Questions and Replies
24 May 2018 - NW168
Shivambu, Mr F to ask the Minister of Finance
(1)What (a) is the total number of consultants that the National Treasury appointed in the period 1 January 2012 to 31 December 2016, (b) is the name, qualification, registration number with a professional body and experience of each consultant, (c) was the term of each contract and (d) is the total amount that was paid to each consultant; (2) what (a) is the total number of consulting companies that the National Treasury appointed in the specified period and (b) are the relevant details of the directors of each company; (3) what (a) is the total number of contractors that the National Treasury appointed in the period 1 January 2012 to 31 December 2016, (b) is the name, qualification, registration number with a professional body and experience of each contractor, (c) is the total amount that was paid to each contractor and (d) was the term of each contract?
Reply:
(1)
(a)1 Total number of consultants from 1 Jan’13 – 31 Dec’16 |
(b) |
(c) Term of each contract |
(d) Total amount paid |
|||
Individuals |
Qualification |
Registration number with a prof body |
Experience |
|||
18 |
AM van den Heever |
Masters in Economics from University of Cape Town. |
N/A |
|
2 yrs |
R 195 040.00 |
Amanda Xoliswa Sithebe |
Fundamental Project Management Certificate |
N/A |
|
2 yrs |
R 266 659.00 |
|
JA Aiello |
Juris Doctor (US) |
N/A |
|
3 yrs |
R1 748 451.57 |
|
Anthea Clare Stephens |
Masters of Science Degree (1998) in Environmental and Geographical Science from the University of Cape-Town |
N/A |
|
2 yrs |
R 24 250.00 |
|
Catherine Garson & Associates |
MA in Mass Communications from Leicester University, UK,BA Honours in Translation from Wits University and BA (English, History) from UCT. |
N/A |
|
1 yr 5 mths |
R4 632 246.00 |
|
DTJ Savage |
BA, Masters in City and Regional Planning (UCT), Masters in Public policy and Administration from University of London |
N/A |
|
2 yrs |
R1 409 150.68 |
|
GH Grove |
Dip Luris, B.Luris and LLB from UNISA |
N/A |
|
3 yrs |
R 396 739.00 |
|
Hunter van Ryneveld (Pty) Ltd |
|
N/A |
|
2 yrs |
R1 469 374.97 |
|
JD Timm |
|
N/A |
|
2 yrs |
R1 511 123.08 |
|
KL Gibson |
|
N/A |
- Long and short-term insurance - Capital markets - Investment management - Market conduct
- Financial Markets Bill to repeal and replace Securities Services Act, 2011. - Credit Ratings Services Bill, 2011 - Revision of Regulation 28 of Pension Funds Act, 2011 - Insurance Laws Amendment Act, 2008 |
3 yrs |
R4 446 257.44 |
|
Llewellyn Holtshausen |
|
N/A |
|
2 yrs |
R 644 430.93 |
|
M Kihato |
|
N/A |
|
2 yrs |
R 810 691.49 |
|
MG Helford |
|
Project Management Institute 2120951 Institute of Municipal Engineering of South Africa H3524 South African Association of Public Admin and Management 56/2014L |
|
3 yrs |
R 1 378 296.88 |
|
S Jali |
|
N/A |
|
2 yrs |
R 240 800.86 |
|
S Naidu |
|
N/A |
|
2 yrs |
R 932 683.76 |
|
Seth Siyabulela Xolisile Maqetuka |
|
LGSETA: LGRS-US150220/9365 |
|
2 yrs |
R 118 792.11 |
|
Suzette Pretorius |
|
Cima: 910003X 162491626643 |
|
2 yrs |
R 722 414.08 |
|
TL Myolwa |
|
N/A |
2 years |
3yrs |
R 418 147.29 |
1 Information is only available as from 2013, as BAS version 3, is currently not available to users. BAS version 4 and 5 is available for reporting.
(2)
(a) |
Companies |
Term of each contract |
78 |
21st Century Pay Solutions Group |
2 mnths |
360 Currency |
1 yr |
|
Akhile Management and Consulting (Pty) Ltd |
3 yrs |
|
Apex Advisory Services |
1 mnth |
|
Bain And Company South Africa |
3 mnths |
|
Belay Managed Services Pty Ltd |
3 yrs |
|
Bigen Africa Services Pty Ltd |
3 yrs |
|
Bitz Technologies |
3 yrs |
|
Bowman Gilfillan Inc |
3 yrs |
|
Business Connexion (Pty) Ltd |
6 mths |
|
Casucceed Training Pty Ltd |
3 yrs |
|
CIPS SA |
5 mths |
|
Clarity Editorial Cc |
5 mths |
|
Comsel Eighteen |
3 yrs |
|
Cool Ideas (Pty)Ltd |
1 yr |
|
Creative Consulting And Development Works Cc |
3 yrs |
|
Deloitte and Touche |
3 yrs |
|
5 mths |
||
5 mths |
||
Desto Pty Ltd |
2 yrs |
|
Edward Nathan Sonnenbergs |
3 yrs |
|
Eighty Twenty Consulting (Pty)Ltd |
3 yrs |
|
2 mths |
||
EOH Abantu |
4 yrs |
|
ESOH Consulting Cc |
5 mths |
|
Exactitude Consulting (Pty) Ltd |
6 mths |
|
Exponant (Pty) Ltd |
3 yrs |
|
4 yrs |
||
3 yrs |
||
2 yrs |
||
Fanyana Ntuli Trading Cc |
8 mths |
|
Finmark Trust |
3 yrs |
|
Genesis Analytics |
2 yrs |
|
GJ Cronje Consulting & Management |
3 yrs |
|
Gobodo Forensic And Investigative Accounting Pty Ltd |
3 yrs |
|
H&P IT Empowerment (Pty)Ltd |
4 mths |
|
HR Computek |
2 yrs |
|
ICD Consultancy |
1 mnth |
|
ID1 Consulting Projects |
3 yrs |
|
Infinitum Software Solutions Pty Ltd |
1 yr |
|
3 yrs |
||
Infobuild |
3 yrs |
|
Institute for Performance Management |
1 yr |
|
Jumpco (Pty) Ltd |
3 yrs |
|
Kanagamurthi Reddy |
3 yrs |
|
Koor Dindar Mothei Gauteng (Pty) Ltd |
2 yrs |
|
KPMG Services (Pty) Ltd |
3 yrs |
|
Limco Qs Arbitration And Project Management |
3 yrs |
|
Manto Management (Pty) Ltd |
1 yr |
|
1 yr |
||
Mark Manley Associates |
9 mths |
|
Mckinsey Incorporated |
2 mths |
|
MJ Acres Computer Consultants |
1 yr |
|
MJ Mafunisa Consulting Pty Ltd |
3 mths |
|
Mogwariepa Consulting Cc |
1 yr |
|
Mubesko Africa (Pty) Ltd |
1 yr |
|
Nexus Forensic Services Pty Ltd |
3 yrs |
|
Ngubane and Company (Johannesburg) Inc |
4 mths |
|
Nkonki Incorporated |
3 yrs |
|
Norton Rose Fulbright South Africa Inc |
5 mths |
|
Oxford Policy Management Limited |
4 yrs |
|
PGE Brook |
6 mths |
|
PricewaterhouseCoopers |
3 yrs |
|
6 mths |
||
7 mths |
||
2 yrs |
||
Procurement Dynamics Pty Ltd |
6 mths |
|
6 mths |
||
Rede Engineering & Management Solutions |
7 mths |
|
7 mths |
||
Regenesys Management Pty Ltd |
5 mths |
|
Revworth Management Consultants Cc |
3 yrs |
|
S24 Business Group (Pty) Ltd |
2 yrs |
|
SBDS Construction Consultants Pty Ltd |
3 yrs |
|
Sekela Xabiso (Pty) Ltd |
3 yrs |
|
Siyakha Quantity Surveyors (Pty) Ltd |
3 yrs |
|
Sizwe Africa IT Group Pty Ltd |
1 yr |
|
Sizwentsalubagobodo Advisory(Pty) Ltd |
6 mths |
|
3 yrs |
||
SMEC South Africa (Pty) Ltd |
9 mths |
|
Soma Initiative |
5 yrs |
|
String Communication Cc |
2 yrs |
|
TMDG Consulting Pty Ltd |
8 mths |
|
Tshepega Engineering (Pty) Ltd |
2 yrs |
|
Tsubila Business Solutions Cc |
2 yrs |
|
University Of Cape Town |
6 mths |
|
University Of Johannesburg |
2 yrs |
|
Waldo Consultants Cc |
3 yrs |
|
Yasmin Coovadia Development Consulting Pty Ltd |
2 yrs |
|
Young Blood Consultants |
3 yrs |
|
Zenande Leadership (Pty) Ltd |
6 mths |
|
ZN Mncwango |
2 yrs |
(b) The information required is not mandatory fields that suppliers have to provide when registering on the Central Supplier Database (CSD) and can therefore not be provided.
(3) There is no differentiation on the National Treasury’s Procurement Management Module, between Consultants (Question 1) and Contractors (Question 3). The information is recorded on the system as a single set. All the requested information have therefore been provided at Question 1.
23 May 2018 - NW142
Moteka, Mr PG to ask the Minister of Finance
Whether (a) he or (b) the Deputy Minister made use of a chartered private jet during the period 1 January 2013 up to the latest specified date for which information is available; if so, what (i) were the reasons for using a chartered private jet, (ii) was the travel route in each case and (iii) did the use of the jet cost the National Treasury in each case?
Reply:
a) Yes
(i) The World Economic Forum (WEF) on Africa meeting was held in Abuja, Nigeria from 7 - 9 May 2014. The first day of the WEF on Africa meetings fell on the same day as the South Africa’s National Elections, 7 May 2014. Ministers were required to be present at their voting stations on the 7th May and there were no commercial airlines that could accommodate the time scheduling of the delegations especially considering that the WEF meetings had already started. Therefore it was proposed that the delegations from the three departments attending the WEF, namely National Treasury; Department of Trade and Industry; and Department of Cooperative Governance and Traditional Affairs; equally divide the total cost of R807 326.00 for a charter, between the departments.
(ii) Lanseria to Abuja and return to Lanseria.
(ii)Yes, R269 108.66, of the total cost of R807 326.00 was equally divided between the three departments.
(b) No
(i)(ii)(iii) Not applicable
23 May 2018 - NW1325
Ross, Mr DC to ask the Minister of Finance
Whether, with regard to the National Treasury’s report on the State of Procurement spent in National and Provincial Departments for the 2017-18 financial year, a submission in terms of National Treasury’s Annual Performance report, he will furnish Mr D C Ross with copies in Excel format of the list of the names of persons who did not disclose their financial interest?
Reply:
Disclosure of financial interests is overseen by the Department of Public Service and Administration (DPSA) which will be best positioned to provide Mr D C Ross with a list of names of persons who did not disclose their financial interests.
23 May 2018 - NW160
Shivambu, Mr F to ask the Minister of Finance
Whether the Government regulates transactions that involve foreign entities; if so, (a) what are the relevant details of the process, (b) which state entities are involved in the process and (c) what documentation is required to carry out such transactions?
Reply:
a) No, the Government does not generally regulate transactions that involve any entity, be it foreign or domestic, public or private. Aside from been very difficult (if not impossible) to do for any country or regulator, it is not clear what problem the Honourable Member wants Government to deal with, and therefore to regulate.
b) There are some sectors that may be regulated (e.g. financial or mining sector, but such regulating does not generally involve overseeing every transaction for any regulated entity, not even for an organ of state. Indeed, the audit process only focuses on a sample of transactions when auditing the financial statements of any entity – the audit process also relies on internal control systems to prevent wrongdoing. To the extent that there is any wrongdoing with regard to any specific transaction, the regulator will act when such transaction is identified.
c) If the problem that the Honourable Member is concerned about relates to illicit financial flows, then there are number of measures that are in place, either through the SARS (eg to deal with transfer pricing), the Financial Intelligence Centre to assess suspicious transactions, or the South African Reserve Bank when overseeing regulations in terms of the laws like the Currency and Exchange Act, 1933. Such measures apply to all companies, irrespective of whether they are domestic or foreign, public or private. To the extent that there is criminal wrongdoing, such activities are reported to the relevant criminal justice authorities like SAPS and NPA. In this regard, it should be noted that we have to be mindful that regulatory or enforcement activities do not cause undue delay for trade and economic activities, nor impose significant costs, as South Africa needs to remain competitive if it wants to attract investments and grow the economy more rapidly to create jobs and deal with problems of poverty and inequality.
16 May 2018 - NW1085
Mkhaliphi, Ms HO to ask the Minister of Finance
Whether he took any action on the correspondence of employees of the Internal Audit division of the Department of Defence that was directed to the National Treasury on 11 September 2017 regarding the dysfunctional internal audit division of the Department of Defence that is failing to implement the internal audit framework and guidelines; if not, why not; if so, what action has he taken?
Reply:
The Minister of Finance had not previously seen the correspondence referred to but as a result of the parliamentary question has become aware.
The Minister notes that it raises a number of issues regarding the manner in which the Internal Audit function is managed. It is also clear in the letter that the internal audit staff have correctly escalated their concerns to the Accounting Officer, Audit Committee and the Executive Authority of the Department of Defence. These are the appropriate authorities to address their concerns. It is Minister’s humble representation that the leadership of the Department of Defence should respond to this parliamentary question, considering that:
The Accounting officer of the department is responsible per s38 (1) of the PFMA to establish and maintain an effective internal audit function, and to appoint an audit committee to control and direct the internal audit function.
