Questions and Replies

Reply:

Lenders imposed terms and conditions on SAA as per normal Loan market standards. This practice is not unique to SAA and applies to all companies both public and private and across all markets including RSA, Europe and USA to name a few. The following terms and conditions are contained in SAA loan agreements and the Airline has complied and continues to comply with each of those conditions.

	Financial Covenants	Complied with (Y/N)	Non-Financial Covenants	Complied with (Y/N)
Project Phoenix Loans	1. Non-payment SAA does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable	Y	1. Illegality / unlawfulness It is or becomes unlawful for SAA or the Guarantor to perform any of its obligations under the Finance Documents	Y
	2. Maintenance of insurance on assets SAA maintains insurances with insurance companies to such an extent and against such risks as companies engaged in similar business normally insure.	Y	2. Change of control SAA’s reporting lines change from the current reporting line, being National Treasury and the Minister of Finance, to another party.	Y
	3. Negative pledge SAA shall not unless otherwise agreed to in writing by the Lenders, create permit to subsist any Security over any of its assets.	Y	3. Misrepresentation Any representation or statement made or deemed to be made by SAA or the Guarantor in the Finance Documents or any other document delivered by or on behalf of SAA or the Guarantor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.	Y
	4. Disposals SAA will not enter into a single transaction or a series of transactions and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.	Y	4.Audit qualification The Auditors of SAA qualify the audited annual consolidated financial statements of SAA or any of its Affiliates.	Y
	5.Taxes SAA will maintain its status as a statutory body established in accordance with laws of South Africa and will maintain its tax residence in South Africa and ensure that it is not resident or liable to tax in any other jurisdiction.	Y	5. Government Guarantee The guarantee ceases to be legal, valid, binding and enforceable or otherwise ceases to be effective.	Y
	6. Merger SAA shall not, unless otherwise agreed to by the Lenders in writing, enter into any joint venture, amalgamation, demerger or corporate reconstruction.	Y	6. No breaching of laws SAA has not breached any law or regulation which breach has or might reasonably be expected to have a Material Adverse Effect.	Y
	7. Acquisition SAA shall not unless otherwise agreed to by the Lenders in writing, acquire or subscribe for shares or other ownership interest in or securities of any company or other person, or acquire any business, assets or incorporate any company or other person.	Y	7. Material adverse effect No material adverse effect has occurred.	Y
	8. Cross default Any financial indebtedness of SAA which is not paid due nor within any originally applicable grace period, or declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default, or cancelled or suspended by a creditor of SAA which as a result of an event of default.	Y	8. Constitutional documents SAA will ensure that no change is made to its constitutional documents without prior written consent of the Lenders where such change has or is reasonably likely to have a Material Adverse Effect.	Y
		Y	9. Sanctions SAA and to the best of knowledge of SAA having made due and careful enquiry, its Affiliates, are not Sanctioned Entities, to the extent applicable, or have not participated in a Sanctioned Transaction or have not contravened and Sanctions or are not targeted under any Sanctions.	Y
		Y	10. Compliance to anti-corruption laws SAA to the best knowledge of SAA having made due and careful enquiry, and each of its Affiliates, has conducted its businesses in compliance with Applicable Anti-Bribery Law and has instituted and maintains policies and procedures designed to promote and achieve compliance with such laws.	Y
			11. Change of business SAA shall procure that no substantial change is made to the general nature of the business of SAA from that carried on at the signature date.	Y
			12. Financial year end SAA shall not change its Accounting Reference Date.	Y
			13. Change in Auditors SAA may only replace its Auditors with the prior approval of the Lenders, such approval not to be unreasonably withheld or delayed.	Y
			14. Expropriation The authority or ability of any affiliate of SAA to conduct its business is wholly or substantially curtailed by any seizure, expropriation, nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person.	Y

Reply:

SAA was issued with two government guarantees in the past three financial years; R6.88 billion on 22 December 2014 to sign off and approve the 2013/14 Annual Financial Statements (AFS) and R4.72 billion on 08 September 2016 to sign off and approve the 2014/15 and 2015/16 AFS. Table 1 below highlights the conditions attached to each of these two government guarantees issued and the progress made by SAA on each condition.

Legend:

Condition complied with
Condition partially complied with
Condition not complied with

Table 1: SAA Guarantee Conditions

Conditions related to the R6.88 billion guarantee issued on 22 December 2014
Within 1 month, SAA to provide a comprehensive implementation plan for the 90 Day action plan interventions outlining the milestones and timelines for delivering the targeted savings and responsible person.	SAA submitted the 90 Day Action plan implementation dashboard.
SAA together with the Government will review and stress test the financial model and refined LTTS.	SAA provided a financial model which was stress tested by government and the airline.
Within 3 months, SAA to develop proposals on the network structure, fleet strategy and structure of the airline for consideration by Government.	SAA appointed InterVistas to assist the airline in developing a new Network and Fleet Plan which was considered by government.
Within 3 months, SAA to identify areas where it intends reducing operational costs and develop implementation plans to reduce such costs	SAA identified cost compression initiatives and developed an implementation plan.
Within 3 months, SAA to strengthen its governance, internal controls and working capital management, develop an implementation plan in this regard and provide monthly progress reports to government.	SAA has indicated that it has strengthened its governance and has included a detailed summary in the 90 Day Action Plan report. No monthly progress is given in this regard.
SAA to provide weekly reports to NT on its utilisation, cash position and daily cash forecasts.	SAA provides weekly reports of its daily cash forecast and utilisation thereof.
Conditions related to the R4.72 billion guarantee issued on 08 September 2016
The primary focus of the Board must be to return the airline to financial sustainability.	This condition has been included in SAA’s 2016/17 Shareholder compact The SAA Board has finalised its five year Corporate Plan, which represents the airline’s turnaround strategy.
SAA's strategy must be strengthened and alignment with other state owned airlines ensured.	The SAA Board has reviewed and revalidated the airline’s strategy which forms part of the approved turnaround strategy and informs the 5 year Corporate Plan. The next step is aligning the strategy with other State Owned Airlines.
SAA must implement more aggressive cost cutting initiatives as recommended by the Aviation expert (Deloitte) in areas of fuel, aircraft ownership, labour, maintenance, repair and overhaul and procurement.	Initiatives identified by Deloitte have not been implemented. However, Seabury has identified additional cost compression initiatives in SAA’s 5 year Corporate Plan.
The network fleet plan must be refined based on a sound business case so that the airline takes advantage of opportunities to scale back the operations of the airline to focus only on operating routes which positively contribute to the profitability of the airline, closes routes that have been making losses for longer than one year, and ensures that the network plan is aligned with other state owned airlines.	The SAA Board has reviewed and revalidated the airline’s strategy which forms part of the approved turnaround plan strategy and informs the 5 year Corporate. The next step is for SAA to close routes that have been loss making for more than a year and aligning the network plan with other State Owned Airlines.
The airline's strategy must better differentiate the airline, enabling it to continue to compete effectively, inter alia through addressing customer value proposition.	The SAA Board has reviewed and revalidated the airline’s strategy which forms part of the approved turnaround strategy and informs the 5 year Corporate Plan. NT is in the process of assessing SAA’s turnaround strategy and 5 year Corporate Plan to determine whether the airline has addressed this condition.
The airline must work with National Treasury (NT) and the Department of Public Enterprises (DPE) in giving consideration to the possible merger of SAA with South African Express (SAX) airlines and the potential introduction of a strategic equity partner.	SAA has availed itself and its subsidiaries to work with the consultant, Bain and Company SA. SAA officials availed themselves in engaging with DPE and NT officials on a regular basis during the time that Bain and Company SA was conducting the Study.
The Board is required to appoint a permanent Chief Executive Officer (CEO), Chief Financial Officer (CFO) and other key executives in consultation with the Minister of Finance.	In progress. The CFO has been appointed. Candidates for the CEO position have been shortlisted. It is anticipated that after the CEO is appointed then he/she will then fill other key executive positions.
Funding must be secured to meet the airline's liquidity requirements.	SAA has secured funding for its liquidity requirements and is in the process of refinancing.
The Board is required to ensure that the AFS for both 2014/15 and 2015/16 are finalized.	SAA’s 2014/15 and 2015/16 AFS have been finalised and tabled in parliament.
SAA is required to report progress on a weekly basis to NT until such a time that the Minister of Finance determines.	NT and SAA convene weekly monitoring meetings.
SAA must share all media communication with the Minister of Finance or his designated representative prior to the issuance of media communication and only communicate on issues that require shareholder approval where approval has been obtained from the Minister of Finance to do so.	This matter is dependent on media communication by SAA. Currently, NT is not aware of any non-adherence to this condition.

