Questions and Replies

Reply:

1. Government has not signed any agreement for the construction of the Moloto Rail Corridor with any company or government which binds the Government to any financial commitment.

2. Please refer to the response in (1) above.

3. Please refer to the response in (1) above.

4. Government will comply with the provisions of Section 217 of the Constitution and will not enter into any agreement without first following a competitive public procurement process.

5. The Moloto Rail Corridor project has concluded a conceptual design as part of the 2014 Feasibility Study. The detailed design and construction of the Moloto Rail Corridor will only commence once funding for the project has been secured.

Reply:

1) (a) The process followed for all development applications are found in the Okhahlamba Planning by-law in Schedule 4 of the Okhahlamba Planning Bylaws, (Schedule 4 is attached).

(b) The approval of the application granted is in accordance with:

Spatial Planning and Land Use Management Act, in favour of the Cathkin Town Planning Scheme, the zoning of the said property allows for the development of a Petrol filling station, in line with the Municipal IDP and SDF, and it addresses the gap in development within this area.

2) Yes objections were received from the notice which was placed on the local newspapers but were not Town Planning - related or environmental planning- related and seemed rather personal.

Even though the objections were not Town Planning or environmental planning- related, the municipality did take some of the objections to consideration. They were addressed or included when the municipality drafted the conditions for the approval of the application.

The municipality had a meeting with the Cathkin Ratepayers representatives, 100m radius neighbour, Ezemvelo KZN wildlife, Department of Environmental Affairs, uThukela District Office and the uThukela District Municipality planning section. The purpose of the meeting was to explain to the concerned neighbours how the decision was made and where the process is currently.

The neighbour representative from Champagne Sport resort did not raise any issues at this meeting or did not raise issues objecting to the development.

The application for the Petrol Filling station is now waiting for the approval of the Department of Economic Development, Tourism and Environmental Affairs where an Environmental Impact Assessment is currently being processed.

Reply:

Yes, the City of Ekurhuleni (CoE) has repaid some of the loans since December 2010.

(a & b) The following loans have been fully paid at the respective maturity dates (See table 1 below):

• 1. December 2001- R150 million from INCA @ 12.25% (Annuity Loan)
  2. March 2002- R150 million from DBSA @ 13.5% (Annuity Loan)
  3. March 2003 – R291 million from DBSA @ 12.2% (Annuity loan)

The CoE follows a scheduled interest and capital repayment regime on its long-term liabilities. The outstanding balances are due to the fact that loans and bonds have not yet reached their redemption/maturity dates. Refer to table 1 below.

Table1: CoE liability profile

(c) Cumulative interest paid on the loans and bonds from the original date of attainment to 31 Dec 2017 is shown in table 2 see link below:

Table 2: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW47TABLE_2.pdf

Cumulative interest paid to date on CoE loans and bonds amounts to R3.5bn. The new bonds, EMM07 and EMM07P were taken in July 2017 and their first interest payments were due in January 2018.

(d) The last interest payment dates and amounts are shown in table 3 see link below:

Table 3: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW47TABLE_3.pdf

The reply to question 2018/47 is a follow-up to question 3455, which was published on 3 December 2010.

Reply:

The Honourable Member, Mr K J Mileham is kindly requested to direct the question to the Department of Health. Municipal Health Services is the responsibility of the Department of Health as the Municipal Health Services are regulated under Section 32 of the National Health Act, 2003 (Act 61 of 2003) as Municipal Health Services.

Reply:

The Honourable member Mrs E N Ntlangwini, should kindly direct the question to the Department of Energy, as they are the competent department to respond to the question.

Reply:

Housing projects are implemented by the Department of Human Settlements in the Municipalities in the Province. The Department of Human Settlements in the Mpumalanga Province was contacted and confirmed the information below as correct.

The Thaba Chweu Local Municipality was contacted to assist with the response to the question. The response is as follows: (Annexure A)

No.	Project Name	Financial	Total Units	Start Date	Status	Budget
	No Allocation	2014/15	n/a	n/a	n/a	n/a
	No Allocation	2015/16	n/a	n/a	n/a	n/a
	Chryselda	2016/17	200	01/11/2016	In progress	R20 600 000
	Mgugwana	2016/17	100	01/11/2016	Completed (08/12/2017)	R10 300 000
	Lwakhiti JV	2017/18	150	22/09/2017	In progress	R15 450 000
	Fenekwane	2017/18	100	22/09/2017	In progress	R10 900 000

As per the comments of the Deputy Minister to provide background/ explanatory notes to the matter, the following additional information was obtained.

Housing projects are implemented by the Department of Human Settlements in the Municipalities in the Province. The Department of Human Settlements in the Mpumalanga Province was contacted and confirmed the above information as correct. As implementers of the housing projects, the Department allocates the budget, appoints Service Providers and monitors them in collaboration with the affected Municipality. The Municipality’s responsibilities include the identification of beneficiaries.

2016/17 financial year includes the following:

• The Chryselda housing project experienced challenges as it is reported that about 24 houses were invaded. Municipality still engaging with the affected individuals to vacate the affected properties.
• Mgugwana Housing Project was completed but the units are not yet occupied as the programme to service the completed units is still ongoing.

Reply:

A response from Thaba Chweu Local Municipality is narrated here under:

Thaba Chweu Local Municipality doesn’t budget for operation and maintenance per ward, it instead budgets per services sector, such of roads and stormwater, and electricity and its network including street lights that cover all the wards. The three settlements of Lydenburg, Sabie and Graskop fall within wards 1, 2, 3, 7 and 10.

The following is the operation and maintenance budget for each service sector, according to the Municipality, for the financial years (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17.

(a) Budget

(i) and (ii) Roads and stormwater: The adjusted budget for the financial years 2014-15 was R 7,84 Million, 2015-16 was R 10,00 Million, and 2016-17 was R2,61 Million.

(iii) Eletricity: The adjusted budget for the financial years 2014-15 was R6,18 Million, 2015-16 was R8,87 Million, and 2016-17 was R10,83 Million.

(b) Expenditure

(aaa) and (bbb) Roads and stormwater: Reported expenditures for 2014-15 was R2,75 Million, 2015-16 was R2,41 Million, and 2016-17 was R4,37 Million.

(ccc) Electricity: Reported expenditures for 2014-15 was R1,32 Million, 2015-16 was R14,74 Million, and 2016-17 was R9,41 Million.

The budget and actual expenditure report as provided by Thaba Chweu Local Municipality is attached as Annexure A.

ANNEXURE A

DETAILED OPERATIONAL BUDGET AND EXPENDITURE FOR 2014/15, 2015/16 AND 2016/17 FINANCIAL YEARS

See the link: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW123_ANNEXURE_A.pdf

Reply:

(a) According to section 27(a) (i) of the Children’s Act, no. 38 of 2005,

An applicant who has to provide an ECD programme has to possess the National Certificate in ECD at National Qualification Framework (NQF) level 4 as a minimum requirement specified by South African Qualifications Authority.

(b) (i) NQF level 4 training is provided for 18 months.

(ii) 18 981

(c) There is currently no minimum salary level for practitioners. Each ECD centre remunerates its practitioners based on their available budget.

________________________

Approved by the Minister on

Date……………………….

Reply:

The Emakhazeni Local Municipality was contacted to assist with the response to the above. The response is as follows: (Annexure A)

No.	Project Name	Financial Year	Total Units	Start Date	Status	Budget
	Siyathathuka Ext. 6 & 8	2014/15	104	15/09/2014	Not Completed (53 units completed and 54 not completed)	R11 912 967
	Sakhelwe	2014/15	110	15/09/2014	Completed (30/12/2017)	R12 485 717
	No Allocation	2015/16	n/a	n/a	n/a	n/a
	Siyathuthuka Ext. 7	2016/17	240	26/04/2016	Not Completed (11 units completed)	R31 382 684
	No Allocation	2017/18	n/a	n/a	n/a	n/a

As per the comments of the Deputy Minister to provide background/ explanatory notes to the matter, the following additional information was obtained.