Notwithstanding the aforementioned, the Minister further notes that the grievances were raised in September 2016 and that the staff are understandably anxious for answers. The National Treasury will consult the leadership of the Department of Defence to determine if and how assistance can be offered to speed up the resolutions to the problems that the staff have raised.
16 May 2018 - NW933
Maynier, Mr D to ask the Mr D J Maynier (DA) to ask the Minister of Finance
With regard to the funds allocated for the purpose of fee-free higher education and training for students from households with income less than R350 000, (a) is the additional R57 billion allocated funding sufficient, (b) what are the assumptions used for costing free-fee higher education and (c) what is the breakdown of (i) what was used as the intake rate/enrolment rate, (ii) the time assumed for completing a qualification, (iii) cost per student and (iv) of the cost per student per (aa) university student and (bb) technical and vocational education and training college students for each financial year during the period 2018-19 up to 2020-21?
Reply:
a) The additional R57 billion allocated to the post-school education and training sector in the 2018 Budget was not only for the phasing of fee-free higher education and training for students from households with an income of less than R350 000; the additional allocation also covers increasing subsidies to universities and Technical and Vocational Education and Training (TVET) colleges. This funding requirement was calculated based on certain assumptions about, amongst others, the rising full cost of study over the years and the number of students from households with an income of less than R350 000 that enrol in public universities and TVET colleges.
The National Treasury will use the actual data collected by Department of Higher Education and Training in the 2018 academic year on university, TVET college, and National Student Financial Aid Scheme applications, to verify the assumptions used. This actual data is expected later in the year. The question of whether the additional funding allocated is sufficient can therefore only be accurately addressed once this actual data has been collated and analysed.
b) Assumptions used for costing the phasing-in of fee-free higher education and training over the next five years are the following:
▪ The estimated number of university first-time entrants in the 2018 academic year is 208 308. The number of TVET college full-time equivalent students is estimated at 338 437 in the 2018 academic year.
▪ 40 per cent of the undergraduate university population and all (100 per cent) the full-time equivalent students at TVET colleges fall within the R350 000 household income threshold.
▪ The average full cost of study at public universities is estimated at R76 000 for the 2018 academic year. The average full cost of study at public TVET colleges for the 2018 academic year is estimated at R69 000 for the National Certificate Vocational (NVC) qualification, and R66 000 for the Report 191/NATED qualification.
(c) (i) The total intake of university first-time entrants in the 2018 academic year is estimated at 08 308 students, of which the 40 per cent qualifying in their first year of study in 2018 is 83 323. The assumed annual enrolment rate for first-time entrants at universities is 3.5 per cent over the 2018 medium term expenditure framework period (2018/19 – 2020/21).
At TVET colleges, the estimated intake of qualifying full-time equivalent (FTE) students in the 2018 academic year is 338 437. The assumed annual enrolment rate for FTE students at TVET colleges is 1.9 per cent over the 2018 medium term expenditure framework period (2018/19 – 2020/21).
ii) The new students that will benefit from this new bursary scheme as from the 2018 academic year will be funded for n+1 years to complete their undergraduate qualification; meaning that a single additional year to the regulation period of a qualification will be funded. Important to note however, is that the returning National Student Financial Aid Scheme (NSFAS) students in 2018 will still be funded for n+2 years, in line with their agreements for NSFAS loans and bursaries signed in previous years under the general NSFAS rules.
(iii) An average cost per student was used, pending actual data to be collected from the 2018 student cohort later in the year. The average full cost of study at public universities is estimated at R76 000 for the 2018 academic year. The average full cost of study at public TVET colleges for the 2018 academic year is estimated at R69 000 for the National Certificate Vocational (NVC) qualification, and R66 000 for the Report 191/NATED qualification.
(iv) (aa) and (bb)
The actual breakdown of the cost per student for the 2018 academic year is not yet available. Determination of the actual full cost of study per student contains a number of factors. The actual costs of tuition vary according to specific fields of study and programmes that students register for (e.g. engineering, art, medicine, history); and vary according to the specific institution attended. Actual costs for the qualifying students that will stay in private accredited accommodation versus those that receive a travel allowance will differ significantly. The prescribed learning materials also vary in line with the actual courses taken. For example, a student that enrols for a fine art qualification may require paint/brushes/canvasses, while a graphics design student may require a laptop with a specific software package. Work is underway by the Department of Higher Education and Training, universities, TVET colleges, and National Student Financial Aid Scheme, to collect and verify these actual costs.
16 May 2018 - NW1123
Lees, Mr RA to ask the Minister of Finance
(1)With reference to the reported plans of the National Treasury to unlock R180 billion of dead assets (details furnished), what are the details of the (a) process that will be followed by the National Treasury to speed up the transfer of ownership of state-subsidised homes worth R 180 billion from April 2018, (b) estimated costs associated with the process, (c) geographic areas that will be targeted and (d) other Government departments that will participate in the process; (2) whether the state-subsidised homes that are to be transferred have been (a) identified, (b) surveyed and/or (c) registered with the Deeds Office if not, in each case, what (i) are the details of the land surveyor and other resources that will be required, (ii) costs that will be incurred in each case and (iii) measures that have been put in place to ensure that the Deeds Office will be able to deal with this volume of property registrations; if so, what are the relevant details in each case?
Reply:
- There is no plan by the National Treasury (NT) to unlock R180 billion in dead assets, per se. The Budget Review (Chapter 6, pg 73) refers to a backlog of around 1 million subsidised homes, which still need to be registered for title deeds, which is estimated at around R180 billion in equity.
- However, there is a programme to ‘eradicate’ the title deeds backlog. This is led, undertaken and overseen by the national Department of Human Settlements (DHS).
- DHS approached NT to create a separate Title Deeds Restoration Grant (TRG).
- Through the 2018 Budget process, and after obtaining Cabinet approval, NT created the TRG, amounting to R518.7 million in 2018/19, R547.7 million in 2019/20 and R577.8 million in 2020/21.
- Further details on the programme elements, monitoring and evaluation, must be referred to the DHS.
16 May 2018 - NW938
Lees, Mr RA to ask the Minister of Finance
(1)Whether the National Treasury will speed up the transfer of ownership of homes worth R180 billion to about one million poor persons from 1 April 2018 over a period of three years (details furnished); if so, what are the details of the (a) process to be followed, (b) estimated costs of the specified process and (c) geographic areas involved; (2) have the homes that are to be transferred been (a) identified, (b) surveyed and (c) registered with the Deeds Office; if not, what (i) are the details of the land surveyor resources that will be required, (ii) are the land survey costs, (iii) are the costs of legal fees to do the deeds offices’ registrations and (iv) is the ability of the deeds office to deal with the volume of property registrations; (3) which government departments will participate in this process?
Reply:
- There is no plan by the National Treasury (NT) to speed up the transfer of ownership to 1 million households, per se. The Budget Review (Chapter 6, pg 73) refers to a backlog of around 1 million subsidised homes, which still need to be registered for title deeds, which is estimated at around R180 billion in equity.
- However, there is a programme to ‘eradicate’ the title deeds backlog. This is led, undertaken and overseen by the national Department of Human Settlements (DHS).
- DHS approached NT to create a separate Title Deeds Restoration Grant (TRG).
- Through the 2018 Budget process, and after obtaining Cabinet approval, NT created the TRG, amounting to R518.7 million in 2018/19, R547.7 million in 2019/20 and R577.8 million in 2020/21.
- Further details on the programme elements, monitoring and evaluation, must be referred to the DHS.
09 May 2018 - NW1063
Madisha, Mr WM to ask the Minister of Finance
In view of his recent remarks regarding a number of cities that are on the brink of collapse (details furnished), (a) which cities was he referring to, (b) what are the root causes of their imminent collapse and (c) what steps does he propose should be taken to avert the collapse of each city?
Reply:
a) The statement made by the Minister of Finance during the Executive Leadership course was not referring to any specific Metropolitan, Intermediate City or municipalities. The Minister was speaking in general based on the National Treasury’s broad observation over time with regard to financial management challenges which if not properly addressed could lead to collapse as evidenced by the experience of other cities elsewhere.
b) It is well known that a number of municipalities face significant governance, service delivery and financial challenges. These are often related, and the National Treasury has repeatedly emphasized that governance challenges are the most common underlying driver of service delivery and financial challenges.
The National Treasury does have concerns about the performance of some municipalities with respect to governance, institutional, financial health and service delivery, some of which are not able to pay creditors and are struggling to pay for bulk water and electricity.
The National Treasury publishes detailed information on all municipalities in its annual report on the state of local government finances and financial management, the latest report will soon be released. The report does identify those municipalities that are in financial distress, there were 95 municipalities in financial distress in 2016/17 report. Although these municipalities are cause for immediate concern, it should be noted that all of our municipalities – including metropolitan municipalities - have significant room to improve performance on many of the indicators tracked in the state of local government finances and financial management.
c) National and Provincial governments provide extensive support to all municipalities in terms of section 154 of the Constitution. Details of these support measures are also provided in the state of local government finances report. More recently, the adoption of the Integrated Urban Development Framework (IUDF) has led to greater coordination and focussing of support to different categories of municipalities, in order to enable them to respond more effectively to their development challenges and align their performance with our national development goals. With the IUDF, the Cities Support Programme, which is coordinated by the National Treasury, are working closely with our metropolitan municipalities. The Department of Cooperative Governance has begun to rollout out a complementary programme for Intermediate Cities, while the design of a small towns programme is being finalised in consultation with the SA Local Government Association. These programmes strongly complement the systemic support and reform programmes such as Back to Basics (B2B) and Municipal Financial Management reforms.
The National Treasury and the Department of Cooperative Governance (DCoG) are collaborating to prioritise municipalities that are in financial distress and failing to deliver services for support and intervention to restore them to sustainability, working in collaboration with provinces.
The previous Minister of Finance during his Medium Term Budget Policy Statement (MTBPS) in October 2017, recognised the municipal financial management challenges experienced and announced the introduction of a funding mechanism to support the recovery plans for municipalities that face a financial crisis, as provided for in section 139(5) of The Constitution. The DoRA published in February 2018 provides a brief background to the proposed funding mechanism namely, the Municipal Restructuring Grant (MRG).
The purpose of this grant, as described in the DoRA, is “to be a short term intervention that will fund the turnaround of struggling municipalities”. This will provide some financial relief to municipalities that require financial support to improve their current situation. It is important to note that this grant allocation is not intended to fund the complete financial recovery plan but rather to contribute to the implementation of corrective action that demonstrates sufficient alignment to NT’s “game changers” referred to previously in this document.
09 May 2018 - NW750
Shivambu, Mr F to ask the Minister of Finance
(a) Does Grindrod have a banking licence, (b)(i) is the specified bank foreign or locally owned and (ii) what are the full details of the owners of the bank and (c) what are the names of the shareholders of the bank?
Reply:
a) Yes. According to the Prudential Authority at the South African Reserve Bank (Prudential Authority), Grindrod Bank has a banking licence in terms of the Banks Act, and that the banking licence was issued in December 2006.
b) We cannot confirm whether a company is locally or foreign owned, particularly if it is listed and / or its ultimate owners (or shareholders) are listed or their identity not explicitly identified (eg hidden via structuring). What we can confirm is whether the company is domiciled in South Africa or not, and if listed, where its primary listing is. In this instance, the Prudential Authority has confirmed that the company is domiciled in South Africa. In addition, whilst Grindrod Bank is not listed, its majority shareholder (Grindrod Limited) is listed on the Johannesburg Stock Exchange.
c) The Prudential Authority furthermore confirmed that Grindrod Bank is 96.55% owned by Grindrod Limited and 3.45% owned by Amber Bay Investments (Pty) Ltd.
03 May 2018 - NW812
Mileham, Mr K to ask the Minister of Finance
(1)(a) Which municipalities currently have accounts with the Venda Building Society Mutual Bank and (b) what amount is held in each of the accounts; (2) whether any municipality closed any accounts with the specified bank; if so, which municipalities; (3) whether any action has been taken against any municipality for illegally opening accounts with the specified bank; if not, why not; if so, what are the relevant details in each case?
Reply:
1. a) According to National Treasury’s records, 14 municipalities currently have funds invested with the Venda Building Society (VBS) Mutual Bank
b) Please see below list of municipalities and investment amounts currently held by VBS Mutual Bank.
Name of municipality |
Amount |
Merafong City Local Municipality |
R50 000 000 |
West Rand District Municipality |
R81 676 155 |
Makhado Local Municipality |
R61 694 081 |
Greater Giyani Local Municipality |
R159 262 692 |
Collins Chabane Local Municipality |
R121 824 657 |
Elias Motsoaledi Local Municipality |
R54 973 |
Vhembe District Municipality |
R300 000 000 |
Ephraim Mogale Local Municipality |
R83 428 490 |
Tubatse Fetakgomo Local Municipality |
R240 649 836 |
Lepelle-Nkumpi Local Municipality |
R153 321 224 |
Madibeng Local Municipality |
R31 035 191 |
Mafikeng Local Municipality |
R82 191 000 |
Moretele Local Municipality |
R50 000 000 |
Dr Ruth Segomotsi Mompati District Municipality |
R150 000 000 |
2. According to National Treasury records, there were no municipalities that closed their accounts with VBS Mutual Bank, however the following 4 municipalities’ investments matured and there was no re-investments of the funds.
a) Polokwane Local Municipality
b) Capricorn District Municipality
c) Makhuduthamaga Local Municipality
d) Dr JS Moroka Local Municipality
3. National Treasury had communicated with 7 municipalities that were identified through the in-year reporting system that had invested funds with VBS Mutual Bank in August 2017. The communication drew municipalities’ attention to section 7(3)(b) of the MFMA, which states that a municipality may not open a bank account with an institution not registered as a bank in terms of the Banks Act 94 of 1990; read with the Municipal Investment Regulations, which regulate the instruments within which municipalities are allowed to invest municipal funds. The National Treasury also held a meeting with the municipalities listed above on 22 March 2018 with the aim of establishing the extent of their investments and confirming the amounts still invested with VBS Mutual Bank at the time when the SARB intervened.
