Questions and Replies

Reply:

I have been advised by the department as follows:

(a) During the implementation of WiFi networks by the Metros, Project offices from Metros provided the Department with weekly and Monthly progress reports. Subsequently the Department conducted physical site audits and verification on a sample of connected Wi-Fi sites as part of network performance monitoring. Around 150 live sites were audited in Tshwane, Ekurhuleni, Nelson Mandela Bay and Cape Town.

(b) City of Johannesburg and Mangaung have connected some sites but have not completed their WiFi roll out programs. The Department is constantly engaging with these Metros to ensure that all sites are connected as per the agreed plans. The process to appoint WiFi service providers for both Metros is underway.

Reply:

I have been advised by the department and entities as follows:

(a) No

(b) No

Reply:

I have been advised by the department as follows:

1. When the Electronic Communications Act was amended in 2014 it replaced the requirement to develop Rapid Deployment Guidelines with the requirement to develop a National Rapid Deployment Policy. As a result of this amendment, the National Rapid Deployment Policy was included in the National Integrated ICT Policy White Paper. The rationale for the replacement of the guidelines with a policy is that a large proportion of the key stakeholders that are affected by the Rapid Deployment Policy are not subject to the provisions of the Electronic Communications Act (ECA), and, consequently, their behaviour cannot be regulated through the ECA.

2.(a)-(b) The Department has not carried out any study to determine the impact of a delay in implementing the Rapid Deployment Policy as there is no delay as yet in the implementation.

Reply:

I have been advised by the Department and each entity reporting to me as follows:

(a) No

(b) No

Reply:

I have been advised by the Department as follows:

The Department’s spending on e-Government services is as following:

(a) 2016/17 expenditure was R1 million.

(b) 2017/18 projected expenditure is R2 million.

Reply:

I have been advised by the Department as follows:

No official report was compiled after the Mexico visit in December 2016. The purpose of the visit was to understand how Mexico established and operated their wholesale open access wireless network called Red Compartida. The visit follwed several months after the approval of the National Integrated ICT Policy White Paper in September 2016.

(a) No key findings were made as the delegation focused on understanding Red Compartida.

(b) Not applicable.

Reply:

I have been advised by the Department as follows:

There is no legislation in terms of which the National ICT Forum is conducting ICT stakeholder engagements in seeking input for the policy.

Reply:

I am being advised by the Department as follows:

No, the Department did not appoint a service provider or consultant to develop the structure and implementation of the proposed ICT sector Regulator as contained in the National Integrated ICT Policy White Paper.

Reply:

I have being advised by the Department as follows:

a) No

b) No

(i) & (ii) The model contemplated in the National Integrated ICT Policy White Paper, does not envisage Government funding for the establishment of the network but provides that Government may provide incentives to support wireless open access. These include the allocation of some funds from the fund responsible for rural and under-serviced areas. At the appropriate time, the Universal Service and Access Fund or its successor contemplated in the White Paper, the Digital Development Fund, may allocate some funds if money is appropriated by Parliament for that purpose.

The White Paper stipulates that the Wireless Open Access Network will be a public-private sector-owned and managed consortium, and will consist of entities that are interested in participating. Participants may include, but not be limited to, current holders of electronic communications service (ECS) and electronic communications network service (ECNS) licenses, infrastructure companies, private equity investors, Small, Medium and Micro-sized Enterprises (SMMEs), Internet Service Providers (ISPs), Over-the-Top (OTT) players and Mobile Virtual Network Operators (MVNOs), State-Owned Companies and Development Financial Institutions.

Reply:

I have being advised by the Department as follows:

Yes. The Department is required by law to engage ICASA. The Department has engaged ICASA on the implementation of the
National Integrated ICT Policy White Paper. These discussions were initially led by the Director-General and Chief Executive Officer of ICASA

(i) Issues discussed:-

• Legislative programme to implement the National Integrated ICT Policy White Paper;
• Cost to Communicate Programme;
• Compilation of National ICT indicators to support policy development and regulation making; and
• Wireless Open Access Network and the assignment of high demand spectrum.

(ii) To solicit ICASA’s input on the Implementation Framework as the regulator will be expected to implement policy, including the integration of the plan into their future Annual Performance Plans. Discussions are on-going.

 

Reply:

I am being advised by the Department as follows:

1. .The matter between the Minister of Telecommunications and Postal Services and the Independent Communications Authority of South Africa (ICASA) is still pending in the High Court. The application consisted of two parts:, Part A, the High Court granted an order interdicting and preventing ICASA from implementing the licensing steps and processes referred or contemplated in the Invitation to Apply. In respect of Part B, namely the review application, this part is pending.

2. Yes, the Department is engaging ICASA on the implementation of the Integrated ICT Policy White Paper.

Reply:

I am advised by the Department as follows:

No, the Department did not appoint a service provider or consultant to develop the structure and implementation of the proposed Digital Development Fund as contained in the National Integrated ICT Policy White Paper.

