Questions and Replies

Reply:

The following are the job requirements for the Governance Risk and Compliance Executive at the National Student Finance Aid Scheme.

Minimum

• An undergraduate qualification and a postgraduate qualification (NQF 8) in Commerce, Business Management or related fields.
• A solid understanding of governance risk and compliance processes and technology with demonstrated expertise and experience including strong governance, regulatory compliance, and enterprise risk management.
• At least 10 years’ proven experience in governance, risk and compliance management at a senior level.
• At least 5 years’ experience at an executive level.
• Proven business and management skills.
• Demonstrated strategic leadership and people management skills.
• Broad computer literacy in organisation-wide ICT systems deployments.

Beneficial Skills

• MBA or related Masters qualification.
• Knowledge and understanding of the higher education policy environment.
• Knowledge of the Public Finance Management Act and public entity standards.
• Knowledge and appreciation of the Financial Intelligence Centre Act.

Core Competencies

• Technical/professional knowledge and skill.
• Strategic and visionary leadership.
• Resource management, including people and performance management.
• Building interpersonal relationships.
• Decision-making and problem solving.
• Building strategic alliances and partnerships.
• Emotional intelligence and political sensitivity.
• Personal impact, stature and credibility.

Reply:

(a) - (b) The costs were directly incurred by the Provinces, the Hon Member should refer the questions to the provinces. 

 Response to Items (c) and (d): A total amount of R222 million has been transferred to Rand Water for the purchase of tanks, installation of the tanks, and the delivery of water to the schools identified.  This transferred amount, is still to be reconciled to the actual orders placed and the actual expenditure incurred.  Then the final value will be available.

Reply:

The details requested in the question are in the competence of the Executive Authority of Gauteng Department of Education, not the Minister of Basic Education. 

Reply:

(1) The majority of the consultations included youth who are not affiliated to any organisation, with the exception of one webinar which only targeted youth from political and student formations. In many consultation sessions, including the provincial ones and received written responses, the majority of young people participated in their personal capacities. These included youth from various parts of the country who saw it as a moral responsibility to participate in shaping this important advocacy tool.

Venue/ Type	Dates	No. of participants	Target
Physical Contact Sessions
Free State	06 November 2019	103	Non-affiliated youth
KwaZulu- Natal	12 November 2019	70	Non-affiliated youth
Mpumalanga	15 November 2019	106	Non-affiliated youth
Western Cape	20 November 2019	74	Non-affiliated youth
Eastern Cape	23 November 2019	62	Non-affiliated youth
Northern Cape	05 December 2019	50	Non-affiliated youth
Limpopo	10 December 2019	91	Non-affiliated youth
Gauteng	12 December 2019	62	Non-affiliated youth
Local Government stakeholders (Thaba Nchu)	21-22 January 2020	60	Both affiliated and non-affiliated youth
North West	07 February 2020	55	Non-affiliated youth
Other Consultations
Venue/ Type	Dates	Written comments received
Gazette	07 February – 16 March 2020	17 written submissions from individuals; and 59 written submissions from organisations
Extension and newspaper advertisements	16 March – 28 April 2020
Webinar on youth policy in the age of COVID-19	29 June 2020	Non-affiliated youth and the public at large
Extension for written inputs	01 August – 31 August 2020	Non-affiliated youth and the public at large
Special webinar	18 September 2020	Affiliated youth from political and student formations. The Portfolio Committee was invited.

2) A summary of 42 pages of comments and inputs received would be sent directly to Hon. Mphithi.

Reply:

(a) The Housing Development Agency does not have a Chief Procurement Officer.

(b) At the HDA has an Acting Chief Executive Officer, Acting Senior Manager for Supply Chain, Acting Regional Manager for Western Cape, Eastern Cape and Northern Cape, and an Acting Provincial Manager for Limpopo.

I am constrained and prohibited by the document titled “Guide to Parliamentary Questions in the National Assembly” from providing the Honourable Member with the names of the officials as requested. The document referred to states that:

“Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

(c) Chief Executive Officer: The position has been vacant since 31 December 2019.

Acting Senior Manager - Supply Chain: This position has been vacant since 1 August 2020.

Regional Manager – Western Cape, Eastern Cape and Northern Cape. The position has been vacant since 31 August 2020.

Provincial Manager – Limpopo: This position has been vacant since 2 October 2020.

 

Reply:

The Road Accident Fund (RAF) was approached by the South African Police Services (SAPS) for information relating to its investigation into the alleged theft of trust funds by the legal firm (name furnished). The SAPS did not inform the RAF of a complaint, nor is the RAF aware of a complaint, relating to the early settlement by the RAF of claims lodged by the legal firm. In respect of the claim concerned, the claim was lodged with the RAF in 2013 and settled in 2018, which is certainly not indicative of early settlement. However, anyone with information in relation to the alleged early settlement of claims lodged by the legal firm is invited to contact the Directorate for Priority Crime Investigation on 012 846 4590, or the RAF’s Forensic Investigation Department on 0800 005919. In the interim the RAF’s Forensic Investigation Department is investigating all matters lodged by the legal firm.

NW3662E

 

Reply:

a) The Department has eight hundred and thirteen thousand three hundred and forty-three (813 343) identified cases of blocked identity documents (IDs) under different categories. The afore-mentioned total includes cases that have to remain blocked as these cases are already investigated and/or marked for deletion so that they should not be used again as such.

The breakdown of the categories are as follows:

Description of Markers / Blocked IDs	Number
Immigrant does not qualify for automatic citizenship	222
South West Africa (S.W.A) cases	8214
Death - Correspondence file created (dead or alive cases or fraudulent death)	17747
Illegal Immigrants	145619
Duplicates (ID duplicates for one person having multiple identity numbers and 2 persons sharing same ID number)	517240
Under Investigation for various reasons	70323
Refer to Identification (to investigate fingerprint or biometric records)	53978
Total	813343

It has to be highlighted that when the Department delivers services to citizens and non-citizens of this country, it will come across cases of Identity theft, where an Identity document was acquired illegally, fraudulently, where supporting documents were falsified or inadvertently where identity numbers are duplicated. In all such cases markers are set on the National Population Register(NPR) as a means of ensuring the integrity and credibility of the National Population Register.

In addition, markers are set on identity numbers such as cases that are referred to as “under investigation” for various reasons or causes. When the Department receives cases of this nature, they first have to investigate these cases to establish if indeed the Identity document was acquired illegally, then those Identity numbers are definitely blocked. Where there is sufficient evidence provided to the contrary, markers are lifted accordingly.

The following reasons mainly attribute to why IDs are blocked and markers are set on the National Population Register:

• Where ID numbers are Duplicated
• Illegal Immigrants who obtained SA documents fraudulently
• False registration of Birth, Marriages and Death and;
• Investigation purposes of suspicious ID obtained fraudulently with falsified supporting documents

​b) It takes the department approximately six (6) to eight (8) weeks to resolve and to finalise blocked Identity documents, provided all required supporting documents to resolve these cases are obtained from the applicant. This includes the time when the client visits the front office and the receipt of all requested documentation to resolve the case in line with the Standard Operating Procedures (SOP’s).

END

Reply:

The Supply Chain Management Policy, February 2009, Clause 11.3 Bidding Methods, was subsequently changed twice to align to 217 of the constitution and all legislative prescripts. These were effected as the Supply Chain Management Policy, November 2018, driven by the Board of Control, and further enhanced through the current PRASA Supply Chain Management 2020 policy. This has embedded controls and standardized on how the organization executes its procurement activities across the business.

Reply:

(1)(a) There should be no reasons for refusal to register birth.

(1)(b) There is no statutory provision for refusal to register birth that meet the requirements as per the Birth and Death Act, Act no. 51 of 1992.

(i) Every child Birth should be registered as per Birth and Death Act.

(ii) Both parent’s details will be reflected on the birth certificate as per Act.

(2)(a) Where there is non-compliance to the Law and the Department is aware, corrective measures will be taken against the official/s.

(2)(b) The Constitution of South Africa promotes equality. The state may not directly or indirectly discriminate against anyone on the grounds of gender, sex or sexual orientation. Refusal to register the birth of a child on the ground that both parents are of the same gender/sex is discriminatory and inconsistent with the constitution. Managers at all levels will ensure that information on birth registration is once more disseminated to all officials responsible for birth registration. No discrimination will be tolerated and if such occurs, the Department will take the necessary actions against the official

(3) The birth registration system allows and accepts the registration of birth of a child born of people of the same sex. The affected couples can approach the Office Manager in charge at the nearest Home Affairs office to get their child registered so that they can ensure that both names of parents appear on the birth certificate.

END

Reply:

a) The Gautrain is a Public Private Partnership between the Gauteng Provincial Government and a private sector consortium by the name of the Bombela Concession Company. In terms of this contract, the Gauteng Provincial Government does not make a financial profit from the project. Instead the Provincial Government maximizes the social and economic returns from having a well-run and efficient public transport system linking key economic nodes in Gauteng.

b) The operating and maintenance costs for the financial year ending March 2020 were R1,333 billion. During this period the revenue received from fare paying passengers and other sources such as advertising income totaled R971 million. There was an estimated R32 million loss of revenue in the month of March 2020 due to the reduced number of passengers travelling because of the Covid-19 pandemic. The shortfall was covered by the Patronage Guarantee paid by the Province of Gauteng as part of its ongoing contractual commitments in terms of the PPP agreement.

c) At this stage, the feasibility study for Phase 2 of the Gautrain is with the National Treasury and the estimated project costs can only be finalized once the input of Treasury is received and incorporated in the financial model.

Reply:

The person who is declared dead even though he is still alive, is due to the sharing of the same identity number by two persons. The case of the person concerned as per details furnished was declared dead on 13 September 2014 at Vredendal, was received and referred to the relevant section for investigation.

Upon investigation, it was discovered that the client had to submit an application with supporting documents to finalise the matter. On 12 November 2020, the documents were only forwarded to Head Office, Pretoria which will be used to verify the owner of the identity number and finalisation thereof.

The applicant will be informed accordingly once finalised.

END

Reply:

A budget analysis has not been conducted to evaluate the costs of implementing the National Youth Policy:

a) The National Youth Policy specifies policy priorities for socio-economic development and empowerment of young people. An Integrated Youth Development Strategy (IYDS), which gives effect to the implementation of the National Youth Policy, is the one that would be costed.

b) The IYDS would be developed by the National Youth Development Agency (NYDA) and finalised by the end of March 2021. The nature of youth programmes, projects, and activities aligned to the National Youth Policy priorities will be specified in the IYDS. These programmes, projects and activities are the ones to be costed. A budget analysis will be available once the strategy is finalized, costed and approved.

:

Reply:

(1)(a) The total annual water allocation from the Orange River System through the Oranje-Fish Tunnel scheme that diverts water from the Gariep Dam to the Fish and Sundays Rivers to the Nelson Mandela Bay Metropolitan Municipality (NMBMM) is 58,3 million m3/annum.

(b) The water allocation is ensured through the Annual Operating Analysis of the Orange River System as well as Algoa Water Supply System, of which the NMBMM is part of the Stakeholders Operating Forum (SOF). The NMBMM operates the relevant infrastructure that provides potable water to municipal users.

(2) The NMBM is utilising its full allocation at present.

(3)(a) The Department of Water and Sanitation (DWS) issued a license to NMBM to abstract a total of 58.3 million m3/a of water from the Orange River, with the proviso that the license could be reduced back to 22 million m3/a after 20 years (by 2031). However, NMBM has requested that the license be made permanent on account of its high capital investment. The potential for further allocation in line with potential efficiency savings, to be obtained along the OFS transfer route has been considered and can be considered further, depending on the success of efficiency measures introduced. An additional allocation of 18.25 million m3/a has been recommended, to be made available from water saved through efficiency measures introduced, which could potentially be developed as a Phase 4 of the Nooitgedagt Low Level Scheme.

(b) The Orange River Project/Nooitgedacht Low-Level Scheme is one of the interventions with the following upgrades to possibly ensure increased efficiency and reduce water losses in the system that supplies NMBMM:

• Concrete-lining of the 500 km of earth canals in the Great Fish River Water User Association (GFRWUA) area of jurisdiction by the Water Users Associations (WUA).
• Improved measuring and monitoring in the GFRWUA and Lower Sundays River Water User Association (LSRWUA) areas of jurisdiction by DWS for flow measurements and the WUAs on actual water use measurements.
• Removal of reeds along the Great Fish River by the WUAs and the working for programmes.
• Optimisation of operational releases made at the Elandsdrift and De Mistkraal weirs to be implemented in a step-wise manner by DWS – this involves a revival of the existing Real-Time model.
• Refurbishment of the Darlington Dam which is currently being evaluated by the Infrastructure unit of DWS.

Reply:

a) The budget for monitoring and evaluation of the National Youth Policy (NYP) 2030 is within the budget of the National Youth Development branch in the Department. The total budget for the National Youth Development branch is R10 523 000. Of that amount, R3 134 000 is for goods and services. The monitoring and evaluation budget is within the goods and services line item.

b) The National Youth Development branch and the Monitoring and Evaluation unit in the Department will be responsible for monitoring and evaluating the NYP2030 and they will ensure collection, analysis and reporting of progress of high level output and outcome indicators tracking implementation of the National Youth Policy by government, civil society, and private sectors on a continuous basis. Data will be collated and the NYP2030 implementation reports will be consolidated on quarterly basis.

c) The Monitoring and Evaluation Framework has monitoring and evaluation tools to be used to collect selected data that is disaggregated according to age, gender, disability status, geographic location, and racial grouping.

d) The monitoring and evaluation plan and templates will be completed together with the Monitoring and Evaluation Framework by the end of March 2021. They will be consulted with relevant stakeholders, before being processed to Cabinet for approval. Capacity building sessions will also be held in all provinces with targeted implementing agents.

Reply:

The development and associated investment in Small Harbours is the mandate of the Department of Public Works. The Department of Transport as mandated by the Comprehensive Maritime Transport Policy shall develop Regulatory Framework on the operating model, safety, security and marine environment protection.

 

Reply:

1. No. Government has not yet identified the land which can be redistributed without compensation andunused land by owners living abroad,and therefore such land audit has not been conducted.

(a),(b) Falls away.

2.

a) In line with the Beneficiary Selection Policy, all beneficiaries allocated the land are subjected to a compulsory training in line with their skills and knowledge needs.

b) Government through the relevant affected Departments, will provide a comprehensive communication strategy to address the concerns of the investors on the expropriation of land.

Reply:

1. (a)In line with the decrease in the supplementary Land Reform budget, the Department of Agriculture, Land Reform and Rural Development (DALRRD)will consider a partnership model to enable support to all new farm applicants. Partners are critical and will enable DALRRD to leverage their (additional) funding.The following plans have also been put in place to support the productive use of state-land by successful applicants:

• Provision of conditional grants to enable access to production inputs, implements, on-farm infrastructure, training and mentorship, market access and South African Good Agricultural Practices (SA GAP) for those producing perishable products.
• Re-introduce blended funding and together with partners like the Industrial Development Corporation (IDC), develop and support suitable land for high value, export-oriented products.
• Repurpose micro finance scheme to increase access to cheap loans through the Land Bank which are affordable as many will be start-up operations managed by women and youth.
• Furthermore, our partnerships with the commodity organizations will ensure that we provide specialised technical adviceandlinkbeneficiaries to existing markets and study groups;

b) Training, recapitalisation and other costs will be paid from the conditional grants budget line item of farmer support/post settlement.

c) The process of advertising the properties is done in a fair and equitable manner to ensure that all qualifying citizens are having an equal opportunity to access and submit their applications. This includes publishing in different platforms and in various official languages. The applications will be scrutinized by a committee to ensure proper allocation in line with the criteria outlined in the advert. The target groups for the project are women, youth and persons living with disabilities to aid in shaping the economy and agriculture for the future and to remedy the gaps for previously marginalised groups. Although persons falling outside these target groups may still apply, priority will be given to the above groups. Clear criteria and Standard Operating Procedures have been developed to ensure that applications across the country are treated consistently and fairly by applying the same standards.

2. No assessment was done to determine if there are interestedapplicants in Gauteng and Western Cape; however; there is also no state-land available to be released in the provinces of Gauteng and Western Cape. It should be noted that applicants from any province, including Gauteng and Western Cape may still apply for land in any of the provinces where land has been made available for agricultural leasing provided they are willing to relocate if appointed as lessees on such properties. Therefore, if there is interest from the residents in Gauteng or Western Cape, they can still apply in line with the current advert.

Reply:

1. (a)The South African Consul-General arrived in Los Angels at the end of January 2020. While searching for a suitable residence for the CG, the lockdown (Stay-at-Home) Order was issued in Los Angeles in March 2020, which made it difficult to continue searching for and viewing properties.

(b) Although more than 20 properties were viewed in areas recommended by the local office of the US State Department, no suitable property was identified during this initial period. As part of the search, three properties deemed to be suitable were later identified, but the Mission lost the properties due to reasons related to the landlords’ decision.

(2) The previous CG vacated the property in July 2019, which is 5 months before the arrival of the incumbent CG, who arrived at the end of January 2020. In this regard, it was deciced that it was not cost effective to keep renting an unoccupied property (CG’s residence), so the contract was terminated or not renewed with a view that another property will be searched for as soon as the CG arrives.

Reply:

SANRAL jurisdiction is limited to the declared national road network of South Africa. In terms of vicinity of Phokwane in the Northern Cape, National Route N18 Section 1 from Warrenton to the NC/NW Border with a total length of 54,6 km, falls under SANRAL.

The following two major development and improvement projects for this portion of N18/1 has been approved in SANRAL MTEF budget:

1. N18 Section 1: Warrenton - Vaal-Harts (27,0 km in length) – Magareng Local Municipality
2. N18 Section 1: Vaal-Harts - NC/NW Border (27.6 km in length) - Phokwane Local Municipality.

For both projects the procurement of Engineering Services will commence during the 2021/22 financial year. The design period is scheduled for 2 years, with construction commencing during the second half of 2023. The scope of works for both projects entail the reconstruction of road pavement layers, the widening of the road width to at least 13,4 metres, construction of passing lanes, the upgrade of all major intersections and the provision of non-motorised transport infrastructure such as formalised footpaths/cycleways and public transport drop off and pick up facilities. As with all SANRAL projects, each of these projects will also incorporate a community development project that focus on priorities identified based on inputs from the community.

The estimate costs of the projects are approximately R920 million (R460 million each), with minimum of 30% of work going to sub-contractors. It is anticipated that these projects will bring much needed economic opportunities and improved road safety to the Local Municipalities and surrounds.

Reply:

(1)(a) The Passenger Rail Agency of South Africa (PRASA), submitted the Moloto Rail Corridor, Public Private Partnership (PPP), Treasury Approval 1 application to National Treasury for consideration, on 30 October 2014. On 3 December 2015, the Director General of National Treasury responded to the CEO of PRASA informing him that the Treasury Approval 1 application was not granted.

(2)(a) Membership of the Political Oversight Committee (POC) consisted of political representatives at the level of Minister/Member of the Executive Council/Executive Mayor and representatives from Departments, as follows:

• Department of Economic Development;
• Department of Finance or National Treasury;
• Department of Trade and Industry;
• Department of Water and Environmental Affairs;
• Department of Rural Development & Land Reform
• Gauteng Department of Roads and Transport;
• Limpopo Department of Roads and Transport;
• Mpumalanga Department of Public Works, Roads and Transport;
• Nkangala District Municipality;
• Sekhukhune District Municipality;
• City of Tshwane Metropolitan Municipality;
• Thembisile Hani Local Municipality
• Dr JS Moroka Local Municipality
• Presidential Infrastructure Coordinating Committee (PICC) – Strategic Infrastructure Project 1 (SIP1) Coordinator

(2)(b) The Chairperson of the Political Oversight Committee was the Minister of Transport.

Reply:

South African Civil Aviation Authority (SACAA)

The process for the approval of any aerodrome, inclusive of a heliport, is as follows:

a) The applicant applies to the SACAA by submitting an application form.

b) A preliminary/initial inspection is conducted by Inspectors from the SACAA, in this case comprising of an Infrastructure Inspector and a Flight Operations Inspector to assess the suitability of the proposed site for helicopter operations and a preliminary inspection report with recommendations is generated and forwarded to the applicant.

c) The application is published in Government Gazette (in this case Gazette #41871 of 12 September 2018) for public comment.

d) As soon as the recommendations have been implemented, the applicant forwards a request to the SACAA for a final inspection to be conducted.

e) The initial issue of the approval and restrictions thereof is subject to the applicant complying with the SACAA regulations as well as consideration of any public comments received through the publication process. (In this case there was no comments in relation to any environmental matter).

f) Licenses/approvals are issued for a period of up to 5 years, as provided for under the Civil Aviation Act, Act No 13 of 2009, and, during the interleading periods, compliance is monitored through surveillance inspections, as per international standard.

1. The specified process was followed with the Ultimate Heli application.

2. Third party information can only be released with the consent of the approval holder. The reports contain 3rd party proprietary and commercially sensitive information, is confidential in nature and may contain personal information, which was provided in confidence, and the SACAA does not have consent from the operator to release such.

Reply:

(a) The total number of road accident claims that have been lodged against the Road Accident Fund (RAF) and have been awaiting settlement, as at 9 October 2020, for more than (i) 10 years is 6 933 and (ii) five years is 39 214,

(b) the date on which the outstanding claims will finally be settled is unknown at this time due to the multitude of variables that are inherent in the adversarial, common-law, claims dispensation administered by the RAF, which variables include but are not limited to, delays attributable to claimants’ attorneys, amongst others, failing to locate the claimant in order to take instructions, failing to accept the RAF’s tender, failing to set the matter down for trial, failing to pursue the quantum aspect of the claim after a judgment has been obtained in respect of the merits (the liability aspect of the claim), failing to submit financial records or other substantiating evidence in support of a claim, and failing to submit actuarial reports in support of a claim; the non-availability of medical experts to assess claimants, compile reports and, or, testify in court; the failure by expert witnesses to agree on important aspects of the claim; the long lead time to obtain a trial date; and, the investigation by the RAF into potential fraudulent aspects of the claim; and

(c) although the aggregated total amount claimed in respect of the claims referred to in paragraphs (a)(i) and (ii) above is R49 985 029 061, the total amount it would take to settle (pay) all of the aforementioned claims is unknown at this time due to the multitude of variables that are inherent in the adversarial, common-law, claims dispensation administered by the RAF, which variables include but are not limited to, the claimant succeeding in proving the merits of the claim (where the claim was repudiated by the RAF); the apportionment of fault as determined by the court (where the percentage contributory negligence was in dispute, or where a third party was joined on the basis of his, her or its alleged contributory negligence); amendment by the claimant of the claimed amount based on, inter alia, fresh medico-legal or other expert reports, or new medico-legal or other expert reports, or new case law, or amendments to legislation; receipt by the claimant of a collateral benefit, which may qualify for deduction from the claimed amount; receipt by the claimant of an accelerated benefit, which may qualify for deduction from the claimed amount; determination by the Compensation Commissioner of the workman’s claim, which may qualify for deduction from the claimed amount; a change in the employment status of the claimant, which may have a bearing on the basis of calculation of the claimed amount; a change in the rehabilitation outcome of the claimant, which may have a bearing on the basis of calculation of the claimed amount; the death of the claimant, prior to settlement or the court order; as regards a claim for non-pecuniary loss, the timing of the death of the claimant, prior to, or after, close of pleadings, which may have a bearing on the right to, and calculation, of amount claimed in respect of non-pecuniary loss; settlement reached between the RAF and the claimant and, or, the sum awarded by the court; the outcome of appeals and reviews, in respect of orders by the lower courts; the application of the statutory limit on the quantum of claims for loss of support or loss of income; adjustments to the amount claimed to provide for inflation; the issuing by the RAF of an undertaking, instead of making payment of a lump-sum in respect of the costs of future medical expenses; and, where agreed, the payment of loss of income or loss of support in instalments.

Reply:

a) There are 9 778 241 hectares of state land registered under the custodianship of DALRRD in the name of the State.

b) The state will continually make agricultural land available through several processes such as disposal, allocation, leasehold etc.

Reply:

No.The Department is not informed of such registration.However, the provincial office of the Department is currently updating themembership list of the existing Ncora-Qumanco CPA in 10 villages of Ncora in preparation of an AGM. The Project officer responsible for this CPA is Miranda Tengani based in the Queenstown office.

Reply:

A meeting was held with the Black Women and Youth Businesses in wine industry in August 2020. Subsequently, a task team was established that has engaged with role players in the wine industry during September 2020. The task team will followup on all issues raised and provide regular feedback to the wine industry accordingly.

Furthermore, as part of its transformation trajectory, the Department of Agriculture, Land Reform and Rural Development has introduced measures to empower and mainstream women in the sector, including women in the wine industry. The existing measures are as follows:

i) The Beneficiary Selection and Land Allocation Policy seeks to ensure gender equality and inclusivity by unlocking access to land to the most marginalised and vulnerable groups, specifically to smallholder producers, women, youth and people with disabilities, rural and peri-urban residents and military veterans. This policy advocates for 50% women, 40% youth and 10% people with disabilities.

ii) Norms and Standards for the inclusion of Vulnerable Groups (NSVG) that is a tool used to influence and provide guidelines for setting measurable targets for departmental programmes to prioritize vulnerable groups and to articulate the precise targets and timeframes. The NSVGadvocates for the allocation of at least 50% support to women, 50% to youth (of which 50% are agricultural graduates) and 6% to people with disabilities.

iii) Draft Comprehensive Producer Development Support Policyaims toregulate and guide the provision of support to the various categories of producers, thereby contributing to a sustainable and competitive agricultural sector. Through this Policy, government commits to promoting conditions which enable allpreviously disadvantaged citizens and targeted groups (women, youth, people with disabilities and military veterans) to gain access to land. This will be achieved through ensuring no less than 50% allocation of agricultural farming land for smallholders under the Redistribution Programme to women, 40% to youth, and 10% to people living with disabilities.

Reply:

I have taken note of the question from the Honourable Dr S SThembekwayo, and wish to confirm that the road in question is not part of the asset register of the national road network. As you may be aware that the planning, construction, maintenance and operations of all national roads are being managed by the South African National Roads Agency SOC Limited (SANRAL).

My department has made enquires and were informed by the City of Tshwane that the construction of road k54 between k22 (old Bronkhorstspruit road) and k69 (Hans Strijdom, approximately 6.8km) as well as a section of road d2561 from k54 to Tsamaya road in Mamelodi (approximately 2.2km), CONTRACT NO: DRT 91/06/2016. King Civils were appointed as a main contractor. Project commenced on 22 January 2018. The Contractor is responsible for the area in which the reported potholes are concentrated and are responsible for day to day maintenance until they complete the doubling of the stretch of road as per their contractual obligations.

The contractual completion date is 4 November 2020

This will be met, due to legal matters that must be resolved to address the illegal invasion of the road reserve.

Reply:

The Minister of Public Works and Infrastructure:

1. The National Department of Public Works and Infrastructure (DPWI)

Financial years	2017/2018	2018/2019	2019/2020	2020/2021
a) Financial misconduct b) Irregular expenditure c) Failure to comply with procurement procedures,	43 employees found guilty 26out of 43 employees reported above committed irregular expenditure 24out of 43 employees reported above found guilty for non-compliance with procurement procedures	50employees found guilty 40 out of 50employees reported abovecommitted irregular expenditure 35 out of 50employees reported above found guilty of non-compliance to procurement procedures	27 employees found guilty 10 out of 27 employees reported above committed irregular expenditure 10 out of 27 reported above found guilty for non-compliance with procurement procedures	7 employees found guilty 2 out of 7 employees reported abovecommitted irregular expenditure 1 out of 7employees reported above found guilty of non-compliance with procurement procedures
d) Abuse of sick leave	0	0	0	0
e) Poor work performance	0	0	0	0
f) Theft	0	1employee found guilty of theft	2 employees found guilty of theft	0
g) Sexual misconduct	0	0	1 employee found guilty of sexual harassment	0

The National Department of Public Works and Infrastructure does not have access to disciplinary records of Provincial Departments.

2. (a) The Department of Public Works and Infrastructure (DPWI) does not have a mechanisms for establishing a national blacklisting register which can be consulted by government institutions. The Department of Public Service and Administration(DPSA) is responsible for overseeing misconduct cases across government. The DPWI relies on the PERSAL system which is monitored by the DPSA together with the National Treasury upon which we are able to detect during appointments the status of employees who were either found guilty or not of misconduct in the public service.

The current mechanism (PERSAL System) is effective and reliable in providing disciplinary records of employees but it is utilized internally for the DPWI.

Reply:

1. Yes, the NRS 047 and the relevant NRS 048 specifications are attached.

2. In terms of the license condition 5.4.1 the Energy Regulator is entitled to collect information such as the maintenance plans of the licensee, the process of collecting and examining such information is always undertaken during the annual compliance audits that the Regulator conducts on selected licensees each year. The City of Ekurhulenihad not been audited before, and had therefore not submitted its maintenance plants. It is however on the list of the licensees to be audited during this financial year.

3. According to license condition 5.3.2, the licensee is required to always prepare the maintenance plans annually and adhere to this, however it is not the requirement for the licensee to submit the report to the regulator annually. The maintenance plans are scrutinised when the licensee is selected for a compliance audit.

Reply:

As per the Ministerial Handbook, official vehicles are provided to Ministers and Deputy Ministers in order for them to carry out their official duties. In instances where official vehicles are not available, vehicles are then hired.

As per our records, cars were hired for Minister Ebrahim Patel for use in cities where no official vehicle was available, as follows:

Minister Ebrahim Patel

Place of hire	Travel date	Return date	Amount (R)	Supplier Name
Port Elizabeth	25-Jul-19	25-Jul-19	1 565,73	Phakisa world fleet Solutions Isando (Hwt.Pks)
Durban	12-Jul-19	13-Jul-19	1 771,81	Phakisa world fleet Solutions Isando (Hwt.Pks)
Durban	14-Sep-19	15-Sep-19	3 932,35	Woodford Car And Bakkie Hire (Hwt.Wch)
Durban	4-Oct-19	4-Oct-19	2 970,68	Woodford Car And Bakkie Hire (Hwt.Wch)
Durban	16-Oct-19	18-Oct-19	6 363,34	Woodford Car And Bakkie Hire (Hwt.Wch)
Total			16 603,91

The records for the Deputy Ministers are still being collated and will be provided as a supplementary reply as soon as possible.

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Reply:

Before a mining right is granted, a thorough consultation with interested and affected parties including other government department is conducted. In a situation where there are communities, and are to be relocated, a consultation process/Public participation should be undertaken by the mine or by an applicant for a mining right.

An all-inclusive method(s) should be utilised to ensure that community groups can take part in the consultation process in a fair and transparent manner.

 

Reply:

(a) There has been no increase (0%) on the Bulk Water Charges imposed on all Water Boards for the 2020/21 financial year. The Department of Water and Sanitation (DWS) has also committed R600m in relief funds that will be distributed to cash strapped Water Boards. These funds will also go some way in helping the Water Boards to absorb the increase in raw water charges.

(b) Significant concessions have been given to the Domestic and Industry Sector with regards to Raw Water Use Charges. In terms of Water Resource Management Charges (WRMC), if the charges had been approved in line with the policy (Raw Water Pricing Strategy), the charges would have been increased by a maximum of fifty-six percent (56%). In terms of Water Resource Infrastructure Charges (WRIC), a maximum increase of 16.5% would also have been approved. The Capital Unit Charge (CUC) which is the charged levied on users that take water from schemes that are funded off-budget has not been increased for the 2020/21 financial year. The zero percent (0%) increase has been imposed on those schemes that supply water to domestic users.

It is important to note that all these concessions have had a negative impact on the performance of the Department of Water and Sanitation (DWS) in relation to water resource management functions, water resource infrastructure development and maintenance. The DWS provides assistance to the municipalities through the Regional Bulk Infrastructure Grant (RBIG) and the Municipal Water Infrastructure Grant (MWIG) for the development of new infrastructure and refurbishment thereof to ensure provision of clean Water.

Reply:

The Poultry Master Plan was developed with input from the African Farmers Association of SA (AFASA) and the SA Poultry Association (SAPA), together with other stakeholders such as organised labour, importers and public entities.

In the initial phase of the Master Plan implementation, the focus has been on tariff adjustments to protect the sector, accompanied by the expansion of domestic investment to increase output. The industry was set targets for promotion of black-owned poultry farms. In all three areas, progress has been made: poultry tariffs were increased in February 2020, investment of over R750 million has been put into the sector and local production of chickens has increased in the past eight months.

In the next phase of implementation, a proposal is being developed for a localisation designation to enable state-entities to ensure that poultry used within the state (eg at hospitals) is procured from local producers. Once this phase has been implemented, data on the levels of participation by poultry producers can be collected.

The Poultry Master Plan has the objective inter alia of promoting transformation across the full value-chain particularly among integrated producers, to ensure that the presence of black South Africans are not limited to poultry farming, where returns are in many cases modest. The DTIC has not in the past collected detailed data on ownership in the poultry feed sector – however, with the focus in the Master Plan on transformation, this will be done in future, bringing together information across different public entities and sister departments.

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Reply:

a) The Department provided its views in terms of the potential impact that the merger between Seriti Resources Holdings and SA Energy Coal may likely have on the energy coal sector. Amongst others, these views included: (i) the potential impact the merger might have on security of coal supply, particularly on Eskom electricity generation requirements;(ii) the electricity pricing effects the merger might have on the economy given the current socio economic challenges the country is confronted with.

b) Security of coal supply is of primary importance to ensure Eskom meets the demand for electricity. Eskom for the past three years embarked on coal procurement exercise to ensure that long term coal supply agreements are secured for the majority of the coal fired power stations. Ownership and access to the state’s mineral assets is effective through the Mineral and Petroleum Resources Development Act, 2002 (MRPDA) and Mining Charter. The DMRE is the authority in terms of determining effective ownership of these assets. The Department of Trade, Industry and Competition (DTIC) intervenes through the Competition Commission if there are likely effects of substantially lessening or prevention of competition in the sector.

Eskom on Managing Risk

1. Eskom estimates that the Seriti supply share after the transaction would increase to approximately 28% from 17% based on FY2020 delivery volumes. It is estimated that the two largest suppliers will account for approximately 55% of Eskom’s coal supply based on FY2020 delivery volumes. However, this may vary slightly subject to changes in Eskom’s coal demand and the mines’ production profiles.

2. Approximately 28% of Eskom’s supply is supplied from the cost plus mines. Post the Seriti/South32 merger, this percentage will remain the same and is approximately half of the 55% of the post-merger supply. Under the cost plus arrangement, Eskom is responsible for the majority of the operating, capital and rehabilitation costs of these mines. The supply risk also resides with Eskom.

3. The remaining 27% of supply from the two largest suppliers (post-merger) would be from fixed price long term and medium term contracts. These are arm’s length contracts where, the mine is responsible for the capital and operational expenditure as well as all the associated mining risks. Should the supplier not deliver as per the contractual terms and conditions, there are contractual recourses including but not limited to the rectification of undersupply and penalties. Approximately 80% of the 27% mentioned above mainly relates to the coal supply to Medupi and Matimba Power Stations, which are supplied by Exxaro. There is an excess 16 Mton coal stockpile at Medupi which could cater for any short term coal supply risk at Medupi or Matimba.

Reply:

(1) Please see attachment.

(2) Yes.

(3) The provinces are busy triangulating and verifying the information when learners sit for examination. 

Reply:

The Department of Water and Sanitation (DWS) does not consider the Orange River as being under drought conditions and there are no water restrictions imposed on water resource use in the upper Orange River catchment. Therefore, no special drought plans are under consideration. However, the Orange River does have seasonal variations in terms of flow, with lower flows experienced in late winter. Alternative sources such as boreholes and springs are developed and utilised as alternate standby sources.

The Department is aware that the Joe Gqabi District Municipality (JGDM) does have water distribution constraints to the extent that there is a moratorium on further developments until the water services are upgraded in line with the Aliwal North Water Master Plan. The Joe Gqabi District Municipality does have short and medium term plans to improve water services in the area as follows:

a) Two projects already commenced with are the construction of two raw water off-channel storage dams at the water works (MIG funded) and replacement of asbestos cement bulk pipeline and leaking valves (WSIG funded),

b) Funding is currently still being sought for further short term plans to:

• Build a new 2 Ml Clear Water Sump and install a high lift pump at the WTW,
• Build a 1,2Ml reservoir and a 400kl elevated tank at the springs; and install a high pressure gravity main.

c) Medium Term Plans:

• Upgrade of WTW by 2,5Ml and installation of a desalination/package plant at the springs,
• Replacement of the old 200mm asbestos cement rising main and upgrade of pump station and main reservoir at the springs.

Reply:

1. The Honourable Member should know that our intervention regarding safety and security at schools are not localised, but are national.  The National School Safety Framework (NSSF) remains our primary strategic response to school violence. It is a  comprehensive approach that coordinates and consolidates all school safety interventions in the sector.  The NSSF is based on a social ecological systems model which locates the school within its broader community.  It relies on collaboration and partnership for more coordinated approach to responding to school violence. 

2.The Department of Basic Education, through the School Safety Directorate has established a platform (What-App Group) for ongoing mentoring of schools. 

3. The Department of Basic education through School Safety Committees and Quality Learning and Teaching Campaign (QLTC) is mobilising communities, including Mopani District communities towards ownership of schools as community centres and future plans include a move towards encouraging communities towards mobilizing the alumni to adopt the schools which they previously attended that contributed to their education foundation to rekindle the love of education by both the youth and the communities

4. The  Department rolled out Bullying Prevention and Positive Discipline programmes in all Limpopo Education Districts, including Mopani District partnership with Active Education to address incidences of violence, homophobic bullying and cyber-bullying in particular.

5. Safety Committees at local levels and QLTC constantly run campaign to encourages the community participation to foster common identity and building social cohesion and make schools centres of our heritage

6. Communities are encouraged to protect the schools from criminal elements by participating in Community Policing Forums (CPFs), through the existing DBE Protocol Partnership with the South African Police Service (SAPS).

Reply:

a)  (i) The temporary electricity distribution licence granted to City of Ekurhuleni is still valid as it has two extension letters of which the second extension letter, dated 8 May 2007, extents the licence until 36 months after the promulgation of the Licensing Regulation made under the Electricity Regulation Act, 2006 (Act. No 4 of 2006). Until the Minister of Mineral Resources and Energy promulgates the Licensing Regulations, the temporary licences remain valid.

(ii)Refer to (i) above.

b) There are no legal implications for the City of Ekurhuleni operating with a temporary licence, as it was issued and extended by NERSA in line with section 4 (a) of the Electricity Regulation Act, 2006 (Act. No 4 of 2006).

Reply:

The Minister of Public Works and Infrastructure:

Yes, the Department owns the property in question.

a) The site is made up of 4 erven and the total size is 3 830m².

b) It is currently occupied by the Departmental official (Director: Property Management in the Cape Town Regional Office)

I was informed that request to occupy the state-owned property was authorised in April 2018 by the then Regional Manager, Mr F Johnson, then Chief Director Mr B Kgasoane and Mr B Matutle, then Deputy Director-General IGC.

I have requested the Acting Director-General, Mr I Fazel, to investigate the matter.

Reply:

1. The Department does not have specific date at which the refinery is scheduled to start operating, what was shared with the Department from Astron Energy is that the assessments of the incident arestill ongoing and there is no firm date of when the refinery would come back to be operational.
2. Safety and environmental inspectionsand/or audit do not fall within the ambit of the Department of Mineral, Resources and Energy.

Reply:

1. The Department of Mineral, Resources and Energy does not conduct any environmental audits, as these fall under different departments.

2. The refinery is not operational at the moment, however in terms of the Petroleum Products Act, the refinery was compliant prior to the incident.

Reply:

1. Saldanha Terminal

(1)     For each storage facility owned, leased and/or operated by the Strategic Fuel Fund, (a) on what date was the last (i) maintenance and (ii) refurbishment undertaken on the storage tanks and (b) what was the cost of such maintenance and/or refurbishment in each case;

• Saldanha Terminal is made of Concrete Underground Closed tanks which do not require maintenance or refurbishments on the Saldanha tanks. There are however scheduled inspections to test the tanks structure and roof supports. In all inspections done to date there were NO abnormalities that were detected. This include the tank settlement test that was done in 2016, where no discernible changes since commissioning were observed.

(2) (a) on what date was each specified facility last audited for environmental compliance and (b) what were the findings of the last environmental audit in each case;

(a) The last full recertification Audit was conducted by SABS on ISO14001 2015 on the 10TH to the 13TH March 2020

(b) One “minor” finding was issued and cleared by SFF Saldanha and we have thus been recertified under the new ISO 140001 2015 StandardCertificate}.

(3)   whether there are any indications of seepage into the ground and/or the groundwater table; if not, what is the position in this regard; if so, what are

the relevant details of the seepage?

A “Ground water sampling” exercise is done bi-annually and the last one was done in May 2019 and there is no seepage detected to date.

​​2. ​Milnerton Terminal

1. For each storage facility owned, leased and/or operated by the Strategic Fuel Fund;

a) on what date was the last Maintenance:

(i) Maintenance of the SFF Milnerton tank farm is an on-going exercise based on a schedule created as per the operating and manufacturers specification of a particular equipment. These schedules are distributed from the Maintenance planner’s office to the relevant staff (electrical or mechanical). Another form of maintenance is “adhoc” as and when a breakdown occurs it is attended to.

(ii) 1999 - 2002

• During this period 11 tanks were refurbished.

​b) For each storage facility owned, leased and/or operated by the Strategic Fuel Fund, what was the cost of such maintenance and/or refurbishment in each case:

• SFF paid market related costs as obtained following its approved tender process.

2. On what date was each specified facility last audited for environmental compliance:

a) An “Environmental Legal Compliance Audit” is conducted bi-annually and the last audit was done in June 2019.

b) The results of these audit was 2 minor findings that were closed-off and terminal received certification.

3. Whether there are any indications of seepage into the ground and/or the groundwater table; if not, what is the position in this regard; if so, what are the relevant details of the seepage?

• A “Ground water sampling” exercise is done bi-annually and the last one was done in December 2019 and there is no seepage detected to date,

 

Reply:

1.

a) An independent technical audit of Ekurhuleni was done in January 2006. Another audit was done in 2020 but the focus was on the business assessment.

b) The report on the independent technical audit was submitted in the same year in May 2006. Due to COVID induced travel restrictions that was in place when the business assessment was done, the site inspection on the audit conducted in 2020 will be done in early 2021.The draft report of the business assessment will be sent to the Licensee by the end of November 2020.

c) It was recommended that:

1. There must be investment in the maintenance and the refurbishment of the networks and on skilled staff.
2. The Department must operate as an integrated entity.
3. The maintenance and refurbishment plans must also be integrated.

d) According to our knowledge, there were 45 intake points in 2005/6 and there are now 55 intake points.

Increased Infrastructure

The Department of Energy has since 2006 increased its infrastructure in the various Depots in Ekurhuleni as follows:-

Electrification of Subsidized Households	High Mast Lights	Street Lights	Substations
92 161	977	15 458	Upgrading/Construction of 13 Substations

The 92 161 additional connections excludes town planning development connections for non-subsidized households, which also forms part of the electricity grid and infrastructure to be maintained by the Department.

2. NERSA requests all audited licensees to develop Corrective Action Plans so that this can be monitored. The same will happen with Ekurhuleni Metro when the site inspection has been done and a final report has been shared with the Licensee. One of the objectives of the NERSA audits is to encourage licensees to do self-monitoring so that the networks do not deteriorate.

Reply:

The Minister of Public Works and Infrastructure:

Road construction is the responsibility of the Provincial Department therefore the question should be referred to the MEC of the relevant Province.

Reply:

Honourable Member, any assistance required by our communities is rendered by municipalities. Should a municipality have difficulties, it approaches the Water Board that services the area. In this case, Magalies Water would assist the municipality.

I wish to point out that the legislative mandate of the Department of Water and Sanitation is to ensure that the country’s water resources are protected, managed, used, developed, conserved and controlled in a sustainable manner for the benefit of all people and the environment.

The Water Services Act, 1997 refers to municipalities as Water Service Authorities (WSAs) responsible for distribution (reticulation) of water and to supply sanitation services. The Water Services Act in section 3 outlines the right of access to basic water supply and sanitation which mandates that “everyone has a right of access to basic water supply and basic sanitation” and places the responsibility on Water Services Authorities to ensure that they develop a Water Services Development Plan (WSDP) to ensure the realisation of this right.

Section 11 of the Water Services Act, 1997 mandates that “every Water Services Authority has the duty to all consumers or potential consumers in its area of jurisdiction to progressively ensure efficient, affordable, economical and sustainable access to water services.”

.

Reply:

a) The requirements as it relates to borrow pits are not informed by the nature of ownership of the land over which they are to be undertaken, but the distinction revolves around the entity that intends to undertake such borrow pit activities. The distinction is in the following manner.;If a natural person or an entity that intends to undertake the borrow pit activities does not form part of those that are not exempted in terms of Section 106 of the Mineral and Petroleum Resources Development Act (Act 28 of 2002), they will be required to lodge an application for either a mining permit(Where the area does not exceed 5 hectares and the period of activities may not be longer than the period for which a mining permit can be valid for) or a Mining right (Where the area exceeds 5 hectares and the activities may take longer than the period provided for mining permit). It is important to highlight that the applications for either mining permit or mining right are to be lodged simultaneously with the application for Environmental Authorization in terms of the National Environmental Management Act (Act 107 of 1998).

In case of entities, that are exempted from applying for either a mining permit or a mining right in terms of Section 106 of the MPRDA, they were previously only required to submit the application for an environmental authorization, however following the delisting of this activity from the listing notices, they are currently under no obligation to submit such unless if any of the activities to be undertaking over and above the mining of material may fall under the listing notices.

b) As indicated above, the requirements are not informed by the nature of land ownership. Whether it’s Private or State-owned land, the requirements as outlined above would apply.

(c) The Department of Mineral Resources and Energy is the authority responsible for ensuring compliance by the entities/persons that are undertaking borrow pits activities. It is however imperative to highlight that following the delisting of activities exempted in terms of Section 106 of the MPRDA IN 2017, the activities that are currently undertaken by the exempted State Owned Entities are excluded from this compliance monitoring, although the DMRE and the Department of Environment, Forestry and Fisheries have now embarked on a process of effecting the amendments to overcome this gap. The draft documents are already in place and DEFF is in the process of finalizing the same to enable the DMRE to resume this responsibility of regulating the entities that are exempted from applying for either mining permits or mining rights.

d) The measures to ensure compliance are invoked as necessitated by the nature of non-compliance and differs from one case to the other. This may amongst others include, a Compliance Notice being issued in terms of Section 31L of NEMA with the instructions for corrective measures/steps to be effected. Failure to adhere to these administrative measures in terms of NEMA may also lead to Criminal measures being invoked.

In a case where the said borrow pit would have necessitated that the mining permit or mining right be issued (those that are not exempted in terms of Section 106 of the MPRDA), the said activity may also be suspended in terms of MPRDA. In severe cases of non-compliance, such a mining permit or mining right may be cancelled in terms of Section 47 of the MPRDA, after all the due administrative processes have been followed.

e) Firstly, if the nature of non-compliance warrants that the DMRE should take the appropriate steps as provided for in the legislation, such a family may bring the aspect to the Department’s attention, so that the measures as outlined above can be considered.

(2) With regard to the six children who have reportedly died in three borrow pits in the Moretele Local Municipality, North West, in the past few years, what (a) measures is his department taking to ensure that there is stricter compliance and enforcement and (b) support will his department provide to the families of the deceased children if the deaths were found to have been preventable and due to negligence and/or non-compliance?

Reply

1. The Department will conduct an investigation to establish the facts before responding comprehensively.

(b) It is imperative to be familiar with the actual circumstances in order to offer appropriate assistance.

 

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is set out below. In light of the challenges faced by many South Africans as a result of the coronavirus pandemic, I will be requesting a review of the reserves policy.

The reply of the NLC Commissioner follows:

1. The National Lotteries Commission is a Public Finance Management Act, Act 1 of 1999, Schedule 3A entity. The NLC was established with the primary mandate of regulating lotteries and sports pools. From that regulatory activity, the NLC is enabled to distribute funds destined for good causes.

The NLC does not receive funding from the fiscus. The main source of revenue is derived from the share of National Lottery ticket sales from the Operator. The investments (that is, reserves) aim to sustain the operations of the organization during Licence transitions where revenue received from the National Lottery Operator is low as observed in the previous two licenses. Also in instances where the Operator may not operate. The reserves will supplement the grant allocations for good causes and the operational costs of the organisation for a period of twelve (12) months in instances where there is no revenue flowing into the organisation. This will ensure that the NLC continues to deliver on its mandate.

Section 25 of the Lotteries Act allows the NLC to invest any money which is not required for immediate allocation. Investment income diversifies the organization’s Revenue and mitigates the risk of a single source of revenue derived from a share of National Lottery ticket sales. Investment income therefore significantly contributes towards funding the operational expenditure of the organisation, consequently the NLC is able to maximize contribution to fund good causes through grant allocations.

2. and (3) During the 2019/20 financial year, the NLC had only one investment with Rand Merchant Bank which had an initial investment period of five years. The investment has subsequently matured and the NLC is in the process of re-investing.”

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Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is set out below. I advise that it has been clarified by the NLC that the (1)(b) below refers to the NLC Senior Manager : Financial Accounting.

Reply by Commissioner Mampane:

“(1)(a) The NLC has an approved investment policy in compliance with Treasury Regulation 31.3.1. Investments are made in terms of the investment policy approved by the NLC Board.

(b) Investments are managed by the NLC.

(c) The performance of investments is monitored on a monthly basis.

(2)(a)(i) No investments have been written off. (ii) Not applicable

(b) Not applicable

(3) The National Lotteries Commission is a Public Finance Management Act, Act 1 of 1999, Schedule 3A entity. It does not receive funding from the fiscus. The investments support the organisation as follows –

• sustains the operations of the organization during licence transitions where the uptake in ticket sales demonstrates low performance (The reserve strategy is aimed at sustaining the organisation for a period of twelve months in instances where there is no revenue flowing into the organization);
• Supplements the grant allocations as the interest received from investments is utilized towards funding the operational expenditure of the organisation which means that more money is allocated towards grant allocations.”

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Reply:

I am advised by the Department as follows:

a) In the previous reply, the reference to “funding approval” refers to applications from the Mpumalanga Economic Growth Agency/Ekandustria Industrial Park for funding for the second phase, from funds available within the dtic budget. The application for funding for Ekandustria Industrial Park was presented to the dtic Critical Infrastructure programme and referred back on for the Industrial Parks Management - Mpumalanga Growth Agency (MEGA) to provide supporting information on a number of areas including the following:

1. A maintenance plan for the industrial park;
2. Investment promotion and potential investors pipeline;
3. Security measures to be put in place to attend to continuous crime in the industrial park; and
4. Progress on restoring the waste-water treatment plant which was revitalised in phase 1 and has since been decommissioned due to crime.

The Critical Infrastructure Programme referred back the Application for Phase 2 for Ekandustria on 3 July 2018, for additional information that was required. the dtic and the DBSA engaged the Mpumalanga Economic Growth Agency MEGA and sent written communication on 27 August, 2018. The revised application has since been received on 10 November, 2020.

The Ekandustria Industrial Park has had significant challenges with several service delivery protests that impacted the revitalization programme, resulting in work stoppages during the first phase and protests continued after the first phase had been completed. The management of MEGA decided to slow down the revitalization process during this time due to the risk that would impact on the assets, the staff of MEGA and the Construction team.

Should the application meet on the necessary requirements it will be presented to the next sitting of the Critical Infrastructure Programme for funding in the fourth quarter.

b) Further phases are dependent on the urgent needs of the industrial park and the programme responds to the applications submitted. A guide for the phases is as follows –

Phase 1: Security infrastructure upgrade, fencing, lighting, critical top structures and electrical requirements - The first phase requirements was requested by the industrial parks management agencies who have been experiencing high crime levels.

Phase 2: Compliance to regulatory requirements – Landfill sites; Waste and Water treatment plants, Fire, Health & Safety Requirements, and Renewable energy initiatives.

Phase 3: Engineering designs and construction of new and existing roads, bulk water supply and sewage treatment plants or industrial effluent control.

Phase 4: Upgrading electricity infrastructure, and build new top structures in line with the expansion programme of the Parks.

Phase 5: Development of vacant land and sustainable industrial clusters in the Parks.

(c)&(d) The budgetary estimates for expenditure and the quantum in Rand of funding approved in the 2020-2021 financial year is not available as the dtic has not approved any application for the Ekandustria Industrial Park yet.

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Reply:

Honourable Member, the legislative mandate of the Department of Water and Sanitation is to ensure that the country’s water resources are protected, managed, used, developed, conserved and controlled in a sustainable manner for the benefit of all people and the environment.

The Water Services Act, 1997 refers to municipalities as Water Service Authorities (WSAs) responsible for distribution (reticulation) of water and to supply sanitation services. The Water Services Act in section 3 outlines the right of access to basic water supply and sanitation which mandates that “everyone has a right of access to basic water supply and basic sanitation” and places the responsibility on Water Services Authorities to ensure that they develop a Water Services Development Plan (WSDP) to ensure the realisation of this right.

Section 11 of the Water Services Act, 1997 mandates that “every Water Services Authority has the duty to all consumers or potential consumers in its area of jurisdiction to progressively ensure efficient, affordable, economical and sustainable access to water services.”

Therefore, any assistance required by our communities is rendered by municipalities. Should a municipality have difficulties, it approaches the Water Board that services the area. In this case, Magalies Water would assist the municipality.

Notwithstanding the above, I have been informed that the Madibeng Local Municipality has procured and installed three (3) 10 000 litre water tanks to ensure access to clean water, and that these are filled with water on a regular basis.

 

Reply:

I have been furnished with a reply to the question submitted, by Ms Thabang Mampane, Commissioner of the National Lotteries Commission, which is reproduced below.

“(1)(a) In the 2019/20 financial year the NLC achieved a return of 8,42%.

(b) In terms of Generally Recognised Accounting Practice (GRAP) 104, the NLC had fair value adjustment of R9,2 million during the 2019/20 financial year.

(2)(a) The NLC has an approved investment policy in compliance with Treasury Regulation 31.3.1. The following principles are noted from the approved investment policy-

i) The pillars of the investment policy include amongst other Capital Preservation and maximization of returns.

ii) Monies that may be placed in long term investment products should be with banks that have bank guaranteed deposits

(b) In accordance with the approved investment policy, NLC investments in maturity periods of between 3 months to long-term of 5 years.

(c) The banks with which NLC invests are rated by the various rating agencies. The investment quality is determined by the investment ratings given by the rating agencies.

(d) The NLC is guided by an approved investment policy. Investments that do not have capital preservation are not permitted.”

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