Questions and Replies

Reply:

According to the information received from Transnet:

a) An emergency procurement process was followed for the acquisition of disposable mouthpieces for alcohol breathalyzer straws.

b) The Executive Manager for Group Continuity and Disaster Management and the Executive Director for Safety were central to the procurement of the breathalyzer straws.

c) An internal disciplinary process was instituted in respect of the two employees central to the procurement of the breathalyzer straws. At the conclusion of this process, they were both dismissed. The matter was also reported by Transnet to the Directorate of Priority Crime Investigation (DPCI) on 5 October 2021 in terms of Section 34 of the Prevention and Combating of Corrupt Activities Act 12 of 2004. A referral has also been made to the National Prosecuting Authority. Transnet also referred the matter to the Special Investigating Unit (SIU) for further investigation in terms of Proclamation R23 of no 2020 published on 23 July 2020 in Government Gazette No. 43546. The SIU has launched an application in the Special Tribunal to review and set aside the contracts awarded to the 3 service providers. The two employees central to the procurement have been cited as respondents in this application.

Remarks: Reply: Approved / Not Approved

Melanchton Makobe P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

a) An amount of R4.3 billion was returned to the National Treasury due to the lower than expected up take of the SRD Grant.

b) All applicants for the SRD Grant are assessed on a monthly basis. When their financial situation improves and no longer meet the eligibility criteria or they voluntarily stop applying for the grant, there are significant savings on the fiscus. On average, SASSA pays the SRD Grant to over 8, 5 million eligible applicants every month.

 

Reply:

1.  Agriculture in the Eastern Cape Province to which these entities fall. The national government is interested in the functioning and performance of these entities because they contribute to the agricultural economy, rural development and livelihoods.

From the responses of the province and our own assessment, we cannot say the two entities have reached optimal sustainability.

According to the Eastern Cape Department of Agriculture, No. Magwa-Majola Tea Estate has not reached operational sustainability currently, however great strides have been made in turning the entity around since the Business Rescue Exit (16 February 2016 to 4 June 2019). The COVID-19 pandemic, falling tea prices, increased import of cheap tea’s and the Russia and Ukraine conflict-induced supply chain disruptions resulted in high import and export inflation.

The geo-political instability and recession in countries such as Egypt, Pakistan and other former Soviet Union countries has resulted in tea from Kenya, Rwanda and Tanzania being redirected to South Africa creating a highly competitive trading environment. Production efficiency increased over the year by 206% from 19KG (2019/20) to 59KG (2022/23). This is how we understand the operation and use of data in our planning and decision-making process.

The Board and Management of Magwa Enterprise Tea (MET) met on 7 June to review all current and previous plans and strategies with the aim of developing a more implementable and realistic turnaround strategy that will lead to a self-sustaining tea business. This process is continuing with the view of presenting a final strategy with short, medium, and long-term goals. The focus of the company and its turnaround strategy is as follows:

• Change of business model from bulk to teabag revenue; streamlining product portfolio and developing a focused channel strategy.
• Factory and machinery upgrade.
• Food safety certification.
• Plant restoration.
• Crop and revenue diversification.
• Stakeholder management and resolution of land ownership.
• A circular economy: organic fertiliser, change from coal to wood briquettes for factory boiler.

MET is a State-Owned Enterprise (SOE) and it would be beneficial for state facilities (government offices, prisons, hospitals, and municipalities) to consume only Magwa-Majola tea brands rather than tea manufactured by companies competing with MET.

Progress is being made on the following:

• Mechanisation (motorised tea harvesting equipment), 30% of the estate harvesting will be mechanised while 70% remains manual – also creating new job opportunities for youth in engineering and mechanics; increased production and revenue and profitability while cost per KG is decreased. The change in the operating model will see 1494 jobs in the field of operations being maintained and sustained. The project costing and roll-out programme are being finalised and await funding. The entity will break even in the second year after the implementation of the tea harvesting machine.

• Diversification programme to de-risk the entity’s dependency on a single commodity - Forestry Enterprise Development Agreement under review by the Board; Bee-hive keeping and Biotech flu-vaccine for broiler chicken from green tea extract. These are highly profitable and sustainable programmes.

• Land tenure resolution - Land settlement agreement for Location 32 Lambasi also known as Magwa owned by the former Department of Land Affairs has been agreed to be handed over to the claimants; the agreement was signed by former Minister of Agriculture and Land Affairs: Ms L Xingwana on 18 November 2006; however, the transfer of ownership and title deed is outstanding to-date. MET together with the Office of the Premier and Mr Zama Memela of the Land Claims Commission to resolve the transfer.

2. MET Management Response:

Both Magwa and Majola employment statistics:

Financial period	2019/20	2020/21	2021/22	2022/23	2023/24
Permanent	647	481	474	452	365
Seasonal	1032	847	506	296	152
Total	1679	1328	980	748	517

Reply:

According to the information received from Transnet:

1. Private sector participation that Transnet has incorporated in its Reinvention and Growth Strategy is not intended to result in job losses. Rather, the involvement of private sector is to attract capital required to fund expansion programs and unlock growth in exports for key sectors such as manganese, chrome, and iron ore; and accordingly, growth in the overall economic activities in the country.

Transnet is also able to attract skills and competencies to accelerate efficiencies in its ports and terminals operations, which have been identified as one of the areas of concerns by the customers and shipping lines, as reflected in poor rankings of South African ports, especially in the container segment.

2. Transnet Management continues to engage with labour representatives, particularly addressing concerns around employee protection in implementation of the PSPs, such protection is also translated into agreements with the potential partners.

Remarks: Reply:Approved/Not Approved/Comment

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

There are no exclusions

Reply:

1. The demographics of the 45 000 students is not immediately available, the Department will ask NSFAS to retrieve the data from its systems.
2. The discrepancies were only picked up after data remediation which takes place on the 28th March 2023 up to 29th June 2023 and these were only communicated to affected applicants, NSFAS communicated to students on the 10th of July 2023 via a media statement after they were picked up.
3. The discrepancies were caused by the outdated data received from SARS and NSFAS verification processes and financial eligibility assessments. After identifying the problem, NSFAS re-instated 14703 of the continuing students to be funded again and the remaining 31225 students remained unfunded and were given the opportunity to appeal.
4. We have implemented system enhancements to mitigate the problem moving forward, we have also moved away from the manual processes that were being utilized. Moving forward, the system will communicate with external parties directly via APIS to ensure that the data is not manipulated in any form.

Reply:

a) what are the full relevant details of the person who conducted the reassessment?

The reassessment was conducted by the senior and junior advocates involved in the matter, along with the attorney of record and state accountants attached to the Office of State Attorney, Pretoria.

and

b) further relevant details regarding the investigation, including the reasons that the original estimation has nearly doubled?

The advocates that are on brief (on behalf of the State) in the matter initiated the reassessment after reviewing the initial pleadings and records filed in the High Court (Pretoria) during the review application. Discrepancies were found, leading to the discovery of omitted amounts in the initial accounts made by the State Attorney, resulting in nearly doubling the original estimation. This resulted in the revision of the quantification and intimated claim upwards.

 

Reply:

a) Minister was referring to system glitches that were experienced during disbursement processes, there were registration data changes that was requested to be amended. (b) As per these changes that were requested the issue was resolved. (c) Payments to students was delayed by 2 days. (d) The issue was resolved. The system changes were made as requested by stakeholders and actioned. R119 million was allocated by DHET to support procurement of new systems. NSFAS reported that a new application system has been developed.