Reply:

I have been informed by USAASA as follows:

(i) The three service providers, namely Leratadima Marketing Solutions, CZ Electronics and Bua Africa have separately declared a dispute for arbitration. So far, only Leratadima Marketing Solutions and CZ Electronics have filed their claims in the Arbitration Foundation of Southern Africa (AFSA). USAASA has not yet received claims from the third service provider.

(a) Leratadima Marketing Solutions claim is in two parts. In the first part it seeks an order declaring that USAASA is liable to pay Leratadima Marketing Solutions for variation in the foreign exchange rate, which occurred during the subsistence of the Purchase Order which Leratadima was executing. The second part relates to a consequential loss which it has suffered as a result of suspension of production.

CZ Electronics has also filed its Statement of Claim with AFSA for the exchange rate variance, suspension of manufacturing, outstanding invoices and consequential loss.

(b) (i) USAASA is not contractually liable to the service providers to pay for the variance in the exchange rate. It was the responsibility of the service providers to hedge against fluctuations in the exchange rate. This was an express term of the purchase orders which are an integral and constitutive part of the agreements between USAASA and the service providers. The service providers at their own risk failed to hedge themselves against the fluctuation in the exchange rate. USAASA did not commit to pay the service providers for the variance in the exchange rate. USAASA could consider, and only on compassionate and benevolent grounds, partial assistance to the service providers provided it got additional funding from National Treasury for that purpose. National Treasury did not provide USAASA with any additional funding to pay the service providers for the variance in the exchange rate.

In so far as the claim for consequential loss is concerned, the Supply and Delivery Agreements with service providers stipulate that neither party shall be liable for the special or consequential damages suffered by the other party arising out of the agreement howsoever arising.

(ii) The Broadcasting Digital Migration Programme (“BDM”) falls within the mandate of the Department of Communications and as such, the acting Director-General of the Department of Communications commissioned an investigation into the supply chain management (“SCM”) processes followed by the USAASA in appointing a panel of service providers for the BDM programme. Legal action pertaining to any alleged irregularities flowing from the SCM process must therefore be dealt with by the Department of Communications as the competent department mandated with the BDM programme.    

Reply:

I have been informed by the Entities reporting to me as follows:

1. The State Informational Technology Agency (SITA); National Electronic Media Institute of South Africa (NEMISA); Sentech; Broadband Infraco (BBI); Universal Service and Access Agency of South Africa (USAASA); and the .za Domain Name Authority (ZADNA), do not have vacant positions as indicated above.

The South African Post Office (SAPO) COO position is currently vacant since 01 December 2015 due to a resignation.

2. SAPO indicated that the position of COO was advertised internally and externally on 18 October 2015, with a closing date of 27 October 2015. This process did not yield suitable candidates, hence a headhunting process was undertaken. Interviews have taken place and SAPO has identified suitable candidates for recommendation to the Minister subject to verification of qualifications.

3. SAPO indicated that no one is acting in the position of COO and all Executives that report directly to the COO are currently reporting directly to the Group CEO.

Reply:

I have been informed by the Department as follows:

1. The former Acting Deputy Director-General: ICT Policy and Strategy is no longer an employee of the Department.

2. The specified person served a notice from 1 March 2017 to 31 March 2017. Advertisement of the post was authorized on 25 March 2017 and the post was advertised on 12 April 2017 with a closing date of 28 April 2017.

3. Another Acting Deputy Director-General: ICT Policy and Strategy has been appointed until the current process of appointment is finalised.

Reply:

I have been informed by the Department as follows:

1. The post was advertised, shortlisted, interviewed and approved in terms of the Public Service Regulations, 2001 relevant at the time.
2. The former Acting Director-General was not present during the interview process of the specified person as he requested to leave and appointed another panelist to chair before the interview of the specified person started.

Reply:

a) No. He did not disclose financial interests in the private sector.

b) Not applicable

Reply:

I am advised by the Department as follows:

1. The contract for Mr Mjwara (DDG: E-Government) expired on 12 March 2017.

2. His employment was a fixed-term employment contract to assist the Department to implement key policies and projects. This has been done to a large extent and the Department is looking into him finalising the handover report of his projects.

3. Not applicable

Reply:

I have been informed by USAASA and the Department as follows:

(a)(i)&(ii) No

(b)(i)&(ii) No, USAASA has sought Senior Counsel opinion on the appropriate process to be followed, which is to review the procurement process.

Reply:

The Project Management Office of the Broadcasting Digital Migration Programme (“BDM”) falls within the mandate of the Department of Communications. This question should be referred to the Department of Communications as the competent Department mandated with the BDM programme.    

Reply:

The Project Management Office of the Broadcasting Digital Migration Programme (“BDM”) falls within the mandate of the Department of Communications. Legal action pertaining to any alleged irregularities flowing from the SCM process must therefore be dealt with by the Department of Communications as the competent Department mandated with the BDM programme.

However, I am advised by USAASA that it is reviewing the entire procurement process.    

Reply:

As the member may know, the Project Management Office of the Broadcasting Digital Migration Programme (“BDM”) falls within the mandate of the Department of Communications.

However, I am advised by USAASA that disciplinary investigation against Supply Chain Management has been instituted on the basis of the AG’s report of July 2016 pertaining to irregularities flowing from the SCM process.    

