board of Trustees in place?

Reply:

1. (a) The Government Employees Pension Fund (GEPF) does not administer the AIPF. The AIPF is administered by the Government Pensions Administration Agency (GPAA), a government component in terms of the Public Service Act, 1994, and as provided for in Government Gazette No.33051 of 26 March 2010 which specifically establishes the GPAA for the purposes of the administration of, inter alia, the AIPF.

(b) The Director-General of the National Treasury is responsible for the business of the fund. The funds of the AIPF are invested via the Public Investment Corporation (PIC) in terms of an approved investment mandate.

(2) The GEPF currently has a fully functional Board of Trustees in place and has had such a Board of Trustees in place since 2005 already.

24 August 2020 - NW1337

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Brink, Mr C to ask the Minister of Finance

(1) In light of the reply of the Minister of Justice and Correctional Services to question 478 on 9 June 2020 regarding the number of prosecutions instituted and convictions secured under section 173 of the Municipal Finance Management Act (MFMA), No 56 of 2003, (a) what support does the National Treasury currently give the SA Police Service (SAPS) and the National Prosecuting Authority to and prosecute offences under the MFMA and (b) will he, on his own or in co-operation with the Minister of Cooperative Governance and Traditional Affairs, consider appointing a dedicated team of officials to assist SAPS and the National Prosecuting Authority to obtain evidence in support of prosecutions under the MFMA?

Reply:

a) The National Treasury provides support and training to both NPA and SAPS with regard to interpretation of MFMA, PFMA and related Treasury regulations through the Office of the Accountant-General (OAG). The support and training provided assistthese law enforcement agencies to develop relevant investigation plans and approaches to their cases. The OAG also provides technical expertise on the legislation and related prescripts.

b) The National Treasury already has the Specialised Audit Services unit which works in collaboration with and gives support to the law enforcement agencies on MFMA cases.

24 August 2020 - NW1210

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Joseph, Mr D to ask the Minister of Finance

(1)What are the details of the mismanagement case that was mentioned during the presentation made by the Land Bank to the Standing Committee on Appropriations on 20 May 2020; (2) whether the mismanagement case was brought to the attention of the (a) board, (b) chief executive officer, (c) chief financial officer and (d) Standing Committee on Public Accounts (SCOPA); if not, why not in each case; if so, what are the relevant details in each case; (3) (a) in which financial year did the mismanagement incident take place and (b) what was the financial impact in respect of monetary value, equipment and/or land; (4) were any of the Land Bank officials involved in any manner; if so, what are the relevant details; (5) by what date will Parliament, the Portfolio Committee on Finance and SCOPA receive the final report?

Reply:

We have no recollection of mention being made during the briefing by a representative of the Bank of any instance of mismanagement. What we are able to confirm is that the Chairman of the Board, Mr. Moloto, did say, in response to a suggestion that the Bank’s liquidity challenges may have been attributable to corruption, that the Land Bank prides itself on the governance processes in place and that in the face of any corporate governance lapses, the Board does not hesitate to take disciplinary action and dismiss individuals where necessary. He emphasised that the Land Bank prides itself in maintaining the highest ethical standards.

We would much appreciate it if you could furnish us with specifics as to what may have been said by representatives of the Land Bank which led to this enquiry so that we can accurately respond to the question.

24 August 2020 - NW1426

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Schreiber, Dr LA to ask the Minister of Finance

(1)What is the total cumulative amount of money spent on bailouts for state-owned entities since 27 April 1994; (2) whether he will provide a breakdown of the amount spent annually on bailouts for state-owned entities during each financial year since 27 April 1994; if not, why not; if so, what are the relevant details; (3) whether he will provide a breakdown of the total cumulative amount spent on bailouts for Eskom, SA Airways, Denel, the Passenger Rail Agency of South Africa, PetroSA, the SA Broadcasting Corporation, SA Post Office and Transnet since 27 April 1994; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

1. The total cumulative amount of money spent on state-owned entities (SOE)recapitalisations and bailouts from 2000/01 to 2019/20 is R187.4 billion. The information was derived from the ENE databases for the years where the classification was clearly indicated and is thus, at this stage, not available from 27 April 1994.Furthermore, National Treasury followed Standard Chart of Accounts (SCOA)[1] economic classifications in compiling the data and focused on the classification for “payment of financial assets”, this excludes indemnities, guarantees and other contingent support provided to SOEs during this time that may be interpreted as a bailout.

2. The breakdown of amounts spent annually on bailouts andrecapitalisations from 2000/01on SOEsis provided in annexure A. At this stage the information is not available dating back to 27 April 1994.

3. The breakdown of the total cumulative amount spent on bailouts and recapitalisations to Eskom, South African Airways, Denel, South African Broadcasting Corporation, South African Post office and South African Postbank from 2000/01 to 2019/20 is included in Annexure A.At this stage the information is not available dating back to 27 April 1994.

 

 


[1]Standard Chart of Accounts (SCOA) is used by departments and provinces to classify their transactions

 

24 August 2020 - NW1512

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George, Dr DT to ask the Minister of Finance

Whether, with regard to regulation 28 of the Pension Funds Act, Act 24 of 1956, investment infrastructure will be listed as an asset class; if not, why not; if so, (a) what limit will be imposed and (b) will investment in this asset class be prescribed?

Reply:

National Treasury has received a number of requests from industry and individuals for amendments to Regulation 28 of the Pensions Fund Act no 24 of 1956, including to specifically accommodate infrastructure assets. At the moment, infrastructure assets are spread over a number of assets classes like equity, private equity and bonds, making it difficult to quantify and identify them specifically. National Treasury is therefore considering whether the regulations should differentiate between infrastructure assets, green bonds, etc. from other assets.

The National Treasury has therefore commenced a process to review whether the current Regulation 28 of the Pension Funds Act No. 24 of 1956, adequately allows retirement funds to invest in infrastructure. Once the review is completed, the Minister of Finance will make an appropriate announcement, expected to be no later than the coming Medium Term Budget Policy Statement 2020.

(a) Current limits that apply under Regulation 28 will be part of the review, and hence any changes to current limits will only be determined after the review is completed.

(b) No. Regulation 28 places upper limits on what proportion of a portfolio may be allocated in various asset classes. There is no need to prescribe investment in any asset class because the board of directors (also known as trustees) of retirement funds have a fiduciary duty to the fund and its members and therefore, need to assess the riskiness of any asset class on their own in order meet their investment mandate to members.