Reply:

According to the information received from Transnet:

The triangular rail shuttle between the Transnet Port Terminals (TPT) of Ngqura (NCT), the Port of Port Elizabeth (PECT) and the TFR Deal Party container Terminal (PEG) started in June 2023 and continues to operate.

a) Progress made:

During June

The route between NCT and PECT (1480 TEUs) runs 15 trains that are made up of 50 wagons per train. The Reefer containers are all 40-foot containers which is equivalent to two x 20-foot containers. A single wagon carries one x 40-foot container and a total of 50 containers. The above scenario will remove 740 trucks from the road.

During September / October

The route between PECT and NCT based on 3 trains is equivalent to the removal of 150 trucks off the road.

b) The Inter-Terminal rail shuttle is an ongoing service that is based on customer demand. The service is not only restricted to the citrus season (reefer containers) but is a service offering throughout the year for general-purpose (GP) containers.

c) Stringent security measures have been instituted to ensure minimal security-related disruptions to the rail service. The Reefers are first inspected at the handover point at all Terminals by TFR Security Services. The Railway Police were called in as reinforcement when the service began operating in June 2023 to mitigate against the high-risk hotspot areas for criminal activity, which includes New Brighton.

 

Remarks: Reply: Approved / Not Approved

Jacy Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

a) There are no legislative provisions for baby savers that mandates their existence in the Children’s Act which already has adequate child protection measures to care and protect abandoned children. Baby savers encourages child abandonment which is a criminal offence, and a person who abandons a child after birth may be charged and prosecuted.

The practice encourages infant abandonment; promotes the birth mother relinquishing her parental responsibility with no consequences, silences the voice of the father who also has a parental responsibility as well as the family of the baby, robbing the child of a right to a name, identity as enshrined in the Constitution.

b) Temporary safe care, child and youth care centres and adoption interventions are available as per the provision of the Children’s Act (Act No. 38 of 2005). The Act provides for the placement of abandoned children in temporary safe care pending further investigation and final placement through children’s court proceedings.

Reply:

(a) The total number of persons from the department was 10, including the Minister and the Deputy Minister.

(b). The total costs incurred will be available once reconciliation of invoices and costs is finalised.

Reply:

a) The Vala Zonke Campaign is a National campaign under the auspices of the Department of Transport in line with directives of the Presidential Economic Retreat Resolutions (31 May – 1 June 2022)

• The Transport MINMEC of 1 August 2022, adopted the intervention plan to fight against potholes and general road refurbishment and improvement that triggered the launch of Operation Vala Zonke, on 08 August 2022 in Emfuleni Local Municipality in Gauteng as part of the build-up to Presidential Imbizo that took place on 12 August 2022. All provinces had simultaneous launches on the same day.
• The SANRAL Transport Integrated Information System (ITIS) was availed to all Road Authorities for the provision of Centralized Repository and Asset Management Services with a Mobile Pothole Reporting APP that enables the public to report potholes wherever they are encountered.

The plan envisaged to have a central platform, using an automated system to (a) allocate a complaint, (b) track progress, (c) identify and resolve delays, (d) intervene (provide support) to address service delivery and (e) provide feedback to the public using the APP.

b) The coverage of the Vala Zonke campaign is that, to date, just over 44 949 potholes were reported on the National Pothole Public App and Routine Road Maintenance App according to the highest Province with the highest concentration whereby twelve (12) teams were set up comprising of officials from the Department and SANRAL to verify (track and trace) all potholes reported to determine their status through the Operation MBO.

• Operation MBO found that Gauteng tops the table with a total of 20 220 followed by Free State with 7 067 whereas Northern Cape reported 464 on the bottom of the table.

• By 07 Nov 2023, there were 138 928 downloads of the National Public Pothole Reporting App 44 949 potholes were reported as per the National System. The biggest challenge is that most potholes complaints cannot be correctly and automatically be allocated using the system. It is on this basis that municipalities were trained by SANRAL on the use of ITIS system and as a result, provinces and municipalities are invited to regularly visit the War Room to received update and progress on the reported potholes and follow-up.

Reply:

1. (a) State capture was characterized by intensive levels of political interference, with Eskom and Transnet emerging as focal points of this concerning phenomenon. These SOEs faced undue external influence, compromising their governance structures, decision-making processes, and overall operational integrity. Political interference led to the appointment of key executives and board members who were compromised, resulting in leadership that was not best suited to address the complex challenges the SOEs faced.

However, various interventions were made to ensure operational viability and sustainability of Eskom and Transnet.

The interventions to date include:

​1.1 Eskom

I have instructed the Board to expeditious address the following issues:

• 1.1.1  Management Structure / Skills
• Review and enhance leadership team to capacitate all subsidiaries for effective objective execution.
• Expedite filling critical vacancies.
• 1.1.2 Restructuring - Eskom Roadmap 2 and Implementation
  • Develop a revised Eskom Roadmap guiding the restructuring process.
  • Ensure the plan addresses external dependencies.
  • Capacitate the executive team with the right skills.

• 1.1.3 Finance
  • Develop a comprehensive allocation policy for assets and debts post-restructuring.
  • Continue cost-cutting exercises with defined targets discussed with the Department.
  • Capacitate the Treasury team to ensure compliance with debt relief conditions for loan-to-equity conversion.

• 1.1.4 Forensic Investigations
• Conduct robust forensic investigations to isolate irregularities.
  • Implement consequence management for those found in the wrong.
  • Test the internal control universe to ensure timely detection and prevention of irregularities.

1.2 Transnet

On 1 September 2023, I directed the Transnet Board to urgently address and report on its decisions and recommendations in respect of, inter alia the following:

• 1.1.1 Operational transformation: Develop or enhance a turnaround plan to radically transform the operational performance of each of the business areas, including the restructuring of the entity to deliver on its mandate more effectively and efficiently.
• 1.1.2 Root causes: Identify the root causes of the inability of management and staff to meet the performance targets and a plan to deal with the deficiencies.
• 1.1.3 Stringent / rigorous accountability Oversight: Transnet to develop, with the DPE and National Logistics Crisis Committee (NLCC), a new framework for transparency and accountability through detailed reporting on the successful execution of the turnaround strategy.
• 1.1.4 Digitisation of systems: Mechanisms to speed up the automation and digitisation of performance reporting systems to prevent deliberate and wrongful manipulation of data.
• 1.1.5 Rigorous system of controls: Implement urgently the controls identified by the Auditor General reports.
• 1.1.6 Private sector participation: Transnet is in the process of getting private sector involved in various capital projects. For example, a reputable international private sector partner has already been identified for the development and operation of a container terminal at the port of Durban.

2. There is no leadership vacuum at both SOEs as there is an adequate complement of the Board with Acting Group Chief Executive Officers and Acting Chief Financial Officers. Of importance is that in respect of Transnet the focus is on operational and financial performance that the Minister needs to address as per the statement dated 1 September 2023.

3. In relation to Eskom, it is noteworthy that the former Group Chief Executive Officer (GCEO) operational performance has deteriorated under his watch.

4. It is important to indicate that the recruitment process for the Group Chief Executive Officer (GCEO) is carried out by the Board in accordance with the provisions outlined in the Memorandum of Incorporation, which aligns with the standard procedures across the Department of Public Enterprises (DPE) portfolio. The Board will run the recruitment process including the advertisement, shortlisting and interviewing of candidates. The Board will then present to the shareholder three appointable candidates. The shareholder will then approve the appointment of a candidate.