Reply:

I have been advised by the South Africa Post Office (SAPO) as follows:-

With regard to the Minister of Social Development’s reply to parliamentary question 1505 on 12 May 2015, SAPO confirms that there was no signed Letter of Agreement with SASSA.

Reply:

I have been informed by the Department and Entities reporting to me as follows:

(1) – (2) No

Reply:

I have been advised by the Department as follows:-

The answer to the above question is: NO.

Reply:

I have been informed by SAPO as follows:

(a)

Province	Branch	Mobile	RPOA	Grand Total
Eastern Cape	182	2	123	307
Free State	118	1	16	135
Gauteng	332		9	341
KwaZulu Natal	240	2	68	310
Limpopo	136	2	123	261
Mpumalanga	116	1	100	217
Northern Cape	1			1
North West	127	1	87	215
Northern Cape	63		67	130
Western Cape	173		112	285
Grand Total	1 488	9	705	2 202

(b)

Province	Branch Mines	Rural	Urban	Branch Total	Mobile Rural	Mobile Total	RPOA Rural	Urban	RPOA Total	Grand Total
Eastern Cape		131	51	182	2	2	123		123	307
Free State		20	98	118	1	1	8	8	16	135
Gauteng		4	328	332			2	7	9	341
KwaZulu Natal		103	137	240	2	2	52	16	68	310
Limpopo		92	44	136	2	2	123		123	261
Mpumalanga		52	64	116	1	1	91	9	100	217
Northern Cape			1	1						1
North West	1	60	66	127	1	1	87		87	215
Northern Cape		38	25	63			53	14	67	130
WesternCape		25	148	173			94	18	112	285
Grand Total	1	525	962	1 488	9	9	633	72	705	2 202

(c)

Province	Sum of MVL systems Installed
Eastern Cape	113
Free State	18
Gauteng	235
KwaZulu Natal	37
Limpopo	52
Mpumalanga	9
North West	9
Grand Total	473

 

Reply:

I have been informed by the Department as follows:-

i.  MINISTER

 

a) MAKE	b) MODEL	c) PRICE	d) PURCHASE DATE
Audi Q7	Q7 3.0 TDI	681 841.98	2014/15 FY
Jeep	Grand Cherokee 3.6 Overland	626 661.00	2014/15 FY

(aaa) 2014-15

The vehicles bought as per the table above.

(bbb) 2015-16

No vehicles were purchased for the Minister in this financial year.

(bb) Since 1 April 2016

No vehicles were purchased for the Minister in this financial year.

ii.  DEPUTY MINISTER

a) MAKE	b) MODEL	c) PRICE	d) PURCHASE DATE
LEXUS	ES250	438 152,16	2014/15 FY
Jeep	Grand Cherokee 3.0 LTD	637 114,00	2014/15 FY

(aaa) 2014-15

The vehicles bought as per the table above.

(bbb) 2015-16

No vehicles were purchased for the Deputy Minister in this financial year.

(bb) Since 1 April 2016

No vehicles were purchased for the Deputy Minister in this financial year.

Reply:

I have been advised by the Department as follows:-

1. Mr. Buthelezi lodged a dispute of unfair dismissal with the General Public Service Sectoral Bargaining Council and the arbitration is ongoing.
2. (i)The Department has taken action against Mr. Buthelezi in order to recover unauthorised expenditure incurred by the Department. The Department’s decision to recover the legal costs incurred in the labour court case between Mr Wisani Ngobeni, (a former employee of the Department) and the Department is under review.

(ii) No other legal action is being taken against current employees.

Reply:

I have been advised by the Department follows:-

(1) (a) The Department appointed Fidelity Security Group (Pty) Ltd.

(b) The service provider was appointed on 28 October 2016.The contract started on 1 December 2016.

(c) (i)The duration of the contract is two years.

(ii)The contract cost is R11 817 326.44 (VAT inclusive)

(2) (a) The material terms of the successful bid was that the service provider met all the requirement of the department regarding evaluation criteria stipulated in the bid documentation. The following were material terms for the successful bidder:

• Experience in providing physical security services,
• Proof of registration with Private Security Industry Regulatory Authority (PSIRA),
• Financial capability and
• Detailed Project Execution Plan.

(b) On the closing date, 70 bids were received by the Department.

(c) Normal government Supply Chain Management (SCM) bid evaluation and adjudication processes were followed.

(3) Imvula Quality Protection (Africa) (Pty) Ltd did not score the highest in the bid evaluation and adjudication processes.

Reply:

I have been informed by Telkom as follows:

1. (a)(i) 207 038 058 Shares

(ii) R15 244 212 210.54 as on 31 January 2017 (Government shareholdings have not changed since the previous reporting period- September 2016)

(b) Government is not required to appoint any directors to the Telkom Board.

(c) Telkom does not have any government appointees on their current Board.

(d) No appointments

(2) (a) It is the prerogative of the Board on the recommendations of the Nominations Committee subject to Shareholder approval.

(b) It is the prerogative of the Board on the recommendations of the Nominations Committee subject to Shareholder approval.