Source: National Treasury

Reply:

1.In the period the Commissioner has been employed with SARS, there is no record of the said GE.

2.SARS is unable to respond on behalf of SSA.

3. Please refer to response one (1) above.

4. SARS employees are employed in the capacity for which they are contracted for.

Reply:

The FIC refers information in its possession for investigation to law enforcement agencies pursuant to its primary objectives and functions as defined in section 3 and 4 of the Financial Intelligence Centre Act 38 of 2001, as amended, with the aim of identifying proceeds of crime, combatting money laundering and the financing of terrorism.

The FIC does not refer cases of acts of criminality for investigation. Rather in terms of Section 40 of the Act, it refers packages of transactional and other information that present indicators of suspected criminality to be investigated by the competent authorities. It is for these authorities to determine if the transactions are indeed proceeds of crime, or may be associated with an unlawful predicate offence.

The FIC has recorded the information sought from 2012 onwards and which is set out below.

(a) Between 1 April 2012 till 31 March 2017 the FIC referred 87 matters for investigation by the competent authorities for them to determine if the transactions reported are proceeds of crime or connected to an unlawful predicate offence involving acts of corruption as defined by the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004 (PRECCA) legislation.

The FIC made the following referrals related to suspected acts of corruption and for which statistics have been kept in the financial years:

2012/2013: 9

2013/2014: 8

2014/2015: 6

2015/2016: 40

2016/2017: 24

Total: 87 referrals.

(b) The FIC does not have information available regarding which of these matters have been investigated by the competent authorities or have resulted in a conviction.

Reply:

1.I have never had formal meetings with them.

2. No, I have declared all gifts I have received since my appointment as Member of Parliament and Member of the National Executive.

3. No statement will be made.

Reply:

No. Government has not investigated the possibility of using the Government Employees’ Pension Fund (GEPF) through the Public Investment Corporation (PIC) as a possible public entity partner for SA Airways (SAA) as one option in Government’s review of SAA’s long term turnaround strategy.

The Minister of Finance announced in the Budget Speech on 24 February 2016 that he, together with the Minister of Public Enterprises had “agreed to explore the possible merger of South African Airways and South African Express, under a strengthened board, with a view to engaging a potential minority equity partner, and to create a bigger and more operationally efficient airline”. The Study undertaken by Bain and Abacus in this regard has been completed and the next steps are for the National Treasury and the Department of Public Enterprises to review the options and recommendations to allow an informed decision to be taken on how to proceed.

The PIC does not hold equity investments in State Owned Companies (SOCs). However, the PIC, on behalf of its clients, does hold a substantial amount of bonds of various SOCs. A significant portion of the PIC's bond-holdings in SOCs is government guaranteed. Importantly, SOCs have never defaulted on any of the PIC's bond investments. The PIC undertakes all investment decisions in the best interest of its pensioners and clients and in line with client mandate requirements and the investment risk parameters stipulated by client mandates. The continued support of SOCs by PIC will be underpinned by these mandate requirements. Moreover, all investments are also subject to a robust due diligence process which includes a credit analysis, Environmental, Social and Governance report as well as risk and legal reports.

The aim of the PIC remains to safeguard pensions of public servants and ensure that reasonable returns are generated for contributors.

Reply:

The Financial Intelligence Centre refers information (financial intelligence) for investigation to law enforcement (SAPS), the tax authority, security services and regulators on an ongoing basis as part of the FICs regular function as envisaged in section 40 of the Financial Intelligence Centre Act 38 of 2001, as amended.

The FIC provides statistical information about its referrals in each of its Annual Reports.

Since the commencement of the 2011/2012 financial year until 31 March 2017 the FIC referred at least 5,230 financial intelligence reports to various bodies as defined in section 40 (1) of the FIC Act for investigation.

Of the 5,230 referrals stated above, 733 were disseminated for investigation to the law enforcement authorities - i.e. the South African Police Services (SAPS), inclusive of the Directorate of Priority Crime Investigation (DPCI) and the Crime Intelligence Division (CI).

Year on year statistics are tabulated below:

Year	Total referred	To law enforcement
2011/2012	761	108
2012/2013	883	200
2013/2014	883	64
2014/2015	870	61
2015/2016	511	89
2016/2017	1,322	211
2017/2018 (April, May)	49	21
Total	5,279	754

End.

Reply:

In June 2016, the National Treasury met with various officials within the Department of Energy (DoE), the Central Energy Fund (CEF) and the Strategic Fuel Fund (SFF). This meeting was held subsequent to the National Treasury learning of the disposal of the strategic oil reserves by the SFF with a view of understanding the details of what had occurred.

Following the meeting, the SFF committed to submitting to the National Treasury all documentation relating to the disposal process. The National Treasury reviewed the documentation in order to ascertain the legality of the process followed in accordance with the Public Finance Management Act (PFMA) and the Central Energy Fund Act of 1977.

The National Treasury completed its review and reported its findings and recommendations to the former Minister of Energy in August 2016. No response has been received to date. The former Minister of Energy instituted an investigation into the stock disposal process, however, the findings of the investigation have not been reported to the National Treasury.

Reply:

a) R21 442 522.93

b) R28 313 315.54

Reply:

1.A detailed list is attached in response to (a) – (g), for all National Treasury employees as at 8 May 2017.

2. (a) Total number of persons employed as at 31 March 2017 is 1168.

(b) Total number of persons employed as at 8 May 2017, 1164. (Annexure A attached) [confidential]

Reply:

National Treasury

(a)(i) None

(a)(ii) N/A

(a)(ii)(aa) N/A

(a)(ii)(bb) N/A

(a)(ii)(cc) N/A

(a)(ii)(dd) N/A

(a)(ii)(ee) N/A

(a)(ii)(ff) N/A

 

ASB

The Accounting Standards Board has not procured any services or made any payments to the Decolonisation Foundation.

CBDA

The CBDA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

DBSA

The DBSA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

FIC

FIC has not procured any services from or made any payments to the Decolonisation Foundation.

FSB

FSB has not procured any services from or made any payments to the Decolonisation Foundation.