Remarks: Reply: Approved / Not approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

1(a) The total Budget for the BMA in the 2023- 2024 is R1 341 225 000.

1(b) The estimated total budget of the BMA in the next two financial years is R2 880 770 000 (R1 407 692 000 and R1 473 078 000 for 2024-25 and 2025-26 financial years respectively).

 

END

Reply:

SA Post does not only process social grants but other payments, including stipends for Expanded Public Works Programme. The long queues that the Honourable Members refers to people at Mbizana Post office were made up of EPWP workers.

With regard to Mbizana, all SASSA payments were completed successfully within three (3) days at the Love Life Hall in Bizana from 3-5 October 2023.

 

Reply:

The question was referred to the Kwa Zulu Natal Department of Transport who has advised that the road in question is road P340 (R74) from Bergville to the Free State border and

1. R10 731 792.87
2. Madudla Contractors has been the contractor that was working on Main Road 340 (R74) for the duration mentioned (Pass from 1 June 2022 till now).
3. Mr S Dlamini is the sole owner / director of the company;
4. The company is registered in Van Riebeek park, Ladysmith
5. the project scope was for the replacement of the failed Armco pipe with new pipes.
6. None withheld
7. To date, expenditure on the project is R10 731 792.87

 

Reply:

According to Information Received from Eskom:

The Eskom Curtailment Framework involves the controlled reduction of electricity supply output from renewables (wind and solar) plants in response to system-security needs or temporary transmission capacity constraints. Eskom has developed this new approach to curtailment to allow for additional generation capacity to be built at points on the grid that had previously been shown as fully committed. It will therefore unlock scarce grid capacity in high-potential renewables regions ahead of Eskom’s grid investment roll-out. It is widely used by system operators to facilitate the introduction of renewable generators in a context of grid constraints. This involves the cumulative assessment of the new generation applications and ensures that the projects which are readiest for project implementation are prioritized for grid allocation. The framework could be implemented now that the updated Generation Connection Capacity Assessment is released.

The Generation Connection Capacity Assessment (GCCA) is an assessment of the generation that can be accommodated on the transmission system, at a given time and a a given location, without adversely affecting grid reliability and without requiring significant infrastructure upgrades. The GCCA aims to assist customers in making more informed decisions about where to pursue generation projects by providing information about the generation connection capacity that will be available on the transmission grid in a specific year, assuming that all planned projects are completed on time.

(1)(a) The curtailment framework has been approved within Eskom. A submission is being finalised by Eskom to NERSA on curtailment and other initiatives for noting and information. Detailed mechanisms and procedures to effect the curtailment framework are still to be finalised.

(b)(i) The Generation Connection Capacity Assessment 2025 was published on 31 October 2023 and can be accessed on the Eskom website:

GCCA Transmission Network – Eskom.

(ii) The curtailment framework will become official upon Eskom’s receipt of NERSA’s written response on the submission, as stated above in (a).

 

Remarks: Approved / Not Approved/Comments

Adv. Melanchton Makobe PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

According to information received from these intities

 

ESKOM:

ALEXKOR:

Awaiting response.

SAFCOL:

	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023
(i)Air Travel					R265 581.39	R132 180.16	-	-	R16 436.16	R26 831.83
(ii)Ground Transport					R137 214.98	R238 656.14	R3 441.79	R120 591.39	R250 519.36	R58 048.71
(ii)Hotel Accommodation					R132 112.70	R116 742.76	R6 579.62	R41 398.20	R85 254.27	R8 783.21
(iii) Residence Maintenance					None	None	None	None	None	None

 

 

Remarks: Approved/Not Approved/Comments

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

It is important for the Honourable Member to note that the report in question was commissioned by the Department of Social Development. It is for this reason that the d findings and recommendations of the report have already been put to good use to inform the Draft Policy on social assistance for children, which is currently in the initial policy development stages.

The Department is planning to develop an action plan to implement the recommendations of the study.

Reply:

1. The Department has developed the National Learner Transport Policy that set policy directives in respect to the provision of the learner transport operations nationally. The policy directives provide amongst others, the criteria for inclusion of learners into the National Learner Transport Programme, and safety considerations in respect approved operators and vehicles. Furthermore, the department has developed operational guidelines to guide provinces in the implementation of the policy.

2. The function is managed by the Provincial Departments of Transport in four (4) provinces, namely: North West; Mpumalanga; Eastern Cape, KwaZulu Natal. In five (5) provinces, the function is managed by the Provincial Departments of Education, namely: Gauteng; Limpopo, Western Cape, Northern Cape and Free State.

Reply:

1. (a) (b) No Information.

Transnet National Ports Authority is the landlord and has a mandate to maintain ports infrastructure as per the National Ports Act, No. 12 of 2005. The Minister of Transport is only the custodian of the policy framework.

The Department of Transport duly requests for the question to be re-directed to Minister of Public Enterprises as the Shareholder Minister.

2. No Information.

3. No statement will be issued by the Ministry of Transport.

Reply:

According to the information received from Transnet:

a) Over the preceding three financial years, Transnet National Ports Authority (TNPA) made a capital projects investment of R 2.7 billion in the ports of Cape Town, Saldanha Bay, Durban and Port Elizabeth. No capital investments have been made into the development of the Port of Boegoebaai thus far since only conceptual studies have been conducted. Table 1 provides (a) the total amount (detailed breakdown) of the capital expenditure over the past three financial years.

Table 1: Capital Expenditure over past three financial years

Ports	Expenditure 2020/21 (Rm’s)	Expenditure 2021/22 (Rm’s)	Expenditure 2022/23 (Rm’s)	Total Expenditure (Rm’s)
Cape Town	86	280	141	507
Saldanha	70	123	187	380
Boegoebaai	0	0	0	0
Durban	133	954	508	1,595
Port Elizabeth	31	65	128	224
Grand Total	320	1,422	964	2,706

b) Tables 2 and 3 below offer insight into (b) the nature of the capital expenditure for the same period. In expansion projects (Table 2), a new asset is either constructed/ acquired or an existing asset is extended. Whereas in sustaining projects (Table 3), an existing asset is replaced or refurbished.

Table 2: Investment on Expansion Projects over past three financial years

Ports	Expenditure 2020/21 (Rm’s)	Expenditure 2021/22 (Rm’s)	Expenditure 2022/23 (Rm’s)	Total Expenditure (Rm’s)
Cape Town	0.8	238	15	254
Saldanha	0.1	1.5	22	24
Boegoebaai	0	0	0	0
Durban	12	711	98	821
Port Elizabeth	0	0	0	0
Grand Total	13	951	135	1,099

Table 3: Investment on Sustaining Projects over past three financial years

Ports	Expenditure 2020/21 (Rm’s)	Expenditure 2021/22 (Rm’s)	Expenditure 2022/23 (Rm’s)	Total Expenditure (Rm’s)
Cape Town	85	42	126	253
Saldanha	70	121	165	356
Boegoebaai	0	0	0	0
Durban	121	243	410	774
Port Elizabeth	31	65	128	224
Grand Total	307	471	829	1,607

 

Remarks: Reply: Approved / Not Approved

Jacy Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

1(a) The State Information Technology Agency (SITA) plays a very crucial role in the payment of social grants. Key amongst others, SASSA has contracted SITA to provide Social Pensions System (SOCPEN) application maintenance; SOCPEN functional support; SOCPEN mainframe hosting; geographical information services (GIS) support; Basic Accounting System (BAS); and PERSAL (Government employee Personal and Salary System) mainframe hosting project. These services directly impact SASSA’s ability to manage the administration and payment of social grants.