Housing projects are implemented by the Department of Human Settlements in the Municipalities in the Province. Consequently, the Department of Human Settlements in the Mpumalanga Province was contacted and confirmed the above information as correct. As implementers of the housing projects, the Department allocates the budget, appoints Service Providers and monitors them in collaboration with the affected Municipality. The Municipality’s responsibilities include identification of beneficiaries.

 

Additional project specific information includes the following:

• The Siyathuthuka Housing Project in extension 6 & 8 was reported to have experienced severe challenges that affected the smooth implementation thereof. The challenges include the invasion of the incomplete houses by the community and the now litigation between the Developer (Touris Garden) and the Department of Human Settlements.
• The Siyathuthuka Housing Project in extension 7 was also reported to have progressed very slow. As part of the intervention, the Department of Human Settlements has reduced to scope of work for the developer (Bongela Development Project) from 240 to 40 units. The remaining 200 units have now been allocated to another developer (T&Z Construction) to expedite the completion of the project.

Reply:

1. The following response is based on the information received from Free State, Gauteng, Limpopo, Mpumalanga and Northern Cape Provincial departments responsible for Cooperative Governance and Traditional Affairs. Eastern Cape, KwaZulu-Natal, North West and Western Cape Provincial departments responsible for local government did not meet the extended deadline for submission of responses.

2. The table below provides information received:

Province	Municipality	(1)(a) Number of qualified engineer appointed in (a) the works department	(b) Number of qualified engineer appointed in infrastructure development department	(c) Number of qualified engineer appointed in the water works department	(2)(a) Whether an engineer has been appointed in the specified divisions	(2)(b) Reasons for non-appointment of engineer
Free State	Tokologo LM	None	None	None	No	The municipality is very small and is unable able to afford services on full time basis
	Nketoana LM	None	5	None	None	None
	Dihlabeng	None	1	None	Yes	Technical Director oversees all Infrastructure units and is aided by the Water Works Manager.
	Moqhaka LM	None	1	None	Yes	Technical Director oversees all Infrastructure units and is aided by the Water Works Manager.
Gauteng	City of Tshwane MM	None	169	5	Yes	N/A
	Ekurhuleni MM	None	1	26	Yes	N/A
	City of Johannesburg MM	None	8	7	Yes	N/A
	Lesedi LM	None	12	4	Yes	N/A
	Merafong LM	None	None	None	No	Unable to attract qualified registered Engineers
	Midvaal LM	None	1	2	Yes	N/A
	Randfontein LM	None	None	None	No	The municipality is unable to attract qualified registered Engineers
	Westonaria LM	None	2	None	Yes	N/A
	Emfuleni LM	None	5	6	Yes	N/A
	Mogale City LM	None	None	None	No	Unable to attract qualified registered Engineers
Limpopo	Lepelle-Nkumpi LM	None	6	None	Yes	N/A
	Molemole LM	None	3	None	Yes	The municipality is not a water service authority
	Blouberg LM	None	3	None	Yes	The municipality is not a water service authority
	Vhembe DM	None	4	None	Yes	N/A
	Thulamela LM	None	16	None	Yes	The municipality is not a water service authority
	Musina LM	None	1	None	Yes	The municipality is not a water service authority
	Collins Chabane LM	None	1	None	Yes	The municipality is not a water service authority
	Makhado LM	None	1	1	Yes	The available Engineer is for both Works and Infrastructure departments.
	Greater Giyani LM	None	2	None	Yes	The municipality is not a water service authority
	Ba-Phalaborwa LM	None	9	None	Yes	N/A
	Greater Tzaneen LM	3	3	3	Yes	N/A
	Maruleng LM	None	3	None	Yes	The municipality is not a water service authority.
	Elias Motsoaledi LM	None	None	None	No	The municipality is unable to attract qualified engineers due to financial constraints.
	Ephraim Mogale LM	None	None	None	No	Grading system which determines the salary scale makes it difficult to appoint Engineers.
	Waterberg DM	None	1	None	Yes	The municipality is not a water service authority
	Thabazimbi LM	None	1	1	Yes	N/A
	Lephalale LM	None	None	None	No	Due to affordability and the organogram does not cater for such posts.
	Bela-bela LM	1	3	1	Yes	N/A
	Modimolle-Mookgophong LM	4	7	4	Yes	N/A
	Mogalakwena LM	None	13	None	Yes	It is one of the scarce skill.
Northern Cape	Sol Plaatjie LM	1	1	None	Yes	Lack of funds to appoint engineers
	John Taolo Gaetsewe DM	None	3	None	Yes	N/A
	Pixley Ka Seme DM	None	2	6	Yes	N/A
Mpumalanga	Gert Sibande DM	None	1	None	None	No information was provided
	Chief Albert Luthuli LM	None	1	None	None	No information was provided e
	Msukaligwa LM	None	1	None	None	No information was provided
	Lekwa LM	None	1	None	None	No information was provided
	Mkhondo LM	None	1	None	None	No information was provided
	Dipaleseng LM	None	1	None	None	No information was provided
	Dr Pixley ka Isaka Seme LM	None	1	None	None	No information was provided
	Govan Mbeki LM	None	1	None	None	No information was provided
	Nkangala DM	None	1	None	None	No information was provided
	Victor Khanye LM	None	1	None	None	No information was provided
	Emalahleni LM	None	1	None	None	No information was provided
	Steve Tshwete LM	None	1	None	None	No information was provided
	Emakhazeni LM	None	1	None	None	No information was provided
	Thembisile LM	None	1	None	None	No information was provided
	Dr JS Moroka LM	None	1	None	None	No information was provided
	Ehlanzeni DM	None	1	None	None	No information was provided
	Thaba Chweu LM	None	1	None	None	No information was provided
	Mbombela LM	None	1	None	None	No information was provided
	Nkomazi LM	None	1	None	None	No information was provided
	Bushbuckridge LM	None	1	None	None	No information was provided

3. Whether he will make a statement on the matter?

As part of the Department’s support intervention to municipalities, especially the 87 distressed municipalities, the Municipal Information Support Agent will deploy engineers and other technical officials to assist municipalities in managing their infrastructure projects.

A Parliamentary question was received regarding the vacancies in the works department, infrastructure development and the water works department. The Honourable member wants to know the number of municipalities a qualified engineer has been appointed in the works department, infrastructure development and the water works department.

In the preliminary response, the Honourable Member was informed that provinces did not meet the deadline for submission of responses and that the information will be provided as soon as it has been received.

The Ministry received a follow-up from the Honourable member regarding the outstanding information.

The response above is based on the information received from Free State, Gauteng, Limpopo, Mpumalanga and Northern Cape Provincial departments responsible for local government. Eastern Cape, KwaZulu-Natal, North West and Western Cape Provincial departments responsible for local government did not meet the extended deadline for submission of responses.

Reply:

Yes, with reference to the reply to question 1541 on 4 June 2018, the six individuals referred to are listed on the Child Protection Register as part of the 1 188 stated in the reply to question 884 on 10 April 2018. The Department has not received information from courts on individuals who have been found unfit to work with children as a result of a disciplinary hearing.

________________________

Approved by the Minister on

Date……………………….

Reply:

The Honourable Member, Mr K J Mileham, is kindly requested to direct the question to the Department of Health. Municipal Health Services is the responsibility of the Department of Health as the Municipal Health Services are regulated under Section 32 of the National Health Act, 2003 (Act 61 of 2003) as Municipal Health Services.

Reply:

(a) and (b) Municipalities invested funds with VBS Mutual Bank

In terms of the MFMA a municipality must establish an appropriate and effective cash management and investment policy in accordance with any framework that may be prescribed by the Minister, acting with the concurrence of the cabinet member responsible for local government.

Section 6 of the Municipal Investment Regulation, state that a municipality or municipal entity may invest funds only in any of the following investment types: (c) deposits with banks registered in terms of the Banks Act, 1990 (Act No 94 of 1990).

Municipalities are allowed to, amongst others, to deposit with banks registered in terms of the Banks Act and the investment with mutual banks is not permitted in terms of the Municipal Investment Regulation.

The table link below depict the list of Municipalities that invested with VBS mutual bank.

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW928_Table.pdf

Elias Motsoaledi Local Municipality confirmed that the capital investment of R20 million plus interest was withdrawn from the VBS in February 2018. However, through internal reconciliation, the municipality identified that there is interest of R48 246.51 that is due and it is not yet paid.

(2)(a) Polokwane, Elias Motsoaledi, Makhuduthamaga and Dr JS Moroka Local Municipalities managed to withdraw their investments (capital plus interest) of R81million, R20million, R31 million and R10 million respectively.

The investments of the 14 municipalities and the interest portion of Elias Motsoaledi Municipality reflected in the table above were not recovered/withdrawn before VBS was placed under curatorship. The preliminary report back from the South African Reserve Bank (SARB) on the curatorship process revealed that the available equity cannot cover the deposits. The stakeholders (National Treasury and Cogta) were advised to work with the assumption that it is highly unlikely that the municipal deposits will be recovered. Where possible they could receive about 10% of their deposits once the process is concluded in about 5 to 7 years’ time.

(2)(b) The municipalities as well as the three affected provinces have instituted investigations which will inform the disciplinary actions as well as criminal charges to be instituted against responsible official and/or political office bearer responsible for placement of funds with VBS Mutual Bank. Furthermore, the SARB has also instituted a forensic investigation in to the VBS Mutual Bank matter, a preliminary investigation was conducted and the report will be handed over to the hawks and made public once it has been concluded.

In terms of the MFMA a municipality must establish an appropriate and effective cash management and investment policy in accordance with any framework that may be prescribed by the Minister, acting with the concurrence of the cabinet member responsible for local government.

Section 6 of the Municipal Investment Regulation state that a municipality or municipal entity may invest funds only in any of the following investment types: (c) deposits with banks registered in terms of the Banks Act, 1990 (Act No 94 of 1990).

Municipalities are allowed to, amongst others, to deposit with banks registered in terms of the Banks Act and the investment with mutual banks is not permitted in terms of the Municipal Investment Regulation.

PROGRESS ON CURATORSHIP

• SARB instituted a forensic investigation in to the VBS Mutual Bank matter;
• Preliminary investigation was conducted will be handed over to the hawks or made public;
• The investigation revealed that +/- R20 million was paid in commission for soliciting deposit to VBS Mutual Bank and that false deposits were made by related parties to VBS Mutual Bank, however, deposits by municipality appear to be real.
• The availability equity cannot cover the deposits;
• The exercise revealed that the situation at VBS Mutual Bank is worse than when the curatorship commenced;
• Currently withdrawal limits of the amount deposited have been implemented; the limit for individuals is R1000 and Burial Societies’ limit is R7000;
• The stakeholders (National Treasury and Cogta) were advised to work with the assumption that it is highly unlikely that the municipal deposits will be recovered. Where possible they could receive 10% of their deposits;
• The curator withdrew the Statements of Account / Financial Statements because they are not a true reflection of the financial status of VBS Mutual Bank;
• The curator will redo the Statements of Account/Financial Statement and the statements are expected to be finalized within three months;
• The Internal Auditor for VBS Mutual Bank was PWC;
• The external Auditors were KPMG;

Reply:

The response below was provided by the municipality.

1. One forensic investigation was completed in 2017-18 financial year. The Municipal Council approved the appointment of an independent audit firm to conduct the forensic investigation as per Municipal Public Accounts Committee (MPAC) recommendation in line with the recommendations by the Auditor General of South Africa (AGSA).

(i) (aa)The forensic investigation was instituted to investigate allegations of gross negligent, misconduct and fraud.

(bb)The findings of the forensic investigation highlighted correction measures in the following areas:

• Disposal of Land
• Allocation of curo stalls in Graskop
• Revenue collection
• Supply chain management practices
• Legal services fees
• Back payments to section managers
• Housing and human settlements
• Human resources practices
• Municipal infrastructure grants projects
• Unauthorised, irregular, Fruitless and Wasteful Expenditure 
• Completeness and reliability of the Asset Register

(ii)The forensic investigation report was tabled before Council on 28 February 2018.

(iii) The Council approved that the Accounting officer must execute the implementation plan based on the recommendations for each finding.

2. There is no forensic investigation currently underway at the municipality.

3. I will request the municipality to submit a copy of the forensic report and the progress report on the implementation of the recommendations emanating from the forensic report to the Department for assessment. Based on the outcome of the assessment, I will then take the necessary action to ensure that the matter is finalised.

Reply:

It is important to note that INDLELA is the only public trade test centre accounting for 25% of the national trade tests conducted across all economic sectors related to artisan training. The INDLELA records on the number of candidates assessed and found to be competent in each trade registered for in the 2015/16, 2016/17 and 2017/18 financial years are as follows:

Trade	2015/16	2016/17	2017/18
	Assessed	Competent	Assessed	Competent	Assessed	Competent
Aircraft Maintenance Mechanic	21	19	52	41	37	0
Aircraft Structures Worker	0	0	15	11	0	0
Armature Winder	19	19	11	11	14	0
Automotive Motor Mechanic	200	95	129	71	161	87
Avionics Mechanician	0	0	4	4	0	0
Blacksmith	0	0	1	1	12	0
Boiler maker	610	305	413	356	556	416
Bricklayer	169	22	107	35	172	61
Carpenter	168	74	135	90	181	118
Carpenter and Joiner	0	0	0	0	2	0
Diesel Fitter	1	0			0	0
Diesel Mechanic	465	159	355	139	535	142
Electrician	1517	996	1175	886	2015	1504
Electrical Equipment Mechanic	1	0	0	0	0	0
Electronic Equipment Mechanician	3	3	11	9	50	36
Fitter and Turner	83	50	45	23	207	43
Gunsmith	4	2	0	0	0	0
Heavy Equipment Mechanic	3	0	63	32	31	0
Instrument Mechanician	26	7	18	15	21	16
Joiner	0	0	0	0	1	1
Mechanical Fitter	806	301	360	298	572	394
Metal Machinist	49	37	19	15	32	13
Millwright	58	19	39	34	95	69
Painter	121	27	101	54	158	74
Panelbeater	13	13	17	10	19	0
Plasterer	7	4	5	1	2	2
Plumber	711	503	639	594	1035	631
Radiotrician	19	8	13	8	5	12
Refrigeration Mechanic	52	22			3	7
Rigger	195	52	164	105	320	128
Sheet Metal Worker	0	1	1	1	0	0
Structural Plater	0	0	0	0	21	0
Toolmaker	26	16			68	0
Tractor Mechanic	1	0	0	0	0	0
Transportation Electrician	7	1	62	33	127	70
Vehicle Body Builder	1	1	2	2	7	0
Vehicle Painter	3	1	21	14	24	1
Welder	387	253	380	300	393	317
TOTAL	5746	3010	4357	3193	6876	4142

There are 341 accredited trade test centres across the country delivering various historical/legacy trades in terms of the repealed Manpower Training Act and the Skills Development Act. These trades derive their theoretical alignment from the NATED 191
(N2 – N6) engineering programmes, National Certificate (Vocational) (Levels 3 – 4) engineering programmes, and Sector Education and Training Authorities (SETA) based Competence Based Modularised (Level 4) programmes. The list of accredited trade test centres is attached as Annexure A.

INDLELA uses a different template, as compared to the requested information. Therefore, the information regarding the number of apprentices in each trade at each of the 341 centres would require more time to consolidate. The SETA aggregated information is provided in the table below.

Total registered learners per sector

Artisan Learners Registered
SETA	Sector	2015/16	2016/17	2017/18
Chemical Industries Education and Training Authority	Chemicals	3372	4263	3 423
Construction Education And Training Authority	Construction	1 737	2024	8 748
Food And Beverages Manufacturing Industry Sector Education and Authority	Food Processing	45	178	168
Local Government Sector Education and Training Authority	Local Government	1 020	888	647
Mining Qualifications Authority	Mining and Minerals	1 848	1978	1 952
Manufacturing Engineering And Related Services Sector Education and Training Authority	Manufacturing and Engineering	8 130	8038	6 863
Safety and Security Sector Education and Training Authority	Safety and Security	467	401	77
Agriculture Sector Education and Training Authority	Agriculture	347	227	193
Public Service Sector Education and Training Authority	National and Provincial Government	33	34	20
Services Sector Education and Training Authority	Services Sector	1 127	1416	1 470
Transport Education and Training Authority	Transport	1 778	1314	1 004
Fibre Processing and Manufacturing Sector Education and Training Authority	Fibre Processing	459	419	295
Culture, Arts, Tourism, Hospitality and Sport Education and Training Authority	Tourism and Hospitality	514	683	639
Wholesale and Retail Sector Education and Training Authority	Wholesale and Retail	532	269	0
Health and Welfare Sector Education and Training Authority	Health and welfare	119	87	76
Totals registered	21 528	22 219	25 575

Total Competent learners per sector

Artisan Learners Competent
SETA	Sector	2015-2016	2016-2017	2017-2018
Chemical Industries Education and Training Authority	Chemicals	743	936	1110
Construction Education and Training Authority	Construction	504	1350	2225
Energy and Water Sector Education and Training Authority	Energy	470	697	684
Food And Beverages Manufacturing Industry Sector Education and Authority	Food Processing	0	13	63
Local Government Sector Education and Training Authority	Local Government	87	233	543
Mining Qualifications Authority	Mining and Minerals	1382	1807	1932
Manufacturing Engineering and Related Services Sector Education And Training Authority	Manufacturing and Engineering	8352	9661	8443
Safety And Security Sector Education and Training Authority	Safety and Security	0	227	187
Agriculture Sector Education and Training Authority	Agriculture	154	228	208
Public Service Sector Education and Training Authority	National and Provincial Government	30	15	42
Services Sector Education and Training Authority	Services Sector	550	1247	1503
Transport Education and Training Authority	Transport	714	1359	1168
Fibre Processing and Manufacturing Sector Education and Training Authority	Fibre Processing	101	124	141
Culture, Arts, Tourism, Hospitality and Sport Education and Training Authority	Tourism and Hospitality	0	0	364
Wholesale and Retail Sector Education and Training Authority	Wholesale and Retail	39	3	5
Health and Welfare Sector Education and Training Authority	Health and welfare	36	74	99
Total competent	13 162	17 974	18 717

Reply:

DEPARTMENT OF SOCIAL DEVELOPMENT:

1(a)(i) There was one case of alleged sexual harassment reported in 2016/ 2017 financial year.

1(b) Allegations were levelled against an SMS member making remarks against an official’s dress code.

2 Investigations were conducted by an internal and external investigators who both gave reports to the effect that the allegations were unsubstantiated.

NATIONAL DEVELOPMENT AGENCY:

Both 1 and 2 are not applicable

SOUTH AFRICAN SOCIAL SECURITY AGENCY:

1. (aa) 2016 - There was one (1) case reported within SASSA. It was alleged that an official hugged, kissed and touched the buttocks of a cleaner without her consent.

(bb) 2017- There was one (1) case reported within SASSA. An official allegedly placed his hand on an official’s private part without her consent and further made comments with sexual overtones about the official’s body and hairstyle.

2. 2016 - The incident was investigated by a team of two investigating officers who discovered inconsistencies in the statement of the complainant. No wrong-doing was established against the alleged perpetrator.

2017 - The incident was investigated. The outcome of the investigation resulted in the perpetrator being charged and found guilty on the above stated charges.

________________________

Approved by the Minister on

Date……………………….

Reply:

Background of Amahlathi LM

The Amahlathi local municipality is a Category B municipality situated in the Amathole District in the Eastern Cape. It is bordered by the Chris Hani District to the north, Buffalo City Metropolitan municipality to the south, Mnquma and Great Kei to the east and Raymond Mhlaba to the west. Amahlathi municipality is an administrative area and it one of the six municipalities in the Amathole District. Amahlathi is an isiXhosa name that means “a place where many trees are grouped together to form a forest. It covers 4 505km² of land. The names of Cities and Towns surrounding the municipality are: Cathcart, Kei Road, Keiskammahoek and Stutterheim. The economic sectors active in the municipality are, namely: Community services (37%), finance (27%), manufacturing (18%), trade (10%), agriculture (4%), construction (2%), and transport (2%).

Political Management

African National Congress	Democratic Alliance	Economic Freedom Fighters
24 seats	3 seats	3 seats

The majority party is the African National Congress.

(a) The Ministry of Cooperative Governance and Traditional Affairs visited the area of Keiskammahoek twice during 2018, and facilitated a coherent response to community concerns. The leadership of SANCO and the community committed themselves to work with the Provincial Government and an inclusive task team has been established, which is meant to monitor the implementation of the support plan by the Province and National Government.

It was discovered that the source of public unrest was as a result of the lack of feedback meetings between the municipality and the community including the sector department work planned for the community. It’s regrettable that a life was lost during the protests and the matter is being investigated by the Independent Police Investigative Directorate.

(b) During the meeting with the community of Keiskammahoek delivered a petition that outlines their concerns regarding the services, namely; status of roads, hospital and housing projects. A follow-up feedback meeting with the community happened on the 13 May 2018, whereby all the provincial sector departments expected to address the pace of service delivery were present at the meeting to engage the community. As a result of the Minister’s intervention in the community of Keiskammahoek, a provincial Technical Task Team, led by the Head of Department of CoGTA in the Eastern Cape, was established to facilitate responses and the MEC is the overall political coordinator of the feedback given his responsibilities in the Provincial Executive Council.

The Petition Response Plan Document has been completed and the community representatives were engaged about the contents of the document for further improvement on the responses. Provincial Government is already dealing with some service delivery challenges in consultation with community representatives.

Reply:

1. (a) (i) The total number of incidents of racism that were reported to the Human Resource offices of the Department are as follows:

(aa) 2016 - one incident and two allegations; and

(bb) 2017 - one incident.

(ii) In 2016, one incident of racism was reported to the Human Resource offices of the Services Sector Education and Training Authority.

(b) In 2016, the National Education, Health and Allied Workers Union alleged that there were practices of racism and discrimination within the National Examinations and Assessment Chief Directorate of the Department.

In 2016, an incident involving an official who sent a text message containing racist remarks to a colleague was reported at the Western Technical and Vocation Education and Training (TVET) College.

In 2016, an official allegedly used racist remarks to students at the Mthashana TVET College.

In 2017, an official allegedly sent a letter to the Council of the Ikhala TVET College containing racist remarks.

A subordinate within the Human Resource unit of the Services Sector Education and Training Authority made an allegation of racism against a manager.

2. In response to the allegations, the Department in 2017 conducted diversity management workshops. It also recommended that the allegations of racism and discrimination within the National Examination and Assessment Chief Directorate be referred to the Human Rights Commission for an independent investigation.

The incident involving an official who sent a text message allegedly containing racist remarks to a colleague was reported and investigated by the Western TVET College. The investigation was finalised, and the decision to institute a disciplinary hearing was taken wherein the official was found guilty, and the Chairperson issued a sanction of dismissal on 30 May 2016. The official filed a notice to appeal, which was dismissed by the Minister of Higher Education and Training on the advice of the Appeal Committee on 27 October 2016. The official thereafter lodged a dispute with the Education Labour Relations Council (ELRC) for unfair dismissal. The ELRC confirmed the dismissal on 26 April 2017.

The matter involving an official who allegedly used racist remarks toward students in 2016 at Mthashana TVET College, has been investigated and finalised. A decision to institute a disciplinary hearing wherein the official was found guilty, and the Chairperson issued a sanction of dismissal on 18 July 2016. The official filed a notice to appeal, which on review by the Minister of Higher Education and Training, and on the advice of the Appeal Committee, the sanction of dismissal was replaced with a final written warning on 27 October 2016.

The Ikhala TVET College instituted a disciplinary hearing without conducting an investigation. The disciplinary hearing commenced on 26 July 2017, the matter was finalised on 28 February 2018 wherein the official was found guilty, and the Chairperson issued a sanction of dismissal. The official has filed a notice to appeal on 07 March 2018. The outcome of the appeal is pending.

In relation to the Services Sector Education and Training Authority, the matter was investigated, and it was found that the issue of racism could not be substantiated.

Reply:

(a) The Department has advised me that it has contracts with twenty two (22) companies and our entity, the African Renaissance Fund, none.

(b) I wish to encourage the Honourable Member to refer this matter to the Portfolio Committee on International Relations and Cooperation in order obtain the details we are not authorised to give in replies to parliamentary questions.

The Honourable Member would recall that there is an established practise applicable to parliamentary questions contained in the document titled, “Guide to Parliamentary Questions in the National Assembly. The document referred to prohibits Members of Parliament, including the Executive, from divulging names of persons, bodies when asking or responding to parliamentary questions. It specifically states the following:

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

Reply:

a) (i)

The total number of State-paid teachers employed per province as per the PERSAL record of January 2018 is given in a table below. The Department can make available a database of the number of teachers in each school and location of such schools. This information will be made available on a CD due to the volume of information.

Province	Grand Total
EASTERN CAPE	52 468
FREE STATE	22 897
GAUTENG	68 264
KWAZULU-NATAL	95 226
LIMPOPO PROVINCE	51 886
MPUMALANGA	33 040
NORTH WEST	25 946
NORTHERN CAPE	10 149
WESTERN CAPE	31 411
Grand Total	391 287

Source: PERSAL, January 2018

a) (ii)

Table 1 below indicates the number of learners in ordinary and special schools, by province and district. A detailed list of schools is attached as Annexure A. Please note that the 2018 data is not yet available at a national level, as provinces are still uploading their data into Learner Unit Record Tracking System (LURITS). 2018 data will be available after 30 June 2018.

b) (i) (ii)

The response is attached in a detailed list of schools as Annexure A on Excel spreadsheet.

Reply:

a) (i) & (ii) and (b) (i)(aa) & (bb), (ii), (iii), (iv), (v), (vi) & (vii) is as per the attached spread sheet.

Replacement of Inappropriate Structures

With regard to the Inappropriate Structures, a total number of 367 schools are being implemented under the ASIDI Programme; 202 projects have been completed since inception, 175 projects are at various stages of completion.

Sanitation: 741 projects have been identified, 585 projects have been allocated to IAs. 470 schools have been provided with sanitation. Due to scope changes, 586 projects are different stages of implementation.

Water: 1120 projects identified, 959 allocated to IAs; 685 schools have been provided with water. Due to scope changes, 539 projects are in different stages of implementation.

Electricity: 916 projects identified, 372 of the 535 allocated to IAs have been provided with electricity. Due to scope changes only 372 projects have been implemented and the others were addressed through the provincial programmes.

Reply:

(a), (b) and (c)

As part of the monitoring of vacancies at schools in Provincial Education Departments (PEDs), the National Department of Basic Education requests and obtains aggregated reports on the number of vacancies on a quarterly basis. The Honourable Member is requested to direct the request on the detailed information on vacancies per school to the PEDs as such data are in their possession.

The number of posts and vacancies for the PEDs that have reported as at the end of March 2018 is shown below.

Province	Number of Posts	Number of Vacancies
Eastern Cape	50 296	4 742
Free State	20 808	337
Gauteng	58 754	312
KwaZulu-Natal	90 057	Report outstanding
Limpopo	48 856	3 082
Mpumalanga	34 777	250
Northern Cape	10 651	105
North West	28 744	551
Western Cape	32 147	480
Total	375 091	9 859

Source: PED Quarterly Reports

Reply:

(a),(b) The Department of Basic Education does not collect or collate this information. The Honourable Member is requested to direct the question to the provinces as such data are in their possession.

Reply:

1. (a) & (b) (i) & (ii).

Find attached Annexure for the number of schools built since 2014/15 Financial Year and their full details, including their language of instruction.

2. The Gauteng Department of Education has a backlog in relation to the supply of new and replacement schools. This is perpetuated by the constant influx of learners into the province. A number of factors have had adverse impact on delivery of schools. These include but are not limited to: Budgetary constraints, under-performance by Contractors, Community disruptions and inclement weather.

3. The planned number of schools is not adequate to address overcrowding and the severe shortage of schools in the province. In an attempt to find an alternative solution, the Department is working with the Gauteng Infrastructure Fund Agency (GIFA) to explore alternative funding methods that will expedite the delivery of schools in the province.

4. The requested information has been provided.

Reply:

(a),(b) The Department of Basic Education does not collect or collate this information. The Honourable Member is requested to direct the question to the provinces as such data are in their possession.

Reply:

1. All SMS members submitted their Financial Disclosure forms

(a) Not applicable

(b) Not applicable

(c) (i) Not applicable

     (ii) Not applicable

2. Not applicable

3. (a) Not applicable

(b) Not applicable

(4) Not applicable

Reply:

a) and (b)

The Table below shows the average teacher to pupil ratio per province. The full list of all primary and secondary schools indicating teacher to pupil ratio per school can be provided on a CD due to the volume of information.

Province	Average of LER Primary	Average of LER Secondary
Eastern Cape	37.9	31.3
Free State	36.6	25.7
Gauteng	37.5	26.7
Kwazulu-Natal	32.6	27.0
Limpopo Province	35.0	26.2
Mpumalanga	34.9	26.5
North West	32.2	26.2
Northern Cape	32.3	25.3
Western Cape	38.4	33.2
National Average	35.2	27.7

Source: School Realities and PERSAL, March 2018

Reply:

a) According to National Education Infrastructure Management System (NEIMS) as at March 2018, below are the figures:

PROVINCE	NO COMPUTER LABS	INTERNET CONNECTIVITY
	PRIMARY SCHOOLS	HIGH SCHOOLS	PRIMARY SCHOOLS	HIGH SCHOOLS
Eastern Cape	4 049	685	2456	1 322
Free State	388	144	306	171
Gauteng	235	154	280	107
KwaZulu-Natal	2 950	935	2 342	1 964
Limpopo	2 138	1 119	2 546	838
Mpumalanga	735	291	852	679
North West	644	161	281	275
Northern Cape	216	31	0	0
Western Cape	503	70	250	13
Total	11 858	3 590	9 313	5 369

b) An estimated amount of R 16 billion is required to provide computer labs with connectivity.

