Questions and Replies

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21 May 2021 - NW949

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Graham, Ms SJ to ask the Minister of Mineral Resources and Energy

Whether, with reference to his reply to question 2569 on 27 November 2020, any progress has been made on the investigation of each of the six children who died in three borrow pits in the Moretele Local Municipality, North West; if not, why not; if so, what (a) indications are there that there was negligence, (b) indications are there that stricter compliance and regulations are required, (c) measures will be put in place as a result and (d) support and assistance will be given to the families of the six children?

Reply:

The root causes could not be determined, this matter is not within the competency of the DMRE. Following the investigations that were undertaken by the Department’s Regional Office, it is evident that the incident took place on an area that was not authorised by the Department. It is alleged that the contractor who opened the borrow pit was contracted by the Department of Public Works for purpose of using the materials for road construction. Furthermore, the Department also learnt that upon completion of their activities, the contractor apparently had an intention to rehabilitate the area, it is alleged that the community did not support the issue of rehabilitation on the basis that the borrow pit will serve as water storage for their animals (cattles). Following the delisting of these activities In terms of the EIA Regulations, 2017 as amended and the associated Listing Notices, read also with section 106 of the Mineral and Petroleum Resources Development, Act 28 of 2002, the Department of Public Works is now no longer required to apply for both the Environmental Authorisations/Mining Authorisations from this Department. Given this exemption, this Department is not a competent authority to deal with this matter.

(b) Considering that there were no Environmental Authorisations issued by the Department, the onus lies with the Department that appoints the contractor to ensure that the area is rehabilitated in a safe manner.

(c) See the previous remarks

(d) The Department is not an appropriate institution to determine this issue but the relevant Department can furnish clarity in this regard.

21 May 2021 - NW623

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Madokwe, Ms P to ask the Minister of Mineral Resources and Energy

Whether, taking into consideration the global shift towards cleaner fuel and energy consumption in an attempt to curb the global carbon footprint, his department has any plans in place to ensure that PetroSA starts producing cleaner fuel; if not, what are the reasons that no plans are in place; if so, what are the relevant details, including the (a) status of the specified project and (b) date by which implementation can be expected?

Reply:

PetroSA has plans in place that are targeting a new imported Liquefied Natural Gas supply to replace the depleting indigenous gas produced from its offshore gas fields for the last 30 years. Gas imports for the production of synthetic fuels are planned to start in 2022. The potential for longer term gas supply from newly discovered offshore gas fields is also being considered.

PetroSA is reviewing the potential to convert the Mossel Bay site to a ‘carbon free’ blue hydrogen production facility which will be explored in more detail when operation on imported Liquefied Natural Gas is completed. Operation on Liquefied Natural Gas will also enable PetroSA to recommission the Methcap renewable power facility installed to produce power from biogas which was in operation from 2004/5 until November 2020 (i.e. green electricity).

PetroSA fuel produced from processing of gas meets most of the CF2 specifications. However, capital investment will be required to meet the anticipated South African Clean Fuels 2 specifications.

PetroSA’s depleted offshore gasfields are also identified as the most promising carbon dioxide storage opportunity in South Africa to facilitate a lower carbon footprint. The ‘Atlas on geological storage of carbon dioxide in South Africa’ was completed together with the Council for Geoscience and major industry players highlights PetroSA’s existing infrastructure potential in this regard.

20 May 2021 - NW825

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

(1)Whether, with reference to the findings by the auditor-general that some government employees applied for the Social Relief of Distress grant (SRD), his department took any disciplinary and/or legal steps against the implicated government employees; if not, why not; if so, what are the relevant details; (2) Whether any steps have been taken to recover the monies from the implicated government employees; if not, why not; if so, what are the relevant details; (3) Whether any measures have been put in place to ensure that no government employee will be able to fraudulently and/or unlawfully apply for and/or receive the SRD grant; if not, why not; if so, what are the relevant details?

Reply:

1. No employees of the Department of Public Service and Administration (DPSA) has been implicated, therefore the Department did not take any disciplinary and/or legal steps. Discipline management is a decentralised function and therefore the responsibility of each department to enforce the disciplinary code and take the necessary legal steps to recover public funds. The DPSA is only mandated to take action against its own employees when found guilty of wrongdoing through a disciplinary process.

2. The DPSA did not recover monies from the implicated public service employees. Before monies can be recovered from employees, an investigation must be finalised with sufficient evidence of criminality collected and recommending for monies to be recovered. The recovery of monies will then be effected through a court order. The mandate to investigate fraud, corruption and crime belongs solely to the South African Police Service, or under special circumstances to the Special Investigative Unit (SIU). The DPSA, including the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit (PAEIDTAU), does not have a mandate to investigate crime or to recover monies from employees.

3. The DPSA established that all cases regarding government employees receiving Social Relief of Distress grants (SRD) were referred to the Fusion Centre, with a process embarked upon to analyse the data and to refer established cases to investigators. The Fusion Centre is an Anti-Corruption Task Team initiative, where resources of law enforcement agencies are pooled and coordinated to investigate and prosecute priority corruption cases. The DPSA has a Memorandum of Understanding with the Financial Intelligence Centre (who are involved in the Fusion Centre) in terms of which the DPSA will assist any investigations by identifying Public Service employees in corruption cases. In this regard, the DPSA will assist with the identification of Public Service employees from the SRD Grant cases, and after investigations established criminal conduct involving public service employees, the PAEIDTAU will monitor if national and provincial departments are taking disciplinary steps against the identified employees. The Department of Social Development will have to implement measures on their systems to prevent government employees to be able to fraudulently and/or unlawfully apply for and/or receive the SRD grants, as those systems are not managed or maintained by the DPSA.

End

20 May 2021 - NW827

Profile picture: Gondwe, Dr M

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

Whether, in light of the rising budget deficit of the Republic which has been made worse by the economic impact of COVID-19, necessitating a need for the rationalisation of Government expenditure through, among other considerations, a rationalisation of the public service headcount, his department has introduced a rationalisation process of the staff complement in the public service; if not, why not; if so, (a) what are the relevant details and (b) by what date is the rationalisation envisaged to be completed?

Reply:

The Department of Public Service and Administration has not introduced rationalisation of the Public Service headcount. Headcount increases have not been the main driver of the wage bill. Rationalisation of the Public Service headcount may adversely affect service delivery to citizens in critical sectors such health, education and policing amongst others. The 2021 Budget Review, has indicated that the government wage bill must be managed within the Fiscal Framework which assumes that compensation budget ceilings will be maintained.

Not applicable in terms of the response in (a).

End

20 May 2021 - NW1259

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De Freitas, Mr MS to ask the Minister of Tourism

(a) What measures have been taken to develop the pricing structures and systems for (i) local and (ii) international tourists, (b) at what stage is the process at present, (c) what has been achieved to date, (d) what are the (i) timelines, (ii) time frames and (iii) deadlines of the process and (e) how is the process (i) monitored and (ii) measured?

Reply:

The setting of prices falls within the ambit of the private sector. South African Tourism does engage the sector to consider special offers as part of the promotion activities they conduct i.e. Sho’t Left programme. Furthermore, The Minister of Tourism called for the sector to consider two-tier pricing model i.e one for Domestic tourist and one for International tourist. It has been encouraging to see a growing number of business responding to this call. For long term purposes, the policy review policy panel is also considering wether there is a need for a policy pronouncement on pricing.

(a) – (e) Not applicable

20 May 2021 - NW1260

Profile picture: De Freitas, Mr MS

De Freitas, Mr MS to ask the Minister of Tourism

(a) What measures have been taken to make the rating system compulsory and free, (b) at what stage is the process at present, (c) what has been achieved to date, (d) what are the (i) timelines, (ii) time frames and (iii) deadlines of the process and (e) how is the process (i) monitored and (ii) measured?

Reply:

No measures have been taken to make the grading system free and compulsory. The Minister has appointed a Policy Review process which will review all the areas of work by the department and this will include Grading.

(b) – (e) Not applicable

20 May 2021 - NW1258

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De Freitas, Mr MS to ask the Minister of Tourism

(a) What measures have been taken to maximise the communication and relationships with the Department of International Relations and Cooperation in order to grow tourism, (b) how is the communication and relationships with the specified department (i) monitored and/or (ii) measured and (c) what have been the (i) successes and/or (ii) failures (aa) in the past three financial years and (bb) since 1 April 2021?

Reply:

a) Measures to maximize communication with DIRCO

Communication between the Department of Tourism and the Department of International Relations and Cooperation (DIRCO) is institutionalised and effective. The department works with DIRCO on matters pertaining to the implementation of tourism Bilateral and Multilateral Relations and Cooperation. The department working with South Africa Tourism and DIRCO provides support to South Africa’s missions to support tourism growth in pursuit of economic diplomacy.

b) (i) and (ii) How is communication monitored and measured?

Through management reporting.

c) (i) an ( ii) Success and failures of the (aa) past three financial years and (bb) since 1 April 2021

(aa) Since the establishment of the standalone Department of Tourism the two departments work well together resulting in, amongst others, the identification of Tourism as a pillar of Economic Diplomacy.

(bb) Since the onset of COVID-19 both departments adjusted well to working remotely and have kept constant virtual contact.

20 May 2021 - NW1321

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Winkler, Ms HS to ask the Minister of Tourism

(1)Whether, considering that the tourism sector is still in dire financial straits, her department intends to extend the Temporary Employment Relief Scheme (TERS) payments; if not, why not; if so, what are the relevant details; (2) whether her department has engaged with the Minister of Finance to extend TERS payments; if not, why not; if so, on what date will an answer be communicated on whether TERS payments will be extended or not?

Reply:

The Department of Tourism does not have the mandate on measures such as the Temporary Employer Relief Scheme (TERS). However, the Department of Employment and Labour have been engaging social partners at Nedlac and the tourism sector is also represented in those discussions. It is suggested that the Honourable member refers her question to the Minister of Employment and Labour.

  1. – (2) Not applicable

19 May 2021 - NW1226

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Tito, Ms LF to ask the Minister of Basic Education to ask the Minister of Basic Education

What preparations has she made to protect both (a) teachers and (b) learners in schools against the third wave of the coronavirus?

Reply:

(a) and (b). The Minister and Department of Health have advised the country that the implementation of the Non-Pharmaceutical Interventions (NPIs) is the most effective way of preventing the spread of COVID-19. To that end, the Department of Basic Education has developed the Standard Operating Procedure (SOP) for the Management and Containment of COVID-19, which are used in the basic education sector.  Learners, teachers and non-teaching staff are provided orientation on the SOP.  Schools ensure that the SOP is adhered to, and that the COVID-19 cleaning and sanitising resources are available.  The wearing of face masks is mandatory in schools.  Screening is conducted for learners, staff and visitors.  All these measures continue to be emphasised so that schools remain a much safer environment for all.   

19 May 2021 - NW1032

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Arries, Ms LH to ask the Minister of Basic Education to ask the Minister of Basic Education

What measures has her department put in place to ensure that all learners who are entitled to school feeding schemes are getting their meals every day?

Reply:

The National Department, in cooperation with Provincial Education Departments (PEDs), submitted approved business plans to the National Treasury for the new financial year with the subsequent release of funds to provinces in April 2021. Amidst COVID-19 restrictions and to ensure learners receive meals, the Programme is implemented using three feeding modalities (i) feeding learners attending school (ii) collection of meals by learners not attending school due to rotation, and (iii) collection of food item/parcels by learners and/or parents. Provinces monitor and support schools. 

19 May 2021 - NW731

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Brink, Mr C to ask the Minister of Finance

Whether he and/or the National Treasury have taken any steps to assess the effectiveness of municipal audit committees constituted in terms of section 166 of the Local Government: Municipal Finance Management Act, Act 56 of 2003; if not, what steps does he intend to take for such an assessment to be done; if so, what are the relevant details of the findings of the assessment with regard to the failure of many municipal audit committees to prevent recurring financial and supply chain management related irregularities?

Reply:

The Municipal Finance Management Act (MFMA) section 5 mandates National Treasury to fulfil its responsibilities in terms of Chapter 13 of the Constitution and MFMA, to the extent necessary to comply with this requirement, the National Treasury may monitor and assess compliance by municipalities and municipal entities with the act; and any applicable standards of generally recognised accounting practice and uniform expenditure and revenue classification systems amongst others.

The National Treasury performs assessments on the establishment and the functioning of the audit committees in municipalities. The focus is on the Non-delegated municipalities, because of the size of their budgets and the types of services provided. The assessments are utilised to develop support programmes for audit committees and internal auditors in these municipalities. The review is performed annually and focuses on:

  • Establishment, membership and appointment
  • Skills, experience and training
  • Meetings of the committee
  • Resources
  • Relationship with council and management
  • Oversight responsibilities
  • Audit Committee assessments
  • Reporting

In terms of the oversight responsibilities of ensuring that management implements corrective action of previously reported findings by both Auditor-General and Internal Audit units, the National Treasury’s assessment found that the majority of the committees do track management’s efforts to implement corrective action, however, there is room for improvement on the rate at which management implements the recommendation from the auditors. This is one of the root causes for recurring or repeat findings from the auditors.

19 May 2021 - NW129

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Schreiber, Dr LA to ask the Minister of Finance

(1) What is the breakdown of the current Rand value of each national government department’s backlog for failure to pay service providers within 30 days, in compliance with the provisions of the Public Finance Management Act, Act 1 of 1999; (2) (a) what is the breakdown of the current Rand value of each provincial government’s backlog for failure to pay service providers within 30 days and (b) which provincial department has he found to be the worst offender in each case?

Reply:

National Departments

1. Table 1 below provides the total Rand value of invoices older than 30 days that were not paid as at 31 December 2020.

Table 1: National Departments: Rand value of Unpaid Invoices as at 31 December 2020

No.

National Department

Rand Value

1

Cooperative Governance

R 17,850

2

Police

R 71,674

3

Home Affairs

R 636,813

4

Statistics South Africa

R 832,404

5

Women, Youth and Persons with Disabilities

R 1,712,016

6

Mineral Resources and Energy

R 4,311,452

7

Public Works and Infrastructure including PMTE

R 51,673,929

8

Water and Sanitation including Trading Entity

R 357,636,505

Total Rand Value

R 416,892,642

Provincial Departments

(2)(a) Table 2 below provides the total Rand value of invoices older than 30 days that were not paid as at 31 December 2020.

Table 2: Provincial Departments: Rand value of Unpaid Invoices at the end of December 2020

No.

Provincial Government

Rand Value

1

Northern Cape

R 517,636

2

Western Cape

R 600,546

3

Limpopo

R 28,471,372

4

Mpumalanga

R 97,788,753

5

Kwazulu-Natal

R 104,363,510

6

Free State

R 112,778,551

7

North West

R 351,858,302

8

Gauteng

R 389,973,533

9

Eastern Cape

R 2,114,327,450

Total Rand Value

R 3,200,679,654

b) Table 3 below provides a list of provinces that are worst performing in terms of payment of suppliers within the prescribed period.

Table 3: Worst performing provincial departments in each province at the end of December 2020

No.

Provincial Government

Rand Value

31 December 2020

Worst offenders (Department)

Rand Value

31 March 2021

%

1

Northern Cape

R 517,636

Education

R 517,636

100%

2

Western Cape

R 600,546

Education

R 600,546

100%

3

Limpopo

R 28,471,372

Health

R 18,000,716

63%

4

Mpumalanga

R 97,788,753

Health

R 97,788,753

100%

5

Kwazulu-Natal

R 104,363,510

Education

R 71,235,451

68%

6

Free State

R 112,778,551

Health

R 64,549,129

57%

7

North West

R 351,858,302

Health

R 327,595,920

93%

8

Gauteng

R 389,973,533

Health

R 342,257,759

88%

9

Eastern Cape

R 2,114,327,450

Health

R 2,025,125,297

96%

   

R 3,200,679,654

 

R 2,947,671,207

92%

Provincial departments of Health and Education contributed 92% of the total rand value not paid by provincial departments as at December 2020.

19 May 2021 - NW1047

Profile picture: De Freitas, Mr MS

De Freitas, Mr MS to ask the Minister of Tourism

With reference to the complaints line of her department, (a) what is the total number of complaints received by her department in each month in the past three financial years, (b) what are the main categories of the specified complaints, (c) how were the complaints handled and/or resolved and (d) how would this be (i) measured and/or (ii) monitored?

Reply:

a) Total number of complaints received by the department in each month in the past three financial years.

Period/ Month

TOTAL NUMBER OF TOURIST COMPLAINTS MANAGED

 

2018/ 2019

2019/2020

2020/21

April

8

9

34

May

4

6

25

June

2

5

40

July

4

7

20

Aug

6

4

33

September

2

3

42

October

14

12

54

November

2

3

30

December

2

2

6

January

9

15

28

February

11

25

24

March

1

33

40

Total

65

124

376

(b) Refunds, rescheduling of reservations, service levels, alleged non-compliance with COVID19 protocols and acts of discrimination.

c) The Tourism Act, 2014 (Act No. 3 of 2014) makes provision for the Department of Tourism to put systems in place for dealing with complaints lodged by tourists in respect of tourism services, products or facilities. The Regulation on the Prescribed Manner and Procedure for Lodging and Dealing with Tourism Complaints outlines the process to be followed when managing tourism complaints.

The main focus is on mediation and amicable resolution of tourist complaints and that has proved to be effective. In cases where mediation fails, complaints are referred to other relevant structures for further intervention where applicable.

d) (i) and (ii) Database and records of all complaints received, managed and referred are kept and updated.

19 May 2021 - NW128

Profile picture: Kruger, Mr HC

Kruger, Mr HC to ask the Minister of Finance

With reference to a certain letter and a list of unpaid invoices (details furnished), how does the National Treasury intend to make sure that all government departments at national, provincial and local level, as well as state-owned entities, adhere to the 30 days’ payment policy?

Reply:

a) On 2 December 2009, Cabinet resolved that departments must implement mechanisms to ensure that payments to suppliers are paid within 30 days from the date of receiving an invoice. On 22 November 2010, Cabinet reiterated its decision taken on 2 December 2009 regarding the payment of invoices.

b) In addition, the Forum of South African Directors-General (FOSAD) resolved that the National Treasury must provide the Forum with regular reports on the extent of compliance by departments with the requirement to pay suppliers invoices within 30 days.

c) In November 2011, National Treasury published a Treasury Instruction Note No. 34 which emphasised the importance of the payment of suppliers timeously and enjoins departments to submit reports to their relevant treasuries each month with information related to the:

  • number and value of invoices paid after 30 days from the date of receiving invoices;
  • number and value of invoices that are older than 30 days which remained unpaid; and
  • reasons for late and / or non-payment of the invoices.

The National Treasury Instruction Note 34 further requires accounting officers to put systems in place to enable tracking of invoices received.

d) Since 2012, the National Treasury has been actively monitoring compliance with Treasury Regulation 8.2.3 and report quarterly on the level of non-compliance with the requirement to pay suppliers within 30 days as well as the recommendations to improve the level of compliance to the Department of Planning, Monitoring and Evaluation (DPME) to present to the FOSAD. The National Treasury also submits an annual report to the Standing Committee of Public Accounts, Standing Committee of Finance and Cabinet. These reports are also shared with the Public Service Commission and Department of Small Business Development.

e) The National Treasury in its continued effort to assist public sector institutions to meet their contractual obligations and to remind heads of institutions of this requirement, issued a treasury circular on 23 March 2018 to urge heads of institutions to put measures in place to pay valid invoices and claims as required by the legislation, strengthen internal controls and monitor the implementation thereof, institute disciplinary steps against those employees who undermine the legislative requirement or set internal controls, and to remind relevant authorities that failure to take disciplinary steps against those employees constitute non-compliance and misconduct.

f) Some of the initiatives that the National Treasury took to address this matter are as follows:

  • The National Treasury in collaboration with DPME visited all provincial departments of Health to understand challenges that are faced by these departments in paying legitimate invoices within 30 days and to develop action plans to address identified challenges and improve compliance levels;
  • The National Treasury embarked on roadshows in certain provinces to encourage government departments at various levels to adhere to commitments made on payment of invoices within the stipulated 30-day period as a critical element to support SMMEs who do business with the state;
  • The National Treasury established a hotline where queries related to non-payment of invoices are received from suppliers. The National Treasury assists suppliers by following up with transgressing departments on reported late payment of invoices and provides feedback on to the supplier on (i) reasons for the delay and (ii) date payment will be effected. At a provincial level, the process is handled by the Office of the Provincial Accountant-General.
  • The National Treasury is in the process of finalising a guideline on payments within 30 days to assist accounting officers with measures to implement to improve the level of compliance and pay invoices on time and also improve their internal control systems in relation to processes and procedures to be followed when effecting payments.

g) Whilst it is not currently a legal requirement that public entities must settle their invoices within 30 days, it is considered a best practice. When amendments are effected to the Treasury Regulations, public entities will also be legally required to pay their invoices within 30 days from date of receipt of an invoice.

19 May 2021 - NW127

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Kruger, Mr HC to ask the Minister of Finance

(1)Whether, with reference to a certain letter and a list of unpaid invoices (details furnished), each specified invoice listed has been paid yet; if not, why not; if so, what are the relevant details; (2) whether the National Treasury intends to pay the outstanding invoices; if not, why not; if so, what are the relevant details?

Reply:

1. Unpaid Invoices

The accounting officer for a department, trading entities or constitutional institutions are required in terms of section 38(1)(f) of the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) to settle all contractual obligations and pay all money owing, including intergovernmental claims, within the prescribed or agreed period. Treasury Regulation 8.2.3 provides that “Unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, from the date of settlement or court judgement”.

Accounting authorities of public entities are required in terms of section 51(b)(iii) to manage the working capital of the public entity efficiently and economically.

A National Treasury Instruction Note No. 34 was issued to accounting officers of departments requesting exception reports to be submitted to their relevant treasuries on (a) number and value of invoices paid after 30 days from the date of receiving invoices, (b) number and value of invoices older than 30 days that has not been paid and (c) reasons for the late and/or non-payment of the invoices.

The National Treasury established a Call Centre to allow suppliers to log and report non-payment of invoices by government institutions for the National Treasury to take steps in ensuring that such suppliers are paid and make necessary follow-up with those respective institution to determine root cause for the non-payment of reported invoices that remain unpaid and facilitate and fast track the payment of those invoices with the relevant institution, the Call Centre can be accessed on the following address: 30daysqueries@treasury.gov.za.

Similarly, section 65 (2) (e) and 99 (2) (b) of the MFMA requires the accounting officer of the municipality and municipal entity to take all reasonable steps to ensure that all money owing by the municipality be paid within 30 days of receiving the relevant invoice or statement.

Information on invoices specified in the list will be followed up with the relevant institutions to ensure that payment is made.

2. Payment of unpaid invoices

Accounting officers, accounting authorities, municipal managers and accounting officer of municipal entities are entrusted with financial management responsibilities in terms of the Public Finance Management Act, Act No. 1 of 1999 (PFMA) and Municipal Finance Management Act, Act 56 of 2003 (MFMA) to ensure that all contractual obligations are met and that payment to suppliers are made on time. Accountability arrangements in terms of these two pieces of legislation require each institution to plan, budget, contract and pay for goods delivered and services rendered, and it is, therefore, the responsibility of the institution to ensure that all valid invoices paid on time.

The National Treasury does not make payments to supplier’s invoices that remain unpaid by other organs of state due to accountability arrangements embedded in the PFMA and the MFMA. The Call Centre is used to assist suppliers to ensure that organs of state adhere to legislative requirements and honor their contractual obligations.

19 May 2021 - NW1210

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Buthelezi, Mr EM to ask the Minister of Finance

Given the recent publication of the annual report of the SA Post Office’s financial results for 2019-20 financial year, which shows that the Post Office is technically insolvent, what is the National Treasury’s plan to return the Post Office to solvency?

Reply:

In terms section 51(1) of the Public Finance Management Act, the responsibility to, amongst others, manage revenue, expenditure, assets and liabilities lie with the accounting authority. The executive authority of the South African Post Office is the Minister of Communications and Digital Technologies, who has the responsibility to oversee any plans to return the Post Office to solvency. The National Treasury cannot take over the functions of the Minister of Communications and Digital Technologies, and the accounting authority, who is the board of the Post Office.

19 May 2021 - NW1045

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De Freitas, Mr MS to ask the Minister of Tourism

With reference to the finalisation of the document on the repositioning of the Travel Indaba, what (a) are the next immediate steps of the specified process, (b) are the (i) timelines, (ii) time frames and (iii) deadlines in this regard, (c) are the changes in the form and content of (i) Africa’s Travel Indaba, (ii) Meetings Africa and (iii) the Welcome Campaign and (d) are the contents of the Partnership Strategy that has been developed?

Reply:

a) What are the next immediate steps of the specified process.

SA Tourism conducted a study to determine the readiness of trade (supply side) to participate in future shows and buyers (demand side) to place business in the market (demand side).

Further studies were conduced to determine the viability of a Hybrid model which comprises of virtual & physical format of the trade shows. The outcome indicates that tangible ROI from meeting engagements needs to be derived for exhibitors and buyers.

The team is currenly finalising the proposed approach and dates for both Africa’s Travel Indaba and Meetings Africa to be hosted in 2021.

b) What are the (i) timelines, (ii) time frames and (iii) deadlines in this regard.

Given the current situation due to the global pandemic, physical participation, vaccine roll-out and travel restrictions, this is an ongoing evaluation to determine when the trade show can be hosted. No date has yet been established for the hosting of the show.

c) Changes in the form and content of:

(i) Africa’s Travel Indaba and (ii) Meetings Africa

The proposed approach is a Hybrid model which comprises the hosting of the platform in a combination of physical and virtual formats. Details will be communicated once finalized

(ii) The Welcome Programme

The Welcome Program seeks to inspire and educate South African tourism role players and ordinary South Africans to deliver exceptional visitor experience. This is done through authentic interactions and the delivery of great customer service.

As an extension of the Welcome Program is the “Make Someone’s Day” initiative, which is positioned to showcase and highlight the importance of trade in the tourism value chain. We create and sustain partnerships with the trade through information sharing, toolkit developments, training and fact sharing, including implementing key ports of entry activations.

d) Contents of the Partnership Policy that has been developed.

SA Tourism recognises the important role of strategic Partnerships in furthering the discharge of its legislative mandate by broadly leveraging opportunities, spend, reach and influence beyond traditional tourism source markets with a direct measurable correlation with tourism destination choice (destination brand strength), travel decision and transactions (arrivals) and in-market spend (GDP contribution).

The aim of this Policy is accordingly to regulate the participation of SA Tourism in any Partnerships by providing clear governing principles relating thereto in order to ensure that such Partnerships further entity’s legislative mandate, are aligned to its strategic objectives, add value and are conducted in a consistent and fair manner. The Partnership Policy focuses on five categories:

  • National Imperative Marketing Partnerships
  • Tourism Targets and Brand Strength Driver Partnerships
  • Market Development Driver Partnership
  • Bid Support Partnerships
  • Trade Partnerships

19 May 2021 - NW1130

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Bagraim, Mr M to ask the Minister of Employment and Labour

(1)With reference to page 16 of the latest Annual Performance Plan of the Compensation Fund where it flags the Protection of Personal Information Act, Act 4 of 2013, as a threat within the legal environment, what has he found are the reasons that the Compensation Fund deems the specified Act a threat; (2) whether the Compensation Fund has found that the Act has proven to be an important safeguard against abuse of personal information; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

1. The nature of operations of the Fund is such that it collects and processes large volumes of personal information of its clients (beneficiaries, and Medical Service Providers). The threat in the Annual Performance Plan was highlighted in the context of the risk of potential breach of personal information. In the event that such personal information is not adequately and safely managed/stored, it might fall into wrong hands and with the potential of being abused/misused.

2. Yes. The Act has proven to be an important safeguard against abuse of personal information. The Fund has developed and is implementing a compliance plan.

19 May 2021 - NW811

Profile picture: Powell, Ms EL

Powell, Ms EL to ask the Minister of Finance

With regard to the irregular expenditure incurred in respect of the personal protective equipment tenders awarded to a certain supplier (name and details furnished), what remedial actions does the National Treasury intend to take in each case (details furnished)?

Reply:

The numbers referenced in the document are BAS Payment numbers.

Please find attached the extract of BAS payments made by the National Department of Human Settlements and Water and Sanitation to Travel with Flair. These payments were consolidated payments which included other items and or services that were not Covid-19 related.

(a) PM-2420322, Total payment of R487 735.00 of which R103 000.00 was Covid related.

(b) PM-2420317, Total payment of R437 710.00 of which R126 875.00 was Covid related.

(c) PM-2420328, Total payment of R496 715.20 of which R59 830.00 was Covid related.

(d) PM-2420330, Total payment of R272 005.00 of which R135 000.00 was Covid related.

(e) PM-2420329, Total payment of R492 595.00 of which R253 750.00 was Covid related.

(f) PM-2420326, Total payment of R199 105.00 of which R125 750.00 was Covid related.

In all cases the Covid-19 related expenditure (in red text on Annexure A) is referring to “Consumables: Medical Kit”. Based in this payment information, the National Treasury cannot completely determine whether these payments constitute irregular expenditure.

The National Treasury will, however, request the Department of Human Settlements and Water and Sanitation to provide the details of the transactions to determine whether the transactions complied with National Treasury Instruction No. 05 of 2020/2021 which was applicable at the time of the transactions.

19 May 2021 - NW1196

Profile picture: Ngcobo, Mr S

Ngcobo, Mr S to ask the Minister of Employment and Labour

With regard to the Inter-Ministerial Committee co-chaired by him and the Minister of Home Affairs established in 2020, what measures have been put in place to effectively deal with issues of migration and labour since the inception of the committee?

Reply:

As the two Co-chairpersons, we have had a series of meetings with both the Technical Team and the IMC members to put together a discussion document and Action plan on policy intervention areas, short term, medium and long term measures.

We have submitted to Cabinet, policy areas that some of the IMC member department and intervention that we will be focusing on.

As for the Department of Employment and Labour, we committed to:

  • participate in the joint inspections that were to be conducted in the various sectors of our economy where we received or continue to receive high presence of undocumented foreign nationals.
  • Coordination of the Trucking and Road Freight Industries stand-off and ensuring the participation of the various stakeholders in the established Bargaining Council to resolve their disputes.
  • To develop and present a Draft National Labour Migration Policy as a sub-theme of the broader National Employment Policy that we have been tasked to develop.
  • To present Draft legislative provisions to realise proposals outlined in the Draft Policy.

We have done our part and I have instructed the Director General of the Department to convene a Technical Task Team meeting of the IMC to gather progress report from each of the member departments. We will be approaching the IMC to secure a sign-off on the second progress report that we are going to table to Cabinet somewhere in June 2021.

19 May 2021 - NW326

Profile picture: Lotriet, Prof  A

Lotriet, Prof A to ask the Minister of Finance

(1)What number of cash-on-hand days did the City of Ekurhuleni (CoE) have on 31 January 2021; (2) whether the CoE has failed to pay any portion of its (a) electricity and/or (b) water account within the stipulated 30-day period over the past 12 months, up to and including 31 January 2021; if not, what is the position in this regard; if so, in each case, (i) what were the outstanding amounts that were not paid within 30 days, (ii) for what service(s) were the unpaid amounts and (iii) what is the current total amount outstanding for electricity and water?

Reply:

The National Treasury receives limited financial information from each of the municipalities and we therefore recommend that this detailed information is sourced directly from the finance division of the City of Ekurhuleni who is best placed to give the explanations required.

17 May 2021 - NW1194

Profile picture: Ngcobo, Mr S

Ngcobo, Mr S to ask the Minister of Home Affairs

With regard to the Inter-Ministerial Committee co-chaired by him and the Minister of Employment and Labour established in 2020, what measures have been put in place to effectively deal with issues of migration and labour since the inception of the committee?

Reply:

a. After looking at the sectors mentioned by the honourable member, it was agreed that there needs to be an act that provide for quotas for nationals v/s non-nationals in those sectors. The officials have been tasked with a job to develop a bill to that effect.

b. For now they are being renewed until such time that the asylum seeker backlog has been cleared. Then a decision will be made. Remember that these permits were a results of the backlog which DHA could not handle.

c. The aim of the inter-ministerial committee is to advise Cabinet on what to do with the issue of migration seeing that most of the people asking for asylum are in fact just economic migrants.

END

17 May 2021 - NW1338

Profile picture: Lotriet, Prof  A

Lotriet, Prof A to ask the Minister of Police

Whether, with regard to his reply to question 542 on 16 March 2021, he will now furnish Dr A Lotriet with the total number of persons who were (a) murdered, (b) arrested unlawfully and (c) assaulted with intent to do grievous bodily harm by the members of the SA National Defence Force (i) in the (aa) 2017-18, (bb) 2018-19 and (cc) 2019-20 financial years and (ii) since 1 April 2020; if not, what is the position in this regard; if so, what are the further relevant details? NW1534E

Reply:

Please see the attached reply to question 542 attached as Annexure A.
 

17 May 2021 - NW1082

Profile picture: Krumbock, Mr GR

Krumbock, Mr GR to ask the Minister of Police

Whether, with reference to his reply to question 100 on 4 March 2021, where he stated that an extension of two weeks is requested, in order to facilitate the ratification and approval of the final armoury report before submission, he has now had an opportunity to ratify and approve the final armoury report; if not, why not; if so, (a) will he furnish Mr G R Krumbock with an unsanitised copy of the armoury report and (b) by what date?

Reply:

Please see the attached reply to question 100 attached as Annexure A

17 May 2021 - NW1085

Profile picture: Nodada, Mr BB

Nodada, Mr BB to ask the Minister of Basic Education to ask the Minister of Basic Education

With reference to his reply to question 715 on 15 March 2021, what is the breakdown of the number of learners in each province?

Reply:

Learners transported per quarter 

PROVINCE

NEEDS

 

 

No. of Learners in Need

No. of Learners being Transported

No of Learners not being Transported

Eastern Cape

111 127

124 727

0

Free State

12 045

8 948

3 097

Gauteng

161 375

160 439

936

KwaZulu Natal

179 318

62 070

117 248

Limpopo

49 892

47 276

2 616

Mpumalanga

63 000

62 160

840

North West

72 210

63 636

8 574

Northern Cape

27 256

25 372

1 884

Western Cape

60 215

61 498

0

TOTAL

                   736 438

            616 126

135 195

17 May 2021 - NW1024

Profile picture: Mkhonto, Ms C N

Mkhonto, Ms C N to ask the Minister of Employment and Labour

Whether his department has done any investigations into the Temporary Employer/Employee Relief Scheme fraud relating to farmworkers specifically; if not, why not; if so, what (a) total number of farmworkers have been defrauded of their benefits by their employers and (b) steps has he taken to recoup the specified funds?

Reply:

The Department of Employment and Labour has conducted two (2) investigations relating to farmworkers. These were at farms in the Western Cape Province. The findings are that (a) a total number of 194 farmworkers were defrauded of their benefits by their employers. The first employer deducted 5% of the COVID-19 TERS benefit claiming that it was to be used to cover bank charges and administrative costs. In the second investigation it was found that the employer should not have applied for the benefit as no employees were eligible as their contracts had expired and they were no longer in the service of the employer (b) Both incidents were reported to the SAPS and fraud cases were opened for further investigation and possible prosecution.

17 May 2021 - NW1206

Profile picture: van der Merwe, Ms LL

van der Merwe, Ms LL to ask the Minister of Home Affairs

With regard to the Inter-Ministerial Committee he chairs jointly with the Minister of Employment and Labour, what (a) progress has been made with regard to a review of complaints from citizens that many sectors such as the trucking, hospitality, beauty, security and delivery prefer to employ foreign nationals only, (b) is the long-term plan with regard to the special permits that were issued to the nationals of Lesotho, Zimbabwe and Angola and (c) is the vision and mission of the specified Inter-Ministerial Committee?

Reply:

a. After looking at the sectors mentioned by the honourable member, it was agreed that there needs to be an act that provide for quotas for nationals v/s non-nationals in those sectors. The officials have been tasked with a job to develop a bill to that effect.

b. For now they are being renewed until such time that the asylum seeker backlog has been cleared. Then a decision will be made. Remember that these permits were a results of the backlog which DHA could not handle.

c. The aim of the inter-ministerial committee is to advise Cabinet on what to do with the issue of migration seeing that most of the people asking for asylum are in fact just economic migrants.

END

17 May 2021 - NW1127

Profile picture: Bagraim, Mr M

Bagraim, Mr M to ask the Minister of Employment and Labour

With respect to the second item on the list of external stakeholder's threats on page 46 of the Annual Performance Plan of the Commission for Conciliation, Mediation and Arbitration (CCMA) for 2021-22, (a) who are the civil society organisations that the CCMA is referring to and (b) what are the reasons that the CCMA perceives them as posing a threat to its independence?

Reply:

a) The CCMA has noticed an emerging trend where political parties with established labour desks/advice offices are representing parties in CCMA processes, making use of the expanded representation provision as per CCMA Rule 25(6). This trend is likely to continue as worker representativity across various workplaces is declining with vulnerable workers seeking or forming new associations to assist them.

b) The participation of political parties in CCMA processes may be perceived as political interference by the public, posing a risk to the perceived objectivity and independence of the CCMA

17 May 2021 - NW1205

Profile picture: van der Merwe, Ms LL

van der Merwe, Ms LL to ask the Minister of Basic Education to ask the Minister of Basic Education

What total number of children of undocumented foreign nationals and/or illegal migrants are currently enrolled at government schools?

Reply:

According to the data collected through Learner Unit Record Information System (LURITS), there were approximately 301 217 undocumented immigrant learners in South African schools, in 2020. However, it is not known whether their parents were documented or not as it is not compulsory for parents to submit documentation before their children are admitted to a school. There is court case judgment regarding this matter. 

17 May 2021 - NW1039

Profile picture: Ndlozi, Dr MQ

Ndlozi, Dr MQ to ask the Minister of Employment and Labour

For what time period does an average unemployed person between the age of 16 and 25 remain unemployed in the Republic’s labour market?

Reply:

According to the data reported by Statsa in the quarterly labour force survey (QLFS) during quarter 1 of 2020, almost 71.7% of the unemployed youth remain unemployed for more than 1 year, whilst 28.3% remain unemployed for less than 1 year.

13 May 2021 - NW1180

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Mineral Resources and Energy

Whether, with regard to bids accepted for the Risk Mitigation Independent Power Procurement Programme, his department has calculated the estimated additional costs that will be incurred in respect of each of the projects as a result of the adherence to (a) Broad-Based Black Economic Empowerment legislation and regulations and (b) local content legislation and/or regulations; if not, why not; if so, what are the further relevant details? NW1370E

Reply:

a) No, the Department has not calculated the estimated additional costs due to B-BBEE legislation and/or regulations. Compliance with B-BBBEE and/or regulations is a legal requirement under the PPPFA.

b) No, compliance with local content requirements are a legal requirement under the PPPFA.

By complying with B-BBBEE and local contents requirements, the Government promote and drives economic transformation, which in turn contribute to economic growth. B-BBEE and localisation add value to our society through its commitment to skills development together with the contribution to social development and transformation.

The Department through the IPP Office publishes quarterly reports for IPP projects connected to the grid. These reports include economic development achievements in line with commitments made by IPPs. The reports can be accessed here: https://www.ipp-projects.co.za/Publications

 

13 May 2021 - NW1153

Profile picture: Mileham, Mr K

Mileham, Mr K to ask the Minister of Mineral Resources and Energy

In light of the fact that the Turkish company (name furnished) which was listed as one of the preferred bids under Risk Mitigation Independent Power Producer Procurement Programme to supply three power ships to alleviate the Republic’s power challenges, what (a) will be the total combined power output of the three power ships and (b) total amount will it cost for each ship to (i) produce and (ii) transmit power to the grid? NW1342E

Reply:

a) The total combined power output/capacity of the three (3) floating Liquefied Natural Gas (“LNG”) Turbine, or Powership, projects appointed as Preferred Bidders under the Risk Mitigation Power Producer Procurement Programme (“RMIPPPP”) is 1 220 MW, broken down between the 3 follows:

  • Karpowership SA Coega, 450 MW
  • Karpowership SA Richards Bay, 450 MW
  • Karpowership SA Saldanah, 320 MW

b) Regarding (i) and (ii), the power procured under the RMIPPP will be dispatchable and the Seller (the IPP) will be compensated for availability(capacity) for energy output generated following a Dispatch Instruction from the Buyer. The cost of the bid by the bidder is inclusive of grid connection costs. The cost per KWh in April 2021 terms and assuming a 75% load factor is as follows:

  • Karpowership SA Coega, R1,359 / KWh
  • Karpowership SA Richards Bay, R1,389 / KWh
  • Karpowership SA Saldanah, R1,616 / KWh

12 May 2021 - NW944

Profile picture: Opperman, Ms G

Opperman, Ms G to ask the Minister of Social Development

(1)What are the reasons that her department is in arrears with regard to office hire in Williston; (2) (a) what amount does her department currently owe to municipalities for municipal services in the Northern Cape, (b) which municipalities does her department owe and (c) what is the outstanding amount owed to each municipality?

Reply:

(1) Northern-Cape Department of Social Development does not owe any rental to anyone for the Williston offices - as the Department owns the office building in Williston.

(2) (a) We do not owe money to municipalities in the Northern Cape. (b) None. (c) None.

National Assembly Written Reply: 944 of 2021

________________________

Approved by the Minister of Social Development

Date……………………….

12 May 2021 - NW494

Profile picture: Opperman, Ms G

Opperman, Ms G to ask the Minister of Social Development

(1)With reference to the presentation to the Portfolio Committee on Social Development on 3 February 2021 regarding the temporary disability grant, (a) what number of doctors has her department contracted to date to supplement capacity and (b) how will a six-minute assessment per client be conducted; (2) in view of the fact that assessment stood at 5% of 14385 Northern Cape clients, (a) what number of doctors have been deployed and (b) will the target be reached by 31 March when one doctor can only see 3520 clients on the 80 client per day ratio; (3) what number of care dependency grants have been concluded to date since the reassessments stood at 70% in January 2020; (4) what amount will be spent on overtime for each hour including weekends; (5) what number of (a) support offices have her department opened to support local offices and (b)(i) volunteers are currently deployed to manage queues and (ii) have they been found to be sufficient to handle congestion?

Reply:

1(a) The total number of doctors contracted nationally currently stands at 290. These doctors supplement the capacity provided by the Department of Health

(b) Every client who is seen by a contracted doctor comes with a referral form, which details the history of the condition, as well as the diagnosis, treatment and prognosis. This assists the assessing doctor to make a recommendation based on both the presentation by the client as well as the documents provided.

Where the doctors undertake file based assessments, they have access to the clinical file which contains all the information related to that client. Where the information on the file is inadequate, then a telephonic interview is conducted.

The above measures all assist in ensuring that informed recommendations are made.

2(a) With the removal of duplicates on the lists and re-instatements that occurred in January 2021, the baseline for the Region was reduced to 13 488. Out of this baseline of 13 488, by end March 2021 a total of 12 344 clients had been booked for assessments, 10 458 assessments (77%) had been conducted and 9 260 applications processed on the system.

The contracts of 28 medical doctors have been approved for the Northern Cape and all are currently conducting medical assessments throughout the Region.

(b) During this project, a total of 10 458 assessments translating to 77% of the baseline were conducted. Staff worked over-time (after-hours & week-ends) to ensure that this target was reached.

3. While the file based assessments have been conducted for the care dependency grants, there has been a slow response to the request for the care giver to return to complete the application process. Of the 11 243 which were lapsed at the end of December, only 5 865 have returned as disability grant recipients as at 31 March 2021.

4. It is not possible to indicate in advance what the amount is that will be spent on overtime for the staff, as the amount to be paid depends on the number of hours worked as well as the salary level of each particular staff member. There is not a standard amount per staff member.

Each region has to manage the overtime within the regulations, which stipulate that no staff member may earn more than 30% of his/her salary in overtime payments and no staff member may work more than 10 hours overtime per week; as well as within the available budget.

5.(a) No support offices have been opened to support the local offices, However, where possible, previously utilised service points are used to provide the services to limit the number of clients who have to report to a local office.

(b) A total of 1 013 volunteers are assisting with multiple services offered by SASSA, including assisting with queue management at local offices, post offices and other grant access points. These volunteers assist greatly in ensuring that social distancing is maintained while the clients are in the queues. However, there are certainly areas where there are insufficient volunteers.

National Assembly Written Reply: 494 of 2021

________________________

Approved by the Minister of Social Development

Date……………………….

12 May 2021 - NW1195

Profile picture: Ngcobo, Mr S

Ngcobo, Mr S to ask the Minister of Basic Education to ask the Minister of Basic Education

With reference to her media briefing on 30 April 2021 regarding the end of her department’s youth employment initiative, (a) how will the second phase of the initiative be rolled out and (b) what support structures are there to support teachers and learners in the immediate period since the second term commences in May 2021?

Reply:

 

a) The Department is using successes achieved and lessons learnt from Phase 1 of the Presidential Youth Employment Initiative (PYEI) - Basic Education Employment Initiative (BEEI), to plan for Phase 2 of the Initiative.  In order to address COVID-19 related challenges on teaching and learning, there will still be a bias towards supporting educators through Education Assistants.  General School Assistants will also be provided to assist schools to implement the necessary health, safety and hygiene measures.  The details regarding implementation, will be announced once funding has been confirmed and planning finalised.

(b) The PYEI - BEEI is part of a temporary relief programme to alleviate the impact of COVID-19, for which limited funding was provided.  The established management and governance structures in the Provincial Education Departments will continue to support teachers, learners and schools.  Through the Quality Learning and Teaching Campaign (QLTC), the sector mobilises communities to support education as a societal matter.

11 May 2021 - NW308

Profile picture: Schreiber, Dr LA

Schreiber, Dr LA to ask the Minister of Public Service and Administration

(1)What is the total number of (a) national and (b) provincial government employees who are currently working from home during the Adjusted Level 3 Lockdown to curb the spread of the COVID-19 virus; (2) whether the Government has conducted an assessment of the number of national and provincial government employees who are currently working from home that have access to sufficient internet/data to execute their duties; (3) what number, out of the total number of national and provincial government employees currently working from home, do not have access to the required internet/data connections to fully execute their duties?

Reply:

  1. The required information is not centralised and readily available as each department keeps its own register and records. Individuals Departments must be approached for detailed information such as access to internet/data.

End

11 May 2021 - NW381

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George, Dr DT to ask the Minister of Finance

(1)With reference to the 2020 annual report of the Public Investment Corporation, on what date will a collateral management system be in place; (2) whether the recommendations made by the Judicial Commission of Inquiry into Allegations of Impropriety at the Public Investment Corporation will be fully implemented; if not, why not; if so, what timeframe has been set?

Reply:

(1) A manual collateral management system is in place. This process involves the Portfolio Management and Valuations-, Legal- and Finance teams in consultation with the respective deal teams and the collateral will be valued by external valuers. A process has started to upgrade to an automated system.

(2) The Report of the Mpati Commission of Inquiry into the Public Investment Corporation (PIC), together with its recommendations, was adopted in full by the PIC Board and is being implemented. The Report contains more than 300 recommendations. As at December 2020, 16.36% of the recommendations were fully implemented and 52.12% partially implemented. Implementation is continuing on those that are still open.

(A detailed presentation to the Standing Committee on Finance on the implementation of the recommendations is available on the PIC website under “Presentations”)

Seeing that some recommendations require additional work to be done, a few of which by external parties, it is difficult to put a timeframe to the finalization of all recommendations.

11 May 2021 - NW110

Profile picture: Brink, Mr C

Brink, Mr C to ask the Minister of Finance

(a) Whether the National Treasury collects and collates any information at its disposal pointing to the employment as (i) chief financial officers and/or (ii) any other financial official in a municipality of any persons who have been found guilty by a municipality or other organ of state of serious financial misconduct and/or who has been convicted of any offence or set of offences involving fraud, corruption or criminal financial misconduct in terms of section 173 of the Municipal Finance Management Act, Act 56 of 2003, (b) in which municipalities are such persons appointed and (c) in which positions are they appointed within such municipalities?

Reply:

a) The National Treasury collates some information on the chief financial officers and other financial officials, however, not specifically regarding officials who were found guilty of serious financial misconduct or convicted of any offence or set of offences. The appointment practices and vetting of those appointed are the domain of the municipality. In terms of regulation 16(1) of the Municipal Regulations on Financial Misconduct Procedures and Criminal Proceedings, municipalities and municipal entities must report any decision to institute or not to institute disciplinary proceedings against the person who allegedly committed a financial misconduct; the reasons for the decision; the outcome where disciplinary proceedings have been instituted; and whether a charge has been laid against the person concerned with the South African Police Service, if the alleged financial misconduct constitutes a financial offence in terms of section 173 of the Act. The above-mentioned reports must be sent to different stakeholders, including the MEC for local government in the province; the national department responsible for local government; the relevant provincial treasury; the National Treasury; and the Auditor-General. The municipalities must also report in their annual reports all suspensions, disciplinary or criminal proceedings instituted in cases of financial misconduct.

 

(i) The National Treasury monitors the establishment of disciplinary boards as required in terms of the above-mentioned Regulations, the effectiveness of the disciplinary boards as this is the instrument through which consequence management in relation to financial misconduct is implemented in municipalities and municipal entities. The National Treasury also monitors whether any municipal official has been charged with financial misconduct, including whether any disciplinary action has been implemented to address the financial misconduct.

(ii) The National Treasury also collates information on other financial officials within municipalities.

The National Treasury does not have information relating specifically to the appointment of CFOs or other financial officials falling within the category mentioned in the questions, however, the Honourable Member should note that the appointment of senior managers, including CFOs in municipalities requires that a process be followed that includes reporting to and seeking responses from provincial MECs responsible for Local Government, in terms of the regulations issued under the Municipal Systems Act. The table below provides information on instances where disciplinary processes have been instituted during 2020/21 financial year.

  1. Name of Municipality
  1. Position held by officials

Alfred Nzo District Municipality

Debt Collection Officer; Revenue Officer and Senior Debtors Clerk

Dr Beyers Naude Local Municipality

Chief Financial Officer

Buffalo City Metropolitan Municipality

Head of Supply Chain Management

City of Johannesburg Metropolitan Municipality

Acting Group Executive Director (4) and Acting Director

Ekurhuleni Metropolitan Municipality

Cashiers (7), Sub-Accountant; Administrators (2) ; Administrative Assistant ; Senior Clerk; Executive Managers (2); Accountant; Admin Officer; Senior Manager (2); Senior Clerk; Clerk; Manager (6) and Admin Assistant

eThekwini Metropolitan Municipality

Senior Manager; Project Executives, a total of 29 officials have been charged and disciplined

Okhahlamba Local Municipality

Cashier

Alfred Duma Local Municipality

Chief Financial Officer; Debt Collector Legal

uPhongolo Local Municipality

Senior Managers (2)

Collins Chabane Local Municipality

Manager Revenue; Manager Supply Chain Management; Manager Planning and Development

Lepelle-Nkumpi Local Municipality

Executive Manager Technical Services; Manager: Supply Chain Manager; and Executive Manager: Community Services

Modimolle-Mookgophong Local Municipality

Divisional Managers (2)

Polokwane Local Municipality

Assistant

Thaba Chweu Local Municipality

Supply Chain Manager

George Municipality

Director: Corporate Services and Director: Community Services

.

11 May 2021 - NW698

Profile picture: Gondwe, Dr M

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

Whether, with reference to the findings by the auditor-general that some government employees applied for the Social Relief of Distress Grant (SRD Grant), his department has been able to conclusively establish the number of government employees who have fraudulently applied for the SRD Grant; if not, why not; if so, what (a) is the total number of government employees who actually received the SRD Grant and (b) is the total amount that the implicated government employees received from the SRD Grant?

Reply:

Cognisance of the Auditor-General’s findings is taken. It must however, be noted, that the mandatory investigative processes need to be undertaken by the relevant authorities, such as the South African Police Service (SAPS) and in some cases, the Special Investigating Unit (SIU). Once these investigations have been completed, the necessary information will be obtained by the DPSA, and will be communicated to the relevant department/s. The DPSA, through the Technical Assistance Unit will ensure that it keeps abreast of the developments so as to offer support to departments and monitor the management of disciplinary actions instituted against those public servants who are found guilty.

End

11 May 2021 - NW296

Profile picture: Brink, Mr C

Brink, Mr C to ask the Minister of Finance

(1)What steps has he and/or the National Treasury taken to assess whether tariffs charged by municipalities for water and electricity are sufficient to cover the cost of bulk purchases; (2) to what extent do tariffs charged by municipalities for water and electricity cover the cost of bulk purchases; (3) which municipalities have been found to have tariffs that are insufficient to cover the cost of bulk water and/or electricity costs; (4) whether he will ask for such assessments to be done; if not, why not; if so, what are the relevant details?

Reply:

(1) A sustainable tariff is the one that is cost reflective (Includes all the costs of providing a service, such as bulk purchases). Several municipalities have not been able to establish a cost reflective tariff, which has negatively impacted the sustainability of municipal services. In response National Treasury has developed a tool for use by municipalities, that if used correctly it will see municipalities charging cost reflective tariffs that will cover the cost of bulk purchases. Treasury through its structures is also offering technical support to municipalities to assess and set cost reflective tariffs.

Additionally, National Treasury and CoGTA are jointly funding a Cost of Supply (COS) study that targets the top 20 municipal defaulters of Eskom and top 10 municipal defaulters of the water boards. The study is intended to assist municipalities determine the true cost for the respective services (water and electricity) which will subsequently influence better tariffs.

(2) Ideally the tariffs set by municipalities should cover the cost of bulk purchases. National Treasury consistently advocates this practice. In the same understanding full absorption of the costs such as bulk purchases into tariffs, might result in unaffordable tariffs for low-income households. In some instances, calculating a cost reflective tariffs makes use of municipal other revenue streams and the equitable share to subsidise the tariffs for the indigent and low income households.

(3) Municipalities that do not calculate tariffs through scientific means and merely impose a CPI incremental increase to the previous year’s tariff. There are observations that some rural municipalities or municipalities that have low revenue base, have been found to be charging tariffs which are insufficient to cover the cost or not cost reflective.

In some cases, as the result of improper methods for setting tariffs municipal councils reduce the proposed tariff based on their perception of is affordable to their constituencies.

Additionally, municipalities that have high distribution losses may also find it difficult to recover the cost of the service.

(4) No, it is enshrined in the municipal budget assessment process. All the budgets of municipalities are assessed by National and Provincial Treasuries to determine whether the budget of the municipality is funded or not. If the budget of a municipality is not funded National Treasury and Provincial Treasury determine the reasons why the budget is not funded and assesses specifically whether the tariffs are cost reflective to cover all the expenditure. If tariffs are cost reflective then the tariffs will cover all the cost the render that service. If the tariffs are not cost reflective then the municipality is advised to implement cost reflective tariffs and Provincial Treasuries will assist the municipality to implement such cost reflective tariffs.

The assessments are done annually during the budget process which have resulted in the development of a tariff tool by National Treasury to address the issue of non-cost reflective tariffs.

In addition, the National Treasury issue two budget circulars annual. These MFMA Budget Circulars can be obtained on the NT Website at the following link:

http://mfma.treasury.gov.za/Circulars/Pages/default.aspx.

The Tools to assist municipalities with cost reflective traffic can also be located on the National Treasury Website at the following link:

http://mfma.treasury.gov.za/Circulars/Documents/Forms/AllItems.aspx?RootFolder=%2fCirculars%2fDocuments%2fBudget%20Circular%20No%2098&FolderCTID=0x012000E772703726E2A8479752CF24A134692B

10 May 2021 - NW670

Profile picture: Faber, Mr WF

Faber, Mr WF to ask the Minister of Finance

Whether (a) the National Treasury and/or (b) any entity reporting to him makes use of private security firms; if not, what is the position in this regard; if so, in each case, what is the (i) name of each firm, (ii) purpose, (iii) value and (iv) duration of each specified contract?

Reply:

NATIONAL TREASURY

  1. Yes
  1. The appointed Security company is Excellent Security
  2. Rendering of security guarding services for the National Treasury buildings
  3. The contract amount for the services is R28 467 243.60
  4. The contract is for 3 years (January 2021-December 2023)

ASB

(i) NATIONAL SECURITY AND FIRE

(ii) Armed response and monitoring services

(iii) R645.84 per month

(iv) Contract commenced on 01 March 2020 – 1 month notice period, no specified contract length, but contract reviewed annually and request for quotations issued every three years.

DBSA

NO- The DBSA does not use private security firms, it has insourced security services. The personnel in that unit are all DBSA employees.

FIC

FINANCIAL INTELLIGENCE CENTRE, CENTURION

  1. Raite Security
  2. Providing physical security services
  3. R 2 126 840.27
  4. 01 April 2019 to 30 November 2023

FINANCIAL INTELLIGENCE CENTRE, CAPE TOWN

  1. Striving Mind
  2. Providing physical security services
  3. R 1 401 512.16
  4. 01 April 2020 to 31 March 2023

GEPF

The GEPF does not utlise private security firms as the landlord provides security services as part of the contract.

GPAA

The Government Employees Pension Agency (GPAA) does make use of private security firms for the sole purpose of protecting the employees and assets in respect of all of the GPAA’s 16 offices, which includes Head office, 15 regional and satellite office across the country in all nine provinces.

All procurement at the GPAA is in line with Public Finance Management Act prescripts. Therefore, the GPAA acquired the services after following an open tender process inviting bids to provide security services.

The details set out in Annexure A attached.

ANNEXURE A

Name of Company

Region (s)

Total value across multiple years

Duration of Service Agreement

     

Start

End

Peuloane (Pty) Ltd

Security Services to GPAA HQ & Traven

R 39 386 603,75

2019/08/01

2022/07/31

Peuloane (Pty) Ltd

Security Services to GPAA DBN, PMB

R 3 878 152,14

2019/08/01

2022/07/31

Peuloane (Pty) Ltd

Security Services to GPAA Polokwane, Nelspruit, Thohoyandou

R 11 417 272,73

2019/08/01

2022/07/31

Peuloane (Pty) Ltd

Security Services to GPAA JHB, Rustenburg, Mafikeng

R 8 733 493,76

2019/08/01

2022/07/31

Peuloane (Pty) Ltd

Security Services to GPAA BFN, Phuthadichaba, Kimberley

R 8 320 608,14

2019/08/01

2022/07/31

Peuloane (Pty) Ltd

Security Services to GPAA PE, Bisho, Mthatha

R 8 971 897,34

2019/08/01

2022/07/31

IRBA

  1. Fidelity – ADT
  2. Armed response for building security
  3. R926.72 per month
  4. The term of the building lease

LAND BANK

(b) The Land and Agricultural Development Bank of South Africa as an entity under the National Treasury uses private security firms for the following purposes:

  • Monitoring and Armed Response
  • Static or Physical Guarding of Property

(b)(i) The following is a list of all service providers being uses:

BUILDING

SERVICE PROVIDER NAME

Bloemfontein

Fidelity Security

Bethlehem

Wulfe Alarms

Kroonstad

CSS

Cape Town

Fidelity ADT

Beaufort West

Beaufort-Alarms

Worcester

Capital Security

East London

Chubb – National Security (Pty)Ltd

Cradock

Cradock Sekuriteit

Port Elizabeth

Atlas Security

Nelspruit

ADT Security

Ermelo

ASCU Security

Ermelo

Bethal Security

Pietermaritzburg

PMB Security

Vryheid

Link Up Security

Polokwane

Salute Security

Tzaneen

Northern Security - Kloof Alarms

Upington

Fidelity Security

Vredendal

Fidelity Security

Vredendal

BAI Security

Vryburg

Ravens Security

Lichtenburg

Golden Eye Security

Rustenburg

ARS Security

Rustenburg

Fidelity Security

Potchefstroom

Fidelity Security

Head Office

Fidelity Security

Head Office

ADT Security

 

(b)(ii) Purpose of the services, is to protect people and assets in the case of Monitoring and Armed Response. Additional to this, it is to exercise access control, in the case of Static Guarding.

(b)(iii) Contract values differ significantly and can be expressed in the following manner:

BUILDING

SERVICE PROVIDER NAME

Contract value p/a, ex VAT

Type of Service

Bloemfontein

Fidelity Security

R5,520.00

Monitoring & Armed response

Bethlehem

Wulfe Alarms

R5,060.76

Monitoring & Armed response

Kroonstad

CSS

R3,798.24

Monitoring & Armed response

Cape Town

Fidelity ADT

R8,263.20

Monitoring & Armed response

Beaufort West

Beaufort-Alarms

R3,005.16

Monitoring & Armed response

Worcester

Capital Security

R4,219.80

Monitoring & Armed response

East London

Chubb – National Security (Pty)Ltd

R7,074.36

Monitoring & Armed response

Cradock

Cradock Sekuriteit

R2,473.68

Monitoring & Armed response

Port Elizabeth

Atlas Security

R2,869.56

Monitoring & Armed response

Nelspruit

ADT Security

R6,758.52

Monitoring & Armed response

Ermelo

ASCU Security

R5,791.32

Monitoring & Armed response

Ermelo

Bethal Security

R5,530.44

Monitoring & Armed response

Pietermaritzburg

PMB Security

R6,125.16

Monitoring & Armed response

Vryheid

Link Up Security

R5,263.20

Monitoring & Armed response

Polokwane

Salute Security

R5,980.32

Monitoring & Armed response

Tzaneen

Northern Security - Kloof Alarms

R5,739.12

Monitoring & Armed response

Upington

Fidelity Security

R7,014.12

Monitoring & Armed response

Vredendal

Fidelity Security

R3,856.56

Monitoring & Armed response

Douglas

BAI Security

R2,784.00

Monitoring & Armed response

Vryburg

Ravens Security

R3,130.44

Monitoring & Armed response

Lichtenburg

Golden Eye Security

R3,394.44

Monitoring & Armed response

Rustenburg

ARS Security

R10,643.52

Monitoring & Armed response

Rustenburg

Fidelity Security (Static Guarding)

R163,428.72

Physical Guards

Potchefstroom

Fidelity Security (Static Guarding)

R307,527.60

Physical Guards

Head Office

Fidelity Security (Static Guarding)

R2,122,054.56

Physical Guards

Head Office

ADT Security

R8,133.60

Monitoring & Armed response

(b)(iv) Duration or expiry of each Contract:

BUILDING

SERVICE PROVIDER NAME

Contract Expiry Date/Duration

Bloemfontein

Fidelity Security

08 July 2022

Bethlehem

Wulfe Alarms

Month to month

Kroonstad

CSS

Month to month

Cape Town

Fidelity ADT

01 April 2021

Beaufort West

Beaufort-Alarms

Month to month

Worcester

Capital Security

Month to month

East London

Chubb – National Security (Pty)Ltd

Month to month

Cradock

Cradock Sekuriteit

Month to month

Port Elizabeth

Atlas Security

Month to month

Nelspruit

ADT Security

Month to month

Ermelo

ASCU Security

Month to month

Ermelo

Bethal Security

Month to month

Pietermaritzburg

PMB Security

Month to month

Vryheid

Link Up Security

Month to month

Polokwane

Salute Security

Month to month

Tzaneen

Northern Security - Kloof Alarms

Month to month

Upington

Fidelity Security

01 April 2021

Vredendal

Fidelity Security

01 April 2021

Douglas

BAI Security

17 December 2022

Vryburg

Ravens Security

Month to Month

Lichtenburg

Golden Eye Security

Month to month

Rustenburg

ARS Security

Month to month

Rustenburg

Fidelity Security (Static Guarding)

Contract is Expiring 30 March 2021

Potchefstroom

Fidelity Security (Static Guarding)

Contract is Expiring 30 March 2021

Head Office

Fidelity Security (Static Guarding)

Contract is Expiring 30 March 2021

Head Office

ADT Security

Month to month

PFA

The Office of the Pension Funds Adjudicator does make use of private security firms. Its offices are rented and situated inside a secure office park.

PIC

(i) Bidvest Protea Coin (Pty) Ltd

(ii) Provision of security services at PIC’s head office at Central Square; Menlyn Maine.

(iii) R13 754 696 inclusive of VAT

(iv) 3 August 2018 to 31 August 2021

SARS

(i)(ii)(iii)(iv) SARS has contracted security service providers to render a service on four categories,

in terms of the normal procurement processes.

Category A: Armed Guarding, Close Protection and Tactical Response Security Services for a period of twelve (12) months

    • Tshedza Protective Services CC : contract value R 16 386 785

Category B: Armed Response and Alarm Monitoring Services for a period of three (3) years

    • Maxi Phumelela Security: contract value R 1 827 355.75
    • Royal Security CC: contract value R 678 670.20
    • Fidelity Security Services (Pty) Ltd : contract amount R 574 259.40

Category C: National Guarding Security Services for a period of twelve (12) months

    • Royal Security CC: contract value R 33 605 282.70
    • Fidelity Security Services (Pty) Ltd : contract value R 35 638 716.30
    • Wenzile Phaphama Security Services : contract value R 36 092 011.71

Category D: Secure transport of high value goods for a period of 5 years

    • Fidelity Security Services (Pty) Ltd: R 54 058 010.61

SASRIA

Name: Mavee Security (Pty) Ltd - 2012/033849/07

Purpose: To provide 24-hour security to the premises

Value: R847 800.00

Duration: 36 Months (Commencement Date 01 January 2021)

TAX OMBUD

  • The Office of the Tax Ombud (OTO) uses physical security services for the Office building.
  • The Fidelity security services are contracted to provide the physical security services to the OTO.
  • The security company is contracted by the South African Revenue Service (SARS).
  • The physical security expenses relating to OTO is paid centrally by SARS.

10 May 2021 - NW691

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

Whether the Director-General of the National Treasury attended in his official capacity any part of the National Executive Committee meeting of a certain organisation (name furnished) that was held between 23 and 24 January 2021; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

The Director-General of the National Treasury attended the ANC NEC on the 23rd and 24th January 2021 in his personal capacity.

10 May 2021 - NW753

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Graham, Ms SJ to ask the Minister of Public Works and Infrastructure

(1)Whether, with regard to the water provision to Hoedspruit from Blyde River which is facilitated by a pipeline carrying raw water from the river to the Air Force Base, where the water is purified before being distributed to the Air Force Base, Hoedspruit and surrounds, the direct pipeline from the Blyde River to the Air Force Base which was allegedly damaged two years ago by a farmer digging a trench has been repaired; if not, what plans are there for the repairs to be done; if so, (a) on what date were the repairs done and (b) is this the main pipeline for raw water; (2) whether her department is using a pipeline linked to the Blyde Agricultural Irrigation System which is connected on the farm, Parma in place of the damaged pipe; if not, what is the position in this regard; if so, what are the further relevant details?

Reply:

The Minister of Public Works and Infrastructure:

1) (a) I have been informed by the Department that DPWI is not aware of damages caused by a farmer and repairs done to the pipeline. However, a complaint was logged by the Hoedspruit Airforce Base for the repairs at the Essex pump station. This complaint was attended to on 30 May 2019 by Poppe Maphori JV Microzone and the job card was signed off accordingly by the client representative (FSGT Koekemoor) on 31 May 2019 for the amount of R51 06.00.

(b) No, the repairs were not on the main pipeline which is maintained by the Blyde River Water Utility Company (Pty) Ltd, but were at the Essex raw water pump station which is an alternative pipeline used when the mainline is not working. The main pipeline is a gravity line that supplies water to the Hoedspruit Air Force Base without the use of a pump station, whereas the Essex pump station is an alternative line that pumps water to the Air Force Base when the main line is not working.

2) Yes, Hoedspruit Air Force Base sources water from the Blyde River on a daily basis. The main pipeline that draws water to Hoedspruit Air Force Base is linked to the farmers (Parma) irrigation system. Parma is the farm where the main water pipeline runs through the agricultural irrigation system to the base.

The Essex station is the responsibility of DPWI and it pumps water much faster than the gravity line (main pipeline). Essex pump station is used as an alternative when the base experiences challenges with main pipeline (Blyde).

10 May 2021 - NW871

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Graham, Ms SJ to ask the Minister of Public Works and Infrastructure

With regard to the 1 Military Hospital in Gauteng, (a) on what date did the project to refurbish the first floor pharmacy and five operating theatres begin and (b) what (i) was the original budget for the project, (ii) was the original anticipated completion date for the project, (iii) are the reasons for the delay, (iv) is the new anticipated budget for completion, (v) is the new anticipated date for completion and (vi) mechanisms have been put in place to ensure that the Department of Defence is meeting its obligations in terms of client department roles such as timeous payments?

Reply:

The Minister of Public Works and Infrastructure

a) I have been informed by the Department that the Pharmacy works were expected to start on 03 June 2010 but Department of Defence (DoD) only provided access to this area on the 15 June 2010.

b) i) The Project consisted of two main contracts with different budgets as follows:

  1. Building and Civil Works - R 95 104 000.00
  2. Electrical and Mechanical Works - R 108 889 292.22

ii) The project started off as a RAMP project, with an original date of completion being October 2009.

This original 36 months RAMP contract was during the course of the works and through scope changes initiated by DoD, converted to an upgrading project and the date of completion was revised to 30 November 2010.

The initial original scope and some of the additions which could be permitted under the contract were completed by the DPWI in 2011 and final account was taken in 2012.

iii) The project was riddled with many delays. Chief among these were the numerous Scope changes by the User Department and the late provision of access to the different areas of the buildings for works to be executed.

iv) The new anticipated budget for completion

Due to the high amount of scope changes requested by the DoD, which could not be accommodated within the ambit of a Variation Order or any other provision under the contract, it was decided that another project be registered and that new consultants be appointed to deal with the new additions/requirements.

During the planning phase for the new project, on request of DoD, the project was transferred from DPWI to DoD on 23 October 2014. The new budget for completion can be confirmed by DoD

v) The new anticipated date of completion is

The DoD will be able to confirm the new anticipated date of completion.

vi) Mechanisms put in place to ensure that DoD meets its obligations

The DoD has no obligations towards the Department with respect to this project as it has been transferred.

 

10 May 2021 - NW968

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Graham, Ms SJ to ask the Minister of Public Works and Infrastructure

(1) With regard to the (a) Mopani District Municipality and (b) Maruleng Local Municipality, (i) what is the status of the outstanding repairs to the water pipeline from Blyde River to the Hoedspruit Air Force Base and (ii) who is responsible for the repairs to the pipeline;- (2) what is the status of the contract signed in 2004 between her department and the Blyde River Water Utility Company (Pty) Ltd which runs until 2024; (3) what service level agreements are in place to ensure that the Department of Defence meets its financial commitments in respect of the water usage;- (4) whether the Maruleng Local Municipality is being charged for its water usage; if not, (a) why not and (b) who is paying the water usage; if so, (i) is it being metered correctly and (ii) who is invoicing for the water usage; (5) what (a) role will her department play in the completion of the Mametja-Sekororo bulk water project and (b) are the relevant details of the project including anticipated costs and anticipated completion dates?

Reply:

(1) (a,b,i,ii) I have been informed by the Department that DPWI is not aware of the status of the outstanding repairs to the water pipeline from the Blyde River to the Hoedspruit Air Force Base as this is the function of the Blyde River Water Utility Company (Pty) Ltd as stated in clause 6.1 of the Agreement, which states that the DPWI pays a specified amount to the water utility company in contribution to the maintenance and operating expenses of the pipeline.

(2) The contract is still in place. The only new development is that payments to the Blyde River Water Utility Company (Pty) Ltd are now effected by the User Department, the Department of Defence, as per the devolution of municipal services in July 2020.

(3) There is no service level agreement in this regard. As stated in the contract mentioned above, it was agreed that the Department of Water Affairs would take over after the expiry of the contract. Since the changes in legislation and district municipality as an entity that is regarded as the Water Services Authority, the DPWI has started to look at this agreement together with the Maruleng Local municipality, Mopani District Municipality and will also engage the Department of Water Affairs. Engagements have already started on the 17th March 2021 to address this issue.

(4) (a) No, the Maruleng Municipality used to pay the Department but has stopped paying since 2012 after floods impacted the water quality . The Department initiated meetings with the municipality to resolve the issue of payments without success. A meeting was held on 17 of March 2021 between DPWI, Mopani District Municipality and Maruleng Municipality to have a permanent solution to the matter and the Municipality has agreed to make the payments. Meetings are to continue with all stakeholders.

(b) The DPWI has been paying the Blyde River Water Utility Company for bulk water usage at the Hoedspruit base on behalf of the Department of Defence, which has now been transferred to the Department of Defence, as per the devolution of municipal services in July 2020.

(i) Yes, metering is available.

(ii) No, invoicing to the municipality stopped due to the dispute on water quality.

(5) (a,b) The Department of Public Works and Infrastructure has no role in the completion of the Mametja-Sekororo bulk water project.

10 May 2021 - NW813

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

With regard to the annual report of the Public Investment Corporation, what are the reasons that effective and appropriate steps were not taken to prevent irregular expenditure amounting to R9,817 million, as required by section 51(1)(b)(ii) of the Public Finance Management Act, Act 1 of 1999?

Reply:

The Public Investment Corporation (PIC) has policies and procedures in place to ensure that at all times procurement processes are fair, equitable, transparent and competitive as required by the Public Finance Management Act, Act 1 of 1999. However, during the audit for the 2019/20 financial year it was found that certain contracts have led to irregular expenditure. There were two main reasons for that:

  1. The PIC Management was of the view that Treasury Regulations in instruction note 3 is silent on deviations against internal processes, therefore the internal PIC Delegation of Authority was applicable and was duly applied. Subsequent to this audit finding, National Treasury and the PIC Management had discussions and agreed that this view was of a technical nature. The PIC Management has also engaged National Treasury through the State Owned Enterprises Procurement Forum (SOEPF) on concerns with instruction note 3. However, to avoid any recurrence, all procurement that is not explicit in the applicable regulations or legislation, is discussed with National Treasury to avoid any misinterpretation.
  2. In another instance the PIC Management approved a deviation as an emergency but due to the time frame taken to conclude the contract with the supplier, the audit opinion was that it should have been submitted to National Treasury for approval since it did not qualify as an emergency deviation that falls within the delegated authority of the Accounting Officer.

The PIC has improved its processes and procedures to prevent any recurrence.

10 May 2021 - NW947

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

(1) What is the total amount of corporate tax that is received from the minibus taxi industry in the Republic; (2) whether the SA Revenue Service (SARS) is concerned about tax avoidance in the cash-dominated taxi industry; if not, why not; if so, what measures is SARS taking to address the problem?

Reply:

(1) SARS collected approximately R5 million in Corporate Income Tax (CIT) from the Taxi Operators; however, this amount includes tax collected from their employment income. This is because the industry does not correctly disclose income from taxi business on their CIT returns but included under a generic income source code. We were not able to determine income solely from taxi operations. Our analysis indicates that the majority of the taxi industry is declaring a nil return or are having a refund due to them.

(2) SARS is concerned about tax avoidance across the tax ecosystem in general; this is more so in this particular industry; to this end, SARS adopting a number of targeted interventions. The interventions are aimed at achieving the SARS strategic intent of building a tax and customs system that is premised on voluntary compliance. The strategic intent is achieved through the creation of clarity and certainty of tax obligations, making it simple, easy and seamless to meet tax obligations and ultimately by creating a credible threat of detection whilst making it hard and costly to remain non-compliant. To this end, SARS has a unit dedicated to improving compliance of SMMEs, Taxi industry included; we had various engagements with the industry bodies in the year 2020/21 to create alignment as well as to educate. Furthermore, SARS has worked in collaboration with the Department of Transport to share data on work on their Taxi industry transformation agenda. In response to the perceived non-compliance by the Taxi industry, SARS has commenced a process of developing a compliance plan for the Taxi industry to encourage voluntary compliance and potentially propose the appropriate tax regime specifically for the industry. This work will be concluded in the 2021/22 financial year.

The working with and through stakeholders as one of the stated strategic objectives is crucial and informs the stakeholder engagements as detailed above.

10 May 2021 - NW845

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Graham, Ms SJ to ask the Minister of Public Works and Infrastructure

(1)Whether, with reference to the water provision to Hoedspruit from Blyde River that is facilitated by a pipeline carrying raw water from the river to the Hoedspruit Air Force Base, where the water is purified before being distributed to the Air Force Base and surrounding areas, (a) a certain engineering firm (name furnished) was contracted to maintain the 155km Lower Blyde Water Distribution Network; if not, who is contracted by her department in this regard; if so, (2) whether all payments to the specified company up are to date; if not, (a) what amounts are the arrears, (b) what are the reasons that the payments are in arrears, (c) what measures will be taken to ensure that the arrears are settled and (d) by what date is it envisaged that the arrears will be settled?

Reply:

The Minister of Public Works and Infrastructure

  1. I have been advised by the Department that no, the Department of Public Works and Infrastructure has not contracted an engineering company to maintain the Lower Blyde Water Distribution Network.

The Department is however in the process of registering a project to maintain and repair water and sewer works for the preventative maintenance of pumps at Essex and the water purification plants at Hoedspruit Air Force Base which requires regular maintenance, such as pump maintenance, chlorine dosing system maintenance etc. The Department has also contracted the Blyde River Water Utility Company (Pty) Ltd for the conveyance of water from the Blyde River to the Hoedspruit Airforce Base.

  1. (a,b,c,d) The Department is not aware whether payments are up to date as the function of payments of municipal services, inclusive of water, has been devolved to the Department of Defence effective July 2020. In this regard, the last payment made by the DPWI to the Blyde River Water Utility Company was in July 2020.

10 May 2021 - NW864

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George, Dr DT to ask the Minister of Finance

(1) Whether, with reference to the approval by the City of Ekurhuleni Municipal Council of item: A-TP (01-2021) in its virtual sitting on 28 January 2021, which sought to pay interim compensation to the Ekurhuleni taxi industry for the operation of phase 1 of the Integrated Rapid Public Transport Network project, the National Treasury has found that the compensation is necessary; if not, what is the position in this regard; if so, will the National Treasury be ensuring that the approved item is actioned; (2) (a) what is the total figure in respect of the approved recommendation stating that the payment of R10,00 fare per passenger on the Harambee Service between Tembisa-ORTIA and extension to Bartlett to affected taxi operators for the daily passenger revenue loss, which will be from the R17,00 per passenger fare collected, (b) why has the amount to be paid not been capped and (c) which taxi associations are part of the Ekurhuleni taxi industry; (3) whether the National Treasury has received correspondence from the caucus of a certain political party (name furnished) on this matter; if not, why not; if so, what are the relevant details?

Reply:

The Public Transport Network Grant (PTNG) is appropriated to Vote 40: National Department of Transport. Therefore, the responsibilities of approval of all aspects of the PTNG, industry compensation included, lie with the Department of Transport to ensure that money spent in the conditional grant meet the conditions in the Division of Revenue Act, but to also ensure that it is consistent with the Public Transport Policy and Regulations. It is therefore recommended that these questions be referred to the Ministry of Transport.

10 May 2021 - NW963

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Hicklin, Ms MB to ask the Minister of Public Works and Infrastructure

What (a) steps are being taken by her department to address the extremely high vacancy rate that is currently sitting at over 11% (i) across all sectors of her department and (ii) in the entities reporting to her, including the Property Management Trading Entity, (b) is the reason that the vacancy rate is so high, (c) total number of the vacancies are as a result of the Special Investigations Unit investigations into corruption and (d) is the status of the investigation process into the high-ranking members of her department and/or entities who are under investigation and still on full pay?

Reply:

The Minister of Public works and Infrastructure:

(a) I have been informed by the Department that DPWI is implementing a recruitment plan to accelerate the filling of all vacancies in the Main Vote and the PMTE. All five (5) vacant executive management positions have been advertised and include: Supply Chain Management, Facilities Management, Policy, Expanded Public Works programme (EPWP) and Inter-Governmental Relations. The position of the Head of ISA is awaiting approval and the concurrence by Cabinet. The vacancy rate target of the Department for the financial year 2020/21 is 12% and has improved to 11% which is more than 1% off the DPSA’s set norm of 10%. The Public Works and Infrastructure Portfolio Committee has also made a recommendation to the Department to conclude the recruitment process within the next three months.

(b) The high vacancy rate is as a result of the delays in the filling of positions due to various factors, both internal and external. External factors include the requirement to seek the permission from the Department of Public Service and Administration (DPSA) to advertise and providing motivations before any advert can be considered. This was precipitated by the requirement to provide motivations to advertise only critical positions during the period of lockdown imposed by Government to stem the tide of the Covid-19 pandemic. The impact of the lockdown also meant that the approach to recruitment had to consider the use of virtual platforms to conduct online shortlisting and interviews. Internal factors included the elaborate processes to set up panels and ensure the availability of members at all times, amongst others.

(c) The SIU investigations did not have an impact on the vacancy rate.

(d) As a consequence of three major investigations, the Department has embarked on disciplinary action against a number of senior officials, complimented by court applications to reverse the irregular appointment of a further 12 officials, based on an investigation by the Public Service Commission, as well as action against certain officials with respect to service delivery transgressions.

Status on the disciplinary action of senior officials are as follows:

  • On the Beitbridge Border Fence investigation, 11 Senior Management Services members were charged on 24 February 2021 and the hearings were held on 21-22 April 2021, and 5 and 6 May respectively. The hearing for members of the Bid Adjudication Committee was postponed to 14, 15, 17 & 18 June 2021 for further testimony and cross examination of witnesses. The hearing of the three implicated Senior Officials has been postponed sine die pending the outcome and finalization of a court application to interdict the process brought by one of the officials.
  • On the State Funerals investigation, 2 Senior Management Services members were charged on 23 February 2021. The hearings have not been scheduled yet as the initiators of the disciplinary process are still securing witnesses and finalising outstanding information required by the Senior Council appointed to assist the Department.
  • On the Irregular Appointments of 12 SMS officials’ investigation by PSC, 13 officials of which 12 are at Senior Management Level, were served with charge sheets in September 2019 and the hearing is scheduled for 26 May 2021. Reasons for the delay is due to the fact that the Department has been dealing with a point in limine and not the actual trial.

The disciplinary action against the Director-General is being managed by the Presidency.

The disciplinary action against the Special Advisor is being managed by the State Attorney on behalf of the Minister of Public Works and Infrastructure. An Initiator and Chairperson have been appointed by the State Attorney and draft charges have been prepared.

All Disciplinary matters are ongoing and the time-lines are changing due to the availability of all role players and the employees.

WITH RESPECT TO THE ENTITIES REPORTING TO THE MINISTER OF PUBLIC WORKS AND INFRASCTURE:

Entity

(a) (ii) steps being taken to address the extremely high vacancy rate in the entities

(b) the reason that the vacancy rate is so high

(c) total number of the vacancies that are as a result of the Special Investigations Unit investigations into corruption

(d) the status of the investigation process into the high-ranking members of the entities who are under investigation and still on full pay?

Agrément South Africa

ASA, does not have a high vacancy rate. The positions that are not filled are due to recent resignations and the posts are currently in the process of being filled.

Vacancy rate is low, as ASA is relatively a small organisation.

Not Applicable

Not Applicable

Council of the Built Environment

The current vacancy rate is 10%. The vacancy rate is high following the halting of the recruitment process due to budget costs.

A total of 4 positions are currently vacant. These are:

1. Senior Researcher

2. Legal Compliance Specialist

3. Senior IT Technician4.Strategic Planning Monitoring and Evaluation

4. Strategic Planning Monitoring and Evaluation

Not applicable

Not applicable

Construction Industry Development Board

(a) (ii)

Cidb is in the process of filling these positions in accordance with the available budget.

As such, we have identified 16 critical positions to be filled in the 2020/21 financial year.

Of these eight (8) appointments, interviews were conducted for two other positions and are at the competency and verification stage. We have also started with the recruitment process of four additional positions, and appointments will be made in the 2021/22 financial year.

CIDB has planned to fill its vacancies over the next three years, prioritizing critical positions while considering its available budget.

(b) Cidb underwent restructuring/ organizational development, and as a result, it has 153 vacant positions.

(c) Not applicable

(d) Not applicable

Independent Development Trust

The IDT is in the process of reconfiguration as endorsed by Cabinet.

The reason for the high vacancy rate at the IDT is attributed to the moratorium that was placed by the shareholder on filling of vacant positions.

There are no vacancies created by resignations directly linked the Special Investigations Unit investigations into corruption both in the current and previous financial year.

To the official knowledge of the IDT, there is none of its senior managers who are currently ‘under investigation’ and still on full pay.