(b) Refer to A.

(2) (a)(i)(ii)(b)(i)(ii) SASSA had proactively engaged with SITA to ensure that social grants payments are not adversely affected by the strike action. In turn, SITA assured SASSA in a formal letter of its mitigation plans and business continuity in case they were unable to dissuade the participation of key personnel in the strike.

SASSA had also put in place contingency plans to ensure the administration and payment of social grants were not disrupted during the strike action. These would have included executing jobs that enable bank accounts verification and updating records prior to payment; extracting the payment file as per predetermined validation and Bankserv format, routing files to National Treasury (PERSAL) for routing to Bankserv and routing cash book files to National Treasury (PMG) for funding purposes.

(3) SASSA is in the process of drafting its requirements for supply chain procurement processes to source a service provider to replace SOCPEN. The replacement will ensure that SASSA opt for a standard modern technology and in a long run drastically reduce dependency on SITA. It is anticipated the transition will be phased-in over a 3-year project.

SASSA is also engaged in a Business Process Reengineering (BPR) project of which one of its aims is ensuring that the IT environment is resourced through a hybrid model (partially outsourced/ insourced/co-sourced) therefore reducing more technical dependence on SITA. Additional measures include the implementation of online application channel as an additional option for new applications and change of circumstances processing, thereby enabling activation of another channel should the accessibility to SOCPEN have been affected by the strike. This channel is not dependent on SOCPEN.

Reply:

According to the information received from Transnet:

1. The South African government, through the Department of Public Enterprises (DPE), continues to emphasise that involving the private sector in State-Owned Enterprises' (SOEs) operations should not be regarded as a departure from a state-led approach to public enterprises. One example of a partnership with the private sector that enhances Transnet's logistical value chains is the Mamathwane loop. This partnership brings in capital investments, expertise, and/or competences.

The state continues to play a major role in the management, oversight, and ensuring that the mandates of the SOEs are in line with the country’s socio-economic goals. Prior to the implementation of private sector participation (PSP) transactions, the DPE and other government departments evaluate and authorise these transactions in accordance with the PFMA and other legislative requirements.

Furthermore, the Cabinet's approval of the National Rail Policy (NRP) in March 2022 and the presidency's subsequent development of the Freight Logistics Roadmap set the stage for the country to move towards a more liberal rail market—a move that will necessitate major structural reforms. By allowing 3rd party private operators to operate on the national rail network, these changes are expected to encourage competition. This shift in policy will increase the effectiveness and performance of logistics, promote the development of rail-based support services (such as rail-focused warehousing), and draw in capital (via the acquisition of rolling stock).

For the first time, Transnet Freight Rail (TFR) will no longer be the sole provider of freight rail services, as private train operating companies (TOCs) will be able to operate on the freight network. TFR must be vertically separated into its component parts, namely operations and infrastructure, as part of the envisaged policy reforms and the Freight Logistics Roadmap's recommendations. The appointment of the interim rail infrastructure manager (RIM) on 1 November 2023, is proof that this process is well under way. In order to foster stronger cooperation between Transnet and the private sector and develop a vibrant rail sector, the establishment of a RIM is essential.

2. Transnet’s strategy is based on repositioning the organisation to deliver against the economic needs of the key market segments that it serves. There is a considerable opportunity to expand volumes (+/- 60 million tonnes of additional volumes) in the bulk mining commodity space, particularly in respect of iron ore, manganese, ferrochrome, and magnetite, in the next three to five years.

In order to provide industrial segments with more access to global trade and commercial networks, Transnet is repositioning its rail network and terminals to improve operational efficiency and capacity expansion. This is supportive of the Port of Durban being repositioned as a hub port for containers and automotives and Richard's Bay as an effective bulk commodities port.

Consequently, Transnet is driving capacity expansion and improving and transforming the key market segments that it serves by leveraging private sector participation in concert with Transnet's own assets and skills. Transnet's current corporate plans, which were submitted to Parliament, National Treasury, and the shareholder representative, clearly outline the nature and approach of private sector participation.

In addition, Transnet developed a comprehensive Joint Investment and External Partner Selection (JIEPS) framework that guides the involvement of the private sector in the business. To determine whether the private sector will offer any value, for instance, an extensive business case is developed that also includes a detailed financial model. A decision is taken at that moment on the suitability of working with the private sector partner.

The private sector’s is also not limited to ownership but involves other considerations such as capital contribution (for example, by customers through upfront payment or tariff adjustments), operations, and management.

Remarks: Reply: Approved/Not Approved/Comment

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

The Department has requested a response to these questions from Boxing South Africa (BSA). BSA have indicated that they are processing the questions and request additional time

Reply:

1. Based on the 2022-23 Annual Language Reports submitted by the national departments to PanSALB thus far, there are twenty-two (22) national departments that submitted their Annual Language Reports in terms of the Use of Official Languages Act. It is an improvement in submission from the previous reporting periods. Only eight (8) national departments reported in the 2020-2021 reporting period and (7) national departments submitted in the 2021-2022 period.

Out of forty-two (42) national departments contacted in 2022-2023, twenty (20) may be reported not to have complied by 31 October 2023 with the submission of an annual report to PanSALB as required by the Use of Official Languages Act. A comprehensive report on the Use of Official Languages Act Compliance for 2022-2023 will be available by no later than 31 March 2024.

2. Letters were written to all national departments through PanSALB reminding them to send their annual reports and this was also published in the national gazette (See attached gazette for 2022).

3. There has been an active engagement with non-compliant national departments that have not submitted annual reports to PanSALB. PanSALB sought services of the monitoring provider who is directly engaging the departments to understand the reasons behind their non-compliance. The presentation on non-compliance with the Use of Official Languages Act was made to FOSAD to remind the accounting officers about the requirements of the Act. A comprehensive report will be available no later than 31 March 2024.

Reply:

According to Information Received from Eskom:

1. As at end September 2023 – the payment collection levels on 12 months moving average basis are as follows:

(a)(i) Municipalities = 87.3 %

(ii) All other customers combined = 99.9%

(b) The number of prepaid user customers as of September 2023 on Eskom’s Customer Care & Billing system is 6 803 462.

(c) The 2022-23FY non-technical losses are 13 396GWh and are equivalent to R5 607 441 692.

 

Remarks: Approved / Not Approved

Adv. Melanchton Makobe PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(1). Boxing South Africa (BSA) opened a case against the official in question and SAPS is currently investigating the matter, SAPS: CAS 584/8/2023

(2)(a)i. The sanction against the stated individual did not include a ban from attending boxing events. The ban revoked their license to promote boxing and or do any business with BSA.

(ii). No action is required.

(2)(b). The Board of Boxing South Africa is firm in its disciplinary processes and the current Board unlike any other Board has instilled discipline in its licensees and has ensured compliance with its directions, orders, the law regulating the sport and sanctions.

Reply:

1. SASSA utilises medical practitioners in the employ of the Department of Health doctors who were previously referred to as District Surgeon in all the provinces. While other provinces have changed the title, it is still being used in some provinces, but basically refers to same. There is no different arrangement for KZN. The medical practitioners conduct social assistance assessments.