24 August 2020 - NW1310

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Groenewald, Mr IM to ask the Minister of Finance

(1)Whether, with reference to the negative economic impact of the Covid-19 pandemic on communities at large, the National Treasury is considering measures to assist municipal ratepayers and/or recommending any prescripts for municipalities to this effect; (2) whether he will make a statement on the matter?

Reply:

1. National Treasury does not recommend that municipalities provide relief from property rates beyond what is already provided for in existing municipal policies (such as exemptions for indigent households). Municipalities face lower revenues due to a combination of lower demand for services such as electricity and water, and significantly higher non-payment rates for municipal bills. At the same time, they are faced with additional costs in responding to the pandemic. This would not be an appropriate time for municipalities to reduce their property rates.

2. The Supplementary Budget Review tabled on 24 June 2020 discussed the decline in municipal revenue collection and noted that, “The extent to which municipal bills are paid in the months ahead will depend on the duration of restrictions on economic activity, the pace of recovery and the application of revenue collection measures.” No further statements on municipal revenue collections as they relate to the COVID-19 pandemic are planned at this stage.

24 August 2020 - NW376

Mohlala, Mr M to ask the Minister of Finance

What amount has he found would the Government save if (a) Ministers, (b) Deputy Ministers, (c) Members of the Executive Council and (d) senior managers in (i) national and (ii) provincial government flew economy class when executing their official duties?

Reply:

The information provided on this response is based on data provided by SAA and BA (two of the airlines that provides Business Class Cabins in the country).

The following assumptions apply:

  1. The values are total Rand value and total number of single trips (legs) for calendar year 2019.
  2. The values include all government institutions that uses the government deal codes as per the National Treasury’s centrally negotiated discount rates (including Parliament).
  3. The data provided was not provided per individual (compliance to POPI Act), hence only total amounts are used.
  4. The values exclude other domestic and international airlines. The data is not readily available.
  5. SAA Economy class Average Price per Ticketwas calculated based on the average price of full Y-class tickets on all the routes. (R6181.00)
  6. The values are exclusive of airport taxes and inclusive of VAT

Observations

If all Business Class tickets for 2019 were to be converted to Full Y Economy class tickets, on the two mentioned airlines only, Government could have saved R12 672 956.

 

COST ANALYSIS FOR FLYING BUSINESS CLASS COMPARED TO ECONOMY CLASS

 

British Airways

South African Airways

 

Total cost (2019)

Total # Legs

Average price per ticket per leg

Total cost (2019)

Total # Legs

Average price per ticket per leg

Business Class

R23 676 021

8967

R2 640

R83 320 961

12873

R6 473

Economy Class (Full Y)

R53 511 915

32509

R1 646

*

*

R6 181

Difference between Business Class and Economy class ticket

 

 

R994

 

 

R292

Estimated saving per Airline

 

 

R8 915 759

 

 

R3 757 196

Total Estimated Saving

R12 672 956

 

Notes:

 

 

 

 

 

 

* Not provided

 

 

 

 

 

Conclusion

The pronouncement made by Minister of Finance to cut Business Class travel will yield the desired outcome.

24 August 2020 - NW606

Profile picture: Groenewald, Mr IM

Groenewald, Mr IM to ask the Minister of Finance

(1)Whether the National Treasury monitors the maintenance of asset registers of municipalities; if not what is the position in this regard; if so, what number of municipalities in each province have (a) asset registers that are (i) up to date and (ii) not up to date and (b) no asset registers; (2) whether he will make a statement on the matter?

Reply:

1. The National Treasury monitors the submission of municipal asset registers together with the annual financial statements, each financial year.

a)  The Honourable Member to note that whilst municipalities are required to record movements of assets on an ongoing basis as part of their recording and accounting process, for acquisition, upgrading or disposal. Theseare generally checked annually, when the Annual Financial Statements are prepared. Since the introduction of Generally Recognised Accounting Practices (GRAP), we have consistently encouraged municipalities to undertake this reconciliation on an in-year basis.

b) All 257 municipalities have asset registers as they are all reporting in terms of the GRAP standards.

2. Each municipality, through the Accounting Officer, is responsible for the management, safeguarding and maintenance of assets, as contained in section 63 of the Municipal Finance Management Act (MFMA), Act 56 of 2003. To assist municipalities in complying with this provision, the National Treasury has issued frameworks, guidelines, circulars, tools and conducted training on asset management, accounting and reporting thereof. The National Treasury has also rendered additional support to municipalities on asset management. The strength of a municipality’s asset management practices (including the completeness of its asset register) is measured by the quality of the information reported in its annual financial statements, which is also audited by the Auditor-General.

24 August 2020 - NW1155

Profile picture: Wessels, Mr W

Wessels, Mr W to ask the Minister of Finance

(1)Whether the National Treasury purchased any goods and/or services below the amount of R500 000 connected to the Covid-19 pandemic; if not, what is the position in this regard; if so, what (a) is the name of each company from which the specified goods and/or services were purchased, (b) is the amount of each transaction and (c) was the service and/or product that each company rendered; (2) whether there was any deviation from the standard supply chain management procedures in the specified transactions; if so, (a) why and (b) what are the relevant details in each case; (3) what were the reasons that the goods and/or services were purchased from the specified companies; (4) whether he will make a statement on the matter?

Reply:

1. The department procured the following goods and services connected to the Covid-19 pandemic.

(a)

Name of company

(b)

Amount

Method of procurement

(c)

Service and/or product that each company rendered

Lechoba Medical Technologies

R182 263.50

Three quotations

Hand sanitizers

Masana Hygiene Services

R156 302.26

Three quotations

Hand sanitizers liquid dispensers

 

R121 446.00

Three quotations

Building decontamination

 

R3 801.00

Three quotations

Building decontamination

 

R10 500.00

Three quotations

Building decontamination

Nesoscope Holdings (Pty) Ltd

R54 275.88

  1. Emergency deviation on existing contract

Surface sanitizers

MPM Enviro Enterprise

R293 250.00

Three quotations

N95 masks and latex gloves

Class Three Medical Solution

R12 128.82

Three quotations

Thermometers

Tsuamo Civils (Pty) Ltd.

