Questions and Replies

Reply:

(a) The assistance provided includes tents, electricity and ablution facilities.

(b) Engagements with the occupants of the shelter have been done by government officials, the United High Commission for Refugees (UNHCR), civil society and the Portfolio Committee. All engagements have encouraged the occupants to either re-integrate into communities or to voluntarily repatriate to their home countries.

(c) The option of voluntary repatriation has been offered to the occupants. Between 1 January and 21 March 2021, 305 individuals have voluntarily departed South Africa to their countries of origin.

According to the UNHCR, it has provided assistance for persons willing to reintegrate back to the local communities or repatriate to their countries of origin as part of their mandate.

On local reintegration the UNHCR offered a reintegration package to cover basic rentals and necessities for three months, as well as counselling support for those choosing to reintegrate. The project which was originally intended to end on 30 April 2021 was then extended to 15 May 2021, following requests by some of the refugees. With many registering at the eleventh hour. The UNHCR consulted with Department of Home Affairs to continue with the reintegration process for those who registered by the deadline of May 15. UNHCR’s implementing partner, Adonis Musati, assisted with the implementation of the reintegration project that has now reached completion.

The status report of the reintegration indicated that 810 persons have reintegrated back into their communities. A total 761 persons were from Wingfield, and 49 persons were from Paint City. Of the 810 persons, the vast majority were from Democratic republic of Congo, (739 persons), followed by 26 persons from Congo Brazzaville, Burundi (15 persons), Zimbabwe (8 persons), Angola (6 persons), Cameroon (5 persons), Zambia (4 persons), Somalia (2 persons), and a few single persons from Mozambique, Malawi, Cote d’Ivoire, Tanzania and Nigeria. In terms of gender breakdown, 427 persons are male and 383 persons are female. 334 persons under the age of 18 years and 43 persons have benefitted from a small livelihoods component in the programme.

An additional 50 persons have voluntarily returned to their country of origin, all but 2 are from Paint City and these are mostly women and children. Of this number, 48 persons returned to Burundi, 1 to Democratic Republic of Congo and 1 to Cote d’Ivoire.

In total, in Cape Town, UNHCR project has assisted 860 persons from two sites this year, either to reintegrate or voluntary return to their country of origin. The UNHCR’s voluntary repatriation programme remains active and all new persons at the two sites of Wingfield and Paint City who still wish to reintegrate back into their communities will now be referred back to UNHCR’s regular programme where the partner will conduct individual needs assessments to determine eligibility for assistance.

(d) Deportation remains an option for those who are found to be illegal or have failed in their asylum applications and have no further grounds to remain in South Africa. So far 32 people have been deported from these shelters.

(e) The department is finalising the asylum applications of the occupants in these facilities.

END

Reply:

1. Yes. With regards to the initial request for an oversight visit, the Phase 3 site up until handover was not conducive to hosting groups of visitors on what was an active construction site. Covid-19 regulations for onsite health and safety had a substantive impact on construction sites. The Contractor who was responsible for the safety of the site until the handover to the Department was reticent about having to host a group of visitors including media on site while still being expected to meet their deadlines to completion. If the Department had to impose the visit request to the contractor, they would in turn be liable to be granted a claim for an extension of time (EOT) which would have a financial impact and an impact on the contractual practical completion date. It was thus agreed that the visits be conducted after the practical completion and the site handed over to the Department. Which has since taken place.

2. Yes. The Department’s responses to the questions and enquiries by the Deputy President’s offices was addressed and submitted. The COVID-19 pandemic has brought an onset of many challenges to the implementation of the original programme that was devised in 2019. Before the factoring of COVID-19 the original programme was scheduled for completion by 2023. The revised programme is scheduled for completion by August 2024.

The revision in time is based on the changes made to the original design of the housing unit by the claimants and allowing a process to fully consult with claimants while adhering to lockdown regulations. The effects of the COVID-19 pandemic on supply chain processes has also been a critical factor. The new program has been devised to catch up as much time that was lost by allowing for larger phases and doing them concurrently.

3. The Department’s role and mandate in District Six is the Restitution of claimants through the provision of houses. However, the Department has always acknowledged that the District Six Redevelopment requires more than housing to cater for the needs of the returning claimant community. To this end, since the very onset the Department initiated and supported the drawing up of the District Six Development Framework.

The Development Framework, an extensive document that has been widely consulted with the community, is a framework for the development of the whole area of approximately 40 hectares. It presents a set of principles, strategies, design and planning guidelines; as well as infrastructure proposals based on the existing inner city context of the site. The Development Framework proposals begin to address the issue of social justice and the restoration of land rights lost to give effect to the provisions of the Restitution of Land Rights Act (Act 22 of 1994).

The Framework recognizes that District Six is an inner city area that can significantly contribute to the revitalisation of the city. It argues that the site should neither be speculated upon nor encouraged to be gentrified as may ordinarily be the case had restitution not formed the basis of its redevelopment imperative. An integrated approach is therefore taken that includes a range of social, environmental and economic concerns relevant to District Six and the Cape Town CBD. The approach is strongly informed by the history and memory of the site as the subject of forced removals more than 40 years ago. Social justice and restoration of land rights therefore form the pillars that proposals towards the realisation of the framework, are based on.

The holistic redevelopment of District Six requires the participation and contribution from various sector departments, the province and very intrinsically the City of Cape Town. The Department last year granted the City of Cape Town to use the District Six Development Framework to form the underpinning of a process it has undertaken to develop and adopt a Local Spatial Development Framework for District Six.

The Department has provided and continues to provide support to the local authority in their mandate of providing the necessary social infrastructure to ensure that District Six is redeveloped in an integrated and sustainable manner.

4. The Department’s and Minister’s position on this matter has always been resolute. The 42 Hectares of land that is included in the settlement agreement should be used to solely enhance and benefit the claimant community of District Six. The land should neither be speculated upon for private gain nor encouraged to be gentrified.

5. The District Six Beneficiary Trust has always been acknowledged as a key body of representatives for the community of District Six. It was on that basis that they were a partner and signatory to original settlement agreement of District Six. The Trust were given the role of Developer from inception and subsequently were responsible for the development of Pilot Phase 1 and Phase 2 of District Six between 2002 and 2012.

In 2012 the full group of verified claimants in a meeting with the then Minister, addressed concerns and grievances to the Minister regarding the issues of progress and representation. The Minister at the time acceded to these concerns and allowed for the election of nominated claimant representatives to deal with the Department on matters pertaining to the development of the remaining phases. The members of District Beneficiary Trust were encouraged to participate in that elective process but chose not to. The body of representatives who were nominated and elected by the claimants themselves became the District Six Reference Group (RG), whom the Department has since dealt with as representatives of the verified claimants on matters pertaining to the design of the future phases.

The Minister in her tenure has always tried to consult with all the community groupings in District Six – of whom there are many - from the onset and will continue to encourage their participation in the redevelopment process.

Reply:

The Impimpa Hotline was launched by the Minister in March 2020. Due to budgetary constraints, the hotline had to be discontinued in October in 2020. During this time 178 977 calls were logged. 20 346 (11%) of these were from the Domestic sector.

The hotline was publicised via various media channels such as TV and Radio. We believe that the publicity was adequate since these channels have wide reach.

In instances where domestic workers get locked up at their work places against their will, South African Police Services (SAPS) would have to be brought in, due to jurisdictional issues. The Department has not received complaints of this nature yet.

The Department conducts both pro-active and re-active inspections (based on complaints) at workplaces to ensure that employers comply with all labour legislation.

Domestic Workers should contact their nearest Labour Centre and register their grievance against their employers with the view that the necessary labour inspection takes place. The Department also conduct periodic advocacy, stakeholder engagement and awareness campaigns highlighting domestic workers’ rights.

In instances where there are complaints around non-compliance with Employment Laws such as the Basic Conditions of Employment Act, the inspectors would investigate such matters. To this end, the table below provides details on the inspections that were carried out in the domestic sector.

 

Latest Labour Inspections Statistics for the Domestic Workers Sector (2020/21 Financial Year):

Total Number of Inspections	Compliance	Non-Compliance	Notices to Comply issued	Non-Compliance with Notices to Comply	Employers referred for Prosecution	Amount Recovered
5091	4900	191	191	137	54	R669 471 - 78

Reply:

1. The Ports of Ngqura has budget for 2 150 000 tonnes and Port Elizabeth bulk terminal handle 5 002 321 million and Multi-purpose terminal 1 3040 735 tonnes of manganese a year.
2. The Port Elizabeth manganese terminal will be closed by 2025/27
3. Rail tariff is R474 per tonne of manganese ore

 

Reply:

1. Inspections were conducted in the food and Beverage as well as the hospitality sector during the period in question, to test the extent to which Covid-19 Directions (linked to the Disaster Management Regulations) were complied with. The table below provides specific details:

Sectors	Compliance	Non-compliance	Total Inspections	% of total inspections	Follow up	Compliance Rate	Non-Compliance Rate
Food & Beverage	198	146	344	2,51%	41	57,56%	42,44%
Hospitality	442	464	906	6,62%	69	48,79%	51,21%

These inspections were conducted in quarter 1 of 2021/22 in OHS. It can be noted that compliance in the two sectors were low.

Reports are developed on a quarterly basis which details challenges and indicates possible solutions.

2. All non-complying employers were served with notices. Employers are recommended for prosecution if they do not comply after the expiry of a notice.

Reply:

1. Yes, Plans are afoot to provide financial support to Denel to overcome its current financial challenges.

(a) A solution for the guaranteed debt (>80%) will be addressed between August 2021 and December 2021. Further funding request has been made in the 2022/23 Medium Term Expenditure Framework.