It should be noted that in terms of the MFMA, read together with the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings, council must, through the disciplinary board, investigate all acts of non-compliance with the MFMA and its Regulations, to establish whether an act of financial misconduct was committed by any of the municipal officials. It is therefore the municipal council that must ensure that the conduct of the Accounting Officer, the Chief Financial Officer and any other relevant officials of the effected municipalities is investigated to ascertain whether financial misconduct was committed and based on that, institute further action, including disciplinary action. National Treasury will continue to monitor the corrective action implemented in this regard.
03 May 2018 - NW907
Nolutshungu, Ms N to ask the Minister of Finance
With reference to the R1 billion budgeted for the 2018-19 financial year towards the building of the Mtentu and Msikaba bridges, why will the National Treasury only allocate the specified amount in the 2019-20 financial year?
Reply:
The South African National Roads Agency is expected to receive transfers of R7.9 billion in 2018/19, R10.3 billion in 2019/20 and R10.9 billion in 2020/21 from the Department of Transport to fund its capital programme. The Agency has already provided for the project in the baseline and the additional R1 billion in 2019/20 and R1.1 billion in 2020/21 supplements the project funding provided for in the Agency’s capital transfers.
03 May 2018 - NW876
America, Mr D to ask the Minister of Finance
(a) What amount in funding did South Africa contribute towards the New Development Bank in each year since its establishment in 2014 and (b) will South Africa contribute to the specified bank in each of the next ten financial years?
Reply:
South Africa’s contribution is guided by Attachment 2 of the Articles of Agreement of the New Development Bank – the schedule of Payment of Initial Subscriptions to the Paid in Capital by the Founding Members.
a)
- In the financial year 2015/16, the capital obligation was US$150 million; the actual capital transfer amounted to R 2.298 billion.
- In the financial year 2016/17, the capital obligation was US$ 250 million; the actual capital transfer amounted to R 3.515 billion.
- In the financial year 2017/18, the capital obligation was US$300 million; the actual capital transfer amounted to R 4.088 billion.
b)
- The capital obligation for the year 2018/19 is US$300 million.
- The capital obligation for the year 2019/20 is US$300 million.
- The capital obligation for the year 2020/21 is US$350 million.
- The capital obligation for the year 2021/22 is US$350 million.
03 May 2018 - NW871
Mileham, Mr K to ask the Minister of Finance
(1)(a) Which municipalities (i) adopted unfunded budgets and (ii) are unable to meet their financial commitments for the current financial year and (b) which of the specified municipalities have adopted financial recovery plans drafted by the Municipal Financial Recovery Service; (2) whether he will encourage the relevant provincial executive to intervene in the specified municipalities in terms of section 139(5) of the Constitution of the Republic of South Africa, 1996; if not, why not; if so, what are the relevant details?
Reply:
1(a) The list of municipalities with unfunded budgets are summarised in Annexure A below.
1(a) (ii) The municipal financial information presented in the MFMA section 71 reports for the 2nd quarter ended 31st December 2017 was used to establish which municipalities are potentially unable to honour their financial commitments. When matching the “cash and cash equivalents” for this period against the “total creditors” for the same period, it showed that municipalities with unfunded budgets are not able to pay their total creditors within the prescribed thirty-day period.
1(b) The development and adoption of financial recovery plans is the primary responsibility of a municipality facing financial challenges as legislated in Chapter 13 of the MFMA; and this provides for the municipality to request support for the development of a financial recovery plan from Provinces and National Treasury. Where such requests are received from municipalities the financial recovery plan is developed by National Treasury in consultation with the relevant Provincial Treasury and the municipality. The list of municipalities that currently have approved financial recovery plans as well as those that have requested support is presented in Annexure A. There are 14 municipalities among the 112 that adopted unfunded budgets with approved financial recovery plans; this means that, in spite of the financial recovery plan having been adopted, the municipal budget is still unfunded. Financial recovery plans are mostly prevalent in the North West, Limpopo and Northern Cape.
2. Yes, the Minister of Finance will consult with the Minister of Cooperative Governance and Traditional Affairs for support of appropriate interventions at municipalities that continue to adopt unfunded budgets. The Minister of Finance will consider strengthening measures to ensure the adoption of funded budgets by municipalities and to provide specific intervention measures to enforce such measures.
In terms of the role of the provincial executive and the present legal framework for municipal intervention, the intervention process is addressed in terms of section 139 of the Constitution of the Republic of South Africa. This provides for a process, including the provincial executive role when performing its oversight and obligations with respect to municipalities. The Honourable member must note that the existing municipal intervention legal framework for the Province to issue a directive to the municipality in terms of section 139(1)(a), this is followed by a step by step process, including support in terms of section 154 of the Constitution. Moreover, MFMA section 136, 137 and 139 requires the provincial executive to undertake certain discretionary and mandatory actions to address the situation, failing which the National Treasury upon request from a municipality and province will develop a financial recovery plan for a municipality.
The intervention in terms of section 139(5) of the Constitution raised by the Honourable Member, is in fact the prerogative of the Provincial Executive to decide and resolve. The Minister of Finance can request a province to intervene in specific municipalities as part of the process in implementing the MFMA. In terms of section 150 of the MFMA the National Executive may intervene instead of Provincial Executive if the condition of section 139(5) are met and the province has failed to do so.
03 May 2018 - NW468
Alberts, Mr ADW to ask the Minister of Finance:†
Whether he has found that the R5 billion loan awarded to Eskom by the Government Employees Pension Fund and the Public Investment Corporation meets all legal requirements; if not, (a) why not and (b) what are the relevant details of its implications; if so, (i) what legal requirements were to be complied with and (ii) in what respect was it complied with?
Reply:
The National Treasury is confident that in considering this transaction, the leadership of the PIC adhered to all its internal processes that should be complied with. Furthermore, the National Treasury is also assured that the approval of this transaction was made in accordance with the established mandate from the GEPF. It should be noted that the National Treasury was not involved in the engagements surrounding this transaction and therefore does not have all the details that were agreed upon. The National Treasury is aware that this is was a short-term facility and Eskom has already paid this facility by the end of the February 2018.
02 May 2018 - NW208
Lekota, Mr M to ask the Minister of Finance
What (a) rationale was presented by the SA Social Security Agency to the National Treasury in seeking a deviation from procurement regulations and processes in respect of Rangewave and (b) were the reasons for the National Treasury refusing such request?
Reply:
a) Urgency was cited as a reason for deviating from normal procurement processes.
b) According to the National Treasury, the services could still be procured through open competitive bidding process.
02 May 2018 - NW510
Mileham, Mr K to ask the Minister of Finance
(a) What number of municipalities entered into public-private partnerships (i) in each of the past three financial years and (ii) since 1 April 2017 and (b) what (i) are the names of each party involved, (ii) was the purpose of each partnership, (iii) was the value of each partnership and (iv) were the outcomes of each partnership; (2) Whether any of the partnerships (a) failed to materialise and/or (b) did not meet its expected obligations; if so, what are the relevant details in each case?
Reply:
1. There is one (1) registered public-private partnership that was entered into in March 2016, which is the City of Tshwane Fleet Management PPP project for the replacement of aged vehicles and leases (as and when the existing contracts expires) through a private party on a five year Full Maintenance Lease (FML) basis.
In the City of Tshwane Fleet Management PPP project, the names of parties contracted to the City are divided into categories of vehicle requirements. These are the companies that are contracted to the City in accordance with vehicle specification:
- Moipone Group of Companies (Pty) Ltd is contracted to supply and manage the non-specialized vehicles with a gross vehicle mass not exceeding 3500kg valued at R4 829 732.00 per month, subject to vehicle utilization;
- Fleetmatris VMS (Pty) Ltd is contracted to supply and manage the specialized vehicles (excluding red fleet, waste management vehicles and yellow plant) and vehicles with a gross vehicle mass exceeding 3500kg valued at R11 757 150.00 per month, subject to vehicle utilization;
- Moipone Group of Companies (Pty) Ltd is contracted to supply and manage waste management vehicles (including, Compactors, Rear End Loaders, and Front End Loaders) valued at R4 290 830.00 per month, subject to vehicle utilization; and
- Fleet Africa a Division of Super Group Africa (Pty) Ltd is contracted to supply and manage ambulances, fire fighting vehicles and equipment (Red Fleet) valued at R5 393 118.00 per month, subject to vehicle utilization.
2. There are no reported public-private partnerships that failed to materialize and/or did not meet its expected obligations.
02 May 2018 - NW43
Maynier, Mr D to ask the Minister of Finance
Whether a certain person (name furnished) accompanied him on any of his official travels to the (a) United States (b) Japan, (c) China and/or (d) Singapore in October and November 2017; if not, in each case, why not; if so, in respect of each leg of official travel, (i) what was the (aa) purpose, (bb) departure date, (cc) arrival date and (dd)(aaa) total cost and (bbb) detailed breakdown of the total cost and (ii) what is the total cost to the National Treasury of the specified person’s official travel since 1 April 2017?
Reply:
(i)(aa) |
(i)(bb) |
(i)(cc) |
(i)(dd)(aaa) |
(i)(dd)(bbb) |
||
(a) |
Fifth Annual South Africa Tomorrow Investor Conference, New York, 9-10 Nov 2017 |
7 Nov 2017 |
11 Nov 2017 |
R 139 442.38 |
Air travel Daily allowance (for entire trip) T&S incidental cost |
R122 773.29 R15 942.15 R726.94 |
(b) |
Non-deal Roadshow, Asia 12-17 Nov 2017 |
11 Nov 2017 |
13 Nov 2017 |
|||
(c) |
13 Nov 2017 |
15 Nov 2017 |
||||
(d) |
15 Nov 2017 |
17 Nov 2017 |
(ii) R873 366.68
19 April 2018 - NW1017
Mulaudzi, Adv TE to ask the Minister of Finance
(a) What positions has a certain person (name furnished) held since he was appointed to the SA Revenue Service, (b) what is the date of appointment to each position, (c) what are the details of each position and (d) what were the responsibilities did each position entailed?
Reply:
(a)(b) Mr. Kingon has held the following positions for the specified duration since his appointment to Inland Revenue/ the South African Revenue Service (SARS): The dates are approximate dates
- Cash Office Clerk – 1984 to 1986,
- Assessor on Salary, Partnership and other cases – 1986 to 1990,
- Tax Officer Policy and Law Application: Direct Taxes – 1/4/1990 to 30/11/1990,
- Secretariat of Tax Advisory Committee – 1/12/1990 to 30/11/1991,
- Various Roles: Policy and Law Application: Direct Taxes – 1/12/1991 to 31/12/1998,
- Manager: Special Taxes – 1/1/1999 to 31/12/2001,
- Enforcement Assistant General Manager: Legal and Policy –2002 to 2007,
- Group Executive: Business Systems – 2007 to 2008,
- Group Executive: Operational Service Escalations and Support – 2009 to 2016,
- Group Executive: Relationship Management – 2016 to 2018
- Acting Chief Officer Business and Individual Tax (BAIT) – 15 March 2018 to 18 March 2018
- Acting Commissioner – 19 March 2018 to date
(c)(d) These positions included the following responsibilities:
- Branch Office:
- Daily activities of Cash Office such as processing of Royalty Taxes and Non-residents Tax on Dividends and Interest
- Assessing of taxpayers such as Salary earners, Partnership and other cases
- Legal and Policy:
- Policy and Law Application on Direct Taxes
- Managing the daily operations and staff of the Special Taxes unit
- Enforcement
- Heading up the Legal and Corporate Services division that includes direction setting, daily operations and staff management
- Tax Advisory Committee:
- Perform Secretariat duties for the Committee
- Group Executive:
- Manage and give strategic direction to the Business Systems, Service Escalations and Support and Relationship Management divisions during respective times served
- Liaison with strategic stakeholders
- Facilitation of technical discussions with professional bodies
- Dealing with policy matters including technical inputs on development of forms, guides, business specifications and procedures
- Representing the organization in the media on topical specific technical matters
- Providing input and guidance on proposed law amendments, direction setting and guidance on law application and interpretation and other technical aspects
19 April 2018 - NW1019
Mokoena, Mr L to ask the Minister of Finance
What amount will a certain person be paid as Acting Commissioner of the SA Revenue Service?
Reply:
(i) Payment of any acting allowance within the South African Revenue Service (SARS) is done in line with the approved conditions of service. . As per the conditions of service, SARS will pay an acting allowance to employees only after acting for a continuous period of more than forty (40) working days from the first day of commencement of the acting period, retrospectively.