R9 000.00

Three quotations

Building decontamination

 

R1 900.00

1 quotation amount below R2000.00 SCM threshold

Building decontamination

 

R75 950.00

  1. Emergency deviation memo approved

Building decontamination

 

R80 850.00

Three quotations

Building decontamination

Khulanathi Black Ginger

R135 125.00

Three quotations

Cloth masks reusable

Benixo Utility Services

R98 640.00

Three quotations

Building decontamination

Techcon Systems Pty Ltd

R332 062.50

Three quotations

Rental, supply, installation, replenishing and maintenance of foot operated hand sanitizer dispensers.

TOTAL

R1 567 494.96

   

2. Two emergency deviations were approved.

(a) Immediate sanitization of all surfaces, kitchens, utensils, door handles on regular basis to prevent infections. This was done by the incumbent service provider.

(b)The department experienced positive Covid-19 cases. The building had to be evacuated and there was an urgent need to decontaminate buildings immediately.

(3) The Department’s COVID-19 Committee established the need for the goods and services to manage and contain the spread of infections.Request for quotations were issued to various companies and lowest quotations were accepted in each instance.

(4) N/A

24 August 2020 - NW1184

Profile picture: Hill-Lewis, Mr GG

Hill-Lewis, Mr GG to ask the Minister of Finance

What amount of funding did the National Treasury allocate to each province to support their responses to Covid-19?

Reply:

An initial payment to support provinces in responding to the COVID-19 pandemic was made at the end of the 2019/20 financial year (before the full magnitude of the pandemic and its impacts was known). Details of further allocations and reprioritisations for the COVID-19 response in the 2020/21 financial year will be published when the Minister of Finance tables a supplementary adjustment budget on 24 June 2020.

On 25 March 2020, National Treasury approved the release of the amounts shown in Table 1 to provinces from the 2019/20 allocation for the Provincial Disaster Relief Grant. These funds were transferred to provinces by the National Disaster Management Centre to fund the initial costs of purchasing additional personal protective equipment and other medical equipment needed by provincial health departments to respond to the pandemic.

Table 1: Provincial Disaster Relief Grant allocations, 2019/20

R'000

2019/20 allocations

Eastern Cape

44 551

Free State

12 429

Gauteng

115 996

KwaZulu-Natal

138 918

Limpopo

42 449

Mpumalanga

33 993

Northern Cape

6 224

North West

18 540

Western Cape

53 292

Total

466 392

24 August 2020 - NW853

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George, Dr DT to ask the Minister of Finance

What (a) number of companies and businesses in each province have made use of and/or benefited from the tax deferral measures announced on 23 April 2020 and (b) was the Rand value of the tax deferrals in each province?

Reply:

a) 8 957 taxpayers requested PAYE Tax Deferments thus far and 4 taxpayers requested deferrals of excise duties.

b) The rand value for the PAYE Tax Deferments is R334m.

Deferral for the payment of excise duties on alcoholic beverages and tobacco products

Excise duties on alcoholic beverages and tobacco products are payable by manufacturers and the liability for excise duty is assessed and collected on a Duty at Source (DAS) basis - i.e. as close as possible to the point of domestic manufacture when goods achieve their excisable character or the point of importation of similar excisable products.

The liability to account for excise duties and the payment thereof therefore rest with the manufacturer with payment periods following the end of the accounting month ranging from 30 to 130 days depending on the product and the period between the time of manufacture and final sale.

The outbreak of the COVID-19 pandemic resulted in the President declaring a national state of disaster and instituting a nation-wide lockdown with effect from Thursday, 26 March 2020. As a result, the sale of alcoholic beverages and tobacco products was first restricted and has since been prohibited.

In order tominimise cash flow difficulties for the manufacturers of alcoholic beverages and tobacco products, the revised Disaster Management Tax Relief Bill, 2020 proposes that the manufacturers in these industries continue to submit their excise duty accounts on time but that the payments due to SARS be deferred for a period of 90 days without incurring interest or penalties.

Manufacturers will qualify for such deferment provided they have no outstanding excise accounts or payments unless an arrangement has been made for such payments. The proposed deferral, as set out in the proposed amendments to Rule 19A.11 to the Customs and Excise Act No. 91 of 1964, will apply to payments due in the months of May and June and will be for a period of 90 days.

The table below provides the detail of tax deferral measures approved to date in this regard.

Table A: Tax deferral measures relating to the payment of excise duties on alcoholic beverages and tobacco products

Province

Taxpayers Approved

Amounts deferred

Gauteng

1

R546 000 000

KwaZulu Natal

1

R933 000 000

Western Cape

2

R1 073 659 864

24 August 2020 - NW1772

Profile picture: Opperman, Ms G

Opperman, Ms G to ask the Minister of Finance

(1)Whether he has found that municipalities who are currently and/or were previously under section 139 administration are now better off than they were previously with regard to the purpose of the specified intervention; if not, what is the position in this regard; if so, did the intervention by the National Treasury solve the problem; (2) whether he will furnish Mrs G Opperman with a detailed progress report regarding municipalities that were under the administration of the National Treasury?

Reply:

1. Interventions in terms of S139 of the Constitution are invoked by the Provincial Executive and not directly by any National Government department, unless, there is a failure by the Provincial Executive to act, then the National Executive may intervene in terms of Section 139(7) of the Constitution. This subsection however, is not applicable to all interventions in terms of S139 of the Constitution.

Research into the efficacy of S139 interventions undertaken by the Public Affairs Research Institute on behalf of the National Treasury in 2018, showed that S139(1) interventions often fail to achieve their intended outcomes for a number of reasons. Amongst others, these reasons include, that interventions are often invoked using the wrong subsection of S139. In this regard, where there is clear evidence of a financial crisis and for which a mandatory intervention in terms of S139(5) is required, the Province elects to invoke a S139(1) intervention which is discretionary in nature and intended to remedy a failure to fulfil an executive obligation. The constant practice of “mismatching” interventions and problems results in failed outcomes.

Interventions, are also invoked too late, well after municipal failure is a fait accompli and are terminated too early before the intervention has dealt with all dimensions of the problem. The use of an administrator has also been found to have little effect on improving outcomes. Administrators should firstly only be appointed upon dissolution of Council; most administrators lack requisite qualifications thus incapable of solving municipal problems singlehandedly. Even where administrators may be competent and suitably qualified, a further impediment to successful outcomes are the threats that are often made by corrupt and unethical official and local politicians on the administrator’s lives.

