Questions and Replies
24 November 2017 - NW3151
Madisha, Mr WM to ask the Minister of Finance
Whether, in view of the important role that the Office of the Chief Procurement Officer (OCPO) plays in the Government’s procurement processes, including ensuring value for money, combating corruption and ensuring integrity in the Government’s procurement processes and systems and notwithstanding the general concern that he and / or the Treasury intends to change the mandate of the OCPO to the detriment of good, clean and corrupt-free governance, he and/or the Treasury does intend to amend the mandate of the OCPO; if so, (a) what aspects of the mandate does he intend to amend and (b) for what reasons?
Reply:
a) The National Treasury is not aware of any intention to amend the mandate of the OCPO.
b) Not applicable
24 November 2017 - NW3041
Shivambu, Mr F to ask the Minister of Finance
(a) What is the total number of trust funds that have been registered since 1 January 2003, (b) how many of those trust funds are compliant to the black economic empowerment provisions and (c) what are their details?
Reply:
The registration of trusts falls under the Department of Justice and is done by the relevant Masters of the High Court in each of the court’s divisions.
24 November 2017 - NW2986
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 met 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 meeting in terms of the (aa) dates of meetings, (bb) venues where meetings took place, (cc) purpose, agenda and outcomes or agreements of each meeting, (dd) copies of all documents presented at the meetings and (ee) details of persons present at the meetings including but not limited to, full names and who or what entity each person was representing. (2) whether he will furnish Mr R A Lees with copies of the minutes of each meeting; if not, why not; if so, by what date?
Reply:
(1)(a)(i)(ii) Yes, members of the South African Airways (SAA) board of directors and management did have meetings with the management of the Public Investment Corporation (PIC) on matters relating to the SAA during the six months period ending on 30 September 2017.
(aa) (bb)(cc)(dd)(ee)
Various meetings between the PIC and SAA were held. The two key meetings were the following:
- On 23 June 2017, a meeting between the senior management teams of PIC and SAA took place at the SAA Offices in Ekhuruleni. The PIC’s Executive Head for Listed Investments, Mr Fidelis Madavo, led the PIC’s delegation. The purpose of the meeting was to discuss the way forward for the PIC to conduct a detailed Due Diligence on SAA. The due diligence included risk analysis, financial analysis, ESG analysis as well as legal analysis. The following employees of the PIC were also present at the meeting:
- Mr Paul Magula – Executive Head: Risk Management
- Mr Ernest Nesane – Executive Head: Legal Services
- Ms Rubeena Solomon – General Manager: Investment Support
- Mr Leon Smit – General Manager: Fixed Income
- Mr Lloyd Mahara – Portfolio Manager: Credit Analysis: Listed Investments
- Mr Deon Botha – Head: Corporate Affairs
- Ms Matseko Taukobong – ESG Manager: Listed Investments
- Mr Kagiso Motepe – ESG Analyst: Listed Investments
- Mr Sylvester Sebico – ESG Analyst: Listed Investments
- Mr Wellington Masekesa – Executive Assistant to the CEO
- Ms Sasa Fako – Legal Advisor
- Mr Sindiso Ngqameni – Legal Graduate
- Mr Tshifango Ndadza – Senior Market Risk Analyst.
- On 25 July 2017, a meeting took place at the PIC Offices in Pretoria. The purpose of the meeting was to discuss a 5-7 year funding plan to the amount of R6 billion for SAA. The following people were in attendance:
- Dr Daniel Matjila – CEO of PIC
- Ms Matshepo More – CFO of PIC
- Mr Fidelis Madavo – Executive Head of Listed Equities of PIC
- Mr Leon Smit – General Manager: Fixed Income of PIC
- Mr Lloyd Mahara – Portfolio Manager: Credit Analysis of PIC
- Mr Deon Botha – Head: Corporate Affairs of PIC
- Ms Dudu Myeni – Former Chairperson of SAA
- Mr Musa Zwane – Former Acting CEO of SAA
- Ms Phumeza Nhantsi – CFO of SAA
2. In line with its standard practices and procedures, the PIC and SAA entered into a non-disclosure agreement and therefore the minutes of these meetings cannot be made available. However, it can be mentioned that following the due diligence process, the transaction was submitted to the Portfolio Management Committee, the Investment Committee and the PIC Board. The transaction was not approved.
24 November 2017 - NW2911
Kwankwa, Mr NL to ask the Minister of Finance
Whether, pursuant to his statement that any recommendation about the possibility of extending or broadening the mandate of the SA Reserve Bank (SARB) should be brought to his attention in line with his mandate as the Minister of Finance and in light of the need to ensure better alignment of monetary and fiscal policy in the country as a strategy to unlock job-creating growth, the Government has considered the (a) need to broaden the mandate of the SARB to ensure that it also has a socio-economic development objective and (b) possibility of introducing a 1 percentage point tolerance interval over and above the upper band of the 3-6% inflation target in order to mitigate against central bank overreaction in times of sluggish growth or when the economy is in recession?
Reply:
a) No, there is no need to review the Constitution on the mandate of the SARB.
Sections 223-225 of the Constitution outline the primary object of the SARB, which is “to protect the value of the currency in the interest of balanced and sustainable economic growth in the Republic". Section 224 (2) requires regular consultation between the Bank and the Minister of Finance.
The current Constitution and legislation governing the SARB is therefore very broad, and does not constrain Government from adopting (and legislating) appropriate policies to facilitate inclusive growth and job-creation, achieve the objectives of the NDP, and reduce inequality and deliver basic services to all those residing in SA.
Whilst the debate on the role of the central bank is vibrant, both in South Africa and other countries, it is important that those calling for reviews provide the necessary research and motivation for proposing such reviews, including their understanding of the role of both fiscal and monetary policy, and what specific problems they are seeking to solve. The SARB’s monetary policy mandate cannot be separated from Government’s fiscal policy mandate and performance. Any attempt to amend these constitutional provisions without due regard for this relationship will generate unnecessary uncertainty, and impact negatively on growth and jobs.
b) The existing monetary policy framework, through flexible inflation targeting, allows for temporary deviations of inflation from the target in the event of shocks over which monetary policy has no impact. A specific tolerance level around the target would therefore not be necessary. An explicit tolerance indicator may potentially risk de-anchoring inflation expectations, and thereby constrain the SARB’s ability to respond flexibly to an inflation shock.
17 November 2017 - NW2411
Lees, Mr RA to ask the Minister of Finance
(a) What are the full details of each current liability of (i) the SA Airways (SAA) and (ii) each of its subsidiaries as at 31 July 2017 and (b)(i) what is the detailed breakdown of all amounts owed to the creditors by (aa) the SAA and (bb) each of its subsidiaries that were only paid in part as at 31 July 2017 and (ii) by what date will the partially-paid amounts be paid in full in each case?
Reply:
SAA is not in a position to make the details requested available, as they are confidential and involve third parties.
10 November 2017 - NW3195
Shivambu, Mr F to ask the Minister of Finance
Has he found that South Africa can afford nuclear energy?
Reply:
National Treasury conducted preliminary analysis on the costs and economic impact of a nuclear build on the fiscus and the economy in 2015. This was based on the 2013 pre-feasibility study undertaken by the Department of Energy to procure and build 9.6GW of nuclear generated energy, as per the 2010 Integrated Resource Plan.
With limited information available in the pre-feasibility study, the analysis show that a 9.6GW nuclear programme would have significant implications for national income, South Africa’s total debt burden, international financial position, the balance of payments, for taxpayers and electricity consumers who will bear the full costs of the programme.
The deteriorating fiscal position and increasing fiscal risks, as outlined in the Medium Term Budget Policy Statement makes it harder to finance and/or guarantee a programme of this nature. An accurate assessment of the affordability of the nuclear new build programme needs to be based on a full socio economic cost benefit analysis, which shows the price path, affordability to households, implications for inflation and national income.
10 November 2017 - NW2962
Marais, Mr S to ask the Minister of Finance
(1)(a) What total amount of additional revenue will be raised by the SA Revenue Service (SARS) following its amendments to the allowable deductions from taxes for persons with disabilities and (b) why did SARS (i) make the determination on the specified amendment, (ii) not phase the changes out and (iii) apply the specified amendments retroactively; (2) whether SARS has conducted any studies and/or investigations to determine what the financial and economic consequences of the specified amendments will be on taxpaying (a) persons with disabilities and (b) the dependants of the specified persons; if not, in each case, why not; if so, how (i) will the specified (aa) persons and (bb) dependants be affected and (ii) were these outcomes determined?
Reply:
1. It is not clear which amendments the honourable member is referring to, so it is assumed that reference is being made to the list of qualifying disability expenses that SARS is currently in the process of updating. The changes in the list are not about raising additional revenue. The changes are being made to ensure that the list of expenses prescribed by SARS is as comprehensive as possible and that the expenses are in line with the paragraph (c) of the definition of “qualifying medical expense” in section 6B(1). This will ensure that the list does not create inequity as far as persons who do not have a physical impairment or disability are concerned. (e.g. If a person with a disability purchases a vehicle because a person is using a wheelchair, it will unfair to allow such an expense instead of only allowing modifications to the vehicle to allow the wheelchair easy access in and out of the vehicle). The prescribed expenses must, as far as possible, only include expenses without which a person with physical impairment or disability will not be able to perform activities of daily living. (e.g. If a person cannot walk, the wheelchair is an aid that assists that person to be able to move from point A to point B. Without this wheelchair, the person cannot do this activity of daily living on his or her own and will always require assistance from other people to do so.) The amendments are, therefore being made to ensure that the list is line with the requirements of the legislation; which are based on practice in other leading democracies, such as Canada. It is understood that SARS’ understanding of the requirements of the legislation has been unsuccessfully challenged by “at least” one taxpayer in the Tax Board. SARS will monitor the outcome of any appeal to inform its future decision making. The amendments will only come in on the effective date of the updated list going forward and are not made with retrospective effect.
2. Since the list is only being amended to ensure that it is as comprehensive as possible, while ensuring that the expenses listed are in full compliance with the legislation, SARS has not conducted any studies and/or investigations to determine what the financial and economic consequences of the changes to the list are to persons with disabilities and their dependants. National Treasury would determine the financial and economic consequences of substantial changes in legislative policy, such as the change from a deduction to a tax credit system for these expenses.
10 November 2017 - NW2830
Vos, Mr J to ask the Minister of Finance
What is the total amount of value-added tax that the SA Revenue Service received from the sales of (a) domestic airline tickets and (b) international airline tickets for each airline (i) in each of the past three financial years and (ii) since 1 April 2017?
Reply:
The SARS systems do not differentiate the various transactions that are subject to VAT in a manner which will allow SARS to identify the VAT transactions for airline tickets separately. It should be noted further that International Airline tickets are charged VAT at 0% as they are exported services.
SARS is therefore unable to provide the data as requested.
09 November 2017 - NW2988
Lees, Mr RA to ask the Minister of Finance
With reference to his reply to question 2736 on 19 September 2017, (a) why is the amount of R3 649 961 241,00 in development loans extended to the rest of Africa quoted in the specified reply for the 2016-17 financial year not equal to the amount reflected under the Development Bank of Southern Africa’s 2016-17 Annual Financial Statement under the same category and (b) what are the full details of the deviations in the amounts in terms of (i) amounts lent, (ii) sectors lent to, (iii) names of the clients and (iv) names of each country that the client is from for each deviation?
Reply:
The questionnaire was specific to 2016/17 hence the 3.6bn, the amount in the annual report is the total exposure.
The DBSA disbursed the total amount of R3.7 billion during the 2016/17 financial year to the rest of African continent (excluding South Africa). The total disbursement amount was made out of loan disbursements of R3.6 billion and equity investments of R69.9 million. Refer to section 1 (Disbursements to the rest of Africa for the year ended 31 March 2017) overleaf for the detail breakdown of the disbursements. The analysis also includes the current year numbers for the period ending 31 August 2017.
