Questions and Replies

Reply:

(1) An investigated was initiated on 22 February 2016.

(2) Yes, the investigation has been finalised.

(a) 01 July 2016.

(b) The findings are as per the table below:

	Allegation	Finding
1	Unlawful/unilateral powers of the Executive Committee to change moderated performance scores. The CEO has powers to award discretionary bonuses.	The allegation was unfounded.
2	Unilateral blanket correction of scores.	The allegation was substantiated. Senior management scores adjusted downwards (3%) by the Moderating Committee without justification. Error in the calculation and award of a bonus to the General Manager: Operations (employee underpaid by R47 400.12). Error subsequently corrected: R47 400.12 retrospectively paid to the General Manager: Operations.
3	Implementation of performance-based salary increases.	The allegation was unfounded. Executive Management, however, incorrectly applied Board Resolution in determining salary increases (upward adjustment of 0.16%), without justification.
4	The CEO sets commercial targets for SAWS in terms of organisational performance.	The allegation was unfounded.
5	The former General Manager: Corporate Affairs was awarded a performance bonus despite being on a prolonged leave of absence during the assessment period.	The allegation was unfounded. The former General Manager: Corporate Affairs was, however, overpaid by an amount of R9 270.22 and the money was refunded to the SAWS.

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Reply:

(1) (2) (3) Audit process on the figures with regard to the cost and the numbers referred has not been completed.

(4) Not at this stage

Reply:

(1) To date 13 contracts have been completed, 23 contracts are still in progress, 10 contracts are at evaluation stage and 1 contract is at tender stage. Refer to Annexure A for the estimated completion dates and estimated cost.

Contracts in Progress:

The Polihali Dam as well as the Polihali to Katse Transfer Tunnel design is progressing well. Presently the Geotechnical drilling contract is 3 months behind schedule. Alternatives are being considered to mitigate any delays this may have on the above-mentioned designs.

 

Infrastructure, Social and Environmental consultancy work in progress are the design of:

• Environmental Social Impact Assessment (ESIA) Western Corridor,
• ESIA Dam and Tunnel site establishment areas,
• Resettlement Action Plan (RAP) for Project Housing, main reservoir, Major bridges & road realignments (iv) RAP - Western access road and
• Hydropower feasibility study now concentrating on the detailed feasibility of conventional hydropower generation at three sites.

Designs and tender documentation are ready to be issued by June 2018, of the following works are:

• Western Access Road,
• Power supply and Telecommunications.

Tender evaluation of the first three (3) construction contracts, were advertised in September and October 2017 are complete and is about to be awarded. The contract for the Advanced Infrastructure construction works are:

• An Access Road,
• Civil works at the Polihali Village accommodation area and,
• The short Diversion Tunnel around the Dam wall to mitigate any delays when the Dam construction commences.

(2) No construction contracts have been awarded to date.

 

Annexure A

Phase II: Progress to date (Budget figures exclude escalation):

KEY items	Milestone dates	Budget at completion	Cost to date Rand	% Invoiced	Comment (Reference Program V11.0)
Administrative cost	Dec 2025	329 052 613	272 428 720	82.7
Advanced Infrastructure – design and supervision	Apr 2015 – Sept 2018	252 502 764	120 194 418	47.7	Average 2 months behind schedule. Budget includes supervision costs.
Advance Infrastructure – construction	May 2018 – Aug 2020	4 125 620 005	-	-	Various awards starts in May 2018
Polihali Dam - design & supervision	Jul 2017	465 103 216	13 541 039	2.9	Design on programme. Budget includes supervision costs.
Polihali Dam – construction	Feb 2020 (Start)	3 800 000 000	-	-	To be awarded by Feb 2020, Completion date - Dec 2025
Geotechnical investigations	Apr 2019	42 719 213	29 881 290		3 months behind due to flooding and cashflow problems. Alternatives considered
Diversion tunnel around dam wall – design and supervision	Sept 2016 – Sept 2019	82 460 557	22 883 723	27.8	On programme. Non critical item
Diversion tunnel around dam wall – construction	May 2018 – Sept 2019	-	-	-	To be awarded by end of May 2018
Polihali to Katse Tunnel - design and supervision	Nov 2017	920 000 000	-	-	Awarded in Nov 2017. Budget includes supervision costs.
Polihali to Katse Tunnel – construction	May 2020 (Start)	4 500 000 000	-	-	To be awarded by May 2020. Completion date – Feb 2026
Social development projects	Present to Dec 2024	128 722 147	39 862 675	40	3 months behind on average. Resettlements will be completed in time for construction
Environmental projects	Present to Dec 2024	53 646 560	26 837 363	50	Studies and designs on programme
Start impounding water in Polihali	Nov/Dec 2023	-	-	NA	On programme Ver 11.0
Water delivery into Katse Dam	By end Jan 2026	-	-	NA	Water in storage since Nov 2023 Volume of transfers to Katse Dam will be dependent on the agreement reached with Lesotho on the new Operational Rules of the LHWP
ESTIMATED COST AT COMPLETION INCLUDING ESCALATION AND CONTINGENCIES	24,326 bill	525 629 228	2.7%	Scheduled complete 3.48%

 

Reply:

The department and entities reporting to the Minister for Public Service and Administration do not own land. The department of Public Works is responsible for the accommodation needs of the department and entities

Reply:

a) There were no grievances filed against the Department due to irregular appointments.

b) n/a.

Reply:

(a)

Trauma Debriefing: Reactive

Psychological trauma debriefing is conducted, subsequent to all traumatic Incidents. This intervention is employed within 48 hours after exposure to a traumatic incident. Trauma debriefing is offered to all members of the South African Police Service (SAPS), who have been exposed to trauma. The table below reflects the number of employees of high risk units and operational members, who were debriefed during 2017/2018:
 

Province	Number of SAPS Act members debriefed
Eastern Cape	804
Free State	198
Gauteng	1178
KwaZulu-Natal	408
Limpopo	368
Mpumalanga	258
Northern Cape	128
North West	451
Western Cape	1007
Head Office	573
Total	5371

Find here: Multiple Stressor Intervention: Proactive (Biannual)

Reply:

Response to Sub-question (1)

The matter of a state house being occupied by Amathole Forestry Company representative was only brought to my attention when the Honourable Member asked the question. Part of the state assets transferred to Lower Zingcuka community is a residential house that was used by agricultural extension officers during the Ciskei government. It should be pointed out that DAFF was never involved in this process. However, it was established that that house in question was abandoned and vandalised. The community took a decision to preserve the house and used it as a crèche. Unfortunately vandalism on the property continued unabated. Subsequently, Lower Zingcuka Agricultural Cooperative Limited in agreement with the community took over the use of the house for business purposes. The cooperative stores its implements and a tractor at the property. Through the partnership described under response to question 1028, Mr Jerry of Amathole Forestry Company was deployed to the Wolf River area by Rance Rural Development Agency to provide technical support to the cooperative and other villages in the area. Through the agreement of both the community and the cooperative, Mr Jerry was given permission to reside in the house.

Response to Sub-Question (2)

Even after the partnership between AFC and the cooperatives lapsed, Mr Jerry continues to reside in the house providing production related technical support to other communities in the area. Mr Jerry also services the tractor belonging to the cooperative and other equipment, even though there is no formal contract in place. It has been established that the continued stay of Mr Jerry at the house is per agreement by the community and the youth cooperative due to the value of the services that he provides to them. Mr Jerry has become part of the community and provides various forms of assistance to members of the community.

In conclusion, there are no formal agreements or documents signed between the state and Amathole Forestry Company allowing Mr Jerry to use the house in question. This is a matter between the community, Lower Zingcuka Agricultural Cooperative and Amathole Forestry Company. The continued stay of Mr Jerry at the house is purely based on the value that he (Mr Jerry) brings to the community. Should the community wish to reclaim the use of the house, it is envisaged that they will engage Mr Jerry personally who has expressed his willingness and readiness to vacate the property should the community so wish.

Reply:

(1)

(a) The Department does not have job centres and/or mobile job clinics operational in Provinces; it has Labour Centres and 2 Mobile Buses.

(b) N/A

(c) N/A

(d) N/A

(e) N/A

2.

(a) The Department will not be opening any job centres and/or job clinics in the 2018/19 financial year. However, the Department intends to pilot Youth Employment Centres in the existing Labour Centres and the Compensation Fund intends to introduce 4 multipurpose mobile units and 4 mobile clinics to take services closer to the people.

Reply:

a) Disciplinary action was taken against Mr N Lubelwana.

b) Disciplinary action was taken due to a salary overpayment to an official that resigned with immediate effect.

c) The official was issued with a written warning.

Reply:

The Performing Arts Centre of the Free State (PACOFS) will be guided by its policies and disciplinary code in instituting consequence management against any member of PACOFS who is found to be responsible for incurring irregular expenditure.