Other reasons for failure include municipal officials who are often unwilling to cooperate with the intervention teams, the terms of reference for the administrator are often not specified upfront making it difficult to determine whether or not the objectives of the interventions were attained, the interventions generally lacked substantive-ness and in many cases the root cause of the problem is never dealt with adequately. A number of municipalities met the criteria for S139(5) – financial crisis intervention - but these interventions are seldom invoked by Provincial Executives.

In summary, the history of interventions to date point to a number of failures – people, process, political, timing related and therefore interventions have not been successful in addressing municipal dysfunction. However, the experience of the Oudtshoorn Municipality in the Western Cape is an exception in this regard and is due to a concerted effort on the part of senior managers in the municipality to repair the institution.

No intervention in terms of S139(7) of the Constitution has been invoked yet and therefore National Treasury has not had the mandate to intervene directly in a municipality.

2. As indicated in the above response, S139 interventions are invoked by the Provincial Executive and records of interventions of these interventions should be maintained nationally by the Department of Cooperative Governance. National Treasury does not have detailed records of these interventions but can furnish copies of financial recovery plans prepared for those municipalities where the Municipal Finance Recovery Service unit has rendered assistance in this regard. We will provide copies upon request of all active financial recovery plans that the MFRS unit is currently monitoring on a monthly basis.

24 August 2020 - NW397

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Van Minnen, Ms BM to ask the Minister of Finance

What remedial processes have been put in place to deal with the consecutive disclaimers in the (a) Bojanala Platinum District Municipality, (b) Ngaka Modiri Molema District Municipality, (c) Madibeng Local Municipality and (d) Mamusa Local Municipality in the North West?

Reply:

The Honourable Member to note that the National Treasury, in consultation with the Provincial Treasury, had provided support to three of the four municipalities, as required by the Municipal Finance Management Act. Support is provided to those municipalities that commit to implementing the reforms required to address the audit findings. The time required to address all of the institutional, governance, and administrative weaknesses go beyond one financial cycle.

Moreover, the full commitment of both the municipal council and its administration is required to address the negative audit findingsas the primarily responsibility and accountability resides with the municipality.

Therefore, the support included a reviewing and revision of support plans for the financial management grant programme, rendering of technical support through audit specialists, assistance in the development and reviews of audit action plans,capacity building of internal audit units, audit committees and municipal officials to address audit findings. Additional support was provided to review the draft annual financial statements, supporting audit files, correction of previous technical errors, assistance in responding to audit findings, and appropriate responses. The following details relate to the support provided to the municipalities mentioned above.

a) Bojanala Platinum District Municipality

The following support was provided:

  • Reviewed the post audit action plan and annual financial statements (AFS) preparation plan and schedule. 
  • Meetings with Management to discuss AFS preparation plan and adviceon audit preparation.
  • Reviewed interim financial statements.
  • Escalated initiatives for training to address irregular expenditure. 
  • Reviewed prior period error note on draft financial statements and submitted recommendations.
  • Advised training and capacitation of internal audit unit. 

b) Ngaka Modiri Molema District Municipality

Thefollowing support was provided:

  • Reviewed the post audit action plan and provided feedback to the municipality.
  • Advised the CFO and internal auditor on AFS readiness.
  • Reviewed and provided feedback on AFS preparation. 
  • Followed up on progress made in addressing common audit findings pertaining to roads and water services that had an impact on local municipalities in the district.
  • Supported the municipality at audit steering committee meeting with the Auditor-General  

c) Madibeng Local Municipality

The following support was provided:

  • Reviewed the post audit action plan and provided feedback to the municipality.
  • Attended audit steering committee meeting to render advice. 
  • Advised the municipality on tracking and maintaining records, and copies of documentation required for audit purposes.  

d) Mamusa Local Municipality

The National Treasury could not provide support to this municipality due to institutional instability which was referred to the province for further intervention.

In conclusion, the Honourable Member could request the Legislature to perform additional oversight, especially to all those municipalities that received a disclaimer or an adverse audit opinion, to ascertain progress made and consequence measures taken.

24 August 2020 - NW1689

Profile picture: Opperman, Ms G

Opperman, Ms G to ask the Minister of Finance

(1)What measures has the National Treasury put in place to assist municipalities to curb irregular expenditure, which amounted to almost half of the appropriation received by local government in the 2018-19 municipal financial year; (2) whether he has found that the high amounts of irregular expenditure incurred by municipalities was as a result of (a) capacity problems and/or (b) a general disregard of internal controls?

Reply:

1. The Honourable member to note that the numbers quoted also contain historical amounts that have not been dealt with effectively by Municipal Councils as prescribed. The irregular expenditure for the 2018/19 financial year was R21.5 billion and is concerning. Our analysis points to the main cause for irregular expenditure being non-compliance with Supply Chain Management (SCM) processes and procedures. The National Treasury has issued MFMA Circular 81, which introduced the Central Suppliers Database that requires all suppliers to be registered on the database. The database interfaces with the South African Revenue Services, the Companies and Intellectual Property Commission and government’s payroll system.  The system verifies supplier’s tax and BEE status, and enable public sector officials doing business with the state to be identified. Thus, if used correctly, these proactive measures will contribute to the reduction of incidencesof irregular expenditure.

Moreover, the National Treasury in conjunction with the Department of Cooperative Governance developed the Municipal Public Accounts Committee (MPAC) Guideline and Toolkit which aim is to amongst others, assist MPACs to perform their oversight responsibilities in relation to irregular expenditure and make appropriate recommendations to the municipal council for resolution either to write-off or recover such expenditure, based on investigations. This guide was supported by MFMA Circular 92 which assists in effective functioning and decision-making by councillors serving on MPAC. This will assist municipalities to correctly address the irregular expenditure consistent with section 32 of the MFMA. In addition to this, the National Treasury also issued MFMA Circular 68 which further seeks to guide MPACs on the procedural aspect in relation to processing irregular expenditure.

2. (a) It has become apparent that some municipalities did not have the appropriate capacity, process or procedures to attend to the requirement as regulated. Some did not properly constitute its bid adjudication committee (BAC) as required in terms of regulation 29 of the Municipal SCM Regulations, which contributed to the root causes, besides internal control weaknesses.Inotherinstances, municipalities’ organisational structures were not appropriately established.After considerable engagements, a ministerial exemption was granted to municipalities that allowed for theco-optingof officials from neighbouring municipalities to assist with the compositionof the BAC. This measure will contribute to reducing the irregular expenditure in the coming financial years.