(ii) Currently no acting allowance is being paid and he is receiving his remuneration as per his appointment to the position of Group Executive: Relationship Management.
19 April 2018 - NW1016
Sonti, Ms NP to ask the Minister of Finance
(a) What qualifications has a certain person obtained since his appointment at the SA Revenue Service, (b) in what year did the specified person graduate, (c) what is the name of the (i) institution where he studied and graduated and (ii) qualification the specified person attained?
Reply:
(a) Mr. Kingon obtained a Bachelor of Administration degree since his appointment to Inland Revenue/ South African Revenue Service (SARS),
(b) Mr. Kingon completed his degree in December 1998,
(c)(i) He graduated at the University of South Africa,
(ii) He attained a Bachelor of Administration degree.
16 April 2018 - NW932
Maynier, Mr D to ask the Minister of Finance
(1)With regard to the expenditure cuts referred to in the 2018 Budget at the level of national departments, what is the total breakdown of cuts per (a) department, (b) programme and (c) subprogramme; (2) in view of the budget of 2018 which states that net debt is now projected to stabilise at 53,2% by 2023-24, what are the assumptions for each year leading up to and including 2023-24 for the net debt to stabilise, including the further specified details (details furnished)?
Reply:
2. See tables attached
(2) The macroeconomic forecast is underpinned by a set of assumptions shown in Table 1 below. The long-run macroeconomic forecast reflects expectations of potential growth based on investment and population growth as well as the state of the global economy. The combination of higher GDP growth, stronger currency, higher real bond yields, lower borrowing costs and a narrower deficit results in an improved debt-to-GDP outlook, with debt stabilising at 53.2 per cent of GDP in 2023/24.
Table 1 Budget 2018 long-run assumptions
Table 2 Budget 2018 long-run main budget framework
Reply to (1)
05 April 2018 - NW873
Matsepe, Mr CD to ask the Minister of Finance
What (a) progress has the National Treasury made with reviewing the Southern African Customs Union revenue sharing model and (b) are the details of the design for a reviewed revenue model?
Reply:
(a) The SACU Heads of State and Government agreed to a comprehensive review of the 2002 SACU Agreement during the 5th SACU Summit that took place on 23rd of June 2017 in Lozitha, Swaziland. The Summit established two Ministerial Task Teams on Trade and Industry, and on Finance to oversee and manage the review of the 2002 SACU Agreement. The review of the Revenue Sharing Formula was identified and agreed upon as one of the key areas that should form part of the review process. The review of the revenue sharing formula was to be conducted in such a way that it not only supports the institution and member states in the attaining their respective developmental objectives but also does not negatively impact the socio-economic stability of SACU member states.
(b) The negotiations on the review of the 2002 SACU Agreement will commence in April 2018 with the first meetings of the Ministerial Technical Task Teams. The review of the Agreement is expected to take place over an indicative period of two years during which various options that can achieve the developmental objectives of SACU will be considered.
26 February 2018 - NW184
Mkhaliphi, Ms HO to ask the Minister of Finance
Whether the National Treasury is conducting a review of goods and services that the Government is currently outsourcing, which can be insourced efficiently and effectively; if so, what are the relevant details of the specified review?
Reply:
Yes the National Treasury, in consultation with other government departments, does review goods and services that could be procured directly from state institutions through strategic procurement based on the capacity of the state to render such services.
26 February 2018 - NW267
Lees, Mr RA to ask the Minister of Finance
(1)Whether a certain person (Mr Juanito Damons) is a member of the Appeal Board of the Financial Services Board; if so, (2) whether the position of the specified person as the curator of a certain company (Mr Juanito Damons) presents any conflict of interest while serving as a member of the Appeal Board; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
1. Yes.
2. There is not a conflict of interest.
Mr Damons is one of the members of the Appeal Board, appointed by the Minister of Finance in terms of section 26A(2) of the Financial Services Board Act, No. 97 of 1990. The Appeal Board is independent from the Financial Services Board (“FSB”) and it currently consists of 16 members appointed by the Minister of Finance, based on their extensive financial services or legal experience or knowledge
The chairperson or deputy chairperson of the Appeal Board, who are both retired judges, assign appeals to panels consisting of not less than three members. These panel members are chosen from the members of the Appeal Board and not all members of the Appeal Board form part of all panels. The decision of the majority of the members constituting a panel is the decision of the Appeal Board and the chairperson of the panel has a casting vote in the event of an equality of votes.
In terms of section 26B(3) of the Financial Services Board Act, 1990 a member of a panel should immediately disclose and withdraw from a hearing if, before or during a hearing, it becomes apparent that the member has an interest in a matter referred to the Appeal Board.
The appointment of curators is generally done by a High Court, upon recommendation by the FSB, and not by the Minister of Finance.
08 February 2018 - NW41
Lees, Mr RA to ask the Minister of Finance
Whether a certain company (Irabha Umbhilo Ltd) has been paid within 30 days after it had delivered the supplies; if not, what are the reasons that payment has not been made within 30 days; if so, what are the relevant details?
Reply:
National Treasury requires the following detailed information in respect of the alleged company:
a) The name of the state organ that procures the services or goods from the company.
b) The nature of services or goods procured from the company
c) The timeframes that these goods/ services were procured.
d) The evidence that the goods/ services were received by the state.
14 December 2017 - NW3522
Bagraim, Mr M to ask the Minister of Finance
Did the National Treasury receive all the necessary documentation from the Don Mattera Child and Youth Care Centre in Edenvale pertaining to the attached document; if not, why not; if so what are the findings of each procurement?
Reply:
The National Treasury has not received the request.
13 December 2017 - NW2092
Shivambu, Mr F to ask the Minister of Finance
Whether (a) the National Treasury and/or (b) any entities reporting to him are funding, including by way of discretionary funding, any institution of research and development (i) domestically and/or (ii) internationally; if so, (aa)(aaa) what are the names of the specified institutions and (bbb) what are their functions, (bb) from what date has the National Treasury or any entity reporting to him been funding them and (cc) what amount has the National Treasury contributed towards such funding?
Reply:
NATIONAL TREASURY
(a)(i) Yes
(a)(ii) Yes
(a)(aa)(aaa) |
(a)(aa)(bbb) |
(a)(aa)(bb) |
(a)(aa)(cc) |
Economic Research Southern Africa (ERSA) |
Research programme funded with the aim to nurture and expand economic research capacity in South Africa amongst academics and practicing economists. |
2005 |
R91 677 000.00 |
United Nations University-World Institute for Development Economic Research (UNU-WIDER) |
Areas of research funded were climate change and energy; economic development in Southern Africa; understanding the behavior of firms, tax and labour economics. |
2012 |
R13 600 000.00 |
ASB
The Accounting Standards Board does not provide funding to any institution of research and development domestically or internationally.
CBDA
(a) The Co-operative Banks Development Agency and/or (b) any entities reporting to her is not funding, including by way of discretionary funding, any institution of research and development (i) domestically and/or (ii) internationally; if so, (aa)(aaa) no names of the specified institutions and (bbb) or functions, (bb) or date can be provided or reported by her funding them and (cc) no amount was contributed by the CBDA towards such funding?
DBSA
The Development Bank of Southern Africa (DBSA) has over the previous 2016/17 and current 2017/18 financial years, as part of the Strategy Division’s research and knowledge management functions engaged the services of the following institutions: (i) the Wits School of Governance (WSG); (ii) the Chartered Institute of Development Finance (CIDEF); (iii) the Institute of African Alternatives (IFAA); and the University of Pretoria’s Gordon Institute of Business Science (GIBS), all of which are local.
- The Wits School of Governance (WSG) was engaged for a multi-stakeholder conversation on “The Utility of the Electricity Supply Model” as the first session under the purview of the Infrastructure Conversation Series. Their responsibilities were facilitation of the session, report compilation, hosting and marketing of the event. The DBSA was invoiced for a total of R 64 545.34 that was paid during the 2016/17 financial year;
- Prof Adrian Saville from GIBS on a sole sourcing basis assisted the DBSA with the drafting and presentation of the Economic Outlook reports that served at the Assets and Liabilities Committee (ALCO), the Investment Committee (IC), the Board Credit and Investment Committee (BCIC), and the Management Strategy Session. The DBSA was invoiced twice for these services for the respective amounts of R 212 500 and R 597 500 that were both paid during the 2016/17 financial year.
- The services of the Institute for African Alternatives (IFAA) were procured on a closed tender basis to undertake a study on the relationship between infrastructure and industrialisation through examination of the impact of South African entities in the African continent. The deadline for submission of the output is the end of Q4, specifically end of September, 2017. IFAA quoted the study at R 400 000 with the DBSA to be invoiced on submission of the final output. Payment to be made within the current 2017/18 financial year.
- The DBSA has entered into a membership/partnership agreement with the Chartered Institute of Development Finance (CIDEF) on the Masters in Development Finance as at 23 January, 2017. The components of the partnership include a visiting Fellowship and Lectureship Programme, Knowledge Collaboration for Research, and Internship and Youth Development. The total annual cost of the partnership is estimated at R 300 000 and the funds are expected to be spent over the current 2017/18 financial year.
- The respective amount totals paid out to local research and development institutions are (R 64 545 34 + R 212 500 + R 597 500) = R 874 545 34 for the 2016/17 financial year and the anticipation of (R 400 000 + 300 000) =
R 700 000 for the 2017/18 financial year.
FSB
(b) Financial Services Board is not funding any institution for Research and Development. (i) to (ii) cc Not Applicable
FIC
The financial Intelligence Centre is not funding any research and development as per question 2092 (b) and therefore the question in the subsections to not apply.
GEPF
The GEPF is not funding any institutions of research and development.
GPAA
The GPAA is not funding any institution of research and development domestically and internationally.
IRBA
(b) The IRBA hereby declares that funding is done, to institutions of research and development.
(i) Only domestically
(aa)` The IRBA encourages research and innovation in Education, Training and Professional Development in South Africa.
(aa) The IRBA has in the past financially contributed to the following:
(aaa) The South African Journal of Accounting Research (SAJAR).
(bbb) The IRBA is a founding member of SAJAR. SAJAR publishes peer-reviewed original research papers, notes and commentaries that address issues relevant to accounting academics and professional accountants in Southern Africa.
This includes areas of interest in the study and practice in financial accounting, auditing, taxation, financial management, management accounting, finance, ethics and information systems. The IRBA has demonstrated support for SAJAR through serving on the Editorial Board and providing funding.
(bb) The funding is done for the last three years
(cc) An amount of R70 000 per annum
PFA
(b)(i) No
(ii) No
LAND BANK
In South Africa, the Land Bank (under its Corporate Social Investment portfolio) developed a programme named The Land Bank University Agricultural Chairs (LBUAC) in order to support selected Historically Disadvantaged Universities.
The aim of the programme is to:
- to promote agricultural research for sustainable development
- to provide financial assistance to agricultural research
- to provide support to university community upliftment initiatives
- to expand graduates training & strengthening research capacity in
integrated agricultural sciences
- to develop the agricultural sector and emerging farmers
The names of the universities that participate in the programme currently are:
- University of Venda (Agricultural Economics and Agribusiness);
- University of Limpopo (Nematology and Horticulture);
- University of North West (Centre for Agribusiness and Entrepreneurial Skills Training); and
- University of Fort Hare (Faculty of Science & Agriculture and Department of Agricultural Economics & Extension).
These institutions are supported, over the past 6 years, intermittently depending on the availability of finances.
The LBUAC programme commenced in 2001, over the past 15 years, Land Bank spent a total R10.185m on the programme. Through the monitoring and evaluation processes of the programme, achievements have been recorded in the areas of Research and Capacity Building, Farmer Support and Agricultural Innovation.
FAIS OMBUD
- Not applicable
- (i) No funding provided
(ii) No funding provided
PIC
(b)(i) and (ii) The Public Investment Corporation (PIC) does not fund any institution of research and development domestically and/or internationally.
The rest of the question falls away.
SAA
SAA does not fund including by way of discretionary funding any institution of research and development domestically and internationally.
SARS
SARS doesn’t have funded arrangements for the purposes of research and development purposes, where SARS is in need of such services these services are procured through the stipulated procurement processes.
SASRIA
Sasria SOC Limited has not funded any institution of research and development.
TAX OMBUD
(a) The Office of the Tax Ombud is not funding any institution of research and development (i) domestically and (ii) internationally.
13 December 2017 - NW3759
Shivambu, Mr F to ask the Minister of Finance
(1)Whether (a) his department and/or (b) entities reporting to him procured services from a certain company (Travel with Flair); if so, (i) what services were procured in each case and (ii) what is the total amount that was paid to the specified company in each case; (2) whether the specified company provided services related to international travel to (a) his department and/or (b) entities reporting to him; if so, (i) what is the name of each person who travelled, (ii) what was the travel route and (iii) what is the total amount that was paid for each person?
Reply:
NATIONAL TREASURY
(1)(a) National Treasury appointed a certain company on contract for the period July 2008 to November 2010.
(1)(a)(i) The following services were procured: Air travel; Accommodation; Car rental; Chauffeuring services and Venue hire.
(1)(a)(ii) |
2008/09 |
2009/10 |
2010/11 |
Total |
R22 914 518.12 |
R33 675 655.41 |
R32 720 835.50 |
R89 311 009.03 |
(2)(a) Yes.
(2)(a)(i- iii) The department is not in a position to provide such detail.
ASB
The Accounting Standards Board has not procured any services from Travel with Flair.
