Reply:

1 (a) As the honourable member may be aware, following the announcement by the Minister of Finance on the future of (e-toll) on the Gauteng Freeway Improvement Scheme during the 2022/23 Mid-Year Budget Adjustment Vote, Government undertook to deactivate the e-tolls billing system before end of 2022/23 with both the National Treasury and Gauteng Provincial Government contributing towards the remaining debt for the remaining concession period.

(b) With regards to the outstanding R20 Billion, the Gauteng Provincial Government has agreed to contribute 30% to settling SANRAL's debt and interest obligations, while national government will cover the entire 70% of the debt.

2. (a) The National Treasury and the Gauteng provincial Government shall make a joint contribution towards the settlement of the e-toll debt as was announce by the Minister of Finance.

(b) it is anticipated that National Treasury will bear the bulk of the costs (70%).

(c) Funds to be sourced from both the National and Provincial Budgets.

Reply:

(1) The Road Accident Fund (RAF) (a) has finalised and paid a total of 179 349 claims for the period 1 January 2022 to 31 December 2022 (b)(i) as at 10 February 2023 a total of 50 133 claims must still be paid out; and (ii) The total value of claims that are still to be paid out was R15 billion as of 10 Feb 2023. These are payments that are requested but not yet paid, which will be paid once all essential internal validations have been performed to ensure a valid and complying payment. This is also subject to availability of cash resources.

(2) not all the cases where the claimant has served summons on the RAF have been settled as at 31 January 2023 a total of 335 017 claims were in various pre-litigation and litigation stages;

335 017 cases at various stages of litigation. Not all cases can be settled, because most of the claims are overstated and lawyer’s gain more, the further a matter is dragged i.e., positive link between the time it takes to settle a claim and the costs.

(3) The value of claims which are yet to be settled is quantified as part of the claims administration process. The process considers validations & verifications and quantum determination. It is only after these processes are finalized that an estimate of the value of a claim is determined. However, at this point the RNYP is R15 billion. The liability was at R28 billion at the end of 2020/2022 financial year.

Reply:

OR TAMBO INTERNATIONAL AIRPORT

a) Reasons (i) and Causes (ii):

1. ORTIA receives the bulk (approximately 70%) of its fuel from the Natref (inland refinery) via a pipeline, and the remaining 30% from Durban via rail.
2. The fuel from Durban, that is railed to ORTIA, is fully imported, as there is no longer any refining of jet fuel in Durban
3. The fuel is supplied primarily by the oil majors that operate in S Africa.
4. The fuel is stored in storage tanks at the bulk storage facility at the airport, and delivered to aircraft via a fuel hydrant system reticulated from the storage facility to the apron parking stands.
5. The fuel storage facility, into plane fuel service, operation and maintenance is operated by a service provider appointed by ACSA, in this case a JV consortium of the oil majors.
6. The main causes of fuel challenges are delays in crude imports, delays in refined jet fuel product, damage to rail infrastructure, and technical issues in the fuel storage facility and/or hydrant system.
7. Over the last few years South Africa has also lost significant jet fuel refining capacity (from five refineries to one), which means there is more reliance on import fuel than was previously the case.
8. There is neither strategic stock nor significant buffer stock of jet fuel held in the country, which means the supply of jet fuel operates largely on a just in time system (with only about five days buffer stock held at the airport storage tanks).
9. The above situation also implies that airlines need to provide accurate forecasts of their activities so that suppliers are able to place orders on time.

b) Incidents and reasons of fuel issues

1. There were no fuel issues or significant fuel challenges between 2019 and March 2022.
2. During March 2022, there was a delay in the import of crude oil, which resulted in the Natref refinery not having sufficient raw product to refine jet fuel. This did not have any significant impact on operations as there was sufficient buffer stock of refined product. However, it did reduce the levels the buffer stock which is normally maintained at about five days, to below this level. This situation would have normalised itself once the full crude oil imports were re-instated.
3. During the latter part of April 2022, the floods in KZN resulted in damage to rail infrastructure which meant the 30% supply of fuel to ORT was shut off. At the same time air traffic movements was starting to recover at a much faster rate (post COVID recovery), this increased demand, together with already lower stock holding levels resulted in the initial fuel shortage experienced. This situation was fully mitigated by the end of May 2022.
4. The other significant fuel related disruption occurred on the 28th December 2022. This was due to a failure of a valve on the fuel hydrant system which locked in a closed position. This resulted in no fuel being supplied via the hydrant for two hours at the start of operations, resulting in 41 flights being delayed in the morning, and then a compounded impact of aircraft delays for the entire day until the backlog was cleared.

CAPE TOWN INTERNATIONAL AIRPORT (CTIA)

a) Reasons (i) and Causes (ii)

1. There is a single refinery in Cape Town which is not fully operational at the moment, meaning that almost 100% of jet fuel into CTIA is imported.
2. This fuel is transported from the refinery to the airport storage tanks via road tankers, and then via the airport fuel hydrant system into plane.
3. A similar operational and contracting arrangement exists in CTIA as in ORTIA.
4. Most of the Oil majors supply fuel at CTIA but are mostly reliant on the single refinery for supply (which supply is currently being imported).
5. Fuel challenges are mainly as a result of delayed shipments, reduced number of road trucks from the refinery, or fuel being contaminated or out of spec whilst in storage at the refinery. Incidents and reasons for fuel issues

b) Incidents

1. There were no significant fuel issues between 2019 and September 2022 at CIA
2. Between 30 September and 7th October 2022, a shipment of fuel to the refinery was delayed, and due to the limited buffer stock, this impacted on supply to airlines.

Other Airports

There were no significant incidents of fuel shortages at other airports.

Reply:

(a) On what date were taxi drivers informed that passenger pick-up points would change to the first floor parking area at the O R Tambo International Airport, (b) how was the specified change communicated to (i) taxi drivers and (ii) passengers, (aa) initially and (bb) on an on-going basis,

1. Relocation of Public Transport

The frontage roads optimisation project was conceptualised in compliance with the security mandate that seeks to minimise and prevent any unlawful interference to civil aviation as stipulated in Annex 17, International Civil Aviation Organisation (ICAO) and National Airport Security Program (NASP). The roadway optimisation seeks to address:

1. The unlawful act against the safety of civil aviation, including acts of sabotage and malicious damage, and the placing of bombs and other explosive devices or substances in airports, aircraft, baggage, cargo or mail. Any other act of unlawful interference, including armed attacks at airports, acts directed toward off-airport personnel, facilities or vehicles, and acts that have the potential to develop into a threat to international civil aviation
2. Traffic congestion
3. Prevent touting and harassment of passengers

It is against this background that ACSA embarked on the relocation of public transport services (e-hailing (Uber & Bolt), Shuttle services and Meter Taxi operators) from the frontage roadways to Parkade 2 South Level 2 (phase 1). Phase 2 entails the installation of access control to the roadways.

Various consultations took place prior to implementation with various stakeholders which included their senior management and representatives whereby all stakeholders understood and supported the implementation of the project.

The meetings took place as follows:

Date	Stakeholder	Representative
21 February 2022	Shuttles Services	Deputy Chairperson Mr C Kgasu, EXCO Member: Mr Allen Rapasi, Secretary Mr J Mnisi Treasure Mr P Molala Chairperson: Mr J Sokoti as the, EXCO member: Mr S Mabala, EXCO member: Mr A Lekalakala.
04 March 2022	Uber	Gauteng Operational Manager: Mr Amile Ndlovu
04 March 2022	Bolt	Gauteng Acting Manager: Mr Siphiwo Soga
04 March 2022	ORTACC (Meter Taxi)	EXCO member: Mr L Sithukga, Deputy Chairperson: Mr. T Mashego Chairperson: Mr S Rikhotso Secretary: Mr K Chiloane Deputy Secretary Mr J Manotoane
10 February 2022	Local Airport Security Committee (LASC)	All law enforcement agencies and airport stakeholder associations including Metro Police and SAPS

Following the consultation above, the implementation was effective the 01st July 2022, noting that the consultations started in February 2022.

Pre - implementation and on-going basis, the following broader communication and awareness were / are circulated on various platforms and executed as follows:

• Messages on the passenger terminal PA system
• Messages on the advertising, retail and information screens within the terminal
• Messages and stands on the notice stands on level 2
• Passenger information counters / desk (restricted and landside)
• Public Transport Information counters / desk (restricted and landside)
• Passenger Information Agents – floor monitoring
• Messages on social media
• Passenger that do not get to Parkade 2 South Level 2, are redirected by airport authorised taxi operators and airport security positioned on the arrival lower roadway
• E-hailing app updated with Parkade 2 South Level 2 as collection and drop off points; and
• Media statement

ACSA is on a continuous basis improving signage and other communication platforms to enhance passenger experience through our airports. The company is also engaging public transport operators on a bi-weekly basis to determine the effectiveness of the initiative and continuous improvement.