GEPF

GEPF did not procure any services nor made any payments to the Decolonisation Foundation and does not intend to procure any of their services in the future.

GPAA

The GPAA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

IRBA

The IRBA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

PFA

The PFA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

LAND BANK

The Land Bank has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

FAIS OMBUD

The FAIS Ombud has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

PIC

The PIC has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

SAA

The SAA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

SARS

The South African Revenue Service (SARS) has not procured services from the Decolonisation Foundation and does not have the supplier registered on its database.

SARS procures goods and services in line with its mandate in compliance with the PFMA, National Treasury Regulations, Preferential Procurement Regulations, respective National Treasury Practice Notes and guidelines as well as internal policies and procedures. The position going forward is that SARS conducts its procurement activities in line with the provisions of Section 217 of the Constitution of the Republic of South Africa. Accordingly SARS is compelled to consider and fairly evaluate any proposal received through a duly constituted procurement process from a bona fide vendor. 

SASRIA

The SASRIA has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

TAX OMBUD

The Office of the Tax Ombud has not procured any services from Decolonisation Foundation, and no payments were made to Decolonisation Foundation.

Reply:

(a)(i)(b)(c) The following four police stations are under construction in the 2017/2018 financial year:

PROVINCE	(a)(i)(b) POLICE STATIONS	(a)(i)(c) TOTAL PROJECT ALLOCATION
Eastern Cape	Qhasa	R31 680 800,00
Eastern Cape	Pholile	R30 132 867,00
Limpopo	Muyexe	R20 515 558,00
North West	Mareetsane	R31 591 029,00
TOTAL		R113 920 254,00

(a)(ii)(b)(c) The following four existing police stations are being renovated in the 2017/2018 financial year:

PROVINCE	(a)(ii)(b) POLICE STATIONS	(a)(ii)(c) TOTAL PROJECT ALLOCATION
KwaZulu-Natal	Nyoni	R12 242 359,00
Limpopo	Bandelierkop	R3 483 341,00
Western Cape	Calitzdorp	R1 200 000,00
Western Cape	Leeu Gamka	R2 940 000,00
TOTAL		R19 865 700,00

(d) The location of all projects, is determined by Provincial Commissioners and confirmed by the National Management Forum. The criteria is based on factors such as crime trends, operational needs, etc.

 

Reply:

With reference to question 213:

With reference to English First Additional Language Paper 3 of the 2016 National Senior Certificate (NSC) examinations, were Umalusi moderators instructed that the word count requirement in the essay question be ignored; if so, (a) why was this instruction given and (b) which official gave this instruction to the moderators?

Within a legislative framework, no official could instruct Umalusi moderators to ignore examination and curriculum policy. During the marking guideline discussion, Umalusi’s moderators serve as the ultimate authority in the standardisation of the marking guidelines. Therefore no instruction was given.

However, during the marking guideline discussion of English First Additional Language Paper 3, clarity was given in terms of the required word count. The stipulated word count is 250 to 300 words. It was emphasised that in the interest of fairness and the credibility of the marking process, there has to be a common understanding of the rubric’s requirements. The rubric for the marking of the essay in Section A of the mentioned paper makes no provision that penalties should be imposed when candidates exceed the word limit of 300 words. This was pointed out to ensure that no marking officials impose unfair penalties. The word count is therefore stipulated to guide candidates on the length of the essay.

Reply:

Yes, the National Population Register, National Immigration Information Systems and HANIS (Biometrics system) are in the process of being converted to a single National Identity System (NIS). The completion of the NIS is projected to be in FY 2019/20.

Reply:

(1)(a) to (e) The response required in terms of this question, will require the Division: Protection and Security Service (PSS), to disclose protected information regarding the life of the individual. This may put her life at risk and compromise the investigation which is in progress.

2. Yes.

(2)(a) 11 May 2009.

(2)(b) It was recommended that protection be provided to the specified person.

(3)(a) Yes.

(3)(b) Protection was based on the threat and no additional protectors were allocated.

 

Reply:

No disclosures of interest in terms of Regulation 12(2) of the South African Police Service Employment Regulations of 2008 were submitted by:

(a) the National Commissioner,

(b) the Deputy National Commissioner,

(c) each of the Provincial Commissioners and

(d) any person acting in any of the above positions,

for the following financial years:

(i) 2012-13;

(ii) 2013-14;

(iii) 2014-15;

(iv) 2015-16; and

(v) 2016-17.

The disclosure of interests of all of the above-mentioned functionaries in respect of the periods under discussion were dealt with as contemplated in Regulation 12(1) of the South African Police Service Employment Regulations, 2008 and the provisions of Regulation 12(2) of such Regulations did not apply to any of them in respect of the periods under discussion.

Reply:

(a) No members of the South African Police Service (SAPS) entered the National Assembly (NA) chamber on 9 February 2017, because the NA does not form part of their deployment mandate.

(b) Not applicable.

(c) Not applicable.

(d) Not applicable.

(e) Not applicable.

Reply:

a) The total number of the South African Police Service (SAPS) members, who are currently on suspension, is 50.

(b)(i)(ii)(iii)(aa) and (bb)

No.	(ii) Rank	Date of Suspension	(iii)(aa) and (bb) Total salary paid to date
1.	Captain	2012-09-11	R1 633 228,96
2.	Captain	2012-09-11	R1 584 518,17
3.	Captain	2012-09-11	R1 545 104,50
4.	Warrant Officer	2012-09-11	R1 234 955,70
5.	Warrant Officer	2012-09-11	R866 906,84
6.	Warrant Officer	2012-09-11	R1 348 358,91
7.	Warrant Officer	2012-09-11	R1 346 799,53
8.	Warrant Officer	2012-09-11	R1 410 625,59
9.	Warrant Officer	2012-09-11	R1 166 801,04
10.	Warrant Officer	2012-09-11	R1 351 706,48
11.	Warrant Officer	2012-09-11	R1 365 550,83
12.	Warrant Officer	2012-09-11	R1 344 472,55
13.	Warrant Officer	2012-09-11	R1 381 722,30
14.	Warrant Officer	2012-09-11	R1 342 449,71
15.	Warrant Officer	2012-09-11	R1 215 676,69
16.	Warrant Officer	2012-09-11	R1 146 384,56
17.	Sergeant	2012-09-11	R1 027 741,84
18.	Sergeant	2012-09-11	R1 087 664,79
19.	Security Officer	2014-12-11	R286 449,00
20.	Constable	2015-05-16	R184 462,92
21.	Sergeant	2012-08-30	R949 219,04
22.	Warrant Officer	2012-08-30	R1 214 152,98
23.	Sergeant	2012-08-30	R947 251,88
24.	Data Typist	2017-01-22	R52 723,82
25.	Constable	2017-01-18	R49 921,31
26.	Constable	2017-02-10	R39 296,08
27.	Constable	2017-02-10	R55 330,97
28.	Constable	2017-02-10	R41 020,56
29.	Captain	2016-08-03	R267 158,25
30.	Captain	2016-04-12	R384 170,20
31.	Captain	2017-01-24	R99 627,09
32.	Constable	2017-01-17	R46 275,16
33.	Captain	2016-05-20	R379 943,19
34.	Constable	2017-02-17	R35 308,91
35.	Warrant Officer	2016-08-25	R85 570,37
36.	Captain	2016-08-15	R277 905,79
37.	Captain	2016-08-15	R104 485,05
38.	Warrant Officer	2016-08-12	R64 240,39
39.	Constable	2015-12-30	R256 683,99
40.	Captain	2016-10-19	R198 231,38
41.	Constable	2015-10-30	R332 334,38
42.	Captain	2016-10-10	R206 703,06
43.	Constable	2017-02-20	R33 087,45
44.	Constable	2017-03-23	R31 367,95
45.	Constable	2017-04-03	R13 990,07
46.	Constable	2017-04-03	R13 466,74
47.	Sergeant	2017-04-07	R13 973,95
48.	Constable	2017-04-03	R13 990,07
49.	Constable	2017-04-03	R13 466,74
50.	Admin Clerk	2017-04-07	R14 586,25

(c) Disciplinary measures have been instituted against all the members who are on suspension and their disciplinary hearings are in process. Some of the members on the list have been dismissed, however, they have appealed the sanction.

Reply:

The disclosures of interest in terms of Regulation 12(1) of the South African Police Service (SAPS) Employment Regulations of 2008 were submitted by:

(a) the National Commissioner,

(b) the Deputy National Commissioner,

(c) the Provincial Commissioners and

(d) any person acting in any of the above positions, for the following financial years:

(i) 2012-13;

(ii) 2013-14;

(iii) 2014-15;

(iv) 2015-16; and

(v) 2016-17.

However, in respect of the 2015-16 financial year, the disclosures of interest of the National Commissioner, the Deputy National Commissioner: Corporate Service Management and the Head: Corporate Communication, who were suspended and who were not allowed access to any premises of the SAPS, were not submitted. The Public Service Commission (PSC) was informed accordingly.

The relevant details in each declaration consisted of, inter alia, the following:

• Shares and other financial interests in private or public companies and other corporate entities recognised by law;
• Directorships and partnerships;
• Remunerative work performed outside the SAPS;
• Consultancies and retainer-ships;
• Sponsorships;
• Gifts and hospitality from another source than a family member; and
• Ownership and other interests in land and property, whether inside or outside the Republic.

Reply:

(a) The signing of work plans is a new service condition for principals and is embedded in the Quality Management System (QMS) for school-based educators. The QMS instrument requires all principals to develop work plans with clear targets and deliverables for their respective schools. The work plan will serve as a performance agreement that will be signed by both the principal and his/her immediate supervisor (i.e. the circuit manager). The Combined Trade Union- Autonomous Teachers Union (CTU-ATU) and the Department of Basic Education (DBE) have already signed the QMS collective agreement while SADTU still has to sign the agreement.

(b) The agreement has not been signed by SADTU. SADTU will only sign if the annual salary progression based on satisfactory performance increases from 1% to 1.5%. SADTU is using the 0.5% salary progression as a bargaining tool.

(c) The Minister of Basic Education has promulgated the revised Personnel Administrative Measures (PAM), dated 12 February 2016. The revised PAM includes the job descriptions of all educators from post level 1-4 and requires that a work-plan must be signed off between the educators and their immediate supervisors. The promulgation of the revised PAM has overtaken the impasse between the SADTU and the DBE with respect to the QMS as the job descriptions and requirement to develop work-plans are now regulated as policy and must be implemented by all principals and circuit managers in Provincial Departments of Education as part of the compliance measures as regulated in PAM. The DBE has further informed HEDCOM and CEM about the need to ensure that all school principals and circuit managers are informed about this and implement this as a compliance measure. The ELRC has also conducted training of all provinces on the revised PAM so that all principals and PED officials understand the amendments. This training has further assisted to ensure that all levels in the education system are informed of the revised measures and are able to implement it as part of compliance.

Reply:

(a)(i),(aa),(bb),(cc),(ii),(b)(i),(ii),(iii) Due to the nature and volume of information requested, the Department will collate the information and submit to Parliament by 31 July 2017.

Reply:

9a) and (b) No. There are no impediments to the export of South African meat, animal related products to the European Union (EU) relating to the failure by the country to renew its approved residue plan.

South Africa submitted the National Chemical Residue Control Programme to the EU on 11 April 2017. However, there were challenges identified during the recent audit carried out by the EU in South Africa in February 2017.

The challenges are being addressed with all relevant stakeholders and the EU is continuously being apprised of the developments. The Department is currently sourcing funding to implement a full National Chemical Residue Control Programme. Furthermore the Department and the Red Meat Industry Forum are discussing the possibility of launching a Public Private Partnership on residue monitoring. The results of the project and resultant outcomes are expected at the end of June 2017.

Reply:

DAFF

DAFF has not procured services from any public relations firm including Bell Pottinger.

PPECB

PPECB has not procured services from any public relations firm including Bell Pottinger.

OBP

OBP has not procured services from any public relations firm including Bell Pottinger.

NCERA

NCERA has not procured services from any public relations firm including Bell Pottinger.

ARC

ARC has not procured services from any public relations firm including Bell Pottinger.

NAMC

NAMC has not procured services from any public relations firm including Bell Pottinger.

MLRF

MLRF has not procured services from any public relations firm including Bell Pottinger.

Reply:

(a) INTRODUCTION

Umalusi processes for approval of results is not a tail end process. It begins with the quality assurance of several processes that culminate in a final product. Below are the processes that happen prior to the final standardisation process. The external moderators are engaged in these processes and the Assessment Standards Committee engages with the input from all these processes through qualitative input reports presented prior to the standardisation process.

1. THE PURPOSE OF THE QUALITATIVE INPUT REPORT

The qualitative input (QI) report assists the Assessment Standards Committee of Council (ASC) in their decision making process around standardisation matters per subject. It provides the committee with the history of quality assurance processes on a subject starting from the moderation of question paper(s), standardisation of the marking guidelines and ending with the process of verification of marking.

​1.1 MODERATION OF QUESTION PAPERS

The QI report provides information on the status of the question paper at the point of approval. It indicates whether the question paper(s) met the required standards by meeting the set criteria such as appropriate distribution of cognitive demands as set out in the Subject Assessment Guideline, adequate coverage of the subject content, technical aspects including the quality of diagrams and pictures used in the question papers etc.

​1.2 STANDARDISATION OF THE MARKING GUIDELINES

This part of the QI report gives details of the discussions on the marking guidelines leading to its finalisation before marking commences. Umalusi moderators play a role of an arbiter and final judge on what should be acceptable as appropriate responses, including alternate answers, to the various questions. Upon finalisation, the marking guideline is signed-off and no further changes and/or additions can be made without the consent of the relevant Umalusi moderator.

2.3 VERIFICATION OF MARKING

The verification of marking section of the QI report intends to provide information on whether marking in the various question papers was conducted in a consistent manner and confirms adherence to the marking guideline across provinces and regions. It also provides an opinion on whether marking was of quality and done accurately by checking on the allocation of marks and additions to arrive at the total mark obtained by a candidate. Umalusi has a right to request for remarking in a subject if there is enough evidence indicating that marking was done poorly and this may have unfairly advantaged or disadvantaged candidates.

(b) Yes, Umalusi will make the qualitative reports available to the PC on Basic Education.

Reply:

(1) (a) The socio-economic impact assessment (SEIAS) on the proposed National Liquor Amendment Bill, 2016 (Bill) was conducted. The Bill together with the SEIAS report will be submitted to Cabinet for introduction into Parliament.

(2) (a) The SEIAS on the final Liquor Policy was never requested for submission to NEDLAC.

(b) The SEIAS on the Bill was requested by the Business constituency, but not by the Executive Director for all NEDLAC constituencies. In order to facilitate the conclusion of the NEDLAC report, the dti sent the SEIAS report to the Executive Director for discussion at NEDLAC. A date for the meeting is still to be set.

 

 

Reply:

(a)(i)(aa)-(dd) & (ii)(aa)-(dd) Not applicable.

(b)(i)(aa)-(dd) & (ii)(aa)-(dd) Not applicable.

(c)(i)(aa) 382.

(i)(bb) 405.

(i)(cc) 390.

(i)(dd) 395.

(d)(i)(aa) 853.

(i)(bb) 854. This function include Presiding

(i)(cc) 852. Officers, Provincial VIP’s,

(i)(dd) 883. Judiciary and ad-hoc VIP’s

(c)(ii) 395.

(d)(ii) 888.

Reply:

The figures below are based upon a projection.

Financial Year	Advertised	Filled
		Q1	Q2	Q3	Q4
2017/18	782 posts in Q1 90 posts in Q2 90 posts in Q3 90 posts in Q4 Total:1052 (approximately)	220	248	247	247
2018/19 (Projected Natural Attrition)	270	0	90	90	90
2019/20 (Projected Natural Attrition)	270	0	90	90	90

Reply:

(a) The full names of the individuals who were appointed are:

• Denver Johann Hattingh;
• Frank Boycie Saunders; and
• Kholekile Goodwill Nonkewuse.

(b) The position each specified individual was appointed to is:

• Lieutenant Colonel: Events Management
• Colonel: Station Commander, Emanguzi, Kwa-Zulu Natal; and
• Sergeant: Corporate Communication and Liaison, Eastern Cape.

(c) The qualifications of each individual are:

• Hattingh: Grade Twelve (12) Certificate;
• Saunders: Grade Twelve (12) Certificate, almost completed Bachelor of Policing Practice; and
• Nonkewuse: Grade Twelve (12) Certificate and Certificate in Sound Engineering.

(d) The exceptional circumstances that warranted deviations were:

• Hattingh: The officer served a period of more than 11 years in his previous rank. He has extensive experience within Corporate Communication and Liaison, especially in Events Management and he played an integral role in the organising and successful hosting of National Events such as the National Excellence Awards Event, POLMUSCA etc.
• Saunders: Following issues raised by the community of Emanguzi to the President, the post of Station Commander: Emanguzi was upgraded, and a resolution was taken to fast track the appointment of a permanent Station Commander and to increase members to do policing in the Emanguzi-area in order to meet the challenges that existed and to stabilize policing in such area; and
• Nonkewuse: The member, being a member of the Service for more than 9 years and holding the rank of Constable was inter alia responsible for Community Outreach Projects, and took it upon himself to train and manage the Provincial Choir. The choir became involved in Project Harmony which involves outreach events to support crime prevention messages through music. Under his leadership the Eastern Cape Choir became national champions and also won several external competitions, and built a sound relationship with the Department of Sport, Recreation, Arts and Culture, as well as the Department of Social Development whereby the choir is supporting an old age home through music concerts.

(e) The deviation was in the interest of the Service because:

• Hattingh: A vacant funded post existed at Events Management, and the officer has been performing such duties with exemption. Numerous praises after successfully hosting such events were directly attributed to the officer’s involvement.
• Saunders: Colonel Saunders was identified by the Provincial Commissioner Kwa-Zulu Natal as he possessed extensive skills in managing operational methods and intelligence driven means in curbing the scourge of crime that affects the community in the Emanguzi area;
• Nonkewuse: The promotion of Sergeant Nonkeuse was strongly recommended by the Provincial Commissioner: Eastern Cape based on the member’s leadership-abilities and to retain his rare skills in the SAPS as he was offered employment by various other stakeholders, which would have resulted in the SAPS losing an asset, and would have had a negative impact on the Service.

(f) Yes, in every affected case, the Acting National Commissioner recorded the reasons in writing as required by section 45(9) of the specified regulations.

Reply:

(a)(i)(aa)(bb)(cc) and (ii) The total cases of rape in taxis, reported in each province, are as follows:

Province	(a)(i)(aa) 2014/2015	(a)(i)(bb) 2015/2016	(a)(i)(cc) 2016/2017	(a)(ii) 1 April 2017 to 30 April 2017
Eastern Cape	8	9	9	1
Free State	1	5	5	2
Gauteng	0	1	14	7
KwaZulu-Natal	4	2	4	0
Limpopo	2	1	1	1
Mpumalanga	0	1	0	0
North West	3	3	4	2
Northern Cape	0	0	1	0
Western Cape	18	10	27	1
TOTAL	36	32	65	14

(b) The following cases of rape in taxis resulted in convictions:

Province	Total	Sentence
Eastern Cape	1	10 years imprisonment
Free State	2	20 years imprisonment
		12 years imprisonment
Gauteng	0	Not applicable
KwaZulu-Natal	1	10 years imprisonment
Limpopo	0	Not applicable
Mpumalanga	0	Not applicable
North West	2	Six years imprisonment
		10 years imprisonment
Northern Cape	0	Not applicable
Western Cape	0	Not applicable
TOTAL	6

Reply:

SACE RESPONSE:

One of the biggest challenges within the division is capacity constraints. The division comprises of 3 permanent prosecutors to investigate and prosecute cases throughout the country and it has a further 2 investigators on a permanent basis.

A prosecutorial function is a specialised function that requires persons with the necessary training, skill and knowledge, preferably someone with legal or labour relations training and background.

The division makes use of trained panellists to assist with investigations and to chair disciplinary hearings. Although they are trained by the SACE, most of them still require a lot of further and continuous training.

 

Reply:

(a)(b)(c)(d)(i)(ii) The information is as follows:

and (ii) Financial year	(a) Number of arrests	(b) Number of cases opened	(c) Number of dockets referred to the National Prosecuting Authority for a decision	(d) Number of dockets finalised through an admission of guilt fine
2012/2013	275	281	11	19
2013/2014	419	408	4	36
2014/2015	373	366	7	37
2015/2016	406	406	7	26
2016/2017 (1 April 2016 to 28 February 2017)	380	383	14	11

Reply:

1. The Department of Rural Development and Land Reform has referred this matter for criminal investigation by the relevant law enforcement agencies. As such, the report will not be made public yet.

2. The Minister of Rural Development and Land Reform instructed the recommendations as per the forensic report be implemented and as such:

 a) Please refer to part (1) above.

 b) Disciplinary action has been instituted against the implicated official who is still in the employ of the Department.

c) The Department has instituted preliminary investigations as per the recommendations of the forensic investigation report.

d) A Senior Counsel opinion is being obtained in this regard.

 e) Please refer to part (2)(d) above.

3. Please refer to part (2)(b) above.

Reply:

The question has been referred to all the Provincial Education Departments for response. Therefore, the question will be replied to as soon as the Department receives information from the respective Provincial Education Departments.

Reply:

SACE RESPONSE:

a) 2015/16-sexual misconduct 84

b and c) 2015/16-physical assault and corporal punishment 280

The South African Council of Educators (SACE) does not differentiate between physical assault and corporal punishment.

Reply:

The ammunitions that were recovered, were not recovered as a result of a raid, but as a result of a complaint which had been reported to the Randburg Police Station.

The following were recovered:

Firearms

	Firearm	Quantity
1	AK 47 Rifle	7
2	R5 Rifle	1
3	M16 Rifle	1
4	Homemade Rifle	1
5	Handgun Pistol	18
6	Handgun Revolver	12
7	Uzi	1
8	9mm pistol barrel	2

Magazines

	Firearm	Quantity
1	Rifle magazine	32
2	Pistol 9mm	10

Ammunitions

	Firearm	Quantity
1	Rifle ammunition	7 boxes + 7 rounds of ammunition
2	9mm ammunition	17 boxes + 5 rounds of ammunition
3	.38 Special ammunition	2 boxes
4	1 bag with mixed calibres of ammunition
5	7 bags containing spent cartridges

Explosives

One improvised explosive device with:

1. three connected mortars;
2. three lengths of detonation cord; and
3. three detonators.

One improvised explosive device with:

1. four connected mortars;
2. three lengths of detonation cord; and
3. four detonators.

One improvised explosive device with:

1. Outside cover of a bullet resistant vest (not a SAPS issue);
2. Cellular telephone adapted to be an electronic switch, with protruding electric wires;
3. Two flat squares of explosives (tiles), connected to each other;
4. Explosive cord;
5. Two detonators at each of the two ends of the cord, with one of the explosive tiles attached; and
6. Two detonators.

One smoke grenade of a commercial type used on boats, which is detonated when they are in distress;

Four flares, commercial type used on boats, which is detonated when they are in distress.

One military grade smoke grenade.

One military stun grenade.

Two M26 hand grenades.

One F1 hand grenade.

Five teargas canisters.

One hand radio with charger.

One bag with bullet resistant jacket outers (not SAPS issue).

 

Reply:

(1) 785

(2)(a)(i)(ii)(iii)(b)(i)(ii) This information is classified

(3)(a)(b) This information is classified

(4)(a)(b) This information is classified

Reply:

(1)(a) Yes, 5 December 2016.

(1)(b)(i) Yes. The assessment was conducted by the SAPS Presidential Protection Service (PPS).

(1)(b)(ii) Not applicable.

(2) No, it is the mandate of the SAPS to conduct these assessments.

(2)(a) Not applicable.

(2)(b) Not applicable.

(2)(c) No,

(2)(d) The Department of Public Works (DPW) is responsible for the implementation of proposals, as contained in the security report, in addition to the cost associated with their implementation, which would include the cost associated with the hiring of consultants.

(2)(e) No.

 

Original signed BRIGADIER

f/HEAD: PRESIDENTIAL PROTECTION SERVICE

NPA MATHABATHE

Date: 18 May 2017

Reply to question 954 recommended/not recommended

Original signed LIEUTENANT GENERAL

ACTING NATIONAL COMMISSIONER: SOUTH AFRICAN POLIEC SERVICE

SF MASEMOLA

Date: 26 May 2017

Reply to question 954 approved/not approved

MINISTER OF POLICE

FA MBALULA, MP

Date:

Reply:

(a)-(c) The security detail that has been allocated to (name furnished) was based on a thorough risk assessment, conducted by both the State Security Agency (SSA) and the South African Police Service’s (SAPS) Crime Intelligence capability.

It is not a requirement that a threat assessment be based on a reported crime. As previously stated, the SAPS cannot divulge the detail associated with the threat assessment as this may potentially compromise the safety and security of (name furnished) and the relevant SAPS members.

Reply:

(a) Yes.

(a)(i) 1 February 2017 - 9 officers.

2 February 2017 - 13 officers.

3 February 2017 - 12 officers.

4 February 2017 - 14 officers.

5 February 2017 - 18 officers.

6 February 2017 - 18 officers.

7 February 2017 - 86 officers.

8 February 2017 - 89 officers.

9 February 2017 - 504 officers.

(a)(ii) The additional officers were sourced from the Division: Protection and Security Services (PSS) Head Office, PSS: Eastern Cape, PSS: Kwazulu-Natal, PSS: Northern Cape and PSS: Mpumalanga.

(a)(iii) No.

(a)(iv)(aa) R 1, 243, 964.00

(a)(iv)(bb) R 1, 018, 295.78

(aaa) Please see reply to paragraph (bb) above.

(bbb) No additional overtime was paid as the extra shift was part of the total operational plan.

(b) No personnel were deployed around the Parliament of South Africa.

Reply:

(1) The total number of cases of school staff members administering corporal punishment reported to the South African Police Service (SAPS), is as follows:

Province	(a) 2014/2015	(b) 2015/2016	(c) 2016/2017
EASTERN CAPE	0	3	7
FREE STATE	0	2	7
GAUTENG	0	0	0
KWAZULU-NATAL	2	3	10
LIMPOPO	4	4	1
MPUMALANGA	0	0	1
NORTH WEST	2	1	2
NORTHERN CAPE	2	0	0
WESTERN CAPE	2	1	1
TOTAL	12	14	29

(2) The total number of school staff members found guilty and the sentence imposed on them, are as follows:

Province	(a) Total found guilty	(b) Sentence
EASTERN CAPE	0	Not applicable.
FREE STATE	1	One year imprisonment, suspended for four years.
GAUTENG	0	Not applicable.
KWAZULU-NATAL	2	Cautioned and discharged.
		A fine of R6 000,00, suspended for five years.
LIMPOPO	1	A R3 000,00 fine or 90 days imprisonment, suspended for two years.
MPUMALANGA	0	Not applicable.
NORTH WEST	0	Not applicable.
NORTHERN CAPE	1	Five years imprisonment, wholly suspended.
WESTERN CAPE	1	Five years imprisonment, suspended for five years and two years correctional service.
TOTAL	6

Reply:

a) The Mpumalanga Province did not recruit youth into National Rural Youth Service Corps Programme (NARYSEC) during the 2012 financial year. As a result the number of youth currently in the NARYSEC Programme in Mpumalanga Province is lower than other provinces. During the 2017/18 financial year the province will recruit about 300 youth.

The budget is allocated based on the number of participants/students currently in the programme, number of participants/students to be recruited during the financial year and amounts to be paid for training. The budget allocated to Mpumalanga Province was calculated on the same principles.

(b) The budget allocation for Mpumalanga Province has not been reduced but increased by 27.8% in the current financial year from R25.196 m to R32.169 m.

(c) Skills development is allocated 29.9% of the budget.

(d) The monetary value is R9.62 m.

Reply:

(1) (a) R120.7 million.

(b) During the 2015/2016 and 2016/17 FY the Department of Rural Development and Land Reform (DRDLR) spent R93.5 million.

(c) The budget was spent on, production inputs (seeds, fertiliser, chemicals and fuel), Mechanisation inclusive of (tractors, planters, disk harrows, cultivators, boom sprayers) and a harvester, planting support and the physical infrastructure development at Springbokpan Agrihub site.

(d) (i) R 35,4 million was spent on infrastructure implements (Mechanisation and a Harvester) in the 2015/16 and 2016/17 financial years.

(ii) R 46, 6 million was spent on production capacity over the 2015/16 and 2016/17 financial years.

(2) (a) In 2015/16 financial year 5450 ha was planted and in the 2016/17 financial 3050 ha was planted.

(b) Officials from the Department of Rural Development and Land Reform worked with officials from North West Department of Agriculture and Rural Development.

(c) Rural Enterprise and Industrial Development (REID) programme.

(d) In the 2015/16 FY the cost per hectare was R 6 128.00, in the 2016/17 FY the cost per hectare was R4 332.00.

(e) The main crops planted were sunflower and maize.

Reply:

1. (a) An Acting allowance equivalent to the difference of her permanent salary and the minimum salary level of the CEO’s salary band is payable to the Acting CEO.

2. Yes.

(3) Yes .

(a) Not yet determined.

(b) (i) 57 applications were received.

(ii) Shortlisting still in progress.

(c) Appropriate B Degree or equivalent qualification in education; Knowledge of the education sector is a prerequisite and at least 10 years’ experience at management level; Teaching experience will be a distinct advantage.

Reply:

(a) With regards to directional signage on roads, it is not the mandate of the Department of Tourism but the mandate of the Department of Transport and its agency (SANRAL) in terms of the National Road Traffic Act, N0. 93 of 1996 and its Regulations. The South African Road Traffic Signs Manual (SARTSM) Volume 2, Chapter 4 gives guidance on Tourism Signage as well as the required committee structures which need to be put in place for the approval process. Part of the approval process is a site inspection to determine the safety of the access to the facility.

Nonetheless, with specific reference to the Nelson Mandela Capture Site, in order to facilitate this recurring challenge of directional signage, the National Department of Tourism has been interacting with key stakeholders, to find a solution, herein summarised below:-

The National Department of Tourism contacted Mr D Jones of the Howick uMngeni Community Tourism Organisation (HUCTO) to ascertain the scale of the problem as well as the initiatives undertaken at local level to address the signage problems in the area.

The Department raised the issue through various platforms such as the National Tourism Planning and Coordinating Forum, the National Tourism Governance and Development Working Group, National Road Signage Task Team, the KwaZulu-Natal (KZN) Economic Development & Tourism Department, SANRAL officials, the KZN Tourism Department, the KZN Provincial Tourism Authority, the KZN Roads Department, uMngeni Local Municipality and the Howick Umgeni Community Tourism Organisation to find a workable solution to address the lack of signage to the Nelson Mandela Capture Site.

There was motivation made for tourist-directional signage along the N3 leading to the Mandela Capture Site. SANRAL’s response to the appeal for directional signage to be placed on the N3 was not approved, reasons why SANRAL cannot approve signage for the capture site off the N3 highway are the following:-

• Road signs are in place on the N3 and clearly visible to the road users. Road Signs should be used as landmarks to direct visitors to the facility. Visits to such facilities are planned ahead and the route are therefore also planned in advance.
• The facility is established on a numbered route R103 and sign will only be allowed to be displayed from the nearest numbered route to the facility. Signs are currently displayed on the local roads. The basic requirement as indicated in the SARTSM-Vol 2 Chapter 9.5.18.1 for the facility to display road are that it should be within 2km from the nearest numbered route. The N3 is not the nearest numbered route to the facility.

The response, however, makes mention of signage being allowed for the R103 which is the closest numbered road from the N3. The Department will continue to engage with all the stakeholders to urge the installation of signage to the Nelson Mandela Capture Site on the R103, which now appears to be the only available option.

(b) The National Department of Tourism works very closely with the Department of Arts and Culture concerning matters of the National Heritage Sites. To date, no enquiries have been raised pertaining to directional signage en- route to other iconic national heritage sites with the exception that of the Nelson Mandela Capture Site.

To reiterate, the issue of directional signage on public roads in South Africa is a core competence of the National and Provincial Departments of Roads and Transport, and it is not a shared competency across government departments such as Tourism. With respect to other iconic national heritage sites, the Department has provided funding for interpretative signage (signage installed within the site) to the management authorities of the following sites in 2016-2017 (1) Victor Verster Prison (WC); (2) Nelson Mandela Capture Site (KZN); (3) Freedom Park (GT); (4) The Mandela Statue at Union Buildings (GP), and will provide funding to the management authorities of the following sites in 2017-2018 (1) Kgalagadi Transfonteir Park (NC); (2) Golden Gate National Park (FS); (3) Sarah Baartman Heritage Site (EC); and (4) the Gugulethu Seven Memorial (WC).

Reply:

No, neither the Minister of Defence and Military Veterans, nor her departments and all entities reporting to her procured any services from and/or made any payments to Bell Pottinger or any other public relations firms.

Reply:

1.Neither the Department nor any entity reporting to me have procured any services nor made any payments to Bell Pottinger as there is no good reason to do so.

2. One entity, the Industrial Development Corporation (IDC) used a public relations firm, Grounded Media, for a one-year period, at a contract price of R554 400. The IDC CEO has advised that the payments were for the following services:

• Developing and implementation of the Public Relations strategy;
• News writing;
• Management of media data base;
• Media training and;
• Reporting and analysis on IDC media coverage.

-END-

Reply:

Yes. South African Tourism sets its baseline using the Oxford Econometrics Target Setting Methodology.

The Econometrics Model predicts what world travel should be in 190 global markets (including South Africa), then each country assumes a certain share of that based on how it performs against certain measures.

• Tourism Demand modelled as a function of:

• Macro-economic drivers:
• GDP
• GDP per capita
• Consumer spending
• Income
• Personal disposable income

• Demographics:
• Population
• Working Age
• Employment Rate

• Prices:
• Consumer Price Index
• Interest Rates

• Destination Competitiveness Index:
• Regulatory Framework
• Environment
• Infrastructure
• Resources (Human, cultural and natural)

Through the Marketing Investment Framework consideration was given to the tourism potential of various markets, South Africa’s ability to win in those markets and the cost of acquisition of tourists from those markets. This has informed the organisation’s marketing spend in each international market.

(a) Optimal Annual Overseas advertising Budget

SA Tourism’s approved international marketing budget for the 2017/18 financial year is R 804 million (approximately 60% of the organisation’s total approved budget). This is the optimal marketing spend to assist the organisation in achieving its 5-in-5 target of 4 million more international tourist arrivals by 2021.

(b) What did the study reveal in terms of which countries SA should be advertising in?

Based on the desired growth in market share, relative cost of acquisition in each market and the available budgets, South African Tourism has defined a selection of prioritised markets from the list of attractive opportunities. These markets are expected for account for 95% of total international trips to South Africa.

The Marketing Investment Framework’s selection of markets is as follows:

These markets have been divided into international markets with the highest share of holiday and (Meetings, Incentives, Conferencing and Exhibitions (MICE) trips to South Africa, markets with the highest share of Visiting Friends and Relatives (VFR) trips to South Africa, and markets with the highest share of trips for other purposes, such as for trading purposes.

(c) Further details

SA Tourism’s strategic plan for 2017-2022 provides full details of SA Tourism’s approach in arriving at the Marketing Investment Framework and selected markets for investment. A detailed Marketing Investment Framework information pack can be provided on request.

Reply:

(b) DEPARTMENT

(i) Certain company- (Bell Pottinger)

(aa) The Department has never procured the services of the certain company ( Bell Pottinger)

(bb) – (ff) Not applicable

(ii) Any other Public Relations Firms

(aa) The Department has never procured the services of any Public Relations Firm

(bb) - (ff) Not applicable

(c) SA TOURISM

(i) Certain company- Bell Pottinger LLP

(aa) Services Procured

Bell Pottinger LLP was appointed by the SA Tourism UK Office for a period of 3 years effective 1 January 2014 following an open tender process in the UK. The services were for Public Relations including Digital PR and Online Communications to complement and align to existing media buying, events and social media services in order to complete a 360°consumer and trade engagement.