Reply:

The Department of Environmental Affairs is committed to utilising resources allocated through the Parliament appropriation process in the most cost effective and responsible way. As a first priority the Department utilises public servants in the department to do the work. Only if the specific expertise is not available internally, will the department consider using the services of consultants.

In making use of consultants, the department ensures cost effectiveness. Where possible, we aim to ensure that consultants transfer these skills to departmental officials. The Department will continue to ensure that the use of consultants are in line and guided by the PFMA and the relevant Treasury Regulations. The use of consultants is reported in our quarterly financial reports to the Portfolio Committee on Environmental Affairs (PCEA), and in our annual financial statements. These are audited by the Auditor General and are tabled in Parliament as part of our Annual Report.

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Reply:

a) (i)The tender to constitute a panel of advertising agencies to assist with the procurement of community media was advertised on 17 November 2017.

(ii) The tender was advertised on the GCIS website and on the Government Tender Bulletin.

b) There was a total of 8 bids received

c) The process of evaluation is still in progress.

d) There is no monetary value attached to the tender (the value/ budget will be dependent on the client’s expected demand.)

Reply:

All employees of the SSA, including all levels of management, are subjected to extensive vetting every five years. The SSA also reserves the right to re-vet any of its employees during the course and scope of the five years should a need arise. Vetting is one of the core competencies of the SSA and is not outsourced to any service provider.

Information pertaining to vetting, as with other operational information of the SSA, forms part of the broader operational strategy of the agency and, therefore, as a matter of policy, the SSA does not disclose such information. It should, however, be observed that the SSA is overseen by the Joint Standing Committee on Intelligence (JSCI) and the Inspector General of Intelligence amongst other regulatory bodies.

Reply:

(1) (a) There is a total of 1 471 protected areas in South Africa.

(b) A list of all protected areas are kept in the Register of Protected Areas in line with the National Environmental Management: Protected Areas Act, 2003 (Act No. 57 of 2003), Section 10, and can be downloaded from https://egis.environment.gov.za/. All the information on (i) and (ii) are contained in the file.

(2) (a)(b) Protected areas are managed by either goverment departments, statutury bodies or by a suitable person, organisation or organ of state as assigned by the Minister or Member of Executive Council in terms of Section 38 (1) and (2) of the National Environmental Management: Protected Areas Act, 2003 (Act No. 57 of 2003).

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Reply:

(1)(a) I have been advised that the nature of the Settlement Agreement is to address the outstanding matters connected with the Correctional Officials Occupational Specific Dispensation (OSD) 2nd Phase experience recognition for the production salary levels 03 to 08 that emanated from General Public Service Sectoral Bargaining Council (GPSSBC) Resolution 2 of 2009.

(b) The collective agreement allows for a multi-year implementation of back pay amounts. The Department has already paid 17% of the back pay amount owed to fourteen thousand two hundred and ninety (14290) qualifying correctional officials, and 6% back pay amounts to twelve thousand three hundred and sixty five (12365) qualifying correctional officials respectively. With regard to the six thousand three hundred and six (6306) qualifying correctional officials who terminated services, the Department has initiated an audit to determine the debt owed to them in relation to the OSD Departmental Bargaining Chamber settlement agreement. To date a total of three thousand two hundred and seven cases (3207) have been audited and submitted for payment. The agreed 4% payments which are due in the 2018/2019 financial year for both serving and terminated officials are scheduled for payment during the 2nd quarter starting July 2018 of the current financial year.

(2)(a):

(i) The 17% owed to qualifying officials plus 6% of the staggered payments have been paid.

(ii) 4% payments are scheduled to be made to serving officials during the 2nd quarter of the current financial year (2018/2019).

27% (17% + 6%+ 4%) payments are scheduled to be made to ex officials during the 2nd quarter of the current financial year (2018/2019).

(2)(b):

(i) The 17% payments were made during June 2017 and October 2017.

6% payments were made during February 2018.

4% to serving officials as well as 27% to ex-officials are scheduled to be paid during the 2nd quarter of the current financial year (2018/2019).

(ii) R57, 463 574.00 already paid to serving officials.

An estimated amount of R71 million is to be paid to both serving and ex-officials (4% for serving officials and 27% to ex-officials back log).

(3)(a) As agreed in the Settlement Agreement it is expected to conclude this matter not later than 31st March 2020.

(b) Utilisation of a task team to oversee payments centrally on a continuous basis and assist/guide regions with all relevant administrative processes to conclude the remaining 3% payments in the 2019/2020 financial year.

Reply:

Not Applicable

Reply:

No, there were never any meetings with the ITU on the June 2019 switch-off date. ITU resolutions are communicated through World Radio Conferences held every four years or through specific Circulars sent by the ITU.

The ITU mandated analogue transition date was June 2015, which has since passed. Beyond this date, the ITU no longer provides protection for analogue services in the affected spectrum bands. Beyond June 2015, it is up to the neighboring member states to negotiate mutual terms to avoid causing interference with each other. The ITU can merely be informed for the record on the progress made regarding analogue switch off in the affected member states.

South Africa has set June 2019 analogue switch off target, it is not an ITU directive.

a) Not Applicable

b) Not Applicable

c) Not Applicable

d) Not Applicable

____________________

Dr Boloka Mashilo

Department of Communications – Director-General (Acting)

Date:

Approved/ Not approved

_______________________________

Ms Nomvula Mokonyane

Minister

Date:

Reply:

(a)(I). The process of constituting Councils is prescribed in relevant enabling legislations that compel the Department to ensure that issues of diversity are addressed. The process of appointing Councils also prescribes that an open and transparent process is followed and as such the shortlist of recommended candidates is only drawn from the public nominations received. All efforts are made to ensure that diversity considerations are made in terms of age, gender, race, class and geographical spread during the selection process.

II). PACOFS Management

The Council of PACOFS will ensure that issues of diversity are addressed when filling the following managerial vacancies:

1. Chief Executive Officer
2. Technical Director
3. ICT Manager
4. Marketing Manager

(b). Leadership vacuum is a major contributor to the instability at PACOFS. To this end, my Department is working closely with the Council of PACOFS to complete and finalise the litigation cases which have held up the filling of critical leadership positions. Further, we have granted the Council of PACOFS permission to utilize the previously ring-fenced funding to upgrade the infrastructure of the entity which will enable the PACOFS to host national and or international programmes.

(c). The Performing Arts Centre of the Free State (PACOFS) will be guided by its policies and disciplinary code in instituting consequence management against any person found to have brought PACOFS into disrepute.

Reply:

A) Percentage of learners repeating a grade by province and year

Currently, the best source of data available for estimating repetition rates is STATS SA’s General Household Survey (GHS). The most recent data is from 2016. The repetition rates per grade, year and province are shown below. Note that this is a nationally representative sample survey, and the figures presented below are therefore estimates rather than exact census type information. The sample is not designed to provide representative statistics per education district, and therefore this information is not available. For 2016, the estimated national repetition rate was 7.6% in grade 7, 11.0% in grade 8, and 11.9% in grade 9.

 

Province	Grade 7	Grade 8	Grade 9
	2012	2013	2014	2015	2016	2012	2013	2014	2015	2016	2012	2013	2014	2015	2016
Western Cape	4.4	6.0	4.9	5.8	5.9	9.6	3.8	7.6	10.2	6.3	8.7	14.7	9.8	14.4	15.4
Eastern Cape	7.8	7.9	8.4	9.5	7.5	11.9	11.3	7.6	13.7	5.8	10.0	11.2	14.7	11.1	4.7
Northern Cape	7.7	10.3	10.0	21.1	12.8	8.0	8.6	10.6	17.2	12.0	6.5	13.0	22.3	18.1	9.2
Free State	4.7	14.2	12.0	13.1	16.5	8.5	7.9	11.3	18.1	18.4	13.9	22.7	26.9	29.9	22.1
KwaZulu-Natal	5.8	6.0	4.1	6.3	7.5	7.4	8.7	10.0	5.9	11.0	9.7	13.2	9.0	6.9	7.7
North West	14.6	10.4	8.9	13.5	10.8	13.8	4.8	10.0	17.7	20.1	16.5	31.2	19.5	21.0	23.7
Gauteng	3.5	4.9	3.1	3.6	5.0	8.3	4.4	9.1	6.5	8.2	13.9	8.4	11.4	8.9	7.9
Mpumalanga	7.9	14.7	12.8	10.5	8.6	19.3	19.4	18.8	24.4	18.7	19.4	15.6	23.2	21.0	17.1
Limpopo	7.7	7.9	8.8	7.8	5.9	8.9	10.2	7.0	17.2	11.7	27.4	24.5	32.9	24.1	16.6
South Africa	6.5	7.9	6.8	7.9	7.6	10.3	8.6	9.8	12.3	11.0	15.0	16.2	17.3	14.8	11.9

Source: General Household Survey (GHS), DBE own calculation

B) Drop-out rate

Similarly, the best available estimates of drop-out rates by grade are derived using GHS data. The table below shows the drop-out rates and survival rates for 2 different age cohorts, those born during 1987-1989 (and surveyed between 2011-2013) and those born during 1990-1992 (and surveyed between 2014-2016). These two cohorts provide a justifiable comparison across time, because the individuals would have been the same age when surveyed (between 22 and 26 years old). The specific cohorts were chosen, because individuals aged 22 – 26 years old would have been old enough to have completed school at the time when the GHS data was collected, and we will therefore be able to gauge what percentage of them finished their schooling at which grades. The survival rates in the table show the percentage of individuals who reached each grade. The rate was then converted to show the number of individuals, out of a 1000 individuals who reached each grade. It was then also possible to calculate the percentage of all individuals reaching particular grades who then drop out before attaining the next grade.