*Note 1: The cost of physical infrastructure to erect a building/ space for a lab needs to be surveyed by a quantity surveyor per site. However, it should also be noted that due to technological advancements, it is no longer necessary to provide a computer laboratory to all schools. Further, the provision of mobile computer facilities has reduced the need for these.

*Note 2: The cost of infrastructure for connectivity requires an individual assessment for fibre, wireless, satellite or others depending on location and other factors.

Reply:

Education is a concurrent function, Chapter 3 section 12 of the South African schools Act stipulates that provinces must provide for schools and the education of learners. The information requested above must be directed to the respective provincial legislatures given that provinces are responsible for the provision of internet connectivity for schools.

Reply:

Education is a concurrent function, Chapter 3 section 12 of the South African schools Act stipulates that provinces must provide for schools and the education of learners. The information requested above must be directed to the respective provincial legislatures given that provinces are responsible for the provision of computers for learners.

Reply:

(a),(b) The Department of Basic Education does not collect or collate this information. The Honourable Member is requested to direct the question to the provinces as such data are in their possession.

Reply:

(1)

On 7 June 2018 Eskom launched the weekly system status report. This report, which is hosted on Eskom’s website, gives a weekly view of energy sent out, peak demand, performance of generating units in terms of the energy availability factor (EAF) and an outlook of three months ahead. Eskom’s media statement is attached.

(2)

The current level of coal supplied to the specified power stations is provided in the Table 1 below.

Table 1: Coal supply for April 2018

Power Station	April 2018 coal supply (kilo tonnes)
Arnot	517
Camden	449
Hendrina	358
Komati	184
Kriel	489
Majuba	1086
Tutuka	576

(3)

Currently Eskom does not have sufficient coal supply for the remainder of the year.

Eskom is currently negotiating tenders for 100Mt of coal that is required for the next five years. Eskom has issued 9 other RFP’s since 1 April 2017 to procure additional coal for different power stations. Apart from a number of contracts already being concluded and delivery of coal commenced, various other agreements are in different stages of conclusion.

Plans in place to improve coal stockpile levels at the six power stations that are below the minimum stock level include the following:

• Limit production at these critical stations – off peak and weekend units shut down.
• Coal transfers away from destination stations with healthier stock level – monitored and optimized daily.
• Limit performance deviation of the rest of the fleet, including new build.
• Conclude interim coal supply agreements with the Tegeta Business Rescue Practitioners, to enable coal supply to Hendrina Power Station.

Reply:

(a)

R20 061 454 892 is the total debt owed to Eskom by municipalities as at 31 March 2018. This includes the total overdue debt of R13 569 922 454.

(b)(i)(ii)(iii)

Annexure A provides a list of municipalities with accounts in arrears and indicates municipalities that had payment arrangements with Eskom as at 31 March 2018.

(c)

R455 million.

It is to be noted that this amount in based on the top 20 defaulting municipalities, which make up about 92% of the total arrears amount, as at 31 March 2018.

The risk of prescription is limited due to it being interrupted by a by court order; summons; and /or acknowledgement of debt i.e. payment arrangements.

Table 1 provides details of debt owed by the top 20 defaulting municipalities, as at 31 March 2018.

Table 1: Debt owed by the Top 20 defaulting municipalities

Top 20 defaulting municipalities	Total Debt (R’M)	0 to 90 days	>90 days <= 1yr	>1yr but <= 2yr	>2yr but <= 3yr	>3yrs but <=4 yr
DIHLABENG MUNICIPALITY	184.0	34.4	R 136.2	R 13.5
DITSOBOTLA LOCAL MUNICIPALITY (incl. Lichtenburg)	296.7	35.1	R 122.5	R 139.2
EMALAHLENI LOCAL MUNICIPALITY (MP)	1 661.4	228.7	R 906.1	526.6
EMFULENI LOCAL MUNICIPALITY	873.2	504.8	R 368.3
GOVAN MBEKI MUNICIPALITY	561.6	123.4	438.2
KAI !GARIB MUNICIPALITY	129.0	20.3	56.2	52.6
LEKWA LOCAL MUNICIPALITY	502.3	79.9	301.3	121.1
MALUTI A PHOFUNG MUNICIPALITY	2 754.8	187.0	768.7	814.2	629.3	355.6
MANTSOPA LOCAL MUNICIPALITY	119.4	16.4	42.3	56.8	3.9
MATJHABENG MUNICIPALITY	1 815.0	198.8	480.6	636.6	499.1
MERAFONG CITY LOCAL MUNICIPALITY	156.0	51.8	104.2
MODIMOLLE LOCAL MUNICIPALITY	130.8	23.6	107.2
MOOKGOPHONG LOCAL MUNICIPALITY	118.2	11.5	52.8	53.9
MOQHAKA MUNICIPALITY (incl. Steynsrus)	230.4	74.0	156.4
NALA LOCAL MUNICIPALITY	178.0	24.3	57.5	96.3
NALEDI LOCAL MUNICIPALITY (NW)	279.2	28.8	95.7	121.2	33.5
NGWATHE LOCAL MUNICIPALITY	937.7	66.2	250.4	287.0	234.3	99.8
NKETOANA LOCAL MUNICIPALITY	171.0	23.1	52.7	73.6	21.6
THABA CHWEU LOCAL MUNICIPALITY	444.2	50.0	134.6	179.4	80.2
THABAZIMBI LOCAL MUNICIPALITY	217.5	12.8	61.0	95.7	48.1
WALTER SISULU LOCAL MUNICIPALITY	141.2	23.7	85.7	31.8
GRAND TOTAL	11901.8	1818.7	4778.5	3299.3	1550.0	455.3

Reply:

Information relating to the regulation of the intelligence services is governed by the Intelligence Services Act, 65 of 2002 (as amended). The questions raised by Dr Groenewald would be better ventilated through the oversight bodies such as the Joint Standing Committee on Intelligence (JSCI), Inspector-General of Intelligence, among other regulatory bodies.

Reply:

(a)(b)(i) The Minister of Public Enterprises was not accompanied by the spouse and/or an adult family member during official international trips for the period 2013/14 to 2017/18.

(ii) Since 1 April 2018 the following are the details:

(aa) Minister travelled with his spouse, Mrs Vanitha Gordhan.

(bb)(aaa) Purpose of the trip

The Minister of Public Enterprises, Mr Pravin Gordhan received an invitation to attend and participate at the World Bank/ IMF Spring Meetings. The meetings attended by the Minister are as follows:

• Semi-Annual Workshop of the Advisory Finance Group (AFG) on 19 April 2018;
• Annual Havard Ministerial Leadership Forum for Finance Experts at Havard University on 23 April 2018;
• Workshop on The country Challenges of Institutionalized Corruption: Lessons for South Africa, 25-26 April 2018;
• To Strengthen country-to-country relations between South Africa and the United State of America;
• To interact with strategic stakeholders and to explore possible areas of

collaboration between the South African and United States of American companies.

(bb)(bbb) Destination of the trip is United States of America.

(cc)(aaa) Total cost of the trip in respect of the spouse is R132 418.61.

(cc)(bbb) Breakdown of the cost

The cost of R132 418.61 is only for the air ticket and there are no other costs incurred.

(2) The trip was approved by Presidency.

Reply:

Economic Development Department

There are two (2) criminal cases that were reported to SAPS in terms of Prevention and Combating of Corrupt Activities Act, Act 12 of 2004, relating to theft. Both cases have been investigated. In the first matter, the investigation was closed with the second matter is before the courts.

ITAC

Two cases have been reported to the SA Police Service (SAPS) to date. Bothe cases were followed up by the accounting officer. Neither case was successfully prosecuted.