2. According to our records, there are no outstanding invoices or outstanding payments for medical practitioners in any of the SASSA regions. Where such exists, it is because some medical practitioners prefer to submit their combined monthly invoices (that cover a number of months) for a bigger claim amount. On a continuous basis, SASSA encourages timely submission of invoices by doctors. All invoices that have been submitted have been processed.

Reply:

According to Information Received from Eskom:

The smart meter installation programme is an Eskom Distribution wide programme which was implemented in all the provinces to ensure alignment to the Distribution key initiatives of growth, efficiency and servicing the customers better. It is not confined to Gauteng and Fourways only.

(1)(a) The total number of houses identified for the smart meter installation programme in Gauteng was in excess of 35 000, in Sandton, Midrand and Soweto.

(b) A total of 30 597 customers in Gauteng acceded to the installation of smart metersand in Fourways approximately 10 000 meters were installed as part of the smart meter programme. Furthermore, approximately 8 000 houses also acceded to the load limiting pilot that required the use of smart meters.

Load limiting seeks to manage the demand during periods when emergency is declared such as when the system is constrained (during load shedding Stages 1 to 4), while at the same time ensuring that customers experience a reduced impact during loadshedding (customers have enough power for lights and electronic appliances during load shedding).

(c) The total number of smart meters installed for the Gauteng smart metering project is 30 597. Of which approximately 10 000 were installed in Fourways.

(2)(a) The smart meters were installed by Landis+Gyr, which was the successful bidder following an open tender procurement process.

(b) The details entail the installation of meters, data concentrators (DC), and customer interface units (CIUs). The cost associated with the installation is approximately R96 million.

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(1)(a),(b) Yes. South Africa still imports cattle and beef from zones in Botswana that are recognised by the World Organisation for Animal Health (WOAH, founded as OIE). Botswana had 6 zones which are recognised by WOAH as free from FMD without vaccination. These zones are separated by fencing and managed separately with very strict movement control between zones, to maintain their free status; as a result, if there is an outbreak in one zone, it does not affect the other zones.

Botswana reported incursion of buffalo in their disease control zones 3b, 3c and 6a in September 2023 which they suspect broke from Hwange National Park in Zimbabwe. These three zones were immediately placed under quarantine. Some buffalo were destroyed and samples collected while some were moved to the Chobe National Park in Botswana. Some of the samples collected tested positive for a SAT 1. Botswana has suspended movements of cloven hooved animals in their zones 5 and 8, and exports suspended.

(2) South Africa lost its WOAH recognised FMD free zone without vaccination status in 2019, with the first outbreak of FMD. South Africa experienced additional FMD outbreaks between 2020 and 2022 which included additional provinces. South Africa has been unable to regain its free zone status to date. Therefore, the whole of South Africa is considered FMD infected, for the purposes of international trade, until South Africa is able to submit documentary evidence to WOAH that South Africa has achieved compliance with the international standards required for a zone to be recognised as FMD free. South Africa could export beef, which has been deboned and matured to deactivate the FMD virus, to Botswana under the authority of a veterinary import permit. Cattle and bone-in or unmatured beef cannot be exported to Botswana.

https://www.woah.org/app/uploads/2023/05/fmd-world-eng.png

Reply:

According to Information Received from Eskom:

1. Battery storage is used by Eskom to support the network during peak loading and ancillary services such as frequency regulation and voltage support.

However, gas is used as mid-merit or peak generation, depending on the prices. Gas can power the network on a continuous basis.

The costs of battery storage cannot be directly compared to those of gas, as battery storage has charging and discharge components. Charging costs and discharging costs differ.

Gas costs are only for electricity generation.

In addition, the use of gas would require new pipelines and gas distribution networks to Eskom substations. The country would have to invest in new gas pipeline networks, and these would need to be built underground and protected which would further increase costs.

2. Storage that would be currently required is about 70% of the installed solar photovoltaic (PV) and wind capacity to ensure power supply continuity equivalent to baseload generation. The storage capacity must accommodate load shedding cycles to be effective. The battery storage costs are in the peak generation range. Using current battery energy storage costs of R11bn for 200M/800MWh, an installed PV base of 5000MW would require 3500W/14000MWh a day at an estimated installation cost of over R192bn noting that this excludes operational costs.

 

Remarks: Approved / Not Approved

Ms Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(1)(a) It is common cause that the Department of Home Affairs is grossly under-staffed at 39% staffing. A Business Plan was sent to Treasury to this effect. Treasury provided R 260 Million to capacitate the Department. However, this took the Department to a 42% staffing level. This translates to 700 extra staff. Unfortunately, the Department had to make a choice between staffing the Civics branch or the Immigration Branch more. The choice we made, which was also made in past instances, was to send more of the staff to the Civics branch because every single South African depends on it for documentation. Hence, the Immigration branch will always perform much less than the Civics branch.

(1)(b) When coming to fraud the Department of Home Affairs is the only government department with a Counter Corruption branch. This branch is doing a lot. It even has a Chief Director for Analysis and Prevention and it is very working well.

(2)(a) The department has implemented the different quality assurance levels, which allows for better control in the adjudication process. It minimises the risk of security breaches and fraudulent activities. The department has a Counter Corruption branch, who are monitoring the work of officials. They are also working closely with other relevant agencies to help prevent such activities from taking place as well as to identify those officials who are involved in such activities.

(2)(b) According to the department's Enhanced Movement Control System (EMCS), 137 846 overstay notices were issued to foreign nationals who had overstayed their visa-free stay or visas since 2019.

END

Reply:

According to the information received from Transnet:

(1)(a) The total envisaged capital expenditure budget for the Transnet National Ports Authority (TNPA) over the next three (3) year period (FY24/25 – FY26/27) for the ports of (i) Cape Town, (ii) Saldanha Bay, (iii) Boegoebaai, (iv) Durban and (v) Port Elizabeth is R 7,221 bn. The proportion of the capital budget per port is shown in Table 1 below.

Table 1: Ports Capital Expenditure (FY2024/25 – FY2026/27)

Ports	Budget 2024/25 (Rm’s)	Budget 2025/26 (Rm’s)	Budget 2026/27 (Rm’s)	Total Budget (Rm’s)
Cape Town	520	792	668	1,980
Saldanha	311	321	269	901
Boegoebaai	0	310	590	900
Durban	489	1,488	1,205	3,182
Port Elizabeth	81	99	78	258
Grand Total	1,401	3,010	2,810	7,221

(1)(b) The nature of planned capital expenditure for the next three financial years for the respective ports is allocated in terms of segments. Table 2 below indicates the breakdown of the budget per segment for the respective years.

Table 2: Budget Breakdown Per Segment Cumulative 3 Years

Segment	Total Budget 3 Yrs. (Rm's)	% of Total Budget
Auto	168	2.3%
Bulk Services	1,120	15.6%
Container	321	4.5%
Energy	626	8.7%
Fleet	1,238	17.3%
Infrastructure	2,116	28.8%
Iron Ore	110	1.5%
Liquid	468	6.5%
Manganese	900	12.5%
Other Segments & Supporting Infrastructure	155	2.2%
Grand Total	7,221	100.00%

2. TNPA prioritizes investment with a two-step system as detailed below:

• The capex portfolio undergoes a process that provides a view of strategic alignment and funding readiness.