CBDA
(1) (b) Co-operative Banks Development Agency uses the service provider of National Treasury for all travel services. The service provider is WingsNaledi Travel Management.
DBSA
- (b) yes once in 2015
- For booking accommodation
- Total amount was for R 12,366.90
- (a)(b) No
(i) (ii)(iii) N/A
FSB
1. (a) Not applicable
(b) No, in respect of the Financial Services Board
2. Not applicable
FIC
(1)(b) The Financial Intelligence Centre does procure services from Travel with Flair.
(1)(b)(i) Services procured include finding appropriate flights and accommodation for official travel as per Travel Policy.
(1)(b)(ii) No payments to date as a new contract with Travel with Flair commenced on 1 November 2017. Costs for upcoming payment include:
-
- Hotel accommodation R16 855
- Airline tickets R35 496
- Travel agent’s service fee R 3 790
(2)(b) Travel with Flair has provided services to the Financial Intelligence Centre in the form of bookings and travel arrangements for official international travel as per Travel Policy.
(2)(b)(i) Official: Ms N Mtshali.
(2)(b)(ii) Travel route: Johannesburg/Seychelles/Johannesburg.
(2)(b)(iii) Amount incurred: R47,000.00 (accommodation and travel agent’s service fee)
GEPF
The GEPF does not make use of the service provider, Travel with Flair.
GPAA
(1)(b) Yes, between 2010/11 and 2015/16, the Government Pensions Administration Agency (GPAA) procured services from Travel with Flair (i.e. Travel with Flair was the appointed service provider for all travel of GPAA officials).
(1)(b)(i) The following services with associted costs were procured from Travel with Flair for the period mentioned in response (1)(b) above:
Description |
Amount (R) |
Local Air Travel |
19,416,396 |
Road Transport |
1,477,135 |
Local Accommodation |
40,294,735 |
Car Rental |
7,430,749 |
Foreign Air Travel |
120,948 |
Foreign Accommodation |
71,981 |
(2) whether the specified company provided services related to international travel to (a) his department and/or (b) entities reporting to him; if so, (i) what is the name of each person who travelled, (ii) what was the travel route and (iii) what is the total amount that was paid for each person? NW4253E
Responses
(2)(b) Yes, between 2013/14 and 2015/16, the Government Pensions Administration Agency (GPAA) procured services from Travel with Flair relating to international travels of GPAA officials.
(2)(b)(i),(ii),(iii) See below for names of officials travelled overseas including routes and amount.
Name of official |
Route |
Amount (R) |
Dr Clifford Ferguson |
London, UK |
32,605 |
Dr Clifford Ferguson |
London, UK |
27,237 |
Mr Goolam Aboobaker |
London, UK |
71,043 |
Mr Jay Morar |
California, USA |
33,425 |
Dr Sefiso Khumalo |
Ottawa, Canada |
28,619 |
IRBA
- (b)The IRBA has never procured services from Travel with Flair.
- (b)Travel with Flair has never provided the IRBA with services related to international travel.
PFA
The Office of the Pension Funds Adjudicator has never made use of the services of Travel with Flair.
LAND BANK
Land Bank has not procured any services from Travel with Flair. Travel with Flair is currently not a registered vendor on the Land Bank service provider database. To date, no payments were made to Travel with Flair by Land Bank.
FAIS OMBUD
1. (a) Not applicable
(b) The FAIS Ombud has procured services from Travel with Flair. The details for the current and previous financial year are as follows:
Date |
Services |
Amount |
June 2016 |
Flights and transfers for graduate trainees to attend interviews for graduate trainee programme |
R58 389.29 |
June 2016 |
Flights, accommodation and transfers for annual report launch video |
R10 206.94 |
November 2016 |
Flights, accommodation and transfers for graduate trainee programme to East London law school |
R17 799.08 |
November 2016 |
Flights, accommodation and transfers for graduate trainee programme to Cape Town law school |
R24 329.70 |
November 2016 |
Flights, accommodation and transfers for graduate trainee programme to Polokwane law school |
R20 211.99 |
March 2017 |
Transport to Insurance Seminar |
R1 314.10 |
March 2017 |
Transport to Credit Ombud launch |
R1 434.10 |
June 2017 |
Flights and transfers for graduate trainees to attend interviews for graduate trainee programme |
R16 753.98 |
August 2017 |
Flights, accommodation and transfers to Gauteng and Cape Town for annual report launch video |
R21 514.70 |
October 2017 |
Flights, accommodation and transfers for attendance of FPI conference in Cape Town |
R8 432.58 |
October 2017 |
Flights, accommodation and transfers for graduate trainee programme to Cape Town |
R20 950.73 |
2. (a) Not applicable
(b) Travel with Flair did not provide any services related to international travel for the FAIS Ombud during this financial year. In the previous financial year, an order was placed with Travel with Flair for travelling to the International Ombud Schemes conference, which was held in Yerevan. This order was, however, cancelled following terror attacks at the Turkey airport, which was to be the airport where connecting flights would have been boarded.
PIC
1. The Public Investment Corporation followed a procurement process in line with its procurement policies and the Public Finance Management Act, 1999 (Act 1 of 1999) at the beginning of 2016, where after Club Travel was appointed as service provider for the PIC. During the financial year 2016/17 to date no services were procured from Travel with Flair.
2. Rest of the question falls away.
SAA
1. Travel with Flair does not appear on SAA‘s supplier system as a supplier or having been paid for any services. The heads of division and subsidiaries have also confirmed that they have not procured any services from Travel with Flair. Accordingly, SAA has not procured any services from Travel with Flair.
2. Travel with Flair has not provided services related to international travel to SAA.
3. Travel with Flair is a travel agency and as such has a retail trade agreement with SAA, which entails that they book and ticket SAA’s passengers for commission. In essence, Travel with Flair is part of SAA’s distribution channel.
SARS
SARS does not have Travel with Flair as a vendor on its system and has not contracted any services from the said entity.
SASRIA
Sasria SOC Limited have not used Travel with Flair to procure services.
TAX OMBUD
The Office of the Tax Ombud has never procured any service from Travel with Flair.
13 December 2017 - NW3236
Topham , Mr B to ask the Minister of Finance
(a) What are the relevant details of the (i) total expenditure and (ii) breakdown of expenditure on catering services for the National Treasury in Cape Town since 1 April 2017 and (b) what is the name of each supplier of catering services?
Reply:
(a)(i) |
(a)(ii) |
(b) |
R27 763.70 |
R1 567.00 |
Pepenero Restaurant |
R1 886.70 |
Fatima Ashraff Caterers CC |
|
R24 310.00 |
Feedem Pitseng Pty Ltd |
13 December 2017 - NW2443
Shivambu, Mr F to ask the Minister of Finance
Do any employees of (a) the National Treasury, (b) Sasria SOC Ltd and/or (c) SNOW Consultants any entities reporting to him (i) have ownership shares in and/or (ii) sit on the board of a certain firm (name and details furnished)?
Reply:
NATIONAL TREASURY
(a)(i)(ii) No, none that National Treasury is aware of, as there are no disclosures in this regard.
ASB
None of the employees of the Accounting Standards Board owns shares in or sit on the board of the firm (name and details furnished)
CBDA
No employees of the Co-operative Banks Development Agency (CBDA) (i) have ownership share in and/or (ii) sit on the board of a certain firm
DBSA
- (b) N/A
( c) NONE
FSB
(c) None from the FSB. (i) N/A (ii) N/A
FIC
The Financial Intelligence Centre does not have ownership shares in and / or do not sit on the board of any firm
GEPF
The GEPF does not have ownership shares nor does it have representation on the Board of this firm.
GPAA
i. No employees at the GPAA have ownership shares in (b) Sasria and (c) Snow Consultants.
ii. The information is according to the 2016/2017 Department of Public Service and Administration's E-disclosure system.
CATEGORY |
NAME OF EMPLOYEE |
BELONG TO BOARD OF CERTAIN FIRMS |
COMMITTEE |
FIRM |
SMS |
MU MNGQIBISA |
YES |
Chairperson of the Advisory Board. |
The Compensation Fund (Dept. of Labour) |
SMS |
KG SUKDEV |
YES |
Investment & Actuarial Committee Meeting and Board |
Land Bank Life Insurance Company and Land Bank Insurance Company |
IRBA
The IRBA hereby declares that:
- We do not have ownership shares in SNOW Consultants.
- We do not sit on the Board of SNOW Consultants.
PFA
(c)(i) No
(ii) No
LAND BANK
We are not aware of any Land Bank Group staff member with any shareholding or Board membership of Snow Consultants as per the annual declaration of interest forms submitted during December 2016/January 2017. The Land Bank Group will be conducting its annual ‘Declaration of Outside Interests’ to identify any potential conflicts of interest again in October 2017 and will be able to furnish updated information in December 2017.
FAIS OMBUD
- N/a
- N/a
- No ownership or members of the board of the firm.
PIC
No PIC employees have shares in the company or serve on its board.
SAA
None of SAA employees has ownership shares in and/or sits on the board on SNOW Consultants.
SARS
No, Sasria / any entity reporting to Sasria do not have ownership shares, nor sit on the Board of Snow Consultants Incorporated.
TAX OMBUD
- No employee of the OTO owns shares in and/or sits in the board of Snow Consultants.
11 December 2017 - NW3359
Lees, Mr RA to ask the Minister of Finance
(1)What are the details of all passengers who were prevented from boarding SA Airways (SAA) flights from Munich to Johannesburg on (a) 22 July, (b) 23 July and (c) 24 July 2017; (2) whether the specified passengers received any form of compensation for being prevented from boarding the specified flights; if not, why not; if so, what amount in compensation was awarded to each passenger; (3) whether all affected passengers received the compensation immediately in Munich; if not, what are the relevant details of the payment arrangements; (4) whether all affected passengers have received compensation; if not, (a) why have compensation payments not been made to all affected passengers, (b) by which date will payments be made and (c) how will payments be made?
Reply:
1. Refer Annexure A.
2. Yes. All passengers received EUR600 in form of vouchers as per EU regulations. In addition they were accommodated in hotels and provided with meal vouchers.
3. Yes. The vouchers were handed over to the passengers in Munich.
4. Yes. All affected passengers received compensations in the form of vouchers for EUR600.
11 December 2017 - NW3803
Maynier, Mr D to ask the Minister of Finance
(1)Whether the SA Revenue Service (SARS) ITA34 Notice of Assessment Income tax forms of certain persons (Mr AK Gupta and Mr RK Gupta),(a) has been released by the SARS as public information notwithstanding the provisions of section 69 (2)(d) of the Tax Administration Act, Act 28 of 2011; if so, what are the relevant details; if not; (2) Whether he has found that the Notice of the Income Tax Assessment Forms, ITA34, of the specific persons are authentic; if not, what is the position in this regard; if so, what are the relevant details in each case?
Reply:
1. The Tax Administration Act has specific secrecy requirements pertaining to the confidentiality of taxpayer information and as such SARS does not discuss or release information pertaining to the tax affairs of taxpayers unless specifically allowed for by the provisions of Chapter 6 of the Tax Administration Act. The provisions of 69(2) (d) of the Tax Administration Act speaks to allowing a senior SARS Official to disclose information which is public information. The ITA34’s of any taxpayer cannot be regarded as public information as set out in the Act.
2. Due to the provisions of Chapter 6 of the Tax Administration Act, and in specific the provisions of section 69 of that Act, SARS will not discuss the validity or not of the said documents.
06 December 2017 - NW3215
Lees, Mr RA to ask the Minister of Finance
(a) What number of employees left the employ of the SA Revenue Service (SARS) since 1 January 2017 and (b) in respect of each specified employee, what are the details of the (i) names, (ii) qualifications, (iii) experience held, (iv) number of years of service at SARS, (v) position held, (vi) date of resignation and (vii) reasons for leaving the employ of SARS, including reasons given by each employee in case of resignations?
Reply:
a) In total 506 staff members left the organisation since 01 January 2017.
b) In respect of each specified employee;
(i) According to the Protection of Personal Information (POPI) act no. 14 of 2013, SARS is unable to disclose the names of the employees.
(ii) The qualification profile of the staff that left the organisation is varied as can be seen from the table below with the top three qualification categories being School education, Diplomas and Degrees.
Type of Qualification |
Count of EID |
Doctorate Degrees |
1 |
Masters Degrees |
15 |
Honours Degrees |
24 |
Graduate Degrees |
88 |
Diplomas |
67 |
Certificates |
38 |
Programmes |
5 |
School Education |
161 |
No Qualification recorded |
107 |
Grand Total |
506 |
iii/iv/v
All jobs in SARS are allocated to specific job families. The job family denotes the type of work traditionally done in that family. This does not
represent a department or division and a specific division will have a number of people from different job families in it. Attritions per Job
Family, Average Age and years of service (YOS) are captured in the table below.