Reply:

I have been informed by SITA as follows:

1.  Ms. Unathi Mtya was employed by SITA as the Head of Internal Information Technology division and has since resigned on 31 July 2016.

2.  SITA did not receive an application for a bursary nor award a bursary to Ms. Unathi Mtya to study at the Columbia University in New York.

a) Not applicable

b) (i) Not applicable

(ii) Not applicable

(iii) Not applicable

Reply:

I have been informed by SAPO as follows:

1.  (a) The Kidds Beach Postal Agency is not yet closed down. It is scheduled to close at the end of April 2017.

(b) The Agency has terminated the agreement with SAPO for personal reasons.

(c) As of May 2017, residents of Kidds Beach and surrounding areas will conduct their postal business at Greenfields Post Office, which is just 25 km away. Private boxes will remain at the Agency building and clients will continue to receive mail from their boxes. The company is still pursuing alternative measures with prospective agents to provide services in the area.

2.  (a) The transaction viable amounts for December 2016 and January 2017 are outstanding but have been captured in the system for February 2017 payments. The capturing of these payments is dependent on the date of submission of claims by the Agent.

(b) In terms of the agreement with the current agent, the Post Office cannot divulge any confidential information to any third party without the agent’s express consent.

Reply:

I have been informed by SAPO as follows:

1. Mail is delivered at the Serenitas Retirement Village every second day.

2. The so-called “dumped mail” seen at the gate of Gracia’a Retirement Village on 09 January 2017, was for delivery at the Serenitas Retirement Village. When the volume for delivery in an area is too much for the postman to carry, excess mail is prepared and placed in an excess mail bag called dump bag. The bag is then transported by vehicle to a convenient spot, in this case, Gracia’s Retirement Village, where the postman will collect and deliver further. No dumping of mail took place.

Reply:

I have been informed by SAPO as follows:

1. (a) – (b) SAPO submitted its Request for Information (RFI) to SASSA on 10 February 2017.

2. No contracts have been entered into.

Reply:

I have been informed by SAPO as follows:

(1) (a) During the period 1 January to date no casuals were appointed within SAPO. All casuals were converted to permanent part- time or full time employees by September 2016.

(b) Two fixed contractors were appointed since 1 January 2017. One fixed term contractor was appointed with effect from 3 January 2017 for a fixed term of 9 months within the Travel Office and another fixed term contractor was appointed with effect from 1 February 2017 for a period of 18 months to assist with the National Address roll out project.

Reply:

I have been informed by SAPO as follows:

SAPO is not a registered point for issuing documents for the Department of Home Affairs.

Reply:

I have been advised by the Department as follows:

(1)(a) 2

(1)(b) 1

(2)(a) The ICT Symposium took place on 2 November 2016;

A meeting with mobile network operators took place on 28 November 2016; and,

A meeting with representative organisations took place on 14 December 2016.

(2)(b) Venue:

ICT Symposium: Gallagher Estate, Midrand;

Mobile network operators meeting: Vodacom World, Midrand; and

Meeting with representative organisations: The Park Hyatt, Rosebank.

(c) Participants included the following:

ICT Symposium: South African Communications Forum (SACF), Fibreco, Convergence Partners, Members of Black Information Technology Forum (BITF), Smile Communications, National Lotteries Board, Black Management Forum, Telkom, MTN, and Vodacom.

Mobile network operators meeting: Vodacom, MTN, Cell C, Telkom, Neotel, WBS, and SAAIF.

Meeting with representative organisations: Black IT Forum, Internet Service Providers’ Association (ISPA), SACF, Fibre to the Home (FTTH) Council, National Broadcasting Association, Wireless Access Providers’ Association (WAPA), WIFI Forum, Internet Society Gauteng, and Interactive Advertising Bureau.

(3) The ICT Symposium was hosted by the Black IT Forum; the meeting with mobile network operators was hosted by Vodacom; and the meeting with representative organisations was hosted by the Fibre to the Home (FTTH) Council. The costs of hosting the meetings were not incurred by the Department.

Reply:

1. No, a service provider will not be appointed to draw up the implementation plan arising from the National Integrated ICT Policy white paper; (a) Yes, (b) further internal consultation on the draft implementation plan; (i) No requirement exists to publish the implementation plan in the Gazette and (ii) since the implementation plan forms part of the Annual Performace Plan of the Department, no special budget is required.

2. There is no requirement to publish the implementation plan.

Reply:

(1) (a) A Regulatory Impact Assessment has been replaced by the Socio-Economic Impact Assessment System (SEIAS) in line with a Cabinet directive; (b) It is a requirement by Cabinet to submit a SEIAS report with any new policy that Cabinet must approve. The SEIAS report on the National Integrated ICT Policy White Paper, which is available on the Department’s website, was approved by the DPME and accordingly submitted with the policy document when it was approved by Cabinet on 28 September 2016.

(2) The evidence included but was not limited to:

Both the National Development Plan (NDP) and SA Connect refer to open access as the basis of the future market structure for the ICT sector. The call for open access was also included in the report of the ICT Policy Review Panel which was appointed by the Department to advise on the development of the final policy. In addition to the work of the panel, we also undertook international benchmarking with countries which have implemented Open Access or seek to implement Open Access Network as a mechanism to address public safety, broadband roll-out, limitations with scarce spectrum resource, competition, remove barriers to entry through introduction of Mobile Virtual Network Operators (MVNO), and market failures.