(b) The Department and the National Treasury have agreed on the process to be followed to address the guaranteed debt which is maturing in September 2021 and December 2021. A joint task team consisting of the DPE, National Treasury, Department of Defence and Denel is exploring further funding options to support the operations resumption.

2. The Defence Review regards Denel as a strategic national asset. Denel is critical to the operational readiness of the Department of Defence and the South African National Defence Force (SANDF). Denel is the original Equipment Manufacturer (OEM) for some of the primary mission equipment of the SANDF. In repositioning Denel for sustainability and profitability, the SOC has developed a new operating model which will result in fundamental reorientation of its business structure. In terms of the new business model, Denel will reduce the number of business units from the current six (6) to two (2) to ensure optimal utilisation of critical resources and infrastructure. The SOC will, in terms of the new operating model, rationalise its asset base and plans to dispose non-core assets. The Department has made a funding application for Denel to support the implementation of the new operating model.

However, much still needs to be done to reposition Denel and return it to functionality and profitability. A challenging road will have to be traversed to get to this point. Recovery from the huge damage done to these institutions by state capture is a challenging task. There is no “quick fix” in this regard.

 

Reply:

According to the information received from SAA:

1. Yes, training has been conducted recently: requalification training including ground training and flight simulator training was conducted by SAA instructors during the month of March up to the commencement of industrial action by SAAPA affiliated pilots on the 2nd of April 2021. Safety and Emergency Procedure training for the pilots that are not locked out on the A319/320 fleet has been completed, as well as Crew Resource Management training for A319/320 and A330/340 pilots that are not locked-out, post 2nd of April 2021.

2. Yes, the SAA Engineering Department (SAAT) is working. However, the company continues to face challenges with reduced airline activity. This has resulted in less work for SAAT in the market.

As part of SAAT’s Business Plan, the organisation’s restructuring seeks to position SAAT as a viable business entity capable of growing within the current and future market outlook. SAAT remains a strategic entity in the country’s aviation strategy, as well as in enhancing economic recovery through air travel.

3. South African Airways (SAA) Safety Department has concluded its investigation with regards to the Alpha Floor event during a February 2021 flight from OR Tambo International in Johannesburg to Brussels in Belgium.

In addition to SAA’s internal investigation, SAA received the report from the South African Civil Aviation Authority’s (SACAA) investigation into the same Alpha Floor event.

The SACAA report has made findings and recommendations. SAA is studying the report to determine how the recommendations made by SACAA can be implemented.

Ultimately, the trajectory of the Covid pandemic and the possibility of further waves of infection or other events will determine the aviation recovery. This will in turn influence the business available to SAAT.

Reply:

The appointments of Heads of Department is governed by the Public Service Act which states that such appointments shall not exceed a period of five years. The contracts of two serving heads of department (COGTA and Human Settlements) were extended by the Premier on a short term basis at the end of their initial 5 year contract periods. The recruitment process of replacement full time incumbents is currently underway.

End

Reply:

a) The Local Government Leadership Academy (LOGOLA) was established in 2004 as the initiative of the then Department of Provincial and Local Government (dplg). Its developmental objective was to contribute towards the development of a broad base of politically mature leadership that can sustain democracy and strengthen a sustainable developmental local government sphere in South Africa. The LOGOLA model proposed in the Concept Paper was too expensive to implement, although by 2007 it was accredited by LGSETA as a virtual training provider to facilitate the Municipal Leadership Development Programme (MLDP). The academy was since disestablished during the Department’s transitional process in 2010, which also planned for the revitilisation of LOGOLA towards the establishment of a School for Local Government that in the future would merge with the National School of Government.

b) After its launch in 2007, the Municipal Leadership Development Programme (MLDP), and given that the overall concept was too expensive to implement, it was agreed that a focus on councillors training would be subjected to a number of pilots facilitated by accredited service providers. Approximately, 286 councillors and senior managers were enrolled in the pilot programme although in many cases the Portfolio of Evidence was not timeously completed in those four municipalities. The programme was since discontinued in 2010 as part of the envisaged reconcptualisation of LOGOLA.

Reply:

According to the Information Received from Eskom

a) Eskom had two dealings with Liviero Group in the past:

• Liviero Wilge Joint Venture (LWJV) - construction of 336 units on erf 165 Wilge Township.
• Liviero Civils – manhole construction at Kusile Power Station.

(b) Eskom Holdings SOC Limited

(c)(d)(e) Table 1 sets out details of total amounts of the contracts; whether the contracts finalised within the entered contract price and whether there were amounts charged over and above the agreed amount of each contract.

Table 1: Details of total amounts of the contracts; whether the contracts finalised within the entered contract price and whether there were amounts charged over and above the agreed amount of each contract.

Contract	Liviero Wilge Joint Venture (LWJV) for the construction of 336 units on erf 165 Wilge Township	Liviero Civils for a manhole construction Kusile Power Station
(c) total amounts of the contracts;	Initially, the total contract monetary value was R226.49 million. Subsequent contract modifications (six modifications in total) were implemented. The amount paid to LWJV was R632.64 million.	The estimated value of the contract was R2 501 530.
(d) were the contracts finalised within the entered contract price;	Yes, the LWJV contract was finalised within the mandated contracted price, as it included the approved modifications and termination costs.	Yes. the work was finalised within the contract price.
(e) what amounts have been charged over and above the agreed amount of each contract?	No amount was paid over and above the agreed contract. The amount paid to LWJV was R632.64 million.	No amount was paid over and above the agreed contract. Upon completion of the work and an assessment, Liviero Civils was paid R 441 045.

Reply:

1. (a) In March 2019, the President issued a proclamation on the establishment of the Unit, to be effective from 1 April 2019. The Unit was therefore formally established on 1 April 2019.

(b) Currently the unit consists of nine employees: 1 Chief Director, 1 Director, 4 Deputy Directors and 3 Assistant Directors. Two vacant Director posts are in the process of being filled.

(c) The successes of the unit:

• Technical Assistance and support: Since 2019, various awareness sessions were conducted to assist departments to implement Public Service Regulations, 2016 addressing ethics; integrity and discipline management. This includes issues of financial interests, gifts, other remunerative work and employees conducting business with the State. Departments were also assisted with establishing Ethics Committees. Ethics Officer Forums were established and used to guide Ethics Officers on the management of ethics in their departments, focussing on identified challenges and new developments.

The Unit assisted departments in rolling out the Guide to implement lifestyle audits in the Public Service. This included conducting training of 41 Ethics Officers (on 3 – 4 May 2021) regarding the verification of assets. This training was run in partnership with the UNODC and the World Bank.

Supported by Co-Water Sogema, an implementing agent for the Government of Canada (under the Strengthening of Ethics and Integrity Project) the Unit is finalising online courses to enable Ethics Officers and departmental investigators to conduct lifestyle reviews and lifestyle investigations as part of the lifestyle audit process. Awareness sessions on the Guide to implement lifestyle audits in the Public Service were presented to all provinces and selected national departments.

The Unit developed and adopted a Guide on managing discipline in the Public Service, to assist departments in managing disciplinary cases and to address precautionary suspensions.

The Unit adopted a project in Q 3 of 2020/2021 to assist those departments with long outstanding precautionary suspensions to address their backlogs and as a result, the costs for precautionary suspensions. Due to the project, by end of March 2021, provinces finalised 78% of their precautionary backlogs (Q1: 1% - Q 2: 8%, Q 3: 18% and Q4: 78%). The cost for precautionary suspensions was reduced, with the cost for National Departments stabilising around R 20 million per quarter and the cost for provinces decreasing from the first quarter to the last quarter with almost R 25 million (Q1:R 87 million compared to Q4: R62 million). The Unit specifically focussed on two provinces with the highest costs pertaining to precautionary suspensions: Free State and Kwa-Zulu Natal. The Free State managed to reduce their cost from R 12 million in Q 3 to R 6 million in Q 4. KZN reduced its cost from a high of R 92 million in Q 3 to R 21 Million in Q 4. NB: The amounts are based on information captured on PERSAL and verified by departments.

• Monitoring and evaluation: The Unit drew information from 2017 and drafted monitoring and evaluation reports where trends on the following are monitored and used to identify needs and emerging risks:
  • Report on employees conducting business with the State (March 2021), which indicated a decline in employees conducting business with the State. In June 2020, approximately 1500 employees were identified to be possibly involved in conducting business with the State. This declined to 490 employees in Jan 2021, and at the end of June 2021 it declined to 96 employees.
  • Report on employees performing other remunerative work (Feb 2021). The report found that departments are successfully implementing regulation 24 of the Public Service Regulations, 2016 (dealing with approval for performance of other remunerative work). Where challenges are identified, the Unit intervenes with training and assistance.
  • Report on submission of Financial Disclosures (March 2021). The report found that 98% of SMS members submitted their financial disclosures for 2020/2021. 60% of MMS members submitted their financial disclosures. Most of these members submitted for the first time, as they were identified as a new category. The Unit intervened to address challenges through training, awareness sessions and technical support provided to departments.
  • The Unit established a database on Public Service employees appointed as board members to State Owned Entities. The database is used to monitor if those employees were appointed in an official (as allowed in terms of Regulation 13(c) and to cross reference with existing databases to ensure they do not perform other remunerative work or conducting business with the State).
• Cooperation: The DPSA entered into agreements with the Financial Intelligence Centre, National Prosecuting Authority, South African Police Service and Auditor-General South Africa to assist the Unit with monitoring the implementation of regulations and to share data. The Unit works within the Anti-Corruption Tasks Team to provide support to investigations involving fraud of Personal Protective Equipment, Unemployment Insurance Fund and Social Relief of Distress fraud by identifying Public Service employees and following up on the institution of disciplinary action against employees.

2. A list of the members of the Unit was provided to Dr Gondwe.

Reply:

a) No monies were recovered by the Department of Public Service and Administration (DPSA), as no individual within this department were found guilty of conducting business with the State. The DPSA established a Memorandum of Understanding with the South African Police Service (SAPS), National Prosecuting Authority and Department of Justice and Constitutional Development to assist departments with investigating those cases where public service employees were identified by the DPSA to be possibly conducting business with the State. The SAPS investigations into the criminal cases referred by departments are not finalised yet, and as such no monies could be recouped.

b) By April 2021, the DPSA identified the following departments as possibly having employees conducting business with the State, and they were requested to investigate the allegations, to proceed with disciplinary action and to open criminal cases against employees found to be guilty:

National/Provincial department
Provincial	Agriculture, Land Reform and Rural Development
	Correctional Services
	Higher Education and Training
	Justice and Constitutional Development
	Science and Innovation
	Social Development
	Trade, Industry and Competition
Eastern Cape	Cooperative Governance and Traditional Affairs
	Office of the Premier
	Provincial Treasury
Free State	Social Development
Gauteng	Education
	Health
KwaZulu-Natal	Cooperative Governance and Traditional Affairs
	Education
	Health
	Transport
Mpumalanga	Culture, Sport and Recreation
	Health
	Public Works, Roads and Transport
North West	Education
	Health
Northern Cape	Agriculture, Environmental Affairs, Rural
	Development and Land Reform
	Economic Development and Tourism
	Education
	Health
	Roads and Public Works
Western Cape	Health

End

Reply:

An “evergreen contract” is defined as a contract that automatically renews itself on or after the expiry date. This means that the parties involved in the contract should agree that it rolls over automatically until one party gives a notice of termination. GPW’s business entails engagement with suppliers and service providers to acquire services and products that serve to facilitate the printing of critical print and media material for government departments and its entities. This relationship is formalised through entering into Service Level Agreements (SLA’s) with respective customers. Some customers are either a single source and or sole supplier/provider depending on the type of service rendered to GPW by these customers.

GPW observed that some companies on its database had been providing services for prolonged periods and therefore initiated a project to review the content of its contracts. Its objective is to identify and classify all contracts into different types and produce a report for implementation. The outcome of this project would enable GPW to determine the evergreen contracts and address them accordingly, including consideration to go out and test the market where necessary. GPW has been in consultation with National Treasury for advice on this project. In view of this, it would at this stage be legally inappropriate to provide full details of the current evergreen contracts for the Government Printing whilst the project is still underway. The project should be concluded by the end of this financial year.

GPW intends to address all the undesirable evergreen contracts found within the organisation to ensure compliance with the supply chain management principles of equity, ethical and fair dealing, open and effective competition, accountability and reporting, value for money, and transparent procurement.

END

Reply:

According to the information received from Denel:

(a)(i) Denel’s failure to pay employees during this period is as a result of the company’s liquidity challenges, which started as far back as 2017. Denel is a case study on what corruption and state capture in particular can do to a once successful business that was a benchmark on governance and performance. This pandemic has made the situation worse with closure of facilities in response to lockdown requirements.

(a)(ii) Denel is dealing with the root causes of the challenges faced by the entity which include the impact and consequences of state capture. The process to rebuild Denel is underway. This includes adopting a new business model that is responsive to changing market conditions to ensure sustainability. Management is in constant engagement with employees to find solutions. The Department is looking at various options of improving the liquidity solutions in the short term and options to strengthen the balance sheet for long term sustainability.

Most of Denel’s operating divisions are steadily addressing the outstanding salary payments owed since May 2020. However, this is dependent on how quickly the divisions are able to turn sales into cash. This is ongoing as Denel is dependent on sales in order to create its own liquidity.

Reply:

According to the Information Received from Eskom

Background

General Electric (GE) has a contract with Eskom for the design, engineering, supply, construction and commissioning of the turbines and generators installed at the Kusile Power Station project. There are six turbines and generators at Kusile. The contract includes for the major auxiliary plant supporting the turbines and generators.

(1)

Eskom does not have records of correspondence where GE was instructed to make a donation for R30 million.

(2)

Eskom understands that the alleged donation may be linked to corporate social investment (CSI) projects agreed between Eskom and GE. In this regard, we can confirm that Eskom and GE agreed that GE will execute CSI projects in or around Mpumalanga.

Within this list of CSI projects, Eskom cannot identify any item relating to a donation to the DD Foundation.

Reply:

a) The Department of Public Service and Administration has not concluded any agreements with the Republic of Cuba over the past 10 financial years.

b) Not applicable

c) (i) & (ii) Not applicable

End

Reply:

According to the information received from Denel:

a) The Board approved Denel’s turnaround plan in 2019 with the aim to refocus the business to reduce duplications and dispose non-cores assets.

b) Denel and the Board has made significant inroads in the restructuring the business key initiatives and success include the following:

• 1. LMT (expected annualised savings of R48m).
  2. Exit of loss making subsidiaries
  3. Exit of Denel Aerostructures (expected annualised savings of circa R260m).
  4. Exit of onerous contracts.
  5. Cumulative cost savings in excess of R1bn since April 2018 to September 2020, mainly driven by a 27% reduction in employee numbers.
  6. A 43% forecasted reduction in operating expenditure in FY20/21 vs FY19/20. Mainly as a result in reduced employment costs [as a reduction in natural attrition of employees] and overall subdued business activity.
  7. Improvements to governance and co-operating with the Commission of Inquiry into State Capture and the Special Investigating Unit (SIU).

However, much still needs to be done to reposition Denel and return it to functionality and profitability. A challenging road will have to be traversed to get to this point. Recovery from the huge damage done to these institutions by state capture is a challenging task. There is no “quick fix” in this regard.

Reply:

According to the information received from Eskom

a) Electricity supplied by Eskom to foreign countries is as set out in the table below:

	Country	Customer	Customer type	Capacity
1.	Botswana	Botswana Power Corporation (BPC)	Utility	150MW+non-firm
2.	Zambia	Copperbelt Energy Corporation Plc (CEC)	Transmission Company	50MW+non-firm
3.	Mozambique	Electricidade de Mocambique (EDM)	Utility	Standby of up to 300MW
4.	Mozambique	Mozambique Transmission Company (Motraco)	Transmission Company selling to South32 (end user)	950MW
5.	Lesotho	Lesotho Electricity Company (Pty) Ltd (LEC)	Utility	80-110MW
6.	Namibia	Namibia Power Corporation (NamPower)	Utility	200MW+ non-firm
7.	Namibia	NamPower for Skorpion Zinc Mine	Utility	Expired
8.	Namibia	NamPower for Orange River Cross Border Supply	Utility	36MW
9.	Eswatini	Eswatini Electricity Corporation (EEC)	Utility	190MW
10.	Zimbabwe	Zimbabwe Electricity Transmission & Distribution Company Private Limited (ZETDC)	Utility	50MW+ non-firm

b) Eskom is expected to honour its contractual obligations as per the respective agreements.  Eskom supplies foreign countries in terms of firm and non-firm power supply agreements.

• Firm power supply agreements are subject to the load curtailment reduction that is in proportion to the load shedding stages that are determined by NRS 048-9.

• Non-firm power supply agreements are suspended in the event of increased demand in South Africa including use of Open Cycle Gas Turbines (diesel) and load shedding.

c) Revenue generated is published in Eskom’s annual financial statements. The results for financial year 2020/21 are not yet published.

Reply:

1. In the third quarter of the previous financial year, the Department of Public Service and Administration launched a project to address the delays in finalising disciplinary cases where the Minister for the Public Service and Administration addressed executive authorities (Ministers and Premiers) whose departments were identified to have long outstanding precautionary suspensions. This was followed by one-on-one sessions between these identified provinces and departments and the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit (PAEIDTAU) to assess the reasons for delays, to provide technical assistance to finalise cases and where a newly developed electronic register was provided to departments to user to record their cases and to provide monthly progress updates to the DPSA. The MPSA furthermore addressed the issue in the Forum of South African Director-Generals (FOSAD) which took place in May 2021. The Director-General: DPSA embarked on provincial visits where top management were engaged, amongst others, on discipline management.

To assist departments with discipline management and to address identified challenges, the PAEIDTAU developed a Guide on managing discipline in the public service. The Guide is available on the DPSA website and training on the guide will commence this year.

In 2020, the DPSA trained 204 presiding officers to preside over disciplinary hearings.

As an interim measure, the MPSA launched (on 16 April 2021) a Discipline Management Complaints Hotline to enable public servants to report incidents of bullying and victimizations by their supervisors, pending finalisation of their disciplinary cases.

2. Tag A, herewith attached, addresses question 2, and reflects the information provided by national and provincial departments who responded to the request of the DPSA to provide the necessary information.

3. As indicated in the response of question 1, the MPSA addressed the issue with executive authorities in one-on-one meetings. The MPSA will continue to issue non-compliance letters to non-compliant executive authorities as mandated in terms of section 16 A of the Public Service Act and will also report those executive authorities to Cabinet and the Presidential Co-ordinating Council.

End

Reply:

According to the Information Received from Eskom

1. The amount of R178 billion reported in the media is the total value of contracts in which there may have been corruption or malfeasance. It should not be inferred that the total amount has been misappropriated. All such contracts are under investigation and signification recoveries have already been made. An example is the recovery of about R1,5 billion from ABB.

2. Eskom is progressing with enhancing its commercial governance process to ensure robust scrutiny. Numerous initiatives implemented under the supply chain recovery programme to mitigate the occurrence of irregular expenditure, include:

• Enhancement of internal processes and controls to eliminate procurement processes being circumvented. In line with legislative and compliance requirements, checklists have been embedded into systems to ensure that the applicable controls and workflows are complied with before conclusion of a transaction
• Proactive reviews of newly established contracts, modifications and deviations. In instances where potential irregular expenditure is identified, an investigation is conducted and the necessary condonation process implemented if required. Sanctions are instituted against employees and suppliers where wrongdoing is identified, and civil action and recovery measures are pursued where applicable

In conjunction with these initiatives, training on the revised PFMA reporting procedures and guidelines was rolled out, with the aim of eliminating any ambiguities that may arise from different interpretations of our governance framework.

3. Loss of billions of rands from the State Owned Companies (SOCs) were mainly due to State Capture, malfeasance, fraud and corruption. Eskom is working with law enforcement agencies to recover monies stolen during State Capture, malfeasance, fraud and corruption. The individuals in the SOEs and in the business sector must face the consequences of their thieving. This is in the hands of the law enforcement agencies.

Reply:

1) The omission of the Spatial Data Infrastructure Act (Act 54 of 2003) in the Annual Performance Plan (APP), was due to an administrative oversight and will be rectified in the revision of the APP of the Department for 2022/23. Although the SDI Act is omitted in the APP, its implementation is underway with the Committee for Spatial Information appointed and the Electronic Metadata Catalogue developed in the current financial year.

2) The Minister of Agriculture, Land Reform and Rural Development has appointed the Committee for Spatial Information (CSI) on 8 August 2021.

3) Yes. The Minister has appointed the CSI and she is well informed about the importance of the CSI including the functions performed by the CSI in relation to the processing of applications for spatial data.

4) Funding allocated for 2021-2022 for the implementation of the SDI Act is R7million. The CSI will hold a strategic planning session to determine the activities and the cost of operationalising the CSI. The Department will then fund the priorities as outlined on the strategic plan of the CSI.

5) The Department is in the process of developing a service delivery model to support the full implementation of the SDI Act, which includes support to data custodians. The CSI strategic planning session will guide the Department terms of establishing a functional national spatial data Infrastructure which will contribute positively to spatial transformation.

Reply:

NATIONAL ASSEMBLY

WRITTEN REPLY

(1)(a) The Commission filed the Notice of Referral as ordered by the Court. All interested and affected parties have been served. We are awaiting the Legal Representatives for the claimants /plaintiffs and owner defendants to proceed. The Commission arranged Legal Representation for the claimants in terms of section 29(4) of the Restitution of Land Rights Act, 1994.

(b) The land claim in question is pending in court. This claim was lodged with the Commission on Restitution of Land Rights on behalf of Molekwa Sekungwe Community before the cut-off date of the 31st December 1998. The claim was referred to court for the reason that the landowner is challenging validity of the claim on farm Vluchtkraal 38 KR.

2. No, the matter is pending in court.

3. No, the matter is pending in court.

Reply:

(1)       Whether her department has investigated the fact that overcrowding in schools is one of the factors contributing to the increasing number of COVID-19 infections; if not, why not; if so, what are the relevant details; 

RESPONSE:

The closeness of learners to each other in the classroom, and overcrowding, are clearly factors that can increase the risk of COVID-19 infection. This is clear from the World Health Organization (WHO) guidance and the guidance provided by South African experts, which is captured in the various guides and directives produced by the Department of Basic Education (DBE) and aimed at schools. There is no clear scientific evidence from anywhere in the world on the exact effects of the proximity of learners to each other in the classroom on transmission of the virus. Thus, rules and guidelines around classroom distancing strategies and optimal distances between learners are based on expert opinion, and differ from place to place. For instance, the WHO has advocated a distance of one metre in classrooms, while South African experts have in the past advocated one and a half metres. The reason there is no clear evidence is that the required experiments would be unethical. They would require, for instance, imposing a one metre rule in some classes, and a one and a half metre rule in other classes, in the same schooling system, and then seeing the extent to which transmission differed across the two groups. The reason one cannot make simple comparisons across different schooling systems, is that the epidemiology in each schooling system is influenced by a great variety of factors, and not just one factor such as the stipulated distance.

(2)       whether her department has made similar findings; if not, what is the position in this regard; if so, what are the relevant details; 

RESPONSE:

As explained in the response to the previous question, this type of research has not been conducted in South Africa for ethical reasons. What the Department is currently working on is analysis of Department of Health microdata on reported cases since the start of the pandemic, to detect whether correlations between schools being open and cases point to any clear benefits to either closures or re-openings. It should be kept in mind that learners are exposed to infection both inside and outside school, and that it is possible that learners may be safer in the more controlled environment of the school than outside the school. Initial findings from the DBE’s work does not point strongly in either direction, meaning whether schools have been open or closed has not made any significant difference to transmission patterns among children or the population as a whole.

(3)       whether her department is conducting the required research on ventilation and health protocols in schools in line with the Centre for Disease Control and Prevention’s building recommendations in both (a) private and (b) public schools; if not, why not; if so, what are the relevant details? 

RESPONSE:

The DBE has gone to great lengths to gather expert opinion, from South Africa and abroad, on optimal ventilation and other strategies in classrooms, and this informs government’s policy on these matters. Again, neither in the United States nor in South Africa are scientific experiments that directly assess the relationship between ventilation and transmission levels possible, for ethical reasons.     

Reply:

As at 31 July 2021, The South African Council for Educators still had a total of 826 cases that still remain unresolved and are still being processed.

More resources are being deployed to deal effectively with the existing backlog that is a direct result of the negative effect of Covid 19 that has, to a large extent, made it extremely difficult to get access to victims and witnesses. Quite often this applies to learners who are restrained by their parents to participate on misconduct cases which are linked to educators. Such a development often leads to delayed resolution and finalisation of cases.

In addition, the fear by teachers and Presiding officers to travel during this pandemic, witness tampering and intimidation of complainants by accused educators has impacted negatively on SACE’s ability to clear cases as planned. These challenges are being addressed by seeking cooperation, implementing awareness programmes and encouraging the community to help in enforcing the code of professional ethics.

Reply:

The remedial actions to be taken on:

(a). Financial Interventions

The following measures will be undertaken with the aim of enhancing efficiency to control measures already in place:

1. The grant frameworks as part of the Division of Revenue Act (DORA) governing the utilisation of emergency grant funding will be enhanced to include the following additional conditions:

a) Provinces and Municipalities to furnish Audit outcomes from previous financial year(s) when submitting an application for emergency funding;

b) Province/Municipality to provide evidence of the appointment of service provider prior to disbursements of funds. The approval letter by the National Department should be used to appoint a service provider;

2. Compliance concerns to be highlighted and discussed with Provinces and Municipalities during CFO forum(s) and quarterly performance reviews

3. Monthly and quarterly reminders to be sent to Provinces and Municipalities for submission of performance (i.e. financial and non-financial) reports in line with the DoRA provisions. Non-compliance letters will be issued to grant recipients in case of non or late submission of reports

4. Provinces and Municipalities to indicate strategies in place that will accelerate provision of TRU’s in their applications for emergency grant funding

5. It will be mandatory for Provinces and Municipalities to submit a credible and verifiable beneficiary list as part of the application process for emergency grant funding

(b) Non-Financial Interventions

1) At the MinMec of 23 September 2020 it was amongst others resolved that the quality assessments and or inspections of the NHBRC should include all human settlements projects and TRUs.

The process of reviewing the mandate of the NHBRC mandate has commenced in earnest. To this extent, the Department has drafted the Housing Consumer Protection Bill, which amongst others, will repeal the Housing Consumer Protection Measures Act of 1998, and address the following ;

a) Ensure adequate protection of housing consumers and the effective regulation of the home building industry;

b) Strengthen protection measures, regulatory and enforcement mechanisms as well as prescribing appropriate sanctions or penalties against defaulting persons.

To this end, on 30 June 2021, Parliament published the Housing Consumer Protection Bill for public consultation and this process will close on 13 August 2021, which will be followed by provincial visits.

In terms of the new Act the NHBRC will be the custodian in respect of providing quality assurance and inspecting TRUs for compliance with the norms and standards that are set in the Housing Code.

The Housing Development Agency was directed both by my office and the Director-General to ensure that processes leading up to establishment and construction of temporary residential areas and units are investigated, and a report provided on the outcomes thereof, including any consequence management measures.

It is also important that I advise that the South African Polices Services, under the Hawks have instituted a criminal investigation within the various projects including in Limpopo and Eastern Cape. In addition, the Special Investigating Unit are seized with matters based on a proclamation issued on the matter. As soon as I am provided with the relevant detail and reports I will advise the Portfolio Committee on the matter.

Reply:

According to the information received from Denel:

1. This question would be best described by defining Capability, which is man-made creation that facilitate human endeavor. It consists of three elements: i) Science/knowledge, ii) People, and iii) Tools (materials, machines, and facilities). If any of the elements is removed the capability ceases to exist. Denel still has these three elements in terms of our missiles business, though a number of skills have been lost. Therefore, Denel still has the capability.
2. The designs are still being done because Denel still has the three elements to some extent, though impacted by loss of a significant number of engineers in the value chain.
3. No, Denel has not lost all the capability, but is aware of attempts by some of its people to siphon Denel capability to foreign jurisdictions.

Reply:

Government is committed to promoting economic recovery and returning the public finances to a sustainable position. Faster economic growth remains the most important determinant of fiscal sustainability, and private investment remains a key driver of that growth. For this reason, government is taking steps to promote both private and public investment.

The economy has started to recover in response to improved global conditions and the easing of lockdown restrictions – and in the months ahead, a mass vaccine rollout will support a full reopening of the economy. At the time of the 2021 Budget, GDP growth of 3.3 per cent was projected for 2021, although recent strong GDP outcomes have opened the possibility of a better growth outlook.

Government’s balanced and prudent fiscal strategy is designed to stabilise the public finances. For example, the 2021 Budget provided continued support to the economy and public health in the short term without adding to long-term spending pressures.

Capital spending remains the fastest-growing component of non-interest spending. The main budget primary deficit is projected to narrow from 7.5 per cent of GDP in 2020/21 to 0.8 per cent of GDP in 2023/24, and gross government debt is expected to stabilise at 88.9 per cent of GDP in 2025/26.

In addition to these fiscal measures, government is working to promote investment.

Operation Vulindlela, a collaboration between the National Treasury and the Presidency, is working with the relevant departments to address many of the structural impediments to investment, such as the high cost of doing business, low levels of competitiveness and a weak public‐sector balance sheet.

Addressing these can unlock large‐scale investment by the private sector to support inclusive growth and job creation.

Recent initiatives such as Infrastructure South Africa and the Infrastructure Fund are instruments to enhance collaboration and attract private‐sector investment. This is done through partnering with the private sector, multilateral development banks and development finance institutions to bolster investment capacity, expertise and financing.

The commitment to these initiatives was further solidified in the 2021 Budget, where it was announced that government will be providing initial support of R18 billion to the Infrastructure Fund over the medium term. Several collaborative projects under the Fund are already underway, including student housing, digital infrastructure and water infrastructure.

By carefully managing public spending, undertaking structural reforms and shifting public expenditure towards fixed investment, we have embarked on a path to reduce public debt in a responsible and sustainable manner.

Reply:

Engagements on the budget deficit are ongoing and at present there are no new developments to report in this regard.

Reply:

The response is detailed in the table below.

1. Department of Correctional Services – Veterinary Services

2. Department of Health (North West Province) – Medical assistance during strikes

3. Department of Health (Kalafong Hospital) – Transfer of patients

4. Department of Health (Steve Biko Academic Hospital) – Transfer of patients

5. Department of Military Veterans – Medical assistance

6. Department of Public Works and Infrastructure – Building of bridges

7. National Treasury – Medical treatment for military pension officers

8. South African Police Services - Veterinary Services

With regard to the feedback on the Budget Review and Recommendation Report to the Portfolio Committee on Defence and Military Veterans on 5 May 2021, where it was reported that several departments still owe her department for services rendered (details furnished), (a) what is the total amount owed by each specified department, (b) for what period has the debt been outstanding in each case, (c) what are the details of the payment arrangements that were agreed to with each department and (d) by what date will the outstanding accounts be settled in full? NW1766E

9. South African Revenue Services - Veterinary Services

Whether she will please confirm what

(a) is the total amount owed by each department;

(b) is the total period for which the debt has been outstanding;

(c) payment arrangements were agreed to with each department and

(d) confirm when these outstanding accounts will be settled in full?

OUTSTANDING AMOUNTS FOR SERVICES RENDERED TO DEPARTMENTS
S/N	Department Name	Type	Number of cases	(a) the total amount owed by each department	(b) the total period for which the debt has been outstanding	(c) payment arrangements agreed to with each department	(d) confirm when these outstanding accounts will be settled in full
1	Correctional Services	Veterinary Services	22	R35 093,23	Ongoing service and most outstanding amounts are in the current financial year less than one year.	Payments will be made on a regular bases	Probably in the current financial year as payments are received regularly
2	Dept Health: NW	Medical Assistance During Strike	1	R12 275 216	Two to three years	In the year the service was provided however the institution does not keep to its promise. Continuous follow up is being made.	Dept. of Health / North West indicates that there was no contract in place, hence payment cannot be made until there is a contract. Engagements between the two departments are ongoing to settle the amount owing.
3	Kalafong Hospital: Gauteng	Patient Transferred	20	R264 108,37	More than three years	In the year the service was provided however the institution did not keep to its promise. Continuous follow up is being made.	Probably in the current financial year, since engagements with the relevant department are in process for settlement of the account.
4	Steve Biko Academic Hospital: Gauteng	Patient Transferred	17	R50 036,86	More than three years	In the year the service was provided how ever the institution did not keep to its promise. Continues follow up is being made.	Probably in the current financial year, since engagements are in process for settlement of the account.
5	Military Veterans	Medical Assistance	4 671	R99 033 939,62	Ongoing service and 58% of the amount outstanding is between 1 year to 3 years.	In the year the service was provided however the institution has had challenges making payments. Continous engagements are ongoing.	The relevant department reconciles with the DOD on a quarterly basis. In most years the debts raised are greater than the payments received. DMV has requested for some of the historic debts to be written off
6	Nat Dept Public Works	Operations: Building Of Bridges	2	R12 568 571,08	One debt is less than one year and the other more than three years.	In the year the service was provided however the institution does not keep to its promise. Continues follow up is being made.	Probably in the current financial year, since engagements with the relevant department are in process for settlement of the account.
7	National Treasury	Medical Treatment For Military Pension Officers	1 292	R6 724 103,65	Ongoing service and most outstanding amounts are more than three years.	In the year service was provided. However, in the financial year 21/22 National Treasury has requested to review long outstanding claims for settlement.	Probably in the current financial year, since engagements with the relevant department are in process for settlement of the accounts.
8	SAPS	Veterinary Services	6	R39 802,81	Ongoing service and most outstanding amount is in the current financial year less than one year.	Payments will be made on a regular bases	Probably in the current financial year as payments are received regularly
9	SARS Veterinary Service	Veterinary Services	1	R3 255,74	Two to three years	In the year the service was provided however the institution does not keep to its promise. Continues follow up is being made.	Probably in the current financial year, since engagements with the relevant department are in process for settlement of the account.
				R130 994 127,36

Reply:

(1) (a) Section 19 of the Government Employees Pension Law, 1996 (Proclamation No. 21 of 1996) states, inter alia, that a member shall have the right to retire on pension and shall be so retired on reaching the age determined by the law governing his or her employment. Section 52 of the Defence Act, 2002 (Act 42 of 2002) makes provision for members to be appointed and utilised in the Regular Force from the age of 18 to 65 years of age. In terms of Regulation 21 of Chapter III of the General Regulations for the South African National Defence Force (SANDF) and the Reserve an officer serving in the Permanent Force shall have the right to retire on pension and shall be so retired, on the date when he or she attains the age of 60 years. Regulation 22 of Chapter III also states that the maximum age limit for temporary service in the Permanent Force shall be 65 years. The incumbent Surgeon-General (SG) of the SA Military Health Services (SAMHS) reached the age of 60 on 20 October 2016.

(b) The following are the reasons and motivation for allowing his continued service beyond the official exit age:

i. To ensure continuous effective strategic direction and management to the SAMHS (SANDF).

ii. To ensure the effective management of medical and health services to the Department of Defence (SANDF).

iii. To retain specialist skills, especially where there is a shortage of skilled members in the Senior Management System, such as Medical Officers and Special Forces Operators.

iv. To ensure the retention of experienced members to mentor young and inexperienced members.

(2) The SG will retire on 31 October 2021.

(3) The process for the appointment of the next surgeon-general has been finalised and the next SG will assume duty with effect from 01 November 2021.

Reply:

(1) Liaison between the Department of Defence (DOD) and other role players, including the Department of International Relations and Cooperation took place in this regard to streamline diplomatic and protocol procedures that will allow the Department to proceed with measures to hold the individuals accountable and to remedy the situation. Diplomatic processes are considered according to the Memorandum of Agreement to ensure that the Department’s actions are embodied thereon and are binding to all the affected parties involved.

(2) Yes,

(3) I have asked the CSANDF to provide same.

Reply:

(1)(a)(i) and (ii) Non-availability of members who agreed to serve on the Task Team for various reasons relating to health, other commitments etc led to a further search for members to serve on the Task Team.

(b) The appointment was announced once members were appointed on 1 March 2021.

(c) (i) The Task Team is expected to finalise their report into all matters relating to their mandate within 6 months as of 1 March 2021.

(c) (ii) The task team is to investigate the allegations contained in 3 separate submissions: (i) An anonymous report of October 2019 alleging fraud, corruption and misuse of State funds in the Department of Defence (DoD), particularly in the South African National Defence Force (SANDF); (2) A submission made to the State Capture Commission by Maj Gen (ret) Sizani and Maj Gen B Ngcobo which similarly contained serious allegations of alleged criminal activity in the environment of the Defence Intelligence Division; and (3) A memorandum from Maj Gen L. Ford outlining concerns regarding some procurement irregularities by the SANDF in the purchasing of Interferon-B from the Republic of Cuba when Coronavirus reached our shores in March 2020.

(c)(iii) Members of the Task Team not in the employ of the State are remunerated hourly rates as prescribed by National Treasury for Commissions / Committees of this nature and must submit time sheets to claims such on a monthly basis.

(2) Members of the Task Team were selected based on their knowledge and understanding of Government and especially the security cluster. The Chairperson is Mr Zola Ngcakani and the other two members are Dr RC Lubisi and Mr B Masethla.

(3) As can be noted from their Terms of Reference they will be investigating the environment of Defence Intelligence and as such it is best suited that they be vetted by another security agency.

(4) The final report will be shared with the relevant oversight structures in a manner that will be dictated by the nature of the findings and recommendations given that some of it relates to the environment of Defence Intelligence, which may be better shared with the Joint Standing Committee on Intelligence.

 

Reply:

1. (a) It takes a minimum of 15 days to respond to appointments requests. The father (Dr Dare) received a response from this office via email.

(b) The office operating hours has been reduced due to covid-pandemic. Due to lack of personnel in this office, phone calls may only be attended to when counter duties to public members are completed for the day

2. The office was informed.

3. The office is not flouting the law. The children must be registered in the country of birth and submit proof of birth (foreign birth certificate) when applying for SA birth certificates.

4. (a) The current operational hours are from 9H00 to 15H00.

(b) Dr Dare was responded to on (i) 11 June 2021 (ii) his appointment date was 29 June 2021 @ 10H00. He attended his appointment on 29 June 2021 and the department is still awaiting the application from DIRCO’ s diplomatic bag.

• END -

Reply:

1. An amount of R210 000.00 financial provision is provided.

2. The quantity of the bulk sample is clearly described in the approved Prospecting work programme and has not been increased. Rehabilitation is described in the approved EMP

3. (a) Yes.

(b) Yes. All the studies were done copies are readily available in our offices in Springbok for collection as they can not be mailed through due to size.

4. This is the competency of the Department of Agriculture, Environment, Rural Development and Land Reform (Kimberley office).

Reply:

(1) An amount of R1,253,386,427.00

(2) Yes, the mentioned amount is held by the Department.

(3) (a) (i) West coast Resources is still the holder.

(ii) West Coast Resources.

(b) The date cannot be confirmed as the business rescue process is still underway.

Reply:

1. a) On the 25th of October 2019.

b) Inspection findings;

• No mining activities were taking place onsite at the day of inspection.
• The access gate was locked with security guard onsite.
• Mine infrastructure onsite, include office, access and haul road, opencast pit, overburden stockpile, opened trenches with berms, coal stockpile.

2. a) There is no mining permit issued on the area that was inspected and as such no consultation took place.

b) (i) The court order found Lunathi to be mining; no authorization neither a permit/mining right or prospecting right was issued to Lunathi to mine the area.

(ii) No information could have been shared with the land owner as Lunathi was never authorized to mine the area.

3. The office of the Regional Manager has not received any concern or objection alleging that certain part of the applications constituted of cut and paste material.

4( a) The Department was still investigating the validity of mining permit.

(b) Ms A M M Weber was provided with the copy of the approved Environmental management plan (EMP) of Hlelo.

5(a) There is no mining permit on portion 24 of Boschmanspoort and as such no internal investigations are being conducted. This is being treated as an illegal activity and law enforcement will assist in dealing with the matter.

Reply:

ANNEXURE A

list of all the (a) mining and (b) prospecting licences granted in the eMalahleni Local Municipality in Mpumalanga in the past three financial years

Seq No.	NAME OF THE COMPANY	REF NUMBER	STATUS	LOCATION	TYPE OF RIGHT	GRANTING/ISSUING DATE	EXPIRY	OPERATION OR NOT
1	Kusile mining (Pty) Ltd	MP30/5/1/2/2/10049MR	GRANTED	ROODEBLOEM 58 IS, ptn 1 and 2	NEW	2019/03/11	2029/03/10	Not operational
2	SIDE MINERALS (PTY) LTD	MP30/5/1/2/2/10072MR	GRANTED	BANKFONTEIN 216 IR, ptn 7 and 11	RENEWAL	2019/11/03	2026/11/02	Operational
3	Eyethu Coal (Pty) Ltd	MP30/5/1/2/2/10148MR	GRANTED	SPEEKFONTEIN 336 JS, ptn 4	RENEWAL	2019/03/18	2024/03/17	Operational
4	UMCEBO MINIING (PTY) LTD	MP30/5/1/2/2/10118MR	GRANTED	RONDEBULT 303 JS, RE and DOORNRUG 302 JS, ptn 11	RENEWAL	2019/03/17	2027/03/16	Operational
5	Eyethu Coal (Pty) Ltd	MP30/5/1/2/2/10166MR	GRANTED	KOSMO 282 JS, BLOEKOMBOS 414 JS, DRIEFONTEIN 297 JS, LEEUWPOORT 283 JS, SUURWATER 366 JS, TWEEDAM 377 JS	RENEWAL	2019/03/17	2024/03/16	Operational
6	JOE SINGH GROUP OF COMPANIES	MP30/5/1/2/2/10197MR	GRANTED	HENMA 291 IR	RENEWAL	2019/03/11	2024/03/10	Operational
7	Ibumba Bricks (Pty) Ltd	MP30/5/1/2/2/10124MR	GRANTED	LEEUWPOORT 283 JS, ptn 9	NEW	2019/03/17	2049/03/16	Not operational
8	Koornfontein Mines (Pty) Ltd	MP30/5/1/2/2/10077MR	GRANTED	VLAKLAAGTE 45 IS	NEW	2020/08/14	2035/0813	Not operational

Prospecting Rights

Seq No.	NAME OF THE COMPANY	REF NUMBER	STATUS	LOCATION	TYPE OF RIGHT	GRANTING/ISSUING DATE	EXPIRY	OPERATION OR NOT
1.	Kusile Mining (Pty) Ltd	MP30/5/1/1/2/14040PR	GRANTED	9, 11, 12 & 15 Rietfontein 100 IS	RENEWAL	2019/05/13	2015/09/04	Operational
2.	CREDOCRON CC	MP30/5/1/1/2/10891PR	GRANTED	25 Elandsfontein 309 JS	New	2018/04/25	2012/08/22	Not operational
3.	Makole Electrical (Pty) Ltd Trading As Makole Electrical (Pty) Ltd	MP30/5/1/1/2/11732PR	GRANTED	26 & 94 Naauwpoort 335 JS	New	2020/03/25	2013/04/25	Not operational
4.	Invincibledrive Pty Ltd Trading As Invincibledrive Pty Ltd	MP30/5/1/1/2/11725PR	GRANTED	5 & 11 Rhenosterfontein 318 JS	New	2019/10/30	2013/04/10	Not operational
5.	125 Makole Investment cc Trading As 125 Makole Investment cc	MP30/5/1/1/2/12195PR	GRANTED	3 Steenkoolspruit 18 IS	New	2020/03/25	2013/07/26	Not operational
6.	NGULULU RESOURCES PTY LTD Trading As	MP30/5/1/1/2/13065PR	GRANTED	4,5,6,8,9,36,39, RE Hartgebeestlaagte 325 JS	New	2018/04/24	2014/06/03	Not operational
7.	J for Joy Development and Entertainment (Pty) Ltd	MP30/5/1/1/2/14497PR	GRANTED	Portion of portion 4 Driefontein 297 JS	New	2018/07/20	2016/10/13	Not operational
8.	XAKWA INVESTMENT (PTY) LTD	MP30/5/1/1/2/12382PR	GRANTED	Waterkyk 304 JS	RENEWAL	2019/05/29	2013/09/26	Operational
9.	Superlane 137 (Pty) Ltd	MP30/5/1/1/2/14001PR	GRANTED	Portion of RE Duvha Kragstasie 337 JS	RENEWAL	2018/11/08	2015/07/24	Operational
10	Umzobanzi Coal and Energy Pty Ltd	MP30/5/1/1/2/14632PR	GRANTED	8, 10, 30 Grootvallei 258 JS	RENEWAL	2019/05/29	2017/01/27	Operational
11	Inkanyezi Mining and Industrial Suppies cc	MP30/5/1/1/2/14670PR	GRANTED	2, 11 Nooitgedacht 300 JS	New	2018/07/04	2017/02/23	Not operational
12	AMULA RESOURCES (PTY) LTD	MP30/5/1/1/2/14181PR	ISSUED	31 Wolvenskrans 17 IS	New	2018/05/30	2016/02/23	Operational
13	Zama Jali Mining CC	MP30/5/1/1/2/14138PR	ISSUED	6, 12, 13 Speekfontein 336 JS, 12 Rhenosterfontein 318 JS	RENEWAL	2018/11/28	2015/12/18	Operational
14	Big Coal (Pty) Ltd	MP30/5/1/1/2/11318PR	ISSUED	1, 13 & 32 Blesboklaagte 296 JS	New	2018/10/03	2013/01/17	Operational
15	MH Kekana and Sons	MP30/5/1/1/2/14870PR	ISSUED	30-60, 63, 64, 65, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79,80, 81, 82, 83, 84, 85, 86, 92, 112, 123, 134, 235 Nooitgadacht 300 JS, 2, 3, 10, 14-18, 23, 24, 26, 29, 30, 32 Hartbeestpruit 281 JS	New	2019/09/19	2017/08/22	Not operational

Reply:

Yes.

Schedule 2 of the Electricity Regulation Act will be amended to increase the NERSA licensing threshold for embedded generation projects from 1 MW to 100 MW.

Reply:

According to the information received from Denel:

To date, Denel has not been able to fully comply with the Court Order instructing it to settle the outstanding payments for the months of May, June and July 2020 as per the 4 August 2020 judgement of the Labour Court. Denel has however made significant progress in complying with the Court Order and is required to report back to the Labour Court in July 2021, with a report on progress made in this regard. This, in line with the Court’s ruling of 28 January 2021.

It is important to record that Denel finds itself in this dire position, as do its employees, because of the extreme and systemic damage done by corruption and state capture.

Denel’s Board and management are liasing with the unions on this matter.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(a) As the honourable member might be aware that all Cabinet Ministers serves in their portfolios at the behest of the President.  The acting period remains the prerogative of the President.

(b) I continue to execute and fulfil my responsibilities as Minister for Small Business Development as detailed in my Performance Agreement with the President and both the Strategic and Annual Performance Plans whilst also acting as the Minister in The Presidency.

Thank you

Reply:

(1) (a) Honourable Member, the National Human Settlements Command Centre (HSCC) was established as an inter-governmental operational co-ordination platform to support the work of the National and Provincial Departments of Human Settlements, Provinces, as well as the Metropolitan Municipalities in between meetings of Technical MinMec meetings. The meetings of the HSCC were attended by officials employed in public institutions from the three spheres of government.

(b) There was no additional remuneration, incentives and bonuses in respect of the work of the HSCC.

(2)(a)&(b) I am informed that the HSCC met on the following dates:

• 8 April 2020
• 11 April 2020
• 14 April 2020
• 22 April 2020
• 29 April 2020
• 13 May 2020

Reply:

According to the information received from Transnet:

a) Transnet received 84 applications for rental relief in the 2020 -21 financial year.

b) The names of the tenants who applied for rental relief are listed in Annexure A.

c) The rental relief applications that were approved in line with the guidelines, are listed in Annexure A.

d) The Rand value of each approved application is contained in Annexure A.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

Honourable Member, the Housing Development Agency (HDA) hosted the National Human Settlements Command Centre (HSCC). I am informed that there were no costs incurred in the establishment and operations of the HSCC.

Following the findings published in the Auditor-General’s First Special Report on Government’s Financial Management of the COVID-19 crisis, I convened MinMEC on 23 September 2020 to discuss findings in respect of the Temporary Residential Units (TRUs) built in response to the COVID-19 pandemic. This was necessary because housing is a concurrent function between three spheres of government and the National Department of Human Settlements is responsible for policymaking. The meeting was attended by members of the HSCC, Provinces, HDA and Municipalities. At the said meeting and as part of remedial measures, Accounting Officers of these entities were instructed to; 

 

• Take the necessary steps immediately to ensure that the current TRU projects comply with minimum norms & standards.
• Revisit current contracts to ensure value-for-money is derived. 
• Institute Accountability and Consequence management measures - “act or be acted upon”.
• Consult with the NHBRC on specifications for TRU bids and implementation monitoring.

 

Further, the Honourable Member will be aware that the matter is also under investigation by the SIU.

Reply:

According to the Information received from Eskom

A forensic investigation revealed multiple instances where Ms Mlonzi, the sole director of Econ Oil was party to inappropriate and unethical behaviour, and in particular, in attempts to unduly influence Eskom officials to inappropriately and unlawfully act to the benefit of Econ Oil, either during procurement processes and/or contract execution stages.

On 29 August 2013, Ms Marah, a former Eskom employee, requested Ms Mlonzi/Econ Oil to make a contribution to “Women in Dialogue”. Ms Mlonzi complied and Econ Oil paid R10,000 to the organisation on 4 September 2013.

On January 2014, Econ Oil invited certain Eskom officials to an ANC Gala Dinner, inclusive of Ms Marah, and allegedly paid for such. The price for the cheapest table was R150,000.

On 11 April 2014, Ms Marah requested Ms Mlonzi on behalf of ANC’s Liliesleaf Farm Branch, to make a donation towards the ANC’s 2014 National Elections campaign. Ms Mlonzi complied and paid R100,000 on 23 April 2014.

Ms Marah was suspended in December 2018 and resigned in January 2019.

There is no causal link with the donation made by Ms Mlonzi to the ANC that would enable Eskom to take legal steps to recover the donation.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi Pravin Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

According to the information received from Alexkor:

a) Alexkor has always bought these items directly from the main retailers. They are not procured through a third party

Consumables	YTD Spend	Forecast YE Spend
Cleaning products	R12,210	R13,320

According to the information received from Denel:

(1)(a) Denel, due to continued and prolonged liquidity challenges do not procure bulk bottled waters, milk etc. Cleaning material is part of the Cleaning contracts, which is a consequence of the competitive bidding process.

(1)(b) N/A

(2) N/A

According to the information received from Eskom

Background

Eskom’s Procurement and Supply Chain Management Procedure states that all prices paid need to be market related, thereby minimising the total cost of ownership. The cost of ownership may include items such as delivery, which could be included with each payment invoice. Eskom has since introduced various mechanisms, namely Price Check, e-Auction, Cataloguing, etc., which are embedded in the procurement system to ensure that the principle of obtaining market related prices is adhered to across Operating Units.

The data used to calculate the estimate for Eskom’s spend per unit on a basket of recurring consumables such as bottled water, toilet paper, milk, cleaning products and implements was extracted from SAP based on the text descriptions.

Eskom systems capture information at invoice level not per unit price. In order to respond to this question, Eskom undertook a manual exercise in order to remove items that are not related to the question, and obtained feedback at local level i.e. stations, operating units and offices.

1. (a) The outcome of an exercise undertaken to determine a reasonable estimate for Eskom’s spend per unit on a basket of recurring consumables, such as bottled water, toilet paper, milk, cleaning products and implements, is summarised in Table 1 below. The total spend in April 2020 to February 2020 was R15.6 million - 47% less than the 2019/20 financial year spend.

Category	Currency	FY 2019/20	1 April 2020 to 28 February 2021
Milk	ZAR	16 955 622	7 194 810
Toilet paper	ZAR	5 560 989	2 804 401
Bottled water	ZAR	382 566	258 627
Cleaning products and implements	ZAR	6 456 299	5 383 989
Total		29 355 476	15 641 827

Table 1: Total spend on bottled water, toilet paper, milk, cleaning products and implements

81.47% of the transactions for the last financial year were procured using the local purchase order (LPO)

• According to Eskom Procurement Procedure 32-1034, LPO is a procurement mechanism to be used by an accredited LPO-buyer to procure specific confined categories of goods and services in accordance with the prescribed Delegation of Authority Policy thresholds. The LPO is seen to procure specific confined categories of goods and services below the value of R26 000, excluding VAT.

• The spend on these items is considered as ‘low value’, and most spend is not on long term contracts. This is as a result of Eskom’s footprint across multiple sites, across the country. Further these items are procured locally, preferably local to site, in order to support to local business.

• Since LPO is the main procurement mechanism used, the transaction captured on the system could only reflect the total amount paid. This means the unit data is not standardised and could include varying unit sizes e.g. 20litres of milk, a six pack or 1 litre. This applies to cleaning materials.

(b) A total of 1646 transactions were identified for the period 1 April 2020 to 28 February 2021 and 73%, i.e. 1215 transactions, were analysed further.

In terms of wholesale or retail prices, the results of the price comparison are as set out in Table 2.

Eskom notes that the unit prices paid are above market rates. This is being attended to.

Table 2: Price comparison for bottled water, toilet paper, milk, cleaning products and implements

In terms of cleaning products and implements:

• Cleaning services are mostly procured as a combined service including labour, material and equipment, therefore it is not easy to identify cleaning products and implements costs.

• There are other costs included in the transactions such as transport and delivery cost. Therefore the individual items could not be rolled up accurately.

1. Eskom’ spend per unit on a basket of recurring consumables such as bottled water, toilet paper, milk, cleaning products and implements is a very small portion (less than 0.01%) of the total spend. Therefore it should not be extrapolated across the total spend, to make any conclusions on the rest of the Eskom spend.

The analysis presented above has been shared with the business and guidance on LPO usage will be provided to the business, since it is monitored at local level.

Overall, the exercise did not reveal issues that would impact on cash flow and profitability.

According to the information received from SAFCOL :

1 (a) SAFCOL procurement (2019/2020 FY)

Bottled Water 500l	Toilet Paper one ply pack 24	Milk 1Litre	Cleaning Products
Average Unit Price	Average Unit Price	Average Unit Price	Average Unit Price
R12.00	R290.00	R18.00	Handy Andy 750ML=R30.00 Pine Gel 5Litre =R180.00 Bleach 5 Litre =R70.00 Domestos 5 Litre = R150.00
Total Spend for the Financial Year R3 000.00	Total Spend for the Financial Year R120 000.00	Total Spend for the Financial Year R15 000.00	Total Spend for the Financial Year R70 000

1(b) Wholesale prices (2019/2020 FY)

Description	Bottled Water	Toilet Paper	Milk	Cleaning Products
Unit Price	R14.00	R250.00	R14.00	Handy –Andy 750ML =R25 Pine Gel 5L =R150 Bleach 5L =R50 Domestos =R120
Comments	The price varies depending on the brand or the supplier	The price varies depending on the brand or the supplier	The price varies depending on the brand or the supplier	The price varies depending on the brand or the supplier

2. Total spend does not affect cash flow nor profitability.

According to the information received from South African Express:

Not applicable. The SOC is under liquidation.

South African Airways:

The information from this entity is outstanding and will be submitted as soon as it becomes available.

According to the information received from Transnet:

1.(a) &(b): Annexure A provides details of the spend on a basket of recurring consumables.

2. The rate differences per annum for recurring consumables will not have an impact on the profitability or the cash flow of Transnet. Transnet has no long term agreements in place for consumable items and frequent RFQ’s are issued out to the market in order to ensure that the prices paid remain market related. There are certain instances that Transnet pays below the market rate for consumables and this compensates for the items procured above market rate.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi Pravin Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

According to the information received from Denel

1(a) Denel’s overall operating activities and environment has further declined in the FY2020/21 financial year with revenue (R2.8bn) projected to be in par with the previous financial year and further losses projected to be 23% lower than the previous financial year.

(1)(b) Denel has struggled to meet all its obligations due to low cashflow and limited business operations.

However, the board, management and DPE are in the process of confirming a new business model which takes account the current realities, including the financial constraints, the stealing of Intellectual Property and the need to rebuild Denel’s capability.