Competition Tribunal

The Competition Tribunal has not had any cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004 referred to the SA Police Service (SAPS) and or Directorate for Priority Crime Investigation (DPCI).

Competition Commission

Two (2) cases have been reported to the SAPS and none have been referred to the DPCI.

The update from the SAPS is that they are investigating the two (2) cases. The Commission has received the update based on the follow up it has been making with the SAPS. None of the two (2) cases has resulted in a conviction at this stage.

IDC

The Industrial Development Corporation has referred seven (7) cases for investigation to the SAPS relating to the Prevention and Combating of Corrupt Activities Act from 01 April 2004 to 31 March 2018.

All seven (7) cases referred to the SAPS for investigation were investigated by the SAPS. None of the cases were directly referred to the Directorate for Priority Crimes.

All the cases referred to the SAPS were followed up by the respective IDC accounting officers. The respective forensic investigators and the General Counsel have followed up on the progress of the matters with the SAPS. None of the cases related to the Prevention and Combatting of Corrupt Activities Act has resulted in a conviction, as the matters are still ongoing.

-END-

Reply:

1. No, the stated Judge is no longer serving as a Judge of the Gauteng Division of the High Court.

2. The Judge was discharged from active service in August 2015 in terms of section 3(2)(a) of the Judges’ Remuneration and Conditions of Employment Act, 2001 (Act No 47 of 2001) after completing 15 years and having attained the age of 70 on 11 February 2015.

3. The Judge was not well at the time of his retirement but his discharge from active service was due to the attainment of the retirement age of 70 years and completion of 15 years active service as prescribed in section 3 and 4 of the Judges’ Remuneration and Conditions of Employment Act, 2001.

The questions relating to (b) and (c) can only be answered by the Judge medical practitioner.

4. In view of the fact that the judicial authority is vested in the courts that are independent, I would suggest that the Honourable Member approach the Chief Justice regarding the work and judgments of the judge.

Reply:

1. 146 members of the senior management service (SMS) had declared their interests for the past year (2017/18 financial year) as required by the Public Service Regulations of 2016. Only five (5) out of 151 SMS members appearing on the February 2018 Departmental Persal report did not disclose their financial interests. All five (5) SMS members have either retired, resigned or contract expired. Their names are indicated in the table below:

(i) Rank	Reason
Chief Director	Retirement (31/03/2018)
Chief Director	Resigned (31/03/2018)
Chief Director	Retirement (31/03/2018)
Director	Retirement (30/04/2018)
Director	Contract expired (31/03/2018)

2. The above SMS members have not been charged since they have either retired, resigned or contract expired.

3. None.

4. None.

Office of the Chief Justice

1. All members of the senior management service (SMS) in the Office of the Chief Justice (OCJ) had declared their interests for the past year as required by the Public Service Regulations.

2. Not applicable, as all members of the senior management service (SMS) complied with the Regulations.

3. None.

4. Not applicable.

Reply:

The response is based on information received from Denel SOC Limited.

The Minister of Public Enterprises on 18 April 2018 directed the Board to investigate the awarding of the bursary awarded to the son of the Premier of North-West, Mr Supra Mahumapelo, to check whether the process was conducted in line with Denel policies.

The Board has commissioned the investigation and on its conclusion will take appropriate action against anyone within Denel who has flouted applicable policies. Further action to recover the funds expensed towards the bursary will need to be taken, if it is found that proper procedures were not followed.

On conclusion of the investigation, the Board has undertaken to share its contents with the Minister and at that stage the Minister shall be in a position to answer the questions that the Member has asked.

Reply:

Normally a Conference of this nature would cost in excess of a million rand for travel of an international speaker, fees associated with the speaker (a Nobel Laureate in Economics), flights for local delegates, accommodation, venue and catering.

The Ministry arranged to have the event done in partnership with the University of Witwatersrand, who provided the venue and certain costs associated with the event.

The Economic Development Department paid R46 124 for the event, to cover part of the cost of catering and travel for local delegates. The Economic Development Department did not incur any costs at all for Professor Stiglitz, as he was already in the country at his own cost on business unrelated to the Department and he did not charge a speaker’s fee for speaking at the EDD event.

-END-

Reply:

DPE response

a) In 2007 the then Department of Minerals and Energy which is currently known as the Department of Mineral Resources (“DMR”) entered into a Memorandum of Agreement (“MoA”) with De Beers in connection with the State interest pertaining to lease consideration, claims and other obligations payable to the State in terms of the 1979 lease (“Cullinan Lease”) and the 1990 lease (“Venetia Lease”). The Cullinan Lease and the Venetia Lease collectively will be referred to as “Lease Agreements”.

Prior to the enactment of the Minerals Act of 1991 (“Minerals Act”) and as inferred by the MoA, the State had an uncontested interest and claims which were payable and arising out of the Lease Agreements. However, once the Minerals Act was enacted, De Beers contested the State interest and claims under the Lease Agreements and contended that the State interest and claims were no longer payable.

On the other hand, the State was of the firm view that the coming into effect of the Minerals Act does not extinguish its rights flowing out of the Lease Agreements. In order for DMR and De Beers to settle the above dispute, an MoA was concluded as a full and final settlement of any and all claims that the State may have had against De Beers in terms of the Lease Agreements and as part of the settlement a 20% shareholding in Namaqualand Mines (NM) was allocated to DMR pending transfer to a proposed transaction structure involving Alexkor.

The protracted Richtersveld community land claim against the Department and Alexkor (“Land Claim”) complicated the deal as the resolution of the matter was vital to the proposed transaction structure. The Government took a decision to protect the 20% shareholding in NM pending the resolution of the Land Claim. Eventually, the proposed deal structure failed to materialise and whilst the Government was negotiating a resolution of the Land Claim, De Beers was proceeding with its business rationalisation process.

b) As a result, several steps were taken by De Beers to sell NM which was eventually acquired by Trans Hex and the State maintained its 20% shareholding under the custodianship of the Department of Public Enterprises. The NM operations lay dormant for several years until 2015 when West Coast Resources was formed to exploit the NM asset. The 20% shareholding of the State is warehoused in a Special Purpose Vehicle while the State determines how to leverage its stake.

 

Reply:

DPE response

a) The Special Investigating Unit is currently working with a team comprising the DPCI and State-Owned Companies’ (SOC) Forensic Units to inter alia address current and historical allegations of corruption in the SOCs. Among others, the team is seized with reviewing forensic reports that have been commissioned by the SOCs in order to:

(i) Ascertain the number and status of matters that have been referred to SAPS;

(ii) Ascertain the number and status of matters that have been referred to DPCI.

The efforts are meant to ensure that where prima facie case of corruption exists, the law enforcement agencies move to seize assets that are proceeds of corruption. Furthermore, the work is also meant to establish matters that the Boards and Executive of SOCs failed to refer for criminal investigation by relevant law enforcement agencies and matters that could expeditiously result in the conviction of those implicated in allegations of corruption concerning SOCs.

(aa) The question relates to a period that spans 14 years. Consequently, at the time of responding to the question, the Department had confirmed that one case of corruption and fraud was referred to the SAPS and the related investigation is still underway.

(bb) To date seventy nine forensic reports commissioned by SOCs concerning matters of malfeasance, fraud and corruption have been referred to the SIU for review. The team comprising SIU, Asset Forfeiture Unit and the DPCI is seized with the review of the reports. Furthermore, the SIU is currently conducting work in line with Proclamation No 11 of 2018 that authorizes investigation into allegations of malfeasance, fraud and corruption in Transnet and Eskom. A motivation will be submitted to Denel to address allegations of corruption in Denel.

b) (i)(ii)(iii) The review and reconciliation of records being done independently by the team led by the SIU should assist in ascertaining the completeness and status of all matters that have been referred to law enforcement agencies and convictions if any, which have been registered to date.