Reply:

1(a) Yes, the Minister of Telecommunications and Postal Services led a delegation to the Internet Governance Forum (IGF) in Guadalajara (5-6 December 2016) and Benchmarking Visit on Wireless Open Access Network in Mexico City (7-8 December 2016). This was one trip.

(b) The following officials accompanied the Minister to Mexico:

• Ms Nonkqubela Thathakahle Jordan-Dyani;
• Ms Palesa Legoze;
• Mr Siyabulela Qoza;
• Mr Sipho Joe Mjwara; and
• Mr Dick Sono.

(i) The purpose of participating at the Internet Governance Forum (IGF) was to present the African position on internet governance issues. South Africa hosted the African Internet Governance Forum in October 2016, which adopted a number of resolutions which South Africa presented at the global Internet Governance Forum, as African common positions.

The second part of the visit to Mexico City was to benchmark on Mexico’s open access wireless network model as part of conducting a comparative analysis with countries with similar sector plans and socio-economic conditions and levels of development.

(ii) Internet Governance Forum (IGF): 5 – 6 December 2016 in Guadalajara:

• Minister
• Ms Ntandoyeningi Sithebe (Minister’s Spouse)
• Mr Siyabulela Qoza (Departmental official)
• Ms Nonkqubela Jordan-Dyani (Departmental official)
• Ms Palesa Legoze (Departmental official) attended the IGF from 5 – 9 December 2016)

Benchmarking visit on Wireless Open Access Network model: 7 to 8 December 2016 in Mexico City:

• Minister
• Ms Ntandoyeningi Sithebe (Minister’s Spouse)
• Mr Sipho Joe Mjwara (Departmental official)
• Ms Nonkqubela Jordan-Dyani (Departmental official)
• Mr Dick Sono (Departmental official)
• Mr Siyabulela Qoza (Departmental official)

(iii) Internet Governance Forum

• Internet Society (ISOC)
• Internet Corporation for Assigned Names and Numbers (ICANN)
• United Nations Department of Economic and Social Affairs (UN DESA)
• World Economic Forum (WEF)
• Governor of Guadalajara
• Minister of Science & Information Technology

Benchmarking on Wireless Open Access Network

• • Telcel a subsidiary of América Móvil the largest mobile and fixed operator in Mexico
  • National Secretaría de Comunicaciones y Transportes (Secretariat – Department of Communication and Transport)
  • Meeting with Mexican State Telecommunications Experts (former and new Regulators)
  • Instituto Federal de Telecomunicaciones (Federal Institute of Telecommunications)

(iv) Internet Governance Forum

• Participated in the development of a training programme to build on capacity as a country on internet management, internet architecture and policy development.
• South Africa has joined the Internet for All programme which seeks to improve universal access, uptake and usage of the internet.
• South Africa will participate in capacity building and training programmes offered by the World Economic Forum (WEF) and its partners on digital economy

Benchmarking on Wireless Open Access Network

• • The role of the new regulator in managing both network infrastructure roll-out and competition matters.
  • Lessons learnt from ongoing efforts to introduce Wholesale Open Access in Mexico to promote competition and therefore universal access to affordable quality services.
  • Mexico like South Africa is a developing country which is grappling with the restructuring of the market.
  • Private-Public-Partnership models in universal access connectivity.

(aa) R 671 704.49

(bb) Internet Governance Forum: 3 to 7 December (including travel dates)

Benchmarking on Wireless Open Access Network: 7 to 10 December (including travel dates).

2. Yes, Minister’s spouse, Ms Ntandoyeningi Sithebe accompanied the Minister to Mexico in line with the Ministerial Handbook. Total cost for her travel was R 110 200.00.

Reply:

I have been informed by the South African Post Office (SAPO) as follows that:

1(a) This is an intra-group transaction for the transfer of all the company’s assets and liabilities to SAPO and as such no cash payment will be made.

1(b) The provisional liquidation order against the company was dismissed by the High Court on 30 September 2016. The only creditor item approved by the provisional liquidator was the transfer of the company’s employees to SAPO. As the company is no longer in provisional liquidation, it is in the process of finalising the intra-group sale of business transaction with SAPO.

1(c) Creditor balances as at 31 October 2016, amounted to R250 million, of which R46 million relate to third party creditors and the balance of R204 million is owed to SAPO.

2. All outstanding creditor accounts are more than 30 days overdue. SAPO is in the process of finalising the transaction and will then submit for Ministerial approval in terms of Sections 54 and 66 of the Public Finance Management Act No. 1 of 1999 (PFMA). SAPO has also advised that once the transaction has received the requisite approval in terms of the PFMA, it will ensure that all amounts owing to third party creditors are paid in full.