Section 2 (Development loans exposure to the Rest of Africa as at 31 March 2017) details the DBSA’s exposure to the rest of Africa (excluding South Africa) amounts to R17.6 billion for the year ended 31 March 2017. The analysis also includes the current year numbers for the period ending 31 August 2017.
|
Section 1: Disbursements to the rest of Africa for the year ended 31 March 2017 |
|||
|
A. Loan disbursements |
|||
|
Country |
2016-2017 |
YTD August 2017 |
Sector |
|
Angola |
|
155 119 582 |
|
|
Angola Ministry of Finance |
- |
155 119 582 |
Transportation |
|
|
|
|
|
|
Ghana |
1 576 372 369 |
343 879 518 |
|
|
Cenpower Generation Company Limited |
24 732 369 |
60 647 143 |
Energy |
|
Karpower International |
1 551 640 000 |
|
Energy |
|
Ghana Airports Company Limited |
|
283 232 374 |
Transportation |
|
Kenya |
220 562 054 |
45 381 516 |
|
|
Kenya Pipeline Company Limited |
220 562 054 |
45 381 516 |
Commercial - Transportation |
|
Madagascar |
|
99 725 954 |
|
|
Ravinala Airports, S.A. |
|
99 725 954 |
Transportation |
|
Zambia |
1 803 965 113 |
|
|
|
Itezhi-Tezhi Power Corporation (ITPC) Lusaka |
158 009 192 |
- |
Energy |
|
Maamba Collieries Limited |
217 955 921 |
|
Energy |
|
Zambia Electricity Supply Corporation Limited |
1 428 000 000 |
- |
Energy |
|
Zimbabwe |
49 061 705 * |
- |
|
|
*Infralink (Private) Limited |
49 061 705 |
- |
Roads And Drainage |
|
Total Loan Disbursement |
R 3 649 961 241 |
R 644 106 570 |
|
|
* This disbursement was a short term loan in respect of the insurance premium paid on behalf of Infralink (Private) Limited with the view of ensuring that the insurance cover on the loan does not lapse. |
|||
|
B. Equity Investments |
2016-2017 |
YTD August 2017 |
Sector |
|
Multi- Country |
|
|
|
|
Africa Infrastructure Investment Fund II |
8 207 547 |
387 774 |
Commercial infrastructure |
|
Emerging Capital Partners |
5 622 674 |
5 503 713 |
Commercial infrastructure |
|
Pan African Infrastructure Development Fund |
56 106 729 |
9 811 080 |
Commercial infrastructure |
|
Total |
69 936 950 |
15 702 567 |
|
|
# Total Loans and equities disbursements for year ending 31 March 2017 |
R 3 719 898 191 |
R 659 809 137 |
# As disclosed on page 8 of the 2016/17 Annual Financial Statements
|
Section 2: Development loans exposure to the Rest of Africa as at 31 March 2017 |
|||
|
Country |
Exposure -2016/17 |
Exposure as at YTD August 2017 |
Sector |
|
Angola |
2 072 937 628 |
1 801 317 553 |
|
|
Angola Ministry of Finance |
1 833 957 908 |
1 791 947 183 |
|
|
|
1 798 731 195 |
1 607 495 863 |
Roads And Drainage |
|
|
35 226 713 |
184 451 320 |
Transportation |
|
Banco de Poupanca e Credito |
20 528 354 |
9 370 389 |
Commercial - Fund |
|
Sonangol Finance Limited |
218 451 366 |
- |
Energy |
|
Congo |
1 369 557 404 |
1 241 702 054 |
|
|
(SNPC) SOCIÉTÉ NATIONALE DES PETROLES DU CONGO |
1 369 557 404 |
1 241 702 054 |
Energy |
|
Ghana |
1 582 410 256 |
1 871 284 196 |
|
|
Cenpower Generation Company Limited |
205 872 573 |
257 454 558 |
Energy |
|
Ghana Airports Company Limited |
671 622 |
289 155 048 |
Transportation |
|
KARPOWER INTERNATIONAL B.V. |
1 375 866 061 |
1 324 674 590 |
Energy |
|
Kenya |
304 643 104 |
333 044 872 |
|
|
Kenya Pipeline Company Limited |
304 643 104 |
333 044 872 |
Commercial - Transportation |
|
Lesotho |
610 611 295 |
578 773 473 |
|
|
Lesotho Highlands Development Authority |
38 799 947 |
40 276 042 |
|
|
|
1 045 109 |
889 438 |
Energy |
|
|
37 754 838 |
39 386 604 |
Roads And Drainage |
|
Trans-Caledon Tunnel Authority |
15 250 000 |
15 426 770 |
Water |
|
Tsepong (Pty) Ltd |
556 561 348 |
523 070 661 |
Social Infrastructure - Health |
|
Madagascar |
108 020 467 |
|
|
|
Ravinala Airports, S.A. |
108 020 467 |
Transportation |
|
|
Mauritius |
467 714 692 |
471 366 657 |
|
|
Betamax Ltd |
193 749 477 |
192 996 462 |
Transportation |
|
Smile Telecoms Holdings Limited |
273 965 215 |
278 370 194 |
Communications |
|
Mozambique |
510 577 955 |
455 137 690 |
|
|
Compania Mozambicana De Hdrocarbonetos SARS |
185 362 354 |
148 849 304 |
Energy |
|
Electricidade De Mocambique |
65 691 031 |
44 689 974 |
Energy |
|
Energia de Mocambique LDA |
60 546 032 |
60 456 429 |
Energy |
|
Mozambique Celular Limitada |
76 510 856 |
76 947 960 |
Communications |
|
Telecomunicacoes De Mozambique |
122 470 525 |
124 196 866 |
Communications |
|
Namibia |
83 917 238 |
83 296 869 |
|
|
Namibia Power Corporation Pty Ltd |
83 917 238 |
83 296 869 |
Energy |
|
Swaziland |
217 824 828 |
229 838 204 |
|
|
Swazi Paper Mills (Pty) Ltd (SPM) |
157 354 224 |
166 268 460 |
Commercial - Manufacturing |
|
Swaziland Electricity Board |
5 143 108 |
5 343 238 |
Energy |
|
Swaziland Government |
55 327 496 |
58 226 505 |
|
|
|
51 316 973 |
54 005 842 |
Commercial - Agriculture |
|
|
4 010 523 |
4 220 663 |
Water |
|
Tanzania |
113 283 353 |
96 919 444 |
|
|
Kilwa Energy Company Limited |
604 |
585 |
Energy |
|
Maweni Limestone Ltd |
113 282 750 |
96 918 860 |
Commercial - Manufacturing |
|
Zambia |
7 124 095 838 |
6 851 912 015 |
|
|
ICC |
12 665 839 |
Commercial - Fund |
|
|
Itezhi-Tezhi Power Corporation (ITPC) Lusaka |
423 491 908 |
421 792 793 |
Energy |
|
Kariba North Bank Extension Power Corporation (KNB |
956 083 955 |
868 900 787 |
Energy |
|
Lunsemfwa Hydro Power Company Limited (LHPC) |
577 |
- |
Energy |
|
Maamba Collieries Limited |
1 278 156 993 |
1 278 900 215 |
Energy |
|
National Road Fund Agency (NRFA) Zambia |
2 769 454 093 |
2 577 411 770 |
Roads And Drainage |
|
The David Livingstone Safari |
224 408 186 |
220 752 901 |
Commercial -Tourism |
|
Zambia Electricity Supply Corporation Limited |
1 459 834 287 |
1 484 153 549 |
Energy |
|
Zimbabwe |
2 561 247 560 |
2 446 947 190 |
|
|
Cottco (Pty) Ltd |
129 560 131 |
117 783 454 |
Commercial - Agriculture |
|
Infralink (Private) Limited |
2 431 687 429 |
2 329 163 736 |
Roads And Drainage |
|
Multi-Country |
590 966 218 |
491 911 631 |
|
|
Eastern and Southern African Trade and Development |
590 966 218 |
491 911 631 |
Commercial - Fund |
|
^ Total book - Rest of Africa |
R 17 609 787 368 |
R 17 061 472 314 |
^ As disclosed on page 40 (note 13.4) of the 2016/17 Annual Financial Statements
Remarks: Reply: Approved /Not Approved
07 November 2017 - NW3286
Alberts, Mr ADW to ask the Minister of Finance
(1)Whether he or any person in the Executive or in the National Treasury is making changes to the management, monitoring and compliance unit of the National Treasury; if so, what are the relevant details regarding the (a) reasons and (b) extent of the changes; if not, whether any changes are envisaged; if so, (2) (a) what will be the full relevant particulars of the nature of the changes and (b) by what date will the changes take effect; (3) whether he or any person in the Executive or in the National Treasury is making general changes in the National Treasury by appointing people who will amend existing authority and reporting structures and who will in any way undermine, curb or circumvent the powers of the director-general; if so, what are the relevant details of the (a) reasons and (b) extent of the changes; if not, whether any changes are envisaged; if so, (4) (a) what will be the full relevant details of the nature of the changes and (b) by what date the changes will take effect?
Reply:
The National Treasury is not aware of any of the alleged changes alluded to.
07 November 2017 - NW3376
Maynier, Mr D to ask the Minister of Finance
Whether a certain person (name and details furnished) accompanied him on his official travel to the United States of America in October 2017; if not, why not; if so, (a) what was the purpose, (b) what were the (i) departure and (ii) arrival dates and (c) what is the (i) total cost and (ii) detailed breakdown of such costs to the National Treasury of each trip undertaken by the specified person?
Reply:
No.
07 November 2017 - NW3232
Maynier, Mr D to ask the Minister of Finance
With reference to each (a) forensic investigation and (b) special performance audit completed by the National Treasury (i) in the 2016-17 financial year and (ii) since 1 April 2017, what (aa) was the scope of the investigation or audit, (bb) was the title of the final report of each investigation or audit, (cc) was the date on which the investigation or audit was completed, (dd) were main findings and recommendations of each investigation or audit, and (ee) action was taken by the National Treasury in each case?
Reply:
Attached as Annexure A
30 October 2017 - NW3216
Lees, Mr RA to ask the Minister of Finance
Whether the SA Airways (SAA) has a contract with the publisher of a certain newspaper (New Age Newspapers) for the supply of newspapers; if so, (a) what amount does the specified contract cost SAA each month, (b) on what date (i) was the contract signed and (ii) does the contract expire and (c) what are the details of price escalation clauses included in the contract?
Reply:
SAA does not have a direct contract with New Age Newspaper for the supply of newspapers. However, SAA has a month-to-month contract with Press Support, which provides for the supply of a variety of readership material including the New Age newspaper to our passengers.
(a) The contract with Press Support in respect of the New Age newspaper costs R165 690 per month excluding VAT. The New Age newspaper supply costs covers Johannesburg, Durban and Cape Town stations.
(b)(i) The contract with Press Support was signed in April 2009.
(b)(ii) This is a month-to-month contract and SAA may terminate the agreement by giving a one months’ notice with no penalties.
(c) The contract provides for general inflationary increase in March/April of every year.
30 October 2017 - NW3063
Lees, Mr RA to ask the Minister of Finance
(1)(a) With reference to aircraft that was ordered for the SA Airways (SAA) what total number of Airbus A330-300 wide-bodied aircraft did SAA receive from 1 September 2016 to 30 September 2017 and (b) for which routes are the specified aircraft being used; (2) whether the specified aircraft replaced any existing aircraft on the specified routes; if so, what has been done with the existing aircraft that was replaced; (3) whether the new wide-bodied aircraft are able to fly non-stop directly from South African international airports to international destinations (details furnished); if not, in each case, why not; if so, what are the relevant details in each case; (4) whether any additional flight and/or cabin crew were employed to service the specified aircraft; if so, (a) on what date were these employees appointed, (b) what are the recruitment processes that were followed and (c) what are the further relevant details in this regard; (5) whether the SAA leases any aircraft that are not fully utilised; if so, what are the relevant details?
Reply:
(1)(a) Five (5) A330-300s.
(1)(b)These aircraft are deployed on Johannesburg-Accra/Washington, Johannesburg-Sao Paulo, Johannesburg-Dakar/Washington, and Johannesburg-Lagos routes.
(2) These aircraft replaced the two(2) A340-600s (to be returned to the lessors at the end of the lease contract in January/February 2018 and five(5) A340-300s aircraft that are more than 15 years old. SAA had heavy maintenance checks due on the existing fleet so the available flying time on the A340-300s, because of the introduction of the A330-300s, has enabled SAA to comply with the maintenance schedule as well as to adhere to the published operating schedule.
(3) Yes. The A330-300 can operate direct/non-stop flights between South Africa and Europe, South America and the African Countries. These aircraft are not an ultra-long range and can therefore not be able to fly directly to North America. North American routes are ultra-long, with more than 12 hours of non-stop flying. These routes are serviced via Accra and/or Dakar.
(4) No additional flight and/or cabin crew were employed to service the A330-300s nor was extra training required to manage the fleet change. These types have the same crew ratings as the existing fleet.
(5) SAA is not leasing any aircraft that is not fully utilised. All aircraft in the SAA fleet are fully utilised in accordance with the schedule.
30 October 2017 - NW3065
Topham , Mr B to ask the Minister of Finance
What are the full details of all sponsorships in cash or kind that the SA Airways (SAA) awarded and/or paid to any person and/or entity from 1 April 2014 to 30 September 2017, including the (a) name of each person or entity, (b) amount of each sponsorship, (c) reason for awarding each sponsorship and (d) benefits that accrued to the SAA as a result of each sponsorship?
Reply:
(1) South African Airways has not offered any cash sponsorship from 1 April 2014 to 30 September 2017. The Value-In-Kind (VIK) sponsorships offered between 1 April 2014 and 30 September 2017 are listed below:
|
Sponsorship Property |
Right Holder |
Value |
Period |
|
SA Olympic Teams |
SASCOC |
R6m per annum |
2014-15 |
|
Springboks |
SA Rugby |
R22.5m per annum |
2014-15 |
|
SA Olympic Teams |
SASCOC |
R6m per annum |
2015-16 |
|
Springboks |
SA Rugby |
R22.5 per annun |
2015-16 |
|
Miss South Africa |
Sun International |
R594k |
2015-16 |
|
World Routes |
UBM |
R1.5m |
2015-16 |
|
NBA Africa Games |
NBA Africa |
R1.3m |
2015-16 |
|
International Jazz Extravaganza |
Teacup Projects |
R1.1m |
2015-16 |
|
Bafana Bafana |
SAFA |
R10m first year |
2016 - 17 |
|
SA Olympic Teams |
SASCOC |
R8m per annum |
2016 -17 |
|
Miss South Africa |
Sun International |
R596k |
2016 -17 |
|
Bafana Bafana |
SAFA |
R25m per annum |
2017 - 2018 |
|
International Jazz Extravaganza |
Teacup Projects |
R1.2m |
2017 - 2018 |
The sponsorships are offered with the purpose of deriving marketing and commercial benefits for SAA. All these sponsorships were approved in accordance with the company’s Delegation of Authority Framework (“DOA”) and have followed internal approval process.
In return for the sponsorships, SAA is afforded sponsorship rights, which include: (i) platform to promote sales on SAA; (ii) media exposure and adverting; and (iii) branding opportunities.
