Questions and Replies
24 November 2023 - NW3255
Chirwa-Mpungose, Ms NN to ask the Minister of Higher Education, Science and Innovation
(a) Which glitches was he referring to when addressing systemic issues at the National Student Financial Aid Scheme (NSFAS), (b) how will the systemic issues be resolved, (c) what effect has the systemic issues at NSFAS had on the students funded by NSFAS and (d) by what date does he envisage the systemic issues will be resolved?
Reply:
a) Minister was referring to system glitches that were experienced during disbursement processes, there were registration data changes that was requested to be amended. (b) As per these changes that were requested the issue was resolved. (c) Payments to students was delayed by 2 days. (d) The issue was resolved. The system changes were made as requested by stakeholders and actioned. R119 million was allocated by DHET to support procurement of new systems. NSFAS reported that a new application system has been developed.
24 November 2023 - NW2930
Mbabama, Ms TM to ask the Agriculture, Land Reform and Rural Development.
(1) Whether she has found that the Magwa and Majola Tea Estates in Lusikisiki and Port St Johns in the Eastern Cape have reached operational sustainability; if not, what is the position in this regard; if so, what are the relevant details; (2) what total number of local persons does each specified estate employ?
Reply:
1. Agriculture in the Eastern Cape Province to which these entities fall. The national government is interested in the functioning and performance of these entities because they contribute to the agricultural economy, rural development and livelihoods.
From the responses of the province and our own assessment, we cannot say the two entities have reached optimal sustainability.
According to the Eastern Cape Department of Agriculture, No. Magwa-Majola Tea Estate has not reached operational sustainability currently, however great strides have been made in turning the entity around since the Business Rescue Exit (16 February 2016 to 4 June 2019). The COVID-19 pandemic, falling tea prices, increased import of cheap tea’s and the Russia and Ukraine conflict-induced supply chain disruptions resulted in high import and export inflation.
The geo-political instability and recession in countries such as Egypt, Pakistan and other former Soviet Union countries has resulted in tea from Kenya, Rwanda and Tanzania being redirected to South Africa creating a highly competitive trading environment. Production efficiency increased over the year by 206% from 19KG (2019/20) to 59KG (2022/23). This is how we understand the operation and use of data in our planning and decision-making process.
The Board and Management of Magwa Enterprise Tea (MET) met on 7 June to review all current and previous plans and strategies with the aim of developing a more implementable and realistic turnaround strategy that will lead to a self-sustaining tea business. This process is continuing with the view of presenting a final strategy with short, medium, and long-term goals. The focus of the company and its turnaround strategy is as follows:
- Change of business model from bulk to teabag revenue; streamlining product portfolio and developing a focused channel strategy.
- Factory and machinery upgrade.
- Food safety certification.
- Plant restoration.
- Crop and revenue diversification.
- Stakeholder management and resolution of land ownership.
- A circular economy: organic fertiliser, change from coal to wood briquettes for factory boiler.
MET is a State-Owned Enterprise (SOE) and it would be beneficial for state facilities (government offices, prisons, hospitals, and municipalities) to consume only Magwa-Majola tea brands rather than tea manufactured by companies competing with MET.
Progress is being made on the following:
- Mechanisation (motorised tea harvesting equipment), 30% of the estate harvesting will be mechanised while 70% remains manual – also creating new job opportunities for youth in engineering and mechanics; increased production and revenue and profitability while cost per KG is decreased. The change in the operating model will see 1494 jobs in the field of operations being maintained and sustained. The project costing and roll-out programme are being finalised and await funding. The entity will break even in the second year after the implementation of the tea harvesting machine.
- Diversification programme to de-risk the entity’s dependency on a single commodity - Forestry Enterprise Development Agreement under review by the Board; Bee-hive keeping and Biotech flu-vaccine for broiler chicken from green tea extract. These are highly profitable and sustainable programmes.
- Land tenure resolution - Land settlement agreement for Location 32 Lambasi also known as Magwa owned by the former Department of Land Affairs has been agreed to be handed over to the claimants; the agreement was signed by former Minister of Agriculture and Land Affairs: Ms L Xingwana on 18 November 2006; however, the transfer of ownership and title deed is outstanding to-date. MET together with the Office of the Premier and Mr Zama Memela of the Land Claims Commission to resolve the transfer.
2. MET Management Response:
Both Magwa and Majola employment statistics:
Financial period |
2019/20 |
2020/21 |
2021/22 |
2022/23 |
2023/24 |
Permanent |
647 |
481 |
474 |
452 |
365 |
Seasonal |
1032 |
847 |
506 |
296 |
152 |
Total |
1679 |
1328 |
980 |
748 |
517 |
24 November 2023 - NW3296
Buthelezi, Mr EM to ask the Minister of Public Enterprises
Whether he intends resigning from the Cabinet in light of the failure of the state-owned entities under his watch and administration; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
No!
Each SOE is on a challenging recovery path, and each has met with some success. The boards are working diligently to overcome the effects of State Capture and restore the entities to effective operations.
Eskom
Eskom is making remarkable strides toward energy stability and sustainability. Their Generation Recovery plan has already recovered 1,535 MW between April and September 2023, with a goal of achieving a 65% Energy Availability Factor (EAF) by March 2024. This progress is poised to reduce the intensity and frequency of load shedding while increasing grid capacity. Furthermore, Eskom has significantly improved Energy Availability in coal-fired stations and accelerated maintenance at the Kusile Power Station, bringing units online earlier than scheduled and reducing the impact of load shedding. Their partnership with independent power producers (IPPs), which will add 9,421 MW of renewable energy capacity, underscores their commitment to clean energy solutions. Eskom is also actively restructuring the company into three subsidiaries to promote efficiency, accountability, and the adoption of new technologies. The recent debt relief package from the government, along with efforts to strengthen the transmission grid and combat corruption, further solidifies Eskom's position on the path to a sustainable and reliable energy future for South Africa.
In addition to these advancements, Eskom has made significant progress in addressing financial challenges and enhancing its corporate structure. The debt relief package of R254 billion from the government and measures to write off municipal arrear debt demonstrate Eskom's commitment to financial sustainability. Their focus on strengthening the transmission grid, with a special emphasis on the first 1,000 km of power lines, underscores their readiness to accommodate power from independent producers. Importantly, Eskom's anti-corruption efforts have led to a number of arrests, the recovery of substantial assets, and the pursuit of criminal cases, affirming their resolve to protect the integrity of the company and public funds. These combined efforts paint a promising picture of Eskom's commitment to a more stable, sustainable, and accountable energy future, ultimately benefiting the people of South Africa.
Transnet
On 1 September 2023, I directed the Transnet Board to urgently address and report to the shareholder on its decisions and recommendations within the next few weeks in respect of, inter alia the following:
- Operational transformation: Develop or enhance a turnaround plan to radically transform the operational performance of each of the business areas, including the restructuring of the entity to deliver on its mandate more effectively and efficiently.
- Root causes: Identify the root causes of the inability of management and staff to meet the performance targets and a plan to deal with the deficiencies.
- Stringent / rigorous accountability Oversight: Transnet to develop, with the DPE and National Logistics Crisis Committee (NLCC), a new framework for transparency and accountability through detailed reporting on the successful execution of the turnaround strategy.
- Digitisation of systems: Mechanisms to speed up the automation and digitisation of performance reporting systems to prevent deliberate and wrongful manipulation of data.
- Rigorous system of controls: Implement urgently the controls identified by the Auditor General reports.
- Private sector participation: Transnet is in the process of getting private sector involved in various capital projects. For example, a reputable international private sector partner has already been identified for the development and operation of a container terminal at the port of Durban.
Alexkor
- Alexkor is solvent and does not have any interest-bearing debt. Alexkor’s financial position has limited financial risk as the largest liability will be settled by ring-fenced funds.
In January 2022, I appointed an interim board to restore governance amid years of instability. The appointment process for a permanent CEO and CFO is underway.
In 2019, we initiated a forensic investigation into allegations of maladministration and corruption. This led to significant findings, prompting President Cyril Ramaphosa to authorize the Special Investigating Unit (SIU) to delve into corruption and maladministration in Alexkor and joint venture diamond operations on December 10, 2021. We remain resolute in our commitment to transparency, justice, and ethical governance as we pave the way for a brighter future.
South African Airways
There have been notable strides in the SAA Strategic Equity Partner (SEP) transaction. The recent approval of the transaction by the Competition Tribunal offers the potential for a significant turnaround. It provides the opportunity for SAA to comprehensively address and overcome its longstanding financial difficulties, with the added benefit of mitigating the compounding effects of the COVID-19 crisis. By securing a strategic equity partner and fostering collaboration, SAA may embark on a path towards financial stability and long-term viability, marking a pivotal moment in its recovery journey. Currently, it has expanded its route network 11 destinations and increased a number of aircraft 9 with further expansion expected over the short and medium term. It also plans to commence international routes with the first flight to Brazil expected shortly.
SAFCOL
SAFCOL's unqualified audit and INFLOMA's clean audit underscore SAFCOL’s financial responsibility and transparency. With a notable R285 million profit, SAFCOL is not only stable but also positioned for growth, especially as it pursues projects like CHP to mitigate load shedding risks. SAFCOL’s initiatives further highlight its commitment to social responsibility. SAFCOL is a thriving, responsible organization, ready to embrace future opportunities and challenges.
Denel
In the past three years, Denel was faced with significant viability challenges. The malfeasance linked to State Capture and poor management decisions resulted in a steep decline in revenues and profitability since 2017/18, reversing a 7-year trend of good governance, growth, and profitability. This culminated into in a weak balance sheet, declining order book, poor operational performance, unpaid salaries and suppliers which resulted in an erosion of key defence industrial capabilities and loss of critical skills.
Government has made significant interventions to stabilize the SOC. In the past five financial years, the State has injected into Denel approximately R9 billion., including settling guaranteed debt which was keeping Denel in a debt trap due to high interest payments. The intervention has resulted in an appreciable improvement in the market sentiments (employees, clients, partners, financial institutions, and suppliers) regarding the clarity of Government’s strategic intent with respect to Denel.
The focus in the near term, the Department is inducing Denel to optimise on short term revenue opportunities to ensure that the SOC can fund its operational requirements and deliver on existing contracts.
Despite the challenges of the prior years, the interest by both local and international entities as well as governments to collaborate with Denel on various defence technologies has not remains high.
Remarks: Reply: Approved / Not Approved
Melanchton Makobe P J Gordhan, MP
Acting Director-General Minister
Date: Date:
24 November 2023 - NW2108
Ramadwa, Ms MM to ask the Minister of Transport
What (a) are the details of the implementation program and/or plan of the SA National Roads Agency SOC Ltd’s Vala Zonke Campaign that deals with the problem of potholes (details furnished) and (b) has there been coverage of the Vala Zonke campaign to date?
Reply:
a) The Vala Zonke Campaign is a National campaign under the auspices of the Department of Transport in line with directives of the Presidential Economic Retreat Resolutions (31 May – 1 June 2022)
- The Transport MINMEC of 1 August 2022, adopted the intervention plan to fight against potholes and general road refurbishment and improvement that triggered the launch of Operation Vala Zonke, on 08 August 2022 in Emfuleni Local Municipality in Gauteng as part of the build-up to Presidential Imbizo that took place on 12 August 2022. All provinces had simultaneous launches on the same day.
- The SANRAL Transport Integrated Information System (ITIS) was availed to all Road Authorities for the provision of Centralized Repository and Asset Management Services with a Mobile Pothole Reporting APP that enables the public to report potholes wherever they are encountered.
The plan envisaged to have a central platform, using an automated system to (a) allocate a complaint, (b) track progress, (c) identify and resolve delays, (d) intervene (provide support) to address service delivery and (e) provide feedback to the public using the APP.
b) The coverage of the Vala Zonke campaign is that, to date, just over 44 949 potholes were reported on the National Pothole Public App and Routine Road Maintenance App according to the highest Province with the highest concentration whereby twelve (12) teams were set up comprising of officials from the Department and SANRAL to verify (track and trace) all potholes reported to determine their status through the Operation MBO.
- Operation MBO found that Gauteng tops the table with a total of 20 220 followed by Free State with 7 067 whereas Northern Cape reported 464 on the bottom of the table.
- By 07 Nov 2023, there were 138 928 downloads of the National Public Pothole Reporting App 44 949 potholes were reported as per the National System. The biggest challenge is that most potholes complaints cannot be correctly and automatically be allocated using the system. It is on this basis that municipalities were trained by SANRAL on the use of ITIS system and as a result, provinces and municipalities are invited to regularly visit the War Room to received update and progress on the reported potholes and follow-up.
24 November 2023 - NW3146
Abrahams, Ms ALA to ask the Minister of Social Development
(1)What are the reasons that district surgeons are used in KwaZulu-Natal and not in other provinces; (2) what are the reasons that assessment doctors have not submitted their invoices for payment in the Gauteng, Mpumalanga and the Western Cape provinces?
Reply:
1. SASSA utilises medical practitioners in the employ of the Department of Health doctors who were previously referred to as District Surgeon in all the provinces. While other provinces have changed the title, it is still being used in some provinces, but basically refers to same. There is no different arrangement for KZN. The medical practitioners conduct social assistance assessments.
2. According to our records, there are no outstanding invoices or outstanding payments for medical practitioners in any of the SASSA regions. Where such exists, it is because some medical practitioners prefer to submit their combined monthly invoices (that cover a number of months) for a bigger claim amount. On a continuous basis, SASSA encourages timely submission of invoices by doctors. All invoices that have been submitted have been processed.
24 November 2023 - NW3289
Mkhwanazi, Ms JCN to ask the Minister of Public Enterprises
Considering that two of the most important state-owned entities (SOEs) in the Republic, namely Eskom and Transnet, are without a permanent Group Chief Executive Officer and that the specified SOEs are marred by financial and operational challenges, (a) what steps has his department taken to date to address external political interference as the deeper cause of the leadership vacuum in Eskom and Transnet and (b) how does his department intend to ensure that the leadership vacuum does not stall the implementation of the turnaround plans geared towards making sure that Eskom and Transnet become financially viable to act as catalysts for economic transformation and empowerment?
Reply:
1. (a) State capture was characterized by intensive levels of political interference, with Eskom and Transnet emerging as focal points of this concerning phenomenon. These SOEs faced undue external influence, compromising their governance structures, decision-making processes, and overall operational integrity. Political interference led to the appointment of key executives and board members who were compromised, resulting in leadership that was not best suited to address the complex challenges the SOEs faced.
However, various interventions were made to ensure operational viability and sustainability of Eskom and Transnet.
The interventions to date include:
1.1 Eskom
I have instructed the Board to expeditious address the following issues:
- 1.1.1 Management Structure / Skills
- Review and enhance leadership team to capacitate all subsidiaries for effective objective execution.
- Expedite filling critical vacancies.
- 1.1.2 Restructuring - Eskom Roadmap 2 and Implementation
- Develop a revised Eskom Roadmap guiding the restructuring process.
- Ensure the plan addresses external dependencies.
- Capacitate the executive team with the right skills.
- 1.1.3 Finance
- Develop a comprehensive allocation policy for assets and debts post-restructuring.
- Continue cost-cutting exercises with defined targets discussed with the Department.
- Capacitate the Treasury team to ensure compliance with debt relief conditions for loan-to-equity conversion.
- 1.1.4 Forensic Investigations
- Conduct robust forensic investigations to isolate irregularities.
- Implement consequence management for those found in the wrong.
- Test the internal control universe to ensure timely detection and prevention of irregularities.
1.2 Transnet
On 1 September 2023, I directed the Transnet Board to urgently address and report on its decisions and recommendations in respect of, inter alia the following:
- 1.1.1 Operational transformation: Develop or enhance a turnaround plan to radically transform the operational performance of each of the business areas, including the restructuring of the entity to deliver on its mandate more effectively and efficiently.
- 1.1.2 Root causes: Identify the root causes of the inability of management and staff to meet the performance targets and a plan to deal with the deficiencies.
- 1.1.3 Stringent / rigorous accountability Oversight: Transnet to develop, with the DPE and National Logistics Crisis Committee (NLCC), a new framework for transparency and accountability through detailed reporting on the successful execution of the turnaround strategy.
- 1.1.4 Digitisation of systems: Mechanisms to speed up the automation and digitisation of performance reporting systems to prevent deliberate and wrongful manipulation of data.
- 1.1.5 Rigorous system of controls: Implement urgently the controls identified by the Auditor General reports.
- 1.1.6 Private sector participation: Transnet is in the process of getting private sector involved in various capital projects. For example, a reputable international private sector partner has already been identified for the development and operation of a container terminal at the port of Durban.
2. There is no leadership vacuum at both SOEs as there is an adequate complement of the Board with Acting Group Chief Executive Officers and Acting Chief Financial Officers. Of importance is that in respect of Transnet the focus is on operational and financial performance that the Minister needs to address as per the statement dated 1 September 2023.
3. In relation to Eskom, it is noteworthy that the former Group Chief Executive Officer (GCEO) operational performance has deteriorated under his watch.
4. It is important to indicate that the recruitment process for the Group Chief Executive Officer (GCEO) is carried out by the Board in accordance with the provisions outlined in the Memorandum of Incorporation, which aligns with the standard procedures across the Department of Public Enterprises (DPE) portfolio. The Board will run the recruitment process including the advertisement, shortlisting and interviewing of candidates. The Board will then present to the shareholder three appointable candidates. The shareholder will then approve the appointment of a candidate.
Remarks: Reply: Approved / Not approved
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
24 November 2023 - NW3339
Graham-Maré, Ms SJ to ask the Minister of Public Enterprises
(1) What number of (a) houses were identified for the smart meter pilot in Fourways, Gauteng, (b) the specified households have acceded to the installation of the smart meters and (c) smart meters have been installed as part of the specified programme. (2) (a) who installed the meters and (b) what are the relevant details of the costs associated with installations?
Reply:
According to Information Received from Eskom:
The smart meter installation programme is an Eskom Distribution wide programme which was implemented in all the provinces to ensure alignment to the Distribution key initiatives of growth, efficiency and servicing the customers better. It is not confined to Gauteng and Fourways only.
(1)(a) The total number of houses identified for the smart meter installation programme in Gauteng was in excess of 35 000, in Sandton, Midrand and Soweto.
(b) A total of 30 597 customers in Gauteng acceded to the installation of smart metersand in Fourways approximately 10 000 meters were installed as part of the smart meter programme. Furthermore, approximately 8 000 houses also acceded to the load limiting pilot that required the use of smart meters.
Load limiting seeks to manage the demand during periods when emergency is declared such as when the system is constrained (during load shedding Stages 1 to 4), while at the same time ensuring that customers experience a reduced impact during loadshedding (customers have enough power for lights and electronic appliances during load shedding).
(c) The total number of smart meters installed for the Gauteng smart metering project is 30 597. Of which approximately 10 000 were installed in Fourways.
(2)(a) The smart meters were installed by Landis+Gyr, which was the successful bidder following an open tender procurement process.
(b) The details entail the installation of meters, data concentrators (DC), and customer interface units (CIUs). The cost associated with the installation is approximately R96 million.
Remarks: Approved / Not Approved
Ms Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
24 November 2023 - NW3323
Masipa, Mr NP to ask the Minister of Agriculture, Land Reform and Rural Development
Whether Botswana is currently exporting (a) cattle and (b) beef to the Republic despite the recent outbreak of the Foot-and-Mouth Disease in the specified country; if not, what is the position in this regard, if so, what are the relevant details; (2) what are the reasons that the Republic is facing challenges in exporting to the specified country if the country can export its beef and animal products to the Republic in the context of both countries having experienced incidents of the specified disease?
Reply:
(1)(a),(b) Yes. South Africa still imports cattle and beef from zones in Botswana that are recognised by the World Organisation for Animal Health (WOAH, founded as OIE). Botswana had 6 zones which are recognised by WOAH as free from FMD without vaccination. These zones are separated by fencing and managed separately with very strict movement control between zones, to maintain their free status; as a result, if there is an outbreak in one zone, it does not affect the other zones.
Botswana reported incursion of buffalo in their disease control zones 3b, 3c and 6a in September 2023 which they suspect broke from Hwange National Park in Zimbabwe. These three zones were immediately placed under quarantine. Some buffalo were destroyed and samples collected while some were moved to the Chobe National Park in Botswana. Some of the samples collected tested positive for a SAT 1. Botswana has suspended movements of cloven hooved animals in their zones 5 and 8, and exports suspended.
(2) South Africa lost its WOAH recognised FMD free zone without vaccination status in 2019, with the first outbreak of FMD. South Africa experienced additional FMD outbreaks between 2020 and 2022 which included additional provinces. South Africa has been unable to regain its free zone status to date. Therefore, the whole of South Africa is considered FMD infected, for the purposes of international trade, until South Africa is able to submit documentary evidence to WOAH that South Africa has achieved compliance with the international standards required for a zone to be recognised as FMD free. South Africa could export beef, which has been deboned and matured to deactivate the FMD virus, to Botswana under the authority of a veterinary import permit. Cattle and bone-in or unmatured beef cannot be exported to Botswana.
24 November 2023 - NW3107
van der Merwe, Ms LL to ask the Minister of Social Development
What (a) total amount in Rand of the social relief of distress grants has been returned to the National Treasury in the past financial year and (b) are the reasons that monies meant to alleviate distress did not reach beneficiaries?
Reply:
a) An amount of R4.3 billion was returned to the National Treasury due to the lower than expected up take of the SRD Grant.
b) All applicants for the SRD Grant are assessed on a monthly basis. When their financial situation improves and no longer meet the eligibility criteria or they voluntarily stop applying for the grant, there are significant savings on the fiscus. On average, SASSA pays the SRD Grant to over 8, 5 million eligible applicants every month.
24 November 2023 - NW3325
Cachalia, Mr G K to ask the Minister of Public Enterprises
Whether he has found that the electricity storage via batteries presents the Republic with the best opportunity for a more cost-effective method of developing the capacity of the grid and transmission capabilities than gas as it was projected to by the Independent Institute for Sustainable Development; if not, what is the position in this regard; if so, what are the relevant details? (2) Whether he will furnish Mr G K Y Cachalia with the details (a) quantum of storage that is required and (b) cost thereof; if not, why not; if so, what are the relevant details? NW4445E
Reply:
According to Information Received from Eskom:
1. Battery storage is used by Eskom to support the network during peak loading and ancillary services such as frequency regulation and voltage support.
However, gas is used as mid-merit or peak generation, depending on the prices. Gas can power the network on a continuous basis.
The costs of battery storage cannot be directly compared to those of gas, as battery storage has charging and discharge components. Charging costs and discharging costs differ.
Gas costs are only for electricity generation.
In addition, the use of gas would require new pipelines and gas distribution networks to Eskom substations. The country would have to invest in new gas pipeline networks, and these would need to be built underground and protected which would further increase costs.
2. Storage that would be currently required is about 70% of the installed solar photovoltaic (PV) and wind capacity to ensure power supply continuity equivalent to baseload generation. The storage capacity must accommodate load shedding cycles to be effective. The battery storage costs are in the peak generation range. Using current battery energy storage costs of R11bn for 200M/800MWh, an installed PV base of 5000MW would require 3500W/14000MWh a day at an estimated installation cost of over R192bn noting that this excludes operational costs.
Remarks: Approved / Not Approved
Ms Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
24 November 2023 - NW2895
Roos, Mr AC to ask the Minister of Home Affairs
What (a) is the processing backlog for each type of visa issued by Home Affairs as at 31 August 2023, (b) process is being put in place to clear the backlog and (c) time frame is in place to clear the backlog?
Reply:
a) The processing backlog of Visas and Permits as at 31 August 2023 is 74 309 and 43 944 respectively.
b) The department has developed a plan to address the backlogs. The plan aims to move the older Temporary Residency Visas applications from 2022 concurrently with the current applications of 2023. This will be done by splitting the temporary residence visa team into two. The same approach is being implemented for Permanent Residency Permits. The plan includes the utilisation of its current capacity supported by the additional officials from other branches including those in Provinces. It also includes those officials who have returned from the Foreign Missions after serving their four-year deployment term. Other options are also being looked at to support the above and will be implemented should it be deemed necessary to do so to support the eradication plan.
c) The department envisages to have cleared the backlog by November 2024.
END
24 November 2023 - NW3256
Chirwa-Mpungose, Ms NN to ask the Minister of Higher Education, Science and Innovation
What (a) are the demographics of the 45 000 students who were dismissed by the National Student Financial Aid Scheme (NSFAS) following application discrepancies, (b) are the reasons that NSFAS was unable to assist applicants in correcting discrepancies during the course of the year and/or in the very beginning of the year, (b) primary issues constitute the majority of the discrepancies in the applications and (d) steps does NSFAS intend to take to resolve the specified issues in future?
Reply:
- The demographics of the 45 000 students is not immediately available, the Department will ask NSFAS to retrieve the data from its systems.
- The discrepancies were only picked up after data remediation which takes place on the 28th March 2023 up to 29th June 2023 and these were only communicated to affected applicants, NSFAS communicated to students on the 10th of July 2023 via a media statement after they were picked up.
- The discrepancies were caused by the outdated data received from SARS and NSFAS verification processes and financial eligibility assessments. After identifying the problem, NSFAS re-instated 14703 of the continuing students to be funded again and the remaining 31225 students remained unfunded and were given the opportunity to appeal.
- We have implemented system enhancements to mitigate the problem moving forward, we have also moved away from the manual processes that were being utilized. Moving forward, the system will communicate with external parties directly via APIS to ensure that the data is not manipulated in any form.
23 November 2023 - NW3758
Tambo, Mr S to ask the Minister of Police
What (a) was his role at the 2023 Rugby World Cup and (b) were the total costs to the SA Police Service for his (i) accommodation, (ii) travel and (iii) other related expenses?
Reply:
Find here: Reply
23 November 2023 - NW3309
Graham-Maré, Ms SJ to ask the Minister of Public Enterprises
In light of the alleged conflicting views between Members of the Executive, what are the details of the position of the Government on the decommissioning of the ageing coal-fired power stations by Eskom, in favour of incorporating more renewable energy sources in order to claim additional benefits and international funding in the Republic’s Just Energy Transition?
Reply:
The decommissioning of power stations is informed by the age of power stations which have a lifespan of 50 years. In addition, the IRP outlines the decommissioning dates of power stations. The repurposing of the power stations was driven by the fact that, power stations to be decommissioned can be repurposed to integrate renewable energy given that infrastructure is already in place. However, the energy crisis necessitated the review of the decommissioning of the power plants. The review is to enable a just energy transition wherein the power plants will be decommissioned and repurposed once new capacity has been added to the grid. The delays in the decommissioning of the power plants is part of the measures to minimise the impact of the power crisis.
Eskom is expanding the grid to enable connection of renewable capacity that has been approved under respective bid windows in the Renewable Energy Independent Power Producer Programme (REIPPP).
Since the outbreak of various conflicts in the North, many countries have indicated that (as SA has) their commitment to the NDC stands. However, each country’s domestic circumstances will dictate the path to decarbonization. This remains SA’s position.
The issue of funding for developing countries transitions, access to renewable technology, and the concrete plans to ensure the transition is/must still require further efforts.
Remarks: Approved / Not Approved
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3303
Essack, Mr F to ask the Minister of Public Enterprises
Whether he intends to place a temporary moratorium in his department on the recruitment regulation of the Public Service, including the broad-based black economic empowerment requirements, to enable Transnet to recruit skilled personnel, in light of the contribution that poor leadership, crime and a skills shortage had on the current operational crises at Transnet; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
According to the information received from Transnet
The Cost Containment measures issued by National Treasury on August 31, 2023, to assist National Departments, Public Entities, and Provinces do not apply to Transnet. Nevertheless, Transnet is aware of fiscal challenges and is implementing prudent measures in this regard. There is no moratorium on the recruitment of critical skills in Transnet.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister of Public Enterprises
Date: Date:
23 November 2023 - NW3291
Phiri, Ms CM to ask the Minister of Public Enterprises
What (a) is the progress to date regarding the sale of the minority shareholders’ stake in the Takatso Consortium and (b) are the reasons that the specified stake in SAA is valued at 10,2% whilst the Takatso Consortium had not made any investment in the national airline?
Reply:
a) Takatso is currently managing the process. Unfortunately, the Department does not have access to information regarding the negotiations with the minority shareholder. However, once the process is completed, Harith, as the majority partner of Takatso, will inform the Department accordingly.
Furthermore, if the Competition Tribunal approves the divestiture, the public will be informed of the outcome.
b) The stake by the minority shareholder is valued at 10.2% as that was the agreed shareholding by the parties in the Takatso consortium. The investment in the national airline will be made at the close of the strategic equity partner transaction.
Remarks: Reply: Approved / Not Approved
Jacy Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW2810
Shaik Emam, Mr AM to ask the Minister of Public Enterprises
(1) What (a) are the relevant details of the (i) sale of the SA Airways (SAA) fleet to FlySafair and (ii) subsequent leasing of the fleet to SAA and (b) total amount was (i) received for the sale of all aircraft and (ii) paid for leasing the aircraft. (2) Whether any assessment was done on the state of the aircraft; if not, why not; if so, who did the assessment and concluded to sell the aircraft?
Reply:
According to the information received from SAA
(1)(a) The record shows that during Coleman Andrew’s tenure as CEO, the Board on 14 April 2000, considered the sale and leaseback of B737-200 aircraft and approved:
- The sale of 13 B737-200 ADV aircraft (11 passenger and 2 freighters) to SafAir, or a party nominated by SafAir acceptable to SAA.
- That SAA enters a 5 and half year leaseback in respect of each aircraft.
(1)(b) The total amount as per board resolution was.
- Each aircraft sold for USD5.5 million.
- Lease costs were R686 425 per aircraft per month, subject to changes in interest rates and foreign exchange rates.
2. With regards to the assessment of the state of the aircraft, SAA does not have records for answers to this question. Whilst the airline has the resolutions relating to that period (some 20 years ago) the requirement for record retention is limited to 7 years.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3196
Cachalia, Mr G K to ask the Minister of Public Enterprises
Whether reference to Eskom’s plans to update more that 6,6 million prepaid electricity meters before they expire in November 2024 (details furnished), what measures has Eskom put in place to ensure that all electricity meters will be updated by the date of their expiry? (2) Considering that numbers punched into the electricity meters to top up electricity will no longer register after the expiry date of the electricity meters, but will instead lock the device and render it inactive for a certain period, and in view of the fact that Eskom has thus far only managed to update 5 800 of the electricity meters, 0,087% of the total number of electricity meters in the Republic, how does Eskom plan to assist users who are unable to update electricity meters by themselves?
Reply:
According to Information Received from Eskom:
1. As at end September 2023, Eskom had over 6,6 million meters that required recoding with a new Key Revision Number (KRN). A strategy was developed with the following deployment components:
- The do-it-yourself (DIY) approach which ensures that customers are (i) issued with a pair of KRN key change tokens at the time when the customer purchases their normal top-up electricity or (ii) collects free basic electricity via any of the Eskom-approved vending channels and outlets.
- Customer support through a comprehensive communication campaign using regional radio live reads, community print and radio notices, radio interviews, newspaper and radio articles, leaflets, posters, Facebook, X posts, YouTube videos, community forums, customer communiques and the Eskom chatbot.
2. The 5 800 meters that were rolled out were part of a pilot programme for Eskom to gather information and insights on how to best implement the project. Following the pilot, Eskom developed, the automatic update process and prepared for project implementation. As a result, Eskom recently completed the first phase of deployment which ran from August 2023 to September 2023 to clear all the initial teething issues. Based on the results of this roll-out phase, Eskom is confident that the project will be successfully implemented. Key change tokens issued during the first phase are 671 653, and this is additional to the 5 800 that were issued during the pilot phase.
Eskom has developed pamphlets on how to recode (step-by-step- guides) the meter in all official languages and also posted step-by-step guides on social media platforms. Furthermore, Eskom personnel are deployed in areas where the roll-out is taking place to assist with queries, and a dedicated queue has been created to direct customers with KRN-related queries at the contact centre. The number to be used is 0860 037 566. Frequently asked questions have been loaded on the Eskom Alfred Chatbot. In addition, Eskom has ensured that additional personnel are trained to assist customers with queries.
Remarks: Approved / Not Approved
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3326
Cachalia, Mr G K to ask the Minister of Public Enterprises
What are the reasons that he has failed or has been unable to fill the six outstanding Board vacancies as Transnet has six Board members instead of 12, and it is a concern that a depopulated Board hampers the ability of Transnet to address the serious issues faced by the entity?
Reply:
Transnet has a full complement of Board Members, save for the vacancy resulting from the recent resignation of Mr. P Molefe for personal reasons.
Remarks: Reply: Approved / Not approved
Melanchton Makobe PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3019
Cachalia, Mr G K to ask the Minister of Public Enterprises
Whether, in light of the fact that the Transnet Chief Executive Officer (CEO), Ms Portia Derby, allegedly voiced her concerns at a recent Bloomberg event regarding the potential of loss of thousands of jobs in the trucking industry should freight be successfully transferred from the roads to rail (details furnished), he will fire the CEO for the remarks which are arguably tantamount to a gross dereliction of the CEO’s mandate to effect proper rail logistics that enable the flow of commodities to our ports; if not, why not; if so, by what date?
Reply:
According to the information received from Transnet
Ms Derby’s comments, which were in response to a question from the floor, related to the huge growth in trucking in SA as result of the poor performance of rail and boom in global coal demand, have been taken out of context. The issue raised was what would happen to the trucking industry when rail returned to full operability. (Please refer to the statement issued by the Chairperson of the Board of Directors in this regard, as attached.)
Ms. Portia Derby has since resigned.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3194
Cachalia, Mr G K to ask the Minister of Public Enterprises
What is the exact total monetary value of the security contract awarded to a certain company (name furnished); (2) Whether a certain person (name and details furnished) is on suspension pending an investigation into the involvement of the specified person in the awarding of the security contract and the subsequent embezzlement of funds related to it; what is the position in this regard; if so, which other (a) current and (b) former Eskom executives are under investigation for awarding the security contract?
Reply:
According to information received from Eskom
- The emergency transition that led to the appointment of the certain company in July 2022 was allocated a budget of R500 million. The total actual spend was, however, R304 669 040.00 (including VAT).
- The certain person was placed on precautionary suspension pending finalisation of Eskom’s internal investigation into the transaction. The scope of the investigation includes all the individuals who took part in the transaction. The investigation is close to being finalised.
.
Remarks: Approved / Not Approved
Jacky Molisane PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3347
Cuthbert, Mr MJ to ask the Minister of Public Enterprises
What value of electricity discounts has been granted to aluminium producer, South32, in each financial year since the 2007/2008 financial year?
Reply:
According to information received from Eskom:
1. Eskom cannot disclose the electricity pricing arrangements, as these are customer confidential and commercially sensitive information. The electricity pricing arrangements for the South32 aluminium smelter were approved by the National Energy Regulator of South Africa (NERSA). A new tariff structure was approved by NERSA in 2021 and complies with all the provisions of the Interim Long-Term Negotiated Pricing Arrangement Framework issued by the Department of Mineral Resources and Energy (DMRE).
A globally competitive tariff that considered the sustainability of the smelter and Eskom’s cost of supply was structured, as it was recognised that closure would have a negative impact on the South African economy and continue the trend of deindustrialisation and unemployment with which the country continues to grapple with. The tariff approximates the higher end of energy prices that aluminium smelters are paying and covers all applicable variable costs, with an additional contribution made to fixed costs.
In the absence of the smelter, contributions made by it to fixed costs would have to be borne by other consumers, resulting in an increase in other consumer prices. Several of the technical and financial benefits result from the large smelter baseload consumption and the interruptibility made available to the national System Operator that reduces the severity of load shedding.
Remarks: Approved / Not Approved/Comments
Adv. Melanchton Makobe PJ Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3304
Essack, Mr F to ask the Minister of Public Enterprises
Whether he has found that the National Logistics Crisis Committee that was appointed by the President of the Republic, Mr M C Ramaphosa, in April 2023, has (a) assisted Transnet to address operational challenges and (b) addressed the concerns of exporters; if not, in each case, why not; if so, what are the relevant details in each case?
Reply:
Yes,
According to the information received from Transnet
Question |
Response |
a) How NLCC assisted Transnet in addressing operational challenges. |
Transnet Operating Divisions (TFR, TNPA, and TPT) together with Business 4 South Africa (B4SA) technical experts, the private sector, and customers, have formulated Corridor Recovery Teams (CRT) to address Transnet operational challenges. The operational teams are progressing in implementing governance structures that will assist in the execution of the NLCC’s plans. This has assisted in the development of the Transnet turnaround strategy, which has identified deliverables for each corridor (Coal, Chrome and Magnetite, Iron Ore, and Manganese).
In addition to the rail and ports operations, work-stream 1, the following supporting work-streams have been established so far: Work-stream 5, which focuses on addressing challenges in the procurement system, including local content requirements as well as legislative changes/exemptions to improve efficiency in the freight and logistics procurement process.
The workstreams are at an early stage and it is anticipated that significant results in operations will be achieved in 2024. |
b) How NLCC has addressed the concerns of exporters |
The Corridor Recovery Teams will cover both importers and exporters, and their concerns will be addressed in the Transnet turnaround strategy. |
This is still work in progress and further detailed reports will be made public in the next few months.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3776
Terblanche, Mr OS to ask the Minister of Police
Whether his trip to the 2023 Rugby World Cup in Paris was funded with taxpayers’ money; if not, what is the position in this regard; if so, (a) from which budget line item was the money sourced and (b) what is the breakdown of the total costs in terms of (i) flights, (ii) accommodation, (iii) rugby match tickets and (iv) any other specified travel-related costs incidental to the trip?
Reply:
Find here: Reply
23 November 2023 - NW3340
Graham-Maré, Ms SJ to ask the Minister of Public Enterprises
(1) What are the (a) relevant details of the progress that has been made on the (i) establishment of a state-owned holding company to house strategic state-owned entities (SOEs) and (ii) recommendations to retain, consolidate and/or dispose of SOEs and (b) time frames in terms of the establishment and implementation of the recommendations; (2) whether the evidence-based criteria for the restructuring of SOEs have been published; if not, on what date will the criteria be published; if so, (3) whether he will furnish Ms S J Graham with the specified evidence-based criteria; if not, why not; if so, what are the relevant details? NW4460E
Reply:
(1)(i) The Department obtained Cabinet approval to publish the National State Enterprises Bill in the Government Gazette for public comments. The Bill was published for public comment on 15 September 2023 until 14 October 2023. The Bill incorporates Presidential SOE Council (PSEC)'s recommendation that South Africa adopts a centralized shareholder model to improve the management and oversight of South African State-Owned Enterprises (SOEs). This includes establishing a Holding Company (HoldCo) for strategic SOEs.
HoldCo will be established through the National State Enterprises Bill.
(ii) PSEC has reviewed and assessed 37 entities. Furthermore, the business and turnaround plans for 21 entities and 8 Water Boards were reviewed. PSEC has not yet finalised its work.
(b) PSEC is finalizing its report on recommendations of which SOEs to retain, consolidate and/or dispose.
2. PSEC has developed an evidence-based criteria for which SOEs to retain, consolidate and/or dispose.
3. The criteria will be made available when PSEC has finalised its work on which SOEs to retain, consolidate and/or dispose.
4. PSEC will present its report to the President as soon as it is completed. The President will determine when and how the report will be made public.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3797
Steenhuisen, Mr JH to ask the Minister of Justice and Correctional Services
Considering that despite the commitment of the President of the Republic, Mr M C Ramaphosa, that all instruments of the State would be used in the fight against corruption, the National Prosecuting Authority has been forced to go cap in hand to him and the Minister of Finance to ask for more money, what has he found to be the reasons that the criminal justice system is perennially underfunded?
Reply:
The Department of Justice and Constitutional Development receives its funding from National Treasury, through a budgetary appropriation process which get voted by Parliament. For the past three financial years (2021/2022, 2022/23 and 2023/24), the NPA received a budget allocation of R4.446 billion, R4.910 billion and R5.407 billion respectively. The above-mentioned allocation includes additional budget amounting to R200 million and R690 million which NPA received in the financial year 2022/23 and 2023/24 respectively, to fund for the Investigative Directorate, contracted specialist prosecution services to assist with complex corruption matters, amongst others. The reasons for inadequate funding for the criminal justice system can be attributed to the country’s limited fiscal resources.
23 November 2023 - NW3945
Krumbock, Mr GR to ask the Minister of Police
Whether (a) he, (b) the Deputy Minister and (c) any other official in his department attended the Rugby World Cup final in France in October 2023; if not; what is the position in this regard; if so, what (i) are the relevant details of each person in his department who attended the Rugby World Cup, (ii) is the total number of such persons and (iii) were the total costs of (aa) travel, (bb) accommodation and (cc) any other related costs that were incurred by his department as a result of the trip(s) ?
Reply:
Find here: Reply
23 November 2023 - NW3631
Essack, Mr F to ask the Minister of Public Enterprises
(1) Considering that the Judicial Commission of Inquiry into Allegations of State Capture, Corruption and Fraud in the Public Sector including Organs of State recommended the appointment of a standing and oversight committee that would host transparent appointment criteria and processes, including independent public nominations, for appointing boards and executives for stateowned enterprises (SOEs) in order to improve governance at SOEs and address the scourge of cadre deployment, what is the reason that the Government has failed to establish the committee in line with the recommendations of the Commission; (2) Whether the Government has any plans to establish such a committee to expedite the appointment of meritorious individuals in SOEs; if not, why not; if so, what are the relevant details?
Reply:
13 On 13 September 2023, Cabinet approved the publication of the National State Enterprises Bill in the Government Gazette for public comments. The Bill was published for public comments on 15 September 2023.
In response to the valuable feedback received from public comments, the Department is diligently engaged in the refinement process for the National State Enterprises Bill. The ongoing refinement efforts are specifically aimed at integrating the insightful public comments into the fabric of the legislation. Central to this endeavour is the Department's commitment to crafting a revised Bill that not only addresses the concerns raised during the public commentary period but also establishes a comprehensive and inclusive framework for the appointment of boards within State-Owned Enterprises (SOEs).
The envisaged revisions seek to go beyond a mere legal framework. The Department aspires to codify a board appointment process that embodies the principles of transparency, equity, and fairness. By emphasizing these core values, the Department aims to instil a robust and accountable mechanism that stands as a testament to the commitment to good governance and stakeholder inclusivity.
(2) The envisaged processes for appointing board members to SOEs are expected to be comprehensive, designed to uphold transparency, fairness, and meritocracy. This will necessitate a thorough evaluation of candidates based on qualifications, experience, and alignment with the strategic objectives of the relevant SOEs. The government remains steadfast in its commitment to ensuring that appointments adhere to established legislative frameworks, including the Public Finance Management Act 1 of 1999 (PFMA), Companies Act 71 of 2008, and other pertinent statutes governing SOEs.
The government maintains vigilance in refining and improving existing processes to address challenges and enhance efficiency. Continuous efforts are made to draw lessons from experiences, both domestic and international, adapting best practices in governance.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3017
Cachalia, Mr G K to ask the Minister of Public Enterprises
Whether, in light of the statement by the International Monetary Fund (IMF) at a recent Bloomberg event that private sector investment in the form of private-public partnerships is necessary for the Republic to break out of the negative trend in economic growth caused by poorly performing state-owned enterprises (SOEs) (details furnished), while the IMF research suggests that growth for 2023 is down to 0,3%, and that the Gross Domestic Product is down 3,2 points, which is directly attributable to loadshedding and rail transport problems, he intends to remain resolute in the face of opposition from all fronts and encourage public-private partnerships at all SOEs; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
Both the government and Transnet are promoting private sector participation and the introduction of private capital in various projects.
According to the information received from Transnet
Regarding recent statements by the International Monetary Fund (IMF), Transnet acknowledges that it has encountered several challenges that have led to a decline in the operational efficacy of the railways and adversely impacted economic growth. The organisation is implementing targeted interventions aimed at resolving the challenges, and as part of this process, aims to improve collaboration with the private sector. Transnet believes that private sector partnerships (PSPs) are critical to our future and will provide the organisation with access to the additional skills, human resources, and capital required to reposition it. Furthermore, the active engagement and participation of various Transnet stakeholders across the work streams of the multi-stakeholder National Logistics Crisis Committee (NLCC), which includes the private sector and industry experts, exemplifies the nascent improvement in collaboration.
Going forward, Transnet' strategy (Reinvention for Growth) identifies private sector collaboration as one of its key levers for enhancing immediate performance and positioning the organisation for medium-term growth. As an essential component of the strategy, the private sector partners will play a crucial role in enhancing Transnet's capacity to execute quality services, develop and/or expand infrastructure, and unlock growth in industries such as mining, manufacturing and agriculture that contribute to job creation and GDP growth.
The rail reform process and the introduction of private train operating companies (TOC) on the freight network are essential components of the improved collaboration between Transnet and the private sector. This liberalisation process will enable the private sector to invest in rolling stock and establish freight railroads, which will have a significant impact on the market structure as TFR will no longer be the sole provider of freight rail services and will face competition from the private sector. In April 2024, the process of integrating private TOC will be formally initiated by inviting interested parties to acquire available slot capacity on the network. In addition, the reform will result in the establishment of a separate rail infrastructure manager, Transnet Rail Infrastructure Manager (TRIM), to oversee the network's management and ensure the equitable allocation of capacity to prospective TOCs. The establishment of TRIM is progressing well, and there is an expectation that the new OD will be established by the end of October 2023.
While most PSPs are long-term initiatives with benefits expected in the next 3 to 5 years, significant progress has been made in the development of these initiatives.
The recent announcement of a partnership between Transnet Port Terminals (TPT) and International Container Terminal Services (ICTSI) demonstrates the organisation's dedication to implementing this crucial lever. Several other initiatives are already in the partner selection process (request for qualification or request for proposal stages), and these include the Container Corridor Operating Lease; the Transnet Engineering Rolling Stock Leasing Company (TE Lease Co); the Ngqura Manganese Export Terminal (NMET) technical solution for the appointment of an EPC turnkey service provider; and Boegoebaai Port and Rail Development.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3305
Cachalia, Mr G K to ask the Minister of Public Enterprises
Whether he has found that the management of the railways, ports and pipelines in the Republic by the unified corporate structure in Transnet, which acts as both infrastructure provider and retailer, is the best business practice; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
According to the information received from Transnet
There are some countries and regions where the management of the railways and logistics interfaces such as ports falls under one authority, this integrated approach can help improve the efficiency of transportation and logistics. One notable example is China, where state-owned companies like China Railway Corporation (CRC) oversee both railway and port operations. Other countries have varying degrees of integration between rail and port management, depending on their specific transportation and economic needs. These varying degrees of integration could be classified into several models, each with different levels of coordination and shared management, ranging from Full Integration models to Public-Private Partnerships models, or models based on geographical proximity (ports and rail situated closely) and models based on the country-specific regulatory frameworks. Another model is that of independent Operations, i.e. where railways, ports and pipelines remain entirely independent of each other with minimal coordination. While the latter may not optimize transportation efficiency, it could be the result of historical structures, regulatory hurdles, or a lack of incentives for integration.
Examples:
- Full Integration: China Railway Corporation (CRC) – high level of integration.
- PPP: United Kingdom (e.g., London Gateway Port involves a partnership between DP World and the UK government).
- Geographic Proximity: Netherlands
- Regulatory Framework: Singapore
- Independent Operations: Russia, has a vast geography (historical and logistical reasons for separation).
In terms of Rail
The separation of the infrastructure manager is currently taking place. This will ensure that equal treatment and access are provided to all operators. The objective of the rail reform white paper is to ensure that the infrastructure manager has no bias towards TFR. Transnet is in the process of setting up an Infrastructure Manager outside Transnet freight Rail which is in line with the rail reform process. Private sector operators will therefore be guaranteed unbiased access to the network.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
23 November 2023 - NW3617
Cachalia, Mr G K to ask the Minister of Public Enterprises
(1)Whether he will furnish Mr G K Y Cachalia with an update on the progress of the deal between Takatso Consortium and SA Airways (SAA) and the projected profit for the 2022-23 financial year, with reference to the R3 billion; if not, why not; if so, what are the relevant details; (2) Whether he has found that no further monies will be allocated by the National Treasury for SAA; if not, what is the position in this regard; if so, what are the relevant details; (3) Whether monies owed to Mango are being utilised in the expansion drive by the SAA; if not, what is the position in this regard; if so, what are the relevant details; (4) On what date will the audited annual financial statements of the SAA be available?
Reply:
1. The progress in the transaction between Takatso Consortium and SAA is as follows:
a) On 25 July 2023, the Competition Tribunal approved the 51% disposal of SAA Government Shares to Takatso with conditions of minority shareholders divesting from Takatso Aviation and SAA not to retrench within 2 years of approval.
B) The subsequent steps are;
- 1. Aviation Regulatory Process: Apply to relevant aviation regulators for licensing approvals;
- Repeal of the SAA Act, 2007: The process has started. The Department is in the process of seeking Cabinet approval for introducing bill in Parliament;
- Fulfilment or Waiver of Conditions Precedent: Prior to the transfer of shares, ensure all conditions precedent are either fulfilled or appropriately waived to maintain the legality and integrity of the transaction;
- Valuation of SAA: New valuation of SAA is being undertaken considering the lapse of time since the last valuation;
- Revision of Transaction Structure: Considering the above valuation exercise, Parties are reviewing the structure of the transaction;
- Transfer of Shares: Execute the legal transfer of shares from current shareholder to new strategic equity partner with all necessary documentation;
- Establishment of New Governance Structures: Set up new governance structures for effective management and decision-making under the Strategic Equity Partner (SEP). This may involve forming a new board of directors and executive leadership; and
- Implementation of Agreed-upon Strategies: Collaborate to develop and implement strategies for the national carrier's growth and development, focusing on areas such as operational efficiency, market expansion, and customer service improvements.
2. The allocation of funds to SAA, similar to other government funding needs has to go through a budgeting process based on Government priorities.
3. The funds of R85 million that was not transferred to Mango, are still with SAA until the Mango business rescue has been concluded. It is not being utilized by SAA for expansion purposes.
4. The audited annual financial statements for SAA for 2018/19 to 2021/22 financial years are currently going through the Board approval processes. They will be tabled in Parliament soon after the Annual General Meeting, scheduled in November 2023.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date:
22 November 2023 - NW3712
Sibiya, Ms DP to ask the Minister of Higher Education, Science and Innovation
Considering that funding requirements that align with community education and training colleges (CETs) have been one of the progressive factors concerning the higher education sector, what are the relevant details of the sustainable funding model that has been developed for CETs?
Reply:
In the 2022/23 financial year, the Department developed the sustainable funding model for Community Education and Training (CET) Colleges. The model was implemented with effect from the 2023/24 financial year. The intended outcome of the model is to equitably distribute available funding to Community Colleges taking into account a number of variables including a minimum allocation for basic college operations, enrolment numbers, programmes and qualifications mix, duration of programmes, etc. The model does not provide for any additional funding, it distributes the available budget equitably.
The model estimates that the CET college sector requires R876 million for annual operational activities (subsidy), and this amount excludes employee salary costs. This translates into a 76% funding gap when compared to the allocated subsidy of R211.641 million for the 2023/24 financial year.
22 November 2023 - NW3678
Ngcobo, Mr S to ask the Minister of Higher Education, Science and Innovation
What are the reasons that his department has been failing to meet the target for student enrollment at community education and training colleges since the 2019-20 financial year?
Reply:
The main reasons for low student enrollment at Community Education and Training (CET) Colleges are associated with lack of physical infrastructure including Information and Communication Technology, and inadequate funding. 95% of Community Learning Centres of the Community Colleges operate in Basic Education infrastructure which leaves a very low number of those that operate on their own site.
To resolve this challenge of inadequate infrastructure, the Department has started with the process of acquiring physical infrastructure for colleges. In addition to funding set aside for new buildings, discussions are underway with the Department of Public Works and Infrastructure to identify underutilised public buildings for the sole use of CET colleges.
The current funding for CET colleges is R2.8 billion, for which R2.6 billion caters for compensation of employees and R211.6 million for operations of colleges (subsidy). The CET sector is allocated 2% of the total PSET budget. The current allocation is thus unable to cater for the proposed needs of the CET sector.
22 November 2023 - NW3819
Buthelezi, Ms SA to ask the Minister of Cooperative Governance and Traditional Affairs
Whether any funds were allocated towards the assurance of readiness of municipalities in handling natural disasters in each province; if not, why not; if so, what is the (a) allocated budget and (b) actual expenditure; (2) what actual work has been done in 2023 to ensure that municipalities are able to handle natural disasters? NW5038E
Reply:
1. No. Preparedness measures are funded by organs of state from their own resources. The NDMC provide support and guidance to organs of state on preparedness measures. (a) Not applicable. (b) Not applicable
2. The actual work that has been done or being done in 2023 to ensure that municipalities are able to handle natural disasters include amongst others the following:
- Since the beginning of 2023, 8 district municipalities in priority disaster areas have been assessed on the implementation of their disaster management plans and strategies to prevent, prepare for and mitigate disaster risks in terms of the Disaster Management Act. By the end of 2023, a total of 12 district municipalities in priority disaster areas would have been assessed on the implementation of their disaster management plans and strategies to prevent, prepare for and mitigate disaster risks in terms of the Disaster Management Act.
- From an NDMC’s early warning perspective, support to local municipalities includes the preparation of quarterly seasonal outlooks (issued at the quarterly National Advisory Forum) that provide a forwarding looking prediction of hazards combined with future weather scenarios. This enables short- and medium-term planning to take place at local level. The issuing of monthly drought monitoring updates to provide 6,12 and 36 monthly drought spatial maps allows municipalities to manage the drought hazard with their local geographies.
- Support to organs of state on the development of response procedures aligned to the South African Weather Service Impact Based Early Warning Table (Level 1-10) This support takes the form of a series of national workshops are being conducted by the NDMC to develop response procedure and decision-making procedures aligned to the 10 levels of the Impact Based Early warning systems for severe weather.
- Enhancement of collaborative efforts with the South African Weather Service to incorporate other new products and data to improve the disaster management function. This enhancement takes the form of a renewed MoU with the SA Weather service that brings a series of new data and services to understand climate change indicators, better mapping of past incidents of severe weather and improving predictability of hazards based on historical analysis.
- The continuation of disseminating impact based early warnings weather warning and advisories that informs decision making, response activations and preparedness by local disaster management structure and relevant by stakeholders including communities.
End.
22 November 2023 - NW3820
Cebekhulu, Inkosi RN to ask the Minister of Agriculture, Land Reform and Rural Development
What are the relevant details pertaining to the total number of (a) applications received and (b) successful land claims since the establishment of the Commission on Restitution of Land Rights under her department?
Reply:
a) The Commission on Restitution of Land Rights received over 80 000 claims by the 31st December 1998.
b) A total of 83 067 land claims have been settled since inception until 30 June 2023. The higher number of settlement is due to the counting of rights lost per claim as opposed to the number of claim forms lodged.
END
22 November 2023 - NW3679
Ngcobo, Mr S to ask the Minister of Higher Education, Science and Innovation
What measures has his department taken to address the lack of adequate infrastructure for teaching and learning in community education and training colleges?
Reply:
The Department has started a process of building Community Education and Training (CET) Colleges infrastructure to address the challenges of infrastructure in the sector. One billion rand has been allocated to the Community Colleges for infrastructure over the 2023 MTEF period. The initial plan seeks to build Community Colleges and Community Learning Centres in nine (9) provinces: one in each province. The construction is currently in planning phase with consultants having started with the concept designs. The actual construction is targeted to commence in March 2024.
The Department is also working with Provincial Departments for Basic Education to identify properties that are underutilised so that they can be repurposed for Community Learning Centres.
Furthermore, the Department has developed Intergovernmental Protocols on the use of public school facilities of Provincial Education Departments by Community Learning Centres of the Community Colleges under the Department of Higher Education and Training. The Protocols are meant to manage the current relationship between schools and Centres.
22 November 2023 - NW3764
Montwedi, Mr Mk to ask the Minister of Agriculture, Land Reform and Rural Development
(1)Whether, with reference to her reply to question 1195 on 4 May 2023 relating to the settlement of the Lower Zingcuka Land Restitution claim in terms of which she committed that the land claim will be settled by the third quarter of the 2023-24 financial year, the claim has been settled yet; if not, what is the current status of the claim; (2) whether she still maintains that the land claim will be settled during the current financial year; if not, what is the position in this regard; if so, by what date does she envisage to settle the specified claims?
Reply:
1. The processing of the Lower Zingcuka land claim is underway as per the commitment of May 2023. The settlement memorandum was supported by the Departments Quality Control Committee on 12/10/2023 and currently being processed for consideration by the relevant delegated authority.
2. Yes, we remain confident that the claim will be settled during the third quarter of the current financial year.
22 November 2023 - NW3651
Smalle, Mr JF to ask the Minister of Cooperative Governance and Traditional Affairs
(1)What was the (a) water supply reliability for 2020 and (b) estimated water supply reliability for (i) 2030 and (ii) 2050 for each local municipality, measured against (aa) the population and (bb) megalitre on each day (ML/day); 2. what is the (a) current water treatment capacity and (b) water shortfall per ML/day?
Reply:
The information requested by honourable member is monitored in the national monitoring system as well as the national information system provided for by the National Water Act, 1998 (Act No. 36 of 1998) and the Water Services Act, 1997 (Act No. 108 of 1997) respectively. DWS is responsible for these national systems as mandated by both pieces of legislation highlighted in the background above.
It is therefore recommended that the honourable member redirect the question to Ministry of Water and Sanitation for the DWS to respond accordingly.
End.
22 November 2023 - NW3639
Hunsinger, Dr CH to ask the Minister of Transport
(1)With regard to safety at the sites of the Passenger Rail Agency of South Africa (PRASA) in the Western Cape, what total number of the (a) overhead bridges and (b) underground passenger tunnels on the PRASA rail network were (i) inspected and (ii) deemed unsafe in 2022; (2) what is the estimated cost of repairing all (a) overhead bridges and (b) underground passenger tunnels on the PRASA rail network that are currently in need of repair in order to be deemed safe?
Reply:
1. (a) In the Western Cape, PRASA has a total of 61 Overhead Bridges (excluding the Central Line, which is currently being recovered).
- 61 bridges were inspected in 2022,
- 6 bridges where recommended the rehabilitation due to their poor condition.
(b) In the Western Cape, PRASA has a total of 38 underground passenger tunnels.
(i) 38 underground passenger tunnels have been inspected,
(ii) 4 underground tunnels are not functional and deemed unsafe.
(2) The estimated cost of:
(a) rehabilitating 6 bridges is R59 million,
(b) repairing underground tunnels is R75,000 per tunnel and R300,000 for the four (4) underground tunnels that are currently non-functional. In the 2023/24 financial year, to date, PRASA has occurred costs of R500,000 in repairing underground tunnels. Vandalism of underground tunnels generally lasts about three to four months and then needs to be repaired again. Each month, there are two to three underground tunnels that PRASA has to repair due to repeated vandalism.
22 November 2023 - NW3666
King, Ms C to ask the Minister of Higher Education, Science and Innovation
Whether he has instituted an investigation and/or project management audit during the tenure of a certain person (details furnished) of the Services Sector Education and Training Authority; if not, why not, in each case; if so, what are the relevant details in each case?
Reply:
The Minister of Higher Education, Science and Innovation is empowered by the Skills Development Act (Act No.97 of 1998) (Act) to perform certain functions, such as Section 14(A) to issue a written instruction if :
(a) the SETA is not performing any of its functions or not complying with its service level agreement;
(b) the SETA is not managing its finances in accordance with this Act;
(c) the SETA’s membership is not representative of the constituencies contemplated in section 11; or
(d) the SETA has not prepared and implemented an employment equity plan as contemplated in section 20 of the Employment Equity Act, 1998 (Act No. 55 of 1998).
Another empowering provision is section 15 of the Act, to take over the administration of SETA after consultation with the National Skills Authority and the SETA in question, direct the Director-General to appoint an administrator to take over the administration of a SETA or to perform the functions of a SETA if :
(a) the SETA fails to perform its functions;
(b) there is mismanagement of its finances;
(c) its membership no longer substantially represents the composition contemplated in section 11;
(d) the SETA has failed to comply with its service level agreement, or (e) the SETA has failed to comply with an instruction issued by the Minister in terms of section 14A.
Since the appointment of the Accounting Authority in 2020, the Minister of Higher Education, Science, and Innovation has not invoked these provisions in respect of the Services Sector Education and Training Authority.
22 November 2023 - NW3734
Sonti, Ms NP to ask the Minister of Police
Whether a police station will be opened in Wonderkop, North West, in light of the high crime rate in Marikana; if not, why not; if so, (a) by what date will the police station open and (b) what are the details of the time frames that have been put in place in this regard?
Reply:
Find here: Reply
22 November 2023 - NW3711
Mkhatshwa, Ms NT to ask the Minister of Higher Education, Science and Innovation
What are the relevant details of the challenges impacting the University of South Africa?
Reply:
The challenges are explained in detail in two reports that have assessed the affairs of the University, namely the Report of the Ministerial Task Team (MTT) on the Strategic Review of the University of South Africa (2021) and the Report of the Independent Assessor (2022). Some of the key challenges are as follows:
- Failure by the University to make adequate provision for dramatic change in the profile of the student body, implementing enrolment targets which were unrealistic and, in some cases, even irresponsible, considering the lack of the institution’s teaching capacity.
- Failure to provide appropriate strategic guidance and direction to a modern Open Distance e-Learning (OdeL) institution in the 21st Century.
- Failure to address the weaknesses that have frustrated the implementation of its strategic priorities. The weaknesses include dysfunctional and outdated ICT infrastructure which compromised the health of the academic enterprise; collapsed basic assurance services and functions necessary to ensure effective governance; ineffective risk management and control processes; retention of a deeply-embedded culture of non-compliance and impunity; chronic management failures in many of the key support systems such as supply chain management, human resource management, compliance and finance and a gross neglect of consequence management.
- Failure to establish an enabling and ethical culture, and has allowed an all-pervasive culture of corruption, conflict, fear and intimidation to prevail.
- Dysfunctionality of the Office of the Registrar, particularly as it relates to student administration, leaving students frustrated. This is compounded exploitation of students by fraudulent tutors because of poor protection of student’s personal information.