3. In terms of the agreement concluded between SAPO and all employees under Section 197 (6) of the Labour Relations Act No 66 of 1995, all employees were transferred to SAPO on 01 September 2016, on the same employment terms and conditions applicable to all SAPO employees including membership access to the SAPO pension and medical aid fund schemes. The length of service and accumulated leave of all employees were also preserved and transferred to SAPO. Employees also received a once off non-pensionable and taxable ex-gratia payment in lieu of unpaid salary increases during the period April-August 2016, which was part of the resolution of the previous long outstanding labour settlements.

Reply:

I have been informed by SITA as follows:

1 (a) SITA currently has thirteen (13) Service Level Agreements (SLA Annexes) with the Department of Home Affairs. These services are delivered using both the SITA own personnel and external services from contracted suppliers.

These services are managed via Service Level Agreements with metrics. The service performance is regularly evaluated and monitored on a monthly basis between SITA and the Department of Home Affairs.

SITA has adequate capacity to service the SLA Annexes except that it uses Telkom to provide the last-mile for a dedicated VPN. This represents the only area of challenge since SITA does not own the infrastructure and depend on Telkom network for 92% of its connectivity. SITA is now working with Sentech to provide an additional alternative connectivity using satellite technology to minimise the challenges that have been experienced to date.

1 (b) The following actions have been implemented to increase capacity:

• Appointed a specialist resource to direct the stabilisation and modernisation of the Switching Centre, supported by internal resources and external service providers;
• Full assessment of the Switching Centre’s facility condition and fit for purpose assessment completed;
• Identified critical items for stabilisation and modernisation and we have initiated projects to address DHA requirements;
• Establishment of a full preventative maintenance contract to maintain the Switching Centre’s facility infrastructure.

2 (a) (b) Yes, SITA has routine and preventative maintenance procedures, managed through IT Service Management System.

(i) (ii) SITA has regular monthly Service Level Meetings with the Department of Home Affairs and also with the Service Provider (Telkom). To minimise the causes of poor network connectivity SITA is working with the State Owned Companies such as Sentech to build additional alternative network that will be activated when terrestrial network is impacted. The satellite system will ensure that the DHA office has service as per the signed Service Level Agreements; therefore DHA does not need to close their offices when a network breakdown is experienced.

Reply:

I have been informed by the South African Post Office (SAPO) as follows:

(a) The total number of qualifying bargaining unit employees is 16 820. This is 100% of bargaining unit employees who were still in the employ of the company at the time of signing the agreement.

(b) The total cost of back payments was R82.4 million.

Reply:

I have been informed by the South African Post Office (SAPO) as follows:

1. (a) The entities that levied penalties are the Payment Association of South Africa (PASA) and Telkom.

   (b) The total amount of penalties incurred was R1 million. The remaining R148 million of the R149 million in question relates to a provision for possible VAT liability.

  (c) The penalties were levied due to late payment by SAPO and this was due to constrained cash availability.

2. (a) and (b) No specified penalties and/or fines have been recovered because there is no basis for the recovery. The penalties were levied on amounts for which work was done for SAPO. In the case of PASA, the organisation regulates banking and card transactions on behalf of the South African Reserve Bank (SARB). In the case of Telkom, the entity rendered telephony and data services to SAPO. In the case of provision for a possible VAT liability, SAPO has made the calculation based on a worst case scenario in terms of the VAT Act and it has requested the directive from the South African Revenue Services (SARS) to obtain certainty on the assumptions to be made in the calculations.

 

Reply:

I have been informed by the South African Post Office (SAPO) as follows:

SAPO obtained a 3-year club loan from 5 local banks totalling R3.7 billion, which refinanced the previously existing loans totalling R1.0 billion. These loans are on common terms and conditions with interest rates of JIBAR plus between 2% and 2.5%. Details of exposures by bank, including specific terms and conditions such as pricing, are confidential. The loans are repayable on 14 July 2019.

The overdraft facility amounts to R270 million with no fixed termination date. This is not currently being utilised by SAPO.

(a) (i) Long- term loans= R3.7 billion

     (ii) Overdraft facilities= R270 million

(b) Names of institutions are confidential

(c) (i) The total amount is R3.7 billion

    (ii) Interest rate charged = interest rates of JIBAR plus between 2% and 2.5%

    (iii) The terms and conditions of each loan/ or overdraft facility is confidential. SAPO is bound by contractual obligations not to disclose more detailed information.

Reply:

I have been advised by the Department and Entities reporting to me as follows:-

Department’s Internal Forensic Reports

(a) (i) No

Department’s External Forensic Report

(b) (i) Yes

(aa) Gobodo Forensic and Investigative Accounting

(bb) (1) Forensic investigation to audit qualifications as stated in the report of the Auditor-General for the year ended 31 March 2010;

(2) Forensic Accounting Investigation into alleged irregularities pertaining to travel agents;

(3) Forensic Accounting Investigation into Soundfusion (Pty) Ltd;

(4) Forensic Accounting Investigation Draft FCB Social Marketing; and

(5) Forensic Accounting Investigation into aspects associated with the 112 Emergency Call Centre in the Strand, Western Cape Province.

(cc) The above-mentioned reports were concluded on 26 March 2012.