(c) How is it monitored to ensure that passengers are picked up only at the designated area

The monitoring and assurance that passengers are picked up at designated area is conducted by Passenger Services Agents inside the terminal (monitoring and walking the terminal floors and occupying the information counters located at International and domestic arrivals) and they are supported by security guards stationed outside of the terminal patrolling the roadways.

(d) What are the penalties for taxi drivers that transgress the specified pick-up change?

ACSA has not imposed any penalties to the operators as the collaboration and open communication have proven to be effective in making sure that there is compliance to company requirements.

Reply:

(a) (i) KPMM Roads & Earthworks (Pty) Ltd (KPMM) was awarded the contract for the dualling of the Gwaiing River bridge over the N2 and they commenced work on 29 January 2018. The contract duration was 30 months.

(ii) It is expected that it will take approximately 12 to 13 months to complete the outstanding work from recommencement date.

(b) KPMM ran into working capital (cash flow) constraints, which gave rise to delays and slower progress. The impact of the COVID-19 pandemic further constrained the Contractor. In April 2021 the Contractor indicated that they could not proceed any further, and the contract was assigned to one of the subcontractors. The construction site was unfortunately hit by severe flooding on 22 November 2021. That washed away large parts of the temporary scaffolding supporting the formwork for the new bridge deck, requiring complete reconstruction of the temporary scaffolding. The new contractor also however ran into financial difficulty shortly thereafter and filed for voluntary liquidation in June 2022. A liquidator was subsequently appointed.

(c) Final discussions are underway with the liquidator with regard to the completion of the works. Finality in this regard is expected in March 2023.

(d) Failing an agreement with the liquidator, a new accelerated procurement process will be undertaken. It is expected that it will take approximately 12 to 13 months to complete the outstanding work once a new contractor commences.

Reply:

We have no such a project as the department.

Reply:

1. (a) The Cross Border Road Transport Agency (C-BRTA) spent a total of a total amount of R951,194.00 (including Job grading) out of a budget of R1,633,000 for the organisational redesign project.

(b) Project milestones were concluded at the end of September 2022 and implementation is ongoing.

(2) All necessary consultations employee consultations were undertaken directly with the employees. The C-BRTA currently has no labour union.

(3) The Supply Chain Management (SCM) went out on tender and at the closing date bids documents, checked compliance documents with minimum requirements. The Bid Evaluation Committee evaluated the bids, after which, SCM compiled a report to the Bid Adjudication Committe which then recommended the successful bidder to the CEO for approval. The Agency is satisfied with the process.

(4) The Steering Committee met monthly. Weekly meetings were held with the service provider, reportings were done monthly to EXCO, HR&REMCO and the Board as part of monitoring the project deliverables to ensure value for money.

(5) The C-BRTA has capacilty to conclude the process internally. HR is led by the Executive Corporate, with extensive HR experience and highly qualified. The Business Unit has a senior manager who is a seasoned HR professional with over 20 years of experience and relevant qualifications. Management is supported by a team of HR professionals.

Reply:

The Department has developed the action plan and commenced monitoring of the implementation of an action plan of finding by the Auditor-General for the 2021-22 annual financial year. Attached is the action plan developed by the Department for monitoring of AGSA findings as evidence.

Reply:

(a) Since the inception of the new CrossEasy system in January 2022 for the issuance of cross-border road transport permits, the Cross Border Road Transport Agency (C-BRTA) has successfully issued more than 55,000 permits using the functional permit management system of which at least 90% are for freight permits. The C-BRTA is currently implementing phase two of the CrossEasy system, and which includes for the resolution of intermittent permit issuance problems. All identified challenges with the CrossEasy system are to be resolved by the end of December 2022.

(b) (i) The total amount spent on the CrossEasy permit system to date is R12,935,219.40. The system is fully functional and benefits cross-border operators by allowing them to apply for permits online. Furthermore, the system is easily accessible from anywhere and reduces the costs and time required by operators to submit permit applications online.

(ii) (aa) The budgeted amount for the full development of the CrossEasy permit system is R42,964,709.40.

(ii) (bb) The amount for the support and maintenance of the CrossEasy permit system is included in the above budgeted figure.

Reply:

The total amount spent by the Cross Border Road Transport Agency in respect of legal fees on disciplinary hearings for the current financial year to date is One Million Four Hundred and Eighty Seven Thousand Three Hundred and Seventeen Rand and Thirty Nine Cents (R1,487,317.39).

Reply:

1. (a) (i) The Cross Border Road Transport Agency (C-BRTA) has 6 employees who are currently on suspension and relate to 2019 legacy investigations on irregular appointments within the Agency that happened in the prior financial years. Some were reported by employees during the course of the investigations. One case relates to one employee that was reported through the Public Service Commission Hotline for failure to disclose criminal record and not having requisite qualifications.

(a)(ii) 2 are Senior Managers,1 is a Manager, 2 are junior employees, and 1 is a specialist.

(bi) The duration of the suspensions for the employees are as follows:

3 Employees – 5 months, 8 days,

1 Employee-5 months, 7 days,

1 Employee- 4 months, 11 days

1 Employee 1 month,11 days

(bii) 4 matters have been finalised,1 is awaiting ruling, and 1 is ongoing.

(c) The breakdown of the total amount spent on salaries for each employee since their suspension is highlighted below:

1xR86 518.95 = R432 594.75

1x R52 742.87

1x R24 617.53= R123 087.65

1x R43 146.85=R172 587.40

1x R75 653.19 =R 378 265.95

1x R 66 100.56 = R330 502.80

(2) Where the disciplinary hearings have been concluded, the C-BRTA is still studying the judgements and will consult the governance structures accordingly.

Reply:

a) The total amount spent by the Cross Border Road Transport Agency since 1 April 2022 was Nine Hundred and Thirty Three Thousand Six Hundred and Ninety Four Rand (R933 694) and is as follows:

1. International Travel – Five Hundred and Forty Thousand One Hundred and Twenty Nine Rand (R540 129)
2. Domestic Travel – Three Hundred and Ninety-three Thousand Five Hundred and Sixty-Five Rand (R393,565)

b) The purpose for each trip was as highlighted below:

INTERNATIONAL TRAVEL

DETAILS	COST INCURRED
Chartered Institute of Logistics and Transport (CILT) Conference	158,648
Engagements with Ministry of Transport - Zimbabwe	28,870
Participation in OGEFREM Exchange Programme in Lubumbashi, Democratic Republic of Congo (DRC)	56,194
Bilateral meeting with the Zimbabwe Ministry of Transport, Communication and Infrastructural Development to discuss the Market Access Regulation Study Progress on the Johannesburg International Transport Interchange and Enforcement of Professional Drivers’ Requirements	19,207
Engagements with Democratic Republic of Congo (DRC)	29,477
Official meeting with Institute National de Transportes Terrestres (INATRO) to collect information on how this body performs Economic Regulation function and also consultations with the Ministry of Transport Maputo Port Authority	24,931
Trans Kalahari Corridor visit for Board Induction	82,152
Benchmarking exercise with the Land Transport Regulatory Authority (LATRA), Tanzania	22,924
Study Tour on Road Incident Management System and Transport of Dangerous Goods	26,938
Transport Symposium and Cross Border Transport Regulators Forum (CBRTF) in Botswana	32,266
Meeting with Walvis Bay Corridor Group (WBCG)	22,232
Transport Evolution Forum and Showcase in Mozambique and meeting with potential clients	36,290
TOTAL	540 129

*The C-BRTA has recently concluded benchmarking on ESG in the Netherlands/Switzerland/USA/Canada, the costs of which have not yet been finalised.

DOMESTIC TRAVEL

DETAILS	COST INCURRED
Meeting with Matatiele Drakensburg Taxi Association	39,019
RSA / Lesotho Passenger Impasse Sub-Committee meeting	163,784
To support the Department of Transport flood relief programme in KZN	114,117
Meeting with Northern Cape Department of Transport	8,693
Cape Town Route Analysis	15,889
TKCMC Working Group meeting	18,870
TKC meeting in Durban	5,209
Road Incident Management System (RIMS) NTC in Cape Town	22,093
Transport Evolution Africa conference in Durban	5,891
TOTAL	393,565

Reply:

(a) what is the current status of the air licensing backlog?

The Licensing Councils had a total of 166 applications/amendment applications submitted between March 2020 and March 2022. As of March 2022, the Councils have adjudicated 113 applications.

The table below shows a breakdown of the applications:

Type of Application	Number	Considered by Councils	Pending consideration
New Applications	49	25	24
Amendment Applications	117	88	29
Total	166	113	53

From the backlog, the Council has 53 pending applications/ amendment applications that need to be considered.