Job Family |
No of Employees |
Average of YOS |
Average of Age |
Administration & Support |
52 |
21.37 |
50.58 |
Audit |
58 |
17.91 |
44.19 |
Branding & Communications |
2 |
15.00 |
50.00 |
Business Process Management |
2 |
12.00 |
44.50 |
Corporate Real Estate |
2 |
5.00 |
40.00 |
Customer Service |
111 |
18.25 |
44.81 |
Customs & Excise |
44 |
12.77 |
40.00 |
Debt Management |
36 |
16.97 |
46.61 |
Finance |
7 |
12.86 |
47.14 |
Governance |
5 |
6.80 |
36.20 |
Human Resources |
21 |
11.19 |
43.19 |
Information Management |
7 |
6.43 |
40.71 |
Investigation |
10 |
14.30 |
45.90 |
IT: Development |
12 |
9.25 |
34.83 |
IT: Operations |
31 |
5.26 |
34.29 |
IT: Technology |
5 |
3.00 |
37.60 |
Legal |
27 |
10.85 |
43.04 |
Procurement |
5 |
3.60 |
35.60 |
Project Management |
10 |
4.10 |
33.40 |
Protection |
6 |
10.83 |
35.50 |
Quality Management |
8 |
16.88 |
49.00 |
Relationship Management & Coordination |
4 |
18.00 |
53.75 |
Research & Analysis |
7 |
13.14 |
44.57 |
Revenue Management |
1 |
9.00 |
40.00 |
Risk Management |
1 |
27.00 |
53.00 |
Strategic Management |
3 |
17.67 |
47.33 |
Enforcement |
9 |
11.56 |
42.89 |
Border Control |
11 |
13.09 |
38.36 |
Financial Accounting |
4 |
8.75 |
34.00 |
Processing |
5 |
28.80 |
52.40 |
Grand Total |
506 |
14.78 |
43.38 |
vi. Although SARS request staff to indicate reasons for resigning from the organisation, employees are not compelled to provide a reason.
Below is a breakdown of the staff that left the organisation in the last 10 months and the reasons for exiting:
Resignation Reasons |
Count of EID |
Accepted a position at the Tax Ombud |
2 |
Benefits |
1 |
Career prospect |
11 |
Contract Expired |
1 |
Contract Expire-Short Term Contract |
1 |
Dissatisfied with Working Environment |
2 |
Misfit in current role |
2 |
Other (none of the offered exit options applied) |
5 |
Personal Reasons |
85 |
Reason not specified (staff member chose not to offer an exit reason) |
81 |
Recognition for work performance |
2 |
Relocation |
1 |
Remuneration |
5 |
Secured better prospects |
1 |
Working hours |
1 |
Other Career Opportunity |
103 |
Resume Studies |
12 |
Contract Expire |
6 |
Actuarial over 55 (resigned for early retirement) |
3 |
End of Learning Contract |
2 |
Emigrated |
9 |
Pending Disciplinary Action |
1 |
Dissatisfied with Supervision |
1 |
Health Reasons |
5 |
Dissatisfied with Location |
1 |
Grand Total |
344 |
Below is a summary of the attrition numbers which exclude trainee/seasonal workers.
Period |
Death |
Resignation |
Retirement |
Termination (misconduct/incapacity) |
Total |
Jan’17-Oct’17 |
39 |
344 |
83 |
40 |
506 |
06 December 2017 - NW3804
Maynier, Mr D to ask the Minister of Finance
Whether any (a) directives in terms of section 6 (4), (b) regulations in terms of section 16 of the Public Investment Corporation Act, Act 23 of 2004 and/or (c) strategic intent statement have been issued and/or prescribed to the Board of the Public Investment Corporation in the 2017-18 financial year; if not, in each case, why not; if so, what are the relevant details in each case?
Reply:
No directives in terms of the Public Investment Corporation Act, 2004 (Act 23 of 2004) or strategic intent statement have been issued to the Board of the Public Investment Corporation in the 2017/18 financial year.
06 December 2017 - NW2987
Lees, Mr RA to ask the Minister of Finance
(1)Have any members of the (a) SA Airways (SAA) (i) board of directors and/or (ii) management and/or (b) National Treasury engaged in any correspondence with any persons associated with the Public Investment Corporation and/or the Government Employees’ Pension Fund on matters relating to SAA during the six months ending on 30 September 2017; if so, what are the details of each piece of correspondence in terms of the (aa) dates of each piece of correspondence, (bb) names of the persons (aaa) sending, (bbb) receiving and (ccc) copied into the correspondence and (cc) purpose and contents of each piece of correspondence; (2) whether he will furnish Mr R A Lees with copies of each piece of correspondence; if not, why not; if so, by what date?
Reply:
1. Yes, members of the SA Airways (SAA) board and management did engage in correspondence with the Public Investment Corporation (PIC) during the six months ending 30 September 2017. The first correspondence between SAA and PIC was on 7 March 2017 where SAA requested a meeting with representatives of PIC Management. Thereafter, various correspondence were sent between SAA and PIC management dealing, inter alia, with the signing of non-disclosure agreements between SAA and PIC for the PIC to access information during the due diligence process. During the due diligence process there were also correspondence on matters such as risk management, financial management, environmental, social and governance matters (ESG matters), etc, between SAA and the respective PIC teams.
2. In line with its standard practices and procedures, the PIC and SAA entered into a non-disclosure agreement and therefore copies of the correspondence between SAA and PIC, cannot be made available.
05 December 2017 - NW3327
Shivambu, Mr F to ask the Minister of Finance
(1)Whether the (a) chief executive officer and (b) chief financial officer of entities reporting to the National Treasury are employed on a permanent basis; if not, (2) Whether the specified officers are employed on a fixed term contract; if so, (a) what are the names of each of the officers and (b) when (i) was each officer employed and (ii) will each officer’s contract end?
Reply:
1. (a) The Chief Executive Officer(s) of the Land Bank, Development Bank of Southern Africa, SASRIA, South African Airways (SAA), the Public Investment Corporation (PIC), Independent Regulatory Board of Auditors (IRBA), Financial Services Board (FSB), Financial Intelligent Centre (FIC), Government Pensions Administration Agency (GPAA), Office of Pension Fund Adjudicator (OPFA), Cooperatives Banks Development Agency (CBDA), Financial Advisory Intermediary Services (FAIS), Financial and Fiscal Commission (FFC) and South African Revenue Service (SARS) are appointed on a fixed term contract.
The Head of the Government Technical Advisory Centre (GTAC) is currently in an acting capacity and the Chief Executive Officer for the Office of Tax Ombud (OTO) is employed on a permanent basis.
(b) The Chief Financial Officer(s) for the Land Bank, DBSA, SASRIA, PIC, SAA, IRBA, GTAC, FIC, GPAA, CBDA, FAIS, FFC, OTO and SARS are appointed on a permanent basis and the CFOs for FSB and OPFA are employed on contract basis.
2. The Chief Executive Officers details
Entity |
|
|
|
Land Bank |
Mr TP Nchocho |
1 January 2015 |
31 December 2019 |
DBSA |
Mr P Dlamini |
1 October 2017 |
30 September 2022 |
PIC |
Mr D M Matjita |
1 December 2014 |
31 December 2019 |
SASRIA |
Mr C Masondo |
16 May 2017 |
17 May 2022 |
SAA |
Mr V Jarana |
1 November 2017 |
31 October 2022 |
IRBA |
Mr B P Agulhas |
1 December 2008 |
31 March 2018 |
FSB |
Mr D Tshidi |
1 July 2008 |
Advent of the Twins Peaks |
Mr P Kekana |
1 September 2015 |
30 August 2018 |
|
GTAC |
Mr S Khan |
26 January 2017 |
Acting no timeframe |
FIC |
Mr M Michelle |
1 January 2017 |
31 December 2017 |
GPAA |
Mr K Sukdev |
1 August 2015 |
31 July 2020 |
OPFA |
Ms M Lukhaimane |
1 July 2013 |
30 June 2018 |
CBDA |
Ms O Matshane |
14 May 2012 |
12 May 2018 |
FAIS |
Ms N Bam |
1 April 2017 |
30 April 2018 |
FFC |
Mr V Mbethe |
12 September 2016 |
Acting no timeframe |
SARS |
Mr T Moyane |
23 September 2014 |
23 September 2019 |
The Chief Financial Officer details
Entity |
|
|
|
FSB |
Mr P Kekana |
1 September 2015 |
30 August 2018 |
30 November 2017 - NW3083
Maynier, Mr D to ask the Minister of Finance
Whether a certain person (Prof Malikane) (a) communicated and/or (b) made a submission(s) to the Office of the Public Protector on any matter in relation to the Report on an Investigation into Allegations of Maladministration, Corruption, Misappropriation of Public Funds and Failure by the South African Government to Implement the CIEX Report and to Recover Public Funds from ABSA Bank [Report No. 8 of 2017/2018]; if not, in each case, why not; if so, in each case, what are the relevant details?
Reply:
Only the office of Public Protector can respond to the question above.
30 November 2017 - NW3187
Mathys, Ms L to ask the Minister of Finance
(1)What are the details including the ranks of service providers and/or contractors from which (a) the National Treasury and (b) the entities reporting to it procured services in the past five years; (2) what (a) service was provided by each service provider and/or contractor and (b) amount was each service provider and/or contractor paid; (3) (a) how many of these service providers are black-owned entities, (b) what contract was each of the black-owned service providers awarded and (c) how much was each black-owned service provider paid?
Reply:
The information required is not mandatory fields that suppliers have to provide when registering on the Central Supplier Database (CSD) and therefore cannot be provided..
30 November 2017 - NW1636
Maynier, Mr D to ask the Minister of Finance
(1) Whether his spouse accompanied him on any official trip undertaken to attend an international investor road show to interact with international financial institutions, international investors and ratings agencies in (a) Washington, (b) New York and (c) Boston in the United States of America; if not, in each case, why not; if so, in each case, what was the (i) total cost and (ii) detailed breakdown of costs incurred for his spouse to accompany him on the trip(s); (2) whether he charged any expenses incurred by his spouse to his official corporate credit card; if not, why not; if so, what was the (a) total amount and (b) detailed breakdown of the amount(s) charged in each case?
Reply:
(1)(a) |
Yes |
(1)(a)(ii) |
R145 168.72 |
(1)(a)(ii) |
Air travel : R131 935.43 Daily allowance : R13 233.29 Accommodation: R Nil |
(1)(b) |
Yes |
(1)(b)(ii) |
(1)(b)(ii) |
||
(1)(c) |
No |
(2) No corporate credit card is issued to the Minister
(2)(a) Not applicable
(2)(b) Not applicable
28 November 2017 - NW2444
Shivambu, Mr F to ask the Minister of Finance
(a) In how many instances has (i) the National Treasury and/or (ii) any of the entities reporting to him used a certain firm of consultants (SNOW Consultants), (b) how much were the consultants paid in each case, (c) for what were they paid and (d) what was the monetary value of the tender for which their services were needed?
Reply:
NATIONAL TREASURY
(a –d) The National Treasury has not utilised the services of SNOW Consulting.
ASB
The Accounting Standards Board has not made use of the firm of consultants, nor have they paid them any money.
CBDA
The Co-operative Banks Development Agency has (a) (i) not in any instance and/or (ii) has not used a certain firm or consultants (SNOW Consultants), (b) no payment was made in any case, (c) no services were rendered by them and, (d) no monetary value of any tender were needed.
DBSA
- (i) (ii) NANE
- (c) (d) N/A
FSB
(a) (ii) The FSB has never utilized the services of Snow Consultants (b) N/A (c) N/A (d) N/A.
FIC
The Financial Intelligence Centre has never utilized the services of Snow Consultants
GEPF
The GEPF has never made use of the services of SNOW Consultants.
GPAA
- The Government Pensions Administration Agency (GPAA) has never used SNOW Consultants.
- Not applicable.
- Not applicable.
- Not applicable
IRBA
The IRBA hereby declares that we did not use the services of SNOW Consultants.
PFA
(a)(ii) The OPFA has never used the services of SNOW Consultants.
LAND BANK
Land Bank has not engaged the services of SNOW Consultants.
FAIS OMBUD
The FAIS Ombud has never used the firm of consultants.
PIC
The PIC has not used this firm of consultants.
The rest of the questions falls away.
SAA
SAA and its subsidiaries have never used SNOW Consultants.
SARS
The South African Revenue Service (SARS) has not procured services from the Snow Consultants nor does it have the supplier registered on its database.
Sasria SOC Limited has used Snow Consultants Incorporated.SASRIA
Year 2013 R547 023.94
Year 2014 R248 805.00
Year 2015 R307 999-50
All expenses relate to interior designs for Sasria’s building during different phases
TAX OMBUD
The Office of the Tax Ombud has never used SNOW Consultants.
27 November 2017 - NW2926
Shivambu, Mr F to ask the Minister of Finance
(a) What is the total number of employees that were employed at the Ministry of Finance on 30 March 2017, (b) of those employees, how many were (i) male and (ii) female and (c) what were (i) their positions and (ii) salary levels?
Reply:
a) There were 17 employees in the Ministry of Finance on 30 March 2017.
b (i & ii) GENDER |
(c) (i) POSITION |
(c))(ii) SALARY LEVEL |
|
1 |
Female |
Assistant Administrative Secretary |
10 |
2 |
Female |
Administrative Secretary |
11 |
3 |
Female |
Appointment Secretary |
12 |
4 |
Female |
Registry Clerk |
5 |
5 |
Female |
Registry Clerk Supervisor |
7 |
6 |
Female |
Personal Assistant |
9 |
7 |
Female |
Administrative Secretary |
13 |
8 |
Female |
Director: Special Projects |
13 |
1 |
Male |
Parliamentary Officer |
13 |
2 |
Male |
Parliamentary Officer |
11 |
3 |
Male |
Director: Office of the Deputy Minister |
13 |
4 |
Male |
Registry Clerk |
5 |
5 |
Male |
Chief of Staff |
14 |
6 |
Male |
Special Advisor |
15 |
7 |
Male |
Special Advisor |
16 |
8 |
Male |
Strategic Projects Advisor |
15 |
9 |
Male |
Registry Clerk Supervisor |
10 |
27 November 2017 - NW1634
Maynier, Mr D to ask the Minister of Finance
Whether he has entered into any discussion about reinstituting the Counter Money Laundering Advisory Council; if not, why not; if so, what are the relevant details?