(a)(ii) SOC’s Internal Forensic Report

Entity	Reply
Sentech	No
zaDNA	No
Nemisa	No
USAASA	Yes
SITA	Yes
Broadband Infraco	Yes
SAPO	Yes

(b)(ii) SOCs External Forensic Report

Entity	Reply
Sentech	Yes
zaDNA	No
Nemisa	No
USAASA	Yes
SITA	Yes
Broadband Infraco	Yes
SAPO	Yes

(ii) (aa) (bb) (cc)

 

Entity:	External/ internal	Name (aa)	Subject matter (bb)	Date of conclusion (cc)
Sentech	External	Leaking of confidential information at Payroll	Investigation on the leaking of confidential information	30 June 2013
	External	Leaking of sensitive information	Investigation on a Board document that was leaked to the Union	30 September 2015
	External	Nepotism in Human Resources (HR) appointments	Investigation on alleged nepotism in HR with regard to appointment of personnel and misuse of company resources	31 January 2016
	External	Sabotage in the information technology (IT) environment and SAP system crashes	Investigation on the sabotage of the SAP system	30 June 2016
Universal Service and Access Agency of south Africa (USAASA)	Internal	Gobodo	Value for money audit: Investigate and express an opinion on the value for money derived from the listed tenders and/or contracts awarded to service providers Investigate and conduct background inquiries of firms or individuals Investigate and can conduct the verification of equipment supplied to access centres around the country and determine the value of money thereof Gather documentary evidence Review project related documentation, including contract documents of the list of service provider which render the services and/or goods to USAASA with a view of expressing an opinion on the value for money Conduct interviews of involved parties, including the service providers and project managers is required	5 May 2013
	Internal	The Firm	The Board of Directors of USAASA received information relating to allocations of material breaches of USAASA’s supply chain management processes and procedures, human resources processes, governance processes and non-compliance with the duly approved delegation of authority of the agency.	30 April 2013
	External	Special Investigating Unit (SIU)	This investigation and subsequent court action brought by the SIU dealt with the appointment of the previous CEO, Mr Zami Nkosi.	The matter was withdrawn as a result of the end of term of Mr Nkosi at the end of March 2016.
	External	Public Protector	Investigation into allegations of maladministration with regard to the irregular appointment of Ms. Sharonne Scheepers.	This investigation is not finalised as yet.
	External	DoC/NT/PWC	Forensic investigation into the Supply Chain Management process followed by USAASA in appointing a panel of service providers for the Broadcasting Digital Migration programme.	This investigation is not finalised as yet.
State Information Technology Agency (SITA)	Internal	Internal	Abuse of Resources 24 Absenteeism 11 Procurement 104 Irregularities Appointment 61 Irregularities Financial 41 Conflict of Interest 12 Fraud 6	2009-2016
	External	External Forensic	Abuse of Resources 1 Absenteeism Procurement Irregularities 6 Appointment Irregularities 1 Financial Conflict of Interest 1 Fraud	2013-2014
Broadband Infraco (BBI)	Internal	Investigator: BBI’s Enterprise Risk Management	Alleged HR Irregularities: (Snr Manager Supply Chain Management [SCM] and Snr Manager Strategy Leadership)	29 October 2015
	Internal	Investigator: BBI’s Enterprise Risk Management	Alleged Leave Irregularities: (Snr IT Manager & IT Administrator	20 March 2015
	Internal	Investigator: BBI’s Enterprise Risk Management	Alleged SCM Non-Compliance (Snr IT Manager)	9 January 2015
	External	Investigator: KPMG	Alleged Recruitment Irregularities (HR Specialist - Ms Betty Mphuthi)	12 Feb 2014
	External	Investigator: KPMG	Alleged Procurement Irregularities (Bruniguel and P-Net)	12 Feb 2014
	External	Investigator: KPMG	Alleged Procurement Irregularities (Accenture Consulting)	07 Nov 2014
	Internal	Investigator: BBI’s Internal Audit Department	Alleged Payment Irregularities (Bakhuthi Trading CC)	28 Nov 2014
	Internal	Preliminary Investigation: BBI’s Internal Audit Department Full Investigation: KPMG	Alleged Employment Irregularities (Two Procurement Specialists	28 Nov 2014
	Internal	Preliminary Investigation: BBI’s Internal Audit Department Full Investigation: KPMG	Alleged Employment Irregularities	28 Nov 2014
	External	Investigator: SizweNtsalubaGobodo(SNG)	Alleged fibre optic cable framework agreements Irregularities (Inyani Civil Works & Plant Hire, Thuthuka Projects, and Kopanya Projects (Pty) Ltd Service Providers	30 Nov 2010
	External	Investigator: SNG	Alleged tender process Irregularities (Occupational Care South Africa [OCSA] and Broadband Infraco)	25 April 2011
South African Post Office (SAPO)	Internal	SAPO Security & Investigations: Forensic Unit 2009-2016	The internal forensic investigations unit received four hundred and ninety-eight (498) complaints that included allegations of fraud, theft, misconduct, negligence, armed robbery, sexual harassment, assault, financial misconduct, postal crime, etc. All cases received from 1 January 2009 until September 2016 have been finalised. Line management, together with Employee Relations have prioritised the implementation of pending recommendations for disciplinary action for the current financial year, where applicable.	30 September 2016
	External	SSG	Maladministration	February 2013
	External	Special Investigating Unit (SIU)	Maladministration and corruption	February 2014
	External	Public Protector	Alleged irregular appointment of a service provider, Resurgent Risk Managers by SAPO in 2013	Public Protector has not yet issued a report