• The projects are then vetted through a ranking and prioritization model, which provides an ascending rating scale to indicate project prioritization. This ensures strategic alignment, driving TNPA’s intended strategic direction, and consistency in admitting projects onto the CAPEX plan.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

My department and PanSALB have not received the complaint form that is said was availed by AKTV, and therefore such a proposed form has not come under our consideration. When stakeholders want to lodge a complaint to the Department, they do so in a manner that is suitable for them. PanSALB usually receives language-related complaints and has developed its own complaint form template which is available online in all official languages and can be completed online in a digital format.

Reply:

1. (a) Yes, baby savers are illegal as they constitute a criminal offence in terms of the Children’s Act (Act No. 38 of 2005). Baby savers are regarded as an act of child abandonment and neglect as per the provision of Section 110 of the Children’s Act.

(b) Organisations that promote the use of the so-called baby savers contravenes the Children’s Act, which is the principal law in terms of the promotion and protection of children’s rights.

2. The issue of baby savers should not be seen in isolation from all other important issues aimed at strengthening child protection measures that were considered during the public hearings on the Children’s Amendment Bill. The Act makes provision for alternative care for children in need of care and support, and baby savers are currently one of those.

3. The Gauteng Provincial Department of Social Development bound by the same Act—the Children’s Act, according to which baby savers are a form of child abandonment and neglect.

Reply:

(a). As a matter of principle, the Department ensures that financial support provided particularly to the big federations is primarily for towards Women’s sport. To confirm this fact funding to South African Football Association (SAFA), South African Rugby (SARU) and Cricket South Africa (CSA) is strictly for the development of Women in sport and Women’s programmes. Funding to Netball South Africa (NSA) is for Women’s Netball.

My department has over in the past four years been providing special allocation to SAFA for the establishment of the Women’s Football League, R 5 million per annum. This year a similar allocation has been given to Cricket SA for the establishment of Women’s Cricket League, R 5 million per annum. The intention behind this support is that the Department together with the Federation concerned approach and engage the Broadcasters and potential sponsors to support the initiative. Once the Broadcasters and Sponsors are on board the Department scales down on the support and redirect the resources to another sport code.

For the current fiscal year, the total budget allocated by National Treasury (NT) for all Federations (about 65) is R 117 568 million only. Of this amount, a total of R 24 500 million is allocated to the above-mentioned Federations and earmarked for Women Sport Programmes. This translates to 20,9% of the total budget for sport and

recreation bodies. It must be noted that this is dedicated funding, for the rest of the Federations, all their applications must cater for both men and women equally, as a minimum.

Through the School Sport Programme all 16 priority codes that participate at the Championships, have a 50/50 representation of women. This is to ensure that there is an equal platform to participate and develop women. At the National School Sport Championships, provinces have been able to send at least 3 categories of participants which include male and female. We have also concluded the Club Development pilot study in Kwazulu-Natal and Limpopo, which has among sport codes caters for Netball, Athletics and Football clubs.

The Club Development programme is a dedicated programme to ensure the development of sport, including the participation of women in sport. This project is extended to rural areas through the Rural Sport Development Programme that currently focuses on organizing leagues and structures in rural areas.

(b). The programmes and initiatives mentioned above are all designed to level the playing field. From a policy point of view, the Department is currently engaging all provinces as we look to finalize the National Women in Sport Policy. A policy that seeks to ensure gender parity on and off the field of sport. I must state though, that these objectives will require active support from all corners of the society, government and in particular corporate investment to be achieved.

 

Reply:

No!

Each SOE is on a challenging recovery path, and each has met with some success. The boards are working diligently to overcome the effects of State Capture and restore the entities to effective operations.

Eskom

Eskom is making remarkable strides toward energy stability and sustainability. Their Generation Recovery plan has already recovered 1,535 MW between April and September 2023, with a goal of achieving a 65% Energy Availability Factor (EAF) by March 2024. This progress is poised to reduce the intensity and frequency of load shedding while increasing grid capacity. Furthermore, Eskom has significantly improved Energy Availability in coal-fired stations and accelerated maintenance at the Kusile Power Station, bringing units online earlier than scheduled and reducing the impact of load shedding. Their partnership with independent power producers (IPPs), which will add 9,421 MW of renewable energy capacity, underscores their commitment to clean energy solutions. Eskom is also actively restructuring the company into three subsidiaries to promote efficiency, accountability, and the adoption of new technologies. The recent debt relief package from the government, along with efforts to strengthen the transmission grid and combat corruption, further solidifies Eskom's position on the path to a sustainable and reliable energy future for South Africa.

In addition to these advancements, Eskom has made significant progress in addressing financial challenges and enhancing its corporate structure. The debt relief package of R254 billion from the government and measures to write off municipal arrear debt demonstrate Eskom's commitment to financial sustainability. Their focus on strengthening the transmission grid, with a special emphasis on the first 1,000 km of power lines, underscores their readiness to accommodate power from independent producers. Importantly, Eskom's anti-corruption efforts have led to a number of arrests, the recovery of substantial assets, and the pursuit of criminal cases, affirming their resolve to protect the integrity of the company and public funds. These combined efforts paint a promising picture of Eskom's commitment to a more stable, sustainable, and accountable energy future, ultimately benefiting the people of South Africa.

Transnet

On 1 September 2023, I directed the Transnet Board to urgently address and report to the shareholder on its decisions and recommendations within the next few weeks in respect of, inter alia the following:

1. Operational transformation: Develop or enhance a turnaround plan to radically transform the operational performance of each of the business areas, including the restructuring of the entity to deliver on its mandate more effectively and efficiently.
2. Root causes: Identify the root causes of the inability of management and staff to meet the performance targets and a plan to deal with the deficiencies.
3. Stringent / rigorous accountability Oversight: Transnet to develop, with the DPE and National Logistics Crisis Committee (NLCC), a new framework for transparency and accountability through detailed reporting on the successful execution of the turnaround strategy.
4. Digitisation of systems: Mechanisms to speed up the automation and digitisation of performance reporting systems to prevent deliberate and wrongful manipulation of data.
5. Rigorous system of controls: Implement urgently the controls identified by the Auditor General reports.
6. Private sector participation: Transnet is in the process of getting private sector involved in various capital projects. For example, a reputable international private sector partner has already been identified for the development and operation of a container terminal at the port of Durban.

Alexkor

• Alexkor is solvent and does not have any interest-bearing debt. Alexkor’s financial position has limited financial risk as the largest liability will be settled by ring-fenced funds.

In January 2022, I appointed an interim board to restore governance amid years of instability. The appointment process for a permanent CEO and CFO is underway.

In 2019, we initiated a forensic investigation into allegations of maladministration and corruption. This led to significant findings, prompting President Cyril Ramaphosa to authorize the Special Investigating Unit (SIU) to delve into corruption and maladministration in Alexkor and joint venture diamond operations on December 10, 2021. We remain resolute in our commitment to transparency, justice, and ethical governance as we pave the way for a brighter future.

South African Airways

There have been notable strides in the SAA Strategic Equity Partner (SEP) transaction. The recent approval of the transaction by the Competition Tribunal offers the potential for a significant turnaround. It provides the opportunity for SAA to comprehensively address and overcome its longstanding financial difficulties, with the added benefit of mitigating the compounding effects of the COVID-19 crisis. By securing a strategic equity partner and fostering collaboration, SAA may embark on a path towards financial stability and long-term viability, marking a pivotal moment in its recovery journey. Currently, it has expanded its route network 11 destinations and increased a number of aircraft 9 with further expansion expected over the short and medium term. It also plans to commence international routes with the first flight to Brazil expected shortly.