20 October 2017 - NW2475
Lees, Mr RA to ask the Minister of Finance
1. With reference to a certain National Treasury Transversal Contract () awarded to a certain company (), what are the details of (a) all processes followed to determine which entity was the winning bidder and (b) each other supplier that tendered for the specified contract, including the (i) names, (ii) contact details, (iii) tendered contract prices and (iv) nutritional contents of the animal feeds offered in each case; 2. Whether he has found a conflict of interest therein that the owner (name furnished) of the specified company who won the bid was also the Managing Director of the Land Bank Insurance Company at the time that the tender was awarded; if not, what is the position in this regard; if so, on what legislative basis did he reach this conclusion; 3. (a) Which division of National Treasury handled the awarding of the specified tender and (b) was the Land Bank involved in any way in awarding the specified tender?
Reply:
1. (a) This was an open tender process for the supply of animal feed to the state, where potential bidders were invited to submit responses in accordance with the special and general conditions of tender. The products had to comply with specific technical specifications to be acceptable. The evaluation criteria was based on submission of mandatory documentation, compliance with technical specifications and price and B-BBEE.
(b) (i) Names of bidders – Refer to attached Bidder’s List Annexure A.
(ii) Contact details – Refer to attached Bidder’s List Annexure A.
(iii) Tendered contract prices – Refer to attached Contract Circular Annexure B.
(iv) Nutritional contents of the animal feeds offered in each case – Refer to Annexure C.
2. At the closing date and time of the bid on 27 May 2016, Mr Adam Maniki Rakgalakane was not in the employ of the Land Bank and therefore there was no conflict of interest. Procedurally the company could not be disqualified.
During the due diligence process conducted on 19 October 2016, Rakgalakane Investments cc declared that one of their directors, Mr Adam Maniki Rakgalakane, had since been appointed by the Land Bank on 10 August 2016. The company undertook to ask Mr Rakgalakane to resign without withdrawing its tender, if their company became successful in the bid process. The Bid Adjudication Committee awarded the tender on 28 October 2016. Rakgalakane Investments was one of the winning bidders.
Prior to communicating the outcome of the tender, National Treasury enquired on the status of Mr Rakgalakane and it was confirmed that a process to have him resigning was underway. Mr Rakgalakane had since resigned.
3. (a) The Office of the Chief Procurement Officer – Transversal Contracting Unit.
(b) The Land Bank was not involved in the awarding of this tender.
19 October 2017 - NW2560
Matsepe, Mr CD to ask the Minister of Finance
whether a certain person () will continue to be involved in the business of (a) a certain company() and/or (b) any other business entity or trust that the specified person is currently involved in; if not, what is the position in this regard; if so, what are the relevant details; (2) on what date will the specified person start employment with SAA?
Reply:
1. Mr Vuyani Jarana will not continue to be involved in the business of (a)Vodacom) and/or (b) Mr Jarana’s involvement in any other business entity or trust that the he is currently involved in will be done in accordance with South African Airways policies and procedures regarding employees’ involvement in other business outside of SAA.
2. Mr Jarana will start employment with SAA after he has served notice at his present company (Vodacom) on a date to be agreed.
19 October 2017 - NW3028
Alberts, Mr ADW to ask the Minister of Finance
Whether, with reference to his reply to question 2691 on 19 September 2017, and notwithstanding the fact that the Pension Funds Act, Act 24 of 1956, does not provide for the Pension Funds Adjudicator to exercise jurisdiction over the Public Service Pension Fund, he will consider improving transparency and external accountability regarding the management of the Public Service Pension Fund by tabling the necessary amendments to the Act in Parliament in such a way that the Pension Funds Adjudicator will indeed have jurisdiction over the Fund; if not, (a) why not and (b) what are the full relevant details of the (i) manner in which the Public Service Pension Fund is currently managed transparently and accountably and (ii) extent to which external oversight is currently applied regarding the management of the Fund; if so, what are the relevant details?
Reply:
The decision to be made is a policy decision, which will then be followed up with the necessary legislative amendments.
19 October 2017 - NW2939
Maynier, Mr D to ask the Minister of Finance
(a) What is the total number of reports of irregularities that were received by the Independent Regulatory Board for Auditors (IRBA) in terms of section 45 of the Auditing Profession Act, Act 26 of 2005, from KPMG (i) in each of the past 10 financial years and (ii) since 1 April 2017, (b) on what date was each report received, (c) what were the details of each report and (d) what action was taken in each case following receipt of the report by IRBA?
Reply:
(a) i)
|
Financial year |
Number of reportable irregularities |
|
1 April 2007 - 31 March 2008 |
20 |
|
1 April 2008 - 31 March 2009 |
37 |
|
1 April 2009 - 31 March 2010 |
24 |
|
1 April 2010 - 31 March 2011 |
17 |
|
1 April 2011 - 31 March 2012 |
21 |
|
1 April 2012 - 31 March 2013 |
12 |
|
1 April 2013 - 31 March 2014 |
13 |
|
1 April 2014 - 31 March 2015 |
14 |
|
1 April 2015 - 31 March 2016 |
19 |
|
1 April 2016 - 31 March 2017 |
19 |
ii)
|
1 April 2017 - 30 September 2017 |
14 |
b), c) and d)
1 April 2007 - 31 March 2008: RI files were kept manually during this period. Our electronic records were only updated with the actions taken by the IRBA on continuing matters prior to the file being destroyed in terms of the IRBA’s file destruction policy and the National Archives and Records Service Act (No. 43 of 1996).
1 April 2008 - 31 March 2011: RI files were kept manually during this period. Our electronic records were only updated with the actions taken by the IRBA on continuing matters prior to the files being archived, meaning that this information could still be retrieved if required, but that it might take some time.
|
IRBA Reference Number |
b) Date 1st RI report received |
c) Particulars of matters addressed in report |
d) Action(s) undertaken by the IRBA - if any. Regulators to whom RIs were onwards sent. |
|
2008/0003 |
04/04/2007 |
Tax irregularity |
The DTI, CIPRO and SARS |
|
2008/0009 |
04/04/2007 |
Tax irregularity |
The DTI, CIPRO and SARS |
|
2008/0167 |
16/07/2007 |
Tax irregularity / Contravention of the Companies Act |
The DTI, CIPRO and SARS |
|
2008/0168 |
16/07/2007 |
Tax irregularity / Contravention of the Companies Act |
The DTI, CIPRO and SARS |
|
2008/0169 |
16/07/2007 |
Tax irregularity / Contravention of the Companies Act |
The DTI, CIPRO and SARS |
|
2008/0183 |
25/07/2007 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0225 |
17/08/2007 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0343 |
18/10/2007 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0391 |
16/11/2007 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0392 |
16/11/2007 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0406 |
26/11/2007 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0407 |
26/11/2007 |
File destroyed - information not available |
No conclusion provided |
|
2008/0419 |
03/12/2007 |
Contravention of the Attorneys Act |
The Law Society of the Northern Provinces |
|
2008/0494 |
05/02/2008 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0529 |
29/02/2008 |
File destroyed - information not available |
RI did not exist. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0566 |
07/03/2008 |
File archived - information not readily available |
Electronic record not kept of regulator(s) to which RI report was sent. |
|
2008/0567 |
10/03/2008 |
File destroyed - information not available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2008/0569 |
11/03/2008 |
Contravention of the Companies Act |
The DTI and CIPRO |
|
2008/0570 |
11/03/2008 |
Contravention of the Companies Act |
The DTI and CIPRO |
|
2008/0772 |
27/03/2008 |
Tax irregularity / Contravention of the Companies Act |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0108 |
10/04/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0149 |
08/05/2008 |
File archived - information not readily available |
The DTI, CIPRO, The Department of Labour and the City of Johannesburg. |
|
2009/0291 |
30/06/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0292 |
30/06/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0307 |
04/07/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0392 |
29/07/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0393 |
29/07/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0394 |
29/07/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0495 |
02/09/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0533 |
10/09/2008 |
File archived - information not readily available |
The DTI, CIPRO, the Department of Labour and SARS. |
|
2009/0534 |
10/09/2008 |
File archived - information not readily available |
The DTI, CIPRO, the Department of Labour and SARS. |
|
2009/0544 |
12/09/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0545 |
12/09/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0546 |
12/09/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0585 |
22/09/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0615 |
03/10/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0620 |
06/10/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0820 |
06/11/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0874 |
03/12/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0875 |
03/12/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0879 |
09/12/2008 |
File archived - information not readily available |
File archived - information not readily available |
|
2009/0880 |
09/12/2008 |
File archived - information not readily available |
File archived - information not readily available |
|
2009/0905 |
18/12/2008 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0941 |
23/01/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0950 |
02/02/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0955 |
05/02/2009 |
File archived - information not readily available |
The DTI and CIPRO |
|
2009/0959 |
05/02/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0960 |
06/02/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0962 |
06/02/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/0963 |
06/01/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/1026 |
26/02/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/1038 |
02/03/2009 |
File archived - information not readily available |
The DTI, CIPRO and the JSE |
|
2009/1041 |
06/03/2009 |
File archived - information not readily available |
The DTI and SARS |
|
2009/1077 |
16/03/2009 |
File archived - information not readily available |
The JSE |
|
2009/1111 |
27/03/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/1112 |
27/03/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2009/1113 |
27/03/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0054 |
04/03/2009 |
File archived - information not readily available |
The DTI, CIPRO and SARS |
|
2010/0071 |
15/04/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0156 |
25/05/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0579 |
03/07/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0582 |
06/07/2009 |
File archived - information not readily available |
RI did not exist. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0583 |
07/07/2009 |
File archived - information not readily available |
The JSE |
|
2010/0680 |
24/06/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0712 |
25/08/2009 |
File archived - information not readily available |
SARS |
|
2010/0798 |
02/09/2009 |
File archived - information not readily available |
SARS |
|
2010/0713 |
25/08/2009 |
File archived - information not readily available |
SARS, National Treasury, the Office of Company and Intellectual Property Enforcement (OCIPE) & The Department of Communications. |
|
2010/0847 |
30/10/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0868 |
29/10/2009 |
File archived - information not readily available |
Department of Trade and Industry - the Office of Company and Intellectual Property Enforcement (OCIPE) & SARS |
|
2010/0905 |
16/11/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0909 |
26/11/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0910 |
26/11/2009 |
File archived - information not readily available |
RI did not exist. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0911 |
27/11/2009 |
File archived - information not readily available |
The Financial Services Board and the Financial Intelligence Centre |
|
2010/0912 |
27/11/2009 |
File archived - information not readily available |
The Financial Services Board and the Financial Intelligence Centre |
|
2010/0913 |
27/11/2009 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2010/0920 |
23/11/2009 |
File archived - information not readily available |
Department of Trade and Industry - the Office of Company and Intellectual Property Enforcement (OCIPE) |
|
2010/0927 |
09/12/2009 |
File archived - information not readily available |
SARS |
|
2010/0941 |
11/12/2009 |
File archived - information not readily available |
Department of Trade and Industry - the Office of Company and Intellectual Property Enforcement (OCIPE) |
|
2010/1001 |
10/02/2010 |
File archived - information not readily available |
Department of Trade and Industry - the Office of Company and Intellectual Property Enforcement (OCIPE) and the JSE. |
|
2010/1019 |
19/02/2010 |
File archived - information not readily available |
SARS |
|
2010/1084 |
15/03/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0028 |
23/04/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0034 |
28/04/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0071 |
07/05/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0078 |
12/05/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0226 |
20/07/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0376 |
05/10/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0390 |
14/10/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0568 |
17/11/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0569 |
15/11/2010 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0606 |
08/12/2010 |
File archived - information not readily available |
Department of Trade and Industry - Office of Company and Intellectual Property Enforcement (OCIPE) |
|
2011/0634 |
15/12/2010 |
File archived - information not readily available |
SARS and the Financial Services Board |
|
2011/0682 |
31/01/2011 |
File archived - information not readily available |
SARS |
|
2011/0721 |
14/02/2011 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0722 |
03/03/2011 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0767 |
03/03/2011 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0779 |
03/03/2011 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2011/0796 |
18/03/2011 |
File archived - information not readily available |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0058 |
11/05/2011 |
Inadequate accounting records |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0089 |
24/05/2011 |
Non-payment of PAYE, UIF and Skills Levies to SARS |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0095 |
25/05/2011 |
Contravention of the Financial Intelligence Centre Act |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0114 |
30/05/2011 |
Entity utilized an assessed loss in contravention of the Tax Act |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0118 |
12/05/2011 |
Under-payment of PAYE to SARS |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0119 |
02/06/2011 |
Allegations of collusion and price-fixing |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0126 |
02/06/2011 |
Various contraventions of the VAT Act |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0235 |
18/07/2011 |
Non-payment of PAYE and UIF due to financial difficulties. |
Department of Labour and SARS |
|
2012_0295 |
05/08/2011 |
Entity not registered for VAT |
SARS |
|
2012_0323 |
08/08/2011 |
Illegal manufacturing of conventional arms |
Directorate Conventional Arms Control |
|
2012_0401 |
19/09/2011 |
Contravention of the Mineral and Petroleum Resources Development Act |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0408 |
30/09/2011 |
Various contraventions of the Pension Funds Act |
The Financial Intelligence Centre |
|
2012_0409 |
30/09/2011 |
Various contraventions of the Pension Funds Act |
The Financial Intelligence Centre |
|
2012_0577 |
21/10/2011 |
Incorrect VAT claims |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0597 |
03/11/2011 |
Incorrect amount paid over to SARS for income tax |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0610 |
21/10/2011 |
Incorrect VAT claims and non-payment of PAYE |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0645 |
22/11/2011 |
Inadequate accounting records |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0784 |
09/03/2012 |
Non-disclosure of directors' interest in contracts |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0798 |
19/03/2012 |
Fringe benefit taxes not withheld from employee remuneration |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0810 |
23/03/2012 |
Bank has not appointed a Money Laundering Compliance Officer |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2012_0812 |
30/03/2012 |
Non-registration for tax |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2013_0045 |
11/05/2012 |
Non-payment of PAYE to SARS |
SARS |
|
2013_0085 |
05/06/2012 |
Non-payment of PAYE, UIF and Skills Levies due to financial difficulties, inaccuracies in terms of diesel refunds claimed and non-payment of Workman's Compensation to the Commissioner. |
CIPC, Department of Labour, SARS and Department of Labour (UIF) |
|
2013_0086 |
06/06/2012 |
Under-declaration of VAT output taxes and non-payment of PAYE. |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2013_0098 |
12/06/2012 |
Contravention of Exchange Control Regulations (South African Reserve Bank) |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2013_0146 |
10/07/2012 |
Various irregularities identified in establishment of trust |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2013_0170 |
17/07/2012 |
Various contraventions of the VAT Act |
SARS |
|
2013_0183 |
24/07/2012 |
Entity has not registered as a credit provider |
National Credit Regulator |
|
2013_0203 |
07/08/2012 |
Breach of fiduciary responsibility by senior manager |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2013_0241 |
03/09/2012 |
Non-payment of PAYE and UIF to SARS |
SARS and Department of Labour (UIF) |
|
2013_0374 |
16/11/2012 |
Non-payment of PAYE, VAT and Capital Gains Taxes to SARS |
SARS |
|
2013_0620 |
20/02/2013 |
Non-payment of VAT to SARS and non-submission of tax returns |
SARS |
|
2013_0633 |
01/03/2013 |
Incomplete accounting records |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2014_0019 |
16/04/2013 |
Entity has not registered as a credit provider |
National Credit Regulator |
|
2014_0130 |
25/06/2013 |
Non-payment of PAYE due to financial difficulties |
JSE and SARS |
|
2014_0200 |
08/08/2013 |
Non-payment of PAYE to SARS |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2014_0206 |
21/08/2013 |
Uncertainties regarding the company's ability to continue with mining operations |
CIPC and the Department of Mineral Resources |
|
2014_0207 |
21/08/2013 |
Uncertainties regarding the company's ability to continue with mining operations |
CIPC and Dep of Minerals |
|
2014_0252 |
13/09/2013 |
Allegations of fraud regarding travel and subsistence claims, Non-payment of PAYE to SARS. |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2014_0258 |
23/09/2013 |
Non-payment of PAYE, UIF or Skills Levies |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2014_0272 |
07/10/2013 |
Entity has not registered as a credit provider |
National Credit Regulator |
|
2014_0281 |
15/10/2013 |
Non-submission of tax returns and trading whilst insolvent. |
CIPC and SARS |
|
2014_0282 |
15/10/2013 |
Non-submission of tax returns and trading whilst insolvent. |
CIPC and SARS |
|
2014_0325 |
11/11/2013 |
Non-payment of PAYE or UIF |
SARS and the Department of Labour (UIF) |
|
2014_0347 |
21/11/2013 |
Trust not registered as a taxpayer |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2014_0508 |
24/02/2014 |
Possible falsification of accounting records |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0041 |
03/04/2014 |
Inadequate accounting records |
The Financial Services Board |
|
2015_0050 |
11/04/2014 |
Misappropriation of funds by director |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0123 |
13/05/2014 |
PAYE not paid over to SARS and not registered for VAT |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0338 |
11/07/2014 |
Non-compliance with the Technology Innovation Agency Act |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0410 |
05/08/2014 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2015_0469 |
26/08/2014 |
Non-payment of VAT |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0716 |
03/11/2014 |
Financial statements not prepared and/or approved and no tax returns have been submitted |
CIPC & SARS |
|
2015_0722 |
04/11/2014 |
Facility does not have professional negligence insurance |
The Department of Health |
|
2015_0795 |
25/11/2014 |
Entity has not registered as a credit provider |
The National Credit Regulator |
|
2015_0858 |
16/01/2015 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2015_0859 |
16/01/2015 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2015_0978 |
11/03/2015 |
Financial statements not prepared and/or approved as well as allegations of fraud |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0979 |
11/03/2015 |
Financial statements not prepared and/or approved as well as allegations of fraud |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2015_0987 |
16/03/2015 |
Allegations of fraud against a former FM |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0016 |
13/04/2015 |
Fraud & theft |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0032 |
24/04/2015 |
Companies Act - Breach of fiduciary duties by director |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0071 |
23/04/2015 |
Companies Act - Breach of fiduciary duties by director |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0166 |
11/06/2015 |
Companies Act - Breach of fiduciary duties by director |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0192 |
26/06/2015 |
Companies Act - Breach of fiduciary duties by director |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0248 |
14/07/2015 |
Companies Act - Breach of fiduciary duties by director |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2016_0316 |
13/08/2015 |
Fraudulent breach of supply chain management policy |
Department of Higher Education and Training & The Directorate for Priority Crime Investigation. |
|
2016_0376 |
01/09/2015 |
Misappropriation of trust funds |
Master of the High Court |
|
2016_0390 |
08/09/2015 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2016_0487 |
11/09/2015 |
Outstanding VAT, Skills Levies, UIF and PAYE. |
SARS, Department of Labour & Department of Labour (UIF) |
|
2016_0488 |
11/09/2015 |
Outstanding VAT, Skills Levies, UIF and PAYE. |
SARS, Department of Labour & Department of Labour (UIF) |
|
2016_0489 |
11/09/2015 |
Outstanding VAT, Skills Levies, UIF and PAYE. |
SARS, Department of Labour & Department of Labour (UIF) |
|
2016_0490 |
22/09/2015 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2016_0532 |
18/09/2015 |
Outstanding UIF and PAYE & CFO having allegedly misappropriated funds |
SARS, Department of Higher Education and Training & Department of Labour (UIF) |
|
2016_0678 |
14/12/2015 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2016_0693 |
15/12/2015 |
Company trading whilst insolvent |
CIPC |
|
2016_0719 |
08/01/2016 |
PAYE not paid over to SARS, financial assistance provided to related party without board approval. Terms and conditions of a loan agreement entered into with the Land Bank were not met. Terms and conditions of a grant received from the Department of Agriculture, forestry and Fisheries were not met. |
CIPC, SARS, Land Bank & Department of Agriculture, Forestry and Fisheries. |
|
2016_0820 |
01/03/2016 |
Financial statements not prepared and/or approved |
CIPC & SARS |
|
2016_0845 |
07/03/2016 |
Contractual breach that amounted to fraud. |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0030 |
15/04/2016 |
Provisional tax returns not submitted, VAT returns not submitted & not registered for royalty taxes. |
SARS & Department of Mineral Resources |
|
2017_0032 |
15/04/2016 |
Provisional tax returns not submitted, VAT returns not submitted & not registered for royalty taxes. |
SARS, JSE & Department of Mineral Resources |
|
2017_0036 |
19/04/2016 |
PAYE not deducted |
SARS |
|
2017_0042 |
22/04/2016 |
Output VAT not declared & financial statements not prepared |
CIPC & SARS |
|
2017_0116 |
01/06/2016 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0149 |
15/06/2016 |
Financial Statements not audited and tax returns not submitted |
CIPC & SARS |
|
2017_0150 |
15/06/2016 |
Financial Statements not audited and tax returns not submitted |
CIPC & SARS |
|
2017_0316 |
04/08/2016 |
Financial statements not prepared |
RI did not exist. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0433 |
23/09/2016 |
Companies Act Section 30 - financial statements not prepared and/or approved |
CIPC & SARS |
|
2017_0526 |
03/11/2016 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0713 |
18/10/2016 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0733 |
24/11/2016 |
Non-submission of tax returns and not yet registered for royalty tax purposes |
JSE, Department of Mineral Resources & SARS |
|
2017_0734 |
24/11/2016 |
Non-submission of tax returns and not yet registered for royalty tax purposes |
SARS & Department of Mineral Resources |
|
2017_0758 |
06/12/2016 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0759 |
06/12/2016 |
Non-submission of tax return (ITR14 return) |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0760 |
06/12/2016 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0795 |
20/01/2017 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0828 |
20/02/2017 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2017_0829 |
20/02/2017 |
Companies Act Section 30 - financial statements not prepared and/or approved |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2018_0060 |
22/05/2017 |
HR Director not acting in good faith. |
Department of Higher Education & Training |
|
2018_0082 |
05/06/2017 |
Lack of adequate accounting records |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2018_0089 |
12/06/2017 |
Contraventions of Section 29 and 34 of the Companies Act |
FIC & DPCI |
|
2018_0101 |
20/06/2017 |
Non-declaration of fringe benefits |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2018_0161 |
05/07/2017 |
Company annual tax returns and provisional tax not submitted. Non-submission of royalty tax returns and contravention of Section 30 of the Companies Act. |
CIPC,SARS,JSE & Department of Mineral Resources |
|
2018_0163 |
05/07/2017 |
Company annual tax returns and provisional tax not submitted. Non-submission of royalty tax returns and contravention of Section 30 of the Companies Act. |
SARS,CIPC & Department of Mineral Resources |
|
2018_0180 |
13/07/2017 |
Suspected corruption/ fraud |
RI not continuing. No further actions required by the Auditing Profession Act 26 of 2005. |
|
2018_0232 |
08/08/2017 |
Contravention of Section 30 of the Companies Act |
CIPC & SARS |
|
2018_0233 |
08/08/2017 |
Contravention of Section 30 of the Companies Act |
CIPC & SARS |
|
2018_0234 |
08/08/2017 |
Contravention of Section 30 of the Companies Act |
CIPC & SARS |
|
2018_0235 |
08/08/2017 |
Contravention of Section 30 of the Companies Act |
CIPC & SARS |
|
2018_0243 |
14/08/2017 |
Non-submission of provisional tax returns, annual tax returns and VAT returns and contravention of Section 30 of the Companies Act |
CIPC & SARS |
|
2018_0244 |
14/08/2017 |
Non-submission of provisional tax returns, annual tax returns and VAT returns and contravention of Section 30 of the Companies Act |
CIPC & SARS |
|
2018_0351 |
22/09/2017 |
Information not due yet |
Information not due yet |
19 October 2017 - NW2918
Gardee, Mr GA to ask the Minister of Finance
Has (a) the Department of Home Affairs and / or (b) the Independent Electoral Commission requested funding to capture addresses of all registered voters; if not, what is the position in this regard; if so, (i) what amount was requested and (ii) what amount was given?
Reply:
The Independent Electoral Commission through Department of Home Affairs has submitted a funding request for the address harvesting project (to capture addresses). The request will be considered as part of the 2018 Budget deliberations (which has not yet been finalised). Allocations to departments and entities will be presented to Parliament when the Budget is tabled for consideration in February 2018.
19 October 2017 - NW2620
Alberts, Mr ADW to ask the Minister of Finance
(1)How many loans the (a) Public Service Pension Fund and (b) Public Investment Corporation has awarded to (i) individuals and (ii) legal persons, including trusts, since 1 January 2000; (2) with regard to each person and/or legal person to whom the loan has been awarded, what is the (a)(i) amount and (ii) basis of the loan, (b) what served as security for the loan, (c)(i) on which date was the loan awarded and (ii) what is the (aa) term and (bb) interest rate of the loan and (d) which amount of the loan has already been repaid in each case; (3) (a) which of the loans will in all probability never be repaid, (b) what steps will be taken in respect of each one and (c) which loans will probably be converted into shares?
Reply:
As agreed with the honourable Member, the Public Investment Corporation (PIC) attached a list of the disclosure of its unlisted investments that was submitted to the Standing Committee on Finance (SCOF) during October 2016. The PIC is in the process of updating this document to include information for the 2016/17 financial year and this will also be submitted to SCOF during November 2017, when the PIC is scheduled to appear before the Committee. A copy of this document will be submitted to the Member.
12 October 2017 - NW2909
Singh, Mr N to ask the Minister of Finance
Whether the investigation conducted by the investigative units of the SA Revenue Service into the tax affairs of Members of Parliament has been concluded; if not, what is the position in this regard; if so, what are the full relevant details?
Reply:
Due to the secrecy provisions contained in Section 69 of the Tax Administration Act No. 28 of 2011, The South African Revenue Service (SARS) is prohibited from disclosing any taxpayer information (including whether or not a taxpayer is subject to an investigation) to any person other than a SARS official.
SARS treats the tax affairs of all parliamentarians in exactly the same manner as all other taxpayers in accordance with the compliance model. This model is premised on three components to encourage tax compliance: Education, Service and Enforcement.
06 October 2017 - NW2121
Lees, Mr RA to ask the Minister of Finance
What is the (a) full financial value of (i) funds and (ii) guarantees received by SA Airways (SAA) from (aa) the National Treasury and/or (bb) any other national department from 1 January 1997 to date, (b) detailed breakdown of these allocations to each department of SAA in each year, (c) motivation for providing the funds in each case and (d) detailed breakdown of the amounts of guarantees (i) requested and (ii) granted in each case?
Reply:
a(i): A summary of funds received and repaid is reflected in the table below, as per the records in the annual financial statements:
|
Financial Year |
Funds Received or Paid |
|
Initial capitalisation R3 137 million |
|
|
2003/4 |
R6 089 million shareholder loan advanced |
|
2004/5 |
R 4 000 million shareholder convertible loan |
|
2005/6 |
R 1 600 million of shareholder convertible loan repaid (balance of R2 400 million remained) |
|
2006/7 |
R 8 450 million of above loans was capitalised |
|
2007/8 |
R1 564 million subordinated loan raised. Capitalised in 2009/10 |
|
2017/18 |
R2 208 million recapitalisation (30 June 2017) |
a(ii): A summary of the Going Concern guarantees and utilisation towards loans or other purposes as is listed in the table below:
|
Guarantee Awarded |
Amount |
Utilisation |
Balance |
|
|
R’m |
R’m |
R’m |
|
Subordinated Loan – Nedbank (Mar 2007) |
1 300 |
1 300 |
Nil |
|
Going Concern Guarantee (Sep 2009) |
1 600 |
||
|
(Allocated to ATL, Sep ‘16) |
541 |
||
|
Working Capital Utilisation (Dec ’14) |
1 055 |
4 |
|
|
Going Concern Guarantee (Sep 2012) |
5 006 |
||
|
Working Capital Utilisation (Jul ’14) |
1 300 |
||
|
Working Capital Utilisation (Jul ’14) |
1 500 |
||
|
Working Capital Utilisation (Dec ’14) |
1 700 |
||
|
Working Capital Utilisation (Dec ’14) |
295 |
211 |
|
|
Going Concern Guarantee (Dec 2014) |
6 488 |
||
|
Working Capital Utilisation (Dec ’14) |
450 |
||
|
Working Capital Utilisation (Apr ‘15) |
1 500 |
||
|
Working Capital Utilisation (Jun ‘15) |
1 500 |
||
|
Working Capital Utilisation (Jun’16) Bridge |
1 000 |
2 038 |
|
|
Going Concern Guarantee (Sep 2016) |
4 720 |
||
|
General Short Term Banking Facilities (Dec’16) |
830 |
||
|
Working Capital Utilisation (Dec’16) Bridge |
1 292 |
||
|
Working Capital Utilisation (Mar‘17) Bridge |
757 |
||
|
LC and Guarantee Facilities (Mar’17) |
522 |
||
|
ATL Credit Card Exposure (Apr’17) |
768 |
||
|
Working Capital Utilisation (May‘17) Bridge |
104 |
447 |
|
|
TOTAL |
19 114 |
16 414 |
2 700 |
06 October 2017 - NW2731
Ross, Mr DC to ask the Minister of Finance
Whether a certain company (Jim Aviation SA) plays any role with regard to the contract concluded between SA Airways Technical and a certain company (Allen Aircraft Radio Corporation); if so, (a) what are the full details of the (i) role that the specified company is playing and (ii) value of its involvement in the specified contract and (b) who are the (i) directors and (ii) shareholders of the specified company?
Reply:
JM Aviation was, as at the time of the tender submission, and still is a BEE partner of AAR. SAA is not privy to the commercial agreement between AAR and JM Aviation and thus is not in a position to respond to the specifics around each party’s role with regard to the contract concluded between SAAT and AAR/JM Aviation. SAAT’s interactions in accordance with the contract are through a dedicated individual who is tasked with the client liaison and quarterly contract review.
a.(i) Not applicable.
a.(ii) Not applicable.
b.(i) Miss M.V. Sokhulu
Miss I.N. Louw
Mr V.A. Ndzeku
Mr J. Aires
b.(ii) Miss M.V. Sokhulu: 35%
Miss I.N. Louw: 30%
Mr V.A. Ndzeku: 20%
Mr J. Aires: 15%
04 October 2017 - NW2477
Topham , Mr B to ask the Minister of Finance
What (a) are the names of each (i) supplier and (ii) service provider of the SA Airways (SAA), (b) goods and services are delivered and provided to SAA in each case, (c) is the monetary value of each contract concluded with each specified (i) supplier and (ii) service provider and (d) is the date (i) on which the specified contracts were entered into and (ii) of expiry of each contract?
Reply:
See attached annexure A
04 October 2017 - NW2823
Maynier, Mr D to ask the Minister of Finance
(1)What is the (a) total value of contingent liabilities and (b) the detailed breakdown of each of the specified contingent liabilities according to (i) type, (ii) institution, (iii) exposure amount and/or (iv) amount drawn against the guarantee that the National Treasury has extended (aa) in each of the past three financial years and (bb) since 1 April 2017; (2) whether the National Treasury has received requests for further guarantees; if not, why not; if so, what are the relevant details in each case?
Reply:
1. Table 1 link below shows the total value of contingent liabilities (guarantees) issued and drawn-down, as well as a breakdown according to State Owned Companies (SOCs) for 2014/15 to 2016/17 as shown in the 2017 Budget Review.
Table 1: Government guarantee portfolio
http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2823TABLE-171004.pdf
2. The National Treasury is currently considering a guarantee request of R3 billion by the South African Broadcasting Corporation. The request was submitted after the broadcaster has made a determination that it would face a liquidity challenge in the current financial year. The SABC has highlighted a number of factors that have contributed to the entity’s declining revenues and increasing operating costs. These include among others, the unfavourable economic conditions and a number of policy decisions with regard to content over the broadcaster’s various platforms, which have led to the decline in the advertising revenues as major advertisers withdrew their business due to declining listenership and viewership in some of the broadcaster’s crucial platforms. In addition, the salary bill and pay-outs of dismissed staff has contributed to an increase in costs. The loss in both advertising and TV license revenue along with increased costs, have contributed significantly to the losses incurred in both the 2014/15 and 2015/16 financial years.
Where no guarantee requests have been submitted, it might be as a result of the fact that the specific SOCs’ financial matrices are such that the SOCs do not require government assistance or the SOCs are able to borrow on the strength of their own balance sheets.
Table 1: Government guarantee portfolio
04 October 2017 - NW2821
Maynier, Mr D to ask the Minister of Finance
(1)Whether a certain official (a) applied for the position (Chief Procurement Officer) and / or (b) requested to be removed from the specified position; if not, in each case, why not; if so, what are the relevant details in each case; (2) whether (a) he and / or (b) the director-general informed the specified person of the imminent removal from a certain position (details furnished) in writing; if not, why not; if so, (i) on what date was the specified person informed and (ii) what were the reasons for the specified person’s removal; (3) whether he will make a statement on the matter?
Reply:
1. (a) No, the official did not apply for the position of Chief Procurement Officer (CPO).
(b) Yes, the official requested to be relieved of the functions of the CPO. In addition, acting capacity is temporary and can be terminated at any time.
2. (a) Yes, the official received a letter from the Minister.
(b) Yes, the Director-General also informed the official.
(i) The official was informed on 31 August 2017.
(ii) To relieve the official of the CPO responsibilities and rotate the acting role among other Chief Directors in the Office of the CPO.
3. A statement has already been issued regarding this matter.
04 October 2017 - NW2789
Shivambu, Mr F to ask the Minister of Finance
Whether he has begun the process of finding a replacement for a certain person (); if not, why not?
Reply:
Yes. The Minister will make an announcement regarding this matter after the South African Airways’ Annual General Meeting.
04 October 2017 - NW2733
Topham , Mr B to ask the Minister of Finance
(1)Whether the SA Revenue Service has plans in place to prevent the illicit trade in any category of goods and/or services; if not, in each case, why not; if so, what are the relevant details in each case; (2) What is the estimated loss in tax revenue collection from the illicit trade in each category of goods and/or services? (3) What is the total estimated loss in tax revenue for the 2016/17 financial year?
Reply:
(1) Yes, SARS has plans in place to prevent the illicit trade in any category of goods and/or services as stipulated in its Strategic Plan 2016/17-2020/21.
(2) These products are in the main strictly prohibited so SARS cannot collect any revenue from them.
(3) Please refer to response 2 (two) above.
04 October 2017 - NW2621
Lees, Mr RA to ask the Minister of Finance
Whether the SA Airways had the required foreign operators permits to fly (a) to and (b) from all destinations on (i) 20 August 2017 and (ii) 31 August 2017; if not, in each case, why not; if so, what are the relevant details in each case?
Reply:
Details on foreign operators permit are reflected below.
|
INTERNATIONAL |
|||
|
COUNTRY |
DESTINATION |
OPERATING AUTHORISATION |
VALIDITY |
|
Australia |
Perth |
Foreign Air Transport Air Operators Certificate |
Yearly - 31 May 2018 |
|
Brazil |
Sao Paulo |
Authorisation from the Ministry of Defence. Appointed Local Legal representative, validated by ANAC. Approved slots. Approved Hotran (Horário de Transporte/Time of Transportation) |
Ongoing |
|
Germany |
Frankfurt and Munich |
Operating Permit through Seasonal Filing. |
IATA Season |
|
Hong Kong |
Hong Kong |
Operating Permit |
Yearly Basis - 24 March 2018 |
|
U.S.A. |
New York and Washington |
Overflying and Landing clearance. Economic Authority from the US DOT |
Overflying and Landing Clearance - IATA Season, Economic Authority – Bi Yearly Basis |
|
United Kingdom |
London |
Foreign Carrier Permit |
IATA Season |
|
AFRICA |
|||
|
COUNTRY |
DESTINATION |
OPERATING AUTHORISATION |
VALIDITY |
|
Angola |
Luanda |
Overflying and Landing clearance. Angola in the process of changing their legislation to include Foreign Operators Permits |
IATA Season |
|
Benin |
Cotonou |
Foreign Operators Permit (A319, A320 and B738) |
Yearly Basis - 18 May 2018 |
|
Cameroon |
Douala |
Foreign Operators Permit Required; of which SAA has one |
|
|
Congo |
Brazzaville and Pointe Noire |
Foreign Operators Permits issued to Foreign Airlines. SAA doesn't require one, as it is an eligible airline. Should they want to include an additional aircraft, letter to be written to ANAC, in order to obtain operating authorisation |
Seasonal submission of overflying and landing clearance |
|
Cote d'Ivoire |
Abidjan |
No Foreign Operators Permit required. |
Seasonal submission of overflying and landing clearance |
|
D.R.C. |
Kinshasa |
Foreign Operators Permit currently not applicable as Authorities and Airlines in process of debating actual cost. Once consensus reached, FOP will be required |
Seasonal submission of overflying and landing clearance |
|
Gabon |
Libreville |
Foreign Operators Permit not required. Gabon CAA intends to put a process in place. Overflying and landing clearance |
Seasonal submission of overflying and landing clearance |
|
Ghana |
Accra |
Overflying and Landing clearance. Foreign Air Operators Certificate - Application ongoing |
Foreign Operators Permit still to be issued |
|
Kenya |
Nairobi |
Foreign Operators Permit not required. Bilateral Air Services Agreement in place |
|
|
Mauritius |
Mauritius |
Overflying and Landing clearance. New requirement for carriers to have a Foreign Operators Permit. This will be applied for when renewing our Seasonal Approval (Oct 17) |
IATA Season |
|
Mozambique |
Maputo |
Foreign Air Operators Licence - A319, A320, B738 and B737 |
IATA Season |
|
Namibia |
Windhoek |
Foreign Air Operator Permit - A319, A320, B738 and B737 |
Yearly Basis - 30 June 2018 |
|
Nigeria |
Lagos |
Foreign Operators Permit not required. Overflying and landing clearance |
Seasonal submission of overflying and landing clearance |
|
Senegal |
Dakar |
Foreign Operators Permit. Will be commencing with the process to obtain one, in order to avoid any future problems |
Seasonal submission of overflying and landing clearance |
|
Tanzania |
Dar Es Salaam |
No Foreign Operators Permit required. Slot Allocation given as operating approval |
Seasonal submission of overflying and landing clearance |
|
Uganda |
Entebbe |
Foreign Operators Permit Required; of which SAA has one |
Seasonal submission of overflying and landing clearance |
|
Zambia |
Lusaka, Livingstone and Ndola |
Foreign Operators Permit |
Yearly - 31 December 2017 |
|
Zimbabwe |
Harare and Victoria Falls |
Foreign Operators Permit on the 19 August 2017, SA025 scheduled to depart from Harare at 07h20 am was grounded by Zimbabwean Civil Aviation Authority (CAA). Reason for grounding was the Foreign Operator Permit (FOP) that was not found on board of the aircraft, the incident affected Harare and Vic Falls. It should be noted that it was confirmed that, there was previously no requirement for SAA to obtain or to have in possession the required FOP. |
Bi-Yearly Basis - 18 August 2019 |
04 October 2017 - NW2482
Maynier, Mr D to ask the Minister of Finance
(1)With reference to his reply to question 1923 on 17 August 2017, what were the (a) total cost and (b) detailed breakdown of such costs of the travel of a certain person to the United States of America; (2) whether the specified person accompanied him on any other official overseas travel since 1 April 2017; if not, what is the position in this regard; if so, in respect of each instance of official overseas travel, what was the (a) purpose, (b)(i) departure date and (ii) inbound arrival date and (c)(i) total cost and (ii) detailed breakdown of such costs?
Reply:
(1)(a) R145 168.72
(1)(b) Air travel R131 935.43
Daily allowance R 13 233.29
(2) Yes, since 1 April 2017 a certain person has accompanied the Minister on three occasions for official travel overseas. All expenses were in line with the provisions as stipulated in the Ministerial Handbook, Chapter 6, 3.1 & 3.2.:
|
(2)(a) Purpose |
(2)(b)(i) Departure date |
(2)(b)(ii) Inbound Arrival date |
(2)(c)(i) Total cost |
(2)(c)(ii) |
|
|
Detailed breakdown |
Amount |
||||
|
BRICS conference and Central Bank Governors meeting, Shanghai |
17 June 2017 |
19 June 2017 |
R204 041.36 |
Daily allowance Air travel |
R4 826.49 R199 214.87 |
|
African Investor Conference, London |
19 June 2017 |
21 June 2017 |
R83 441.57 |
Air travel |
R83 441.57 |
|
G20 conference, Germany |
5 July 2017 |
9 July 2017 |
R80 742.86 |
Air travel |
R80 742.86 |
|
TOTAL |
R368 225.79 |
26 September 2017 - NW2730
Brauteseth, Mr TJ to ask the Minister of Finance
(1)With reference to the contract concluded between SA Airways Technical (SAAT) and a certain company (name furnished), why was the specified contract (a) initially awarded to Air France and (b) subsequently withdrawn; (2) whether the specified airline has taken legal action against SAAT for withdrawing the specified contract; if so, (a) why did the specified airline take legal action, (b) in which court(s) is the specified airline taking legal action, (c) what is the quantum of damages that the specified airline is claiming and (d) what amount has SAAT spent in defending this matter to date?
Reply:
1(a) There was never an initial award of the contract to Air France. The Cross Functional Sourcing Team (“CFST”) had recommended that the Board of Directors of SAAT (“the Board”) make an award to Air France, which was the third ranked bidder in terms of the evaluation process. The recommendation by the CFST was based on certain risks pertaining to bidders ranked first and second. The Board did not agree with the rationale put forward by the CFST and did not approve the award to Air France.
1(b) No withdrawal of the award ever took place.
Air France did not take legal action against SAAT for the withdrawal of a specific contract. Air France took SAAT to court to interdict SAAT from entering into a contract with a preferred bidder.
2(a) Air France made an application for an interdict to stop the award of and conclusion of the contract with a preferred bidder at the North Gauteng High Court.
2(b) North Gauteng High Court
2(c) Air France did not claim any damages from SAAT
2(d) SAAT won the case with costs and Air France was ordered to pay the SAAT’s legal costs. The legal action by Air France did therefore not cost SAAT anything.
26 September 2017 - NW2822
Maynier, Mr D to ask the Minister of Finance
With reference to his reply to question 1533 on 3 July 2017, what is the detailed breakdown of the amount spent on the Expanded Public Works Programme by (a)(i) each national government department and (ii) each public entity reporting to each specified national department, (b)(i) each provincial government department and (ii) each public entity reporting to each specified provincial department and (c) each municipality in the 2016-17 financial year?
Reply:
The coordination and oversight of the Expanded Public Works Programme is the mandate of the national Department of Public Works and hence they are best placed to provide the detailed information being requested.
21 September 2017 - NW2734
Maynier, Mr D to ask the Minister of Finance
What is the detailed (a) breakdown of and (b) valuation for current and non-current assets and investments held by the (i) Industrial Development Corporation, (ii) Development Bank of Southern Africa and (iii) Land Bank according to (aa) listed assets (aaa) held and (bbb) indirectly held and (bb) unlisted investments (aaa) held and (bbb) indirectly held by each of the entities, in each case breaking the current assets and investments down by 0-3 months, 3-6 months, 6-12 months and beyond 12 months?
Reply:
Land bank and DBSA responses are provided below, however, IDC does not report to the National Treasury.
LAND BANK RESPONSES:
(a) (b) (iii)
Distinction between current and non – current assets:
The Group presents the assets and liabilities in decreasing order of liquidity as it provides information that is more reliable and relevant than a current/non-current presentation because the Group does not supply goods or services within a clearly identifiable operating cycle.
|
Gross Loans by Maturity Value |
||||
|
Group 2017 R’000 |
Group 2016 R’000 |
Bank 2017 R’000 |
Bank 2016 R’000 |
|
|
< 3 Months |
7 685 650 |
6 209 050 |
7 685 650 |
6 209 050 |
|
3 – 6 months |
4 793 132 |
4 606 878 |
4 793 132 |
4 606 878 |
|
6 – 9 months |
3 533 562 |
1 506 583 |
3 533 562 |
1 506 583 |
|
9 – 12 months |
1 004 508 |
545 831 |
1 004 508 |
545 831 |
|
1 – 5 years |
4 351 860 |
9 082 557 |
4 351 860 |
9 082 557 |
|
> 5 years |
21 655 326 |
16 873 417 |
21 655 326 |
16 873 417 |
|
TOTAL |
43 024 038 |
38 824 315 |
43 024 038 |
38 824 315 |
(aa) Listed Investments:
(aaa) Held directly:
|
Listed investment (1) |
||||
|
Group 2017 R’000 |
Group 2016 R’000 |
Bank 2017 R’000 |
Bank 2016 R’000 |
|
|
Rhodes Food Group Holdings Limited |
197 000 |
- |
197 000 |
- |
(bbb) Held indirectly:
|
Assets earmarked for medical aid liabilities Listed investments |
||||
|
Group 2017 R’000 |
Group 2016 R’000 |
Bank 2017 R’000 |
Bank 2016 R’000 |
|
|
Local equity |
242 749 |
230 734 |
242 749 |
230 734 |
|
Local bonds |
53 187 |
33 594 |
53 187 |
33 594 |
|
Foreign equity |
49 582 |
63 794 |
49 582 |
63 794 |
|
TOTAL |
345 518 |
328 122 |
345 518 |
328 122 |
The assets earmarked for medical aid liabilities are managed through a mandate by Coronation Asset Managers.
(bb) Unlisted investments:
(aaa) Held directly:
|
Unlisted investments (2) |
||||
|
Group 2017 R’000 |
Group 2016 R’000 |
Bank 2017 R’000 |
Bank 2016 R’000 |
|
|
Capespan Capital (Pty) Ltd |
1 288 |
849 |
1 288 |
849 |
|
Acorn Agri (Pty) Ltd |
75 000 |
- |
75 000 |
- |
|
TOTAL |
76 288 |
849 |
76 288 |
849 |
|
Investments in Land Bank 100% owned subsidiaries |
||||
|
Group 2017 R’000 |
Group 2016 R’000 |
Bank 2017 R’000 |
Bank 2016 R’000 |
|
|
Land Bank Life Insurance Company (Life Insurer) |
- |
- |
30 |
30 |
|
Land Bank Insurance Company (Short term Insurer) |
- |
- |
350 000 |
200 000 |
|
TOTAL |
- |
- |
350 030 |
200 030 |
(bbb) Held indirectly:
|
Assets earmarked for medical aid liabilities Unlisted investments |
||||
|
Group 2017 R’000 |
Group 2016 R’000 |
Bank 2017 R’000 |
Bank 2016 R’000 |
|
|
Commodities – Local ETF |
2 514 |
3 563 |
2 514 |
3 563 |
|
Cash – Local |
11 834 |
25 272 |
11 834 |
25 272 |
|
TOTAL |
14 348 |
25 835 |
14 348 |
28 835 |
The assets earmarked for medical aid liabilities are managed through a mandate by Coronation Asset Managers.
|
Investments held by subsidiaries (LBIC) |
||
|
Group 2017 R’000 |
Group 2016 R’000 |
|
|
Equities |
412 151 |
474 424 |
|
Commodities |
35 568 |
33 064 |
|
Collective investment schemes |
370 893 |
354 568 |
|
Bonds |
247 763 |
259 810 |
|
Cash deposits and similar securities |
146 564 |
178 045 |
|
Investment Policy |
13 980 |
33 986 |
|
TOTAL |
1 226 920 |
1 333 897 |
The above listed investments held by subsidiaries are managed through mandates by with the following Asset Managers:
- Coronation Fund Managers Limited
- Momentum Asset Management
- Argon Asset Management
- Investec Asset Management
- Old Mutual Investment Group (South Africa) (Pty) Ltd Group
DBSA RESPONSE:
|
2. Equity Investment YE 2016/2017 |
|
|
Unlisted |
Beyond 12 months |
|
Direct Investments |
|
|
Ohorongo |
81 313 764 |
|
Proparco |
452 956 708 |
|
The Currency Exchange Fund |
578 411 113 |
|
Indirect Investments - Private Equity Investments |
|
|
African Agriculture Fund (Phatisa) |
176 917 010 |
|
AgrieVie (Strategy Partners) |
152 856 925 |
|
African Health Fund (Aureos) |
243 667 465 |
|
African Infrastructure Investment Fund |
394 847 707 |
|
Convergence Partners |
82 385 417 |
|
Emerging Capital Partners |
615 555 323 |
|
Ethos |
1 |
|
HIFSA |
1 867 607 518 |
|
International Housing Solutions |
190 242 204 |
|
Medu Capital |
18 699 500 |
|
PAIDF |
882 236 100 |
|
PAIDF 2 |
21 936 838 |
|
PAIP |
- |
|
Shanduka |
- |
|
Trinitas |
76 847 532 |
|
Vantage Capital |
136 027 906 |
|
Frandevco |
- |
|
One and only Cape Town Holdings |
- |
|
StarSat |
- |
|
Development Bank of Zambia |
- |
|
Total equity investments |
5 972 509 032 |
20 September 2017 - NW2610
Madisha, Mr WM to ask the Minister of Finance
(1)Whether he approached the Commissioner of the SA Revenue Service to inquire about the tax affairs of a certain family (); if not, what is the position in this regard; if so, (2) will he make public the outcomes of the specified inquiry; if not, why not?
Reply:
Chapter Six of the of the Tax administration Act regulates the confidentiality of taxpayer information. In terms of Section 69 (2) of the Tax Administration Act, a SARS official may not disclose “Taxpayer information” to any person who is not a SARS official. Although there are certain exceptions to this general prohibition none of these exceptions permit SARS to disclose detail in the course of answering the questions posed to SARS.
The Commissioner does not discuss taxpayer information with the Minister.
20 September 2017 - NW2308
Shivambu, Mr F to ask the Minister of Finance
Whether FlySAA is generating revenue from all lounges in airports across the country; if so, (a) what amount and (b) what is the cost of running the specified lounges in each case?
Reply:
The Lounges are facilities operated by SAA and offer selected passengers, comfort beyond that that is afforded in the airport terminal. Such comfort includes comfortable seating, quieter environment, and often better access to customer service representatives. Other offers include wireless internet access and other business services.
The Lounges mainly serve as a service offering to premium passengers, those flying business class, and to frequent fliers who are Voyager members and have achieved a prescribed voyager membership status.
During financial year 2016/17 SAA’s eight (8) Lounges generated a revenue totaling: (a) R74, 867, 946 at the operating costs of: (b) R106, 519, 595
Philosophy of an Airline Lounge:
An Airline Lounge is more of a differentiating factor than a profit/revenue making stream, for the following reasons:
- The market is seeing increased ground services activity as operators strive to compete on quality provision. The business/first class lounge is an especially important part of the ground service experience, and one of the most critical branding elements for an airline.
- To meet the needs of First Class, Business Class and Airlines Frequent Flyers customers, airlines seek to offer a complete airport to airport experience, not only in the air but also on the ground. Well-designed lounges provide a refuge from a very busy airport and an opportunity for airlines to demonstrate their character, qualities and service level.
- For the airline, the quality of their lounge and lounge services are an extension of their brand and a way of enhancing customer relationships. As passengers spend more time at the airport, due to increased security, congestion and delays, the lounge experience has become a powerful differentiator in airline selection.
19 September 2017 - NW2736
Maynier, Mr D to ask the Minister of Finance
What is the detailed breakdown of all development loans extended in the rest of Africa by the Development Bank of Southern Africa (a) in the 2016-17 financial year and (b) since 1 April 2017 in terms of the (i) amounts lent, (ii) sectors lent to, (iii) names of the clients and (iv) names of each country that the clients are from?
Reply:
|
2016-2017 |
YTD August |
Sector |
|
Angola |
155 119 582 |
||
|
Angola Ministry of Finance |
- |
155 119 582 |
Transportation |
|
Ghana |
1 576 372 369 |
343 879 518 |
|
|
Cenpower Generation Company Limited |
24 732 369 |
60 647 143 |
Energy |
|
Karpower International |
1 551 640 000 |
Energy |
|
|
Ghana Airports Company Limited |
283 232 374 |
Transportation |
|
|
Kenya |
220 562 054 |
45 381 516 |
|
|
Kenya Pipeline Company Limited |
220 562 054 |
45 381 516 |
Commercial - Transportation |
|
Madagascar |
99 725 954 |
||
|
Ravinala Airports, S.A. |
99 725 954 |
Transportation |
|
|
Zambia |
1 803 965 113 |
||
|
Itezhi-Tezhi Power Corporation (ITPC) Lusaka |
158 009 192 |
- |
Energy |
|
Maamba Collieries Limited |
217 955 921 |
Energy |
|
|
Zambia Electricity Supply Corporation Limited |
1 428 000 000 |
- |
Energy |
|
Zimbabwe |
49 061 705 * |
- |
|
|
*Infralink (Private) Limited |
49 061 705 |
- |
Roads And Drainage |
|
Total Disbursement |
3 649 961 241 |
644 106 570 |
* This disbursement was a short term loan in respect of the insurance premium paid on behalf of Infralink (Private) Limited with the view of ensuring that the insurance cover on the loan does not lapse.
19 September 2017 - NW2698
Lees, Mr RA to ask the Minister of Finance
(a) What is the total amount of public funds that have been paid from the National Revenue Fund to (i) political parties, (ii) independent public representatives in local government and (iii) independent election candidates from each sphere of Government (aa) in each of the past three financial years and (bb) since 1 April 2017, (b) what are the details of the methods used to determine the (i) total allocations and (ii) allocations to each political party, independent public representatives in local government and independent election candidates, (c) on what dates were the specified allocations paid and (d) what were the funds utilised for in each case?
Reply:
a) There is no public funding paid directly from National Revenue Fund to Political Parties, Independent public representatives in local government and independent election candidates from each sphere of government. Funds are administered by the IEC and allocated for represented political parties at national and provincial legislatures.
b) The total amount appropriated from 2014/15 to 2016/17 financial years, Represented Political Parties Fund (RPPF) amounts to R383 million administered by the IEC and Parliament appropriated amounts to R1.1 billion. Political party funding through Parliament comes as a transfer made by Parliament.
|
Year |
RPPF |
Parliament |
|
2014/15 |
122 096 000 |
352 173 000 |
|
2015/16 |
127 394 147 |
371 033 000 |
|
2016/17 |
134 480 800 |
385 478 000 |
|
2017/18 |
141 204 000 |
414 438 000 |
In 2017/18 financial year only RPPF and Parliament appropriated amounts to R141.2 million and R414.4 million respectively.
c) The Constitution stipulates the funding for political parties to enhance multi-party democracy and the national legislation provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis. The Public Funding of Represented Political Parties Act 103 of 1997 provides a broad framework for the public funding of represented political parties at national and provincial legislatures. The allocations from the Represented Political Parties Fund (RPPF) are paid to each political parties calculated as follows:
i) Allocating 90% of the total amount of funding available from the Fund during a particular financial year paid proportionally. The proportional allocation is determined by dividing the amount (90% from the total funding available during a financial year) proportionally among the participating parties in any legislative body in accordance with the number of seats awarded to each participating party in the National Assembly and the Provincial Legislatures jointly.
ii) The remaining 10% of the amount of funding available from the Fund during a particular financial year is paid equitably meaning it is divided equally among the participating parties in the provincial legislatures.
The allocations from Parliament to political parties is provided by Parliament and regulated by Section 34 of the Financial Management of Parliament and Provincial Legislatures Act of 2009.
d) Funds allocated are transferred quarterly to RPPF and Parliament. Further details on when allocations are made should be obtained from the relevant transferring authority.
e) RPPF funds are allocated to political parties for any purposes compatible with its functioning as a political party in a modern democracy, whereas Parliament allocations are for political party support, constituency support and also for party leadership support. Again further details on what funds are used for can be obtained from the transferring authority and or the annual report of each receiving political party.
19 September 2017 - NW2697
Lees, Mr RA to ask the Minister of Finance
(a) How many applications were received for the special voluntary disclosure programme that closed on 31 August 2017, (b) what is the value of each application, (c)(i) how many of the specified applications were received from each economic sector and/or person and (ii) to what value in each case, (d) how many of the specified applications have been processed to date and (e) what is the total amount of revenue that (i) has been collected from processed applications and (ii) is expected to be collected from unprocessed applications?
Reply:
a) Two thousand and two (2002) SVDP applications were received by 31 August 2017.
b) The gross value of foreign assets declared, based on the 40% inclusion, is R34 939 070 557. The values of the individual declarations range from zero Rands to 1.4 Billion Rands.
We note that some taxpayers have disclosed 100% of the value of foreign assets on the application forms as opposed to only 40%. SARS is verifying the information submitted and will only be in a position to finalise this value once all applications have been verified.
c) (i) SARS is also not in a position to confirm the number of applications by economic sector at this stage.
(ii) This will be confirmed once the verification process has been concluded.
d) Of the 2002 applications received, three hundred and five (305) applications have been processed, resulting in two hundred and eighty (280) SVDP agreements being concluded with tax liabilities totalling R 1 031 627 067.
e) (i) Of that amount, R822 381 676 has been collected to date.
(ii) As highlighted above, based on taxpayers’ own declarations, an additional amount of about R4 billion is potentially collectable, however, we are in the process of verifying the correctness of the declarations.
19 September 2017 - NW2691
Alberts, Mr ADW to ask the Minister of Finance
Whether he is prepared to place all public service pension funds, including the pension funds of state enterprises, under the jurisdiction of the Pension Funds Adjudicator in order to ensure transparent management and cheap adjudication; if not, (a) how will this decision be justified in terms of the principles of fairness and the Constitution of the Republic of South Africa, 1996, and (b) to what extent will pension fund members enjoy protection in the absence of oversight by the Pension Funds Adjudicator; if so, what are the (i) relevant details and (ii) time lines?
Reply:
The Pension Funds Act, 24 of 1956 as it stands does not make provision for the Office of the Pension Funds Adjudicator to have jurisdiction over pension funds other than those registered in accordance with the Act.
14 September 2017 - NW537
Mileham, Mr K to ask the Minister of Finance
(1)Whether, with reference to his reply to question 2150 on 9 November 2016 and noting the requirements of section 7(3) of the Local Government: Municipal Finance Management Act, Act 56 of 2003, the VBS Mutual Bank is a registered bank according to the Banks Act, Act 94 of 1990; if not, why has no action been taken against any of the specified municipalities that deposit funds with the specified bank; if so, (a) on what date was the bank registered and (b) what are the further relevant details in this regard; (2) whether any action will be taken in future to prevent further deposits by municipalities with the bank; if not, why not; if so, what are the relevant details?
Reply:
1. (a) VBS Mutual Bank was established in 1982 and initially operated as the Venda Building Society in the former Venda Homeland. VBS Mutual Bank (VBS) is registered with the South African Reserve Bank and operates under banking license No. 1051 in terms of the Mutual Banks Act of 1993. The bank was granted a permanent Mutual Bank license on 11 October 2000.
(b) VBS Mutual Bank is not registered under the Banks Act of 1990 and therefore does not have a commercial banking license. It is one of three banks currently registered as mutual banks in South Africa. However, as stated in the MFMA, municipalities are free to use the banking services of any of the 17 banks licensed in terms of the Banks Act of 1990, but not with a bank operating in terms of the Mutual Banks Act of 1993.
2. VBS is allowed to accept deposit in terms of section 54(1) (a) of the Mutual Banks Act, 1993 which reads as follows, “A mutual bank may, subject to the provision of this Act and such directives as may from time to time be issued by the Registrar- a) accept deposits and grant loans, advances or other credit in the Republic.”
The National Treasury will communicate with specific municipalities, in this regard.
14 September 2017 - NW2629
Figlan, Mr AM to ask the Minister of Finance
Whether any measures have been put in place in each municipality in Gauteng to ensure that they are equipped to implement the National Treasury’s new Municipal Standard Chart of Accounts (mSCOA); if not, why not in each case; if so, what (a) is the current status of implementation of the mSCOA in each case and (b) are the further relevant details?
Reply:
The National Treasury provided various types of support to municipalities for the implementation of mSCOA. The following initiatives were undertaken in preparation of the affected environment, with a specific focus on the Gauteng province:
1. After promulgation of the mSCOA Regulations, the mSCOA chart was rigorously tested and refined by piloting in selected municipalities. Gauteng pilot municipalities were Cities of Johannesburg, Tshwane and Ekurhuleni.
2. A dedicated website was established to assist municipalities in understanding, educating and implementation of mSCOA, including information such as the project summary document, chart versions, Municipal SCOA circulars, presentations, etc:
3. The mSCOA Frequently Asked Questions (FAQ) Portal was established, an internet based database tool for logging and responding to mSCOA related queries in March 2015 and is available to all municipalities.
4. Ongoing technical guidance and support to municipalities in the form of Circulars:
- mSCOA Circulars No. 1 to 6 provided guidance on mSCOA implementation; and
- MFMA Circular No. 80 and its addendum set out the proposed minimum ICT and business process functionality to enable transacting against mSCOA with effect 1 July 2017.
5. All the circulars were extensively consulted and also published on the National Treasury website.
6. The Transversal Tender: Local Government Financial Management and Internal Control Systems (RT25-2016 in the Government Tender Bulletin of 4 March 2016) was issued to support all municipalities that decided to make any system change(s) and / or upgrade(s).
7. Support provided through various mSCOA National and provincial forums, including mSCOA work groups, vendor forum(s) / platforms and a National Integrated Communication Forum involving the Gauteng Provincial Treasury and Gauteng pilot municipalities. These sessions were duplicated by the Gauteng Provincial Treasury in mSCOA, CFO and other relevant provincial forums.
8. Provided training across the affected environment, which included:
- A one-day training initiative: ‘Demystifying mSCOA’, which was attended by 118 Gauteng officials on 8 December 2014;
- 2-day non-accredited mSCOA training sessions was rolled-out for piloting municipalities, system vendors, and provincial treasuries. Gauteng delegates participated on 5 and 6 May 2015, with concurrent metro specific sessions facilitated with the Cities of Ekurhuleni, Johannesburg and Tshwane;
- 3-day non-accredited sessions for all non-pilot municipalities was rolled-out to ensure that all non-pilot municipalities have a clear understanding of mSCOA and impact this will have on their respective municipalities. The training was attended by 71 officials in Gauteng comprising of 39 and 29 from municipalities and provincial treasury respectively.
- Drawing closer to phase 4 project-end, a strategic partnership was concluded resulting in the future outsourcing of all project related training (accredited and- non-accredited) through a strategic partnership with the Certified Institute of Government Finance Audit and Risk Officers (CIGFARO (previously IMFO)) in cooperation with SALGA with effect 01 December 2016.
- Dedicated support through the placement of a mSCOA Advisor as part of mSCOA project phase 4 (01 February 2016 to 31 March 2017) for project phase 5 (01 June 2017 to 31 March 2020) to the Gauteng Provincial Treasury to support municipalities in the province.
(a) & (b) The current status of implementation in Gauteng can be summarised as follows:
(i) All Gauteng municipalities successfully submitted both their tabled and adopted budgets in the mSCOA data string to the Local Government Database hosted by the National Treasury;
(ii) 3 of the 11 Gauteng municipalities (City of Johanesburg, Ekurhuleni and Midvaal) successfully submitted MFMA section 71 reports in the mSCOA data strings;
(iii) 5 of the 11 Gauteng municipalities (City of Johannesburg, City of Tshwane, Emfuleni, Rand West City and Sedibeng) successfully submitted their integrated development plans in the mSCOA data string format;
(iv) The recent mSCOA transaction verification assessments conducted by the National Treasury and Gauteng Provincial Treasury on whether municipalities are transacting across selected test areas refers. Verification was completed for 7 municipalities, none of the verified municipalities in Gauteng is transacting across all the 8 selected test areas. The verified municipalities are partially transacting across some test areas. Each municipality not fully transacting across the 8 areas assessed, National Treasury and Gauteng Treasury are engaging all affected municipalities individually on their project plan to reach full transacting together with concurrent hands-on-support.
14 September 2017 - NW2624
Maynier, Mr D to ask the Minister of Finance
Whether there were any requests for deviations from the mandatory cost containment measures announced by the National Treasury (a) in the 2016-17 financial year and (b) since 1 April 2017; if not, what is the National Treasury’s policy position with regard to requests for deviations in the specified financial year and period; if so, (i) what is the name of the department, constitutional entity and/or public entity that made a request for a deviation, (ii) when was each deviation (aa) requested and (bb) approved and/or denied, (iii) what was the nature of each specified deviation requested, (iv) what was the motivation for requesting each deviation and (v) why was the specified deviation request approved and/or denied in each case?
Reply:
(a) Yes, the received deviations by the Office of the Chief Procurement Officer are indicated in the table below.
(b) Yes, the received deviations by the Office of the Chief Procurement Officer are indicated in the table below.
|
(i) Name of Department |
(ii) When was each deviation |
(iii)The nature of each specified deviation requested |
(iv) The motivation for requesting each deviation |
(v) Why was the specified deviation request approved and/or denied in each case |
|
|
(aa) Requested |
(bb) Approved and/or denied |
||||
|
Department of Military Veterans |
19 June 2017 |
Approved |
Business Class travel Require guidance on travel provisions for members of the DMV’s Appeals Board and Advisory Council that are appointed in terms of sections 9 and 19 of the Military Veterans Act 18 of 2011 and not in terms of Section 12A of the Public Service Act of 1994 as was previously indicated. |
|
|
|
The Presidency |
31 March 2017 |
Not approved |
Request to exceed the maximum allowance rate per star grading for domestic hotel accommodation |
|
National Treasury does not give blanket approvals to deviate from cost containment measures. |
|
The Presidency |
29 August 2017 |
Under review |
Request for deviation from Instruction Note No. 4 of 2017/18 for essential core staff to travel in the same class when accompanying the President and Deputy-President on commercial flights. |
Arrangement of commercial air travel on occasion, including accommodating of essential core staff travelling with principals. |
In efforts to minimise cost, the Presidency will on occasion arrange for commercial air travel for the President and Deputy President. On such occasions, it is critical that essential core staff traveling with the Principals be accommodated in the same class during the flights. The core staff comprises, but is not limited to, Private/Assistant Private Secretary, Presidential Aide, Medical Doctor and two Close Protectors. The National Treasury Instruction Note No. 4 of 2017/18 makes provision for business class travel for certain ranks. However, this excludes the core support staff of the Principals due to ranks not covered, irrespective of duration of travel. |
|
Department of Labour |
20 July 2017 |
Approved on condition that the newspapers are not procured for personal use of employees |
Procurement of newspapers and magazines |
The newspapers are for comprehensive monitoring of the mass media, the development of media analysis and research solutions and delivering of most appropriate interventions as a key element of the strategic management function. |
Newspapers are for comprehensive monitoring of the mass media, the development of media analysis and research solutions and delivering of most appropriate interventions as this is a key element of the strategic management function. |
14 September 2017 - NW2623
Maynier, Mr D to ask the Minister of Finance
(1)With reference to mandatory cost containment measures announced by the National Treasury, by what amount did expenditure on (a) consultants, (b) travel and subsistence, (c) catering and events, (d) entertainment, (e) advertising, (f) newspapers and advertising, (g) conference and (h) any other specified expenditure item(s) decrease in each department, constitutional institution and public entity listed in Schedules 2 and 3 of the Public Finance Management Act, Act 1 of 1999, as amended, in the 2016-17 financial year and since 1 April 2017; (2) What is the total amount of expenditure in each of the specified categories in each of the specified financial years?
Reply:
This reply provides additional information to supplement the information provided in the reply to the above question, dated 12 September 2017. The first reply focussed mainly on the preliminary outcome for 2016/17 and the first 5 months of the 2017/18 financial year. In the tables below data is provided from 2013/14, the base year for the introduction of the cost containment measures. Data for 2017/18 has been updated with the latest spending data as at 31 August 2017. Historical data has been extracted from the financial systems of government and might differ from the published financial statements of departments, as all data has been mapped to the 2017/18 version of the chart of accounts.
1. Total expenditure by national departments on items that relate to the mandatory cost containment measures decreased in nominal terms by R2.1 billion from 2013/14 to 2016/17, an average annual decrease of 5.4 per cent. This implies a real decline of R4.5 billion (in 2016 Rands) or a real average annual percentage decrease, after taking the effect of inflation into account, of 10.5 per cent. Table 1 below provides a consolidated summary of expenditure items related to the cost containment instruction note for national government. Details by national department is provided in the attached annexure A. The table provides actual expenditure for the 2013/14, 2014/15 and 2015/16 financial years, (mapped to the 2017/18 version of the chart of accounts), as well as the preliminary outcome for 2016/17 and data for the first 5 months of 2017/18.
Table 1: Summary of expenditure on cost containment related items: National departments 1 see the link below:
http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2623Table1-170926.pdf
- Excludes Parliament
Total expenditure by provinces on items that relate to the mandatory cost containment measures increased in nominal terms by R182.2 million from 2013/14 to 2016/17, an average annual increase of 0.6 per cent. However, this implies a real decline of R1.7 billion (in 2016 Rands) or a real average annual percentage decrease, after taking the effect of inflation into account, of 4.8 per cent. Table 2 below provides a consolidated summary of expenditure items related to the cost containment instruction note for all provinces. Details by province is provided in the attached annexure B. The table below provides actual expenditure for the 2013/14, 2014/15 and 2015/16 financial years, (mapped to the 2017/18 version of the chart of accounts), as well as the preliminary outcome for 2016/17 and data for the first 5 months of 2017/18.
As indicated in the previous response, expenditure information on these spending items is not available for constitutional institutions and public entities listed in Schedules 2 and 3 to the PFMA since these institutions utilise different entity controlled financial systems for their payments.
Table 2: Summary of expenditure on cost containment related items: All provinces see the link below:
http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2623Table2-170926.pdf
2. The total expenditure in relation to (a) consultants, (b) travel and subsistence (c) catering (d) entertainment (e) advertising (f) newspapers and publications (g) conferences and (h) other related expenditure for the 2016/2017 financial year amounts to R11.5 billion for national departments and R10.4 billion for provinces, as indicated in Tables 1 and 2 above. Corresponding expenditure from 1 April 2017 to 31 August 2017 amounts to R4.2 billion for national departments and R4.7 billion for provinces. Details of expenditure by national department is provided in annexure A and a summary of expenditure by province is provided in annexure B.
See the link for AnnexureA and B: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2623Annexure_-170926.pdf
14 September 2017 - NW2595
Shivambu, Mr F to ask the Minister of Finance
When are the application dates (a) opening and (b) closing for the board positions of all entities and councils reporting to the National Treasury?
Reply:
The opening and closing dates for the advertisement for vacancies for the Board positions for entities and councils reporting to the Minister of Finance was:
a) 11 June 2017
b) 23 June 2017
14 September 2017 - NW2316
Rabotapi, Mr MW to ask the Minister of Finance
(1)With reference to his reply to question 1755 on 20 July 2017 with regard to the protective service officers allotted to the Commissioner of the South African Revenue Service (SARS), what is the total expenditure for this service in (a) each of the past five financial years and (b) since 1 April 2017; (2) with regard to the protective service officers allotted to the (a) spouse of the Commissioner of SARS and (b) staff members of SARS, what is the total expenditure for each service in (i) each of the past five financial years and (ii) since 1 April 2017; (3) (a) on what date was the last threat and risk assessment done for (i) the Commissioner of SARS and (ii) the spouse of the Commissioner of SARS and (b) on what date is each case set to be reviewed again?
Reply:
1. (a) The number of Protective Service Officers (PSO) is determined by the Threat and Risk Assessment (TRA) which is compiled in advance by South African Police. By divulging the number protectors allotted to the Commissioner will bridge security measures currently in place.
Total expenditure is dependent on the employee grade see breakdown below:
|
Period: 2013/14 |
Minimum of grade 4B pa |
Midpoint of grade 4B pa |
Maximum of grade 4B pa |
|
01 April ‘13-31 March 2014 |
202 608 |
270 144 |
337 668 |
|
Cell Phone |
R650 |
||
|
Uniform Allowance |
R4,765 |
|
Period: 2014/15 |
Minimum of grade 4B pa |
Midpoint of grade 4B pa |
Maximum of grade 4B pa |
|
1 April 2014–31 March 2015 |
215 508 |
295 212 |
374 916 |
|
Cell phone |
R650 |
||
|
Uniform Allowance |
R5 060.43 |
|
Period: 2015/16 |
Minimum of grade 4B pa |
Midpoint of grade 4B pa |
Maximum of grade 4B pa |
|
1April 2015–31 March 2016 |
228 504 |
313 008 |
397 524 |
|
Cell Phone |
R500 |
||
|
Uniform Allowance |
R 5 313.58 |
|
Period: 2016/17 |
Minimum of grade 4B pa |
Midpoint of grade 4B pa |
Maximum of grade 4B pa |
|
1April 2016–31 March 2017 |
237 984 |
317 316 |
396 648 |
|
Cell Phone |
R400 |
||
|
Uniform Allowance |
R 7 226.47 |
b) The total expenditure for this service in (b) since 1 April 2017.
|
Period: 2017 |
Minimum of grade 4B pa |
Midpoint of grade 4B pa |
Maximum of grade 4B pa |
|
1April 2016–31 March 2017 |
R237 984 |
R336 024 |
R396 648 |
|
Cell phone |
R500 |
||
|
Uniform Allowance |
Not yet paid |
(2) With regard to protective service officers allotted to (a) the spouse of the Commissioner and (b) staff members of SARS, please refer to the response at 1(a) and (b) above.
(3) (a) The South African Revenue Service does not conduct Threat and Risk Assessments (TRA) either (i) for the Commissioner and (ii) the Commissioner’s spouse. (b) The TRA is compiled in advance by the South African Police Services; SARS is therefore unable to confirm when each case is set to be reviewed.
12 September 2017 - NW2561
Alberts, Mr ADW to ask the Minister of Finance
(1)Whether any legal opinion was obtained before the application of the clean break principle was implemented, when a member of the Government Employees Pension Fund (GEPF) gets divorced; if not, (a) why not and (b) how the validity of the principle was established; if so, (i) what are the relevant particulars and (ii) what did the legal opinion find regarding the (aa) constitutionality of the unilateral creation of a debt for a member and (bb) rationality of the principle; (2) how can access to a copy of the legal opinion be obtained?
Reply:
The GEPF is currently a respondent in a court application brought against it by a member on the application of the “clean break principle” where many of the issues canvassed in this question are involved. It is therefore not appropriate to answer these questions at this time.
12 September 2017 - NW2470
Alberts, Mr ADW to ask the Minister of Finance
(1)With reference to the clean break principle when a member of the Government Employees Pension Fund (GEPF) gets divorced, (a) how many members of the fund have been affected by this since the rule was instituted, (b)(i) what is the cumulative debt of all the members to the fund and (ii) what is the interest rate at which the debt is levied and (c) how many members have already expressed objections to the principle; (2) whether the principle will be retained and whether plans exist to abolish it; if not, (a) why not and (b) what are the full reasons and particulars in this regard; if so, (i) what are the concomitant particulars and time lines, (ii) with what will the principle be replaced and (iii) what happens to the members who have already incurred debt in terms of the clean break principle?
Reply:
1. (a) It is important to understand that there is no debt in the conventional sense of the word. The GEPF provides affected divorced members with a funding mechanism to replenish their benefit after paying out the non-member spouse without adversely affecting other members of the Fund.
(b) (i) as explained in (a) above, it is not correct to consider the so-called divorce debt in the GEPF context as conventional debt that accumulates. Divorced members choose to replenish their benefits or not.
(ii) The GEPF does not keep statistics of members who object as the use of this mechanism to replenish their benefit is a member’s choice. However, the GEPF is a respondent in a court application by a member on the application of the “clean break principle.”
2 Although there are no obvious negative effects of the current application of the clean break principle, it confuses members, and the Board has already decided to discard the current application of the clean break principle in its current form. After the GEPF consulted the employer and employee representative through the Public Service Coordinating Bargaining Council (PSCBC), the PSCBC has taken a resolution, Resolution 1 of 2017, to make the necessary changes to the GEP Law and rules. This is subject to the normal process of changing laws in the country
(i) The current mechanism for implementing the clean break principle will be replaced with a reduction of the member’s years of service commensurate with the amount paid to the non-member spouse in terms of the divorce decree.
(iii) Members who have already used the current the clean break principle mechanism to replenish their benefit will be given the option to have their years of service reduced commensurate with the amount paid to the non-member spouse in terms of the divorce decree.
2. Although there are no obvious negative effects of the current application of the clean break principle, it confuses members, and the Board has already decided to discard the current application of the clean break principle in its current form. After the GEPF consulted the employer and employee representative through the Public Service Coordinating Bargaining Council (PSCBC), the PSCBC has taken a resolution, Resolution 1 of 2017, to make the necessary changes to the GEP Law and rules. This is subject to the normal process of changing laws in the country.
12 September 2017 - NW2624
Maynier, Mr D to ask the Minister of Finance
Whether there were any requests for deviations from the mandatory cost containment measures announced by the National Treasury (a) in the 2016-17 financial year and (b) since 1 April 2017; if not, what is the National Treasury’s policy position with regard to requests for deviations in the specified financial year and period; if so, (i) what is the name of the department, constitutional entity and/or public entity that made a request for a deviation, (ii) when was each deviation (aa) requested and (bb) approved and/or denied, (iii) what was the nature of each specified deviation requested, (iv) what was the motivation for requesting each deviation and (v) why was the specified deviation request approved and/or denied in each case?
Reply:
a) Yes, the received deviations by the Office of the Chief Procurement Officer are indicated in the table below.
b) Yes, the received deviations by the Office of the Chief Procurement Officer are indicated in the table below.
|
(i) Name of Department |
(ii) When was each deviation |
(iii)The nature of each specified deviation requested |
(iv) The motivation for requesting each deviation |
(v) Why was the specified deviation request approved and/or denied in each case |
|
|
(aa) Requested |
(bb) Approved and/or denied |
||||
|
Department of Military Veterans |
19 June 2017 |
Approved |
Business Class travel Require guidance on travel provisions for members of the DMV’s Appeals Board and Advisory Council that are appointed in terms of sections 9 and 19 of the Military Veterans Act 18 of 2011 and not in terms of Section 12A of the Public Service Act of 1994 as was previously indicated. |
|
|
|
The Presidency |
31 March 2017 |
Not approved |
Request to exceed the maximum allowance rate per star grading for domestic hotel accommodation |
|
National Treasury does not give blanket approvals to deviate from cost containment measures. |
|
The Presidency |
29 August 2017 |
Under review |
Request for deviation from Instruction Note No. 4 of 2017/18 for essential core staff to travel in the same class when accompanying the President and Deputy-President on commercial flights. |
Arrangement of commercial air travel on occasion, including accommodating of essential core staff travelling with principals. |
In efforts to minimise cost, the Presidency will on occasion arrange for commercial air travel for the President and Deputy President. On such occasions, it is critical that essential core staff traveling with the Principals be accommodated in the same class during the flights. The core staff comprises, but is not limited to, Private/Assistant Private Secretary, Presidential Aide, Medical Doctor and two Close Protectors. The National Treasury Instruction Note No. 4 of 2017/18 makes provision for business class travel for certain ranks. However, this excludes the core support staff of the Principals due to ranks not covered, irrespective of duration of travel. |
|
Department of Labour |
20 July 2017 |
Approved on condition that the newspapers are not procured for personal use of employees |
Procurement of newspapers and magazines |
The newspapers are for comprehensive monitoring of the mass media, the development of media analysis and research solutions and delivering of most appropriate interventions as a key element of the strategic management function. |
Newspapers are for comprehensive monitoring of the mass media, the development of media analysis and research solutions and delivering of most appropriate interventions as this is a key element of the strategic management function. |
07 September 2017 - NW2415
Maynier, Mr D to ask the Minister of Finance
(1) With reference to his reply to question 1381 on 3 July 2017, since what date has a certain person (name furnished) been on suspension from the SA Revenue Service (SARS); (2) whether the specified person was escorted out of the SARS premises by security officials; if not, why not; if so, why?
Reply:
1. Mr Jonas Makwakwa was officially suspended on 15 September 2016.
2. His suspension was effected in accordance with the provisions and relevant procedures of the SARS suspension policy.