Reply:

I have been advised by the Department as follows:-

(a)(i) CFO has the following qualifications and experience

Senior Certificate, Extracurricular Higher Diploma with field of study Tax Law

Baccalaureus Commercii with specialisation in Accounting Science and Honours Bachelor of Accounting Science. She has vast experience in a financial field as she worked as a CFO in the Department of Police, Roads and Transport in the Free State Province from 2013 to 2015

(ii) N/A

(b)(i) The post of Director General is currently vacant and we are in a process of finalising the appointment. The Acting Director General has Senior Certificate, incomplete BSc Engineering which was disrupted because of apartheid activities. However he has a vast experience in ICT and Broadcasting. He was appointed as DDG in 1999-2005 in the former department of Communications. He was reappointed as a special advisor at a DDG level since 2013.

Reply:

I have been advised by the Department as follows:-

1. The National Cybersecurity Advisory Council (NCAC) has not been disbanded. However, the Term of Office of the current Council expired at the end of September 2016. We are in a process of extending the appointment pending to annual report.

1 (a) The NCAC was divided into various work streams in which the members have actively participated: Governance; National Coordination and Cooperation; Cybersecurity Structures; Legislation; International cooperation; and, Research and Development.

Specific recommendations will be included in the NCAC’s Annual Report.

1 (b)(i) The Minister met with the NCAC on the 27th August 2015 and will meet with the Council when they present their Annual Report which is currently been compiled.

1 (b)(ii) The Council has not been disbanded

1 (b)(iii) N/A

Reply:

(1)- (2) The SIU has not yet reported to the President on this matter and it would be inappropriate to comment on any findings or recommendations which they may make.

Reply:

I have been informed by Department :

(a) The number of meetings held by the four (4) chambers reporting to the National ICT Forum are as follows:

Social Chamber – five (5)

Economic Chamber – three (3)

Governance and Security Chamber – three (3)

ICTs and Disability Chamber – four (4)

b) Each of the specified meetings were held on the following dates:

Social Chamber – 21 August 2015, 27 November 2015, 19 February 2016, 13 June 2016, and 9 September 2016.

Economic Chamber – 25 August 2015, 03 March 2016, and 27 September 2016.

Governance and Security Chamber – 17 August 2015, 07 December 2015, and 20 May 2016.

ICTs and Disability Chamber – 10 September 2015, 02 December 2015, 17 March 2016, and 20 July 2016.

c) Yes, each of the meetings did quorate.

d) Decisions/ plans of action made at each of the meetings are as follows:

Social Chamber

21 August 2015

• The draft terms of reference for the National ICT Forum was endorsed
• Agreement was reached on the issues to be tackled by the chamber

27 November 2015

• Working group conveners were nominated and appointed
• Portal for the National ICT Forum was proposed
• The chamber’s terms of reference was adopted

19 February 2016

• Working group terms of reference was agreed upon
• Scoping for the working groups was developed

13 June 2016

• Development and adoption of template for working group activities
• Key stakeholders for the work of the chamber were identified

9 September 2016

• Draft work programme of the chamber aligned with the DTPS Annual Performance Plan (APP) targets
• Working group reports were consolidated in preparation for meeting with the Minister
• The focus of the e-Agriculture Working Group was clarified

Economic Chamber

25 August 2015

• Draft terms of reference for the National ICT Forum was endorsed
• Agreement was reached on issues to be tackled by the chamber

03 March 2016

• Chairpersons of working groups were nominated and appointed
• Chamber’s draft work programme was endorsed
• Presentation for the National ICT Forum Workshop prepared

27 September 2016

• Presentation for National ICT Forum follow-up workshop was developed
• The chamber’s draft programme of action was endorsed

 

Governance and Security Chamber

17 August 2015

• Draft terms of reference for the National ICT Forum was endorsed
• Scoping for the chamber work was proposed
• Key stakeholders were identified

07 December 2015

• Draft terms of reference of the chamber was endorsed
• Working group conveners were nominated and appointed
• Draft terms of reference for the chamber was endorsed

20 May 2016

• Working group reports and draft programmes of action were consolidated
• The chamber’s draft programme of action was endorsed
• Presentation for National ICT Forum Workshop developed

ICTs and Disability Chamber

10 September 2015

• Confirmation of the Chairperson of the chamber
• Establishment of the Accessibility and Affordability Working Group

02 December 2015

• Scoping for the chamber developed and agreed
• Task Teams and confirmation of their chairpersons

17 March 2016

• The chamber’s draft programme of action was developed
• Presentation for the National ICT Forum Workshop was developed

20 July 2016

• The chamber’s draft programme of action was endorsed
• Presentation for the National ICT Forum Follow-up Workshop was developed