Note that for several years the data has been combined for this analysis in order to ensure that there are sufficient sample sizes in each of the cells. It is also important to note that whilst this method provides the most reliable estimates of drop-out rates by grade, it does not reflect the drop-out that happened in a particular year – the data may have been collected from 22-26 year-olds between 2014-2016 but those youths may have dropped out of school in an earlier year.

Interpretation focusing on 2014-2016:

An estimated 0.7% of these youths in 2014-2016 reported to have not even completed Grade 1. Grade 12: 51.5% of this cohort attained Grade 12. It was also calculated that 26% of those with Grade 11 (NB: not of all youths) dropped-out before attaining Grade 12. Similarly, the drop-out rates for grade 7, 8 and 9 were 3.1%, 4.6% and 9.5% respectively.

Drop-out rates for each grade are also reported by province using the same methodology in the tables below, for both the 2011-2013 combined period and the 2014-2016 combined period. It is worth noting that in general the survival rates improved in the more recent period.

Survival rates and drop-out rates, associated with each grade

	2011-2013	2014-2016
	Survival Rate	Survival per 1000	Percentage dropping out with this Grade attained	Survival Rate	Survival per 1000	Percentage dropping out with this Grade attained
Total cohort	100%			100%
No schooling		1000	0.7%		1000	0.7%
Grade 1	99.3%	993	0.4%	99.3%	993	0.1%
Grade 2	98.9%	989	0.5%	99.1%	991	0.2%
Grade 3	98.4%	984	0.4%	98.9%	989	0.5%
Grade 4	98.0%	980	0.7%	98.4%	984	0.5%
Grade 5	97.3%	973	1.0%	97.9%	979	0.8%
Grade 6	96.3%	963	1.5%	97.1%	971	1.5%
Grade 7	94.9%	949	3.1%	95.7%	957	3.1%
Grade 8	92.0%	920	5.2%	92.7%	927	4.6%
Grade 9	87.2%	872	9.0%	88.5%	885	9.5%
Grade 10	79.4%	794	17.1%	80.0%	800	15.5%
Grade 11	65.8%	658	26.0%	67.6%	676	23.8%
Grade 12	48.6%	486		51.5%	515

Data Source: General Household Survey, DBE own calculation

Drop-out rates, associated with each grade by province 2014-2016

Grade	No schooling	Grade 1	Grade 2	Grade 3	Grade 4	Grade 5	Grade 6	Grade 7	Grade 8	Grade 9	Grade 10	Grade 11
Western Cape	1.0%	0.1%	0.2%	0.4%	0.3%	0.3%	0.8%	3.1%	4.7%	9.9%	16.9%	22.3%
Eastern Cape	0.9%	0.2%	0.4%	1.3%	1.1%	1.9%	3.0%	5.0%	6.9%	13.7%	23.8%	35.0%
Northern Cape	1.8%	0.4%	0.0%	0.4%	0.5%	1.1%	2.3%	4.0%	8.8%	14.0%	19.3%	23.0%
Free State	0.9%	0.1%	0.1%	0.1%	0.4%	0.8%	1.8%	3.4%	5.2%	12.5%	17.1%	21.5%
Kwazulu-Natal	0.7%	0.3%	0.4%	0.5%	0.6%	0.8%	0.8%	2.5%	4.1%	7.8%	13.3%	25.3%
North West	1.4%	0.2%	0.5%	0.3%	0.7%	0.9%	2.1%	2.5%	6.3%	14.5%	20.2%	22.6%
Gauteng	0.4%	0.0%	0.2%	0.2%	0.3%	0.2%	0.8%	2.0%	2.6%	5.0%	10.4%	17.6%
Mpumalanga	0.5%	0.0%	0.0%	0.3%	0.5%	1.5%	1.6%	3.7%	2.9%	8.1%	16.6%	28.7%
Limpopo	0.6%	0.1%	0.2%	0.7%	0.6%	0.8%	2.5%	4.3%	7.3%	15.6%	19.3%	28.4%

Data Source: General Household Survey, DBE own calculation

Note: data for 2014-2016 pooled together to overcome small sample errors

INTERPRETATION: This means that 28.4% of 22-26 year-olds in Limpopo who completed Grade 11 dropped-out before attaining Grade 12.

Drop-out rates, associated with each grade by province 2011-2013

Grade	No schooling	Grade 1	Grade 2	Grade 3	Grade 4	Grade 5	Grade 6	Grade 7	Grade 8	Grade 9	Grade 10	Grade 11
Western Cape	0.4%	0.3%	0.3%	0.1%	0.2%	0.5%	0.8%	2.7%	5.5%	11.1%	21.1%	23.1%
Eastern Cape	0.7%	0.4%	0.8%	1.3%	1.2%	2.3%	3.6%	5.2%	10.0%	13.3%	23.5%	40.6%
Northern Cape	1.5%	0.1%	0.1%	0.6%	1.9%	0.8%	1.4%	4.6%	10.3%	14.1%	20.7%	19.4%
Free State	0.3%	0.4%	0.2%	0.2%	1.0%	0.4%	1.9%	2.8%	4.9%	12.7%	19.1%	20.3%
Kwazulu-Natal	0.5%	0.6%	0.6%	0.7%	0.8%	0.9%	1.1%	2.4%	4.0%	7.5%	15.2%	23.2%
North West	1.8%	0.7%	0.4%	0.5%	0.8%	1.9%	2.3%	5.4%	6.1%	10.1%	19.2%	27.3%
Gauteng	0.6%	0.3%	0.4%	0.1%	0.4%	0.4%	0.8%	1.7%	2.8%	4.8%	12.0%	22.2%
Mpumalanga	1.2%	0.1%	0.6%	0.2%	0.9%	1.2%	1.4%	2.9%	6.5%	8.9%	16.3%	29.4%
Limpopo	1.1%	0.5%	0.4%	0.4%	0.4%	1.3%	1.3%	4.3%	5.2%	12.6%	22.5%	33.4%

Data Source: General Household Survey, DBE own calculation

Note: data for 2011-2013 pooled together to overcome small sample errors

Reply:

The Department of Basic Education (DBE) does not collect or collate this information. The Honourable member is requested to direct the question to the relevant province as such may be in their possession.

Reply:

1. With reference to the question of Hounarable Adv A De Albets, it should be clarified that the Minister of Transport is still investigating the appointment of the Air Service Licensing Board members, in order to determine if the Board was properly constituted in terms of the Air Licensing Act, Act 115 of 1990.

(2) to (4) Falls away

Reply:

Neither the department nor its Entities have conducted lifestyle audits. The department and its entities will implement any directive in this regard that’s developed for the public service.

Reply:

The Department of Basic Education does not collect these data. The honourable member is advised to direct the question to the province.

Reply:

During the past five years Armscor was involved in the following litigation:

a) Beverly Securities v Armscor

The total amount in respect of legal costs from 1 April 2013 is R9 305 677 which represents the costs of external legal representatives, Gildenhuys Malatji in South Africa and Rui Pena & Arnaut in Portugal, including Counsel’s fees in South Africa and Portugal.

b) Quaker Peace Centre v The Government of the Republic of South Africa and Armscor

The total amount in respect of legal costs is R775 253 which represents the costs of external legal representatives, Maluleke, Seriti, Makume, Matlala Inc., including Counsel’s fees.

c) Steradian v Armscor

The total amount in respect of legal costs is R210 023 which represents the costs of external legal representatives Maluleke, Seriti, Makume, Matlala Inc, including Counsel’s fees.

d) New Generation Arms Management (PTY) Ltd v Armscor

The total amount in respect of legal costs is R69 431 which represents the cost of external legal representatives Gildenhuys Malatji Attorneys

e) MP Ngoasheng v Armscor

No legal costs have been invoiced up to date by the external legal representatives, Maenetja Attorneys.

f) Van Tonder v Armscor

The total amount in respect of legal cost is R1 228 380 which represents the cost of external legal representatives Mamabolo Phajane Attorneys, including Counsel’s’ fees.

QUESTION 2

What is the name of each procured item that is still with the service provider and/or subcontractor and (b) what is the total rand value of each procured item for the past three years;

RESPONSE

There are no items that are still with the service provider. All procured items are paid for upon receipt.

QUESTION 3

Whether Armscor can account for each rand spent (a) from the Special Defence Account (SDA) and (b) on the assets procured in the past 3 financial years;

RESPONSE

Armscor can account for all payments made in relation to the SDA.

QUESTION 4

Whether all unaccounted assets plus their value have been reported to the Auditor-General (AG) and included in the Annual Financial Statement and AG reports?

RESPONSE

All payments made in relation to the SDA are sent to Department of Defence for inclusion in the Annual Financial Statements and submitted to the AG annually.

Reply:

DAFF

(a)(i) One

(ii) None

(b)(i) Enterprises University of Pretoria

(ii) Technical support in the preparing of SA Biennial Reporting on the 2014 commitment of Malabo Declaration on Agriculture, Growth and Transformation in Africa

(iii)(aa) 4 August 2017

(bb) No contract period applicable (once off payment)

(cc) R481 470,86

(dd) Director: Africa Relations

OBP

OBP does not have consultants on its books.

ARC

No consultants contracted to the ARC

NAMC

1. PRAXIS Computing:

1 November 2016 – 31 October 2019

Ongoing and pro-active maintenance of existing systems and network infrastructure, which includes full time onsite network support, as well as limited senior technical specialist support.

R 59 400 per month (excl VAT). (All Praxis rates and prices, may increase on the anniversary in accordance with the percentage annual increase in the Consumer Price Index, as published during the preceding month by Statistics SA.)

Signed by T. R Ramabulana: CEO

2. Finware Enterprise Services:

1 May 2017 – 30 April 2018.

Provide Pastel Support and the disbursement will be made upon the submission of invoice for services rendered at the rate of R 550.00 per hour.

           Signed by Z. Xalisa: CEO

3. Nexia SAB&T:

31 March 2016 – 1 April 2018.

Internal Audit Services.  Budget of R 360 000.

Signed by: T.R Ramabulana: CEO

PPECB

Consultant Name b(i)	Service Provided b(ii)	Start Date b(iii)(a)	End Date	Time Period b(iii)(b)	Cost b(iii)(c)	Name & Position Signed off b(iii)(d)
GABRIELE GESS	Legal	01 Sep 2017	31 Aug 2018	12 months	R240,000	Lucien Jansen (CEO)
GARTNER	Enterprise Resource Planning System	01 Oct 2017	30 Sep 2018	12 months	R726 900	Yanesh Ramiah (CIO)
MSI SOLUTIONS (PTY) LTD	Recruitment	23 Jun 2016	n/a	Month notice	12% Fee on all placements	Pinki Luwaca (HR Executive)
SIMEKA CONSULTANTS & ACTUARIES (PTY) LTD	Umbrella and Pension Fund	01 Apr 2013	31 Dec 2018	12 months, annually renewable	0.20% of pensionable remuneration per annum	Pinki Luwaca (HR Executive)
INFRACON CONSULTING (PTY) LTD	Construction Building renovations and additional parking	22 May 2017		Until completion of the project Estimate period 6 months	R281 520	Lucien Jansen (CEO)
LEROY WASSERFALL ARCHITECTS CC	Architect Building renovations and additional parking	18 Jan 2017	Until completion of the project	Until completion of the project.  Estimate period 6 months	R110 944	Lucien Jansen (CEO)
CLIFFE DEKKER & HOFMYER	Legal	26 Aug 2016	25 Aug 2018	24 months	Hourly Rates	Lucien Jansen (CEO)
SAB&T	BBBEE Advisory services	01 Dec 2017	30 Nov 2018	12 months	Hourly Rates	Pinki Luwaca (HR Executive)

MLRF

Name of each consultant	Details of the service provided	Start Date	Time period	Signature	Amount Paid
B Xulu and Partners	Legal Fees for Frap, Wiljaro and Bengis	27 January 2017	31 March 2018	They were appointed by Minister	R 23,264,302.45 (see attached breakdown)
Thulani Joseph Sithole	Legal Fees For Frap Appeals	30 January 2017	31 March 2018	They were appointed by Minister	R 1,769,592.00
George Mukundi Wachira	Legal Fees for Frap Appeals	30 January 2017	31 March 2018	They were appointed by Minister	R 1,922,744.00
ADV PM Matshulana	Legal Fees For Frap Appeals	30 January 2017	31 March 2018	They were appointed by Minister	R 1,888,626.60
Emang Basadi Legal & Forensic Services	TO PROVIDE STRATEGIC, LEGAL AND LITIGATION ADVISORY SERVICES TO DAFF	27 January 2017	31 March 2018	They were appointed by DG	R 9,432,539.23
The Ifirm Trading and Projects	Investigation into Wiljaro and SA Fence and Gate	28 June 2017	31 July 2018	They were appointed by DDG	R 498,076.00
Nondzaba Consulting	SERVICES OF A SUITABLE SERVICE PROVIDER  TO CONDUCT A COMPLETE MONITORING AND EVALUATION ON THE WORKING FOR FISHERIES PROGRAMME OF THE DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES; BRANCH: FISHERIES MANAGEMENT	31 May 2017	31 March 2018	Deputy Director General: Fisheries	R 462,674.00
Ameen Amod	Audit Comittee Member	01 August 2017	31 July 2020	Deputy Director General: Fisheries	R 459,859.00
Suleman Badat	Audit Comittee Member	01 November 2017	01 November 2020	Deputy Director General: Fisheries	R 48,755.00
Ntombentsha Lillian Mnconywa	Audit Comittee Member	19 July 2015	19 July 2018	Deputy Director General: Fisheries	R 435,113.80
Lahlang Shirley Somo	Audit Comittee Member	19 July 2015	19 July 2018	Deputy Director General: Fisheries	R 417,376.42
Mmathebe Annah Faith Moja	Audit Comittee Member	19 July 2015	19 July 2018	Deputy Director General: Fisheries	R 670,357.29
Maguga Attorneys INC	Legal Fees For Frap Appeals	26 January 2018	31 March 2018	Deputy Director General: Fisheries	R 410,400.00

MONTH	BXI FEES	SERVICE PROVIDER DISBURSEMENTS	PROJECT MANAGEMENT AND SECRETARIAT FEES	TRAVEL AND ACCOMODATION	VAT	AMOUNT BILLED TO DAFF
Jun-17	R 2 037 423.51	R 631 796.96	R 305 613.53	R 89 302.50	R 328 025.18	R 3 392 161.68
Jul-17	R 1 265 308.80	R 1 622 839.95	R 189 796.32	R 224 776.88	R 203 714.72	R 3 506 436.66
Aug-17	R 387 061.40	R 1 665 584.81	R 58 059.21		R 62 316.89	R 2 173 022.31
Sep-17	R 746 119.33	R 884 347.31	R 111 917.90	R 176 247.23	R 120 125.21	R 2 038 756.99
Oct-17	R 513 660.85	R 1 266 714.70	R 77 049.13	R 191 670.53	R 82 699.40	R 2 131 794.61
Nov-17	R 155 866.66	R 858 314.50	R 23 380.00		R 25 094.53	R 1 062 655.68
Dec-17	R 325 350.70	R 175 026.08	R 48 802.61		R 52 381.46	R 601 560.85
Jan-18	R 1 046 214.26	R 213 577.46	R 156 932.14		R 168 440.50	R 1 585 164.36
Feb-18	R 563 025.50	R 857 709.65	R 84 453.83	R 176 247.23	R 90 647.11	R 1 772 083.31
Mar-18	R 805 540.32	R 862 508.26	R 120 831.05	R 97 165.28	R 264 046.35	R 1 886 044.91
Total	R 7 845 571.34	R 9 038 419.68	R 1 176 835.70	R 955 409.65	R 1 397 491.34	R 20 149 681.36

Reply:

a) (i) The status of Mr. Ramaphosa’s association with FeverTree Consulting (Pty) Ltd is as follows:

b) At the time of the appointment of FeverTree Consulting by Armscor, Mr Ramaphosa had resigned on 25 June 2012 from FeverTree Consulting and had no interest in the company and was not in any way associated with the company by any direct or indirect means.

c) What were the amounts budgeted for the turnaround of Armscor, (c) what amounts have been spent on the turnaround as at the latest specified date for which information is available, specifically in favour of FeverTree Consulting,

The total value budgeted for the Armscor Turnaround was R 56 283 616.00. The total amount paid to Fevertree Consulting by 30 April 2017 (end of Phase 1) amounts to R55 420 538.21. To date an additional R2 886 657.74 has been paid to Fevertree as part of Phase 2 of the turnaround implementation.