- Lack of appreciation of good governance, as demonstrated by outdated statute, policies and adherence to governance instruments. For instance, the Management knowingly took irregular financial decisions that have had far-reaching consequences for the University, namely the selective salary adjustments to academic staff and some portion of the support staff, the laptop scheme, etc. These were condoned by the Council.
- For a long time, Council had reduced the delegation of authority (DoA) of management, and in doing so interfered in matters that ordinarily fell within the purview of Management.
22 November 2023 - NW3808
Buthelezi, Ms SA to ask the Minister of Cooperative Governance and Traditional Affairs
Whether her department has any measures in place to assess the preparedness of municipalities to handle natural disasters; if not, what is the position in this regard; if so, (a) what are the relevant details of the specified measures for each municipality in the Republic, (b) how often are assessments of the measures conducted, (c) when last were the assessments conducted in each municipality and (d) what has been the expenditure for each assessment exercise in each municipality during the past five financial years?
Reply:
Yes, the department has measures in place to assess disaster management plans in their entirety, and this process include the assessment of preparedness measures of municipalities to handle natural disasters.
a) The assessment measures (tools) include the guideline on the “Development and structure of a disaster management plan” that the NDMC developed and published in 2017 (Annexure A). Within this guideline, there is a “Disaster Management Plan Checklist” that is followed during assessments to verify if all aspects of a disaster management plan are addressed in the plan. These measures are uniform and standard measures used when disaster management plans of respective municipalities are assessed. There are no individual or specified measures for each municipality in the Republic, other than the once referred to.
b) Number of assessments determined in the APP Annual Targets are undertaken/conducted on a quarterly basis. These include continuous engagements with municipalities whose disaster management plans / preparedness measures are assessed to address gaps identified during the assessments.
c) The last assessments were undertaken during quarter 2, July – September 2023.
d) There is no expenditure incurred as the assessments are undertaken inhouse by the NDMC officials.
End.
22 November 2023 - NW3723
Marais, Ms P to ask the Minister of Police
What are the reasons that the Wesselsbron Police Station remain closed, as it was last open and functioning in 2020, resulting in residents having to walk 7,5 km to the next police station for assistance?
Reply:
Find here: Reply
22 November 2023 - NW3801
Zondo, Mr S S to ask the Minister of Higher Education, Science and Innovation
Whether his department has the relevant details of the total number of students who (a) registered and (b) graduated in (i) Criminal Justice and/or Law and (ii) Forensic Investigations in the (aa) 2016 and (bb) 2023 academic years; if not, what is the position in this regard; if so, (aaa) what total number of such graduates in each case have been hired by the Government in each province and (bbb) in what positions were they hired?
Reply:
The head count enrolment of students in academic years 2016–2022 is displayed in Table 1 below, while graduates for the same period are shown in Table 2. The data relates to students who are enrolled in or have graduated from programmes in criminal justice and related programmes.
The numbers for academic year 2022 in both tables are regarded as preliminary.
We are unable to provide information about the work status of the graduates at this moment, but may be able to do so once further tracer studies are conducted.
Table 1:
Field of Specialisation |
Criminal Justice and Corrections |
Year |
Total |
2016 |
13778 |
2017 |
15251 |
2018 |
15564 |
2019 |
17790 |
2020 |
23964 |
2021 |
23511 |
2022 |
29429 |
Table 2:
Field of Specialisation |
Criminal Justice and Corrections |
Year |
Total |
2016 |
2752 |
2017 |
2809 |
2018 |
2994 |
2019 |
2773 |
2020 |
4486 |
2021 |
4406 |
2022 |
4799 |
22 November 2023 - NW3713
Yabo, Mr BS to ask the Minister of Higher Education, Science and Innovation
What is the adoption rate of his department’s digital application that monitors and reports potholes on roads, which is also part of the research and development and innovation interventions of his department to accelerate road maintenance projects of the Government?
Reply:
The PotholeFix application (app) was developed as part of a contractual agreement between the CSIR and the Gauteng Provincial Government. This initiative is a component of a broader strategy to restore road network asset management system in the province, with a focus on optimising maintenance scheduling. Specifically, the app aims to streamline the reporting of incidents and their subsequent status updates. Collaboration between the provincial government and municipalities is crucial for addressing reported potholes promptly.
What makes the app unique is its alignment with the national road maintenance guidelines, providing first respondents with clear insights into the nature and severity of reported pothole. The app’s location-tracking feature ensures that reports are directed to the appropriate road authority. While the potential for nationwide implementation in partnership with other provinces exists, the app is currently operational exclusively in Gauteng. Its reception has been positive, with varying levels of adoption across municipalities. To date, the app has garnered over 12 000 downloads on Android and iOS platforms, contributing to the reporting of more than 9 000 potholes through this platform.
22 November 2023 - NW3935
Malatsi, Mr MS to ask the Minister of Cooperative Governance and Traditional Affairs
Whether (a) she, (b) the Deputy Ministers and (c) any other official in her department attended the Rugby World Cup final in France in October 2023; if not; what is the position in this regard; if so, what (i) are the relevant details of each person in her department who attended the Rugby World Cup, (ii) is the total number of such persons and (iii) were the total costs of (aa) travel, (bb) accommodation and (cc) any other related costs that were incurred by her department as a result of the trip(s)?
Reply:
According to the records of the department: Myself, the Deputy Ministers and any employee of the department did not attend Rugby World Cup in France in 2023, in official capacity.
Nothing prohibited officials to attend Rugby World final in France as it would have been done in their own expenses.
End.
22 November 2023 - NW3800
Zondo, Mr S S to ask the Minister of Higher Education, Science and Innovation
Whether his department has any records of audit outcomes of private institutions of higher learning in the Republic to assess their efficiency and/or compliance with the relevant legislations; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
The reporting by private higher education institutions (PHEIs) and the assessment thereof forms part of the monitoring of the higher education system by the Department of Higher Education and Training (“the Department”). Every year, the Directorate: Registration of Private Higher Education Institutions (“the Directorate”) requests PHEIs to submit annual reports to enable the Department to assess and monitor the level of compliance by PHEIs with respect to their obligations and responsibilities as defined in Chapter 6 of the Regulations for the Registration of Private Higher Education Institutions, 2016 (the Regulations) and Section 57 of the Higher Education Act, 1997 (Act No. 101 of 1997, as amended) (the Act). PHEIS are required to submit their annual reporting information by 30 April each year.
The annual report also includes student data and a ‘snapshot’ of programmes offered as well as student enrolments in the PHE sector. After assessing the annual reports, the Directorate complies a consolidated report titled “Annual Report on the Compliance of Private Higher Education Institutions with the Regulations” and presents this report to the sector and stakeholders in the Post School Education and Training (PSET) sector.
In cases where institutions are non-compliant, the Directorate enters the next stage of supporting the institution to become fully compliant by providing additional guidance and time. If, after exhausting all possibilities for rehabilitation, the institution fails to be complaint, then its registration is cancelled after due legal process is followed. The period and duration for rehabilitation can take anything from 3 to 6 years.
22 November 2023 - NW3435
Breedt, Ms T to ask the Minister of Agriculture, Land Reform and Rural Development
Whether the process of drafting the proposed new Animal Welfare Act (AWA), has been put out to public tender; if not, who is drafting the new AWA; if so, (a) what progress has been made with the specified tender, (b) at what stage is the drafting of the new AWA and (c) what timeline does she envisage for the completion of the AWA, including the (i) completion of the drafting, (ii) public participation hearings, (iii) request for submissions thereon and (iv) submission to Cabinet; (2) whether she will make a statement on the matter?
Reply:
1. No. The Department of Agriculture, Land Reform and Rural Development (DALRRD) has recently added additional internal capacity in the form of 3 state veterinarians, who are currently handling the animal welfare portfolio; DALRRD will therefore not proceed with tenders for the drafting of the Animal Welfare Bill. The first draft is expected to be completed by March 2024 and the Bill will follow the normal legislation-making process including processing through the relevant Directors General Cluster System; conducting a Socio-Economic Impact Assessment; constitutional certification by the Office of the Chief State Law Advisor; obtaining Cabinet approval to gazette for public comments etc. Thereafter, once Cabinet approval is obtained for the submission of the Bill to Parliament, the Bill will be introduced, and the parliamentary process will apply, including further public participation to be conducted in accordance with the Rules of Parliament.
2.No.
22 November 2023 - NW3879
Thembekwayo, Dr S to ask the Minister of Higher Education, Science and Innovation
In the wake of the stabbing of a female student from the Cape Peninsula University of Technology by a male student from the University of Cape Town, what (a) urgent steps have been taken to bring the perpetrator to account and (b) measures have been put in place to solve the issue of the lack of security in tertiary institutions?
Reply:
a) The perpetrator was apprehended until campus security took him away and he was arrested, meanwhile, the victim was rushed to hospital and had emergency surgery and is currently recovering. The accused appeared in court on attempted murder charges and remains behind bars as he awaits a bail application date.
b) University security heads were invited to workshops, wherein gaps in their security protocols were discussed and further insights shared with researchers, USAF, SAPS and CAMPROSA. It was agreed that a security blueprint will be developed for the universities. In addition, it was agreed that security policies to support staff, students and management must be developed and approved by the Councils of all the universities by the end of the financial year.