SAFCOL

SAFCOL's unqualified audit and INFLOMA's clean audit underscore SAFCOL’s financial responsibility and transparency. With a notable R285 million profit, SAFCOL is not only stable but also positioned for growth, especially as it pursues projects like CHP to mitigate load shedding risks. SAFCOL’s initiatives further highlight its commitment to social responsibility. SAFCOL is a thriving, responsible organization, ready to embrace future opportunities and challenges.

Denel

In the past three years, Denel was faced with significant viability challenges. The malfeasance linked to State Capture and poor management decisions resulted in a steep decline in revenues and profitability since 2017/18, reversing a 7-year trend of good governance, growth, and profitability. This culminated into in a weak balance sheet, declining order book, poor operational performance, unpaid salaries and suppliers which resulted in an erosion of key defence industrial capabilities and loss of critical skills.

Government has made significant interventions to stabilize the SOC. In the past five financial years, the State has injected into Denel approximately R9 billion., including settling guaranteed debt which was keeping Denel in a debt trap due to high interest payments. The intervention has resulted in an appreciable improvement in the market sentiments (employees, clients, partners, financial institutions, and suppliers) regarding the clarity of Government’s strategic intent with respect to Denel.

The focus in the near term, the Department is inducing Denel to optimise on short term revenue opportunities to ensure that the SOC can fund its operational requirements and deliver on existing contracts.

Despite the challenges of the prior years, the interest by both local and international entities as well as governments to collaborate with Denel on various defence technologies has not remains high.

 

Remarks: Reply: Approved / Not Approved

Melanchton Makobe P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

As the honourable member may be aware, road and transport function are a concurrent function exclusively performed by the three spheres of Government. In terms of Section 4(a) and (b) and Section 5(a) and (b), of the constitution of the Republic,

Based by the complaint directed to both the province and municipality regarding the bad state of the Komani roads, I can confirm that in deed the roads referred to are municipal roads.

In terms of Section 139 and 154 of the constitution, both provincial and national government are required to provide the necessary support to those municipalities failing to perform their constitutional function to provide basic social needs/services.

The Department is fully aware that the Komani Municipality is currently experiencing shortage in both Human Resources (Technical) capacity and Financial Resources to deal with all basic social needs (such as water, electricity and roads etc) of which roads are not taken as a priority as a basic social need.

In support for the Municipality to address the rapid deterioration in their road infrastructure, the Department established the Vala Zonke Pothole Fixing Programme to assist both provinces and municipalities in fixing their roads.

Furthermore, the Department established the Roads War Room to have a common and centralised approach to all road and transport related matters. This serves as a center for excellence and research for new technologies and materials suitable for roads throughout country. Subsequently, the Vala Zonke App has been developed as a pothole reporting system, wherein SANRAL is currently training officials from Provinces and Municipalities on the usage of the App, under the theme “Train the Trainer”.

Being aware of the capacity challenges facing Municipalities, Municipalities are encouraged to enter into Memorandum of Agreement with SANRAL for pothole patching to augment technical capacities. In pursuance with the objective of the programme, through the Vala Zonke War Room, the Department has already communicated the initiative to the Municipality in question for technical personnel and those responsible for road maintenance in the municipality for training. Since most of the reported roads are mostly municipal roads, a concurrency is to be sought with Minister of Cooperative Governance and Traditional Affairs (CoGTA) for appropriate intervention.

Reply:

a) The processing backlog of Visas and Permits as at 31 August 2023 is 74 309 and 43 944 respectively.

b) The department has developed a plan to address the backlogs. The plan aims to move the older Temporary Residency Visas applications from 2022 concurrently with the current applications of 2023. This will be done by splitting the temporary residence visa team into two. The same approach is being implemented for Permanent Residency Permits. The plan includes the utilisation of its current capacity supported by the additional officials from other branches including those in Provinces. It also includes those officials who have returned from the Foreign Missions after serving their four-year deployment term. Other options are also being looked at to support the above and will be implemented should it be deemed necessary to do so to support the eradication plan.

c) The department envisages to have cleared the backlog by November 2024.

 

END

Reply:

(a)-(b)(i) All neighbouring countries suspended trade of live cloven-hoofed animals from South Africa when the 2019 Foot and Mouth Disease outbreak was reported and the Republic of South Africa (RSA) lost its Free Status with the World Organisation for Animal Health, therefore no livestock has been exported since 2019, nor are there any official records of exported products.

(ii) The following import permits have been issued from listed countries per listed commodity.

Country	Beef	Livestock	Other
Botswana	471	10611	3305
Lesotho	0	1131	2373
Eswatini	6	52	280
Namibia	117	18909	12837

Master permits have been issued for beef imports and in-transit shipments from both Namibia and Botswana.

This also includes "biltong/meat permits for personal use" and permits for hunting trophies in transit.

Reply:

(aa) The total salaries, travel, and accommodation of employees in the department for the last three financial years is shown below:

2020/21 Financial Year:

Expenditure Items	(a)	(b)
	Total budget allocated	Actual expenditure
i) Salaries	184 177 000,00	141 165 000,00
ii) Travel	3 924 000,00	2 384 000,00
iii) Accommodation	501 000,00	275 642,00
Total	188 602 000,00	143 824 642,00

 

2021/22 Financial Year:

Expenditure Items	(a)	(b)
	Total budget allocated	Actual expenditure
i) Salaries	158 954 000,00	140 046 805,00
ii) Travel	9 607 000,00	5 130 416,00
iii) Accommodation	1 410 000,00	872 699,00
Total	169 971 000,00	146 049 920,00

2022/23 Financial Year:

Expenditure Items	(a)	(b)
	Total budget allocated	Actual expenditure
i) Salaries	178 741 000,00	142 026 534,00
ii) Travel	12 510 000,00	7 232 659,00
iii) Accommodation	1 769 000,00	920 170,00
Total	193 020 000,00	150 179 363,00

Total for the 2020/21 to 2022/23 Financial Years:

Expenditure Items	(a)	(b)
	Total budget allocated	Actual expenditure
i) Salaries	521 872 000,00	423 238 339,00
ii) Travel	26 041 000,00	14 747 075,00
iii) Accommodation	3 680 000,00	2 068 511,00
Total	551 593 000,00	440 053 925,00

(bb) The total salaries, travel, and accommodation of employees in the department from 1 April 2023 to 30 September 2023 is shown below:

Expenditure Items	(a)	(b)
	Total budget allocated	Actual expenditure
i) Salaries	167 311 000,00	77 341 594,00
ii) Travel	13 970 000,00	7 002 339,00
iii) Accommodation	1 616 000,00	443 595,00
Total	182 897 000,00	84 787 528,00

 

