Questions and Replies

Reply:

The South African Revenue Service has submitted the following information. Please note that the Minister is unable to verify the content.

(1)(a)(b) The cost incurred for the mandated work was:

• KPMG – R23, 131, 265.30.

The KPMG investigated the allegations made in respect of an investigative unit within the SARS.

2. An already existing panel was utilised for this purpose that was previously appointed through an open tender process in terms of paragraph 4.9 of the National Treasury Supply Chain Management – A guide for accounting officers/ authorities – February 2004.

The Terms of Reference of the mentioned company was to perform a forensic investigation based on the recommendations of the Sikhakhane report to institute a more detailed investigation and to provide evidential support to the findings made.

Reply:

1. The National Treasury was not approached by any political party for any form of funding (a) in the (i) 2013-14, (ii) 2014-15 and (iii) 2015-16 financial years and (b) since 1 April 2016.

2. The National Treasury has not provided any form of funding to any political party (a) in the (i) 2013-14, (ii) 2014-15 and (iii) 2015-16 financial years and (b) since 1 April 2016.

Reply:

The assessment to determine the costs is underway. A full report which addresses the Honourable Members questions will be submitted to the Constitutional Court within the timelines set by the Court.

Reply:

The details of the reprioritisation of funds in the 2016 Medium-Term Expenditure Framework, subsequent to the aggregates tabled in the 2015 Medium-Term Budget Policy Statement are set out below.

(a)(i) Amounts reprioritised from national departments:

see the link:  http://www.pmg.org.za/files/RNW990Table.docx

1. As part of the reprioritisation exercise, the Department of Energy receives additional funding taken from the local government level: Integrated National Electrification Programme. This results in a net positive reprioritisation of R87.2 million in 2016/17.

(a)(ii) Amounts reprioritised from provinces:

The provincial department-specific impact of the provincial equitable share reprioritisation is determined through separate provincial-own budgetary processes and legislative approval. Thus the details for each province were not known at the time of tabling the 2016 national budget; however the aggregate provincial reprioritisation was. The provincial equitable share reprioritisation per province is shown in the table below.

Provincial equitable share: heres the list: http://www.pmg.org.za/files/RNW990Equitable.docx

The amount reduced from grant allocations to each recipient province was determined by the department that acts as the national transferring officer. The effect of grant reductions on provincial aggregates is shown in the table below and is informed by the respective allocation criteria for each individual grant. Details of allocation criteria are provided in the respective conditional grant frameworks for each grant as contained in 2016 Division of Revenue Bill.

Provincial conditional grants:

 heres the link: http://www.pmg.org.za/files/RNW990Accountable.docx

(a)(iii) Amounts reprioritised from municipalities:

Local government equitable share:

The impact on municipalities of the R1.8 billion in reprioritisation of the local government equitable share over the MTEF is not shown separately per municipality, as many factors influenced these allocations. These are set out in the Explanatory Memorandum to the Division of Revenue (Annexure W1 to the Division of Revenue Bill and the Budget Review). The allocations amount to 26.4 per cent of the local government level reprioritisation and 5.5 per cent of the total reprioritisation over the MTEF.

The changes affecting municipal allocations include data updates to variables in the local government equitable share formula; to account for changes in projected inflation, electricity and water bulk costs and household growth rates. Significant changes also resulted from the decision by the Municipal Demarcation Board to re-determine multiple municipal boundaries, including the merging of several municipalities. All new demarcations are reflected in the 2016 Division of Revenue Bill and therefore allocations for individual municipalities in the 2015 and 2016 Division of Revenue Bills are not directly comparable where demarcations have been changed. The allocations for Special Support for Councilor Remuneration and Ward Committees also changed as a result of the merging of some municipalities.

The amount reduced from grant allocations to each recipient municipality was determined by the department that acts as the transferring officer. The aggregate grant reductions for individual grants are shown in the table below and are informed by the respective allocation criteria for each individual grant. Details of allocation criteria are provided in the respective conditional grant frameworks for each grant as contained in 2016 Division of Revenue Bill.

Local government conditional grants:

here's the link: http://www.pmg.org.za/files/RNW990conditiongrant.docx

(b)(i) &

(b)(ii) The percentage that each amount represents of the funds reprioritised in the sphere of government that it resides in is show in the tables above under (a)(i), (a)(ii) and (a)(iii). These tables above also show the percentage that funds represent of the total amount of reprioritisation over the MTEF.

Reprioritisation at each sphere of government as a percentage of the total:

see the link: http://www.pmg.org.za/files/RNW990reproriasition.docx

Reply:

1. Yes. According to South African Airways, their sponsorships in the financial years (a) 2013-14, (b) 2014-15 and (c) 2015-16 were as following (all these sponsorships were approved in accordance with the company’s delegation of authority requirements and followed an internal approval process which included the approval of a business case):

Sponsorship Property	Right Holder	Value	Period
Springboks	SA Rugby	R22.5m per annum	2013-14
SA Olympic Teams	SASCOC	R6m per annum	2014-15
Springboks	SA Rugby	R22.5m per annum	2014-15
SA Olympic Teams	SASCOC	R6m per annum	2015-16
Springboks	SA Rugby	R22.5 per annun	2015-16
Miss South Africa	Sun International	R594k	2015-16
World Routes	UBM	R1.5m	2015-16
NBA Africa Games	NBA Africa	R1.3m	2015-16
International Jazz Extravaganza	Teacup Projects Proprietary Limited	R1.1m	2015-16

Notes:

• The SA Rugby sponsorship was a four (4) year agreement that ended in on 31 December 2015
• The SASCOC sponsorship is a three (3) year agreement that expires in March 2017
• All other sponsorship listed above with the exception of SA Rugby and SASCOC were agreements reviewed annually
• All SAA sponsorships including the ones listed above, are offered strictly on Value-In-Kind (VIK) basis with no outlay of cash. The sponsored parties are liable for airport taxes.

2. There is no mandatory provisions in the cost containment measures (National Treasury Instruction 01 of 2013/14) prohibiting sponsorships although accounting authorities were required to implement measures to contain operational costs and eliminate all non-essential expenditure. SAA is only required to obtain the Minister’s approval for significant transactions outlined in terms of Section 54(2) of the PFMA.

3. According to SAA, the Bafana Bafana sponsorship is valued at R110m in value in kind over a five (5) year period.

4. The Minister does not intend to make an announcement on this matter as SAA announces and accounts for all its sponsorships.

Nonetheless, prudence is required in exercising financial authority during times of financial constraints.

Reply:

1. South African Airways has indicated that on all destinations they have stopped transporting fire-arms for passengers. Additional information is available on SAA’s webiste at http://www.flysaa.com/za/en/flyingSAA/baggage/firearms.html

2. The Minister does not intend to make an announcement on this matter.

Reply:

The Honourable Member should note that the Municipal Finance Management Act (MFMA) provides in section 32(2) that the Municipal Council must recover all irregular expenditure incurred unless the municipal council has, after an investigation by a council committee, certified the expenditure as irrecoverable and has decided to write it off. The municipal council is the only appropriate authority that should take action in relation to the irregular, unauthorised, fruitless and wasteful expenditure that has been incurred. The overall accountability process for municipal budget and expenditure must take place in a municipality, Provincial and national oversight is ‘distant’ and intervention by the two spheres only warranted as a last resort where local government has collapsed. Therefore, detailed information in this regard is therefore best obtained from the municipality concerned.

The following response is provided based on the disclosures in municipal audited annual financial statements, monitoring reports submitted by the municipality and engagements during mid-year meetings with municipal officials. The Honourable Member should also note that National Treasury has recently introduced consequence management measures that were elaborated on in MFMA Circular 76 issued in October 2015. This provided practical information on how municipalities should address such matters. It must therefore be understood within the context of the phased-in approach to implementation; hence, please noted that further actions may have been taken since these engagements with municipalities which are not reflected in this response as they are subject to ongoing monitoring and reporting.

(a) Irregular expenditure relates to categories of expenditure incurred in contravention of or not in accordance with the MFMA, Municipal Systems Act, Public Office-Bearers Act, and Supply Chain Management policy. These are listed below for metropolitan municipalities:

Buffalo City incurred R1.8 billion irregular expenditure of which none was condoned. No information was reported on amounts to be recovered, although MPAC was tasked with the responsibility to investigate such matters. During mid-year engagements the municipality advised that 8 employees were dismissed, however, no information was provided on write-offs or recovery.

City of Cape Town incurred R1 million irregular expenditure of which R85 000 was condoned. Disciplinary procedures were in place. A forensic unit was established to investigate allegations; however, no information was available on write-offs or recovery.

Ekurhuleni incurred R794 million of irregular expenditure of which R32 million was condoned; however, the majority of the cases were still under investigation by MPAC and other organs of state. In instances where MPAC had concluded investigations, these were reported to council for condonement. Section 32 processes will be used to follow up on recoveries.

eThekwini incurred R500 000 of irregular expenditure of which R400 000 was condoned. The municipality advised that it is addressing this matter in terms of the legislated processes.

City of Johannesburg incurred R1.5 billion of irregular expenditure of which R4 million was condoned. 83 cases are being investigated and 10 have been completed. The municipality has implemented measures to recover money. For example, when an employee resigns before the disciplinary case has been completed, the municipality withholds the employees pension payout. No information was available on write-offs and recoveries.

Mangaung incurred R289 million of irregular expenditure of which none was condoned. A special adjustments budget in terms of Section 32 was passed. No information was available on write-offs and recoveries.

Nelson Mandela Bay incurred R2.1 billion of irregular expenditure of which R12 million was condoned. Investigations are being conducted by Internal Audit and reports are tabled at MPAC from time to time, for recommendations and follow-up actions, including those instances where amounts are write-off and recoveries instituted. No further details were available.

City of Tshwane incurred R1.6 billion of irregular expenditure of which R28 million was condoned. A number of cases are currently under investigation. No information was available on write-offs and recoverable.

(b) Unauthorised expenditure means any expenditure incurred by a municipality otherwise than in accordance with section 15 or 11(3) of MFMA and includes overspending of total amount appropriated in the municipality’s approved budget or overspending of the total amount appropriated for a vote in the approved budget or expenditure from a vote unrelated to the department or functional area covered by the vote or expenditure of money appropriated for a specific purpose, otherwise than for that specific purpose or spending that is inconsistent with any conditional allocation, amongst others. These are listed below for metropolitan municipalities:

Buffalo City incurred R432 million of unauthorised expenditure of which none was authorised through a special adjustment budget in terms of section 28 of the MFMA read with regulation 23(6) of the Municipal Budget and Reporting Regulations. No information was available on any recoveries. However, a report was submitted to MPAC for investigation and recommendation.

City of Cape Town had reported no unauthorised expenditure.

Ekurhuleni had reported no unauthorised expenditure.

eThekwini had reported no unauthorised expenditure.

City of Johannesburg incurred R2.7 billion of unauthorised expenditure. No information was provided on amounts authorised through an adjustment budget in terms of section 28 of the MFMA read with regulation 23(6) of the Municipal Budget and Reporting Regulations, or on amounts recovered.

Mangaung incurred R2.1 billion of unauthorised expenditure. A special adjustments budget in terms of Section 28 of the MFMA read with regulations 23(6) of the Municipal Budget and Reporting Regulations was passed by council. No information was available on recoveries.

Nelson Mandela Bay incurred R780 million of unauthorised expenditure, of which R623 million was authorised through a special adjustment budget. No information was available on recoveries.

City of Tshwane incurred R2 billion of unauthorised expenditure, of which R1.2 billion was authorised through an adjustment budget. A report was tabled in Council to address accounting-related transactions, such as over-expenditure relating to provision for depreciation, loss on disposal of assets, finance charges and debt impairment.

(c) Fruitless and Wasteful Expenditure relates to expenditure incurred that could have been avoided had reasonable care been exercised. These are listed below for metropolitan municipalities:

Buffalo City incurred R5 million of fruitless and wasteful expenditure. No expenditure was condoned and no information was available on write-offs or recoveries. However, a report was submitted to MPAC for investigation and recommendations.

City of Cape Town incurred R440 00 of fruitless and wasteful expenditure, of which none was condoned; however, R146 000 was recovered. The municipality is in the process of condoning the outstanding amounts.

Ekurhuleni incurred R181 million of fruitless and wasteful expenditure, of which R1.2 million was condoned. These have been referred to MPAC and other organs of state for investigation.

eThekwini had reported no fruitless and wasteful expenditure.

City of Johannesburg incurred R20 million fruitless and wasteful expenditure of which R23 000 was condoned, and R361 000 was still to be recovered. The remainder is subject to the outcome of further investigations.

Mangaung incurred R29 million of fruitless and wasteful expenditure. A special adjustments budget in terms of Section 32 was passed by council. No information was available on condoned amounts, write-offs or recoveries.

Nelson Mandela Bay incurred R551 million of fruitless and wasteful expenditure of which R226 000 was condoned. MPAC are still investigating. No confirmation of outcomes was received with regard to write-offs or recoveries.

City of Tshwane incurred R19 million of fruitless and wasteful expenditure of which R513 000 was condoned. A number of cases are still under investigation. No confirmation of outcomes were received on write-offs or recoveries.

Reply:

The short answer is that the Financial Intelligence Centre (FIC) is not an “investigating authority”, and is therefore not mandated to undertake nor conduct investigations to gather evidence to prove criminal conduct in a prosecution.

Legal provisions in the Financial Intelligence Centre Act, Act No 38 of 2001 (the FIC Act), prevent the FIC from disclosing any information on what matters the FIC may be working on or not.

In particular, the FIC Act contains strict limitations to protect the confidentiality of reporters, on the disclosure of information reported to it, information at its disposal and of details of its activities concerning such information (section 29 read with section 53, and sections 40 and 41 read with section 60, of the FIC Act).

The FIC is therefore not able to provide the information requested.

The way the Honourable Member has phrased this Question 1247, reflects certain misunderstandings of the FIC Act and how the FIC is called upon to lawfully administer the FIC Act, which I need to clarify, and do so below, to ensure the Honourable Member is better informed.

The FIC Act requires designated financial and other institutions to establish and verify the identities of their customers, and maintain related records of their customers and their transactions. The FIC Act also requires designated institutions to report certain information, such as large cash transactions (R25 000 and above) and suspicious and unusual transactions to the FIC. Importantly, an institution which reports a suspicious or unusual transaction to the FIC may continue with the reported transaction(s) unless instructed by the FIC not to do so.

The FIC Act currently does not require a financial institution to pay special attention to any category of customers. The FIC Act also does not contain any provisions which require financial institutions to apply a risk-based approach to the manner in which they manage customer relationships. In this respect the FIC Act is not in line with current international standards on measures to combat money laundering and terrorist financing (the Recommendations of the Financial Action Task Force (the FATF)).

These FATF standards require, among others, that financial institutions understand the risks associated with different business relationships and apply enhanced due diligence where they perceive higher risk of money laundering or terrorist financing. Enhanced due diligence implies more diligent identification and verification measures and stricter monitoring of customers’ transaction activities.

Parliament is currently considering amendments to the FIC Act to give effect to the requirements of the international standards. These requirements include the application by financial institutions of a risk-based approach to customer due diligence and applying additional due diligence to PEPs (described in the amendments as Persons in Prominent Positions).

I re-affirm that the FIC does not itself undertake “investigations” with a view to gather evidence to prove criminal conduct in a prosecution.

Instead, the FIC analyses information reported to it and at its disposal, and supplies financial intelligence on financial transactions of reported persons or entities, but not evidence, to competent authorities, such as investigating law enforcement authorities, statutory supervisory bodies and state security agencies, to facilitate the administration and enforcement of the laws of the Republic.

These competent authorities, as lawful recipients of FIC issued financial intelligence, in turn undertake independent criminal investigations, supervisory inspections, or other actions, respectively, within their respective legal mandates.

Accordingly, the sharing of information by the FIC with other competent authorities enables them to better discharge their respective responsibilities in the administration of the criminal justice system, the financial and non-financial sector regulatory systems, and the protection of national security, in the Republic.

The FIC Act contains strict limitations on the disclosure by the FIC of information at its disposal. This also applies to disclosure by the FIC of details of its activities concerning such information. Section 29(4) of the FIC Act provides that:

“No person who knows or suspects that a report has been or is to be made in terms of this section may disclose that knowledge or suspicion or any information regarding the contents or suspected contents of any such report to any other person, including the person in respect of whom the report is or is to be made, otherwise than-

(a) within the scope of that person’s powers and duties in terms of any legislation;

(b) for the purpose of carrying out the provisions of this Act;

(c) for the purpose of legal proceedings, including any proceedings before a judge in chambers; or

(d) in terms of an order of court.”

Contravention of this provision is an offence punishable by imprisonment for 15 years or to a fine not exceeding R100 million under section 53 read with section 68 of the FIC Act.

Moreover, section 40(1) of the FIC Act restricts the FIC to disclosing information under its control:

“(a) to an investigating authority inside the Republic, the South African Revenue Service and the intelligence services, which may be provided with such information-

(i) on the written authority of an authorised officer if the authorised officer reasonably believes such information is required to investigate suspected unlawful activity; or

(ii) at the initiative of the Centre, if the Centre reasonably believes such information is required to investigate suspected unlawful activity;

(b) to an entity outside the Republic performing similar functions to those of the Centre, or an investigating authority outside the Republic which may, at the initiative of the Centre or on written request, obtain information which the Centre reasonably believes is relevant to the identification of the proceeds of unlawful activities or the combating of money laundering or financing of terrorist and related activities or similar offences in the country in which that entity is established;

(c) to an accountable institution or reporting institution which or any other person who may, at the initiative of the Centre or on written request, be provided with information regarding the steps taken by the Centre in connection with transactions reported by such accountable institution, reporting institution or person, unless the Centre reasonably believes that disclosure to such accountable institution, reporting institution or person of the information requested could-

(i) inhibit the achievement of the Centre’s objectives or the performance of its functions, or the achievement of the objectives or the performance of the functions of another organ of state; or

(ii) prejudice the rights of any person;

(d) to a supervisory body, which may at the initiative of the Centre or on written request be provided with information which the Centre reasonably believes is relevant to the exercise by that supervisory body of its powers or performance by it of its functions in relation to an accountable institution

(e) in terms of an order of a court; or

(f) in terms of other national legislation.”

In terms of section 41 of the FIC Act:

“No person may disclose confidential information held by or obtained from the Centre except-

(a) within the scope of that person’s powers and duties in terms of any legislation;

(b) for the purpose of carrying out the provisions of this Act;

(c) with the permission of the Centre;

(d) for the purpose of legal proceedings, including any proceedings before a judge in chambers; or

(e) in terms of an order of court.”

Contravention of these two provisions (sections 40 and 41) is an offence and punishable by imprisonment for 15 years or to a fine not exceeding R100 million under section 60 read with section 68 of the FIC Act.

Confirmation or denial by the FIC in the public domain on whether the FIC has received or disclosed any information relating to a particular person or entity to another competent authority, or taken any other action related to such information would amount to a contravention of the above-mentioned provisions of the FIC Act and is therefore not legally permissible.

Moreover, since the FIC’s mandate requires it to assist and work in collaboration with other competent authorities in any given criminal investigation or supervisory inspection or action, any public disclosure of information relating to a specific person or entity who may be the subject of an investigation, supervisory inspection, or details of an operation being conducted by such competent authorities,. It would therefore be irresponsible for the FIC to comment in public on operational matters in which the FIC may or may not be involved. is likely to have a serious detrimental impact on the investigation, inspection or operation.

In conclusion, as Minister of Finance I therefore cannot confirm or deny whether the FIC has information relating to the specific persons or entities previously mentioned at its disposal, nor whether the FIC has or has not made information available to law enforcement authorities in support of investigations of allegations of money laundering against the specific persons or entities.

Reply:

Yes. The provincial equitable share formula is reviewed and updated annually with new data, where available. Periodic reviews of the formula are also undertaken.

The provincial share of nationally raised revenue is disbursed to provinces using the Provincial Equitable Share (PES) formula. The formula comprises of six components, of which health is one of them, weighted at 27 per cent.

The structure of the health component in the provincial equitable share was amended through a review undertaken in 2010/11. The revised health component, introduced from 2011/12, uses a risk-adjusted capitation index and output data from public hospitals to estimate each province’s share of the health component. These two subcomponents work together to balance the needs (risk-adjusted capitation) and demands (output component). Caseload data in the health component, which measures demand on the ground, changes from year to year and is updated every year with data from the national Department of Health’s Information System. However, the epidemiological landscape that drives the risk profile of a population in a province is unlikely to change from year to year and this subcomponent of the health component is updated on a 4 to 5 years interval cycle.

A review of the provincial equitable share formula is currently underway that will, amongst others, assess all data sources available for each of the components of the formula, including the health component. The outcomes of this review will be implemented in future medium term expenditure frameworks (MTEFs).

(i) Not applicable.

(ii) With respect to the health component, yearly data updates were applied for (a) 2013/14, (b) 2014/15 and (c) 2015/16 as follows:

• 2013/14

          The health component for 2013/14 was updated with the 2011 General Household Survey, 2012 mid-year population estimates, data from the Council for Medical Schemes’ Risk Equalisation Fund, and District Health Information Services data for 2010/11 and 2011/12. The details of such updates are contained in pages 77 to 79 of the 2013 Division of Revenue Bill.

• 2014/15

        The health component for 2014/15 was updated with the 2012 General Household Survey, 2013 mid-year population estimates, data from the    Council for Medical Schemes’ Risk Equalisation Fund, and District Health Information Services data for 2011/12 and 2012/13. The details of such updates are contained in pages 77 to 78 of the 2014 Division of Revenue Bill.

• 2015/16

         The health component for 2015/16 was updated with the 2013 General Household Survey, 2014 mid-year population estimates, data from the Council for Medical Schemes’ Risk Equalisation Fund, and District Health Information Services data for 2012/13 and 2013/14. The details of such updates are contained in pages 79 to 80 of the 2015 Division of Revenue Bill.

Reply:

The South African Revenue Service has submitted the following information.  Please note that the Minister is unable to verify the content.

1.The cost incurred for the mandated work was:

• Gartner:
  • • • Total Order: R157,442,590.00 (including contingencies of 10%)
      • Paid to date: R60, 555, 640.00

2. No, an open tender was not followed for continuity, the Project was in two phases,

    (a) in phase 1(diagnostic) of the project, the Gartner services were procured on the basis of an agreement for IT Consultancy services between SITA and Gartner.

   (b) In phase 2 of the project, the services of Gartner were procured in terms of National Treasury regulation 16A6.4 read together with paragraph 10.5.2 of the Supply Chain Management practice note number 3/ 2003 for continuity purposes.

Reply:

The South African Revenue Service has submitted the following information.  Please note that the Minister is unable to verify the content.

(1) Due to the secrecy provisions contained in Section 69 of the Tax Administration Act No. 28 of 2011, SARS is prohibited from disclosing any taxpayer information (Including whether or not a taxpayer is subject to an audit/ investigation) to any person other than a SARS official.

(2) In terms of Procurement processes SARS is guided by the PFMA and the Treasury Regulations. These requirements form the framework and basis of all practices and processes relating to procurement within the organisation.

Reply:

The South African Revenue Service has submitted the following information.  Please note that the Minister is unable to verify the content.

1. The South African Revenue Service did employ consulting firms to advise on the SARS restructuring. These were Bain Consulting and Gartner Ltd.

      (a) These were Bain Consulting and

           (i) Total order = R155,125,728.00 (including contingency claims of 10% so far only R700 000 has been claimed). Paid to date R = R103,609.629.40

      (b) Gartner Ltd.

           (ii) Total order = R157,442,590.00 (including contingencies of 10%). Paid to date = R60,555,640.00

2. The total contracted figure is R312,569,318.00

Contracts with service providers were concluded based on fixed amounts for services to be rendered. That being said, the overall cost of the restructuring of SARS cannot be estimated at this point in time as the process is still underway.

Reply:

(1a) The Minister and four delegates from the National Treasury attended WEF Davos in 2016. National Treasury is the appointed coordinator of the government wide delegation to WEF Davos and so two of these officials attended in this capacity.

(1b) (i&ii) Ministerial delegation:

Minister Gordhan – Minister of Finance

Monale Ratsoma – Deputy Director-General: Economic Policy

Busi Sokhulu – Personal Assistant: Office of the Minister of Finance

WEF Coordinators:

Ofentse Lekwape – Assistant Director: International and Regional Economic Policy

Rebecca Murdoch – Deputy Director: International and Regional Economic Policy

(2a) None of the persons specified were required to pay fees to attend the conference, with the exception of a EUR50 fee for access badges for three of the delegates (see table 1).

(2b) The total cost of the five National Treasury delegates that travelled to WEF Davos was R549 383.72. A breakdown of these costs is in Table 1.

Table 1: Breakdown of costs for WEF

	(i) conference fees1	(ii) accommodation	(iii) subsistence	(iv) travel costs2
Minister Gordhan	0	R40 145	R7 983	R66 217
Busi Sokhulu	R850	R73 900	R7 579	R29 963.72
Monale Ratsoma	0	R38 484	R10 428	R63 670
Ofentse Lekwape3	0	R74 680	R23 386	R26 786
Rebecca Murdoch3	R850	R74 680	R23 386	R26 786
TOTAL	R1 700	R301 889	R62 334	R183 459.72

1 Fee for access badges (EUR50).

2 Travel costs consist mainly of flights as National Treasury delegates used the complimentary WEF vehicles and shuttles to travel in and around Davos. VIP airport lounge services for Minister Gordhan, Ms Sokhulu; Mr Ratsoma are included in ‘travel costs’.

3 Mr Lekwape and Ms Murdoch were required to travel ahead of the conference as they were responsible for the coordination of the government delegation to WEF which accounts for their higher accommodation and subsistence costs.

(3) Not applicable: there were no additional members attending WEF from the National Treasury.

(4) No family members

Reply:

The total decrease in Asset Under Management (AuM) over the period 08 December 2015 to 12 December 2015 amounted to R99 107 867 476, 76. Table 1 below provides detailed information as per requested institution.

 

Table 1: AuM per institution

GOVERNMENT EMPLOYEE PENSION FUND
Start date	End date	End Market Value (Rands)	Change in Rands	Change in Percentage
2015/12/08	2015/12/09	1 578 842 958 575,68
2015/12/09	2015/12/10	1 533 030 433 903,16	-45 812 524 672,52	-0,03
2015/12/10	2015/12/11	1 492 840 656 310,47	-40 189 777 592,69	-0,03
2015/12/11	2015/12/12	1 492 952 420 399,11	111 764 088,64	0,00
2015/12/12	2015/12/13	1 492 954 477 051,57	2 056 652,46	0,00
UNEMPLOYMENT INSURANCE FUND
Start date	End date	End Market Value(Rands)	Change in Rands	Change in Percentage
2015/12/08	2015/12/09	118 539 328 931,11
2015/12/09	2015/12/10	113 622 850 706,82	-4 916 478 224,29	-0,04
2015/12/10	2015/12/11	110 538 549 728,88	-3 084 300 977,94	-0,03
2015/12/11	2015/12/12	110 553 868 800,92	15 319 072,04	0,00
2015/12/12	2015/12/13	110 555 818 779,42	1 949 978,50	0,00
COMPENSATION COMMISSIONER FUND
Start date	End date	End Market Value(Rands)	Change in Rands	Change in Percentage
2015/12/08	2015/12/09	34 722 690 994,32
2015/12/09	2015/12/10	32 550 500 181,82	-2 172 190 812,50	-0,06
2015/12/10	2015/12/11	31 615 296 174,48	-935 204 007,34	-0,03
2015/12/11	2015/12/12	31 627 883 140,02	12 586 965,54	0,00
2015/12/12	2015/12/13	31 628 048 616,55	165 476,53	0,00
COMPENSATION COMMISSIONERS PENSION FUND
Start date	End date	End Market Value(Rands)	Change in Rands	Change in Percentage
2015/12/08	2015/12/09	16 943 272 754,78
2015/12/09	2015/12/10	16 271 781 984,86	-671 490 769,92	-0,04
2015/12/10	2015/12/11	15 809 698 426,57	-462 083 558,29	-0,03
2015/12/11	2015/12/12	15 811 843 053,26	2 144 626,69	0,00
2015/12/12	2015/12/13	15 812 007 764,12	164 710,86	0,00
ASSOCIATED INSTITUTION PENSION FUND
Start date	End date	End Market Value(Rands)	Change in Rands	Change in Percentage
2015/12/08	2015/12/09	14 106 965 858,19
2015/12/09	2015/12/10	13 361 805 139,24	-745 160 718,95	-0,05
2015/12/10	2015/12/11	13 055 814 127,87	-305 991 011,37	-0,02
2015/12/11	2015/12/12	13 059 366 371,64	3 552 243,77	0,00
2015/12/12	2015/12/13	13 059 853 104,81	486 733,17	0,00
PIC FUNDS UNDER MANAGEMENT
Start date	End date	End Market Value(Rands)	Change in Rands	Change in Percentage
2015/12/08	2015/12/09	1 791 426 488 177,86
2015/12/09	2015/12/10	1 737 191 207 615,39	-54 235 280 562,47	-0,03
2015/12/10	2015/12/11	1 692 157 213 606,73	-45 033 994 008,66	-0,03
2015/12/11	2015/12/12	1 692 309 150 164,43	151 936 557,70	0,00
2015/12/12	2015/12/13	1 692 318 620 701,10	9 470 536,67	0,00

Reply:

The reductions of R10 billion in 2017/18 and R15 billion in 2018/19 were effected on compensation budgets at the national and provincial levels of government. These were allocated based on the proportion of non-occupational specific dispensation (OSD) positions in a department. This ensures that the impact on service delivery is minimised, as the bulk of the reductions will apply to managerial and administrative staff. Of these amounts, national departments carried 53 per cent of the cuts and provincial governments carried 47 per cent, based on the proportions on non-OSD staff at both levels. Provincial reductions were effected through the provincial equitable share (PES).

Table 1: Summary of expenditure cuts at the national level

Table 2: Summary of expenditure cuts at the provincial level

Reply:

1.Yes, concrete actions are being undertaken.

South Africa needs to achieve higher levels of inclusive growth that raises employment, reduces inequality and eliminates poverty. Higher growth is also critical to help maintain South Africa’s investment grade rating.

The National Development Plan is the framework followed by all government departments to address structural constraints in the economy and achieve higher growth. The 2016 Budget Review outlines actions taken to promote private investment, address infrastructure bottlenecks, labour relations, improving policy certainty and coordination and on improving the ease of doing business (pg 25 – 27).

To further support efforts and implementation to foster higher economic growth, the president tasked the Ministry of Finance and Mr Jabu Mabuza to lead coordination with business, government and labour. Work from various work streams has focused on:

1. preserving South Africa’s sovereign credit rating, which include joint roadshows to present a united front to rating agencies and international community, recommendations on reducing policy uncertainty and necessary fiscal and economic reforms.
2. finding opportunities for co-investment, such as the launch of the SME Fund announced on 9 May, and
3. resolving blockages in key sectors which can accelerate growth and investment, with ongoing task teams working within agriculture and tourism.

2. Monitoring progress is critical to ensure we are on the right path. Demonstrating concrete progress on our stated commitments to reform state owned companies, to catalyse growth and to maintain sound public finances is critical not only for ratings agencies, but for confidence in South Africa more broadly.

Government’s progress in implementing the NDP is monitored through the medium-term strategic framework (MTSF), which provides detailed reporting on individual programmes, including targets, timelines, and indicators to measure performance and the Minister/s responsible for each outcome. The process is managed and monitored by the Department of Planning, Monitoring and Evaluation.

Reply:

The National Treasury is not aware of any senior officials from the level of Director-General downwards to have met with the persons mentioned in the Parliamentary question during the period 1 January 2009 up to 31 December 2015.

Reply:

The details that the Deputy Minister made public is contained in the media statement released on the 16 March 2016. Please see the media statement attached. The Deputy Minister advises that he is obtaining further legal advice on the matter.

Reply:

The details that the Deputy Minister made public is contained in the media statement released on the 16 March 2016. Please see the media statement attached. The Deputy Minister advises that he is obtaining further legal advice on the matter.

Reply:

The details that the Deputy Minister made public is contained in the media statement released on the 16 March 2016. Please see the media statement attached. The Deputy Minister advises that he is obtaining further legal advice on the matter.

Reply:

The South African Revenue Service has submitted the following information.  Please note that the Minister is unable to verify the content.

1. The cost incurred for the mandated work was:

• Bain Consulting:
  • • • Total Order: R155,125,728.00 (including contingency claims of 10% so far only R700 000 has been claimed).
      • Paid to date: R103, 609, 629.40

2. No, SARS used an already existing panel that was previously appointed through an open tender process in terms of paragraph 4.9 of the National Treasury Supply Chain Management – A guide for accounting officers/ authorities – February 2004. SARS further ran a close tender process within the panel which resulted in Bain being the successful bidder.

Reply:

1. The Honourable Member should note that this question should be referred to the relevant municipality or sourced from their Budget documents or annual reports (including audited financial statements). Only a municipality can verify such information.

The National Treasury collects budget, financial and other information as a consolidated resource center for the public but cannot verify the information. The National Treasury publishes annually by November the Budgets of all municipalities in terms of Section 17 of MFMA. In addition, the National Treasury also publishes detailed quarterly reports submitted by all municipalities as per the Section 71 of the MFMA. The latest publication available for the 2015/16 municipal financial year can be found on our website. The accuracy of the reports can only be confirmed by the respective municipality. The quarterly reports have been available since 2006/07 on the National Treasury Website.

http://mfma.treasury.gov.za/Media_Releases/s71/Pages/default.aspx

I refer the Honourable Member to the page or table in the latest report published on 4 March 2016 as follows:

  (a) Cash-on-hand

See Part 3 of the 2-page summary per municipality

OR

Refer to the cash flow summary on C7 in the Municipal Budget and Reporting Regulation (MBRR) formats.

 (b) Debtor’s analysis

See Part 4 of the 2-page summary per municipality

(c) Collection rate

Refer to the high level summary on C1 in the Municipal Budget and Reporting Regulation (MBRR) formats.

(d) Operation revenue and expenditure

See Part 1 of the 2-page summary per municipality

OR

Refer to the Statement of financial performance on C4 in the Municipal Budget and Reporting Regulation (MBRR) formats.

(e) Creditor’s analysis

See Part 5 of the 2-page summary per municipality

2. In terms of the information required regarding Capital grants, refer to the conditional grant summaries per municipality as well as the Summary per program / grant.

AND

Part 2 of the 2-page summary per municipality.

3. The National Treasury is not in a position to confirm whether Makana municipality spent its capital grant for operational purposes, reason being our reporting system does not provide detail to that level. However, the national department responsible for administering of the capital grant would be in a better position to provide required detail. It should be noted however, that Makana Municipality is allowed by law (DoRA) to use a portion of capital grant allocation for operational purposes within the threshold prescribed by the national department responsible for the grant.

As noted in the 2015 Division of Revenue Act, Makana municipality received one capital grant being Municipal Infrastructure Grant (MIG) administered by the department of Corporative Governance. The MIG provides that municipalities can use a maximum of 5% of the grant allocation for operational purposes.

Reply:

(a) 12,097 businesses have received funding through the Jobs Fund projects.

(b) i. 11,930 are black-owned (98.6%).

     ii. R973,350,117 is the total value of funding to these black-owned businesses.

Reply:

Between 2008/09 and 2011/12, compensation and goods and services budgets grew in real terms by 8.4 per cent and 5.1 per cent respectively. After the introduction of the expenditure ceiling in 2012, real spending on compensation of employees averaged 2.5 per cent over the period 2012/13 – 2015/16 and is projected to fall to 1.1 per cent real growth over the 2016 MTEF. Goods and services spending has also been sharply reduced, with non-essential items such as travel, subsistence, catering and entertainment declining in real terms. Over the 2016 MTEF, total goods and services spending is projected to grow at 0.6 per cent in real terms.

As a share of total consolidated spending, compensation has declined from 36.1 per cent to 35.3 per cent between 2012/13 and 2014/15. Goods and services spend has declined from 17.1 per cent to 16.8 per cent over the same period. From 2016/17 onwards, government will close its current deficit – the difference between current revenue and spending on compensation, goods and services, interest, and current transfers and subsidies. The resultant savings are expected to reach 1.7 per cent of GDP in 2018/19, equivalent to 44 per cent of government’s budgeted capital spending.

Project name	Date	Contract duration	Project value (R billion)
Statistics South Africa Head Office Accommodation PPP project	April 2014	25 years	10.3
Independent Power Producer’s Programme 3rd window submission	December 2014	20 years	26*
Municpal capital expenditure funded through borrowings	2014/15 financial year	-	9.4
Municpal capital expenditure funded through borrowings	2015/16 financial year	-	12.1**
Total			57.8

NB: Most State Owned Companies finance their Infrastructure programmes from their own revenue and borrowings backed by government guarantees and they are excluded from a list of the above mentioned projects.

* PThe programmeis funded by private sector capital raised from financial institutions. The private sector takes the risk associated with the completion of the project and it in turn benefits from unitary payments made by Eskom/government over the duration of the project.

**Planned borrowings for the entire year ending in June 2016.

The table above shows some of the projects where the private sector has provided financing. Some are PPP projects whereas others are municipal projects.

• Government is also stepping up its work with municipalities, in partnership with the private sector. A series of transformative projects valued at over R128 billion has been identified for potential investment in large cities, supported by a project preparation facility at the Development Bank of Southern Africa (DBSA). To broaden funding streams, city governments will focus on improving their systems for revenue collection, expenditure management and land-use zoning.

• Cornubia, a mixed-income commercial and residential development in eThekwini, is under construction. A total of 28 500 housing units, 18 clusters of community facilities and 2.3 million square metres of commercial floor space are planned. The city has also developed a densification plan to complement commuter rail modernisation between Umlazi and Bridge City. Private-sector contributions will amount to R15.4 billion of the total development cost of R25.8 billion.

• In 2013, the DBSA completed a successful restructuring. Over the medium term, government expects the DBSA to help develop South Africa’s municipal debt market as part of broader efforts to reshape the urban landscape. New initiatives will leverage private-sector investment to complement the DBSA’s own loan disbursements, which total R17.8 billion over the next three years.

• The NHFC disbursed R675 million in loans for affordable housing development, and leveraged R2.2 billion in co-financing from the private sector to support these projects.

Reply:

The loan agreement that was concluded between the Minister of Finance and Eskom, as required in terms of the Eskom Subordinated Loan Special Appropriation Act (2008/09-2010/11 Financial Years), provided for the loan to be repaid over a 30-year period. Consequently, there was no requirement for Eskom to have repaid any portion of the loan as yet.

The loan agreement also provided for a market-related interest rate to be payable, but, taking into account the medium-term impact of Eskom’s capital investment plan on Eskom’s balance sheet as required in the Act, the interest was only payable in those financial years where Eskom’s financial results reflected both a leverage ratio of better than 12.5% and an interest multiple above 2.5 times. Both ratios were to be calculated after considering any interest that would be payable on the loan. These provisions enabled the appropriated funding to strengthen Eskom’s balance sheet in a way that would be similar to, although not exactly the same as, equity.

As a result of Eskom’s weak financial position, at no point since the inception of the loan have both of the ratios been above the set thresholds and hence no interest was payable. Moreover, forward projections indicate that Eskom’s financial position is expected to remain weak for some time and that it was unlikely that the company would be required to pay interest on the loan over that period. Specifically, Eskom’s 2016 Corporate Plan indicates that the company anticipates that some key credit metrics will only reach the targetted levels by around 2026.

Moreover, the weak financial position resulted in Eskom credit rating being downgraded to sub-investment grade; reducing access and increasing the cost of funding resulting in the utility having to rely more heavily on the government guarantees. The conversion to equity of the subordinated loan through the replacement of the Eskom Subordinated Loan Special Appropriation Act (2008/09-2010/11 Financial Years) with the Eskom Special Appropriation Act (2008/09-2010/11 Financial Years), 2008 as well as the allocation of a further R23 billion in equity through the Eskom Special Appropriation Act, 2015 served to improve Eskom’s financial position thereby better enabling the company to stablise electricity supply, undertake required maintenance and complete the build programme.

Reply:

The following information is provided by South African Revenue Service (SARS):

1. (a)(b)
   Yes, the South African Revenue Service is mandated and as such do perform Enforcement and Criminal Investigations.

(i)(aa)(bb)(aaa)(bbb)

Within the current SARS structure there are Group Executives responsible for the investigative capacity. These Group Executives report directly to respective Chief Officers.

(ii)(aa)(bb)(aaa)(bbb)(aaaa)(bbbb)

There are currently 1599 Enforcement Auditors who conduct enforcement investigations, and 381 Criminal investigators. They range from junior investigators to Senior Specialist investigators.  Unfortunately we cannot provide names of these officials for their safety due to the nature of their work.

(2)(a)(b)

In terms of the SARS Act no. 34 of 1997 the South African Revenue Service is legally mandated and authorised to conduct Enforcement Investigations (investigative audits) and Criminal Investigations in pursuit of its mandate to collect all moneys due to the fiscus and to combat non-compliance and tax evasion. Moreover, the SARS Act makes the Commissioner, as chief executive officer, responsible in particular for the formation and development of an efficient administration and the effective deployment and utilisation of staff to achieve maximum operational results.

Furthermore in terms of the Tax Administration Act no. 28 of 2011 under Chapter 5, Part A and B, SARS is mandated to perform such investigations.

Reply:

The following information is provided by South African Revenue Service (SARS) and cannot be verified by the Minister:

It is not within the SARS mandate to administer such activities directly.

(a)(b)(i)(ii)(aa)(bb)(cc) With the information at SARS disposal no such requests were made or approved either directly by SARS or indirectly through a third party.

Reply:

(1) Sections 51, 52, 53 and 54 of the Financial Management Parliament and Provincial Legislatures Act, 2009 (Act No. 10 of 2009), as amended (herein called “the Act”), took effect on 19 April 2009. The Act was amended by the Financial Management of Parliament Amendment Act, 2014 (Act No. 34 of 2014), which took effect on 1 April 2015. The mentioned sections of the Act were not amended by Act No. 34 of 2014.

(2) The Act does not confer authority on the National Treasury to grant exemptions from compliance with any of its provisions to Parliament. The National Treasury is not seized with the administration of the Act and ensuring compliance with its provisions. Sections 51 to 53 of the Act impose obligations on the Accounting Officer of Parliament, i.e. the Secretary to Parliament, while section 54 of the Act imposes obligations on the Executing Authority of Parliament, i.e. the presiding officers of the National Assembly and the National Council of Provinces, acting jointly, and also on Parliament. The oversight mechanism envisaged in section 4 of the Act is tasked with maintaining oversight of the financial management of Parliament.

 

Reply:

1. Yes, the Minister requested the SARS Commissioner to discontinue the restructuring of SARS operational restructuring to enable him to review and consult with the team on the matter.
2. The National Treasury does not have an oversight role of SARS.

Reply:

1. Yes, Minister Gordhan attended formal WEF meetings. He also attended a number of bilateral meetings with his international counterparts, prominent economists and business people to discuss challenges facing the South African economy and steps being taken by government to build confidence.

    (a) Minister Gordhan attended seven formal meetings. They were:

    (b) (1) South Africa Briefing

A round table discussion with South African Investors, civil society and heads of corporate South Africa.

(2) South Africa Issue Briefing: South Africa’s Economic Outlook

Televised one-on-one session with Minister Gordhan on South Africa’s Economy moderated by Oliver Cann; attended by local and international media. The following is a link to the interview: http://www.weforum.org/events/world-economic-forum-annual-meeting-2016

(3) Press Conference: How can we finance the Sustainable Development Goals?

Other Speakers: 

• Georg Schmitt, 
• Chrystia Freeland, 
• Bertrand Badre

See: https://webcasts.weforum.org/widget/1/davos2016?p=1&pi=1&ms=1&th=2&s=w

(4) Productivity growth slowdown in the age of the fourth industrial revolution.

A round table discussion with the following experts:

• Alicia Bárcena Ibarra, Executive Secretary, United Nations Economic Commission for Latin America and the Caribbean (ECLAC), Santiago
• Douglas W. Elmendorf, Dean, Harvard Kennedy School, Harvard University, USA
• Ian Goldin, Professor of Globalization and Development, and Director, Oxford Martin School, University of Oxford, United Kingdom
• Edmund S. Phelps, Director, The Center on Capitalism and Society, Columbia University, USA Nouriel Roubini, Professor of Economics and International Business, Leonard N. Stern School of Business, New York University, USA
• Xavier Sala-i-Martin, Professor of Economics, Columbia University, USA
• Bruno Sánchez-Andrade Nuño, Data Scientist, Innovation Labs, World Bank, Washington DC
• Arun Sundararajan, Professor of Business; Rosen Faculty Fellow, New York University, USA
• Rodrigo Valdés Pulido, Minister of Finance of Chile

(5) Business Interaction Group on South Africa

A closed session in which Government briefed South African Business and International Investors on the South African economy; followed by a question and answer session. Government was represented by the President, and Ministers Gordhan, Davies, Patel, Motsoaledi and Radebe.

(6) Accelerating Access to Capital

Minister Gordhan was a discussion leader in the above mentioned session with the following experts:

• Bambang Brodjonegoro, Minister of Finance of Indonesia
• Thomas Finke, Chairman and Chief Executive Officer, Babson Capital, USA
• Adena Friedman, President, Global Corporate and Information Technology Solutions, NASDAQ, USA
• Ben J. Kruger, Joint Executive Officer, Standard Bank Group, South Africa
• Michael Drexler, Head of Investors Industries, Member of Management Committee, World Economic Forum
• Alison Tarditi, Chief Investment Officer, Commonwealth Superannuation Corporation, Australia

(7) Africa’s Next Challenge

Minister Gordhan was a participant in this session.

Panelists were:

• Hailemariam Dessalegn, Prime Minister of Ethiopia
• Hans Vestberg, President and Chief Executive Officer, Telefonaktiebolaget LM Ericsson
• Akinwumi Ayodeji Adesina, President of the African Development Bank
• Yemi Osinbajo,  Vice-President of Nigeria
• Paul Kagame, President of Rwanda

2. The World Economic Forum presents an opportunity for government to interact with government, business and civil society leaders from around the world. South Africa uses the Forum to advance its national interests in areas of Foreign Direct Investment, building investor confidence, cooperation with other national governments and best practices in policy development. For the Ministry and the department, building investor confidence and assuring the markets of our commitment to fiscal discipline and economic growth was a key objective in Davos in 2016.

Minister Gordhan’s presence at WEF Davos in 2016 was especially important after the change in leadership in the Ministry of Finance in December 2015. In numerous radio and television interviews, formal sessions, bilateral and other meetings, the Minister was asked to respond to questions on the future of the South African economy. The Minister’s discussions with business and investors centered on measures being taken by government to grow the South African economy; reasons why South Africa is a desirable investment destination and steps being taken to avoid a sovereign rating downgrade.

Reply:

NATIONAL TREASURY

(a) (i) 17%

(a) (ii) N/A.

ACCOUNTING STANDARDS BOARD

(b) (i) 85%

(b) (ii) 0%

CO-OPERATIVE BANKS DEVELOPMENT AGENCY

The Co-operative Banks Development Agency has utilised the National Treasury (NT) supply chain management unit (SCM) in relation to all its procurement matters due to not having sufficient resources to carry out this function independently.

DEVELOPMENT BANK OF SOUTHERN AFRICA

(i) The Development Bank of South Africa tracks data in line with the BEE scorecard and certificates. Hence, data is available pertaining to Black Owned, Black Women Owned; EME and QSE.

This analysis is based on spend data from 1 April 2015 to 24 February 2016.

Classification	Value	%
Total Spend	R 169,962,314	100%
EME Spend	R 16,828,529	10%
QSE Spend	R 17,331,976	10%

(ii) The Bank does not record details pertaining to co-operatives.

FINANCIAL INTELLIGENCE CENTRE

(b) (i) 9.72%

(b) (ii) 0%

 

FINANCIAL SERVICES BOARD

During the period 1 April 2015 to 31 December 2015 the Financial Services Board has disbursed approximately 20% to SMMEs for goods / services procured.

GOVERNMENT EMPLOYEES PENSION FUND

(b) (i) 36%

(b) (ii) 0%

 

GOVERNMENT PENSIONS ADMINISTRATIVE AGENCY

(b) (i) 10.63%

(b) (ii) 0%

INDIPENDENT REGULATORY BOARD FOR AUDITORS

(b) (i) 6.7%

(b) (ii) 0%

PENSION FUNDS ADJUDICATOR

(b) (i) 17.3%

(b) (ii) 0%

LAND BANK

(b) (i) 100%

(b) (ii) 0%

OFFICE OF THE OMBUD FOR FINANCIAL SERVICES PROVIDERS

(b) (i) 35%

(b) (ii) 0%

PUBLIC INVESTMENT CORPORATION

(b) (i) 21%

(b) (ii) 0%

SOUTH AFRICAN AIRWAYS

(b) (i) 2.29%

(b) (ii) 0%

SOUTH AFRICAN REVENUE SERVICES

(b) (i) 12%

(b) (ii) 0%

SASRIA

(b) (i) 6.93%

(b) (ii) 0%

TAX OMBUD

The Office of the Tax Ombud was established in terms of the Tax Administration Act 28 of 2011 and reports to the Minister of Finance. In terms of the section 15(4) of this Act the expenditure connected with the functions of the Tax Ombud is paid out of the funds of SARS. For this reason all procurement for this office follows SARS’ procurement procedure through SARS’s procurement structures.

The amount spent in the designated categories will vary among entities depending on the services and goods procured. However, I will direct each entity to more actively promote the role of SMMEs and Co-operatives in the procurement process.

Reply:

1. (a) The investigation is still in progress.

(b) The plan is to complete the forensic report by the end of May 2016 but subject to cooperation and required information received to conclude the investigation.

2. The National Treasury will not make the report public since the investigation is conducted on behalf of the Department of Communication. In addition, all reports that are the subject of criminal investigations by the South African Police Service are not made public since it may have a negative impact on the success of the criminal investigation. Once the report is part of the court record and its evidence has been led, it will become a public document.

Reply:

1. The South African Revenue Service has collected R6, 3 billion as on 14 March 2016 with the voluntary disclosure programme since 2012.
2. (a)(b) The voluntary disclosure programme (VDP) data is kept per tax type, not per taxpayer type. The total number of VDP applications since 2012 is 8401. Of the approved applications, 35% relates to income tax, 13% to PAYE, 49% to VAT and 3% to other taxes.

Reply:

In terms of the National Treasury’s Section 71 report for the period 1 July to 31 December 2015, it was reported that the metros are owed R64.4 billion. This information, pertaining to the metros debt was provided by each of the metros; consolidated and reported by the National Treasury.

In response to both questions (a) and (b) the legal framework provides for municipal and ultimately council accountability to charge for services, issue correct bills and collect all monies due. This is provided for in the Local Government Municipal Systems Act, Act 32 of 2000 (MSA), Chapter 9: Credit Control and Debt Collection, which provides for the following municipal debt collection mechanisms:

S96 (a) a municipality must collect all money due and payable …

S96 (b) for this purpose, must adopt, maintain and implement a credit control and debt collection policy which is consistent with its rates and tariffs policies and complies with the provisions of this Act.

S98 (1) A municipal council must adopt by-laws to give effect to the municipality’s credit control and debt collection policy, its implementation and enforcement.

S95 (e) ensure that persons liable for payments, receive regular and accurate accounts that indicate the basis for calculating the amounts due.

S95 (l) provide accessible pay points and mechanisms for settling accounts or for making pre-payments for services.

In addition, the MSA, s118: Restraint of Transfer of Property, makes provision for municipalities to collect arrears from the property owners at the time of sale. s118 relates to the clearance certificate whereby a municipality confirms that all monies due and payable on a property, at the time of sale, have been settled, as this is legally required to facilitate the transfer of property ownership at the Registrar of Deeds. In recent years the municipality would insist on recovering a minimum of two years arrears when issuing clearance and then obtain commitment from the transferring attorney to recover the balance when the proceeds of the property sale are paid.

The most recent court ruling is that the municipality can recover from the buyer should the seller not honour the arrears on the property where it extends beyond two years. Municipalities have not utilised this legal instrument to collect arrears.

While the National Treasury strives to support municipalities to improve their operational management capability in municipal expenditure and revenue management it is evident that even among the metros which are owed R64.4 billion as at 31 December 2015, the institutions are not fully utilising the provisions of the law to maximise on revenue collection.

Furthermore, the local government governance structures afford only advisory and guidance contributions from the National Treasury as the Council is legally responsible to enforce the provisions of Chapter 9 of the MSA.

Reply:

a) The number of senior managers that have left the employment of SARS since

1 September 2014 per the requested categories is:

1. Voluntary resignation - 39
2. Suspension that led to termination - 1
3. Early retirement - 1
4. Other – 14

b) The number of senior managers that have been appointed in SARS since 1

September 2014 per the requested categories is:

1. 21
2. These appointments were made to the following positions:

• • • Chief Officers
    • Group Executives
    • Executives
    • Senior Managers
    • Senior Specialists

Reply:

1. The National Treasury is currently reviewing the entire Supply Chain Management (SCM) legislative framework with a view of developing a single procurement law that seeks to, among others, improve efficiency in the procurement environment and eliminate corruption.
2. The National Treasury will be developing guidelines to assist municipalities on the appropriate application of regulation 32 of the Municipal Supply Chain Management Regulation by July 2016. These guidelines will assist municipalities to follow due process and thereby prevent any potential misuse of this provision in the Municipal SCM legislative framework. In the interim, municipalities should submit any enquiry to the MFMA helpdesk facility, [email protected].
3. Additional to the the comment above, the MFMA provides for all processes and procedures that are undertaken at a municipality. Therefore reliance is placed on the system of delegation and other regulatory audit processes to assist in preventing the misuse of regulation 32.

Further efforts will be made to speed up the process of reviews of Section 32 and to stop the abuse that is prevalent in this regard.

Reply:

Minister has a signed performance agreement that is translated into a Medium Term Strategic Framework for a 5 years period.  This is broken down into an annual performance plan. 

These documents form the basis of the department being held accountable by Parliament on a quarterly basis and also held accountable by the public.  The performance agreement of the Minister is therefore publicly assessed through the Portfolio Committees on a regular basis. 

Additionally, the Public Finance Management Act (PFMA) compels all the Executing Authorities to subject their departmental expenditure to the Auditor General. This again is a measure that ensures full accountability to the public funds. 

Reply:

1. (a) & (b) & (c) & (d): Yes

(aa) Mr. Lungisa Fuzile is an ANC Member and he attended in his personal capacity.

(bb) Mr. Michael Sachs, Deputy Director General: Budget Office also attended in his personal capacity.

All officials who attended; attended in their personal capacity as Members of the ANC.

2. No expenditure was incurred by the National Treasury in terms of the Lekgotla.

Reply:

http://www.pmg.org.za/files/RNW297-160314a.docx

1. The link above is based on the audit outcomes as submitted by the metropolitan municipalities.

2. In 2013/14 the metros spent on average 26.6 per cent of their total expenditure on staff remuneration. This has decreased to 25.3 per cent in 2014/15.

3. MFMA Circular 71 states the norm to be between 25 per cent and 40 per cent. If the ratio exceed the norm it could indicate inefficiencies, overstaffing or even the incorrect focus due to misdirected expenditure to non-essentials or non-service delivery related expenditure.

Reply:

The following information is provided by South African Revenue Service (SARS):

(1)(2)(a)(b)(i)(ii) Due to the taxpayer confidentiality provisions contained in Section 69 of the Tax Administration Act No. 28 of 2011, SARS is prohibited from disclosing any taxpayer information to any person other than a SARS official. SARS is, therefore, unfortunately not in a position to respond to the above request in relation to any tax matter.

In general the VAT Refund process is subject to certain risk rules and follows a standardised process in line with legislation.

These steps include but are not limited to:

• A declaration by a taxpayers is subjected to the “Risk Rule” built into the system

• A declaration is reviewed where risks are identified or refunds are released where no risk is identified. 83% of cases are released without audit or verification

• Where risk is identified, a generic request for information from clients in support of their declaration is sent to the taxpayer. These requests are made in writing to the taxpayer’s E-filing account or registered address.

• Evaluation by SARS of the data in support of the declaration is conducted, and requests for further specific supporting documentation is sent to the taxpayer where deemed necessary by the auditor. This second request is made telephonically and followed up by a written request sent to the E-filing account or other registered details

• If required an adjustment is made to the assessment

As indicated above, all reviews are conducted based on the risk identified by the system and all procedures and legislation are adhered to at all times in dealing with identified cases.

The TAA, chapter 5, Sec 40, differentiates between an Audit and a Verification. Once again, the risk rules determine whether a case will be Verified or Audited. Sec 42 of the TAA requires that a taxpayer be kept informed of progress with an Audit. The same obligations do not exist in the case of a Verification.

Reply:

(a) In terms of section 38(1)(f) of the Public Finance Management Act (PFMA) and Treasury Regulation 8.2.3, it is the responsibility of accounting officers to settle all contractual obligations and pay all money owing, including intergovernmental claims, within 30 days from receipt of an invoice.

On 30 November 2011, the National Treasury issued Instruction Note 34 which requires departments to submit information related to their compliance with the requirement to pay invoices within 30 days. The National Treasury uses this information to compile bi-monthly reports to the Forum of South African Directors-General (FOSAD) on compliance by departments with the thirty day payment requirement.

(b) Non-compliance with the requirement to pay invoices within the prescribed period can be grounds for financial misconduct. In terms of sections 38(1)(h) and 51(1)(e) of the PFMA, accounting officers of departments, constitutional institutions and public entities must take effective and appropriate disciplinary steps against any official who contravenes or fail to comply with the provision of this Act.

The responsibility to take disciplinary action therefore lies with accounting officers and accounting authorities and the National Treasury is not in receipt of information related to disciplinary actions taken for such transgressions.   

(c) Since introduction of the Treasury Instruction on Cost Containment, there is evidence of reduced spending on items related to travel, entertainment and consultants. An expenditure analysis of national departments on these items as at the end of December 2015 revealed that travel expenses reduced by 16%, entertainment expenses reduced by 8% and spending on consultants reduced by 31%. There was, however, an 8% increase in expenses related to catering.

(d) The National Treasury submits a Memorandum annually to Cabinet on the audit outcomes of all PFMA compliant institutions. In this regard, Cabinet annually resolves that accounting officers must act on the Auditor-General’s recommendations to address negative audit findings and to submit to their relevant Executive Authorities, corrective steps to be taken to address concerns raised in their audit reports.

Reply:

(a) The effect of a rating downgrade will depend on:

• How many rating agencies put South Africa in a junk status;
• How the market have priced in the junk status rating; and
• How persistent is the shock, reflected in the continued fall in the yields.

(b) In general, the effect of a lower credit rating could result in the weakening of the exchange rate; capital outflows; and high borrowing costs. However, the focus of government is not to let South Africa go into junk status, by implementing:

• Structural reforms to boost growth;
• Faster fiscal consolidation; and
• Resolving the governance issues in the State Owned Companies.

(c) Further details are included in the 2016 Budget.

If we were to go into junk status and the impact last longer, it would mean that government has to look at its policies and demonstrates faster implementation of the National Development Plan.

Reply:

Yes. Government has provided Eskom with a R350 billion guarantee facility of which Eskom is expected to have utilised R168.5 billion to raise debt by March 2016. In line with Eskom’s requirements, the company is expected to have raised R215 billion of government guaranteed debt by 2018/19. This will enable the company to raise the debt required to complete the capital expenditure programme which will augment electricity supply enabling an acceleration in growth and development. These projections have been taken into account in developing a prudent fiscal framework and were published in the 2016 Budget Review. That said, the framework which governs the issuance of the guarantees, requires that government approve any new loan facilities that are to be guaranteed, enabling government to manage its risk exposure.

Reply:

(a) 

(i) National departments: Estimates of the National Expenditure 2016

Information can be found on the following link:

http://www.treasury.gov.za/documents/national%20budget/2016/ene/FullENE.pdf

Page xxx, table 9

(ii) Entity reporting to each specified department

1. 2012-13, please see Annexure A
2. 2013-14, please see Annexure A
3. 2014-15, please see Annexure A

(iii) Department of each of the provincial governments

Eastern Cape: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/EC/EC%20-%20EPRE%20-%20Full%20Document.pdf

Vote 1- Office of the Premier- table 5, page 74.

Vote 2- Provincial Legislature- table 4, page 100.

Vote 3- Health- table 7, page 124.

Vote 4- Social Development- table 5, page 188.

Vote 5- Roads and Public Works- table 5, page 227.

Vote 6- Education- table 5, page 275.

Vote 7- Local Government and Traditional Affairs- table 5, page 373

Vote 8- Rural Development and Agrarian Reform- table 5, page 404

Vote 9- Economic Development, Environmental Affairs- table 6, page 464.

Vote 10- Transport- table 7, page 496.

Vote 11- Human Settlements- table 5, page 533.

Vote 12- Provincial Treasury- table 5, page 592.

Vote 14- Sport, Art and Culture- table 5, page 622.

Vote 15- Safety and Liaison- table 5, page 661.

Free State: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/FS/FS%20-%20EPRE%20-%20Full%20Document.pdf

Vote 1- Office of the Premier- table 1.2, page 84.

Vote 2- Free State Legislature- table 2.3, page 104.

Vote 3- Economic Development, Tourism and Environmental Affairs - table 3.4, page 125.

Vote 4- Provincial Treasury- table 4.4, page 151.

Vote 5- Health- table 5.4, page 181.

Vote 6- Education- table 6.4, page 245.

Vote 7- Social Development- table 7.4, page 296

Vote 8- Cooperative Governance and Traditional Affairs- table 8.4, page 332

Vote 9- Public Works- table 9.4, page 356.

Vote 10- Police, Roads and Transport- table 10.4, page 384.

Vote 11- Agriculture and Rural Development- table 11.4, page 425.

Vote 12- Sport, Art, Culture and Recreation - table 12.4, page 469.

Vote 13- Human Settlements- table 13.4, page 504.

Gauteng: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/GT/GT%20-%20EPRE%20-%20Full%20Document.pdf

Table 20- page 25.

Kwazulu-Natal: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/FS/FS%20-%20EPRE%20-%20Full%20Document.pdf

Vote 1- Office of the Premier- table 1.7, page 15.

Vote 2- Provincial Legislature- table 2.4, page 57.

Vote 3- Agriculture, Environmental Affairs and Rural Development - table 3.7, page 88.

Vote 4- Economic Development and Tourism- table 4.5, page 142.

Vote 5- Education - table 5.8, page 223.

Vote 6- Provincial Treasury- table 6.4, page 280.

Vote 7- Health- table 7.7, page 329.

Vote 8- Human Settlements- table 8.5, page 392.

Vote 9- Community Safety and Liaison- table 9.6, page 431.

Vote 10- The Royal Household.

Vote 11- Co-operative Governance and Traditional Affairs- table 11.6, page 462.

Vote 12- Transport - table 12.7, page 515.

Vote 13- Social Development- table 13.5, page 558.

Vote 14- Public Works - table 14.5, page 607.

Vote 15- Arts and Culture 15.5, page 641.

Vote 16- Sport and Recreation- table 16.5, page 683.

Limpopo: Estimate of Provincial Revenue and Expenditure

Vote 1- Office of the Premier - table 1.2 (b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2001%20-%20Premier.pdf

 

Vote 2- Limpopo Legislature- table 2.1(c).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2002%20-%20Legislature.pdf

Vote 3- Education - table 3.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2003%20-%20Education.pdf

Vote 4- Agriculture- table 4.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2004%20-%20Agriculture.pdf

Vote 5- Provincial Treasury - table 5.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2005%20-%20Provincial%20Treasury.pdf

Vote 6- Economic Development, Environmental Affairs and Tourism- table 6.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2006%20-%20Economic%20Dev,%20Environm%20&%20Tourism.pdf

Vote 7- Health- table 7.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2007%20-%20Health.pdf

Vote 8- Roads and Transport- table 8.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2008%20-%20Transport.pdf

Vote 9- Public Works- table 9.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2009%20-%20Public%20Works,%20Roads%20a&%20Transport.pdf

Vote 10- Safety, Security and Liaison- table 10.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2010%20-%20Safety%20and%20Security.pdf

Vote 11- Co-operative Governance, Human Settlement and Traditional Affairs- table 11.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2011%20-%20Cooperative%20gov,%20Human%20Sett%20&%20Environ.pdf

Vote 12- Social Development- table 12.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2012%20-%20Social%20Development.pdf

Vote 13- Sport, Arts and Culture- table 13.2(b).

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/LIM%20-%20Vote%2013%20-%20Sport,%20Art%20&%20Culture.pdf

Mpumalanga: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/MPU/MPU%20-%20EPRE%20-%20Full%20Document.pdf

 

Vote 1- Office of the Premier- table 1.4, page 98.

Vote 2- Mpumalanga Provincial Legislature- table 2.4, page 116.

Vote 3- Finance - table 3.4, page 135.

Vote 4- Co-operative Governance and Traditional Affairs- table 4.4, page 156.

Vote 5- Agricultural, Rural Development and Land Administration - table 5.4, page 182.

Vote 6- Economic Development, Environment and Tourism- table 6.4, page 218.

Vote 7- Education- table 7.4, page 249.

Vote 8- Public Works, Roads and Transport- table 8.4, page 300.

Vote 9- Community Safety, Security and Liaison- table 9.4, page 326.

Vote 10- Health- table 10.4, page 351.

Vote 11- Culture, Sport and Recreation- table 11.4, page 396.

Vote 12- Social Development - table 12.4, page 433.

Vote 13- Human Settlements- table 13.4, page 488.

Northern Cape: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/NC/2.%20Estimates%20of%20Prov%20Rev%20and%20Exp/Default.aspx

Vote 1- Office of the Premier - table 2.4.

Vote 2- Provincial Legislature- table 2.4.

Vote 3- Transport, Safety and Liaison - table 2.4.

Vote 4- Education- table 2.4.

Vote 5- Roads and Public Works - table 5.4, page 182.

Vote 6- Economic Development and Tourism- table 2.4.

Vote 7- Sport, Arts and Culture- table 2.4.

Vote 8- Provincial Treasury- table 2.4.

Vote 9- Co-operative Governance, Human Settlement and Traditional Affairs - table 2.4.

Vote 10- Health- table 2.4.

Vote 11- Social Development - table 11.4, page 396.

Vote 12- Agriculture, Land Reform and Rural Development - table 4.4.

Vote 13- Environment and Nature Conservation- table 4.4.

North West: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/NW/NW%20-%20EPRE%20-%20Full%20Document.pdf

Vote 1- Office of the Premier- table 1.4, page 8.

Vote 2- Provincial Legislature- table 2.3, page 44.

Vote 3- Health - table 3.4, page 79.

Vote 4- Sport, Arts and Culture - table 4.4, page 146.

Vote 5- Public Safety and Liaison - table 5.4, page 190.

Vote 6- Economic Development, Environment, Conservation and Tourism- table 6.4, page 221.

Vote 7- Finance- table 7.4, page 260.

Vote 8- Education- table 8.4, page 295.

Vote 9- Local Government and Traditional Affairs - table 9.4, page 355.

Vote 10- Tourism- table 10.4, page 402.

Vote 11- Public Works, Roads and Transport- table 11.4, page 425.

Vote 12- Social Development - table 12.4, page 458.

Vote 13- Agricultural and Rural Development- table 13.4, page 519.

Western Cape: Estimate of Provincial Revenue and Expenditure

http://www.treasury.gov.za/documents/provincial%20budget/2015/4.%20Estimates%20of%20Prov%20Rev%20and%20Exp/WC/WC%20-%20EPRE%20-%20Full%20Document.pdf

Vote 1- Office of the Premier- table 5.2, page 22.

Vote 2- Provincial Parliament- table 5.2, page 61.

Vote 3- Provincial Treasury - table 5.2, page 89.

Vote 4- Community Safety - table 5.2, page 130.

Vote 5- Education - table 5.2, page 166.

Vote 6- Health - table 5.2, page 230.

Vote 7- Social Development - table 5.2, page 307.

Vote 8- Human Settlements - table 5.2, page 349.

Vote 9- Environmental Affairs and Development Planning - table 5.2, page 394.

Vote 10- Transport and Public Works- table 5.2, page 451.

Vote 11- Agriculture - table 5.2, page 550.

Vote 12- Economic Development and Tourism - table 5.2, page 621.

Vote 13- Cultural Affairs and Sport- table 5.2, page 686.

Vote 14- Local Government- table 5.2, page 733.

1.  

National departments: Estimates of the National Expenditure 2016

Information can be found on the following link:

http://www.treasury.gov.za/documents/national%20budget/2016/ene/FullENE.pdf

Provincial departments:

Please refer to iii above for provincial departments 2015/16.

Public entities:

Please see Annexure A for 2015-16 for entities reporting to each specified department.

 

Annexure A

Compensation of employees for entity reporting to each national department

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
Agriculture, Forestry and Fisheries	Agricultural Research Council	611 756	685 235	760 364	779 300
Agriculture, Forestry and Fisheries	Marine Living Resources Fund	-	-	-	-
Agriculture, Forestry and Fisheries	Ncera Farms (Pty) Ltd	3 184	3 931	4 452	5 092
Agriculture, Forestry and Fisheries	Onderstepoort Biological Products Limited	53 601	61 215	59 247	55 740
Agriculture, Forestry and Fisheries	Perishable Products Export Control Board	139 063	150 315	175 734	181 754
Agriculture, Forestry and Fisheries	National Agricultural Marketing Council	22 348	25 089	22 777	24 144
Arts and Culture	Artscape	29 391	30 525	30 770	34 733
Arts and Culture	Die Afrikaanse Taalmuseum	4 089	4 424	4 696	4 782
Arts and Culture	Luthuli Museum	4 190	3 750	4 373	6 137
Arts and Culture	Market Theatre Foundation	16 574	17 890	17 657	18 430
Arts and Culture	National Arts Council of South Africa	13 732	15 128	16 294	15 314
Arts and Culture	National Film and Video Foundation of South Africa	12 994	15 836	18 485	19 880
Arts and Culture	National Library of South Africa	50 640	54 191	55 568	60 493
Arts and Culture	National Museum, Bloemfontein	27 654	28 403	31 065	33 747
Arts and Culture	Performing Arts Council of the Free State	21 850	21 965	23 417	25 025
Arts and Culture	The National English Literary Museum	5 865	6 945	6 919	7 738
Arts and Culture	The Playhouse Company	24 666	25 750	27 493	32 041
Arts and Culture	Voortrekker Museum	7 805	8 699	9 840	10 353
Arts and Culture	War Museum of the Boer Republics	6 184	6 914	7 498	8 000
Arts and Culture	William Humphreys Art Gallery	3 439	3 333	3 663	4 091
Arts and Culture	Windybrow Theatre	5 741	7 201	3 779	3 349
Arts and Culture	Ditsong: Museums of South Africa	47 211	52 554	54 239	62 455
Arts and Culture	Freedom Park Trust	45 007	46 401	49 150	55 708
Arts and Culture	Iziko Museums of Cape Town	49 933	50 670	53 338	63 907
Arts and Culture	KwaZulu-Natal Museum	13 099	13 866	13 889	16 347
Arts and Culture	National Heritage Council of South Africa	17 860	21 456	25 054	32 572
Arts and Culture	Robben Island Museum	62 068	74 255	72 819	82 597
Arts and Culture	South African Heritage Resources Agency	22 044	28 189	28 479	34 804
Arts and Culture	South African Library for the Blind	9 726	10 756	12 064	14 028
Arts and Culture	The Pan South African Language Board	44 080	69 258	63 579	83 959

Annexure A

Compensation of employees for entity reporting to each national department continues

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
Arts and Culture	The South African State Theatre	32 795	33 527	35 169	37 340
Arts and Culture	ZArts Institutions Consolidation	131 017	136 858	138 285	150 918
Arts and Culture	ZCultural Institutions Consolidation	283 853	308 907	320 702	367 494
Arts and Culture	ZLibraries Consolidation	60 366	64 947	67 632	74 521
Arts and Culture	Nelson Mandela National Museum	7 309	8 693	9 213	11 632
Basic Education	South African Council for Educators	21 287	26 013	30 477	34 113
Basic Education	uMalusi Council for Quality Assurance in General and Further Education and Training	35 452	44 285	49 480	60 443
Basic Education	Education Labour Relations Council	14 555	15 550	21 710	23 633
Communications	Brand South Africa	26 816	33 014	33 633	46 062
Communications	Film and Publication Board	31 299	36 116	36 503	40 153
Communications	Media Development and Diversity Agency	4 933	6 876	6 373	14 454
Communications	South African Broadcasting Corporation Limited	1 814 763	2 073 843	2 431 122	2 676 036
Communications	The Independent Communications Authority of South Africa	194 269	204 158	239 103	253 685
Cooperative Governance And Traditional Affairs	South African Local Government Association	175 312	195 910	226 091	255 054
Cooperative Governance And Traditional Affairs	The Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities	16 682	18 490	21 433	20 969
Cooperative Governance And Traditional Affairs	The Municipal Demarcation Board	13 465	17 155	20 016	20 087
Cooperative Governance And Traditional Affairs	Municipal Infrastructure Support Agency	-	40 866	54 595	91 000
Defence And Military Veterans	Armaments Corporation of South Africa Limited	696 185	813 880	914 457	1 029 203
Defence And Military Veterans	Castle Control Board	864	1 748	2 766	3 845
Economic Development	Competition Commission	105 007	121 468	140 111	168 318
Economic Development	Competition Tribunal	13 710	16 029	19 095	21 659
Economic Development	Industrial Development Corporation of South Africa Limited	2 381 000	3 511 000	3 686 550	3 870 878
Economic Development	International Trade Administration Commission	55 199	61 109	67 386	71 484
Economic Development	Small Enterprise Finance Agency	85 157	98 363	129 471	166 937
Energy	CEF (Pty) Ltd	1 295 401	1 429 553	1 480 580	996 949
Energy	National Energy Regulator of South Africa	121 840	139 000	158 275	175 104
Energy	National Nuclear Regulator	71 142	84 555	102 595	113 287
Energy	South African Nuclear Energy Corporation Limited	650 724	674 788	789 094	916 852
Energy	South African National Energy Development Institute	35 096	32 744	28 847	40 908
Environmental Affairs	iSimangaliso Wetland Park	9 174	21 721	14 487	19 894
Environmental Affairs	South African National Biodiversity Institute	180 694	246 781	281 237	300 952
Environmental Affairs	South African National Parks	631 958	885 530	871 215	903 416
Environmental Affairs	South African Weather Service	148 256	163 427	173 377	210 149

Annexure A

Compensation of employees for entity reporting to each national department continues

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
Health	Compensation Commissioner For Occupational Diseases in Mines and Works	-	-	-	-
Health	Council for Medical Schemes	66 039	69 668	77 108	82 412
Health	Medical Research Council of South Africa	317 321	275 184	272 277	348 074
Health	National Health Laboratory Service	2 139 054	2 132 986	2 137 835	2 452 627
Health	Office of Health Standards Compliance	16 395	20 754	31 174	53 100
Higher Education and Training	Agricultural Sector Education and Training Authority	9 009	19 239	12 890	13 689
Higher Education and Training	Banking Sector Education and Training Authority	18 114	18 831	24 099	25 063
Higher Education and Training	Chemical Industries Education and Training Authority	21 235	29 938	31 041	34 461
Higher Education and Training	Construction Education and Training Authority	25 589	25 597	35 579	35 104
Higher Education and Training	Council on Higher Education	19 468	22 371	24 058	30 094
Higher Education and Training	Culture, Arts, Tourism, Hospitality and Sports Education & Training Authority	28 643	13 290	24 000	26 040
Higher Education and Training	Education, Training and Development Practices SETA	47 094	55 707	59 950	55 282
Higher Education and Training	Fibre Processing Manufacturing Sector Education and Training Authority	16 736	19 103	17 771	21 825
Higher Education and Training	Financial and Accounting Services SETA	10 495	13 646	14 092	18 336
Higher Education and Training	Food and Beverages Manufacturing Industry	11 962	12 911	16 117	12 615
Higher Education and Training	Health and Welfare Sector Education and Training Authority	31 733	34 107	46 659	53 878
Higher Education and Training	Insurance Sector Education and Training Authority	13 741	14 469	16 487	18 483
Higher Education and Training	Local Government Education and Training Authority	19 676	25 737	25 850	30 469
Higher Education and Training	Manufacturing, Engineering and Related Services Sector Education and Training Authority	79 386	84 859	93 319	92 500
Higher Education and Training	Media, Information and Communication Technologies Sector and Training Authority	22 657	25 031	27 304	37 460
Higher Education and Training	Mining Qualifications Authority	33 800	45 242	56 082	66 778
Higher Education and Training	National Skills Fund	14 759	24 025	29 001	57 724
Higher Education and Training	National Student Financial Aid Scheme	35 970	65 862	82 288	102 147
Higher Education and Training	Quality Council for Trades and Occupations	8 608	16 929	28 628	37 305
Higher Education and Training	Safety and Security Education and Training Authority	31 223	32 106	44 133	32 277
Higher Education and Training	Services Sector Education and Training Authority	76 993	92 372	109 433	36 847
Higher Education and Training	South African Qualifications Authority	61 292	67 168	64 238	69 641
Higher Education and Training	Transport Education and Training Authority	32 845	44 813	50 499	54 034
Higher Education and Training	Wholesale and Retail Sector Education and Training Authority	36 063	40 294	39 815	50 664

Annexure A

Compensation of employees for entity reporting to each national department continues

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
Higher Education and Training	Energy and Water Sector Education and Training Authority	15 929	19 474	26 604	30 000
Higher Education and Training	ZSETAs Consolidation	598 529	685 397	791 987	774 990
Home Affairs	Government Printing Works	60 119	-	-	202 979
Home Affairs	The Independent Electoral Commission	369 034	571 709	572 016	655 209
Human Settlements	Community Schemes Ombud Service	-	-	5 423	14 652
Human Settlements	Estate Agency Affairs Board	52 627	36 560	57 296	73 058
Human Settlements	Housing Development Agency	68 139	73 867	81 565	131 062
Human Settlements	National Home Builders Registration Council	195 009	259 747	331 732	451 374
Human Settlements	National Housing Finance Corporation Limited	80 845	76 450	107 668	65 533
Human Settlements	National Urban Reconstruction and Housing Agency	24 582	27 650	28 543	38 067
Human Settlements	Rural Housing Loan Fund	8 767	9 162	10 589	10 476
Human Settlements	The Social Housing Regulatory Authority	11 679	16 074	18 495	14 924
Human Settlements	Estate Agents Fidelity Fund	-	-	-	-
Justice and Constitutional Development	Legal Aid South Africa	887 499	1 018 392	1 109 426	1 288 425
Justice and Constitutional Development	The Public Protector of South Africa	118 757	141 584	157 578	190 659
Justice and Constitutional Development	Special Investigating Unit	235 558	259 127	275 748	315 930
Justice and Constitutional Development	The South African Human Rights Commission	62 649	65 369	76 593	102 402
Labour	Commission for Conciliation Mediation & Arbitration	163 094	178 341	221 867	259 545
Labour	Compensation Fund, including Reserve Fund	332 856	407 371	445 773	519 722
Labour	National Economic Development and Labour Council	7 395	10 281	12 095	12 820
Labour	Productivity SA	43 586	48 927	54 741	58 567
Labour	Unemployment Insurance Fund	646 975	768 922	872 308	1 025 994
Mineral Resources	Council for Geoscience	159 972	160 392	176 844	189 508
Mineral Resources	Mine Health and Safety Council	15 614	20 275	26 896	31 527
Mineral Resources	Council for Mineral Technology	245 812	255 747	288 744	307 507
Mineral Resources	South African Diamond and Precious Metals Regulator	45 775	48 732	59 009	67 574
Mineral Resources	State Diamond Trader	7 360	5 216	7 252	11 708
National School of Government	National school of government	53 204	58 640	61 271	82 070
National Treasury	Accounting Standards Board	6 207	5 689	8 577	8 768
National Treasury	Development Bank of Southern Africa	649 574	554 901	598 193	747 113
National Treasury	Financial Intelligence Centre	117 335	130 580	122 007	142 623
National Treasury	Financial Services Board	307 822	334 872	347 388	360 072
National Treasury	Government Pension Administration Agency	278 880	292 985	382 948	481 705
National Treasury	Government Technical Advisory Centre	46 261	49 270	33 768	99 435

Annexure A

Compensation of employees for entity reporting to each national department continues

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
National Treasury	Independent Regulatory Board for Auditors	37 925	42 391	52 204	62 996
National Treasury	Land and Agricultural Development Bank of South Africa	340 768	380 213	291 722	313 895
National Treasury	Office of the Ombud for Financial Services Providers	20 253	20 857	22 632	26 020
National Treasury	Office of the Pension Funds Adjudicator	24 350	24 873	26 140	28 845
National Treasury	Public Investment Corporation Limited	230 506	441 196	422 447	570 471
National Treasury	Sasria Limited	27 690	39 653	46 267	50 924
National Treasury	South African Revenue Service	5 786 196	5 862 649	6 422 748	6 718 794
National Treasury	The Co-operative Banks Development Agency	5 986	8 875	9 800	10 931
National Treasury	The Financial and Fiscal Commission	20 336	20 445	21 615	23 529
Police	Private Security Industry Regulatory Authority	67 271	76 397	81 259	96 230
Public Service and Administration	Public Service Sector Education and Training Authority	15 606	18 631	20 263	29 186
Public Service and Administration	Centre of Public Service Innovation	9 178	10 784	12 756	14 954
Public Works	Construction Industry Development Board	68 738	68 868	74 565	81 354
Public Works	Independent Development Trust	220 755	222 582	212 494	245 694
Public Works	Property Management Trading Entity (PMTE)	-	-	-	1 288 773
Public Works	Council for the Built Environment	13 362	16 505	17 727	19 778
Rural Development and Land Reform	Agricultural Land Holding Account	-	-	-	-
Rural Development and Land Reform	Ingonyama Trust Board	10 040	14 398	16 717	16 930
Rural Development and Land Reform	Registration of Deeds Trading Entity	309 624	349 243	411 717	496 912
Science and Technology	Academy of Science of South Africa	8 870	1 614	2 650	16 968
Science and Technology	Council for Scientific and Industrial Research	1 110 208	1 231 173	1 341 617	1 455 036
Science and Technology	Human Sciences Research Council	196 201	203 680	225 764	238 251
Science and Technology	National Research Foundation	439 791	473 917	526 796	665 938
Science and Technology	South African National Space Agency	62 728	73 357	90 266	80 579
Science and Technology	Technology Innovation Agency	113 274	134 333	123 771	92 729
Small Business Development	Small Enterprise Development Agency	221 373	224 241	230 924	272 240
Social Development	National Development Agency	60 360	68 647	78 133	79 742
Social Development	South African Social Security Agency	2 068 437	2 212 433	2 485 142	2 831 784
Telecommunications and Postal Services	National Electronic Media Institute of South Africa	18 001	18 428	18 431	22 385
Telecommunications and Postal Services	Sentech Limited	276 447	328 266	360 386	366 939
Telecommunications and Postal Services	South African Post Office Limited	3 529 159	3 529 159	3 763 582	4 152 795
Telecommunications and Postal Services	State Information Technology Agency	1 413 723	1 354 680	1 463 125	1 600 872
Telecommunications and Postal Services	Universal Service and Access Agency of South Africa	33 421	38 991	40 346	41 161

 

Annexure A

Compensation of employees for entity reporting to each national department continues

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
Telecommunications and Postal Services	Universal Service and Access Fund	-	-	-	-
Tourism	South African Tourism	149 315	169 392	180 233	190 687
Trade and Industry	Companies and Intellectual Property Commission	162 700	186 861	198 903	239 251
Trade and Industry	Companies Tribunal	602	3 881	7 842	11 121
Trade and Industry	Export Credit Insurance Corporation of South Africa Limited	26 350	45 503	72 814	53 232
Trade and Industry	National Consumer Commission	22 991	27 954	32 605	38 275
Trade and Industry	National Consumer Tribunal	12 539	17 816	19 610	26 351
Trade and Industry	National Credit Regulator	56 078	57 497	68 155	71 563
Trade and Industry	National Empowerment Fund	124 764	134 804	137 463	183 273
Trade and Industry	National Gambling Board of South Africa	14 714	12 644	12 060	11 347
Trade and Industry	National Lotteries Board	59 734	84 005	155 416	159 044
Trade and Industry	National Lotteries Board Distribution Trust Fund	-	-	-	-
Trade and Industry	National Metrology Institute of South Africa	48 187	52 118	58 599	79 194
Trade and Industry	National Regulator for Compulsory Specifications	137 110	178 178	203 903	265 206
Trade and Industry	SA Bureau of Standards	389 074	433 651	471 840	529 983
Trade and Industry	South African National Accreditation System	31 824	33 689	34 673	42 064
Transport	Air Traffic and Navigation Services Company Limited	627 653	656 556	751 122	815 356
Transport	Airports Company of South Africa Limited	-	-	-	-
Transport	Cross-Border Road Transport Agency	96 022	113 066	131 999	159 979
Transport	Driving License Card Account	2 189	3 285	4 729	18 756
Transport	Passenger Rail Agency of South Africa	3 971 949	4 439 860	4 402 542	4 793 959
Transport	Ports Regulator of South Africa	5 670	7 188	9 794	11 860
Transport	Railway Safety Regulator	52 967	64 288	82 901	119 795
Transport	Road Accident Fund	762 641	854 690	1 080 927	1 195 777
Transport	Road Traffic Infringement Agency	10 538	31 935	44 530	77 320
Transport	Road Traffic Management Corporation	110 767	118 562	150 863	170 503
Transport	South African Civil Aviation Authority	243 889	280 788	276 250	325 342
Transport	South African Maritime Safety Authority	105 957	128 616	145 339	171 534
Transport	The South African National Roads Agency Limited	155 241	194 691	217 676	200 253
Water and Sanitation	Bloem Water	97 676	116 553	145 660	164 596
Water and Sanitation	Lepelle Northern Water	112 950	149 798	112 938	120 844
Water and Sanitation	Magalies Water	75 668	89 985	107 129	135 036
Water and Sanitation	Mhlathuze Water	50 264	78 685	105 942	95 074
Water and Sanitation	Overberg Water	12 635	14 675	15 557	21 520
Water and Sanitation	Sedibeng Water	141 375	184 150	259 165	256 266

Annexure A

Compensation of employees for entity reporting to each national department concluded

Department	Public Entity	2012/13	2013/14	2014/15	2015/16
		R'000
Water and Sanitation	Trans-Caledon Tunnel Authority	121 997	131 728	146 124	232 256
Water and Sanitation	Inkomati Catchment Management Agency	14 056	25 098	26 521	45 998
Water and Sanitation	Umgeni Water	291 315	377 978	449 318	437 735
Water and Sanitation	Amatola Water Board	119 139	119 883	151 754	171 560
Water and Sanitation	Rand Water	1 370 718	1 574 879	1 612 895	1 782 279
Water and Sanitation	ZWater Boards Consolidation	2 271 740	2 706 586	2 960 358	3 184 909
Water and Sanitation	Breede River Catchment Management Agency	10 530	13 142	14 485	27 042
Water and Sanitation	Water Research Commission	39 792	38 282	44 783	51 682
Water and Sanitation	The Water Services Trading Entity	588 288	659 154	716 182	724 109
Water and Sanitation	Botshelo Water	48 237	51 808	55 649	-
Water and Sanitation	Pelladrift Water Board	2 497	2 753	3 027	-
International Relations and Cooperation	African Renaissance and International Cooperation Fund	-	-	-	-
Planning, Monitoring and Evaluation	National Youth Development Agency	162 209	168 456	173 763	214 220
Sport and Recreation South Africa	The South African Institute for Drug-free Sport	2 493	3 184	3 532	5 028
Sport and Recreation South Africa	Boxing South Africa	4 140	5 362	6 261	6 809
Women	The Commission on Gender Equality	34 477	39 904	45 652	46 704

Reply:

According to the Government Employees Pension Fund:

1. Mr Vorster did not retire within the fund but resigned.
2. The pension application was successfully processed as per the choice that he had made, he received a resignation benefit. Due to the fact that some of the requested information is personal, it cannot be made available to third party without the written consent of the person involved.

Parliament should be aware that members of the GEPF should utilise the call centre or walk in centre facilities provided by the GEPF to its members to deal with general enquiries rather than approach it for such operational queries.

Reply:

No, the National Treasury does not have any frozen vacant positions on its staff establishment.

a) Not applicable

b) Not applicable

c) Not applicable

Reply:

1. (a) Contributions from uncommitted SETA surplus funds to the items listed at 1 (a), (b) and (c) (i) and (ii) cannot be determined Minister of Finance as this is not within his purview. The Minister of Higher Education and Training is the Executive Authority for the SETAs.
2. None of the expenses listed at 1 (a), (b) and (c) (i) and (ii) are sourced from the contingency reserve but come from the reprioritisation of budgets in the 2016 MTEF.

Reply:

(1)(a)(i) and (ii) and (b)(i) and (ii). The current assets and liabilities for the metropolitan municipalities for 2013/14 and 2014/15 is contained and presented in the link below:

http://www.pmg.org.za/files/RNW311-160314A.docx

(2) The liquidity position is measured using current ratio which assesses the municipality’s ability to pay back its short-term liabilities with its short-term assets. From the table above, it can be seen that all the metropolitan municipalities with the exception of City of Tshwane have current assets that exceed the current liabilities (current ratio larger than1:1). This indicates that they are able to meet their current obligations.

The case with the City of Tshwane is that the cash and cash equivalents at year end were R600 million and was not sufficient to pay current commitments. The reasons for this are: The realised consumer collection rate of 94 per cent is not sufficient to pay for all commitments. The outstanding debtors has increased year-on-year showing that the city is not collecting long outstanding debtors at an increasing rate. The possible solutions are: The municipality must decrease commitments to the maximum income realised and /or must recover more than 94 per cent in order to meet its commitments.

Reply:

I am informed by the Public Investment Corporation (PIC) that:

(1)(a) The certain company is an associate of the PIC and it is a company where the PIC has influence but it has no control over the financial and operating policies of the certain company (Page 115; Note 5 of the Financial Statements as published in the PIC’s Integrated Annual Report 2015).

(1)(b) The relationship was established prior to certain person leaving the PIC. The Pan African Infrastructure Development Fund (PAIDF) was initiated during the 2005/06 financial year when certain person was Head of Corporate Finance and Isibaya Fund at the PIC (Page 29 of the PIC’s Annual Report 2006). Certain person was seconded by the PIC to head the PAIDF. During the 2007/08 financial year, the PIC established a management company; certain company Fund Managers, to oversee the PAIDF investments (Page 7 of the PIC’s Annual Report 2008) and certain person later became the CEO of certain company Fund Managers.

(2)(a) The PAIDF was established in the 2005/06 financial year to focus on infrastructure investments on the African continent (Page 4; 8 and 29 of PIC’s Annual Report 2006).

(2)(b) Certain company Fund Managers was established as a PIC associate in the 2007/08 financial year to oversee PAIDF investments (Page 7 of the PIC’s Annual Report 2008).

(3) The company is not a public company (Page 115; Paragraph 5 of the PIC’s Integrated Annual Report 2015)

The rest of the question falls away.

(4) The PIC has a 46% shareholding in certain company Fund Managers and a 30% shareholding in certain company General Partners (Page 96; Paragraph 6 of the PIC’s Integrated Annual Report 2015).

(5)(a) The PAIDF(I) is a 15 years Fund that matures in 2022. All investors, including GEPF, will realize value at maturity in line with the Fund Terms.

(5)(b) For purposes of confidentiality the PIC cannot disclose details on any future transactions.

Reply:

The National Treasury has bought advertising space in The New Age as detailed below:

RSA Retail Savings Bonds
Financial years	Number of times	Amount in each specified financial year
(a) 2012-13	4	R218 150.40
(b) 2013-14	0	-
(c) 2014-15	2	R 92 232.00
TOTAL	R310 382.40