In recognising the capacity challenges, the National Treasury is currently finalising a project on the standard operating procedures for SCM which will provide step-by-step assistance to SCM officials to perform recurring activities through execution of specific tasks.

(b) The National Treasury and provincial treasuries will continue to support and capacitate municipalities in improving its internal control measures;however, it is the responsibility of municipalities to prevent and thus curb irregular expenditure by implementing corrective actions.

24 August 2020 - NW1558

Mokgotho, Ms SM to ask the Minister of Human Settlements, Water and Sanitation

With regard to the provision of water tanks, mobile toilets and the de-densification and/or reblocking programme that she announced, (a) what number of (i) water tanks and/or (ii) mobile toilets are allocated to Gauteng, (b) what is the role of (i) her department and (ii) municipalities, particularly in Tshwane, regarding the provision of the specified ablution and water facilities, (c) what number of communities and/or informal settlements that have been identified will benefit from the programme and (d) how were the specified communities and/or informal settlements identified?

Reply:

  (a) (i) 3 241 Water Storage Tanks have been allocated to the Gauteng Province.

 (ii) 3 128 mobile toilets have been allocated to the Gauteng Province.

  (b) The provision of Human Settlements is a concurrent function between National, Provincial and Local Governments. The National Government is, amongst others, responsible for developing policies, programmes, implementation guidelines and the disbursement of grant allocations. The provincial and local spheres of government are inter alia charged with implementing human settlements programmes through targeted projects. The National Department of Human Settlements is working in close collaboration with the Gauteng Province, the Cities of Tshwane, Ekurhuleni and Johannesburg in response to the COVID-19 pandemic to ensure that urgent provision is made for the upgrading of informal settlements, which includes the de-densification and decontamination of identified overcrowded areas. The collaboration also ensures that households and individuals living in informal settlements, backyard dwellings and hostels, have access to potable water, ablution facilities, healthcare services, and are trained on maintaining the relevant hygiene practices and all other protocols related to COVID-19.

The Department of Water and Sanitation is responsible for ensuring water security for the whole country. This includes ensuring that water as a resource is allocated equitably and used beneficially in the public interest, while promoting environmental values. Schedule 4B of the Constitution places the function of provision of water services at local government (municipalities). In accordance with the Water Services Act, 1997, which regulates municipal water supply and sanitation services, municipalities deemed to be Water Service Authorities are responsible for ensuring that the right of access to basic water supply and sanitation which mandates that “everyone has a right of access to basic water supply and basic sanitation” is realised. Further, Section 11 of the Water Services Act mandates that “every Water Services Authority has the duty to all consumers or potential consumers in its area of jurisdiction to progressively ensure efficient, affordable, economical and sustainable access to water services.”

The City of Tshwane, like all other municipalities in the province, continues to provide rudimentary services in informal settlements and is also responsible for the delivery of:

    • 252 (10 000 litre capacity) mobile water tankers
    • 492 (5 000 litre capacity) water tanks

The National Department of Water and Sanitation provided:

  • 3 (18 000 litre capacity) mobile water tankers
  • 407 (5 000 litre capacity) water tanks
  • 114 (10 000 litre capacity) water tanks
  • 37 (2 500 litre capacity) water tanks which were distributed to various regions.

There are forty seven (47) water tanks that were distributed and are operational in thirteen schools at Hammanskraal in Region 2, Lethabong in Region 5, Kanana in Region 6 and Sokhulumi in Region 7.

In total, there are 492 operational water tanks provided by the City of Tshwane, 457 operational water tanks provided by National Department of Water and Sanitation and 18 operational water tanks donated by other organisations which make a total of 967 operational water tanks.

The City of Tshwane delivered the following sanitation services in its informal settlements:

  • a total of 3 935 out of 5 128 chemical toilets have been delivered
  • the balance of 1 193 will be delivered in due course

(c) It is envisaged that 16 000 households will benefit from the Upgrading of Informal Settlements Program which includes de-densification- Beneficiaries will either receive Temporary Residential Units (TRUs) or Permanent Housing Units in their current settlements or be relocated as a last resort.

(d) Informal Settlements prioritised for upgrading and or de-densification to promote social distancing practices are identified on the basis of the levels of overcrowding and inadequate provision of basic services.

The targeted overcrowded areas in the province are Alexandra, Ivory Park, Diepsloot, Zandspruit, Khutsong, Pretoria West Informal Settlements, Mamelodi Phomolong Informal Settlements and Mamelodi Hostels. Other areas are likely to be added, depending on the availability of resources.

The land earmarked for de-densification purposes is identified on the basis of proximity to the affected overcrowded informal settlements or spaces. State-owned, which includes municipal-owned land is preferred.

To date, 403 households have been relocated from Khutsong informal settlement into completed housing units at Elijah Barayi Mega Project under the Merafong Local Municipality.

24 August 2020 - NW866

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Abrahams, Ms ALA to ask the Minister of Defence and Military Veterans

(1)Whether her department will offer any form of Covid-19 financial and/or other relief to small businesses; if not, why not; if so, what are the relevant details; (2) whether the Covid-19 financial and/or other relief will only be allocated to qualifying small businesses according to the Broad-Based Black Economic Empowerment Act, Act 53 of 2003, as amended; if not, what is the position in this regard; if so, (a) on what statutory grounds and/or provisions does she or her department rely to allocate Covid-19 financial or other relief only to small businesses according to the specified Act and (b) what form of Covid-19 financial or other relief, if any, will be made available to other small businesses?

Reply:

(1) The Department will not offer any form of COVID-19 relief to small businesses, as its Departmental mandate is on Defence of the RSA, and the function does not include funds or resource allocation to businesses.

(2) (a) The Department provides small business the opportunity to supply the Department with goods and services as required. BBBE companies are also assisted in respect of compliance to National Treasury Regulations and other legislative prescripts. (b) No Covid-19 financial and/or other relief will be made available to small businesses in line with the answer provided in paragraph (1) above.

24 August 2020 - NW1118

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Horn, Mr W to ask the Minister of Justice and Correctional Services

Whether he has considered the parole application of a certain person (details furnished); if not, what is the position in this regard; if so, what was the outcome of his consideration?

Reply:

Yes, the Minister has considered the offender’ profile for possible placement on parole wherein he approved that the profile of offender Nxumalo be submitted for reconsideration after 31 January 2022.

In the interim the offender will be subjected to the following interventions:

  • The offender to undergo insight orientated psychotherapy to deal with his anti-social personality disorder and loss of his mother;
  • A risk assessment by a non-treating psychologist to be conducted;
  • The offender to be encouraged to improve his vocational skills to assist him with prospects of obtaining employment once he is placed on parole.

END

24 August 2020 - NW1229

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Mey, Mr P to ask the Minister of Human Settlements, Water and Sanitation

(1)Whether her department purchased any goods and/or services below the amount of R500 000 connected to the Covid-19 pandemic; if not, what is the position in this regard; if so, what (a) is the names of each company from which the specified goods and/or services were purchased, (b) is the amount of each transaction and (c) was the service and/or product that each company rendered; (2) whether there was any deviation from the standard supply chain management procedures in the specified transactions; if so, (a) why and (b) what are the relevant details in each case; (3) what were the reasons that the goods and/or services were purchased from the specified companies; (4) whether she will make a statement on the matter?

Reply:

DEPARTMENT OF HUMAN SETTLEMENTS:

The National Department of Human Settlements purchased goods and/or services below the amount of R 500 000 connected to the Covid-19 pandemic as indicated below:

Order number

(b)Transaction amount

(c)Service/or product

Deviation

DH-026965

R 8 000.00

Empty Plastic bottles

No

DH-026966

R 25 400.00

Hand Sanitizers

No

DH-026967

R 82 400.00

Cloth Face Masks

No

DH-026968

R 104 550.00

Covid -19 Tests

No

DH-026970

R 174 464.00

Deep cleaning and sanitizing of buildings( 240 JMS; 260 JMS and Struktura)

No.

DH-026980

R 78 000.00

Face Shields

No

DH-026982

R 8 250.00

Foot Operated Hand Sanitizer Stand

No

DH-027009

R 4 800.00

Hand Sanitizers

No

DH-027017

R 41 000.00

Hand Sanitizers

Construction gloves

Face Shields

Cloth Face masks

No

P No. 2420131

R 38 812.50

Hand Sanitizers

Sanitizer Dispensers

No

P No. 2420302

R 77 833.00

Nurses appointed to screen employees and visitors

Yes (only two quotations were received).

P No. 2419856

R 242 213.00

Disinfect the DHS buildings for Covid -19 and fumigation of pests.

No

P No. 2419679

R 31 500.00

Face masks and surgical gloves

No

P No. 2419632

R 1 998.00

Thermometers

No

P No. 2419632

R 2 940.70

Surgical masks 3 ply

No

P No. 2419393

R 1935.00

Disinfecting wipes

No

P No. 2419393

R 1 527.60

Sterile gloves

No

P No. 2419393

R 2 491.95

Hand sanitizers

No

P No. 2419393

R 1 981.20

Hand sanitizers and wipes

No

(2)

(a) Yes, there was a deviation concerning the procurement of nursing services as shown in the table above. 

(b) There were no service providers/agencies registered in the National Treasury Central Supplier Database for the supply of nursing services. The Department of Human Settlements identified three agencies, (i.e. Mab Agency; Mednurse and Medwell). Requests for quotations were sent to the three agencies, but only two (Med nurse and Medwell) responded. A deviation was thus approved for procurement to be done based on two quotations.

(3) Goods and services were purchased from service providers with the lowest acceptable quotes. In instances where the value of goods procured was below R 2000.00, petty cash was used and therefore no requests for quotations were sent out. This practice is in line with the Supply Chain Management prescripts.

(4) My Department is available to brief the Portfolio Committee on Human Settlements, Water and Sanitation.

DEPARTMENT OF WATER AND SANITATION:

(1) The Department of Water and Sanitation (DWS) purchased personal protective equipment (PPE). The information relating to expenditure on PPE and other measures to combat the spread of Covid-19 and the suppliers where the PPE were procured from is attached as Annexure A. In addition, the various suppliers used are on the Central Supplier Database.  

(2) No, the DWS did not deviate from the standard Supply Chain Management procedures.  

(3) The reasons for procuring the goods from specific companies was to enable the department to combat the spread of the COVID-19 pandemic through:

  • Provision of PPE to employees
  • Facilitating the screening of employees at the Head office and Regional Offices
  • Disinfection of Office buildings (including Fumigation, Deep Cleaning and Fogging of offices)   

(4) My Department is available to brief the Portfolio Committee on Human Settlements, Water and Sanitation.

24 August 2020 - NW1771

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Opperman, Ms G to ask the Minister of Finance

With regard to the amended Public Audit Act, Act 25 of 2004, (a) which nine municipalities were reported to the National Treasury by the Auditor-General for further investigation due to material irregularities and non-compliance, (b) to which municipalities did the Auditor-General report to the National Treasury will certificates of debt be issued and (c) in which municipalities did the Auditor-General report to the National Treasury will binding remedial action take place?

Reply:

The Honourable Member to note that the Public Audit Act is administered by the Office of the Auditor-General who reports to Parliament.

a) The Office of the Auditor-General has advised that they are implementing the material irregular provisions at nine municipalities. This was published in their general report. However, none were referred to any public body for investigation.

b) No report was provided to National Treasury relating to certificates of debt issued.

c) No report was provided to National Treasury relating to binding remedial actions.

24 August 2020 - NW1420

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Ismail, Ms H to ask the Minister of Finance

(1)What total amount was allocated to each municipality from the Disaster Management budget; (2) (a) what total amount was spent in each municipality in each department, (b) were there any guidelines on how the budget was meant to be spent and (c) what are the details of each line item expenditure?

Reply:

1. It is not clear what the “Disaster Management budget” being referred to is. In the last quarter of the 2019/20 financial year, a total of R150.2 million was transferred to municipalities from the Municipal Disaster Relief Grant (the amount per municipality is shown in Annexure A). In addition to this, an amount of R4 billion was reprioritised for disaster response within other conditional grants already transferred to municipalities in the 2019/20 financial year. This information is also described on page 20 of the Supplementary Budget Review tabled on the 24thJune 2020.

In the 2020/21 financial year, funds are made available to municipalities to respond to the COVID-19 pandemic through an addition of R11 billion to the local government Equitable Share, and an estimated R9 billion is available to be spent on COVID-19 response activities within conditional grants. Details of this are set out in the Division of Revenue Amendment Bill, 2020, tabled on the 24thJune 2020.