A directive was issued by the Minister that all pending applications and/or new applications which were delegated to the South Africa Civil Aviation Authority (SACAA) pending the appointment of both Councils must be attended too with speed, so as to enable industry to ramp up post some of the challenges presented by the COVID-19 pandemic.

New applications have since been submitted by air service operators, together with revised and/amended documents as some information as, due to the lapse of time, expired and/or become irrelevant. Revised and updated documentation is being submitted to the Council Secretariat on a daily basis and this is facilitating the speedy adjudication and communication of Council Resolutions to operators, so as to ensure that they are able to ramp up their operations.

(b) interactions his department had with the Department of Tourism regarding the backlogs?

The Department of Transport did not have any interaction with the Department of Tourism regarding the backlogs. The Department does not engage with the Department of Tourism on the adjudication of air services licenses.

The Department of Transport (DOT) had an interaction with the Department of Tourism and other relevant stakeholders during the Strategic Planning Session (SPC), this year in July 2022, at Wapadrand, Pretoria to discuss matters relating to international and domestic air transport. This platform promotes interaction with the aviation industry and relevant Government Departments.

Conversely, the International Air Services Council (IASC), participated in the Tourism Leadership Conference (TBCSA) and the Chairperson of this Council was a panellist, wherein she provided the delegates with insight on some of the topical matters that this Council has been adjudicating upon as part of the tourism recover strategy. The TBCSA seeks to restore the domestic tourism industry post the COVID-19 pandemic, in that it gathered industry players and policymakers under one roof, to reflect, discuss and forge a way forward for the industry. It was held from 14-16 September 2022.

Reply:

Project Ziveze was launched 10 months ago by the Board of Control (BoC) to specifically verify all PRASA employees, after material irregularities were uncovered within PRASA’s Information and Communication Technology (ICT) systems, Human Capital Management (HCM) system and payroll system. The scope of the project also extends to validating whether the employment of foreign nationals is in line with the provisions of the law.

Operation Ziveze is structured in 4 (four) phases, and remains work in progress being undertaken through a combined effort by PRASA’s Research Unit, Protection Services and Human Capital Departments. All reports are handled at a single point of reporting to the BoC.

Phase 1 entailed a voluntary verification exercise which served as a dip stick for the next phase. Phase 2 entailed a more detailed analysis of the data gathered in Phase 1. Phase 3 entails digital verification of fingerprints, ID documents and passports by the Department of Home Affairs. Phase 4 is the last phase where a comprehensive report will be produced that contains actionable recommendations for implementation.

During Phase 1, all employees were invited on a voluntary basis to come forward to be verified with copies of their ID Documents, qualifications and the Human Capital Management (HCM) Employee Data forms. It was further emphasised that those who failed to present themselves for verification would have their salaries frozen. During this Phase, out of the seventeen thousand two hundred and sixty-eight (17,268) recorded employees on PRASA’s payroll system, fourteen thousand two hundred and sixty-eight (14,268) employees presented themselves for verification. During the same period, one thousand one hundred and fifty-nine (1,159) employees resigned.

Failure by three thousand (3,000) employees to come forward for physical verification led to suspicions that there could be a number of ghost employees at PRASA. A clean-up exercise by the PRASA BoC then ensued to establish whether these were indeed ghost employees as part of their efforts to tighten internal controls. Services of an independent service provider were commissioned to establish if these were indeed ghost employees, and to identify weaknesses in the PRASA systems as well as identifying culpable officials who may have colluded with unscrupulous people to create ghost employees where this was found to be the case. The investigation was conducted with the support of Home Affairs, the South African Revenue Service (SARS), Umalusi, and the South African Qualifications Authority (SAQA).

The investigation flagged two thousand one hundred and forty-three (2,143) employees, who were then grouped according to the following categories: -

1. Possible ghost employees who could not be physically verified;
2. Employees masquerading as somebody else, thus possible identity theft;
3. Fraudulent qualifications submitted; and
4. Employees with serious criminal offences.

The preliminary investigation revealed that one thousand four hundred and eighty (1,480) employees either cannot be physically verified and their files or documentation are non-existent, while others resigned without the necessary supporting documentation at the start of the project.

The investigation also revealed a number of instances where ID photos do not match the face of employees. This has triggered further investigations. The investigations concluded that the root cause of these findings are: -

(a) Incorrect data capturing of employee information, resulting in a corrupted employee database;

(b) Weaknesses in the PRASA’s ICT systems; and

(c) Weaknesses in PRASA’s internal control environment.

The undertaking of this project was affected by a number of challenges which necessitated additional interventions, and involvement of other state organs. These include the following: -

(a) Resistance by employees whose fingerprints and photo ID verifications raised red flags;

(b) Missing paperwork in respect of a number of employees;

(c) Received files with evidence of tampering;

(d) Evidence of collusion by officials within PRASA’s Human Capital Management Department; and

(e) Threats against the safety of people working on the project.

As a consequence of the developments to date, the next steps include taking urgent action to address the findings and challenges identified to date. These include: -

(a) A forensic investigation that will conduct a deep dive on critical issues flagged in the preliminary investigation;

(b) A Digital fingerprint and Photo ID verification process with the assistance of the Department of Home Affairs. This exercise is currently underway. The completion of this exercise will then enable PRASA to freeze the salaries of those flagged;

(c) Digitisation of files and supporting documents;

(d) Clean up of the employee database;

(e) Employees who submitted fraudulent qualifications will be served with letters to explain themselves, failing which stricter action will be taken in line with the applicable prescripts; and

(f) Criminal charges will be laid against those who have committed fraud, including recovery of funds from those who left the Organisation and are traceable through initiatives of the law enforcement agencies.

Reply:

The Cross Border Road Transport Agency (C-BRTA) (a) has the following (i) gender breakdown of executive positions:

Pre- organisational redesign:

Males: 5

Female: 3

Post organisational redesign:

Males: 2

Females: 3

Total Filled = 5

(ii) The C-BRTA does not make appointments according to ethnicity, but by gender in line with our Employment Equity targets, qualifications and competencies of the respective Executives. This is also in line with the provisions of our constitution.

(b) There is currently one (1) vacant executive position of the Chief Financial Officer at the C-BRTA.

Reply:

The Road Accident Fund (RAF),

(a) did not ignore the ruling of the North Gauteng High Court (NGHC). The ruling of the NGHC handed down on 24 February 2022 dealt with the merit of the interdict sought by the RAF to interdict the Auditor-General of South Africa from publishing its audit report of the RAF for the financial year ending 31 March 2021 (Part A of the Application), pending the resolution of the substantive dispute between the parties (Part B of the Application). Consequently, the ruling of the NGHC on Part A of the Application does not deal with the dispute related to the RAF’s adoption of a new accounting policy, which dispute is still before the court, to be determined in part B at a future date. The RAF subsequently launched an application for leave to appeal against the judgment in respect of Part A. The matter was heard on 21 April 2022 and judgment was granted in favour of the RAF on 4 May 2022. The judge stated that: “Having read the papers and having carefully heard counsel I come to the conclusion that there is a reasonable prospect that another court would come to a different conclusion on the order of the court.”

(b) did not disregard the Public Finance Management Act, Act 1 of 1999 (PFMA), quite the contrary, the PFMA in terms of section 55(2)(a) places an obligation on the Board of the RAF to ensure that the annual report and financial statements of the RAF fairly present the state of affairs of the public entity, its business, its financial results, its performance against predetermined objectives and its financial position as at the end of the financial year concerned. The RAF is a social benefit scheme as stated in the White Paper on the Road Accident Fund of 1998 approved by Cabinet and effected in the amendment of the RAF Act in 2008. Furthermore, the policy direction of the Road Accident Benefit Scheme as gazetted by the Minister of Transport on 21 November 2011, in the policy paper for the Road Accident Benefit Scheme makes it clear that the policy direction of RAF as a social benefit scheme continues. It is therefore clear that the RAF continues to be a social benefit scheme. Policy continues to be an exclusive competency of the executive arm of the State lead by Cabinet of South Africa. The RAF accounting authority is empowered by section 51(2) of the PFMA which reads thus: “If an accounting authority is unable to comply with any of the responsibilities determined for an accounting authority in this Part, the accounting authority must promptly report the inability, together with reasons, to the relevant executive authority and treasury.” The RAF accounting authority promptly reported its inability to comply, together with the reasons to the Minister of Transport and the National Treasury. The RAF has therefore duly complied with all prescripts including all provisions of the PFMA,

(c) The RAF must in terms of section 55(1)(b) of the PFMA prepare financial statements for each financial year in accordance with generally recognised accounting practice (GRAP) as published by the Accounting Standards Board (ASB). In accounting for its liabilities the RAF is expected to use a GRAP framework and standards as published by the ASB. The RAF as a social benefit fund (provides social welfare as per the White Paper on the Road Accident Fund of 1998), and is excluded from the application of GRAP 19 which provides in paragraph .02 that: “An entity that prepares and presents financial statements under the accrual basis of accounting shall apply this Standard in accounting for provisions, contingent liabilities and contingent assets, except: (a) those provisions and contingent liabilities arising from social benefits provided by an entity for which it does not receive consideration that is approximately equal to the value of goods and services provided directly in return from the recipients of those benefits;…” The RAF in accounting for its social benefits is expected to use the GRAP standard for social benefits. GRAP however does not have a standard for social benefits. GRAP 3, paragraph 8 states that: “In the absence of a Standard of GRAP that specifically applies to a transaction, other event or condition, management shall use its judgement in developing and applying an accounting policy that results in information that is: (a) relevant to the economic decision-making needs of users; (b) reliable, in that the financial statements: (i) represent faithfully the financial position, financial performance and cash flows of the entity; (ii) reflect the economic substance of transactions, other events and conditions, and not merely the legal form; (iii)are neutral, i.e. free from bias; and (iv)are prudent; and (c) are complete in all material respects.” Empowered by this provision of the GRAP standard, the accounting authority then developed and applied an accounting policy that is in line with paragraph 9, 10, 11 and 13 of the same GRAP 3. The RAF then applied its accounting policy developed as stated above to its financial statements which resulted in financial statements providing reliable and more relevant information on the entities financial position, financial performance and cash flows, in line with the GRAP standards and the PFMA. It is therefore incorrect to make an assertion that the RAF has hidden R300 billion. For more information, please refer to the attached explanatory memorandum to the Standing Committee on Public

Reply:

1. RRAMS and PRMG is managed through a Conditional Grant Framework which stipulates various responsibilities of the National Transferring Officer (NTO) and the Receiving Officer (RO). Monitoring is done quarterly and through bilaterals and intervention meetings.

There are also Roads Coordinating Body meetings of all Provinces that also help to interface with Provinces and Municipalities on performance and compliance matters.

2. RRAMS has a Capacity Human Development Provision where by the receiving authorities are at liberty to recruit requisite skills and competencies to perform the functions expected from this program.

With regards, the monitoring and oversight of Road Agencies, the capacity at Public Entity Oversight will augment the Roads Branch with highly skilled and experienced persons.

In addition, further training and development programmes will be implemented to further build capacity.

The receiving authorities have been advised to address the shortage of critical skills, which include CFOs and technically skilled personnel both at Provincial and Municipal levels. However, it is worth mentioning that it is difficult for Municipalities to keep these technical skills.

Reply:

On 4 February 1998, the Department of Transport issued a white paper on the Road Accident Fund which was approved by Cabinet on 21 January 1998. In the preface to this paper, it is stated: “The system has evolved from the original private insurance to public compensation. The demands of a new socio-economic and constitutional dispensation - and with them, the constraints on public spending – require a transition from a delict-based compensatory system to a system of affordable state benefits.”

The white paper further went on to state that “the RAF in future will have elements of social welfare in the form of state benefits and risk cover… the main objective of the RAF is to provide adequate medical care and benefits to road accident victims, within an affordable and sustainable financial framework.” It was also communicated that a Road Accident Fund Commission would be set up by government to reconsider in its entirety the system of benefits and or compensation for victims of road accidents.

From 1942 to 1986 the RAF effectively operated as a compulsory insurance fund, where owners were required to purchase third party insurance. From 1986 the former system of compulsory third party insurance was replaced with a system of statutory assumption of liability by the Fund, and was instead of insurance premiums, financed by Fuel Levies.

The object of the RAF, per section 3 of the Road Accident Fund Act, is “the payment of compensation, in accordance with this Act, for loss or damage wrongfully caused by the driving of motor vehicles.” The liability of the RAF, if applicable, are therefore towards persons injured in motor vehicle accidents and not the wrong doer who caused the accident. Kindly note that the contributor to the fuel levy is not the beneficiary, the beneficiary gets this benefit without contributing any “premium”.

The honourable member should recognise the provisions of Sections 17 to 24 of the act that creates conditions for RAF to be liable. The benefits only flow after all those conditions are met. It therefore follows that RAF’s liability cannot be at the time of the accident but only when all conditions are met by the victim or claimant.

Thereafter, Section 21(1) of the RAF Act States “No claim for compensation in respect of loss or damage resulting from bodily injury to or the death of any person caused by or arising from the driving of a motor vehicle shall lie (a)against the owner or driver of the motor vehicle; or (b)against the employer of the driver.”

A significant characteristic of insurance is that the insurer accepts risk on behalf of a policy holder in exchange for a premium or contribution. The insurer has the ability to adjust the premiums in relation to the risk accepted.

The RAF, however, receives no premium or contribution from the persons who participate in and benefit from the scheme. The Fuel Levy received is not adjustable by the RAF and is not in any way reflective of or connected to the risk the Fund accepts according to the RAF Act. The principles of insurance therefore do not apply to RAF as will be demonstrated below.

The Insurance Act, No. 18 of 2017 (“the IA”), which commenced on 1 July 2018 defines an insurer as “… a person licensed to conduct insurance business under this Act, and includes, unless specifically otherwise provided for in this Act, Lloyd's, a Lloyd's underwriter and a reinsurer”.

The RAF is not an insurer as contemplated in the IA, i.e. the RAF is not issued with a license to conduct its business, but derives its mandate from an Act of Parliament. The RAF performs a public function [as contemplated in paragraph (b)(ii) of the definition of “organ of state” as per section 239 of the Constitution of South Africa, 1996] and is listed as a national public entity [as prescribed in Part A of Schedule 3 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (the PFMA)].

The issue of whether the RAF is an insurer was comprehensively considered and settled by the Road Accident Fund Commission, appointed on the 01 June 1999 to inquire into the Road Accident Fund system (the Satchwell commission). The Satchwell commission received various submissions from stakeholders on this matter, including AGSA, who we must add were vehemently opposed to a Pay-As- You-Go system. The commission nonetheless concluded in their 2002 report that, “a pragmatic approach suggests that the proposed road accident benefits scheme should function as a partly funded scheme within a comprehensive system of social security…”. It further concluded, “A pay-as-you-go approach will situate the scheme within the context of a system of social security”

The Prudential Authority is the regulator of the Road Accident Fund in accordance with the Financial Supervision of the Road Accident Fund Act No.8 of 1993. In paragraph 2.3.3 of its Directive 1 (RAF), the Prudential Authority states, “In assessing the viability and sustainability of the RAF and its compliance with the provisions of the STI Act (Short Term Insurance Act) identified under paragraph 2.2 consideration will be given to the status and nature of the RAF as a public entity that is fundamentally a social security fund.”

Section 2.3.3 goes on to state “In assessing the RAF’s compliance with the prudential requirements of the STI Act, consideration will be given to the fact that

• The RAF’s business model is not based on insurance principles as the premium payable (in this case the fuel levy) does not directly correlate to the benefits provided.”

The classification of the RAF as either an insurer or a social benefit has material implications on the accounting standards that should be used to develop accounting policies in its annual financial statements. The fact that RAF is a social benefit is actually common cause between the AGSA and RAF. This is confirmed by the fact that RAF is not allowed to apply GRAP 19 because the standard specifically excludes social benefits.

The AGSA has, recently inexplicably changed its the position that the RAF is an insurer, and its benefits are not social benefits. It should be noted that in determining which accounting standard to apply, the nature of the RAF is not as important as the nature of the transaction or event. Once the AGSA issued its finding, the RAF then declared a dispute as provided for in the Public Audit Act. The RAF then followed the dispute resolution process as set out by the AGSA. This process, however, was unsuccessful and consequently, the AGSA has issued a disclaimer of opinion on the 2020/21 Annual Financial Statements. In protection of the RAF’s rights and those of the “users of financial statements”, and in compliance with the PFMA, specifically Section 55 (2) (a), the RAF was left with no option but to reluctantly approach the courts for resolution of the dispute.

The Minister has recently instructed the Board to withdraw from the litigation and pursue less confrontational dispute resolution mechanisms. The parties are engaging in that process at the moment.

Reply:

(1) (a) Railway Operators are required to report operational occurrences and

incidents as prescribed by South African National Standards (SANS) 3000-1 categories (Railway Safety Management standard) to the Railway Safety Regulator (RSR).

The table below depicts a year-on-year comparison of derailments and the associated consequence for occurrences reported to the RSR. A total of 290 derailments during the movement of rolling stock were recorded during the 2021/22 reporting period. In addition, the data received indicates that there were ten (10) injuries and three (3) fatalities as a result of derailments recorded during the 2021/22 reporting period.

(b) The table below depicts the number of derailments during the movement of rolling stock for the first quarter of the 2022/23 reporting period. A year-on-year analysis reveals an increase from the fifty eight 58) derailments reported in the first quarter of 2021/22 compared to the current year under review at ninety one (91) derailments.

(aa) The geographical distribution of derailments by province can provide a substantive baseline to make inferences on the rail value chain. The data suggests that most derailments happen in Gauteng (51%), KwaZulu-Natal (17%), and Western Cape (12%). The rail value chain is adversely affected due to delays caused by such occurrences, often because of the time, it takes to clear the occupied sections.

(bb) Transnet Freight Rail reported a total of two hundred and twelve (212) derailments during the 2021/22 reporting period. This number represents 73% of the overall derailments reported by the railway industry.

(cc) An efficient railway industry creates significant economies of scale. The haulage of dry bulk freight and metal ore(s) are notably the most impacted sectors.

(2) The RSR is not required to by law and has not to date collected and verified information pertaining to the Rand amount in costs to the economy and the cost of repairs in each case for Transnet.

Reply:

a) The operating license information is stored on the Department’s Operating License Administration System (OLAS). According to OLAS the total number of taxis with valid operating licenses in Gauteng is:

• Minibus Taxis = 31 723
• Meter Taxis including ehailing = 7087.

The data on OLAS is also on the eNaTIS because for a taxi to acquire an operating licence it must have been registered on eNatis and have a vehicle licence.

b) The Registration Administrative System (RAS) is utilised to register taxi associations, their members and vehicles. The same number of operating licenses appearing on OLAS for Gauteng operators is captured on the RAS

Reply:

The response for question 1 and 2 are as detailed below for Free State, Limpopo and North West.

Please see attached:

Annexure A- Free State Province

Annexure B: Limpopo Province; and

Annexure C: North West Province

Reply:

The road R34 is P393

As a Short-term intervention, the local office has a maintenance contract responsible for the drain cleaning and verge maintenance in addition, the district has utilised the internal teams to repair the current potholes on the R34 on a regular basis.

As a Medium-Term intervention The Department does have a plan for the Rehabilitation of road P393. However, the department has appointed IDT as the implementing agent with the 1st batch of projects in the planning stage to be implemented later in 2022/23 financial year. P393(R34) is anticipated to be in the 2nd batch which considering design procurement and all the applicable stages will anticipate work on the ground in the 2024/25 financial year.

Reply:

Airports Company South Africa (ACSA)

ACSA acknowledges that from time to time some passengers may have difficulty in way finding; and where it is established that there are recurring problem areas, these are resolved at an operational level either by installing temporary or permanent new signage. Other initiatives taken to assist passengers are passenger agents who are on the floor as well as at strategically placed information desks located in the terminal.

We are also aware that there are opportunities for further enhancement of our signage in general, however this is not a current key priority. The limited funding that we have available for repairs, maintenance and capital projects is deployed to essential assets that need to be brought back into operations after being mothballed during COVID, and for asset maintenance and refurbishments to ensure operations are sustainable. As traffic recovers further, and the financial resources are made available we will embark on other projects that will further enhance our operations, signage being one of them. The signage interventions that will be considered for implementation at that stage includes fixed and variable electronic signage, further enhancements to the ACSA app way finding section, and floor maps.

 

Reply:

1. The road P31 from the intersection with N3 Van Reenen’s pass to Ladysmith in the Alfred Duma local municipality has an extent of 28km. The maintenance repair for this road includes various maintenance activities listed in the table below.

No.	(a) Budgeted amount	(b) Detailed work to be carried	(c) Section of road to be repaired	(d) Date that work will be carried	(e) Expenditure
1	R 992 000	Blacktop patching (Pothole)	0.5km to 2.5km	November 2022	No expenditure to date
2	R 992 000	Line marking and road studs	0.00km to 3km	November 2022	No expenditure to date

Reply:

The road is P1-10 from Ladysmith to Colenso and the maintenance activities are as follows for:

FINANCIAL YEAR 2021-2022

No.	(a) Budgeted amount	(b) Detailed work to be carried	(c) Section of road to be repaired	(d) Date that work carried out	(e)(i) Expenditure 2021/22
1	R 230 338.00	Grass cutting	0 km to 14 km	June 2021	R 230 338
2	R 161 930.00	Installation and repair of Guardrails	0 km to 7 km	April 2021	R 161 930

The internal maintenance team was also involved in the pothole patching on this road throughout the year.

APRIL 2022 TO DATE

No.	(a) Budgeted amount	(b) Detailed work to be carried	(c) Section of road to be repaired	(d) Date that work carried out	(e)(ii) Expenditure 1 April 2022 to 31 August 2022
1	R 153 819.00	Line marking	9 km	September 2022	153 819.00

The internal maintenance teams have to date repaired 15 Signs and have repaired a total of 67 m2 of pothole repairs to date.

Future plans

There is allocation for a grass cutting and tree felling contractor to start the works in January 2023 with a total allocated budget of R968 100.00.

Under capital project we have anticipated to Reseal P1-10 for 11 km.

Reply:

The road from Colenso to Estcourt is P1-9

(a) The amount budgeted for the road is R 5 937 172.24

(b) The planned maintenance activity is blacktop patching on main road P1-9 from 6.000 km to18.000 km in Estcourt Area Office.

(c) The section of the road to be repaired is from 6.000km to 18.000km.

(d) The Projected start date is on 02 October 2022.

(e) There is no actual expenditure for (i) 2021-22 Financial Year and (ii) April 2022 to date for this project.

Reply:

Airports Company South Africa (ACSA)

​3.1 Terminal Optimisation Project (R30 million)

• 3.1.1 Prior to the COVID-19 pandemic, a project to optimise the terminal configuration of Chief Dawid Sturman airport was initiated. This project sought update and expand ablution facilities, provide additional security screening capacity and departure lounge capacity as well. There were also plans to improve the commercial facilities in the departure holding lounge (additional private lounge space and coffee shop).  The project had progressed to conceptual design stage, when the project was halted in 2020 and its contract terminated in April 2021 on account of COVID-19 and its impact on the financial sustainability of ACSA.
• 3.1.2 We recently received a traffic outlook in August 2022 which validates the requirements of our capital programmes based on envisaged traffic demand. We therefore intend on re-initiating the project planning processes in early 2023, subject to funding availability. We will complete the design process, and the works are intended to be complete by 2026/2027. The construction period is extended as a result of the works being constructed within an operational environment. This near term project will allow ease of operations and will improve the passenger experience, as we commence work on a major terminal expansion which is required at the airport in the medium term.

3.2 Landside Optimization ​​(R17 million)

• 3.2.1 A project to optimise landside parking was also initiated pre-COVID-19 and was similarly halted and its contract terminated. This project entails the re-organisation and optimisation of the existing parking. The boundary between car rental and public parking will be relocated, with parking re-assigned between car rental and public parking.  The ingress and egress layout will also be re-organised in-line with the parking reassignment. The project had reached detailed design stage and the project planning will be re-initiated (subject to funding availability) in early 2023, with completion expected in 2025.

​3.3  Major Terminal Expansion (R1,3 Billion)

• 3.3.1  We had also partially completed a precinct plan for Chief Dawid Stuurman Airport prior to the COVID -19 pandemic. This precinct plan will inform the landside developments of a multi-storey parkade and the extent to which the full terminal building can be expanded towards the landside to create additional terminal depth.
• 3.3.2 We intend on using these plans to initiate a major terminal expansion for the airport. The design processes for this terminal will commence in 2025. The project is intended to provide a new terminal module with a new processing facility. It is envisaged that the terminal development will entail the demolition of a part of the existing terminal and reconstruction of a new building on the existing site. The new building will have double the footprint of the existing terminal. Passenger loading bridges will be introduced. Due to the magnitude of this project, we anticipate a development period of 8 years including design, approvals, procurement and construction.
• 3.3.3 Capital programmes for the next 5 years are currently under discussion with the aviation industry as part of the economic regulation processes. The extent to which this project can be expedited will be dependent on the overall financial position of ACSA, the capital profile for the group, as well as affordability and fundability considerations from industry.
• 3.3.4 We also intend on reviewing the master plan for the airport within the medium term.

Reply:

Integrated law enforcement operations will be scaled up targeting trucks, public transport and bakkies in Pongola and across all provinces including Pongola in KZN. These operations are monitored regularly to determine impact and to decide on further cause of action and interventions.

The KwaZulu Natal Road Inspectorate and the local municipal traffic officers are part of the integrated plan to address the question of bakkies transporting learners and freight in general.

The National Traffic Police will also be deployed on an ad-hoc basis to assist the province informed by analysis of traffic information to assist in areas with insufficient traffic policing capacity

Block patrols will also be undertaken to ensure considerate driving in the area.

The MEC in the province has been advised to invoke the provisions of Section 50 of the National Road Traffic Act to conduct investigations with a view of suspending the operators permit with regards to freight transport.

Reply:

In order to ease congestion and accidents caused by trucks on the road, a key development in revitalising railway networks is the approval of the White Paper on National Rail Policy (Rail Policy) by Cabinet on 23 March 2022. The Department of Transport is responsible for creating the enabling policy and legislative frameworks and co-ordinating the implementation of these initiatives for the transport sector.

To promote the movement of cargo from road to rail, the Rail Policy introduces reforms to open up the space for private sector investment and equitable third-party access on the primary and secondary rail network. This will open up the rail market for other operators to compete and improve operational efficiencies and service quality which will attract cargo from road to rail.

A key player in the implementation of these reforms is Transnet, which falls on the shareholding of the Department of Public Enterprises, as it owns, operates and maintains the majority of the rail freight network in the country. The Department of Public Enterprises as part of its responsibility for the implementation of the National Rail Policy, must ensure optimal restructuring of Transnet’s rail relates businesses to ensure operational effectiveness and efficiency to make rail an attractive alternative for the movement of cargo from road to rail.

Reply:

A national integrated plan identifying hazardous routes in each province has been developed. Law enforcement operations will be held along these routes by provincial and municipal traffic departments.

Mobile vehicle testing equipment will also be deployed along the routes to tests the roadworthiness of the trucks.

Block patrols will also be intensified to ensure that drivers conduct themselves appropriately and drive with due consideration for other road users.

The National Traffic Police will be deployed to assist provinces in areas where there is insufficient capacity.

Section 50 of the National Traffic Act, which empowers MECs to deal with repeat offenders, will be invoked to enable MECs to initiate investigations against operators and to obtain information about vehicle and driver fitness.

Regulations to strengthen the current rules relating to the operation of trucks on a public road, the construction and equipment of such vehicle and the conditions on which it may be operated are being considered.

Department of Transport is working closely with Department of Public Enterprises to move cargo from road to rail.

Sanral will implement engineering solution, where required, to provide median barrier to prevent vehicle from overtaking onto oncoming traffic.

Monitoring mechanisms have been put in place and reports will be analysed regularly to ensure that these interventions have the desired impact.

Reply:

Transnet Freight Rail, which falls under the shareholding of Department of Public Enterprises, largely owns and operates the country's freight rail infrastructure, locomotives and wagons.

The obsolete state of much of the rail infrastructure and rolling stock do not make it attractive for the private sector to shift cargo from road to rail. Safety and security, mainly due to rampant theft and vandalism of railway infrastructure is also a concern. The unavailability of rolling stock and locomotives is key for third party access and currently hinders new operators from operating on the rail network.

As the freight rail operator, Transnet Freight Rail is best positioned to engage with the innovative concepts proposed by stakeholders such as the Road Freight Association and to articulate what interventions can be implemented at an operational level to develop intermodal collaboration and to achieve road-to-rail shift of cargo. It should be noted that innovative concepts may also need to comply with relevant procurement legislation to ensure transparency, fairness and competitiveness.

The Department of Transport in terms of its mandate of developing policy and regulatory frameworks, has developed the National Rail Policy which was recently adopted by Cabinet. Inputs provided by the Road Freight Association have been considered in the development of the National Rail Policy. The National Rail Policy intends to place rail on a sound footing to play a meaningful role as a backbone of a seamlessly integrated transport value chain. The National Rail Policy introduces secondary interventions that will give effect to institutional repositioning and allows for on-rail competition. This will open up the rail market to other operators to compete and improve operational efficiency that is needed to improve service quality and encourage a shift from road to rail.

Reply:

Yes, the road cited by the Honourable Ms B Mathulelwa was referred to the Eastern Cape Provincial Department of Transport, who advised that

• the company, Klus Civils, was appointed for the reseal of Provincial Road DR08012;
• the contract was terminated due to non-performance on 20 July 2022. The Department followed all processes as applicable in General conditions of contract for construction works 2015 (GCC 2015);
• Klus Civils was only paid for actual work done in terms of their contractual agreement; and
• the process is underway of sourcing a replacement contractor

Reply:

 

a) There is a Performance Agreement in place with the Boards of all Agencies, including South African Road Agency Limited (SANRAL) wherein there is need to have a Routine Maintenance programme in place for 100% of the network and the following are the Technical Performance Targets for the road maintenance

• • • • 95% for Smooth Travel Exposure (STE);
      • 95% for Low Rut Exposure (LRE);
      • 95% for High Texture Exposure (HTE);
      • 90% for Bridge Condition Exposure (BCE);

SANRAL is performing according to these targets and had challenges, with regards, conclusion of awarding projects mainly funded from their Capex Budget. I have engaged with their Board to ensure they put in measures to address this backlog.

Besides challenges SANRAL has particularly with regards to GFIP, it is a well ran entity and has also proven beyond doubt in assisting Provinces during floods. Provinces are also relying on SANRAL for road rehabilitation, hence handing over their strategic roads to SANRAL.

b) There are no plans to privatise SANRAL, who are already operating based on commercial business principles, in the sense they can raise funds through tolling and from external sources and also enter into concession agreements with the provide sector

Reply:

1. The road damage at Umkomaas on R102 is a slip failure, not a bridge collapse. The slip failure was a result of the recent April 2022 floods. The site has been assessed, and only one lane was deemed safe to use. The affected portion has therefore been barricaded and the road is currently operating on a single lane in order to prevent total road closure.

2. Remedial works are inclusive of backfilling the failed slope and protecting the damaged embankment. Contractors have been invited to quote for the required repairs and the quotations closed on the 9th of September 2022, and the works will commence immediately after the appointment of a contractor, which is anticipated to be before December 2022.

Reply:

(a). In as far as the craft sector is concerned the Department is looking to set up a permanent national exhibition, the Beautiful Things Exhibition (BTE), alongside an outlet for transactions, in City of Tshwane to provide craft practitioners from all parts of the country with an opportunity to showcase and derive economic benefit from their products by February of 2023. The last edition of BTE was at the Graskop Gorge in March of 2022, and now the Department intends to set this up as a permanent exhibition to provide a national platform for crafters.

In as far as performing arts are concerned the Department is engaged in consultative discussion with previously marginalized Provinces: (i) Northern Cape – Northern Cape Theatre was refurbished by DSAC and launched on 15 December 2021, (ii) Limpopo - Limpopo Theatre site has been identified, design approved and the Mpumalanga Theatre Feasibility Study Report has been submitted, (iv) Eastern Cape - Mandela Bay Theatre Complex was launched in May 2021 to establish creative spaces (provincial theatres). The intention is to retain talents within local spaces in these Provinces through the provision of theatres for development and promotion of local talents.

(b). The intention is to provide an opportunity for participation to craft producers without them seeing the need to migrate to the cities to build their profile. Furthermore, the Department, working with the Department of Small Business Development and other strategic partners collaborate better to support targeted market access platforms.

Reply:

 

1. The NDoT has met with the City several times in bilateral meetings in 2019 to 2022 and has communicated the same consistent message during the period viz. the city needs to scale up to 20 000 passengers a day, reduce costs and increase revenues.

The City has acknowledged the NDoT’s position and indicates it is doing its best to make the required corrections to the project. It is hoping to achieve a turnaround by 2023/24.

Documents capturing the bilateral engagements and correspondence with the City of Ekurhuleni are attached for further details.

2. While progress is not as speedy as desired, the City has been taking incremental turnaround steps to improve the situation. Progress has been made based on the availability of buses and to date the fleet size increased from 8 buses in 2017 to 40 buses during the 2020/21 financial year.

A steady increase in passenger trips has been realised since the services were improved and the network extended to Bartlett Industrial area in 20/21. During the current financial year 1 172 507 passenger trips have been carried by the system with a monthly average of 117 251 passenger trips and approximately 6 000 average weekday passenger trips.

The next challenge is to expand to 10 000 and then 20 000 passenger trips per weekday, to conclude minibus negotiations, compensation and vehicle removal and to start reducing operating unit costs.

Reply:

1. The portion of national road between the Somerset East turn-off north towards Graaff Reinet is the R63 whereas section south of Somerset East turn-off towards Jansenville is the R75. The work on R75 on both sides of Jansenville consisted of two “special maintenance” projects – which included the patching of isolated road pavement areas up to 25% of the project length followed by the re-surfacing the existing road surface. These have been implemented as holding action until such time that reconstruction is economically possible. These were not upgrade projects that will see 100% of existing road pavement being reconstructed. The next maintenance action planned within the lifecycle plan of this road will entail the upgrade project. The two special maintenance contracts had the total costs of R178.4 million, where:

• Phase 1:   SPECIAL MAINTENANCE OF NATIONAL ROUTE R75 SECTION 4 FROM JANSENVILLE TO R63 INTERSECTION PHASE 1 (KM -0.4 TO KM 35.0 AND KM 51.0 TO KM 59.1) – Total Construction Cost – R 79 458 348. 99
• Phase 2: SPECIAL MAINTENANCE OF NATIONAL ROUTE R75 SECTION 4 FROM KM 35.0 TO KM 51.0 PHASE 2. Total Construction Cost – R 98 992 869,61

2. Primary Contractors were:

• Phase 1: ROADSPAN SURFACES (PTY) LTD
• Phase 2: TAUPELE (PTY) LTD

3. The expected durability of the resurfacing is 8 to 10 years, but this is dependent on several variables such as traffic, climate (rainfall) and existing road pavement condition before the repairs. For roads in poorer pavement condition such as this section of the R75, it can be expected that pavement defects will manifest in 2 to 5 years following the resurfacing treatment on some areas that was not patched before the resurfacing.

4. The contractor is obliged to effect repairs for defects liability period of 12 months after completion of the project.

• Phase 1: Defects liability period was 28 November 2019 to 28 November 2020.
• Phase 2: Defects liability period 10 September 2021 to 10 September 2022.

5. From the reference distance, the potholes were located on Phase 1 project, for which defects liability period has come to an end on 28 November 2020. Investigation has shown that in this instance the potholes were not related to patches done under the special maintenance contract, and thus not related to the quality of contractor’s work. The pothole repairs on the affected section are for the account of SANRAL and were completed by SANRAL Routine Maintenance Contractor on 7th June 2022.

Reply:

Repairs on road R556 near Sun City would have been done, but it has been delayed by the court matters relating to 2017 Preferential Procurement Policy Framework Act. Now that this matter has been clarified, the procurement processes will commence during the third quarter of the financial year and a suitable contractor will be appointed.

Reply:

1. The Taxi Relief Fund Project was successfully launched 11 January 2022. The Taxi Relief fund project was extended by Cabinet till end March 2023.

Total number of Operating Licenses successfully applied as 20 June 2022 – 74 320 out of 142 075 = 52.31%

Province	Total Qualifying OL's	Total Applied	%
Eastern Cape	13117	6960	53.06%
Free State	8258	3040	36.81%
Gauteng	39810	19159	48.13%
KZN	18152	9906	54.57%
Limpopo	13833	9294	67.19%
Mpumalanga	16260	9213	56.66%
North West	12751	7215	56.58%
Northern Cape	2602	668	25.67%
Western Cape	17292	8865	51.27%
Total	142075	74320	52.31%

2. The Department has not made any financial contributions towards taxi associations in the past three financial years. Taxi associations are voluntary structures that are self-sustainable from member contributions.

Reply:

1. (a) SANRAL is not conducting any operations from 59 Schoeman Street Mokopane, Limpopo. SANRAL appointed Quality Plant Hire/Expectra 388 JV (Contractor) through an open tender process on contracts R.518-020-2016/1 & R.518-020-2016/2 which started on 03 October 2016 and was completed on 29 April 2019. In terms of the conditions of contract, once appointed, contractors enter into private arrangements for the accommodation of their staff and for sourcing of offices from which they may execute the contract. In line with this approach, Quality Plant Hire/Expectra 388 JV established their site office at 59 Schoeman Street Mokopane, Limpopo. Since this is a private contract between the contractor and the landlord, SANRAL is not a party to the agreement signed between the Quality Plant Hire/Expectra 388 JV and property owners. Additionally, since this matter is subject to litigation under case number 9088/2021 in the High Court of South Africa (Limpopo Division, Polokwane), it remains sub- judice’.

(b) As indicated the contracts with SANRAL ended on 29 April 2019, and since SANRAL is not a party to the agreement signed between Quality Plant Hire/Expectra 388 JV and the property owners, SANRAL does not have the full details of the number of people who might have worked at the site. These details would be in the possession of Quality Plant Hire.

(c ) As indicated Quality Plant Hire/Expectra 388 JV established their site office at 59 Schoeman Street Mokopane, Limpopo for SANRAL projects R.518-020-2016/1 & R.518-020-2016/2. The reason for selecting this site would have been considered by Quality Plant Hire/Expectra 388 JV as a private entity. SANRAL has asked Quality Plant Hire/Expectra 388 JV for their input, but they have indicated that this matter is subject to a litigation under case number 9088/2021 in the High Court of South Africa (Limpopo Division, Polokwane) and hence they cannot comment on this matter.

(d) As indicated the site was selected by a private contractor Quality Plant Hire/Expectra 388 JV, and SANRAL was not involved in that process.

2. (a), (b), (c) SANRAL is not a party to the agreement signed between the Quality Plant Hire/Expectra 388 JV and property owners and can thus not respond to these questions.

3. It is our understanding that the lease between the parties allowed for the commercial use of the property. SANRAL further notes that changes in land-use will generally be managed by the property owner. In this regard, SANRAL has no further information on the processes that might have been followed for a change in land-use, if any.

(4) In terms of the records SANRAL has, there were no outstanding matters relating to the site that SANRAL is aware of.

(5) As the honourable member may be aware, SANRAL is an independent statutory company established in terms of the South African Companies Act and is governed by a board of directors with Minister of Transport being the sole Shareholder representing Government. Since the Board is the Accounting Authority of the Entity, the Board is in a better placed to make the necessary pronouncement at the opportune time in this regard.

Reply:

The information below indicates that since the launch of Integrated Security Plan, PRASA has experienced a steady decrease in crime incidents and crime spots are beginning to stabilize. The phase-in approach of security intervention both in the form of physical guards and technology will ultimately bring about a total eradication of crime within PRASA environment and it points to a promising future of crime free situation.

 

Reply:

a\) The Minister of Public Service and Administration has determined, in terms of section 3(3)(c), read with section 5(4) of the Public Service Act, 1994, GPSSBC Resolutions 3, 5, 6, and 9 of 2009, effective from 1 July 2009 the Occupation Specific Dispensation (post and salary structures) for Engineers.

Road Authorities have an instrument that is used as an incentive for persons employed by the Government through the payment of the OSD Allowances to the qualifying staff.

As the Department of Transport, there is an opportunity provided and available for Road Authorities to send their engineering graduates for practical training at the SANRAL Technical School. There are no cost implications for the Road Authorities, except for the travelling and accommodation for the staff they send to the SANRAL Technical School.

b) The measures put in place at SANRAL are (i) the implementation of their Transformation Policy and the establishment Project Liaison Committees, wherein there is on-going stakeholder engagements taking place to avoid project disruptions.

In the event of problems experienced with persons or organisations trying to exhort money from the Contractors, these matters are reported to the South African Police Services who have prioritised their operations to deal with such matters.

Reply:

Section 19(6) of the DORA allows us, in the case of disasters, to spend money outside the grant conditions and through a joint request with the NDMC. According to the National Treasury as soon as the Appropriation Bill and DORA Bill is enacted, the DORA can then be amended to make additional provisions in the Provincial Road Maintenance Grant that will be ring fenced for rebuilding of all damaged roads due to the floods.

As soon as the above processes are completed, the approved funds will be transferred.

Reply:

The national roads in the North-West totalling 2513 km under the South African National Roads Agency SOC Limited (SANRAL) have active routine maintenance contracts in place and are well maintained. In addition, a further estimated R3.8 bn will be spent over the next three years on various maintenance and improvement projects on these national roads in the North-West which will result in the addressing of identified defects on those national road sections that are at the end of their original 20-year design life.

The challenge is with the portions of the national road network which are not currently under the jurisdiction of SANRAL i.e., the N12 through the towns of Wolmaransstad, Klerksdorp and Potchefstroom. Various engagements with the North-West Province are currently underway by my Department which has resulted in SANRAL being appointed as the Implementing Agent by the Province for urgent repairs on the N12 through those towns and those works are currently in progress. As part of these engagements the remaining sections of the national roads in the North-West Province (including the N12) will also be permanently transferred to SANRAL to ensure their proper maintenance.

Reply:

a) The following table shows the fatal crashes and fatalities from 1 Jan 2022 to 31 May 2022 per province

Province	Fatal Crashes
EC	443
FS	207
GP	733
KZN	641
LP	408
MP	262
NC	116
NW	249
WC	475
Grand Total	3534

b) Recorded causes in each of the 2 cases

According the information received from the crash investigation team, the causes of the two crashes on the N3 were as follows;

• Saturday 28 May 2022 Fatal crash ;
• The accident involved 2 trucks which were both travelling on the fast lanes prohibited for trucks at the said location, at speeds too high for the conditions where upon the one which had mechanical brake failure fatally ramped at the back of another resulting in the high number of the 16 fatalities recorded .
• There is proper signage channelising heavy trucks into a single left lane but from time-to-time drivers ignore the road signs and utilise the right hand lanes exclusively reserved for light motor vehicles.
• Since the road construction begun in the area there has been a number of accidents caused by drivers who were travelling at high speeds for conditions and not reducing speeds as expected.

• Sunday 29 May 2022 Fatal crash ;

According to the crash investigation team there were no signs of attempted braking during the crash identified at the scene which supports the suspicion of fatigue as the main cause of the crash resulting in the high number of the 10 fatalities recorded. The stretch of road where the fatal crash occurred is not a high risk crash site and this was an isolated incident.

c) measures have been implemented to prevent the recurrence of such accidents.

• In relation to the KZN N3 Peter town identified high risk area the KZN Provincial Traffic have engaged Sanral to extend the channelising signages further down past the mall and have prioritised the deployment of officers from 22H00 to 06H00 until the end of the road construction.

• In relation to the N3 Grootvlei fatal crash the Mpumalanga Provincial Traffic will closely monitor the area through the current N3 team assigned to that stretch of the road.

Reply:

a) The Department of Transport is currently assisting Road Authorities through the Shamba Sonke Programme and it is a nation-wide initiative involving all Provincial Road Authorities.

Provincial Road Authorities are supported through this Provincial Road Maintenance Grant (PRMG):

• for routine, periodic, and special maintenance;
• for rehabilitation of paved roads, limited to a maximum of 25% of the value of the PRMG allocation per province;
• to ensure all roads are identified, proclaimed and reclassified as per the COTO publication TRH26 Road Classification and Access Management Manual;
• to collect road inventory data to maintain an up-to-date RAMP;
• for the repair of roads and bridges damaged by declared natural disasters;
• to improve the state / condition of the road network serving rural areas; and
• to improve road safety with a special focus on NMT safety

The PRMG is also used on the rural road networks to gather road data where District Municipalities are supported through the Rural Road Asset Management Systems Grant (RRAMSG) to:

• collect condition data (paved and unpaved) for the municipal road networks within the boundaries of the District Municipality in accordance with the COTO publication, TMH9 Manual for Visual Assessment of Road Pavements;
• collect traffic data on selected intersections of the municipal road network;
• collect data on the condition of structures (bridges and culverts) as per the COTO publication, TMH19 Manual for the Visual Assessment of Road Structures; and
• develop a Road Asset Management Plan (RAMP) in line with the COTO publication, TMH22 Road Asset Management Manual to inform maintenance and investment via the Municipal Infrastructure Grant (MIG).

The inspections in loco are performed by the technical teams to ensure quality assurance of road infrastructure delivered. Back to basic ethos are adhered to within the limited scarcity of technical resources.

b) In terms of the Division of Revenue Act (DORA), these funds has to be transferred to the Provinces and municipalities, who are the “implementing Agents”. Therefore, at this stage, the Department is reliant on the Provinces and Municipalities to insource the works as much as possible.

In most provinces, there is some form of insourcing taking place through implementation of projects using in-house teams. In the case of the Western Cape, additional insourcing is taking place through the appointment of the District Municipalities as an Implementing Agent by the province. The District Municipalities has their own staff.

The Department intends to change the Schedule of these grants to become an “Indirect Grant”, which allow the department to implement the works on behalf of the Provinces and Municipalities.

If this proposal is accepted by the Budget Council and the DORA is supported, as such, by Parliament and approved by the President, the Department plans to insource the works as much as possible within reason.

Reply:

(a) The question makes reference to the potholes in Bloemfontein. It is therefore important that roads in an around Bloemfontein are being maintained by The Mangaung Metropolitan Municipality (MMM) as well as the Department of Police, Roads and Transport (DPRT). MMM would therefore be responsible for all urban roads, while DPRT predominantly have custodianship of peri-urban and rural roads. This reply is therefore in relation to the broader Mangaung Metropolitan Area.

It is also important to consider that the MMM relies on the Municipal Infrastructure Grant (MIG) to perform their maintenance, while DPRT relies heavily on the Provincial Roads Maintenance Grant (PRMG) in terms of its maintenance strategies. The PRMG has strict conditions that allows for 25% of the grant to be used for upgrades and the remaining 75% for maintenance activities. This is in contrast with the prevailing road conditions which warrant and require upgrade-related activities, as opposed to the maintenance activities that the grant makes provision for. For this purpose, intense engagement is required from Provincial Treasury to ensure that funding is availed through the Infrastructure Enhancement Allocation for the necessary upgrades. Alternatively, the strict PRMG conditions require relaxation in order for the country at large to be able to mitigate the current backlog in road maintenance. If this is not achieved, Provinces will continuously be challenged with the situation whereby maintenance is performed in line with grant conditions, while the actual need on the ground is much more intense and borders on upgrade activities.

A recent presentation by NDOT suggests that the South African road network was not planned for the current traffic volumes. A large volume of traffic have migrated from rail to road and households currently procure several vehicles as opposed to one vehicle per family as anticipated when the broader road network was planned.

This, as well as the delay of timely routine maintenance activities, contribute to the state in which road are.

The delay in maintenance, results in exponential repair cost if left unattended.

Information obtained from MMM suggests that their road network within Bloemfontein is as follows:

• Mangaung Metro contains a total of 3800km of road network entailing 2200km of unsealed and 1600km of sealed roads.
• Conditions are generally poor across most of the areas with about 90% of the bituminous road seal needing urgent attention to prevent moisture ingress and extend the life of the underlying pavement layers.
• Rehabilitation backlogs is also substantial with 35% of the pavement layers being in a very poor condition.
• Thus, Mangaung Metro Municipality should undertake a project of road network resealing and rehabilitation.

(b) The current conditions requires a total amount of R981 054 417 that will be distributed as follows due to capacity and available budget for the following activities:

• • Rehabilitation of 106km of sealed network
  • Treatment of 335km of sealed network with Micro Paving of 15 mm thick.
  • Replacement of 230km access streets with paving blocks. To avoid high maintenance costs on access roads of functional class 5.
  • Treatment of 30km of sealed network with Asphalt overlay.
  • Application of slurry seals preceded by application of Diluted Emulsion, crack sealing and patching for 149km

The anticipated catch-up period is as follows:

July 2022 to June 2023 R 339 112 210

July 2023 to June 2024 R 272 047 480

July 2024 to June 2025 R 369 894 727

TOTAL R 981 054 417

Similarly, the Department of Police, Roads and Transport have developed a maintenance strategy on its own network consisting of 220km that is being prioritized.

• The estimates are based on current market rates and the available internal maintenance capacity
• Where a service provider is appointed, the cost may differ due to other Logistical and General contractual obligations
• The underlying road pavements of most sections need to be rehabilitated thoroughly to prevent further defects and deterioration.
• The annual Routine Road maintenance must be considered, and have an annual budget allocation to attend ongoing road deterioration. Due to current procurement status of the said Maintenance strategy, costing was done with the aim of addressing it in one financial year as follows:

Description	Amount (R )
Material	R21 331 416,96
Material Transport (10%)	R 2 133 141,69
Labour	R7 250 040,00
Plant & Equipment	R6 849 888,00
Sub Total	R 37 564 486,65
VAT 15%	R5 634 673,00
TOTAL	R43 199 159,65

Reply:

a) The assessments have been undertaken by teams of engineering specialists and project managers within SANRAL, complemented by specialist consulting engineering firms.

b) (i) and (ii) as per table below:

c) Procurement documents are in the process of being finalised where applicable for the sites indicated above. In the interim, holding actions are being undertaken by routine road maintenance contractors.

Reply:

Since the RTMC is on the accrual basis, the below table outlines the opening balance for the respective periods, transaction fees billed to the provinces as well as the actual transaction fees paid over by the respective provinces to the RTMC.

It is important to note that transaction fees due to the RTMC is exclusively applicable to vehicle licence disc renewals. On a continuous basis, the RTMC shows an under collection on transaction fees. Provinces have indicated that this is due to municipalities not paying over all the funds to them and in turn the province not paying the full amount to the Corporation. Even though the recovery rate of the transaction fees have improved, there are still provinces that maintains a unremitting growth in the amount owed to the Corporation.

Reply:

a) What has been done so far?

Following the National Taxi Lekgotla held in October 2020, the Department established a Joint Technical Task Team (JTTT) to oversee the implementation of Lekgotla resolutions. The JTTT is comprised of government and the taxi industry. An Implementation Plan has been developed to guide the process and serve as a monitoring tool in as far as progress is concerned in terms of short, medium and long term activities. The implementation of short-term activities has commenced.

b) the envisaged implementation date of the taxi subsidy; if not, why not; if so, what are the relevant details?

The Department is developing a Public Transport Subsidy Policy that will guide the distribution of subsidies in line with demand without focusing on modes of transport. This implies, amongst others, that the policy is advocating for the inclusion of other role players such as the minibus taxi operators in the public transport subsidy. The policy is currently being consulted with stakeholders and will be submitted to Cabinet for approval and only then will it be implemented.