Remarks: Reply: Approved / Not Approved

Kgathatso Tlhakudi P J Gordhan, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

1. As Minister of Finance, I generally only make tax announcements on Budget Day, but given the exceptional circumstances after the first Covid-19 lockdown, I made some tax announcements on 29 March and 23 April 2020 to provide tax relief to businesses and individuals during the 2021/21 financial year. Two of these measures applied to corporations, namely delaying the base-broadening measures I had announced in the previous Budget and deferrals for provisional tax payments. These measures have now run their course. The corporate tax regime already contains automatic stabilisers as a tax on profits, and as companies’ profitability recovers so will revenue from corporate income tax. Companies that face financial distress can utilise the existing tax administrative measures to apply for hardship relief. To aid the medium-term recovery, I announced in the 2021 Budget speech the overall intention to restructure the corporate income tax system in a revenue neutral manner, through a combination of a tax rate reduction and base broadening measures. These measures are expected to enhance efficiency, transparency and fairness in the corporate tax system. The design of the corporate income tax system can influence taxpayer behaviour, which impacts the economy. A corporate income tax regime characterised by a broad base (fewer tax incentives and exemptions) and a lower rate is simpler with less loopholes and requires less onerous anti-avoidance legislation. By revising the corporate tax base in this manner, we can afford my proposed one percentage point reduction in the corporate income tax rate from 28 per cent to 27 per cent from April 2022 without a loss of revenue. 27 per cent is still higher than the current global average of around 23 per cent, but South Africa is working with more than 100 other countries on a multilateral solution for a global minimum tax rate of at least 15 per cent. A lower corporate tax rate is expected to make our tax system more attractive to investments: this can boost the post COVID-19 recovery; reduce the incentive for multinational firms to shift their profits to low-tax countries; and reaffirm our commitment to support business in working towards inclusive growth. The announced reduction from 28 to 27 per cent will be done in a revenue neutral manner by broadening the base through reducing the number of tax incentives and implementing the measures that were delayed last year, namely restricting the use of excessive interest deductions and limiting the setoff of accumulated assessed losses against taxable income. The combination of a rate reduction and base broadening measures aims to ensure affordability so that no social spending is affected as a result of these proposals.

2. No, as the tax system is a very blunt tool to achieve non-revenue related objectives, and introducing additional further tax incentives will also work against our objective to broaden our tax base and lower the tax rate for all businesses, and to do so in a revenue neutral manner. Tax incentives narrow the tax base, requiring a higher tax rate to raise a given level of revenue. The provision of tax incentives often undermines the principles of a good tax system, which should be simple, efficient, equitable and easy to administer. Tax incentives provide certain taxpayers/industries with preferential treatment compared to what is generally available to all, creating opportunities for vested interests and lobby groups. The 2021 Budget Review stated that “Government is reducing the number of tax incentives, expenditure deductions and assessed loss offsets…”. National Treasury has already commenced a process to review existing corporate tax incentives with a view to repeal those that are redundant and include sunset dates where there are none. Studies conducted by international organizations, such as the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) and the World Bank confirm that investors also value other factors above tax incentives when making investment decisions. These include political and policy certainty, infrastructure, access to markets, access to skilled labour, etc. Reducing the corporate income tax rate and broadening the base is a better means of benefiting all businesses. In turn, employees and consumers can also benefit from higher wages and lower prices.

Reply:

a) What number of productivity champions are employed by Productivity SA?

Productivity SA does not employ and pay the salaries of Productivity Champions.

However, as part of our objective to promote a culture of productivity and accountability thereof, as part of our APP target in the 2020/21 FY, we have identified and trained 429 Productivity Champions. They are trained and capacitated on Productivity Tools and Techniques including that of Kaizen (Continuous Improvement).

(b) what is the total cost of their employment?

N/a - Productivity SA doesn't employ Productivity Champions. The training of the Productivity Champions is conducted by our Productivity Practitioners and funded through the appropriation as well as funding made available by strategic partners (including funding through Limpopo Economic Development, Environmental affairs, and Tourism (LEDET), Seda (Mpumalanga), and Eastern Cape Development Corporation (ECDC).

(c) how are they selected for employment?

A Productivity Champion is an employee of a business entity which we are providing the Enterprise Development and Support Programmes to improve their competitiveness and sustainability through training in the fundamentals of productivity measurement and improvement.

(d) what are their roles and responsibilities

The purpose of training productivity champions is to capacitate the organisation with productivity and competitiveness enhancement tools to help sustain work we have done after we leave the organisation and for the organisation to continue the continuous improvement journey aimed at sustainability and growth.

(e) what is their numerical breakdown in each province?

REGION 1	REGION 2	REGION 3
Gauteng	169	Western Cape	109	KwaZulu-Natal	20
Limpopo	11	Northern Cape	2	Eastern Cape	50
North West	12	Free State	12	Mpumalanga	44
Total	192		123		114

Reply:

1. I am not aware that there was any letter from BASA dated 10 October 2020, and the attachment submitted by the Honorable Member appears to be a public media statement issued by BASA on 11 October 2020. The Minister of Finance cannot be expected to answer or account for any statement issued by BASA, or for the loan policies of any private registered bank.

I will, however, assist the Honorable Member by commenting and highlighting relevant points from this and other BASA statements, some of which they also sent to the National Treasury. I refer the Honourable Member to the BASA website (www.banking.org.za) for other relevant statements, and also bring to the attention of the Honorable Member my response to a previous parliamentary question PQ 869, published on 29 September 2020.

a) (i) Payment breaks on credit agreements

Yes, I am aware that all the major banks took steps to provide relief to their customers soon after the start of the first COVID-19 lockdown in 26 March 2020, based on the public statements issued by BASA and various individual banks, as well as meetings between BASA and Treasury. According to the BASA statement of 12 November 2020 (https://www.banking.org.za/news/nov-covid-19-relief-update/), most of the major banks restructured loans and credit facilities for their clients and corporate customers in financial distress through their own credit relief process, almost immediately at the start of the first lockdown. In this regard, the credit relief (repayment holiday or payment breaks on credit agreements) was a voluntary initiative by commercial banks, which was offered to individuals and small and medium enterprises (SME) for the six months (April – October 2020). As at 24 October 2020, BASA reports that banks had provided R33,61 billion in payment breaks on credit agreements to South African businesses and individuals who were in financial distress as a result of the Covid-19 pandemic and the national lockdown.

According to BASA, over 83 per cent of individuals and 95 per cent of businesses who requested help, with personal and home loans, vehicle finance, business mortgages and credit facilities, received the required assistance. This cash flow relief for 2 684 271 credit agreements for eligible individuals and 135 540 businesses was critical to the preservation of quality of life, jobs, businesses and the functioning of the economy.

a) (ii) Loan guarantee scheme

According to the last update on the loan guarantee scheme released by BASA as at 19 June 2021, a total 13 324 loan applications were approved for SMEs within the different turnover bands, with a total rand value of R18.39 billion. The majority of approved applications were submitted by SMEs with a turnover greater or equivalent to R1 million but less than R20 million. The relevant statement is available on the BASA website.

2. This information is not available to National Treasury, as it is bank-specific, and covers financial assistance beyond the loan guarantee scheme. But BASA has indicated (as stated above) that at least 83 per cent of individuals and 95 per cent of businesses that requested help, with personal and home loans, vehicle finance, business mortgages and credit facilities, received assistance. This implies that 17 per cent of individuals and 5 per cent of commercial enterprises, respectively, did not receive financial assistance as a result of their respective credit facilities not being up-to-date in terms of repayments credit agreements.

3. As at 19 June 2021, BASA reports that a total of 28 430 covid19 loan guarantee scheme applications were rejected. Applications were rejected since, inter-alia, they did not meet the eligibility criteria for the scheme, as set out by National Treasury and the South African Reserve Bank, or because they did not meet commercial bank’s risk criteria. In some cases, applications were rejected as a result of outstanding financial records or documentation not submitted; or the loan value requested was either too high, being in excess of the R100 million maximum loan amount requirement, or that the reason for the application was not a COVID-19 related matter/distress.

4. The National Treasury, together with the South African Revenue Service (SARS), the Prudential Authority and The Financial Sector Conduct Authority (FSCA), have taken a number of measures to assist all businesses, using tax and regulatory instruments. The tax measures were outlined in announcements made by the Minister of Finance (see Supplementary Budget Review, page 32), and outlined in parliamentary questions PQ 850, 851, 852, 853, 854 and 869 in 2020. Small businesses (with gross income of up to R100 million) were able to defer a portion of up to 35 per cent of their employees’ tax payments and a portion of up to 35 per cent of their provisional tax payments. Businesses of any size could claim the increased Employment Tax Incentive and were exempt from the Skills Development Levy for 4 months. Companies that still face financial distress can utilise the existing tax administrative measures to apply for hardship relief.

FSCA, in consultation with the National Treasury, also provided further support to businesses and individuals by adjusting regulations to support insurance premium relief for policyholders, allowing them to claim while minimising disruptions to the expected income of intermediaries. In addition, the FSCA advised the boards of trustees for retirement funds and financially distressed employers to consider allowing appropriate relief with regard to retirement contributions.

The National Treasury continues to monitor the impact of the COVID-19 pandemic on the economy and jobs, and recognises the challenges facing both small and large businesses, particularly those in the hardest hit sectors. Existing support measures by the South African Reserve Bank and FSCA, as detailed in the 2021 Budget Review (pages 173-174), will continue, subject to conditions and regulatory mandates. National Treasury, working with relevant stakeholders, continues to explore more appropriate support and risk-sharing mechanisms, including proposals related to non-bank financial institutions and development finance institutions, mindful of the fiscal challenges facing South Africa.

Reply:

Most of the Departments, if not all, Department of Employment and Labour included are governed by Department of Public Service and Administration (DPSA) ICT Governance Policy Framework which guides on overall ICT Governance and Information Security processes that we should follow and implement as the government entity.

There is a committee at DPSA that deals will cyber security related matters called “Standing Committee on Information Systems Security (SCISS)”, as the department, we are standing member of that committee and this is where all other government departments are represented to discuss matters related to information security and cyber-security.

The SCISS has come up with an initiative of departments sharing resources and transferring skills to one another in matters relating to cybersecurity. The initiative is still at the beginning stage where a database of cybersecurity specialists in the public sector is being developed.

Internal Information Security staff have also subscribed with other global threat security intelligent institutions i.e. Microsoft- Security Slate, Centre for internet Security (CSI) and Hackers Choice, where we regularly receive ICT security related awareness’s, newsletters, information on vulnerabilities, viruses and data privacy related breaches that the department should be aware of.