Reply:
Yes, a meeting was held with the Minister of Justice and officials regarding the implementation of the Financial Intelligence Amendment Act, which included a discussion on the consultative mechanisms to replace Counter Money Laundering Advisory Council. At the meeting it was agreed that an Inter-Departmental Anti-Money Laundering and Combating the Financing of Terrorism Forum be set up to operate initially, to improve the quality of consultation for implementation, after which we will consider how best to legislate such consultation forums.
The mandate of the Committee would be to promote discussion, collaboration and coordination between the relevant law enforcement agencies, government departments and regulatory authorities to ensure that the South African authorities are more effective in implementing both the spirit and letter of the complete legal framework against money laundering and terrorist financing. In addition, a consultative structure to facilitate engagements with accountable institutions in the private sector is also being established, with a Banking Sector AML/CFT Steering Committee already having been established. Treasury has published a consultation document to seek public comments on these new consultation mechanisms We will monitor how well these consultation forums work over the year or two, and thereafter make a decision on how best to formalize the consultation forums.
There is therefore no intention to legislate for the continuation of the CMLAC, as we want to deepen and improve our consultative mechanisms to strengthen implementation. The CMLAC played a significant role in the drafting of the initial regulations of the FIC Act when it was first enacted in 2003, but was not as effective as a forum for implementation. This was pointed out in the explanatory memo of the Amendment Bill when it was tabled in Parliament in 2015.
24 November 2017 - NW2433
Maynier, Mr D to ask the Minister of Finance
Whether a certain person (Mr Matsobane Matlwa (CFO)) was escorted off the SA Revenue Services (SARS) premises by the security personnel following the resignation and/or termination of services; if not, why not; if so, (a) why was it necessary to have the specified person escorted off the SARS premises by security personnel, (b) what are the details of the security personnel that escorted the specified person off the SARS premises and (c) are the security personnel that escorted the specified person off the SARS premises normally assigned to ensure the personal security and well-being of the SARS Commissioner?
Reply:
Mr Matsobane was not escorted from the SARS premises following his resignation by security services.
24 November 2017 - NW2728
Brauteseth, Mr TJ to ask the Minister of Finance
Question: 1 (1) With regard to the contract concluded between SA Airways Technical and a certain company (Allen Aircraft Radio Corporation), (a) on what date was the tender for the specified contract first advertised, (b) what were the requirements to be met in order to tender for the contract, (c ) how many bids were received after the first advertisement? (d) which companies responded after the first advertisement? Question : 2 (a) why was the tender for the specified contract advertised on multiple occasions? (b) what are the full relevant details of each additional (i) placement date; and (ii) list of criteria that had to be met in the bidding process for the specified tender?
Reply:
Question 1
1(a) The tender for the specified contract was first advertised on 16 February 2013.
1(b) A 90/10 principle was applied in accordance with the provisions of the Preferential Procurement Policy Framework Act (“PPPFA”) regulations. The requirements to be met, i.e. the evaluation criterion were follows:
CRITICAL CTRITERIA
All bidders are required to meet the following critical criteria:
- Sufficiently experienced;
- Equipped;
- Is of sufficient sound financial standing to carry out satisfactorily any contract that may be awarded pursuant to the tender;
- Must be certified for FAA and/or EASA as repair station;
- Must offer an access pool or exchange basis;
- Must bid on a minimum of 95% of the main list (Airbus / Boeing or both);
- Must bid on a minimum of 50% of the secondary list;
- Must include a proposal for reciprocal work;
- Must be a 24 hour 365 service;
- Must have an Internet Based Order and Reporting System; and
- Must meet turnaround times as specified
Price & BBBEE Evaluation Criteria:
- PRICE - 90
- BBBEE - 10
Below is a breakdown of areas measured under the 90 points on price.
Area to be measured under Price |
Points |
Repair Rate (flight hour) |
35 |
Base kit value (%) |
5 |
Loan Rate (Flight Hour) |
2 |
No Fault found rate (%) |
2 |
BER Rate(%) |
2 |
AD’s Mandatory (Cost Thresholds) |
5 |
AD’s Non-mandatory (Cost Thresholds) |
3 |
Warranties |
5 |
Reciprocal Work (Value per annum in %) |
20 |
Soft Factors (Completeness of bid and responses) |
1 |
Shipping Rate (Per Flight hour) |
2 |
Handling / Exchange rate (see template) |
18 |
Total points |
100 |
1(c) Nine bids were received.
1(d) The following companies responded to the first tender:
- SR Technics
- Sabena Technics
- AJ Walters Aviation – their bid was for Boeing only not Airbus.
- Air France Industries
- Israel Aerospace Industries – Boeing only fleet
- HAECO
- AAR and SRS aviation
- Lufthansa Technics
- OEM Services – Boeing only very limited Airbus
Question 2
- The specified tender was first advertised in February 2013 and was finally awarded in May 2016 after been advertised and retracted on only two occasions. It is important to note that in the intervening period, there were three changes in the board of directors of SAAT (the board), each with different views and strategy, which had an impact on the tender process. In the main, the reasons for multiple retractions and re-advertising were as follows:
- In light of the cash-flow challenges and the drive to significantly reduce operational costs around 2013, SAAT resolved to review its major supplier contracts. These contracts include the Component support (specified contract), logistics and Aircraft tyre supply contracts. SAAT was considering negotiating for discounts and/or taking an integrated approach to awarding the said contracts.
Management had therefore requested the board to extend the contracts and delay the RFP process to provide an opportunity for the business to align the scope of the combined services to the Long-Term Strategy (LTTS); also to consider a number of smart solutions available within the global MRO industry.
Initially, SAAT’s objective was to pursue an integrated solution to the components Support and Logistics/shipping costs in order to not only reduce costs of the individual contracts but to also derive benefits out of scale discounts through joint procurement. In addition to which, SAAT would also pursue localisation as part of the award of the Tyre Supply contract.
- Around April 2013, there were discussions about a possible merger between SAAT and SA Express MRO, and a possibility of Denel Aviation lagging behind. A turnaround strategy document was drafted for discussion. Because of this, an original extension on the Component support agreement was granted until the end of March 2014, the period, which the potential merger was envisaged to have been finalized.
- Management requested the board to allow the Supply Chain Management (SCM) team to test the market so as to understand what are the normal prices on the market for component tender. SAAT has had a contract with Air France all along, as a result the only pricing the company understood was that by Air France, which was far more expensive that what was out on the market. The cost compression initiative was already applicable in this period therefore, SCM was obligated to obtain as much savings as possible from this tender to reach their target.
The request for extension was made to the board, and SCM only offered to extend the contract with Air France after they agreed to give SAAT a discount of 400 000 USD. This amount contributed towards the Cost compression
- Furthermore the retraction was effected as a risk mitigation measure on the part of SAAT to ensure that preferred bidder is able to deliver on the contracted services.
First tender
As per responses under Question 1 above.
Second Tender
Date of issue: 29 October 2014
Closing date: 2 December 2014
Evaluation Criteria:
SIGN-OFF SHEET – RFB AND WEIGHTING CRITERIA |
|
PROJECT: |
Aircraft Component Support II |
PRODUCT: |
Supply of aircraft component support service |
TENDER NUMBER: |
SP437/14 |
DATE: |
28 October 2014 |
1. Critical Criteria
Capacity to Deliver
(Incorporating: Track Record, Experience, Service/Product Supply, Equipment, Financial Standing and previous performance of bidders)
As SAAT’s service levels and reputation as a safe transport provider is dependent upon the quality of its service, it stands to reason that quality of the GOODS/Services and products utilised to provide that service, cannot be compromised. A tender shall be evaluated in terms of their capacity to deliver.
Bidders to comment on all of the requirements below:
A bid shall not be recommended for acceptance if the CFST required to make the recommendation has any doubt, based on reasonable grounds as to whether the Bidder: |
||
YES/NO |
COMMENT |
|
Is sufficiently experienced and equipped |
||
Is of sufficient sound financial standing to carry out satisfactorily any contract that may be awarded pursuant to the tender |
||
Must be certified for FAA and EASA as repair station |
||
Must offer an access pool or exchange basis |
||
Must bid on a minimum of 95% of the main list (Airbus/Boeing or both) |
||
Must bid on a minimum of 50% of the secondary list |
||
Must include a proposal for reciprocal work |
||
Must be willing to enter into a Partnership/Joint Venture with SAAT |
||
Must be a 24 hour, 365 days service |
Further to the above, this category will be subjected to the following scrutiny:
Internet Based Order and Reporting System |
||
YES/NO |
COMMENT |
|
The Bidder shall reflect the ability to report the sourcing, tracking and receiving of all components through an electronic system, that can be interfaced with any of SAAT’s Electronic Inventory Management Systems |
AOG Help Desk The bidder shall respond to SAAT’s request for components according to the following priorities: |
||||
YES/NO |
COMMENT |
|||
Priority |
Response Time |
Dispatch Time |
||
AOG |
1 hour |
First available flight (same day) |
||
CRITICAL |
3 hours |
Within 24 hours |
||
NORMAL/ROUTINE |
12 hours |
Within 72 hours |
||
Component Modifications Status |
||||
YES/NO |
COMMENT |
|||
The bidder shall supply components that are of the same modification status or better as stipulated in Appendix 1B |
Proposals received will be evaluated in terms of the following criteria. The method used is pre-determined and is both qualitative and quantitative and in line with the PPPFA 90/10 principle.
2. FUNCTIONALITY AND PRICING TEMPLATES
The following areas will be measured in terms of Functionality Criteria:
Area to be measured under PRICE |
Template |
Points |
Repair Rate (Flight Hour) |
Pricing Template |
30 |
Basekit Value (%) |
Pricing Template |
5 |
Loan Rate (Flight Hour) |
Pricing Template |
2 |
No Fault Found Rate (%) |
Pricing Template |
2 |
BER Rate (%) |
Pricing Template |
2 |
AD’s Mandatory (Cost Thresholds) |
Pricing Template |
3 |
AD’s Non-Mandatory (Cost Thresholds) |
Pricing Template |
3 |
Warranties |
Vendor Template |
5 |
Soft Factors (Completeness of bid and responses) |
Vendor Template |
1 |
Shipping Rate (Per Flight hour) |
Pricing Template |
2 |
Access Pool Rate (see template) |
Pricing Template |
15 |
Reciprocal Work (Value per annum in %) |
Vendor Template |
20 |
Partnership and Joint Ventures (JV’s) |
Vendor Template |
10 |
TOTAL |
100 |
- PRICE/BEE
Please take note that Pricing and BEE would be evaluated on 90/10 PPPFA principle
Criteria |
Points allocation |
Points Scored |
Price |
90 |
|
BEE |
10 |
|
TOTAL |
100 |
Joint Venture BEE level will be scored at this phase.
The total value of Reciprocal Work and Partnership should amount to 30% of the value of the contract, and below are the requirements to be considered.
Reciprocal Work should amount to 10% of the value of the contract, and it will be based on the following: |
||
Description of Services |
YES/NO |
COMMENT |
Any component overflow from the company to SAAT (based on the Aircraft types related to in the GTA). |
||
Additional work allocated to SAAT on aircraft components or components from airlines not part of the contract GTA) |
Partnership/Joint Venture should form 20% of the value of the contract, and it should include (not limited to): |
||
Description of Services |
YES/NO |
COMMENT |
Line Maintenance in Africa |
||
Base Maintenance from 3rd parties (C and D checks) |
||
Joint Procurement strategy |
||
Provide test equipment, supply drawings to build test equipment, removal of components from contract and reduction in rates ill form part of the partnership) |
||
Marketing |
||
Technical Training |
||
Sharing and placing of MBK items at different Line Stations i.e. Mauritius, London. |
Third Tender:
Date of issue: 14 July 2015
Closing date: 28 July 2015
Alternate third Tender:
Date of issue: 30 July 2015
Closing date: 10 August 2015
Evaluation Criteria
1. Critical Criteria
1.1 Capacity to Deliver
(Incorporating: Track Record, Experience, Service/Product Supply, Equipment, Financial Standing and previous performance of bidders)
As SAAT’s service levels and reputation as a safe transport provider is dependent upon the quality of its service, it stands to reason that quality of the GOODS/Services and products utilised to provide that service, cannot be compromised. A tender shall be evaluated in terms of their capacity to deliver.