(2)(a) The 2019/20 financial year only ended at the end of June 2020. Municipalities have not yet reported on their expenditure for that financial year, and audited financial information will only be available once the Auditor-General has completed their processes in auditing municipal financial statements. For amounts allocated for the current financial year, municipalities should be given an opportunity to spend the funds before they can be expected to report on how much was spent.

(2)(b) Conditions for the Municipal Disaster Relief Grant were gazetted in the Government Gazette No. 42464. The National Disaster Management Centre (NDMC) approved that receiving municipalities could spend these funds on particular activities included in the business plans submitted to them by municipalities. In approving the reallocation of funds from conditional grants to be used to respond to the disaster, National Treasury also approved specific conditions for the use of those funds that were prescribed by the Transferring Officer of each grant. Conditions of the use of grant funds in 2020/21 were gazetted in Government Gazette No.43495.

(2)(c) The same constraint in terms of the timing of expenditure information described in response to question (2)(a) applies to this question.

24 August 2020 - NW815

Profile picture: Cebekhulu, Inkosi RN

Cebekhulu, Inkosi RN to ask the Minister of Defence and Military Veterans

(1)What steps has she taken against service providers that supply the SA National Defence Force with expired food stuff for its camping soldiers; (2) whether her department will ever do business with such service providers in future; if not, what is the position in this regard; if so, why?

Reply:

(1) Yes the suppliers involved in the concealed best before date have been identified. The companies are not yet blacklisted as the legal process must first be finalised. However the Department issued the companies involved with a warning letter, and no awards/invitations for the supply of patrol ration packs have been made to these companies since the incident. The suppliers are currently barred from doing business with the Department of Defence (DOD) pending the outcome of the investigation.

(b) The matter is under investigation

24 August 2020 - NW1770

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Opperman, Ms G to ask the Minister of Finance

What (a) total amount did each municipality spend on legal fees in the 2018-19 municipal financial year and (b) portion of the specified amount was spent on conducting forensic investigations?

Reply:

a) In total, municipalities have spent R1.2 billion on legal fees in the 2018/19 financial year.

b) On forensic investigations, municipalities spent R26.5 million, however, this R26.5 million is not necessarily on legal fees. It might just be on appointments of forensic investigators (attached to this is Annexure A which llustrateshow much was paid on Legal Fees per municipality, Annexure Bwhich illustrates how much was spent per municipality on Forensic Investigations).

ANNEXURES

24 August 2020 - NW536

Profile picture: Joseph, Mr D

Joseph, Mr D to ask the Minister of Finance

(a) What number of critical posts will be filled within the National Treasury in the 2021-22 financial year, (b) which sections are seen as critical and (c) how will it enhance revenue increase to the fiscus?

Reply:

a) At the beginning of the 2020-21 financial year, National Treasury had 103 vacant positions from a staff establishment of 1076. The department is continuously recruiting for critical positions as and when approved by EXCO and replacement of new vacancies. The same process will apply in the 2021-22 financial year.

b) All the divisions within the National Treasury have identified critical posts that need to be filled.

c) National Treasury does not directly collect revenue from any taxes, as this is the responsibility of SARS. National Treasury proposes tax and other policies to generate revenue, as outlined in the annual Budget, and outlined in great detail in the Budget Review and subsequent tax legislation to give effect to the Budget. The actual administration and collection of revenue from taxes is the responsibility of SARS, which also reports to the Minister of Finance.

24 August 2020 - NW1508

Profile picture: Brink, Mr C

Brink, Mr C to ask the Minister of Finance

(1)Whether he has been informed about the letter that was allegedly written by an official of the National Treasury to the SA Local Government Association (Salga) requesting Salga to apply on behalf of municipalities for exemption from annual salary increases for municipal officials in light of the adverse financial impact of the Covid-19 pandemic (details furnished); if not, what is the position in this regard; if so, (2) whether the National Treasury sent the specified letter and/or a substantially similar request to Salga; if not, what is the position in this regard; if so, (a) what are the relevant details and (b) will he furnish Mr C Brink with a copy of Salga’s reply; (3) whether he alone and/or in conjunction with other Ministers have taken any further action to persuade municipalities to apply for such an exemption; if not, what is the position in this regard; if so, what are the further relevant details?

Reply:

1. The Director-General of the National Treasury wrote to SALGA on 10 May 2020 and noted that “In terms of the South African Local Government Bargaining Council circular number 02/2020, dated 6 March 2020, the salary and wage increase in terms of sections 6.6 and 6.8 of the Collective Agreement will be 6.25 per cent from 1 July 2020. Clearly, this is no longer affordable considering the current economic environment. The local government collective agreement further provides, in Clause 11, for applications for exemptions from any provision of the collective agreement should the agreement be unaffordable or in cases of unexpected economic hardship.” The Director-General then said that, “It is National Treasury’s view that SALGA should urgently lodge an application for exemption on behalf of all municipalities who are party to the agreement to allow for consideration before the municipal financial year commences. The specific provisions from which the municipalities should be exempted should be agreed with affected municipalities.”

(2)(a) The letter was sent to SALGA on 10 May 2020. SALGA took up the issue in the South African Local Government Bargaining Council (SALGBC) and National Treasury was subsequently invited to provide a briefing to the SALGBCon 17 June 2020. National Treasury provided the briefing as requested.

3. SALGA is the employer representative in the SALGBC and are taking the issue forward through that structure. National Treasury respects the process in the SALGBCand has no role in the process unless we are requested to provide further information or support.

24 August 2020 - NW1667

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Defence and Military Veterans

(1)Whether any legal officers have to complete so-called combat readiness training, which comprises a hike in the Drakensberg mountains; if so, (a) since what date has the specified training been a requirement, (b) how long has the training been taking place, (c) what is the goal of the training, (d) what is the relevance of such training for legal officers and (e) whether the training is a prerequisite for promotion; (2) (a) what was the (i) reason for deploying two helicopters for the training which took place from 30 June 2020 to 3 July 2020 in the Drakensberg mountains and (ii) total cost related to this deployment and (b) reason for enlisting the assistance of the hiking club from KwaZulu-Natal; (3) (a) why was the head of the legal department (name and details furnished) present and (b) if the specified person had completed the hike on a previous occasion at military cost, on what date did it take place; (4) why can legal officers not complete their training at Port St Johns in preparation for their overseas deployment; (5) whether she will make a statement on the matter?

Reply:

1. Yes.

a. Since 2017.

b. The Exercise has been taking place for over four (04) years.

c. EXERCISE MAFADI is the official Field Exercise after at the end of the Battle Handling Course for Military Law Practitioners (MLPs). It is also Combat Readiness Exercise for the Defence Legal Service Division (DLSD) in order to prepare MLPs to provide legal support to operations in terms of the Legal Support Doctrine.

d. The primary objective of the EX MAFADI is to prepare Military Law Practitioners to support internal and external operation in terms the Operations Legal Support Doctrine. To teach them their role during Joint Military Operations with other state departments, Peace Keeping Missions and during War.

The aim is also to enhance their leadership skills and to teach them other important military skills such as Navigation, Map work and Radio communication. Thereby MLPs that took part in EX MAFADI are deemed and certified Combat Ready by the Division.

e. EX MAFADI alone is not a prerequisite for promotion; Military Law Practitioners are required to attend their respective Service Promotional Courses before they can be promoted to the next rank. However, EX MAFADI is the Practical Part of the Joint Battle Handling Course (JBHC) for Junior Military Law Practitioners. Military Law Practitioners must have successfully completed the JBHC (including Ex MAFADI) before they can be considered for promotion.

2. a. (i) On 28 June 2020 a South African Air Force, Oryx helicopter from 15 Squadron, Durban was dispatched to rescue a member who had taken a fall and could not continue with the exercise. The member was airlifted taken to Greys hospital in Pietermaritzburg where she was treated for minor injuries. She has since recovered. The cost of the Oryx deployment was R 163.582.00 (R71, 123/ hour for two (2) and half hours).

On 01 July 2020 an Oryx was dispatched again to conduct a Search and Rescue Mission for members from 7 Medical Battalion Group, who were also conducting a Military Exercises in the area. (b)The Mountain Club of South Africa members were involved because of their familiarity with area. The cost of the Oryx deployment was R 284,492. (R71, 123/ hour for four hours).

3. a. EX MAFADI is a Divisional exercise therefore the Head of the Division must either command the exercise personally or delegate command to other duly qualified Officers. In this case the Adjutant General appointed all other relevant commanders such as the Exercise Commander, Company Commander and Platoon commanders and he was also present as the overall overseer to ensure that the objectives of the exercise were achieved.

b. EX MAFADI is a not a hike but a Military Exercise authorised by Defence Legal Services Division. An exercise scenario is developed to simulate a certain military problem and the exercise is conducted accordingly. All military exercises are conducted at state expense. EX MAFADI was conducted over the following time periods.

- EX MAFADI I- 15 till 21 October 2017 (Reconnaissance).

- EX MAFADI II- 27 December 2017 till 03 January 2018.

- EX MAFADI III- 28 January till 08 February 2019.

- EX MAFADI IV- 26 June till 03 July 2020.

4. EX MAFADI is the Combat Readiness Exercise for DLSD and the training at Port St Johns is the Mission Readiness Exercise for Joint Operations Division.

24 August 2020 - NW1290

Profile picture: Brink, Mr C

Brink, Mr C to ask the Minister of Finance

(1)In light of the judgment of the Eastern Cape High Court in the case of Blue Nightingale Trading 397 (Pty) Ltd t/a Siyenza Group v Amathole District Municipality (ECD 1681/15) on the proper interpretation of section 110 of the Municipal Finance Management Act (MFMA), Act 56 of 2003, read together with Regulation 32 of the MFMA: Supply Chain Management Regulations, what measures has he taken, alone or in collaboration with other Ministers, to ensure that municipalities and organs of State doing business with municipalities, comply with the specified provisions when purporting to procure goods and services under a contract secured by another organ of State; (2) whether he has been informed of any contracts concluded under these provisions afterthe Blue Nightingale judgment, that did not or do not rely on the MFMA section 110 as well as Regulation 32 of the MFMA; if so, what are the relevant details in each case?

Reply:

1. It is important to highlight that there was no relief sought against the Minister of Finance or that a finding was made against the Minister of Finance or the Regulations as administered by the Minister of Finance. After the Blue Nightingale judgement, two similar judgements were made against KwaDukuza and Mamusa Municipalities. National Treasury assessed the application of Regulation 32 by various municipalities and deemed it necessary to issue a Circular to elaborate on the principles captured in regulation 32. The Circular is available on the National Treasury website as Circular No.96 under MFMA Circulars. The Circular considered the principles in the Blue Nightingale and KwaDukuza judgements.

2. In terms of Circular No. 96, the accounting officer of the participating municipality or municipal entity must utilise the process of reporting as contained in SCM regulation 6, to also include any procurement through SCM regulation 32. The treasuries may request further information in terms of section 74 of the MFMA. The participating accounting officer must also publish the details of the participation contract award on the municipality or municipal entity’s official website in line with section 75 of the MFMA. Therefore, this information is in the public domain, however, there is no specific obligation placed on the municipality or municipal entity to report to the National Treasury or the Minister of Finance with regards to these provisions.

24 August 2020 - NW635

Mohlala, Mr M to ask the Minister of Human Settlements, Water and Sanitation

Whether she will intervene to ensure that the borehole which was constructed in Nyanyukani in the Mopani District Municipality, which does not have electricity due to non-payment of electricity to Eskom, is reconnected; if not, why not; if so, what are the further relevant details?

Reply:

Honourable Member, I have been informed that challenges relating to the borehole in Nyanyukani B have been resolved. This was confirmed after a site visit was undertaken by staff of the Department’s Regional Office in Limpopo on 11 May 2020 to the area.

The borehole in Nyanyukani B was initially connected to the community (household) electricity supply. ESKOM resolved that the borehole should have its connection where a transformer was to be installed. The Mopani District Municipality (DM) found the costs of installing transformers to all boreholes to be unaffordable and the borehole was legalized by Eskom without having a transformer.

In 2019 Eskom disconnected all boreholes in the Mopani District without transformers as they were considered to be illegally connected. The Mopani DM submitted a new electricity application for the borehole in 2019.

Upon consultation with the Mopani DM, the Department of Water and Sanitation was informed that the electricity supply to the borehole in Nyanyukani B had been restored and the borehole was back in operation.