Payments made were against contracted deliverables and divided according to work streams. Six work streams were established with a total of 213 deliverables listed as follows:

Work streams	No Deliverables	Amount Paid
1. Designing a new vision for the future	23	R10 226 630.40
2. Developing New Revenue Driven Strategies	42	R 9 695 641.71
3. Enhancing and Improving Core Functions	28	R 5 861 433.40
4. Communication and Change Management	40	R 5 318 500.78
5. A New Governance Model for Armscor	45	R10 949 337.69
6. Driving Greater Efficiencies	35	R13 230 201.60
Total	213	R55 281 755.58

The contracting model adopted in phase 2, allows Armscor to approach various service providers by tender process, for support during the implementation using an approved panel of service providers. To date an additional R2 886 657.74 was paid to Fevertree Consulting, for 14 deliverables, as part of Phase 2 of the Armscor turnaround implementation, for the following projects:

Project No	No of Deliverables
Project 001 - Strategic Planning Implementation	9	R2 402 192.64
Project 008 - Dockyard Sustainability Plan	5	R 484 465.10
Total	14	R2 886 657.74

QUESTION 3

And (d) what are the details of (i) all the achievements and (ii) savings listed against the contractual milestones to date?

RESPONSE

Phase 1 of the Armscor Turnaround focused on an As-Is assessment and the creation of plans to bridge the gap between the current and desired end state.

(i) This table lists the key achievements of Phase 1:

Drive Revenue by Leveraging Core Strengths	To leverage the core (traditional) strengths; 16 opportunities were identified with 4 prioritised in the Acquisition service line. 3 non Acquisition related opportunities were identified i.e. Gerotek Testing Center, AB Logistics & the Disposal of Defence Equipment
Commercialisation of technologies & patents	62 commercialisation opportunities were identified which may be considered for commercialisation of IP and Technology in the civil Sector 5 with a recommended framework and approach to commercialisation
Championing Innovation (Business Development)	Developed a set of Business Development Frameworks for Armscor’s participation in revenue earning initiatives Developed a framework for the potential Products and Services offering that Armscor can take to the market on a revenue earning basis Developed a life cycle process for Higher Order Solutions sales Developed a framework for the potential business models and structures related to the Products and Services categories
Acquisition and SCM	Developed a framework for the introduction of an Acquisition Standards and Processes Knowledgebase that will streamline the programme specific tailoring of acquisition processes to enable more efficient acquisition programmes without compromising Armscor’s service delivery accountability. Developed a framework for the introduction of an Acquisition Programme Tracking and Management Reporting System that will enable the gathering of acquisition programme related information supporting the further optimisation of processes and issue resolution processes with clients and industry. Developed an architecture for a more efficient Armscor Procurement Management service. Developed a model for the extension of Armscor’s Procurement Management (SCM) services into a marketable revenue generating function Developed a concept for the introduction of an e-Procurement ICT platform supporting the above Business Development initiatives.
Technology Management and Administration	Developed a framework for the introduction of a Technology Portfolio Management function that will address the Client expectations. Developed a framework for participation of the TMA function in future Armscor Business Development related programmes
Sweating Special Assets	4 Armscor property assets were identified and recommended as priorities for sweating and realising revenue Developed a study on all Assets & a Strategy with a legal framework for sweating assets in FY 18/19 Established an SLA with DOD for sweating DOD assets.
Defence SOE Collaboration	Identified and prioritised opportunities for SOE collaboration (Transnet, CSIR, Denel) Modelled an operating partnership framework and contract between Armscor and SOEs Developed a Framework for localization, indigenization and defence SEZ participation.

The above mentioned frameworks and plans are the basis of the implementation Phase 2.

(ii) A total of R88,17m worth of savings were identified to be realised within a period of 12 months after the project. An amount of R 61,7m was accepted as potential savings for the organisation to pursue and implement. To date R23,45m of the accepted savings has been realised. Various Opex savings have been implemented and their consolidated gains will be quantified at the end of the FY 18/19.

Reply:

(a) (i) What is the purpose of the Community Schemes Ombud Service?

The Community Schemes Ombud Service Act under which the Community Services Ombud Service has been established regulates the community schemes industry, to provide alternative dispute resolution mechanisms and management of all community scheme documentation.

(ii) What service does it offer?

The functions of CSOS include inter alia the following;

• Develop and provide a dispute resolution service in terms of this Act;

• Provide training for conciliators, adjudicators and other employees of the CSOS;

• Regulate, monitor and control the quality of all sectional titles scheme governance documentation and such other scheme governance documentation; as may be determined by the Minister by notice in the Gazette; and
• Take custody of, preserve and provide public access electronically or by other means to sectional title scheme governance documentation and such other scheme governance documents as may be determined by the Minister by notice in the Gazette.

In performing its functions the CSOS has an obligation to: -

• Promote good governance of community schemes;

• Provide education, information, documentation and such services as may be required to raise awareness to owners, occupiers, executive committees and other persons or entities who have rights and obligations in community schemes, as regards those rights and obligations;

(b) (i) What is the funding mechanism of the Ombud?

In terms of Section 22(1) of the CSOS Act, the Community Schemes Ombud Service derives its revenue sources from:

• Money appropriated by Parliament;

• Levies collected from community schemes with the approval of the Minister;

• Fees for services rendered based on cost recovery;

• Interest derived from investments of the Service;

• Donations or contributions received by the Service with the approval of the Minister; and

• Subsidies and grants from organs of state.

(ii) What was the total income and expenditure of the Ombud over the past three financial years,

(ii) Based on information provided by the Community Schemes Ombud Service the following is the income and expenditure of the CSOS for the following periods:

Find here: Income and expenditure of the CSOS

Reply:

Ward 21 of Mqanduli is under the Eskom license area. Khwenxura and Kalalo villages are planned to be electrified by the King Sabata Dalindyebo (KSD) municipality under Schedule 5b and on the MTEF. The Lower Tyholo, Upper Tyholo and Thamsanqa are planned to be electrified by Eskom.

In line with municipal Integrated Development Plan (IDP), KSD municipality like all other municipalities, plan and priorities electrification for all villages under their areas. This includes the areas under Eskom license.

KSD Municipality is allocated over R122 million to prioritise the electrification projects as per their IDP.

The villages are tentatively planned by the KSD municipality to receive electricity that is not in the form of solar energy by financial year 2021, based on the 3 year Medium Term Expenditure Framework (MTEF).

Reply:

(a) The North West Department of Human Settlements has advised that no contracts were terminated during the 2017-18 financial year. (i) - (vii) Not applicable.

(b) The Free State Department of Human Settlements reported that it terminated two contracts for the 2017-18 financial year. The reasons provided for the termination by the Free State Department of Human Settlements is due to a contractual dispute. The further details as requested can be obtained from the Free State Department of Human Settlements subject to the provisions of the Promotion of Access To Information Act.

Reply:

The Department of Basic Education (DBE) does not collect or collate this information. The Honourable member is requested to direct the question to the relevant province as such may be in their possession.

Reply:

The Department of Basic Education does not collect these data. The honourable member is advised to direct the question to the province.

Reply:

The Department of Basic Education does not collect these data. The honourable member is advised to direct the question to the province.

Reply:

The Department of Basic Education does not collect these data. The honourable member is advised to direct the question to the province.

 

Reply:

a)

(i)  According to the NEIMS Database, all schools have been provided with some form of infrastructure for water provision in a form of borehole, rainwater harvesting, water tanks, and communal supply or through municipal yard supply. Where a borehole or rainwater harvesting tanks have dried up, arrangements are made with municipalities to provide potable water.

(ii) All schools have been provided with some form of electricity, either through grid connection, solar, generator or other means of electricity provision. The sector is however, continuously affected by instances of theft and vandalism of solar panels and cables, which renders schools previously provided, to be without service.

b) Not applicable

Reply:

QUESTION 1

With reference to external fees,

Service providers that Armscor make use

There is a standing panel of legal firms that is utilised by Legal Services department as well the Employee Relations department. The panel was approved by EXCO and is reviewed every three years

How service providers are selected and contracted;

When the nature and the complexity of the dispute at hand warrants the appointment of a Labour Legal Expert, Employee Relations department would then recommend a service provider from the panel of approved service providers, for the approval of two Group Executives and the Chief Executive Officer. The recommendations of a service provider from the Employee Relations Department would be based on the availability, cost, experience, track record in disputes of the same nature. One of the cornerstones of fair labour practice as enshrined in both the Labour Relations Act and the Constitution is procedural fairness. Whilst each matter would be judged on its own merits Consistent application of the rule and precedence set in similar disputes is key in ensuring fairness when handling Employee Relations Disputes as result prior knowledge of the matter is some cases critical in appointing a service provider .

The Employee Relations Department is a small unit that is manned by one Specialist that specialises in labour law and looks after all the aspects of employee relations. Armscor legal department only has three commercial lawyers who focus mostly on projects and commercial contracts.