Remarks: Reply: Approved/Not Approved/Comments

Melanchton Makobe P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(a)	DSD (i)	SASSA (ii)	NDA (iii)
	9 senior managers were appointed to act in vacant position in terms of the Public Service Regulations	There were forty (40) acting appointments at Senior Management level at the South African Social Security Agency (SASSA) over the past two years.	The following positions have had acting appointments within the past 2 years:   Chief Executive Officer Company Secretary
(b)	1.Director-General: Social Development 2.Chief Financial Officer 3.Deputy Director-General: Welfare Services 4.Deputy Director-General:  Strategy and Organisational Transformation   The four vacant SMS posts have been job evaluated as per the DPSA prescripts and will be advertised and filled before the end of the current financial year.   The filling of the remaining five (5) SMS positions will be informed by the finalisation of the organizational structure and based on available budget for Compensation of Employees	The status with regard to acting appointments and or permanent appointments at the Senior Management System (SMS)category is as follows:   Twenty-three (23) positions have been filled; Seventeen (17) positions remain vacant of which five (5) of these positions are prioritised for filling by 31 March 2024; There are currently four (4) acting appointments and due to budgetary constraints and cost containment measures re-emphasized by National Treasury, in the current financial year (23/2024 FY); Twelve (12) of these positions are not prioritized for filling in this financial year therefore, acting appointments have been terminated.	The positions are to be filled on a permanent basis on the following dates:   Chief Executive Officer – interviews finalised and Cabinet Memo en route for Cabinet approval Company Secretary post is now filled

 

 

Reply:

The Honourable Member will remember that the Judiciary submitted their report entitled “Capacitating the Office of the Chief Justice and Laying the Foundations for Judicial Independence: the next Frontier in our Constitutional Democracy, Judicial Independence” outlining their preferred court administration model to the Executive in 2013. Subsequent to the submission, Cabinet established an Inter-Ministerial Task team in 2017, tasked with preparing a response by the Executive to the Judiciary’s report. When the Inter-Ministerial Committee was dissolved, I was mandated by Cabinet at the beginning of the sixth administration to conclude the work started by the Inter-Ministerial Committee. In this regard, I caused the Department of Justice and Constitutional Development to conduct research on an appropriate model suited for our constitutional democracy. This research culminated in a document entitled “Policy Framework on Judicial Governance and Court Administration” comprising a comparative study of the available comparable models whereupon a tentative model that suit the South African Constitution emerged.

Before I approach Cabinet, I took a decision that it would be prudent to share the policy framework with the Judiciary as part of our efforts to consult with that Arm of the State as they are a critical stakeholder in our quest to finalise the court administration model. I have therefore shared the document with the Chief Justice for him to provide us with the necessary inputs before approaching Cabinet. I have been advised that the Chief Justice has, in August 2023, established a Judicial Governance and Court Administration Advisory Committee to consider our proposed policy framework, whereafter he will provide me with the Judiciary’s comments. Once this consultation process with the Judiciary is completed, I intend to table the amended policy framework encompassing the Judiciary’s comments to Cabinet for adoption.

I hasten to indicate that one of the recommendations contained in the policy framework was to transfer the leave dispensation of Judges to the Judiciary. During the consultation process with the Judiciary, we agreed that whilst we wait for the Judiciary’s comprehensive inputs, the leave dispensation for Judges of the Superior Courts should be transferred from the Executive to the Judiciary. Having reached this agreement, I approached the President who duly agreed to amend the Judges’ Remuneration and Conditions of Employment Regulations, 2001 to make provision for the transfer of the leave dispensation of Judges to the Judiciary. So, pursuant to our Policy Framework, the Judiciary is now responsible for managing leave for Judges.

Reply:

Find here: Reply

Reply:

Find here: Reply

Reply:

Find here: Reply
 

Reply:

13 On 13 September 2023, Cabinet approved the publication of the National State Enterprises Bill in the Government Gazette for public comments. The Bill was published for public comments on 15 September 2023.

In response to the valuable feedback received from public comments, the Department is diligently engaged in the refinement process for the National State Enterprises Bill. The ongoing refinement efforts are specifically aimed at integrating the insightful public comments into the fabric of the legislation. Central to this endeavour is the Department's commitment to crafting a revised Bill that not only addresses the concerns raised during the public commentary period but also establishes a comprehensive and inclusive framework for the appointment of boards within State-Owned Enterprises (SOEs).

The envisaged revisions seek to go beyond a mere legal framework. The Department aspires to codify a board appointment process that embodies the principles of transparency, equity, and fairness. By emphasizing these core values, the Department aims to instil a robust and accountable mechanism that stands as a testament to the commitment to good governance and stakeholder inclusivity.

(2) The envisaged processes for appointing board members to SOEs are expected to be comprehensive, designed to uphold transparency, fairness, and meritocracy. This will necessitate a thorough evaluation of candidates based on qualifications, experience, and alignment with the strategic objectives of the relevant SOEs. The government remains steadfast in its commitment to ensuring that appointments adhere to established legislative frameworks, including the Public Finance Management Act 1 of 1999 (PFMA), Companies Act 71 of 2008, and other pertinent statutes governing SOEs.

The government maintains vigilance in refining and improving existing processes to address challenges and enhance efficiency. Continuous efforts are made to draw lessons from experiences, both domestic and international, adapting best practices in governance.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

The Department of Justice and Constitutional Development receives its funding from National Treasury, through a budgetary appropriation process which get voted by Parliament. For the past three financial years (2021/2022, 2022/23 and 2023/24), the NPA received a budget allocation of R4.446 billion, R4.910 billion and R5.407 billion respectively. The above-mentioned allocation includes additional budget amounting to R200 million and R690 million which NPA received in the financial year 2022/23 and 2023/24 respectively, to fund for the Investigative Directorate, contracted specialist prosecution services to assist with complex corruption matters, amongst others. The reasons for inadequate funding for the criminal justice system can be attributed to the country’s limited fiscal resources.

Reply:

1. The progress in the transaction between Takatso Consortium and SAA is as follows:

a) On 25 July 2023, the Competition Tribunal approved the 51% disposal of SAA Government Shares to Takatso with conditions of minority shareholders divesting from Takatso Aviation and SAA not to retrench within 2 years of approval.

B) The subsequent steps are;

• 1. Aviation Regulatory Process: Apply to relevant aviation regulators for licensing approvals;

1. Repeal of the SAA Act, 2007: The process has started. The Department is in the process of seeking Cabinet approval for introducing bill in Parliament;
2. Fulfilment or Waiver of Conditions Precedent: Prior to the transfer of shares, ensure all conditions precedent are either fulfilled or appropriately waived to maintain the legality and integrity of the transaction;
3. Valuation of SAA: New valuation of SAA is being undertaken considering the lapse of time since the last valuation;
4. Revision of Transaction Structure: Considering the above valuation exercise, Parties are reviewing the structure of the transaction;
5. Transfer of Shares: Execute the legal transfer of shares from current shareholder to new strategic equity partner with all necessary documentation;
6. Establishment of New Governance Structures: Set up new governance structures for effective management and decision-making under the Strategic Equity Partner (SEP). This may involve forming a new board of directors and executive leadership; and
7. Implementation of Agreed-upon Strategies: Collaborate to develop and implement strategies for the national carrier's growth and development, focusing on areas such as operational efficiency, market expansion, and customer service improvements.

2. The allocation of funds to SAA, similar to other government funding needs has to go through a budgeting process based on Government priorities.

3. The funds of R85 million that was not transferred to Mango, are still with SAA until the Mango business rescue has been concluded. It is not being utilized by SAA for expansion purposes.

4. The audited annual financial statements for SAA for 2018/19 to 2021/22 financial years are currently going through the Board approval processes. They will be tabled in Parliament soon after the Annual General Meeting, scheduled in November 2023.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date: