Questions and Replies

Reply:

One of the Petroleum refining companies has decided to close its refinery and convert is into an import terminal.

The Department believes that the refineries should remain operational not just used as storage, because this approach compromises the country with respect to numerous benefits such as employment creation, skills, enterprise development and other benefits that come with local manufacturing.

With respect to the pricing issue, the planned closure of the refinery will not affect pricing because the Basic Fuel Price (BFP) assumes that the product is being imported not produced locally.

Reply:

1. The Department of Science and Innovation (DSI) confirms that Additiv Solutions (Pty) Ltd met all the requirements for support from the Photonics Prototyping Facility that is hosted by the Council for Scientific and Industrial Research’s (CSIR) National Laser Centre. As set out in the reply to question 404 in March 2021, the proposal was evaluated by the PPF Investment Committee, which includes industry experts and the DSI, and which evaluates and recommends proposals to be supported to the CSIR. Proposals are evaluated against the following criteria:

(a) Relevance and Impact (commercial relevance; feasibility; and significance of impact to the Photonics industry);

(b) Technical merit (clarity of objectives/motivation to use the PPF; novelty of technology; maturity of technology);

(c) Budget (alignment to tasks; and feasibility with existing infrastructure); and

(d) Management Plan (feasibility and efficiency of plan; and track record and team)

The proposal from Additiv Solutions (Pty) Ltd was evaluated by the PPF Investment Committee on 9 December 2019. The committee agreed that there was a clear need for lower cost 3D metal additive manufacturing machines, that the proposal met the requirements of technical merits, budget and the management plan. The proposal also met the requirements with respect to relevance and impact, but the committee did recognize that significant effort would be required with respect to market development and marketing, and that the prototype to be developed in this project would assist in this regard. The Committee agreed that the proposal from Additiv Solutions (Pty) Ltd therefore met the requirements for support from the PPF, and recommended it for approval.

2. The project was initially scheduled to be completed by 31 March 2021. However, there were delays with the procurement processes at the CSIR, which delayed the initial setup phase of the project. These delays were due to challenges with suppliers of hardware to the CSIR. The hardware necessary for this phase was delivered to the CSIR in December 2020 and February 2021 and this work is now completed. In the project scope, a prototype system had to be characterised, and then three subsequent "Beta" machines have to be characterised for Additiv Solutions. The prototype setup and characterisation is completed; the Beta 1 system is being characterised. This makes up the bulk of the work in the project and will completed by 31 May 2021. Additiv Solutions is also required to deliver 2 additional machines (Beta machines 2 and 3) to the PPF team for them to characterise the optical setup and complete all activities planned. This stage is dependent on Additiv Solutions and is expected to be completed by 30 June 2021. The project is on track, there are no remaining technical challenges.

3. This question relates to particular project at the CSIR. The Minister does not usually make statements on particular projects, and is not planning to do so in relation to the CSIR’s support to Additiv Solutions.

Reply:

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

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

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

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

Reply:

The Department acknowledges that the current SAMRAD system has had some challenges and requires an overhaul. We have begun a process of procuring a Mining Cadastral System to ensure that there is a complete effective system in place.

Reply:

ENTITY	AG ADDITIONAL RECOMMENDATIONS	CONSEQUENCE MANAGEMENT APPLIED	IF IT DID NOT TAKE PLACE, HOW IS IT ENFORCED
AFRIKAANSE TAALMUSEUM	The AG identified irregular expenditure during the audit as well as requested proof that an investigation was done regarding the previous irregular expenditure.	Although the AG has been asking for reports, letters and minutes relating to how the ATM handled identified irregular expenditure, in its recommendations, the AG did not mention any corrective steps it will be considering from their side against the Council or Management. This may be due to the nature of the irregular expenditure and the fact that it was due to administrative matters. Value for money was still achieved by the ATM. Corrective steps have been taken against officials.
NATIONAL MUSEUM	No findings applicable	N/A	N/A
WAR MUSEUM	no irregular or fraudulent expenditure incurred	N/A	N/A
UMSUNDUZI	Supply Chain Management	The UMsunduzi and Ncome Museum in order to remedy and to prevent the recurrent of this finding has appointed a Supply Chain Management Officer. With this appointment, the office of the CFO will be capacitated to deal with supply chain issues. To avoid further irregular payments and consequence management will be enforced.
FREEDOM PARK		Freedom Park has since constituted the Loss control committee to address the Irregular, fruitless and wasteful expenditure identified. The committee refer the investigated matters to Human Resources department for disciplinary process. Freedom Park has also concluded the forensic investigations to closure the raised irregular expenditures	Freedom Park has committed to continuously trained all the officials in SCM department and those officials who are responsible for the processing payments in Finance department. The SCM manager also conduct SCM policies and procures awareness on quarterly basis. Those who are charge with the responsibility of implementing consequence management will be accountable to the Executive Authority.
NELSON MANDELA MUSEUM	Nelson Mandela Museum has had no adverse findings with regards to its SCM processes and continues strengthening controls and processes to mitigate the risk flouting the PPPFA regulations.	N/A	N/A
PLAYHOUSE COMPANY	The Playhouse Company did not incur any irregular and fraudulent expenditure and the auditor general did not raise any findings in this regard. As such, no consequence management has been recommended.	N/A	N/A
SOUTH AFRICAN LIBRARY FOR THE BLIND	Please note that there has been no irregular expenditure or fraud at the SALB. Internal policies are aligned to National Treasury guidelines around this aspect and consequence management will be applied if these come to light.	N/A	N/A
ROBBEN ISLAND MUSEUM	The invocation of the Public Audit Amendment Act by the Auditor General, has not impacted Robben Island Museum on any issues currently.	N/A	N/A
SOUTH AFRICAN STATE THEATRE	Fraud was discovered in the prior years	Management immediately reported the matter to the relevant authorities, Council, the Minister of Arts and Culture, the SAPS (Directorate of Priority Crimes Investigation), and the South African Revenue Services. The SAST instituted a forensic investigation, which was undertaken by an external and independent company, and the Auditor General was also informed. The AG supported the action taken and management will report back in the next audit to ensure that the consequence management taken is reflected in the audit report. The two employees that were involved in the fraud are no longer working at the SAST, one resigned while the other one was dismissed. Their provident fund payments have been attached and further criminal and civil proceedings are underway.
MARKET THEATRE FOUNDATION	History of irregular expenditure at MTF: 2019: R2,1 mil 2020: R35 887 2021: R201 775 Written warnings	Written warnings were issued for all incidences of irregular expenditure incurred in 2019 and 2020. The expenditure incurred in 2021 was approved by the Council of the MTF. Consequence management did take place iro all irregular expenditure in the past 3 years. No staff member has had repeat transgressions. Fruitless and wasteful expenditure of R16 370 was incurred in 2020 and the full amount was recovered from the staff members responsible. No fraudulent expenditure was incurred in the 3 years.
IZIKO MUSEUMS OF SOUTH AFRICA	The recommendations of the AG, as contained in the Management Report, are followed. However, no recommendations have been made with respect to consequence management of material irregularities	N/A	N/A
NATIONAL FILM AND VIDEO FOUNDATION	The audit report has given management clear recommendation on implementing consequence management and also requested management to have timelines that must be followed. It further advise management to implement internal controls that will prevent non-compliance that lead to irregular expenditure or fruadlent one, though they clearly state in the report that their audit approach is not meant to detect fraud.	A forensic investigation was done in the past, in 2018/ 2019, when the irregular expenditure was incurred and also when there was suspicion of fraud and that resulted in the a number of executive leaving the NFVF. The NFVF continues to monitor irregular expenditure and investigate the SCM noncompliance that leads to irregular expenditure. If there is suspicion of fraud, the Council does take action to verify if indeed the fraud has taken place.	N/A
PAN SOUTH AFRICAN LANGUAGE BOARD	The AG has recommended that an investigation related to the identified irregular expenditure should be conducted and based on the result of the investigations, disciplinary steps to be taken against anyone to have the irregular expenditure or fail to comply with Treasury regulations. The AG further stated that in terms of section 225 of the IESBA code, they have a responsibility to consider reporting identified and suspected non-compliance with laws and regulations to an appropriate authority and they have escalated the matter to the Board for them to ensure that appropriate steps are taken to address the non-compliance.		The AG proposed that Accounting Officer should urgently develop, review and approve policies. Implement controls to avoid Irregular, Fruitless and Wasteful Expenditure; The appointment of a permanent committee to deal with all the irregular, fruitless, Wasteful and unauthorized expenditure will assist the AO to enforce the consequence management with recommendations.
BOXING SOUTH AFRICA	The AG has not suggested or provided guidance other than the recommendation as stated in the Management Report.	BSA has in the past not adequately addressed matters of consequence management	The entity report to the Board and sub-committee of the Board including the Audit & Risk Management Committee any non-compliant matters that may lead to or constitute Irregular Expenditure on a quarterly basis. 2. The Internal Auditor report quarterly the outcome of any investigations to the Audit and Risk Management Committee . 3. The recommendations of the investigations shall be implemented and reported by Management to the Board and the Audit and Risk Management Committee on a quarterly basis. 4. All officials implicated by the outcome of the investigation shall be subjected to BSA internal disciplinary process , whilst monies owed to BSA will be recovered in terms of the Debtors Policy
PERFORMING ARTS CENTRE OF THE FREE STATE	Nothing more than recommendations was proposed	N/A	N/A
NATIONAL ARTS COUNCIL	The AG advised that officials should be kept abreast and informed of SCM and other relevant regulations to mitigate the risk irregular and fraudulent expenditure. b) In prior years consequence management was not possible due to implicated officials leaving the employ of the NAC.	The NAC is taking a proactive approach in ensuring officials are trained on SCM and other relevant legislation. This will ensure due-diligence and compliance in relation to SCM, funding approvals and other relevant regulations.	i) Ensuring consequence management in cases of non-compliance will is added to the performance contract of Unit Heads. ii) It is enforced through following procedures outlined in the NACs internal disciplinary policy.
SAIDS	The AGSA has recommended that Irregular expenditure be investigated to identify the root cause and the necessary steps to remedy the root causes be taken or measure be put in place to prevent similar incidents from taking occurring again.	The irregular expenditure was investigated, and it was found that there was no fraudulent and criminal conduct relating to the Irregular expenditure. The entity did NOT incur any financial losses as a result thereof. Training will be provided to the employees of the entity to improve their understanding and application of the PFMA and Treasury Regulations in relation to Supply Chain Management and Procurement.	N/A
DITSONG MUSEUMS OF SOUTH AFRICA	DMSA has a Financial Misconduct Disciplinary Committee which deals with all incidences of irregular and fruitless and wasteful expenditure and the recommendations are tabled at both Audit and Risk Committee (ARIC) and Council. However, this Committee was established before the revisions to the PAA came into effect.	Consequence management does take place and the actions taken are reported at both the Audit and Risk Committee, Council and a report is included in the Annual Financial Statements. (i) Action is taken against any staff member who has transgressed the PFMA and Treasury Regulations regarding irregular expenditure and fruitless and wasteful expenditure. (ii) Through verbal or written warnings and recovery of funds lost.	N/A
ARTSCAPE	The AG has identified cases of irregular expenditure and one case of fraud. This was brought to the attention of management and Council. It was recommended that the entity must attend to these cases through the Irregular Expenditure Framework. Artscape has disclosed such cases in the Annual Financial Statements and has submitted request for condonation to the National Treasury.	In one case where fraud was identified, the incumbent was charged, found guilty and was dismissed. Financial loss was also recovered from the said employee.	N/A

Reply:

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

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

(c) See the previous remarks

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

Reply:

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

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

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

End

Reply:

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

1. – (2) Not applicable

Reply:

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

(b) – (e) Not applicable

Reply:

a) Measures to maximize communication with DIRCO

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

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

Through management reporting.

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

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

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

Reply:

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

(a) – (e) Not applicable

Reply:

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

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

End

Reply:

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

Reply:

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

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

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

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

Reply:

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

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

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

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

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

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

c) Changes in the form and content of:

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

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

(ii) The Welcome Programme

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

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

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

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

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

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

Reply:

1. Unpaid Invoices

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

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

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

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

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

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

2. Payment of unpaid invoices

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

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

Reply:

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

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

Reply:

The numbers referenced in the document are BAS Payment numbers.

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

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

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

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

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

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

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

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

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

Reply:

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

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

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

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

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

Reply:

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

Reply:

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

Reply:

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

Reply:

National Departments

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

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

No.	National Department	Rand Value
1	Cooperative Governance	R 17,850
2	Police	R 71,674
3	Home Affairs	R 636,813
4	Statistics South Africa	R 832,404
5	Women, Youth and Persons with Disabilities	R 1,712,016
6	Mineral Resources and Energy	R 4,311,452
7	Public Works and Infrastructure including PMTE	R 51,673,929
8	Water and Sanitation including Trading Entity	R 357,636,505
Total Rand Value	R 416,892,642

Provincial Departments

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

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

No.	Provincial Government	Rand Value
1	Northern Cape	R 517,636
2	Western Cape	R 600,546
3	Limpopo	R 28,471,372
4	Mpumalanga	R 97,788,753
5	Kwazulu-Natal	R 104,363,510
6	Free State	R 112,778,551
7	North West	R 351,858,302
8	Gauteng	R 389,973,533
9	Eastern Cape	R 2,114,327,450
Total Rand Value	R 3,200,679,654

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

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

No.	Provincial Government	Rand Value 31 December 2020	Worst offenders (Department)	Rand Value 31 March 2021	%
1	Northern Cape	R 517,636	Education	R 517,636	100%
2	Western Cape	R 600,546	Education	R 600,546	100%
3	Limpopo	R 28,471,372	Health	R 18,000,716	63%
4	Mpumalanga	R 97,788,753	Health	R 97,788,753	100%
5	Kwazulu-Natal	R 104,363,510	Education	R 71,235,451	68%
6	Free State	R 112,778,551	Health	R 64,549,129	57%
7	North West	R 351,858,302	Health	R 327,595,920	93%
8	Gauteng	R 389,973,533	Health	R 342,257,759	88%
9	Eastern Cape	R 2,114,327,450	Health	R 2,025,125,297	96%
		R 3,200,679,654		R 2,947,671,207	92%

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

Reply:

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

Period/ Month	TOTAL NUMBER OF TOURIST COMPLAINTS MANAGED
	2018/ 2019	2019/2020	2020/21
April	8	9	34
May	4	6	25
June	2	5	40
July	4	7	20
Aug	6	4	33
September	2	3	42
October	14	12	54
November	2	3	30
December	2	2	6
January	9	15	28
February	11	25	24
March	1	33	40
Total	65	124	376

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

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

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

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

Reply:

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

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

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

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

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

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

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

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

• The National Treasury in collaboration with DPME visited all provincial departments of Health to understand challenges that are faced by these departments in paying legitimate invoices within 30 days and to develop action plans to address identified challenges and improve compliance levels;

• The National Treasury embarked on roadshows in certain provinces to encourage government departments at various levels to adhere to commitments made on payment of invoices within the stipulated 30-day period as a critical element to support SMMEs who do business with the state;

• The National Treasury established a hotline where queries related to non-payment of invoices are received from suppliers. The National Treasury assists suppliers by following up with transgressing departments on reported late payment of invoices and provides feedback on to the supplier on (i) reasons for the delay and (ii) date payment will be effected. At a provincial level, the process is handled by the Office of the Provincial Accountant-General.

• The National Treasury is in the process of finalising a guideline on payments within 30 days to assist accounting officers with measures to implement to improve the level of compliance and pay invoices on time and also improve their internal control systems in relation to processes and procedures to be followed when effecting payments.

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

Reply:

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

Reply:

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

Reply:

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

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

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

END

Reply:

Learners transported per quarter
PROVINCE	NEEDS
	No. of Learners in Need	No. of Learners being Transported	No of Learners not being Transported
Eastern Cape	111 127	124 727	0
Free State	12 045	8 948	3 097
Gauteng	161 375	160 439	936
KwaZulu Natal	179 318	62 070	117 248
Limpopo	49 892	47 276	2 616
Mpumalanga	63 000	62 160	840
North West	72 210	63 636	8 574
Northern Cape	27 256	25 372	1 884
Western Cape	60 215	61 498	0
TOTAL	736 438	616 126	135 195

Reply:

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

Reply:

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

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

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

END

Reply:

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

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

Reply:

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

Reply:

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

Reply:

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

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

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

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

 

Reply:

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

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

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

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

Reply:

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

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

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

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

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

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

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

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

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

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

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

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

National Assembly Written Reply: 494 of 2021

________________________

Approved by the Minister of Social Development

Date……………………….

Reply:

 

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

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

Reply:

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

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

National Assembly Written Reply: 944 of 2021

________________________

Approved by the Minister of Social Development

Date……………………….

Reply:

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

End

Reply:

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

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

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

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

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

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

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

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

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

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

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

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

Reply:

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

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

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

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

Reply:

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

 

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

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

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

Name of Municipality	Position held by officials
Alfred Nzo District Municipality	Debt Collection Officer; Revenue Officer and Senior Debtors Clerk
Dr Beyers Naude Local Municipality	Chief Financial Officer
Buffalo City Metropolitan Municipality	Head of Supply Chain Management
City of Johannesburg Metropolitan Municipality	Acting Group Executive Director (4) and Acting Director
Ekurhuleni Metropolitan Municipality	Cashiers (7), Sub-Accountant; Administrators (2) ; Administrative Assistant ; Senior Clerk; Executive Managers (2); Accountant; Admin Officer; Senior Manager (2); Senior Clerk; Clerk; Manager (6) and Admin Assistant
eThekwini Metropolitan Municipality	Senior Manager; Project Executives, a total of 29 officials have been charged and disciplined
Okhahlamba Local Municipality	Cashier
Alfred Duma Local Municipality	Chief Financial Officer; Debt Collector Legal
uPhongolo Local Municipality	Senior Managers (2)
Collins Chabane Local Municipality	Manager Revenue; Manager Supply Chain Management; Manager Planning and Development
Lepelle-Nkumpi Local Municipality	Executive Manager Technical Services; Manager: Supply Chain Manager; and Executive Manager: Community Services
Modimolle-Mookgophong Local Municipality	Divisional Managers (2)
Polokwane Local Municipality	Assistant
Thaba Chweu Local Municipality	Supply Chain Manager
George Municipality	Director: Corporate Services and Director: Community Services

.

Reply:

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

End

Reply:

The Minister of Public Works and Infrastructure

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

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

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

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

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

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

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

iv) The new anticipated budget for completion

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

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

v) The new anticipated date of completion is

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

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

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

 

Reply:

The Minister of Public works and Infrastructure:

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

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

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

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

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

• On the Beitbridge Border Fence investigation, 11 Senior Management Services members were charged on 24 February 2021 and the hearings were held on 21-22 April 2021, and 5 and 6 May respectively. The hearing for members of the Bid Adjudication Committee was postponed to 14, 15, 17 & 18 June 2021 for further testimony and cross examination of witnesses. The hearing of the three implicated Senior Officials has been postponed sine die pending the outcome and finalization of a court application to interdict the process brought by one of the officials.

• On the State Funerals investigation, 2 Senior Management Services members were charged on 23 February 2021. The hearings have not been scheduled yet as the initiators of the disciplinary process are still securing witnesses and finalising outstanding information required by the Senior Council appointed to assist the Department.

• On the Irregular Appointments of 12 SMS officials’ investigation by PSC, 13 officials of which 12 are at Senior Management Level, were served with charge sheets in September 2019 and the hearing is scheduled for 26 May 2021. Reasons for the delay is due to the fact that the Department has been dealing with a point in limine and not the actual trial.

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

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

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

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

Entity	(a) (ii) steps being taken to address the extremely high vacancy rate in the entities	(b) the reason that the vacancy rate is so high	(c) total number of the vacancies that are as a result of the Special Investigations Unit investigations into corruption	(d) the status of the investigation process into the high-ranking members of the entities who are under investigation and still on full pay?
Agrément South Africa	ASA, does not have a high vacancy rate. The positions that are not filled are due to recent resignations and the posts are currently in the process of being filled.	Vacancy rate is low, as ASA is relatively a small organisation.	Not Applicable	Not Applicable
Council of the Built Environment	The current vacancy rate is 10%. The vacancy rate is high following the halting of the recruitment process due to budget costs.	A total of 4 positions are currently vacant. These are: 1. Senior Researcher 2. Legal Compliance Specialist 3. Senior IT Technician4.Strategic Planning Monitoring and Evaluation 4. Strategic Planning Monitoring and Evaluation	Not applicable	Not applicable
Construction Industry Development Board	(a) (ii) Cidb is in the process of filling these positions in accordance with the available budget. As such, we have identified 16 critical positions to be filled in the 2020/21 financial year. Of these eight (8) appointments, interviews were conducted for two other positions and are at the competency and verification stage. We have also started with the recruitment process of four additional positions, and appointments will be made in the 2021/22 financial year. CIDB has planned to fill its vacancies over the next three years, prioritizing critical positions while considering its available budget.	(b) Cidb underwent restructuring/ organizational development, and as a result, it has 153 vacant positions.	(c) Not applicable	(d) Not applicable
Independent Development Trust	The IDT is in the process of reconfiguration as endorsed by Cabinet.	The reason for the high vacancy rate at the IDT is attributed to the moratorium that was placed by the shareholder on filling of vacant positions.	There are no vacancies created by resignations directly linked the Special Investigations Unit investigations into corruption both in the current and previous financial year.	To the official knowledge of the IDT, there is none of its senior managers who are currently ‘under investigation’ and still on full pay.

Reply:

The Minister of Public Works and Infrastructure

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

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

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

Reply:

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

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

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

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

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

(i) Yes, metering is available.

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

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

Reply:

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

Reply:

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

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

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