Whilst it is evident based on the summary below that majority of labour disputes are ruled in Armscor’s favour however some employees still chose to refer the matters to the labour court. Armscor would then exercise their right and oppose the matter, for example the below listed matters of employees who were dismissed for tender irregularities and the cases were ruled in Armscor’s favour by the CCMA however the employees still referred their cases to the Labour Court and Armscor opposed the matters.

Due to the nature of Armscor’s business there are cases which demand that we seek the intervention of external labour law experts .These matters involve intense investigations which deal with sensitive and secret information, they are lengthy due the evidence and voluminous documentation, for example the matter of the employee who was dismissed for being involved in espionage activities.

QUESTION 2

Details of the total legal fees related to dismissals and/or suspensions of employees for the past five years

Nature of Process	Legal Fees 2013-2018
Disciplinary Enquiry	R 1 299 932.99
CCMA	R 1 179 156.75
Labour Court	R 9  565 097 .10
Labour Appeal Court	R 770 000.65
TOTAL	R 10 214 321.51

Dismissal cases for the past five years

In the past five years Armscor has had an average of 5.8 dismissal cases per annum based on the following categories of misconduct. It is worth noting however that some employees resigned before their cases could be concluded and are thus not part of the below statistics. The Occupational Categories of the dismissed employees are as follows

Semi-skilled 8

Professionally Qualified 5

Unskilled 11

Skilled and Technical 2

Senior Management 1

Area	Number of Cases	Nature of the offence	CCMA Outcome	Labour Court Outcome
Armscor Head Office ( Pretoria)	1	Gross Misconduct -Theft	No referral	No referral
	1	Gross Misconduct - Attempting to solicit a bribe from a supplier	CCMA ruled in favour of Armscor	No Referral
	1	Poor work performance	No referral	No referral
	1	Misconduct -Unauthorised use of Company Property	No referral	No referral
	3	Gross Misconduct -Tender Irregularities	In one matter the CCMA ruled in favour of employee.	Armscor has applied for review and the matter at Labour Court
			The second matter the CCMA ruled in favour of Armscor	No referral
			Third matter CCMA ruled in favour of Armscor	Labour Court ruled in favour of Armscor
	1	Misconduct -Misuse of Company Vehicle	CCMA ruled in favour of Armscor	No Referral
	1	Gross Misconduct – Breach of Security	CCMA ruled in favour of Armscor	Labour Court ruled in favour of Armscor
	1	Misconduct – Loss of Security Clearance	CCMA had no Jurisdiction	Labour Court ruled in favour of Armscor
Dockyard -Capetown	1	Gross Misconduct -Fraud	No referral	No referral
	7	Misconduct – Desertion	No referral	No referral
	4	Theft	No referral	No referral
	1	Misconduct – Failure to Maintain Security Clearance due to a Criminal Record	No referral	No referral
	1	Constructive Dismissal	Matter is with CCMA	No referral
Alkantpan	4	Misconduct -Theft	No referral	No referral
	1	Misconduct -Misuse of Company Vehicle	CCMA ruled in favour of employee	Parties Reached Settlement
	2	Misconduct -Desertion	No referral	No referral
IMT - Capetown	1	Gross Misconduct –Insolence, using foul language and verbally abusing his manager	CCMA referral was withdrawn by applicant	No Referral

QUESTION 3

Cases of dismissal and/or suspension that have not been concluded

There are two cases that are pending. One employee resigned in 2018 October and then proceeded to file a constructive dismissal dispute. The second matter is that of an employee who is on suspension since March 2018 and the disciplinary enquiry is scheduled for the 9 March 2018

Date when the disputes arose

The employee was placed on precautionary suspension on the 7 March 2018

The employee resigned on the 28 October 2018

Reasons that each case has not been concluded

In respect of the employee that resigned in October the case is part heard by the CCMA and the next arbitration date is the 15 May 2018. In respect of the employee who is on suspension the disciplinary enquiry is scheduled to resume on 9 May 2018.

Reply:

665 Response: Armscor implemented an efficient structure in order to respond to the objective of the Armscor Act, respond to the demands of the Department of Defence, to be cost-effective and to achieve its Turnaround Strategy. A benchmarking study with similar organisations and state owned enterprises such as Council for Scientific and Industrial Research (CSIR), South African Nuclear Energy Corporation (NECSA) was undertaken.

The restructuring of the executive management took into consideration the delegation and accountability by streamlining and strengthening the executive decision-making to create fewer executive committee members with broader spans of control. Price Waterhouse Coopers (PWC) benchmarked the recommended remuneration and approval by the Board of Directors was obtained. No budgets were increased to fund new salaries and market benchmarks placed the salaries at the lower pay scale quartile which is below midpoint for executive management.

New Response: The old structure had limited capacity to respond to the demands of the DOD as well as the new business endeavours for revenue generation as per the Turnaround Strategy whilst providing effective and efficient service to the DOD.

QUESTION 2

Will she provide a (i) detailed comparison between the old and the new structure, (ii) list of the demands and indicate if the demands are new or additional demands and (iii) detailed list of the new demands and (b) how will the new demands benefit Armscor and her department;

RESPONSE

Figure 1: Old Structure

Figure 2: New Structure

The new structure provides for a wider span of control, leaner executive body to drive quick decision-making across the organisation, broader scope of services and devolution of authority. This has assisted in removing fragmentation and duplication of activities across the organisation. This has resulted in clear reporting lines and clear single person accountability thus expediting operational execution. This allows for a more focused organisation in delivering to its demands of the DOD and its new commercial imperatives. The new commercial imperatives relate to the strategic objectives of the Turnaround which are revenue generation, cost savings, efficient and efficient delivery and stakeholder engagement.

QUESTION 3

With reference to each general manager and chief executive officer (CEO) in the new structure, what (a) additional responsibilities were added to the job description of each, (b) were the percentage increases, (c) are the details of the previous total cost-to-company and current total cost-to-company remuneration packages paid to each and (d) were the last performance bonuses paid to each general manager and the CEO?

RESPONSE

The new structure entailed more responsibilities per Group Executive, combination of similar functions and centralising of the Supply Chain Management with the Acquisition function in order to ensure strategic sourcing and smart buying. The new executives who received promotions were benchmarked against the market and capped at 37.5th percentile of the market which is the lower quartile. Given the fact that the Board took a decision not to extend normal annual increase inflationary adjustment to all the GE’s who were promoted as a result of the restructuring, the real increase for the GE level amounted to 13% (factoring 0% annual increase). All new executives’ performance bonuses were capped at maximum of 8% for the last financial year. This equates to an extra months’ salary.

Reply:

1. South African citizens that leave the borders of the Republic do not register their purpose to emigrate hence there is no formal record by the department of South Africans emigrating to above countries.

There is no provision in legislation that compel the South African citizen to do so; Furthermore there is no reason to do so as South Africa permits dual citizenship. The only instance the department keeps these records, is when South African citizens are compelled by countries not permitting dual citizenship, to renounce their citizenship, moreover the information in this regard would not necessarily provide an adequate response to the question raised.

The Honourable Member may refer this question to Department of International Relations and Cooperation (DIRCO) for information of South Africans residing in these countries as some foreign missions ordinarily keep such records.

2. No.

Reply:

• There is no plan by the National Treasury (NT) to speed up the transfer of ownership to 1 million households, per se. The Budget Review (Chapter 6, pg 73) refers to a backlog of around 1 million subsidised homes, which still need to be registered for title deeds, which is estimated at around R180 billion in equity.

• However, there is a programme to ‘eradicate’ the title deeds backlog. This is led, undertaken and overseen by the national Department of Human Settlements (DHS).

• DHS approached NT to create a separate Title Deeds Restoration Grant (TRG).

• Through the 2018 Budget process, and after obtaining Cabinet approval, NT created the TRG, amounting to R518.7 million in 2018/19, R547.7 million in 2019/20 and R577.8 million in 2020/21.

• Further details on the programme elements, monitoring and evaluation, must be referred to the DHS.

Reply:

• There is no plan by the National Treasury (NT) to unlock R180 billion in dead assets, per se. The Budget Review (Chapter 6, pg 73) refers to a backlog of around 1 million subsidised homes, which still need to be registered for title deeds, which is estimated at around R180 billion in equity.

• However, there is a programme to ‘eradicate’ the title deeds backlog. This is led, undertaken and overseen by the national Department of Human Settlements (DHS).

• DHS approached NT to create a separate Title Deeds Restoration Grant (TRG).

• Through the 2018 Budget process, and after obtaining Cabinet approval, NT created the TRG, amounting to R518.7 million in 2018/19, R547.7 million in 2019/20 and R577.8 million in 2020/21.

• Further details on the programme elements, monitoring and evaluation, must be referred to the DHS.

Reply:

The Minister of Finance had not previously seen the correspondence referred to but as a result of the parliamentary question has become aware.