All the efforts mentioned above are fully aligned to the commitment made by the President during the State of the Nation Address that this is the year to turn the tide of corruption in public institutions. Therefore, the team led by the SIU should be allowed to continue its work in order to reveal facts behind the questions posed and the information that the SOCs has over the years submitted to the Ministry.

Reply:

In the 2018 State-of-the National Address, the President alluded to a review of configuration of government departments, this reconfiguration of government departments will amongst others reduce size of the public service, which will in turn reduce an increases of public service wage bill. The Department of Public Service and Administration is also putting together measures to contain huge increases of the public service wage bill, these measures include (i) employee-initiated severance package, (ii) early retirement without penalties, (iii) review of performance management and incentive system, (iv) centralised job grading and evaluation, (v) more effective management of allowances, including base amounts and frequency of adjustments, (vi) review of structure of government to reduce fragmentation, duplication of functions and elimination of redundant posts, amongst others, (vii) careful management of earnings growth including allowances, performance incentives and other benefits and also management of both headcount and earnings of public servants

All these measures will be implemented in a manner that avoids negative impact on the capacity of the state to deliver quality public services.

Reply:

As indicated in Parliament, I have met with both the Minister of Public Enterprises and the Minister of Transport to raise concerns regarding local procurement and to advise of the availability of local production capacity. Both Ministers support the drive to localize production of rolling stock and components.

The Honourable Member will be aware that changes have been effected recently to the boards of both affected State-owned Companies, namely Transnet and PRASA.

Further announcements will be made when additional developments occur or policy pronouncements are made.

-END-

Reply:

H&M is reportedly the world’s second largest clothing retailer, with stores ion a number of countries, including in South Africa. Earlier this year, the company featured an advert of a black child wearing a sweatshirt with the words “coolest monkey in the jungle” etched on the front.

The company was widely criticized for insensitivity and some responded with outrage. The company issued a public apology and hired a diversity leader to strengthen company sensitivities.

It had been known for some time that the company has not used South Africa as a source for the manufacture of clothing. EDD reached out to the company to draw to their attention to the fact that the African continent is not purely a consumer market for goods but also a source of clothing and textiles. The Swedish ambassador also facilitated discussions between the company and government as well as NGOs.

During the discussions, it was acknowledged that every single item in a H&M store from assets, stock in trade and consumables is imported. The Department and some of the NGOs pointed out that a full and complete mea culpa would preferably include using South Africa as a source for clothing and other consumables, which would create local jobs and help to bring down levels of unemployment in the country.

Government is encouraging a number of retailers to localize more of their sourcing as a means of creating local jobs and some retailers have already responded positively, as reported to Parliament on more than one occasion, with positive results for the country.

H&M acknowledged it had not previously considered South Africa as a sourcing market and undertook to send a technical delegation to South Africa to identify local capacity. EDD arranged a meeting between H&M and a retailer who had invested in local sourcing to show the opportunities in local industry. EDD arranged for H&M to visit a number of factories in Johannesburg, Cape Town and Durban in late May 2018.

We are engaging the company further and look forward to a positive response based responsible corporate sourcing that creates manufacturing jobs in South Africa.

-END-

Reply:

(1) (a) (i) and (ii) (aa) and (bb),

No incidents of racism have been reported for both the Department of Public Works and the entities reporting to the Minister of Public Works in the stipulated period.

As such, (1) (b) and (2) Fall away.

Reply:

1. (a) There was no decision taken regarding a fixed date to implement the South African Language Practitioners’ Council Act, Act 8 of 2014 because there is no budget to implement the Act.

2. According to the Act, the Council should be funded with the budget appropriated by Parliament. In line with this aforesaid requirement, the Department has approached Treasury for the budget to establish and fund the Council, but to no avail.

3). The Department will make a statement on the matter when the budget is available.

Reply:

1(a). To date, no incident of racism was reported to the human resources office of my department, however, it should be noted that (1) one incident of racism was reported at the National Museum in the year 2017/18.

(b). The department received a complaint from a whistle blower complaining about racism at the National Museum. The Chairperson of the Council was instructed to investigate the allegations. The Council conducted investigation and recommended that disciplinary processes be implemented, against the allegations levelled at the official.

2. Yes, the incident was investigated, the official had since resigned from the National Museum.

(@8497)

Reply:

The response is based on information received from Alexkor SOC Limited.

(1)	(a)	The position was advertised in the Sunday Times on 26 February 2017. A panel was established comprising of board members to interview the short listed candidates. The preferred candidates were then put through a set of psychometric tests. The process followed was in line with Alexkor’s recruitment and selection process.
	(b)	26 February 2017
	(c)	(i)	The names of the candidates who applied for the position is in the possession of the Department and the members are welcome to request sight of said list. The challenge in publicly disclosing the names is that application for these level positions is done on a confidential basis, and disclose may negatively affect the current employment relationship of the applicants. Besides, the disclosure cannot be done without the candidates giving the Department consent to disclose their names.
		(ii)	As per (1)(c)(i) above.
	(d)	(i)	Minimum of 5 years mining experience (diamond or coal mining experience preferable).
		(ii)	At least 5 years senior management experience.
		(iii)	Executive Management experience.
		(iv)	Comprehensive knowledge of the PFMA and Treasury Regulations (3 years SOC/SOE experience would be an advantage)
		(v)	Extensive strategic leadership experience.
		(vi)	Business rescue or turnaround strategy implementation experience.
		(vii)	Relevant Mining Qualifications preferable (BSc Mining Engineering or Equivalent).
	(e)	(i)	Ms H Matseke	(Chairperson of the Board of Directors)
		(ii)	Mr T Matona	(Member of the Board of Directors)
		(iii)	Ms B Makwetla	(Member of the Board of Directors)
		(iv)	Mr S Danana	(Member of the Board of Directors)
		(v)	Dr R Paul	(Advisor to the Board of Directors)
		(vi)	Ms L Mphahlele	(Leadership Talent, Service Provider as observer)
	(f)	(i)	Mr Pitsoe has 23 years mining experience, including Diamond or Coal Mining;
		(ii)	9 years senior management experience
		(iii)	4 years executive management experience
		(iv)	Extensive strategic leadership experience
		(v)	He was involved in a turnaround strategy at Hernic Ferrochrome (Pty) Ltd
		(vi)	He as a BSc Mining Engineering degree
(2)	The question was not asked of Mr Pitsoe as it was not relevant to the employment criteria. For the record, Mr Pitsoe was employed as a General Manager at Hernic Ferrochrome (Pty) Ltd, and did not have a direct relationship with the Gupta family. JIC, a Gupta company was as service provider to Hernic which relationship was in place long before Mr Pitsoe joined Hernic, which is owned by Mitsubishi a Japanese conglomerate.

We will be looking into these matters more closely in the coming months.

Reply:

The Ministerial Handbook outlines provisions for international travel for members of the executive and their family members. Members of the Executive are regularly invited to participate in international conferences or forums in order to promote a South African agenda and brand that benefits or showcases the country.

Ministers and Deputy Ministers must approach the President in writing, two weeks in advance of a planned official visit abroad, to request approval for the intended visit and the appointment of an acting Minister.

Section 3 stipulates provisions that allows for Ministers and Deputy Minister’s to be accompanied by their spouses or an adult family member, subject to relevant processes and approvals of an official trip abroad.

The department covers the cost of travel once all processes, policies and approvals have been adhered to and applied and this is subject to the availability of funding.

However, the Auditor General audits, amongst others, expenditure related to travel expenses borne by the department and produces audited opinions on departmental Annual Reports, which is tabled in parliament annually.