Bidders to comment on all of the requirements below:
A bid shall not be recommended for acceptance if the CFST required to make the recommendation has any doubt, based on reasonable grounds as to whether the Bidder: |
||
YES/NO |
COMMENT |
|
If awarded the contract, the bidder must be able to set up, and offer services on the aircraft component immediately |
||
Is sufficiently experienced and equipped |
||
Is of sufficient sound financial standing to carry out satisfactorily any contract that may be awarded pursuant to the tender |
||
Must be certified for FAA and EASA as repair station |
||
Must offer an access pool or exchange basis |
||
Must bid on a minimum of 95% of the main list (Airbus/Boeing or both) |
||
Must bid on a minimum of 50% of the secondary list |
||
Must include a proposal for reciprocal work if NIPP is applicable |
||
Must be a 24 hour, 365 days service |
Further to the above, this category will be subjected to the following scrutiny:
Internet Based Order and Reporting System |
||
YES/NO |
COMMENT |
|
The Bidder shall reflect the ability to report the sourcing, tracking and receiving of all components through an electronic system, that can be interfaced with any of SAAT’s Electronic Inventory Management Systems |
AOG Help Desk The bidder shall respond to SAAT’s request for components according to the following priorities: |
||||
YES/NO |
COMMENT |
|||
Priority |
Response Time |
Dispatch Time |
||
AOG |
1 hour |
First available flight(same day) |
||
CRITICAL |
3 hours |
Within 24 hours |
||
NORMAL/ ROUTINE |
12 hours |
Within 72 hours |
Component Modifications Status |
||
YES/NO |
COMMENT |
|
The bidder shall supply components that are of the same or better modification status and age as stipulated in Appendix 1B |
Proposals received will be evaluated in terms of the following criteria. The method used is pre-determined and is both qualitative and quantitative and in line with the PPPFA 90/10 principle.
EVALUATION CRITERIA
Functionality and Pricing Templates
The following areas will be measured in terms of Functionality Criteria:
Area to be measured under PRICE |
Template |
Points |
Repair Rate (Flight Hour) |
Pricing Template |
50 |
Basekit Value (%) |
Pricing Template |
10 |
Loan Rate (Flight Hour) |
Pricing Template |
2 |
No Fault Found Rate (%) |
Pricing Template |
2 |
BER Rate (%) |
Pricing Template |
2 |
AD’s Mandatory (Cost Thresholds) |
Pricing Template |
3 |
AD’s Non-Mandatory (Cost Thresholds) |
Pricing Template |
3 |
Warranties |
Vendor Template |
3 |
Access Pool Rate (see template) |
Pricing Template |
25 |
TOTAL |
100 |
PRICE/BEE
Please take note that Pricing and BEE would be evaluated on 90/10 PPPFA principle
Criteria |
Points allocation |
Points Scored |
Price |
90 |
|
BEE |
10 |
|
TOTAL |
100 |
Fourth and Final Tender
Date of issue: 8 December 2015
Closing date: 19 January 2016
CRITICAL CRITERIA
Bidders to comment on all of the requirements below:
Compliance Requirements |
COMPLY YES/NO |
Is sufficiently experienced and equipped |
|
Is of sufficient sound financial standing to carry out satisfactorily any contract that may be awarded pursuant to the tender |
|
Must be certified for FAA and EASA as repair station |
|
Must offer an access pool or exchange basis |
|
No Fault Found Rate (20%) |
|
BER Rate (70%) |
|
AD’s Mandatory (Cost Thresholds set to $3 500.00) |
|
AD’s Non-Mandatory (Cost Thresholds set to $3 500.00) |
|
Warranties (Cession of warranties to reduce rates) |
|
Supplier Development* - (Must be equal to 10% of the value of the contract. Bidder to include a proposal) |
|
Reciprocal work* - (Must be equal to 10% of the value of the contract. Bidder to include a proposal) |
|
Bidder must be willing to enter into a Partnership/Joint Venture* with SAAT equal to 10% of contract value |
|
Must be a 24 hour, 365 days service |
Further to the above, this category was subjected to the following scrutiny:
Systems Interface |
COMPLY YES/NO |
The Bidder shall reflect the ability to report the sourcing, tracking and receiving of all components through an electronic system, that can be interfaced with any of SAAT’s Electronic Inventory Management Systems |
Components status |
COMPLY YES/NO |
The bidder shall supply components that are of the same modification status or better as stipulated in Appendix A |
Turn-around times (TAT) |
COMPLY YES/NO |
||
Priority |
Response Time |
Dispatch Time |
|
AOG |
1 hour |
First available flight (same day) |
|
CRITICAL |
3 hours |
Within 24 hours |
|
NORMAL/ROUTINE |
12 hours |
Within 72 hours |
Phase 2
PRICE AND BEE EVALUATION
Pricing Evaluation |
Points |
Price |
90 |
BEE |
10 |
TOTAL |
100 |
Take Note: None of the bidders were awarded any BEE points, as none of the ones that tendered with BEE partners furnished SAAT with a consolidated BEE certificate.
The elements below will be evaluated under the pricing category, and points allocated as indicated below based on the quoted bid price.
Area to be measured under PRICE |
Template |
Points |
Repair Rate (Flight Hour) |
50 |
|
Basekit Value (%) |
15 |
|
Loan Rate (Flight Hour) |
5 |
|
Access Pool Rate (see template) |
30 |
|
TOTAL |
100 |
Reciprocal Work should amount to 10% of the value of the contract, and it will be based on the following: |
|
Any component overflow from the company to SAAT (based on the Aircraft types related to in the GTA). |
|
Additional work allocated to SAAT on aircraft components or components from airlines not part of the contract GTA) |
|
Any maintenance services contracted to SAAT for which SAAT has got capability |
Partnership/Joint Venture (value) should form 10% of the value of the contract, and it should include (not limited) to: |
|
Line Maintenance in Africa |
|
Base Maintenance from 3rd parties (C and D checks) |
|
Joint Procurement strategy |
|
Provide test equipment, supply drawings to build test equipment, removal of components from contract and reduction in rates ill form part of the partnership) |
|
Marketing |
|
Technical Training |
|
Provide an inventory management system that will/can be integrated into AMOS for SAAT |
|
Sharing and placing of MBK items at different Line Stations i.e. Mauritius, London. |
Supplier Development (value)– must form 10% of the contract value, and it must entail the following: |
|
SAAT has embarked on a supplier development program with a list of nominated suppliers being approved by the SAAT Board to promote the development of our local economy. SAAT considers any mentorships, partnerships, skills transfers, knowledge transfers, assistance in developing a local company to become sustainable in an area that a local company currently does not have capability, SMME, job creation, training and development and/or any sustainable economic growth through revenues accumulated over the fulfilment period to be possible initiatives that are considered as supplier development. Other initiatives include research and development and/or technology transfer. As a result, bidders are requested to supply a proposal on how and what they would impart in terms of skills /training/technical information etc, to a local South African vendor. Bidder to indicate what value they would place on each area of development, based on the above, which they would be imparting to the local vendor. |
24 November 2017 - NW3660
Maynier, Mr D to ask the Minister of Finance
Whether (a) an investigation has been launched to determine who was behind the smear campaign that resulted in certain allegations against a certain person that were later found to be baseless and/or (b) any forensic investigations have been launched into any concerns of irregularities; if not, why not; if so, what are the relevant details in each case?
Reply:
a) Yes, the Public Investment Corporation (PIC) Board has launched an investigation to try and determine who was behind the smear campaign against a certain person at the PIC. Once concluded, a report will be submitted to the PIC Board.
b) With regards to the forensic audit mentioned in the Media Statement of the Minister of Finance dated 6 October 2017, the PIC Board has requested a meeting with the Minister of Finance to discuss certain matters. A date for this meeting is yet to be finalised. PIC would like to be given time to conclude these engagements.
24 November 2017 - NW3465
Shivambu, Mr F to ask the Minister of Finance
(1)How many officials and/or employees in his department were granted permission to have businesses and/or do business dealings in the past three financial years; (2) are any of the officials and/or employees that have permission to have businesses and/or do business dealings doing business with the Government; if so, (a) what was the purpose of each business transaction, (b) when did each business transaction occur and (c) what was the value of each business transaction?
Reply:
- Nil
- Nil
24 November 2017 - NW3193
Shivambu, Mr F to ask the Minister of Finance
Whether a tender was advertised when a certain person (name furnished) was commissioned to undertake research that resulted in the production of the research report titled The Ownership of JSE Listed Companies; if so, (a) on what date was the tender advertised, (b) what is the total number of bidders who responded to the advertisement, (c) who was the (i) second best bidder, (ii) third best bidder and (iii) what was the price of each specified bidder, (d) on what date was the specified person appointed, (e) for how long was the research commissioned and (f) what is the total amount paid for the tender; (2) Whether the National Treasury has the capacity to conduct research on the ownership of the overall economy, including listed, unlisted and informal entities; if not, why not; if so, why was the research put to tender?
Reply:
1. No tender was advertised, therefore, parts (a) to (f) of the question are not applicable. Ms Thomas was contracted under the single source rules in terms of Supply Chain Management guidelines[1].
2. The National Treasury only has the capacity to undertake some aspects of such study but often for once-off projects that are not planned for, such research would take officials away from other critical work. Furthermore, it was also important to secure the services of an independent expert rather than rely on the JSE or other active stakeholders more directly involved in the ownership debate. This paper is merely the start of a research process on this matter and the National Treasury is in the process of inviting local researchers to peer review the work of Ms Thomas, as well as similar papers available on the nature of ownership of listed companies in South Africa, so as to provide a credible basis for supporting the transformation debate in South Africa.
Supply Chain Management: A guide to Accounting Officers, 2011 ↑
24 November 2017 - NW3086
Van Der Walt, Ms D to ask the Minister of Finance
With reference to the reply of the Minister of Public Service and Administration to question 2809 on 2 October 2017 and the announcement during the Budget Vote Speech on 24 February 2016 by the former Minister of Finance, Mr Pravin Gordhan, in which South Africans were informed that the Government will cut its wage bill by R25 billion over three years, (a) how does the total wage bill of the 2016-17 financial year compare to the 2015-16 financial year, (b) how does the first six months of the 2017-18 financial year compare with the first six months of the 2016-17 financial year and (c) what savings in the wage bill have been achieved due to austerity measures since this announcement for each financial year or part of it to date; (2) whether the Government is still on track in achieving its R25 billion savings on the wage bill in the specified period; if not, (a) why not and (b) what steps will he take to ensure that the targeted savings are achieved; if so, what are the relevant details; (3) what percentage of the Government’s total expenditure for the 2017-18 financial year was allocated to wages?
Reply:
1. (a) The wage bill has increased by 8.1 per cent between 2015/16 and 2016/17 financial years.
Table 1: Consolidated national, provincial and social security funds1
R million |
2015/16 |
2016/172 |
Per cent increase |
Compensation of employees |
427 995.5 |
462 611.2 |
8.1% |
1 Budget Review (2017, pp 214-215)
2 Revised estimate
(b) Wage bill information for the first six months of 2017/18 shows that the wage bill has increased by 7.4 per cent compared to the first half of 2016/17.
Table 2: Consolidated national and provincial government1
R million |
2016/17 |
2017/18 |
Per cent increase |
Compensation of employees: first half |
225,004.1 |
241,701.4 |
7.4% |
1 IYM reports, excludes National Parliament
(c) Wage bill reductions amounting to R25 billion were effected in 2017/18 (R10 billion) and 2018/19 (R15 billion). Assessment of savings for 2017/18 will only be possible at the end of the financial year.
2. Preliminary indications based on 2017/18 first half compensation spend are that government is broadly on track to achieving targeted savings on compensation budgets. A few national and provincial departments are, however, showing signs of excess pressures on their compensation budgets. The National Treasury will continue monitoring implementation of compensation budgets during the current financial year.
3. The share of total budget for 2017/18 allocated to compensation of employees is 33.5 per cent.
Table 3: Consolidated national, provincial and social security funds1
R million |
2017/18 |
Per cent of total budget |
Compensation of employees |
497 094.9 |
33.5% |
1 Budget Review (2017, pp 214-215)
24 November 2017 - NW3001
King, Ms C to ask the Minister of Finance
(1)What is the (a) total amount that was paid out in bonuses to employees in the National Treasury and (b) detailed breakdown of the bonus that was paid out to each employee in each salary level in the 2016-17 financial year; (2) What is the (a) total estimated amount that will be paid out in bonuses to employees in the National Treasury and (b) detailed breakdown of the bonus that will be paid out to each employee in each salary level in the 2017-18 financial year?
Reply:
1. (a) R10 885 524.00
(b)
Breakdown in Salary Level |
2016/2017 R’ 000 |
|
3 |
R6,091.12 |
|
4 |
R27,781.18 |
|
5 |
R137,093.13 |
|
6 |
R43,697.67 |
|
7 |
R455,784.70 |
|
8 |
R789,116.74 |
|
9 |
R697,121.29 |
|
10 |
R767,210.21 |
|
11 |
R1,342,342.30 |
|
12 |
R2,293,830.11 |
|
Band A (13) |
R3,169,086.49 |
|
Band B (14) |
R1,028,229.11 |
|
Band C (15) |
R128,139.95 |
These are the 2015/16 performance bonuses paid in the 2016/17FY
2. (a) R11 488 555.34
(b)
Breakdown in Salary Band |
2017/2018 R’ 000 |
|
3 |
R5,963.73 |
|
4 |
R15,700.25 |
|
5 |
R170,505.99 |
|
6 |
R35,185.33 |
|
7 |
R508,233.90 |
|
8 |
R817,633.27 |
|
9 |
R900,931.86 |
|
10 |
R661,233.88 |
|
11 |
R1,508,511.88 |
|
12 |
R2,362,751.95 |
|
Band A (13) |
R3,282,477.07 |
|
Band B (14) |
R821,337.44 |
|
Band C (15) |
R398,088.79 |
These are the 2016/17 performance bonuses paid in the 2017/18FY
which excludes cases that are not yet finalised