The Minister notes that it raises a number of issues regarding the manner in which the Internal Audit function is managed. It is also clear in the letter that the internal audit staff have correctly escalated their concerns to the Accounting Officer, Audit Committee and the Executive Authority of the Department of Defence. These are the appropriate authorities to address their concerns. It is Minister’s humble representation that the leadership of the Department of Defence should respond to this parliamentary question, considering that:

The Accounting officer of the department is responsible per s38 (1) of the PFMA to establish and maintain an effective internal audit function, and to appoint an audit committee to control and direct the internal audit function.

Notwithstanding the aforementioned, the Minister further notes that the grievances were raised in September 2016 and that the staff are understandably anxious for answers. The National Treasury will consult the leadership of the Department of Defence to determine if and how assistance can be offered to speed up the resolutions to the problems that the staff have raised.

Reply:

a) The additional R57 billion allocated to the post-school education and training sector in the 2018 Budget was not only for the phasing of fee-free higher education and training for students from households with an income of less than R350 000; the additional allocation also covers increasing subsidies to universities and Technical and Vocational Education and Training (TVET) colleges. This funding requirement was calculated based on certain assumptions about, amongst others, the rising full cost of study over the years and the number of students from households with an income of less than R350 000 that enrol in public universities and TVET colleges.

The National Treasury will use the actual data collected by Department of Higher Education and Training in the 2018 academic year on university, TVET college, and National Student Financial Aid Scheme applications, to verify the assumptions used. This actual data is expected later in the year. The question of whether the additional funding allocated is sufficient can therefore only be accurately addressed once this actual data has been collated and analysed.

b) Assumptions used for costing the phasing-in of fee-free higher education and training over the next five years are the following:

▪ The estimated number of university first-time entrants in the 2018 academic year is 208 308. The number of TVET college full-time equivalent students is estimated at 338 437 in the 2018 academic year.
▪ 40 per cent of the undergraduate university population and all (100 per cent) the full-time equivalent students at TVET colleges fall within the R350 000 household income threshold.

▪ The average full cost of study at public universities is estimated at R76 000 for the 2018 academic year. The average full cost of study at public TVET colleges for the 2018 academic year is estimated at R69 000 for the National Certificate Vocational (NVC) qualification, and R66 000 for the Report 191/NATED qualification.

(c) (i) The total intake of university first-time entrants in the 2018 academic year is estimated at 08 308 students, of which the 40 per cent qualifying in their first year of study in 2018 is 83 323. The assumed annual enrolment rate for first-time entrants at universities is 3.5 per cent over the 2018 medium term expenditure framework period (2018/19 – 2020/21).

At TVET colleges, the estimated intake of qualifying full-time equivalent (FTE) students in the 2018 academic year is 338 437. The assumed annual enrolment rate for FTE students at TVET colleges is 1.9 per cent over the 2018 medium term expenditure framework period (2018/19 – 2020/21).

ii) The new students that will benefit from this new bursary scheme as from the 2018 academic year will be funded for n+1 years to complete their undergraduate qualification; meaning that a single additional year to the regulation period of a qualification will be funded. Important to note however, is that the returning National Student Financial Aid Scheme (NSFAS) students in 2018 will still be funded for n+2 years, in line with their agreements for NSFAS loans and bursaries signed in previous years under the general NSFAS rules.

(iii) An average cost per student was used, pending actual data to be collected from the 2018 student cohort later in the year. The average full cost of study at public universities is estimated at R76 000 for the 2018 academic year. The average full cost of study at public TVET colleges for the 2018 academic year is estimated at R69 000 for the National Certificate Vocational (NVC) qualification, and R66 000 for the Report 191/NATED qualification.

(iv) (aa) and (bb)
The actual breakdown of the cost per student for the 2018 academic year is not yet available. Determination of the actual full cost of study per student contains a number of factors. The actual costs of tuition vary according to specific fields of study and programmes that students register for (e.g. engineering, art, medicine, history); and vary according to the specific institution attended. Actual costs for the qualifying students that will stay in private accredited accommodation versus those that receive a travel allowance will differ significantly. The prescribed learning materials also vary in line with the actual courses taken. For example, a student that enrols for a fine art qualification may require paint/brushes/canvasses, while a graphics design student may require a laptop with a specific software package. Work is underway by the Department of Higher Education and Training, universities, TVET colleges, and National Student Financial Aid Scheme, to collect and verify these actual costs.

Reply:

a) GCIS does not have the data for those department which do not use its Media Buying service. Below we provide the breakdown of the media houses that were used through the GCIS Media Buying Services. see the link:

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW1118Supplier_Report.pdf

 

Reply:

a) The project is at the Environmental Impact Assessment (EIA) Phase. Public participation was undertaken and the Final Scoping Report was submitted to Department of Environmental Affairs in April 2018.

(b)(i) Construction is scheduled to start in January 2020.

(b)(ii) Water delivery is scheduled for January 2024. After construction, there is a Defects Notification Period of one year, and servitude rehabilitation of 2 years, and project close out is scheduled for May 2027

c) An open tender procurement process will be undertaken where the successful contractor will be responsible for construction.

The estimated cost is R 12.1 billion.

Reply:

(a)(i) The required qualification for the Deputy Director: Risk Management is a 3 year relevant Tertiary qualification in Risk Management/Financial Management or Equivalent qualification.

(a)(ii) The specified person has equivalent qualification and the requisite functional and management experience required as specified in the advertisement

(b) The person was appointed because he met the requirements of the position as specified in the advertisement

Reply:

The below tables provides requested information:

MEDIA RELATED EXPENDITURE
2014/15	2015/16	2016/17
5,966,109.62	3,924,889.69	1,887,714.51

CONSULTANCY, BUSINESS AND ADVISORY SERVICES
2014/15	2015/16	2016/17
2,097,961.31	2,348,450.47	83,781.98

Reply:

(a) Site establishment activities for the Raising of Clanwilliam Dam project commenced in June 2014 and were completed in September 2016. Our Department has utilised its internal Construction Unit for the completion of the necessary site establishment activities. The bid for the appointment of a private sector construction contractor was issued on 26 August 2016 and closed on 9 November 2016. However, due to unavailability of funds for the construction phase of the project the tender bid could not be awarded.

(b)(i) The Minister has ordered a budget reprioritization to accommodate construction start this financial year.

(b)(ii) The Minister has instructed that construction should start within five (5) months from May 2018.

(c) The Minister does not want to speculate on completion day. The construction unit of the Department will spearhead the construction.

(d) The estimated construction cost for the Clanwilliam Dam Raising only, is R2 200 million (2016).

Reply:

Department of Labour
(b)(i)	(b)(ii)	(b)(iii)(aa)	(b)(iii)(bb)	(b)(iii)(cc)	(b)(iii)(dd)
ERNST AND YOUNG ADVISORY SERVICES	RESEARCH ON RME AGENDA PROJECTS	01/02/2018	1 year	R 3 355 374.54	Ms Tendani Ramulongo - Director: Research, Policy and Planning Unit
TRI DEV WORKS AFP	RESEARCH ON RME AGENDA PROJECTS	01/02/2018	1 year	R 1 346 112	Ms Tendani Ramulongo - Director: Research, Policy and Planning Unit
DATACENTRIX	Procurement of PL/SQL and Quality Assurance/Testing Resources and Services	01/06/2017	6 months	R 4 156 771.97	Samuel Morotoba (Acting-Director-General)
Dimension Data	SAP Maintenance and Support	01/10/2014	4 years	R 63 876 807.53	Thobile Lamati (Director-General)
CCMA
IE Communications	Annual Report, Editing, Layout and Printing	01/07/2017	3 years	615 898.12	Cameron Morajane (Director)
Tourvest Holdings (Pty) Ltd	Travel Management Services	01/10/2017	3 years	1 019 242.08	Cameron Morajane (Director)
Ebus-Tech Consulting	Panel of Recruitment Agencies	01/01/2018	2 years	As & when Service is rendered	Cameron Morajane (Director)
Human Commutations	Panel of Recruitment Agencies	01/01/2018	1 year	As & when Service is rendered	Cameron Morajane (Director)
Wozani Recruitment Agency	Panel of Recruitment Agencies	01/10/2017	3 years	As & when Service is rendered	Cameron Morajane (Director)
Kudsiya Cassim & Associates cc trading as the Renaissance Network	Mid-Term Impact Assessment of the Organisational Strategy	01/11/2017	Once off Project	1 231 200.00	Cameron Morajane (Director)
Careways Wellness (Pty) Ltd	Psychologist/Employee Wellness	01/12/2017	1 year	384 708.28	Phetsile Magagula (CFO)
Ngubane & Co (Johannesburg) Inc	Corporate Governance Audit Services	03/01/2018	6 months	251 942.04	Phetsile Magagula (CFO)
Continuity SA (Pty) Ltd	Business Continuity Management Services	01/05/2018	7 months	474 958.00	Bridgette Mbolekwa (Acting CFO)
UIF
True South  Actuaries	Actuarial Services	15/05/2017	3 years	R2 485 529.00	Francois Hugo (Executive Manager)
Nexus Lexus	Forensic Investigation Services	09/06/2016	3 years	R36 042 628.00	Mary-Anne Whittles (Director)
IAC	Investment Advisory Services	17/07/2017	3 years	R2 784 974.00	Asim Gani (Managing Director)
SizweNtsaluboGobodo	Internal Audit Services	12/02/2018	3 years	R 7 771 245.12	Patrick Ganesan (Director)
SAB&T	Grap Standards Services	29/05/2017	28/05/2020	R1 020 793.00
COMPENSATION FUND
Skynet (RT5-2013)	Courier Service	01/02/2016 01/06/2016 01/10/2016	4 months 3 months 3 years	as per egreed tariffs	Commissioner V Mafata
Interfile	Internet filling	01/03/2014 28/08/2017	3 years 1 year	29959590.00 46247914.45	Director General
Delta Facilities Management	Cleaning Services	01/01/2016	2 years	4 003 005.95	Commissioner V Mafata
C-Track Mzansi	Tracking of Funds vehicles	06/06/2016	3 years	184 529.52	Commissioner V Mafata
Sysman Public Saftey System	Remrad System	01/03/2017 01/03/2018	1 year 1 year	15408.24 16397.76	Commissioner V Mafata
Phamacy Direct	Distribution of chronic medication to COIDA patients	27/09/2016	3 years	R17.20 medication charged at SEP & dispensing fee per line item	Commissioner V Mafata
Transunion	Pre-screening system	12/10/2016	3 years	500 000.00	Commissioner V Mafata
View Fron Solutions	car wash	22/05/2017	1 year	42 820.00	Commissioner V Mafata
Vodacom	mobile commucation network services	01/05/2017	1 year	91 577 625.00	Commissioner V Mafata
HAB flire & Security	X-Ray machine	01/10/2017	3 years	80 850.35	Commissioner V Mafata
HISSCO	X-Ray machine	01/10/2017	3 years	644 392.36	Commissioner V Mafata
Lothlorein Recyling	Recyling of waste paper services	29/11/2017	2 years	payment per kg	Commissioner V Mafata
Uni-life	plumbing services	20/11/2017	4 months	90 135.66	Commissioner V Mafata
Cardura Trading Enterprise	Private security	08/12/2017	6 months	469 500.00	Commissioner V Mafata
Travil with Flair	travel and accommodation	11/01/2018	3 years	343 656.30	Commissioner V Mafata
Medikredit	nappi file	01/03/2017	3 years	1 491 735.90	Commissioner V Mafata
Linhleko Marketing	printing services	19/03/2018	3 years	as per bill of quantity	Commissioner V Mafata
DPW	RENTAL OF INCOME Bisho building	01/05/2014	4 years	5 276 199.32	Director General
First Property Trust	Taaljaartpark properties	01/10/2015	2 years	7 881 677.04	Commissioner V Mafata
Vuani Property (JHI)(Kuperlengh property management	Benstra lease	01/04/2014 01/04/2017	3 years 6 months	992 886.24	Commissioner V Mafata
(Travalgar -new management		01/10/2017	1 year	1 155 078.84	Commissioner V Mafata
Konika Minolta	6 photocopies	01/10/2015	3 years	1 990 237.10	Commissioner V Mafata
Konika Minolta	12 photocopier Machines	03/10/2016	3 years	1 188 743.04	Commissioner V Mafata
Konika Minolta	48 photocopier Machines	01/06/2017	3 years	5 027 433.12	Commissioner V Mafata
Rand Mutual Assurance	Support & maintenance of RMA Claim processing system	01/08/2014 01/08/2015 15/12/2016	1 year 15 months 1 year	11310750.00 11310750.00 90840874.50	Director General
Delta Heights	Leasing of Building	01/09/2017	3 years	2017104.60 ( @ escalation of 7.5 per year	Director General
Nashua Communications	Install contract centre system and maintenance	01/06/2017	3 years	1 094 681.79	Commissioner V Mafata
KPMG Services	Fraud Prevention and Detection Services - RFQ 9 2015/16	23-Mar-16	8 months	1 282 849.00	Commisioner V Mafata
	Extention no 1	22-Oct-16	6 months
	Extention no 2	22-Apr-17	7 months
	Extention no 3	N/A	N/A	45 600.00	Commisioner V Mafata
	Extention no 4	20-Nov-17	6 Months
PWC / LIGWA	Limited Forensic Investigation services - RFQ 15 2015/16	09-May-16	08-Sep-16	980 913.00	Commisioner V Mafata
	Extention no 1	09-Sep-16	07-Mar-17
	Extention no 2	08-Mar-17	07-Aug-17
	Extention no 3	08-Aug-17	07-Aug-18
Grant Thornton	Advisory to provide Litigation support services	23-Jun-16	12 Months or completion of litigation	396 460.00	Commisioner V Mafata
Kago Solutions Advisory	Assist with year end process and financial statements - TCF 11 2015/16	20-Sep-16	1 year	20 458 029.60	Director-General
Deloitte and Touche	Enterprise wide risk management - TCF 2 2016/17	20-Feb-17	1 year	25 372 543.00	Director-General
QED Actuaries and Consultants	Actuarial services - TCF 04 2016/17	29-Mar-17	3 years	5 024 760.00	Commisioner V Mafata
Consumer Profile Bureau	Tracing of beneficiaries	01-Jun-17	1 year	R19 per trace limited to R5000000	Commisioner V Mafata
Nexus Forensic and UIF	Forensic Services	29-May-17	1 year	R4 947 212.24 R742 081.83	Commisioner V Mafata
Selekane Asset consultant	Investment Advisory services - TCF 05 2016/17	12-Jun-17	3 years	Not exceeding R7million	Commisioner V Mafata
Dimension Data (Participation of a DOL ICT Contract)	SAP Service	18 November 2014 (original contract)	3 years	11 824 060.39	Director-General
	Additional SAP Service
	SAP Legal Case Management System			10 388 009.24
	MSO and Bank Reconciliation
NEDLAC
Phuthumani IT Solutions	Support services for the Sage evolution system	01-Jan-18	2 years	Rate based contract. Depending on usage (annual average = R75 000)	Mododa Vilakazi: Executive Director
Outsourced Risk and compliance Assessment (ORCA)	Internal Audit Services	01-Apr-18	3 years	1 183 824.00	Mododa Vilakazi: Executive Director
PRODUCTIVITY SA
None	None	None	None	None	None

Reply:

(1)(a) Yes, our Department has a Sexual Harassment Policy in place.

(1)(b) Falls away.

(a)(b)(i) The allegations are investigated by an Employee Relations Officer, who after completing the investigation, writes a report. The decision to take or not to take disciplinary action is based upon the recommendations of the investigation report.

(a)(b)(ii) Our Department implements recommended sanctions according to the Departmental Labour Relations Policy and Labour Relations Sanctioning Guidelines for the Public Service; the Policy and guidelines stipulate sanctions that include verbal and written warnings, suspension without pay and a dismissal depending on the nature and circumstances of the case.

(2)(a) Three (3) incidents were reported in the past three financial years. During the 2015/16 there were no reports; during the 2016/17 one (1) incident was reported; and, during 2017/18 two (2) incidents were reported.

(2)(b) Three (3) cases were opened; and, were all concluded. Out of the three (3) two (2) were withdrawn.

(c) In the one case that was not withdrawn, the Chairperson found the alleged perpetrator not guilty of sexual harassment.

Reply:

1. GCIS has a SCM Policy

GCIS has an approved supply chain management procurement policy that governs all procurement that is handled within the department. All procurement, be it advertising, communication, consultancy, business and advisory services are handled through this policy with is aligned with the Treasury Regulations on Supply Chain Management.

(2) GCIS does not keep records of the media related expenditures of national government department and SOE’s. GCIS can only provide records for its own expenditure and for those government departments and state owned entities that utilise the GCIS media buying service.

(3) GCIS does not have records of the amounts spent by national government and SOE’s expenditures. GCIS can only provide records for its own expenditure and for those government departments and state owned entities that utilise the GCIS media buying service.

Reply:

1. South African citizens that leave the borders of the Republic do not register their purpose to emigrate hence there is no formal record by the department of South Africans emigrating to above countries.

There is no provision in legislation that compel the South African citizen to do so; Furthermore there is no reason to do so as South Africa permits dual citizenship. The only instance the department keeps these records, is when South African citizens are compelled by countries not permitting dual citizenship, to renounce their citizenship, moreover the information in this regard would not necessarily provide an adequate response to the question raised.

The Honourable Member may refer this question to Department of International Relations and Cooperation (DIRCO) for information of South Africans residing in these countries as some foreign missions ordinarily keep such records.

2. No.