The UK tender has recently been reissued and a new service provider will be in market from 01 July 2017.

(bb) Total Cost : R 8 611 281

(cc) Detail breakdown of such cost: Refer to Annexure A

(dd) Total amount paid : R 9 600 858

(Variance between procurement amounts and amounts paid are due to foreign currency rate fluctuations where the foreign currency exchange rate was higher at payment date)

(ee) Purpose of Payments

Payments were made for work agreed and delivered in good order as per the scope of work contracted for under question b (i) (aa)

(ff) Detailed breakdown of payments: Refer to Annexure A

(ii) Any other Public Relations Firms

(aa) Services Procured:

The PR agencies were appointed by the SA Tourism Offices following open tender processes. The services were for Public Relations including Digital PR and Online Communications to complement and align to existing media buying, events and social media services in order to complete a 360°consumer and trade engagement.

(bb) Total Cost: R 38 472 101

(cc) Detail breakdown of such cost: Refer to Annexure A

(dd) Total amount paid: R 40 678 690

(Variance between procurement amounts and amounts paid are due to foreign currency rate fluctuations where the foreign currency exchange rate was higher at payment date)

(ee) Purpose of Payments: Payments were made for work agreed and delivered in good order as per the scope of work contracted for under question b (ii) (aa)

(ff) Detailed breakdown of payments: Refer to Annexure

 

ANNEXURE A

PR Agencies utilised by SA Tourism between April 2016 and May 2017

Supplier Name	Operating Unit	Cur	Procured	Paid
Bell Pottinger LLP Total	London	ZAR	8 611 281	9 600 858
Grebstad Hicks Communications (Shanghai) Limited Total	Beijing	ZAR	1 705 052	1 705 052
HEREBAN Total	Paris	ZAR	2 181 458	2 618 064
Kleber PR Network GMBH Total	Frankfurt	ZAR	1 923 864	1 754 276
KPRN network GmbH Total	Frankfurt	ZAR	7 651 195	8 190 219
MELTWATER SOUTH AFRICA Total	Head Office	ZAR	300 000	300 000
Newell Public Relations (Beijing) Ltd Total	Beijing	ZAR	657 480	1 772 429
Professional Public Relations Pty Limited Total	Sydney	ZAR	5 080 368	4 692 445
Simply Communicatie BV t/a Simply PR Total	Amsterdam	ZAR	1 431 531	1 441 898
The Hallway Group Pty Ltd Total	Sydney	ZAR	1 601 703	1 483 951
W!T Total	New York	ZAR	4 060 222	4 103 136
Weber Shandwick [CMGRP (I) Pvt. Ltd.] Total	Mumbai	ZAR	1 212 889	961 303
White Knight Total	Japan	ZAR	2 055 058	2 055 058
TOTAL		ZAR	38 472 101	40 678 690

Reply:

The National Student Financial Aid Scheme (NSFAS) responded to the questions as follows:

1. (a) Allowances can only be paid to students after an institution has sent proof of their students’ registration to NSFAS for the generation of Loan Agreement Forms (LAFs) and Schedules of Particulars (SOPs) for students to sign.

It should be noted that NSFAS pays allowances directly to students who are on the sBux system.

The following challenges have resulted in students receiving late payment or not receiving allowances through the sBux system:

• Once funding decisions are made, students are expected to acknowledge their funding by signing a loan agreement form (university students) and schedule of particulars (TVET students). For this process to be completed, institutions must exchange registration information with NSFAS, which serves as confirmation that students are registered. NSFAS implemented the registration system without sufficient testing and incomplete requirements. This resulted in delays in the processing of student registration information by institutions.
• Students not signing LAFs and SOPs. The NSFAS Communications Department has commenced a campaign to encourage students to sign their LAFs and SOPs.
• Frequency with which students change their cell phone numbers between the time they register with institutions and sign their LAFs and SOPs. Measures have been put in place by NSFAS to speed up the process of updating cell phone numbers.
• Technical and administrative challenges in the rollout of the new student centred model.

(b) Institutions on the sBux system, i.e. 5 Universities and 19 TVET colleges, were affected by the challenges highlighted in 1(a):

Universities:

1. Durban University of Technology
2. Nelson Mandela University
3. Sol Plaatje University
4. University of South Africa
5. University of Venda

TVET Colleges:

1. Central Johannesburg
2. Boland
3. Buffalo City
4. Coastal KZN
5. Ekurhuleni East
6. Ekurhuleni West
7. Esayidi
8. King Hintsa
9. Mnambithi
10. Motheo
11. Mtashana
12. Orbit
13. Port Elizabeth
14. Sedibeng
15. Thekwini
16. Tshwane North
17. Umfolozi
18. Umgungundlovu
19. Vhembe

The remaining 52 institutions received direct payments, i.e. the first payment on 16 January 2017 and second payment on 21 April 2017, for the distribution of allowances to their respective students.

(c)) sBux institutions are expected to send proof of their students’ registration to NSFAS before LAFs and SOPs can be generated for students to sign. It is important to note that allowances can only be disbursed to students once they have signed their LAFs and SOPs. Not all sBux students who qualify for funding automatically qualify for allowances.

The majority of TVET colleges still need to submit their student registration information and allowance allocations for SOPs to be generated before students can sign and have their allowances disbursed.

2. As at 30 March 2017, 27 400 students eligible for sBux had signed their LAF and SOPs of which 25 120 students were receiving sBux and a further 2 280 students still needed to be processed.

 

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 974 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE:

Reply:

(a) Services procured and payments made by his Department

According to supply chain records at the disposal of the Department, which were sourced and verified against the ERP systems, no services were procured from:

(i) Bell Pottinger.

(ii) No services were procured from any other public relations firms.

(aa), (bb), (cc), (dd), (ee), and (ff) Not Applicable

 

(b) Public Entities Reporting to the Department

(i) All the public entities reporting to the department of public works namely:

Independent Development Trust (IDT), Agrement South Africa (ASA), Council for Built Environment (CBE) and Construction Industry Development Board (CIDB) did not procure any services nor did they make payments to Bell Pottinger or any other public relations firms.

(ii) Only the Construction Industry Development Board (CIDB) procured services from other public relations firms

Construction Industry Development Board (CIDB) in the 2016/17 financial year end, procured services from and/or made any payments to Blackmoon advertising and Research (Pty) Ltd and Litha Communications (Pty) Ltd, public relations firms for the following services and costs:

bb) 1,615,673.39

 

(aa) & (ee) Services procured	Blackmoon and Advertising (Pty) Ltd	Litha Communications (Pty) Ltd	(dd) & (ff) Total paid
	(cc) Detailed breakdown of costs
Design, layout & printing of Annual reports	504,232.37	85,215.00	589,447.37
Design and layout of internal newsletters	52,119.66		52,119.66
Design, layout and printing of external newsletters	71,139.14	70,548.40	141,687.54
Design, layout and printing of poster, invitation cards and programmes	12,950.40		12,950.40
Reprinting of existing documents	497,472.24	97,059.60	594,531.80
Research, conceptualising and writing of articles	33,143.51		33,143.51
Advertising in different media	-	-	-
Corporate gifts sourcing and branding	100,218.08	28,371.75	128,589.83
Photography	37,324.74	25,878.50	63,203.24
(bb) Total cost	1,308,600.14	307,073.25	1,615,673.39