Questions and Replies

Reply:

1. The position of the Minster has not changed since the last oral reply. As indicated then, zero-rating of specific foodstuffs provides a larger proportional benefit to the poor (i.e. progressivity is enhanced). Overall, goods have a progressive impact and a strong equity-gain ratio – poor people consume a relatively high share of zero-rated items. Nevertheless, the analysis of the independent panel in 2018 indicated that extending zero-rating to further food items would be inefficient, since high-income households tend to benefit more from such measures.
2. We acknowledge the importance of the agricultural sector in tackling the issue of food insecurity which can both be addressed by increasing availability of food and affordability of food. National Treasury provides fiscal support to departments to support the agricultural sector. The fiscal support for agricultural sector is determined through the budget allocations to the Department of Agriculture, Land Reform and Rural Development, as articulated in the Estimate of National Expenditure (ENE) -Vote 29 and to provinces though the Division Revenue Act, and this information is available in various provincial budgets.
3. Consolidated spending allocations for agriculture and rural development, as presented in the 2023 Budget, are R27.8 billion in 2023/24, R28.6 billion in 2024/25 and R29.9 billion in 2025/26.

Reply:

NSFAS currently does not categorize as specified above. Financial assessment is based on household income (threshold) of R350 000 for non-disability and 600 000 for disability applicants.

Reply:

(1) Section 8(1) of the Municipal Fiscal Powers and Functions Act (MFPFA) stipulates that the Minister of Finance may prescribe compulsory norms and standards for imposing municipal surcharges. To date, the Minister of Finance have not prescribed any compulsory norms and standards for regulating the imposition of municipal surcharges. However, the absence of the norms and standards does not restrict a municipality from imposing surcharges in their tariffs given that this is a power given to municipalities in terms of section 229 of the Constitution and the Municipal Systems Act (MSA). Furthermore, if a municipality decides to levy a surcharge, approval is done by the municipal council in terms of a tariff policy, pursuant to section 75 of the MSA and will also be subject to section 8 of the Municipal Fiscal Powers and Functions Act (MFPFA), as soon as norms and standards for municipal surcharges are prescribed by the Minister of Finance. The National Treasury is currently reviewing the possibility of introducing compulsory norms and standards in terms of section 8 of the MFPFA and has appointed a service provider to assist with the development of compulsory national norms and standards for regulating municipal surcharges on electricity.

1. Not applicable.
2. Not applicable.

(2) It is not yet necessary for the City of Cape Town (or any other municipality) to comply with section 9(1) of the MFPFA given that the norms and standards referred to in section 8 of the Act is yet to be prescribed by the Minister of Finance. As soon as these norms and standards are prescribed, all municipalities levying surcharges on municipal services will however be required to comply with this provision.

(3) See response in (2).

1. Not applicable.
2. Not applicable.

4. See response in (1).

(5)(a) Various pieces of legislation regulate the levying of municipal surcharges:

The Constitution

Section 229 of the Constitution indicates that a municipality may impose—

(1) subject to subsections (2), (3) and (4), a municipality may impose

(a) rates on property and surcharges on fees for services provided by or on behalf of the municipality

(2) The power of a municipality to impose rates on property, surcharges on fees for services provided by or on behalf of the municipality, or other taxes, levies or duties—

(b) may be regulated by national legislation.

The Municipal Fiscal Powers and Functions Act (MFPFA)

Section 8 of the MFPFA gives power to the Minister of Finance to prescribe compulsory national norms and standards for imposing “municipal surcharges”. Furthermore, when levying surcharges, municipalities are required in terms of section 9(1)(a) of the MFPFA to comply with any norms and standards contemplated in section 8 of the MFPFA.

The Municipal Systems Act (MSA)

Section 4(1)(c)(ii) of the MSA indicates that the council of a municipality has the right to finance the affairs of the municipality by imposing surcharges on fees, rates on property and, to the extent authorised by national legislation, other taxes, levies and duties. In section 74(2)(f), the Act provides that a municipal tariff policy must reflect at least the following principles: “(f) provision may be made in appropriate circumstances for a surcharge on the tariff for a service”. In terms of section 94(1), the Minister responsible for Local Government may regulate the following matters: “(d) criteria to be taken into account by municipalities when imposing surcharges on tariffs for services and determining the duration thereof;”.

(b) Once norms and standards for municipal surcharges are prescribed for a specific municipal service as per section 8 of the MFPFA, any municipality that does not adhere to such norms and standards (e.g. exceeds prescribed levels) will be in non-compliance with the Act, except if the Minister of Finance has given approval to such municipality in terms of section 9(1)(b) to be exempted from complying to any of the norms and standards as contemplated in section 8 of the Act.

Reply:

Department of Public Enterprises

(a)

(i) (aa) The cost for Annual Report 2020-21 F/Y was R62 504.80. This amount was for design, layout, editing, proofreading and printing of 100 copies as well as 2 USB format.

(b) Fineart Printers

(c) 100 printed copies

(bb) The cost for Annual Report 2021-22 F/Y was R 69 080.00. This amount was for design, layout, editing, proofreading and printing of 100 copies as well as 2 USB format.

(b) PulseMag

(c) 100 printed copies

(cc) The cost for Annual Report F/Y 2022-23 F/Y is an estimate at +R70 000. 00. As the number of pages and print run has not yet been finalized.

(b) Pulsemag

(c) 100 printed copies

According to Information Received from SOCs

ALEXKOR SOC LIMITED:

(a)(ii)(aa) 2021-22: The integrated report (IR) was printed in-house for AGM attendees only.

(bb) 2021-22: The external audit was delayed due to the decision to request the AGSA to opt-in. The audit opinion for this reporting period was presented to the Board on 31 August 2023 and the IR will be printed in-house for AGM attendees before the end of September 2023.

(cc) 2022-23: An extension was granted for the submission of the AFS and IR for external audit to 31 August 2023. The IR will be printed for AGM attendees upon completion of the external audit.

(b)(aa) 2020-21: Nexus Sustainability (Pty) Ltd provided editing services to Alexkor SOC for R81 909.00 which was not inclusive of printing.

(bb) 2021-22: The IR will be printed in-house.

(cc) 2022-23: The IR will be printed in-house.

(c)(aa) 2020-21: 10 copies were printed.

(bb) 2021-22: Not yet printed.

(cc) 2022-23: Not yet printed.

DENEL SOC LIMITED:

(a)

(ii) Kindly note that the finalisation of Denel SOC Ltd Annual Reports has been delayed due to liquidity constraints. No Integrated Annual Reports for the said financial periods have been finalised and printed yet.

(b) The supply chain process to appoint a service provider is still underway.

(c) No Integrated Annual Reports for the said financial periods have been finalised and printed yet.

ESKOM SOC LIMITED:

a) (ii) Eskom has incurred the following costs for printed copies of its annual reports for the financial years shown below:

 

Annual reports for the year ended	31 March 2021 Actual (aa)	31 March 2022 Actual (bb)	31 March 2023 Budgeted (cc)
Integrated Report	R91 517.64	R96 554.61	R107 070.30
Annual Financial Statements	R73 892.94	R91 672.39	R78 602.40
Sustainability Report	R17 966.67	R19 142.44	R23 054.40
Total cost (excluding VAT)	R183 377.25	R207 369.44	R208 727.10

Note: In each case, the annual reports are printed and published in the subsequent financial year (i.e., annual reports for the year ended 31 March 2022 were printed and published in the 2023 financial year).

Eskom has not yet published its annual reports for the year ended 31 March 2023 and therefore has not incurred any related printing costs. The budgeted amount has been shown instead.

b) The supplier contracted for design, typesetting, proofreading, and printing of the annual reports for the years ended 31 March 2021 and 31 March 2022 was HKLM Hlapa JV (Pty) Ltd. The printing services were subcontracted to Law Printing (Pty) Ltd (Lawprint).

The reports for the year ended 31 March 2023 will be produced by Ince (Pty) Ltd.

c) The total number of copies printed for the annual reports are as follows:

Annual reports for the year ended	31 March 2021 Actual	31 March 2022 Actual	31 March 2023 Budgeted
Integrated Report	205	205	200
Annual Financial Statements	210	210	200
Sustainability Report	55	55	50
Total number of copies	470	470	450

SAFCOL SOC LIMITED:

a) The total amount by entity

	(aa) 2020-21	(bb) 2021-22	(cc) 2022-23
(i) N/A
(ii) SAFCOL	R46 806,88	R51 134,29	R54 713,69 (estimate)

The service provider was appointed for a period of three years; the total contract value is R1 457 775,82. The Financial year 2022-23 amount is an estimate because page numbers are not finalised nor has the print run been confirmed but it’s included based on last year's amount. The integrated report is being prepared for finalisation soon.

b) Suppliers per financial year

2020 -21	2021-2022	2022-23
SILVAPOD (PTY) LTD	SILVAPOD (PTY) LTD	SILVAPOD (PTY) LTD

c) Total number of copies of the report printed per financial year

2020-21	2021-22	2022-23
200	200	200

SOUTH AFRICAN AIRWAYS SOC LIMITED

For the period 2020 to date, South African Airways (SAA) are still having its final statements audited, as such the airline did not print copies, nor procured the services of a printing company for the printing of its integrated annual reports.

TRANSNET SOC LIMITED

The table below indicates the amounts paid by Transnet for the printed copies of the integrated annual reports and the number of copies printed in each of the financial years under question.

Year	Service Provider (b)	Number of copies (c)	Amount (a)
(i)and(ii)
(aa) 2020-21	Magnific	490	R225,693
(bb) 2021-22	Magna Carter Corporate Advisory Services	490	R295,693
(cc) 2022-23	Ince	260	R169,636

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

The Municipal Finance Management Act, 2003 (Act No 56 of 2003) and through various sections of the Act, provide guidelines to municipalities on how to treat impending revenue shortfalls. In addition, the National Treasury also provides regular Budget Circulars to guide municipalities to prepare annual budgets and address situations like loadshedding.

Section 70 of the MFMA, subsection 1. “the accounting officer of a municipality must report in writing to the municipal council – (a) any impending (i) shortfalls in budgeted revenue, and (ii) overspending of the municipality’s budget, and (b) any steps taken to prevent or rectify such shortfalls or overspending.

Section 28 of the same Act provides guidance on Municipal Adjustments Budgets – (1)(a) that “a municipality may revise an approved budget through an Adjustments Budget and (2)(a) must adjust the revenue and expenditure estimates downwards if there is a material under collection of revenue during the current year.

Given the fiscal constrained environment within which the National Fiscus operates, the National Treasury was not in a position during the preparation of the 2022 MTEF, to make any additional funding available to municipalities for this purpose. As a result, they were advised to reprioritize their tabled 2023 MTREF Budgets to absorb the cost associated with loadshedding within baselines.

Reply:

The DBSA has seventy tourism-related projects, of which twenty-two have been completed, and forty-eight are in various stages of execution.

The detailed project list, which includes details (question (a)-(h)) is listed below.

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date ( e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
1	NW	Compliance Certificates	NW Lehurutshe Bird and Trophy Hunting owned by the Bakgatla ba Lencoe Trust	2020-12-07	Construction	Construction	2024-03-22	2024-03-22	Not Applicable	R28,209,243.11	R1,176,025.47
2	KZN	Compliance Certificates	KZN Isibhubhu Project	2020-12-07	Construction	Construction	2023-09-16	2023-11-15	Slow performance of the contractor at commencement due to cash constraints and material sourcing challenges. The DBSA loan facility to the contractor has assisted in procurement of material and the performance of the contractor has improved as they are recovering to complete on time. Suspension of works due to the yearly traditional reed dance for a week was the latest stoppage. Delay also caused by client request for change in design for the maidens change rooms.	R35,470,271.15	R13,489,181.26
3	KZN	Compliance Certificates	KZN Muzi Pan Project	2020-12-07	Concurrence	Procurement - Concurrence Requested	2024-06-13	2024-06-13	Not Applicable	R21,899,635.05	R578,852.36
4	MP	Community Tourism Projects	Numbi Gate - Nkambeni Safari Lodge	2020-12-07	Construction	Construction	2024-03-26	2024-03-26	Delays in commencement of the project due to community social issues and currently a land claim.	R24,563,693.62	R2,659,306.92
5	MP	Community Tourism Projects	Numbi Gate - Mdlhuli Safari Lodge	2020-12-07	Construction	Construction	2024-03-26	2024-03-26	Delays in commencement of the works due to the delays in appointment of the CLO and labour	R33,554,531.24	R3,455,932.19
6	LP	Community Tourism Projects	Nandoni Dam	2020-12-07	Construction	Construction	2024-05-16	2024-05-16	Not Applicable	R38,982,441.65	R1,738,488.51
7	LP	Community Tourism Projects	Tshathogwe Game Farm	2020-12-07	Construction	Construction	2023-09-09	2023-11-14	Poor performance of the Contractor. Penalties to be charged in accordance with contract.	R26,741,416.87	R9,476,563.90

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
8	LP	Community Tourism Projects	Mtititi Game Farm	2020-12-07	Construction	Construction	2023-06-10	2023-12-31	Poor performance of the Contractor. Penalties to be charged in accordance with contract.	R27,898,562.18	R14,455,737.46
2023-12-31	LP	Community Tourism Projects	Mapate Recreational Social Tourism Facility	2020-12-07	Construction	Construction	2023-06-16	2023-12-31	Suspension of works due to fatality on site, Poor performance by contractor at commencement of the constructions works.	R27,450,164.53	R9,245,260.80
2023-12-31	KZN	Local Community Museums	Product Enhancement at Anton Lembede Museum eThekwini Municipality (KZN)	2021-02-08	Construction	Construction	2024-03-02	2024-03-02	Not Applicable	R23,611,547.91	R979,096.02
11	NC	Local Community Museums	Product Enhancement at McGregor Museum (NC) WP1	2021-02-08	Evaluation	Procurement - Evaluation	2024-06-16	2024-06-16	Not Applicable	R240,750.00
12	NC	Local Community Museums	Product Enhancement at McGregor Museum (NC) WP2	2021-02-08	Evaluation	Procurement - Evaluation	2024-04-15	2024-04-15	Not Applicable
13	KZN	Local Community Museums	Product Enhancement at AmaHlubi Cultural Heritage (KZN)	2021-02-08	Concept NDT	Planning and Design	2024-03-11	2024-03-11	Not Applicable	R8,228,848.39	R979,069.02
14	NW	Local Community Museums	Product Enhancement at Sol Plaatjie Museum (NW)	2021-02-08	Construction	Construction	2024-02-01	2024-02-01	Delay in commencement of works due to an impasse on works to be implemented (new and maintenance work). Meeting between NDT, DBSA and Mahikeng Municipality to be held on 20.09.2023 to find way forward on scope.	R8,228,848.31	R832,007.41

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4), Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date ( e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
15	NW	Local Community Museums	Product Enhancement at Lehurutshe Liberation Heritage Museum	2021-02-08	Concept NDT	Planning and Design	2024-02-27	2024-02-27	Not Applicable	R15,384,460.00	R832,007.41
16	NC	lndi-Atlantic Route (Coastal and Marine Tourism initiatives)	Tourism development at Orange River Mouth (NC) as part of the Indi-Atlantic Route	2021-02-08	Design Development	Planning and Design	N/A	N/A	Project works to be completed till Design Stage. Further stages will await NDT instruction to Proceed.	R76,121,200.33	R949,421.57
17	EC	lndi-Atlantic Route	Tourism Development at Hole in the Wall (EC) as part of the Indi-Atlantic Route	2021-02-08	Design Development	Planning and Design	N/A	N/A	Project works to be completed till Design Stage. Further stages will await NDT instruction to Proceed.	R56,103,208.95	R1,760,791.87
18	KZN	lndi-Atlantic Route	Tourism development at Harold Johnson Nature Reserve as part of the Indi-Atlantic Route	2021-02-08	Design Development	Planning and Design	N/A	N/A	Project works to be completed till Design Stage. Further stages will await NDT instruction to Proceed.	R48,708,342.83	R1,443,770.69
19	GP	Maintenance & Beautification	Suikerbosrand Nature Reserve, Gauteng	2020-12-07	Evaluation	Procurement - Evaluation	2024-03-20	2024-03-20	Not Applicable	R8,733,665.78	R257,326.41
20	KZN	Maintenance & Beautification	J L Dube Precinct, KZN	2020-12-07	Design Development	Planning and Design	2023-11-27	2023-11-27	Not Applicable	R4,277,257.82	R37,527.79
21	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Gariep Dam Resort, Free State	2020-12-07	Construction	Construction	2023-09-14	2023-12-31	The contractor is behind schedule. Penalties to be charged in accordance with contract.	R4,999,748.71	R2,182,007.88

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
22	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Maria Moroka Resort in Thaba Nchu, Free State	2020-12-07	Construction	Construction	2023-09-15	2023-12-31	The contractor is behind schedule. Penalties to be charged in accordance with contract.	R4,999,748.71	R894,648.15
23	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Phillip Saunders Resort in Bloemfontein, Free State	2020-12-07	Construction	Construction	2023-08-15	2023-12-31	Additional scope of work requested by the end user Client and extension of time under review to determine the completion date.	R4,999,748.71	R2,637,239.48
24	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Sterkfontein Dam Nature Reserve, Free State	2020-12-07	Construction	Construction	2023-08-14	2023-12-31	The contractor is behind schedule. Penalty to be charged in accordance with contract.	R4,999,748.71	R2,967,908.65
25	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	Manyeleti Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R2,922,378.71
26	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	Andover Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R3,476,227.74
27	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	Songimvelo Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R3,801,835.77
28	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	SS Skosana Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R3,089,137.42

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status (c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
22	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Maria Moroka Resort in Thaba Nchu, Free State	2020-12-07	Construction	Construction	2023-09-15	2023-12-31	The contractor is behind schedule. Penalties to be charged in accordance with contract.	R4,999,748.71	R894,648.15
23	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Phillip Saunders Resort in Bloemfontein, Free State	2020-12-07	Construction	Construction	2023-08-15	2023-12-31	Additional scope of work requested by the end user Client and extension of time under review to determine the completion date.	R4,999,748.71	R2,637,239.48
24	FS	Maintenance & Beautification of Provincial State-Owned Attractions.	Sterkfontein Dam Nature Reserve, Free State	2020-12-07	Construction	Construction	2023-08-14	2023-12-31	The contractor is behind schedule. Penalty to be charged in accordance with contract.	R4,999,748.71	R2,967,908.65
25	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	Manyeleti Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R2,922,378.71
26	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	Andover Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R3,476,227.74
27	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	Songimvelo Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R3,801,835.77
28	MP	Maintenance & Beautification of Provincial State-Owned Attractions.	SS Skosana Nature Reserve, Mpumalanga	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	2023-06-08	Not Applicable	R3,736,433.94	R3,089,137.42

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date ( e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
29	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Thomas Baines Nature Reserve, Eastern Cape	2020-12-07	Construction	Practical Completion Achieved	2023-08-08	2023-09-14	Certain areas on site were put on hold due to environmental concerns which did not form part of the scope. Practical completion has been achieved.	R4,285,162.35	R3,415,779.54
30	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Hluleka Nature Reserve, Eastern Cape	2020-12-07	Concept To be Approved	Planning and Design	2023-12-27	2024/25FY	Not Applicable	R4,185,939.39	R83,973.60
31	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Double Mouth Nature Reserve, Eastern Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-06	N/A	Not Applicable	R3,528,146.03	R2,859,541.75
32	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Oviston Nature Reserve, Eastern Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-25	2023-09-01	Project was affected by the hunting season as the contractor had limited access to site, hence the delay in completion against the baseline PC date. The project has achieved practical completion.	R3,504,584.39	R2,622,218.39
33	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Baviaanskloof Nature Reserve, Eastern Cape	2020-12-07	Construction	Construction	2023-07-25	2023-10-31	Change in the design of the kitchen building and location allocated by the end user.	R3,528,146.03	R2,182,741.34
34	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Cwebe and Dwesa, Eastern Cape	2020-12-07	Construction	Construction	2023-12-01	2023-12-01	Delays in granting contractor access to all facilities on site due to a movie recording or filming.	R4,263,982.64	R888,768.16
35	EC	Maintenance & Beautification of Provincial State-Owned Attractions.	Mpofu and Fordyce Nature Reserve, Eastern Cape	2020-12-07	Construction	Construction	2023-12-02	2023-12-02	Delay on works as some facilities had to be put on hold to accommodate the hunting season which generates revenue for the reserve.	R4,263,982.64	R1,502,586.19

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date ( e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
36	NC	Maintenance & Beautification of Provincial State-Owned Attractions.	Doornkloof Nature Reserve, Northern Cape	2020-12-07	Construction	Construction	2023-11-23	2023-11-23	Not Applicable	R5,254,310.06	R1,235,877.71
37	NC	Maintenance & Beautification of Provincial State-Owned Attractions.	Rolfontein Nature Reserve, Northern Cape	2020-12-07	Construction	Construction	2023-11-23	2023-11-23	Not Applicable	R5,254,310.06	R1,686,739.19
38	NC	Maintenance & Beautification of Provincial State-Owned Attractions.	Goegap and Witsand Nature Reserve, Northern Cape	2020-12-07	Construction	Construction	2023-11-23	2023-11-23	Not Applicable	R5,254,310.06	R3,410,098.70
39	LP	Maintenance & Beautification of Provincial State-Owned Attractions.	Makapans Valley WHS, Limpopo	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	N/A	Not Applicable	R3,145,623.58	R2,997,834.07
40	LP	Maintenance & Beautification of Provincial State-Owned Attractions.	Nwanedi Nature Reserve, Limpopo	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	N/A	Not Applicable	R3,145,623.58	R2,558,202.70
41	LP	Maintenance & Beautification of Provincial State-Owned Attractions.	Blouberg Nature Reserve, Limpopo	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	N/A	Not Applicable	R3,145,623.58	R2,465,052.22
42	LP	Maintenance & Beautification of Provincial State-Owned Attractions.	Musina Nature Reserve, Limpopo	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	N/A	Not Applicable	R3,145,623.58	R2,777,971.87

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
43	LP	Maintenance & Beautification of Provincial State-Owned Attractions.	Modjadji Nature Reserve, Limpopo	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-16	N/A	Not Applicable	R3,145,623.58	R2,430,597.23
44	WC	Maintenance & Beautification of Provincial State-Owned Attractions.	Kogelberg Nature Reserve, Western Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-06-14	N/A	Not Applicable	R3,634,316.46	R3,003,843.38
45	WC	Maintenance & Beautification of Provincial State-Owned Attractions.	Goukamma Nature Reserve, Western Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-06-14	N/A	Not Applicable	R3,634,316.46	R2,527,332.95
46	WC	Maintenance & Beautification of Provincial State-Owned Attractions.	Lookout Hill Khayelitsha, Western Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-06-14	N/A	Not Applicable	R3,634,316.46	R3,277,649.65
47	WC	Maintenance & Beautification of Provincial State-Owned Attractions.	De Hoop Nature Reserve, Western Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-06-14	N/A	Not Applicable	R3,634,316.46	R2,026,649.36
48	WC	Maintenance & Beautification of Provincial State-Owned Attractions.	Wolwekloof Nature Reserve, Western Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-06-14	N/A	Not Applicable	R3,634,316.46	R3,072,463.11
49	WC	Maintenance & Beautification of Provincial State-Owned Attractions.	Cederberg Wilderness Area, Western Cape	2020-12-07	Practical Completion	Practical Completion Achieved	2023-06-14	N/A	Not Applicable	R3,634,316.46	R1,946,132.58
No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
50	NW	Maintenance & Beautification of Provincial State-Owned Attractions.	Mafikeng Hotel School	2022-04-04	Concept NDT	Planning and Design	2024-09-12	2024/25FY	Not Applicable
51	NW	Maintenance & Beautification of Provincial State-Owned Attractions.	Pilanesberg Nature Reserve, North West	2022-04-04	PSP Appointment	Pre-Initiation	2024-06-11	2024/25FY	Not Applicable
52	NC	Construction Planning, Procurement & Implementation	NC Platfontein Lodge	2020-12-07	Concept	Planning and Design	2023-12-27	2024/25FY	Not Applicable	R36,944,350.33	R464,114.63
53	NW	Further detailed planning & construction	NW Lotlamoreng Dam	2020-12-07	Tender / Retender	Procurement - Contractor	2024-02-11	2024/25FY	Not Applicable	R21,680,806.49	R392,300.67
54	NW	Construction Planning, Procurement & Implementation	NW Manyane Lodge	2020-12-07	Evaluation	Procurement - Evaluation	2023-11-02	2024/25FY	Not Applicable	R25,788,890.01	R392,300.67
55	LP	Construction Planning, Procurement & Implementation	LP Matsila Lodge	2020-12-07	Construction	Construction	2023-12-14	2023-12-14	Contractor is running behind schedule due to cashflow constraints on purchasing the high value items. DBSA has approved a loan facility and is assisting the contractor with purchasing of the material.	R43,036,821.09	R9,940,053.98
56	LP	Construction Planning, Procurement & Implementation	LP Phiphidi Waterfall	2020-12-07	Construction	Construction	2024-03-16	2024-03-16	Not Applicable	R24,984,745.91	R1,258,843.25

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
57	LP	Construction Planning, Procurement & Implementation	LP Oaks	2020-12-07	Construction	Construction	2024-02-07	2024-02-07	Not Applicable	R30,540,765.25	R6,582,104.00
58	LP	Construction Planning, Procurement & Implementation	LP Ngove	2020-12-07	Construction	Construction	2024-05-19	2024-05-19	Not Applicable	R35,488,790.91	R1,951,886.39
59	LP	Construction Planning, Procurement & Implementation	LP Tisane	2020-12-07	Construction	Construction	2023-12-24	2023-12-24	The Contractor had cashflow constraints that affected purchasing of material. The DBSA has approved a loan facility and the material has already been provided to the contractor.	R32,500,362.51	R10,759,639.31
60	LP	Further detailed planning & construction	LP Vhatsonga	2020-12-07	Evaluation	Procurement - Evaluation	2024-04-11	2024/25FY	Not Applicable	R34,509,658.61	R1,164,067.68
61	FS	Construction Planning, Procurement & Implementation	FS QwaQwa Guesthouse	2020-12-07	Construction	Construction	2023-09-18	2023-10-30	The design of the sewer had to be changed by engineers.	R24,619,623.73	R20,195,710.68
62	FS	Construction Planning, Procurement & Implementation	FS Infrastructure through Monontsha	2020-12-07	Practical Completion	Practical Completion Achieved	2023-09-18	N/A	Not Applicable	R7,852,914.40	R5,605,553.72
63	FS	Construction Planning, Procurement & Implementation	FS Vredefort Dome	2020-12-07	Construction	Construction	2023-10-17	2024/25FY	Contract Terminated due to poor performance of the contractor	R28,163,338.17	R7,165,192.19

No	Province	Work Package	Project Name (a)	Date IPW signed off by NDT to DBSA (b)	Status ( c)	Current Status (Planning & Design stage 1-3, Procurement (stage 4),Construction Stage 5, Close Out (stage 6-7)	Baseline Targeted Practical Completion & Occupation Date (d)	Actual & revised Practical Completion & Occupation date (e)	Comments on Delays & targets not being met (pls be precise to the point) (f)	Total Budget (PSP, Construction, DBSA Fees) (g)	Actual Total Expenditure as at End August 2023 (h)
64	NC	Construction Planning, Procurement & Implementation	NC Kamiesberg Tourism Development	2020-12-07	Design Development	Planning and Design	2024-04-15	2024/25FY	Not Applicable	R19,816,186.00	R1,016,253.44
65	EC	Construction Planning, Procurement & Implementation	EC Maluti Hiking and Horse Trail	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-07	N/A	Not Applicable	R21,953,838.99	R21,099,619.33
66	EC	Construction Planning, Procurement & Implementation	EC Mthonsi Lodge	2020-12-07	Construction	Construction	2023-11-14	2023-11-30	Delay due to inclement weather. EOT approved	R7,563,919.96	R20,649,930.73
67	EC	Construction Planning, Procurement & Implementation	EC Qatywa Eco Tourism Development	2020-12-07	Construction	Construction	2024-01-16	2024-03-12	Delay due to inclement weather. EOT approved	R39,654,075.62	R18,654,465.84
68	EC	Construction Planning, Procurement & Implementation	EC Chalets at Nyandeni Great Place	2020-12-07	Practical Completion	Practical Completion Achieved	2023-08-15	N/A	Penalties charged to contractor for late completion	R22,996,656.27	R20,600,239.42
69	EC	Construction Planning, Procurement & Implementation	EC Western Thembuland	2020-12-07	Practical Completion	Practical Completion Achieved	2023-07-07	N/A	Not Applicable	R28,333,432.75	R26,545,363.06
70	LP	Construction Planning, Procurement & Implementation	Royal Khalanga Lodge	2021-09-13	Construction	Construction	2024-03-25	2024-03-25	Not Applicable	R17,772,742.44	R2,409,864.34

Reply:

a) The Postbank currently provides banking accounts and cards to approximately 5.3 million SASSA beneficiaries. All the cards that are affected by the December deadline will be replaced as part of the Card Replacement Project Plan. The number of beneficiaries fluctuates on a daily basis as many beneficiaries have opted to migrate to other banks.

i) and (ii) Postbank has not provided details at the time of responding to this question.

b) Postbank has a phased-in Card Replacement Project Plan as follows:

• Phase 1: will focuses on SASSA regions with the largest number of beneficiaries (KZN, Gauteng, Eastern Cape, Limpopo and Mpumalanga), which account for 76% of the SASSA customer base.

• Phase 2: will focus on SASSA regions with the least number of beneficiaries (Western Cape, North West, Free State and Northern Cape), which account for 24% of the SASSA customer base

• As a contingency measure, Postbank is engaging with VISA and the South African Reserve Bank to extend the validity of cards as a contingency in the event cards cannot be distributed to all customers within the said deadline.

Reply:

The Department of Basic Education leads the implementation of Integrated School Health Programme (ISHP) working in collaboration with other relevant government departments, including DSD. This is an integrated programme with a number of interventions aimed at prevention and early intervention services for vulnerable children.

RISIHA, a community-based prevention programme works closely with local schools and assist in early identification of children in need of care and support services and complements other government interventions such as Safety Ambassadors at schools.

Reply:

1.(a) The system glitch, which resulted in payment delays affected approximately six hundred thousand (3%) of social grants beneficiaries who access their monies through the Postbank.

(i) The system glitch affected Postbank clients randomly across all the provinces. At the time of responding to this question, Postbank was conducting a proper analysis of province-specific data.

(ii) The system glitch occurred predominantly on the first day of September payment cycle, which is the pay day for the payment of Old Age Grant.

(b) and (c) The glitch within the Postbank banking system was caused by the concentrated load capacity challenge resulting in intermittent timeouts, further complicated by a failure in the auto reversal process.

(d) Postbank reported there were various attempts to defraud the system. At the time of responding to this question, we did not receive any detailed information on this matter.

(e)Matters related to penalties, if any, are covered in the Service Level Agreement between SASSA and Postbank and will be discussed at the appropriate time.

(f) As I have mentioned on many occasions, SASSA clients have the right to choose any bank into which their money will be paid, including Postbank. All clients’ requests to change bank account details are initiated by the client and processed as quickly as possible. SASSA has put in place additional resources to accommodate the increased demand for alternative banks.

(2) neither SASSA nor the Department has any direct dealings with retailers. Retailers are places where clients purchase goods and/ or exchange funds. SASSA continues to conduct beneficiary education that they do not have to withdraw their money as they can use their cards to transact like any other ordinary bank card.

(3) Yes, SASSA uses this platform to communicate directly with beneficiaries on matters related to the administration of grants. However, with regard to the system glitch SASSA could not use this platform as it does not have access to beneficiary bank accounts.

Reply:

a) There are approximately 5.3 million cards due for replacement by 31 December 2023.

(i) The regional breakdown is as per table below:

PROVINCE	Beneficiary Volume
KWAZULU NATAL	1 120 702
GAUTENG	975 063
EASTERN CAPE	745 994
LIMPOPO	717 656
MPUMALANGA	490 188
WESTERN CAPE	484 131
NORTH WEST	331 618
FREE STATE	323 604
NORTHERN CAPE	110 542
GRAND TOTAL	5 299 499

(ii) The table below illustrates the grant type affected by the December deadline:

PROVINCE	Care Dependency Grant (CDG)	Child Support Grant (CSG)	Foster Child Grant	Combination of CDG & FCG	Disability Grant	Old Age Grant	War Veteran Grant	Grand Total
KWAZULU NATAL	11 634	712 022	8 945	204	72 710	265 839	1	1 071 355
GAUTENG	9 331	648 802	10 966	210	41 916	315 252	2	1 026 479
EASTERN CAPE	7 677	488 694	16 082	378	58 151	226 837		797 819
LIMPOPO	5 339	427 652	10 068	143	34 113	222 683		699 998
MPUMALANGA	5 057	338 979	6 671	125	34 974	138 790		524 596
WESTERN CAPE	5 682	311 996	5 695	187	36 214	148 245	2	508 021
NORTH WEST	2 482	189 266	4 662	89	17 181	101 027	1	314 708
FREE STATE	3 463	211 542	5 522	160	26 261	94 629		341 577
NORTHERN CAPE	1 311	65 481	1 610	80	9 794	30 022	1	108 299
Grand Total	51 976	3 394 434	70 221	1 576	331 314	1 543 324	7	5 392 852

b) Work is currently underway to meet the December deadline and Postbank will make necessary information available to the public.

c) Refer to (b) above.

d) I cannot pre-empt the outcome of a procurement process of the Postbank. This is an administrative process that does not involve the Executive Athority.

e) Refer to (d) above.

Reply:

a) In line with Section 27 of the Constitution of the Republic of South Africa, the Social Assistance Act makes provision for all eligible persons to receive the necessary support in the form of social grants. SASSA has a national footprint, and any homeless person can approach the Agency personally to apply for social assistance. Non-Profit Organisations supporting homeless people could also direct them to SASSA offices for assistance.

The Department is in the process of establishing a Joint Technical Working Team, comprising of the Department of Home Affairs and SASSA to deal with identity documents challenges for social grant beneficiaries, including people living and working on the streets. A 2-year strategy is being developed that will enable the three institutions to work jointly to expedite birth registration and or ID applications of all beneficiaries on the alternative identity system.

b) The process of developing the policy on homeless has commenced guided by the diagnostic study on homelessness. The Draft Policy is envisaged to be in place by the end of the current financial year (2023/24). The consultation process will commence during 2024/2025.

Reply:

1. The financial obligation with respect to the development of the National State Enterprises Bill is borne by the Department of Public Enterprises. For 2023/24, budget has been allocated and ring-fenced for the necessary external project support and expertise under the Departmental funds for the processing of the Bill. Working capital of the Holding Company will need to be secured, and consultation with the National Treasury is on-going in this regard.

2. (a) Preliminary costing of the HoldCo has been done on the basis that it shall become self-sustainable in the short term. The Holding Company will derive dividends from its subsidiary companies and it is envisaged that this income stream will be sufficient to cover its operational costs.

(b) The closure, merger or restructuring (some which is already happening, e.g. in Small Business Portfolio) will be considered by government on the basis of recommendations of the PSEC.

Remarks: Reply: Approved / Not approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

Considerations for continued financing and expanding of public employment programmes such as the Expanded Public Works Programme and the Presidential Employment Stimulus programme are part of such the budget process, and the outcome of this process will be announced in the 2023 Medium Term Budget Policy Statement.  

Reply:

(a) National Treasury initiated the process of stopping and re-allocation at the end of the second quarter of the 2022/23 municipal financial year, 31 December 2022 and conducted an analysis of the conditional grants performance.

The reasons that informed National Treasury to stop R2.7 billion transfers of conditional grants are:

• Anticipation that a municipality shall substantially underspend the allocation or any programme; and
• Serious or persistence material breach of the Division of Revenue Act.

This decision was considered to safeguard the allocations against possible misuse of the funds and prevent funds from being utilised for operational activities.

1. (b) (i) The grants that were affected are:

Capital grants:

• Water Services Infrastructure Grant 5B;
• Regional Bulk Infrastructure Grant 5B;
• Public Transport Networks Grant (PTNG);
• Urban Settlements Development Gran
• Informal Settlements Upgrading Partnership Grant;
• Neighbourhood Development Partnership Grant 5B
• Integrated National Electrification Programme 5B;
• Municipal Infrastructure Grant; and
• Integrated Urban Development Grant.

Capacity Grants:

• Rural Roads Asset Management System; and
• Energy Efficiency and Demand-Side Management Grant.

1. (b) (i) The effect of the stopped funds are:

• The affected municipalities would not be able to implement their full budgeted plan against their programmes;
• Municipalities have to reprioritise the remaining funds against committed and shovel ready projects;
• National Treasury has an opportunity to reallocate the stopped funds (The entire R2.7 billion was reallocated to fast spending programmes between best performing municipalities) to other fast-moving projects in other municipalities; and
• Persistent non-compliance to the Act and anticipated underspending implies that transferred funds may lead to fiscal dumping and possible conditional grants misuse

2. National Treasury used the second quarter reports (Section 71 of MFMA) for the period ending 31 December 2022 and the monthly DoRA reports (Section 10 of 2022 DoRA) received from the transferring officers as a benchmark to decide on municipalities that are underperforming against their allocations.

A benchmark between 40 and 45 per cent against the total allocation was used in determining the list of the proposed municipalities which were considered for stopping after six months into the financial year.

3. The stopping process in terms of Section 18 of DoRA is purely performance based. This section stipulates that National Treasury may in its discretion or at the request of a transferring officer stop the transfer of schedules 4, 5 or 6 allocation if it is anticipated that a municipality shall substantially underspend on the conditional grants that are partially or fully funded by the allocation in the respective financial year.

National Treasury invokes the stopping and reallocation section in the DoRA on an annual basis as part of the monitoring work on the performance of municipalities. When this opportunity arises, municipalities that have improved on their performance and have lost their fund previously are given preference on the reallocation of the allocation in terms of section 19 of DoRA.

4. The National Treasury used the second quarter reports (Section 71 of MFMA) for the period ending 31 December 2022 (mid-year) and the monthly DoRA reports (Section 10 of 2022 DoRA) as submitted by Transferring Officers (national departments administering conditional grants). These reports were used to determine, which municipalities were underspending against their conditional grants and earmarked for stopping of a portion of their conditional grants, i.e., municipalities that had expenditure of less than 40 per cent (for municipalities with allocations of less than R100 million) and 45 per cent (for municipalities with allocations of more than R100 million) of their allocations as at mid-year of the 2022/23 municipal financial year.

Reply:

TVET COLLEGES

a) The direct payment process was introduced at TVET colleges in the last quarter of 2022, with the first payment made in November 2022, although engagements had started in September 2022. The 2023 academic year saw a continuation of this allowance payment method across all 50 TVET colleges.

To fully support the students with this new direct payments process, during the January / February student registration period, the TVET institutional support team, through the NSFAS Servicing Administrators, conducted working visits at their assigned institutions. During this period, the NSFAS team spent a month deployed in the regions, from 16 January 2023 to 17 February 2023. After this period, there has been instances where some colleges have been visited on an ad hoc basis dependent on what issues the college was facing.

b) (i) Most recently the NSFAS Team was deployed to TVET colleges for the purposes of assisting with challenges, including direct payments, from Monday 18 September 2023 to Friday 22 September 2023.

(ii) The teams were at the colleges for a period of a week.

c) Number of students who ultimately successfully completed KYC as a result of this week cannot be specified, as the KYC process takes place on the direct payment partner platform.

UNIVERSITIES

a) Preparing for the direct payments made for July 2023 allowances, NSFAS initiated a comprehensive process. Initially, NSFAS working with the direct Payment partner began by actively collaborating with institutions and the Student Representative Council (SRC) to define the procedural steps and address any queries or concerns they might have had. Subsequently, during the Month of July and August 2023 NSFAS dispatched resources to these institutions, providing valuable assistance during the onboarding process and offering timely responses to any inquiries that arose.

b) I) Continuing in its commitment to streamline the payment process, NSFAS, in conjunction with its direct payment partners, maintains ongoing engagement with institution management and the SRCs. This proactive approach ensures that any identified issues are promptly addressed. Whenever necessary for NSFAS to visit institution, additional resources are deployed to work closely with institutions, in ensuring that all outstanding matters are effectively resolved by NSFAS and the direct payment partners.

ii) It is not possible to specify the exact number of students who successfully completed the Know Your Customer (KYC) process this week, as the KYC procedure occurs on the direct payment partner's platform.

Reply:

a) The matter is currently receiving attention from myself and the Minister of Communications and Digital Technologies to ensure there is no recurrence. To date, all failed transactions have been corrected.

b) The matter related to compensation, if any, will be discussed as part of the Service Level Agreement between SASSA and Postbank. I therefore, do not want to pre-empt the outcome of this process at this stage.

 

Reply:

1. SASSA suspended outreach programmes during the outbreak of the COVID-19 pandemic in line with the national state of disaster regulations. Subsequent to the lifting of the COVID-19 restrictions in 2021, SASSA gradually commenced with restoring all direct client services. To date, the Integrated Community Registration Outreach Programme (ICROP) is being implemented by local offices in all nine provinces.

2. Refer to Annexure A

(a) The government wide cuts to the Compensation of Employees (COE) budgets across Government has adversely the filing positions within SASSA. SASSA continues to prioritise the filling of funded posts, with specific focus on front- line staff (based at local offices) with the limited resources allocated each financial year. SASSA is also looking at innovative ways (including digitisation of certain functions) to reduce the demand for direct interaction with clients. In addition to this, it is important for the Honourable to note:

• Currently there are 7 433 posts filled. Of this number, 4 994 (67%) of the are based at local office layer, which forms part of the front-line staff;

• Filling of some of the posts has been put on hold due to the Business Process Re-Engineering currently underway. This might result in the adoption of a new organisational structure in line with the strategic plan.

• The National Treasury’s Cost Containment Circular directs all departments and agencies, SASSA included, to absorb the wage bills from their respective allocation of the Compensation of Employees budget.

(b) Refer to (a) and (b) above.

(c) Refer to 1 above. The implementation of ICROP is ongoing and SASSA utilises local media, including community radio stations and tribal councils to inform local communities.

• Breakdown of the filling of posts within the Local Offices in each SASSA Regional Office:

REGION	2020/2021 FY	2021/2022 FY	2022/2023 FY	2023/2024 FY
	FILLED LOCAL OFFICE POSTS	APPROVED FUNDED VACANCIES - LOCAL OFFICE	TERMINATIONS	FILLED LOCAL OFFICE POSTS	APPROVED FUNDED VACANCIES - LOCAL OFFICE	TERMINATIONS	FILLED LOCAL OFFICE POSTS	APPROVED FUNDED VACANCIES - LOCAL OFFICE	TERMINATIONS	FILLED LOCAL OFFICE POSTS	APPROVED FUNDED VACANCIES - LOCAL OFFICE	RECOMMEDED (STILL TO BE APPROVED)	TERMINATIONS
EC	875	14	47	885	12	32	885	5	35	867	3	11	12
FS	336	4	10	306	10	15	311	2	10	302	2	6	4
GP	644	13	16	624	5	19	611	4	18	603	3	8	7
KZN	1148	22	52	1112	45	26	1102	4	25	1095	3	17	8
LP	629	16	29	604	12	21	581	5	24	575	4	13	4
MP	343	6	9	350	14	4	343	6	8	340	4	6	4
NW	464	14	12	453	4	10	437	1	25	434	3	7	2
NC	281	7	7	280	14	11	273	10	12	271	4	3	2
WC	569	16	24	535	10	11	518	9	18	507	7	3	11
Grand Total	5289	112	206	5149	126	149	5061	46	175	4994	33	74	54

(b) All services have been restored post COVID.

(c) The schedule for community outreaches are planned with key local stakeholders through the various local stakeholder forums; who also assists with informing the communities on the planned activities. SASSA also conducts “loud hailing” before the outreach.

Reply:

Wheeling refers to a regime where private generators are allowed to sell directly to eligible customers by signing a use of system agreement with the transmission and distribution network owners. For eligible customers connected to the Eskom network, the process for entering into a wheeling agreement requires an amendment to the customer’s existing supply agreement with Eskom, which will allow the customer’s electricity bill to be adjusted (to be credited) to take account of wheeled energy. This type of wheeling requires an amendment to the customer’s existing supply agreement is called traditional wheeling, and it is limited to connections on the high voltage and medium voltage networks.

Virtual wheeling, however, eliminates the need for amendments to supply agreements and expands wheeling to customers connected at low voltage networks. This enables entities like banks, hotels, corporate offices, and retailers to wheel energy from private generators.

Virtual wheeling is designed to work alongside traditional wheeling arrangements, not replace them. Additionally, Eskom will contract the buyer of energy directly, without the need to contract with off-takers (load customers), including municipalities. As a result, there will be no impact on municipal revenue, and this distinguishes virtual wheeling from the traditional wheeling approach.

Currently, the project will be executed on a pilot basis between Eskom and Vodacom to enable Eskom to test the systems and resource capabilities before the official country wide roll-out.

The smart meters and cables that will be required by buyers and offtakes of electricity are already supported by a local market.

(b)

There is no requirement for municipalities to invest in large-scale systems and cloud servers. Eskom will invest in a digital tool known as a virtual wheeling platform to facilitate the virtual wheeling and this will integrate with buyer platforms. This wheeling platform is required to support the aggregation, processing and provision of generation and consumption data to calculate the wheeled energy refund.

Virtual wheeling requires the measurement and reporting of energy generated and consumed on a time-of-use basis and this is allocated by buyers of electricity to their off-takers. All off- takers will need to be equipped with the necessary meters capable of supporting these functions. The investment will need to be made by the buyers and/or off-takers (load customers) and not municipalities.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(a) Gross debt of the national government is disclosed in Table 7.7 of the 2023 Budget Review. It is estimated to reach R5.06 trillion or 72.2 per cent of GDP by the end of the 2023/24 Financial Year.

(b) (i) Government guarantee exposure to state-owned companies is disclosed on Table 7.10 on page 91 of the 2023 Budget Review, and these are explicitly underwritten. Other contingent liabilities are included with the provisions in Table 7.11 on page 92 of the 2023 Budget Review.

(ii) There is no debt (borrowing) or loans taken up by municipalities that have been underwritten by the national fiscus.  Chapter 6 of the MFMA sets the legal framework that enables municipalities to take their own decisions regarding borrowing. Specifically, sections 50 and 51 of the MFMA deal with municipal guarantees and national and provincial guarantees.

This decision-making process for Municipal Councils were empowered by the Amendment to the Constitution of the Republic, in section 230A.  Therefore, Municipalities borrow on the strength of their own financial standing and status.

Reply:

Government is working to manage public finances in a prudent and sustainable manner. This includes appropriately responding to the materialization of risks, include unforeseen economic and financial conditions. To be clear, the Government has not run out of money. Government publishes the "Statement of the National Government’s Revenue, Expenditure, and Borrowing" monthly, available on the National Treasury website. This statement provides detailed information into government revenue collections, expenditure and borrowing.

Revenue collections for the first four months of 2023/24 have performed below expectations, primarily due to under-collections in corporate income tax and higher VAT refunds. Therefore, the main budget deficit for the first four months of 2023/24 is higher than expected.

Compared to the 2023 Budget, the economic and revenue outlook has deteriorated, and tighter financial conditions have constrained government’s borrowing programme and led to higher borrowing costs. Government remains committed to prudent fiscal management and addressing these challenges to ensure the financial stability of the nation.

Reply:

1. (a) & (b)

There is no official proposal to introduce a new BRICS currency at this point.

The current discussion on facilitating trade and finance amongst the BRICS members is captured in the Johannesburg Declaration where BRICS Leaders highlighted the following:

“We stress the importance of encouraging the use of local currencies in international trade and financial transactions between BRICS as well as their trading partners. We also encourage strengthening of correspondent banking networks between the BRICS countries and enabling settlements in the local currencies. We task our Finance Ministers and/or Central Bank Governors, as appropriate, to consider the issue of local currencies, payment instruments and platforms and report back to us by the next Summit”.

In the BRICS Finance Track, Finance Ministers and Central Bank Governors will resume discussions regarding the instruction from the leaders to explore payment instruments and infrastructure of using local currencies for enhance trade.

2. As stated before, BRICS countries are not establishing a BRICS common currency.

To date, the United States and the European Union remain one of the largest trading partners of South Africa. South Africa trade relations with the United States and the European Union are governed by existing trade agreements with these trading partners. Any changes in the trade agreements are negotiated and agreed between the two countries.

Reply:

According to the information received from Eskom

1. (a)

The Karpowership projects are three of 11 preferred bidders selected under the Risk Mitigation IPP Programme (RMIPPP), which have applied for and been provided Budget Quotations in line with the procurement process and the associated grid application process. There is therefore no prioritisation of these projects over others.

1 (b)

Please see answer 2 below.

2. (a) and (b)

It is acknowledged that the Risk Mitigation IPP Programme has faced delays due to the changes in global economic conditions which have impacted these projects’ ability to reach commercial close. As a result, the Department of Mineral Resources and Energy (DMRE) as procurer, has communicated a long stop date for the RMIPPP of 31 December 2023, by which time the projects under this programme will have to achieve legal close. Accordingly, the Budget Quotations issued to all the remaining preferred bidders under the Risk Mitigation IPP Programme have been extended to 31 December 2023, to enable these projects to achieve legal close.

3 (a)

It is to be noted that Eskom has not concluded on the issue of reservation of capacity, thus there is no policy that defines reservation of capacity. However, in terms of section 22(2) of the Electricity Regulatory Authority (ERA), the licence holder is permitted, with the concurrence of NERSA, to discriminate for objectively justifiable and identifiable reasons. The purpose of the reservation of capacity, to the extent that it is approved by the relevant stakeholders including the Regulator, will be to secure an orderly allocation of access to the grid.

The context is that currently there is saturation of the grid by private parties. Often, private parties request access to the grid without shovel-ready projects and this prejudices those projects that can demonstrate readiness, including the government section 34 programme, which ought to go through, among others, regulatory and other approvals (e.g., PFMA), whereas private parties are not subjected to these onerous processes.

The formal IPP programmes are initiated following the section 34 determinations issued by the Minister of Mineral Resources and Energy in terms of the Electricity Regulation Act and concurred to by NERSA, which are administrative actions. The preferred bidders to these programmes therefore apply for and are provided with Budget Quotations. Any extensions to the Budget Quotation validity for the section 34 IPP preferred bidder projects are taken in line with a request from the preferred bidder and having due consideration of the time required for the attainment of certain approvals (required by either the Procurer or the Buyer) and the associated legal and financial commercial close dates as communicated by the Department of Mineral Resources and Energy.

3 (b)

Please see the response under Question 2.

 

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

The Municipal Regulations on a Standard Chart of Accounts (mSCOA), Gazette No. 37577, 2014, was promulgated on 22 April 2014. All municipalities and municipal entities had to comply with the mSCOA Regulations by 01 July 2017. In terms of mSCOA, municipalities should budget, transact and report on all six (6) legislated mSCOA segments and submit the required data strings as per the legislated timeframes to the National Treasury’s Local Government Database and Reporting System (LGDRS). The budget and adjustments budgets adopted by Council must be locked on the core municipal financial system before submitting the data strings to the LGDRS. Most of the municipal financial systems have built-in controls that do not allow transacting if the budget or adjustments budget has not been locked. Also, Section 65(2)(j) of the MFMA requires that the accounting officer must take all reasonable steps to ensure that all financial accounts of the municipality are closed at month-end and reconciled with its records before submitting the monthly data string to the LGDRS.

As communicated in MFMA Budget Circular No. 123 dated 03 March 2023, the LGDRS is locked on the 10th working day of the month following the legislated deadline. The late submissions of data strings are not accepted by the LGDRS. The timeous submission of credible mSCOA data strings to the LGDRS has been included in the equitable share release criteria for 2023/24 that was communicated in MFMA Circular No. 122 (dated 09 December 2022).

Since the financial system must be locked at the end of the month to generate mSCOA data strings, municipalities may not open during closed periods to correct errors. Errors must be corrected in the next open period. Providers of municipal financial systems have also been instructed by the National Treasury in 2019 to ensure that the necessary internal controls are built into the financial system to prevent the opening during closed periods on the financial system and the bypassing of such controls.

Reply:

(i) NATIONAL TREASURY

Financial years	(a) Total amount	(b) Name of supplier	(c) Total number of copies printed
(aa) (i)(ii) 2020-21	The Annual Report was not printed.
(bb) (i)(ii) 2021-22	R87 845,28	Lebone Litho Printers	120
(cc) (i)(ii) 2022-23	Not in printing process yet.

(ii) ENTITIES

1. Accounting Standards Board (ASB)

From the Accounting Standards Board

We do not print our Annual Report/Integrated Report/Annual Financial Statements. All our reports are made available electronically.

2. Co-operative Banks Development Agency (CBDA)

Reference	Financial Year	Amount Paid	Copies	Supplier
2742(a)(aa)	2020-21	Nil	Nil	Not Applicable
2742(a)(bb)	2021-22	Nil	Nil	Not Applicable
2742(a)(cc)	2022-23	Nil	Nil	Not Applicable

3. Development Bank of Southern Africa (DBSA)

4. Financial Intelligence Centre (FIC)

(a) (ii) (aa) 2020-21 – R0

(bb) 2021-22 – R0

(cc) 2022-23 – R0

(b) Not applicable

(c) (i) and (ii) Not applicable. The Financial Intelligence Centre did not produce printed copies of its annual reports in the 2020-21, 2021-22 and 2022-23 financial years.

5. Financial Sector Conduct Authority (FSCA)

(a) The total amount (ii) Financial Sector Conduct Authority (FSCA) printed copies of the annual reports in;

(aa) 2020 – 2021: 150 total copies

RP292/2021

ISBN: 978-0-621-49765-6

Title of Publication: Annual Report 2020/2021 Financial Sector Conduct Authority (FSCA)

Printing costs: R44 676.35

Supplier: Shereno Printers

(bb) 2021 –2022: 150 total copies

RP282/2022

ISBN: 978-0-621-50641-9

Title of Publication: Annual Report 2021/2022 Financial Sector Conduct Authority (FSCA)

Printing costs: R47 356.93

Supplier: Shereno Printers

(cc) 2022 – 2023: 150 total copies

RP249/2023

ISBN: 978-0-621-51379-0

Title of Publication: Integrated Report 2022/2023 Financial Sector Conduct Authority (FSCA)

Amount spent: R34 859.59

Supplier: Blackmoon

NB: The 2022/2023 report has not been printed. The figures provided are based on the quotation received from the service provider.

5. Government Employees Pension Fund (GEPF)

7. Government Pensions Administration Agency (GPAA)

(i) Not Applicable to the GPAA

(ii) The table below sets out the amount the GPAA paid for printed copies of the integrated annual reports, the utilised service provider and printed the number of copies in the respective years:

Financial Year	Service Provide	Number of Copies	Amount
(aa) 2020-21	Ulutsha Communication	200	R30 000.00
(bb) 2021-22	Ulutsha Communication	500	R77 250.00
(cc) 2022-23	No expenditure incurred to date

8. Government Technical Advisory Centre (GTAC)

(aa) R17908.95, 40 copies printed.

(bb) R10519.05, 25 copies printed.

(cc) R0, no copies printed.

(b) Grounded Media supplied printed copies in each case.

(c) 65 copies were printed in total.

(i) 40 copies printed in (ii) 2020-21 and 25 copies in 2021-22. No copies have been printed in 2022-23.

9. Independent Regulatory Board for Auditors (IRBA)

10. Land and Agricultural Development Bank of South Africa (Land Bank)

1. Land Bank has not printed Integrated Annual Reports for FY2020-21, FY2021-22, and FY2022-23. The Bank has only produced electronic versions of the Integrated Annual Reports for the specified period.
2. Land Bank did not procure any suppliers for the printing of the Integrated Annual Reports.
3. No Integrated Annual Reports were printed by the Bank.

11. Office of the Ombud for Financial Services Providers (FAIS Ombud)

Integrated Reports:

The FAIS Ombud has incurred no expenditure with respect to Integrated Annual Reports for the financial periods 2020-21 to 2022-23.

Annual Reports:

Annual expenditure incurred by the Office on the publication of annual reports for the financial periods 2020-21 to 2022-23 is as follows:

NO	Financial Period	Service Provider	No. of Copies	Amount
1.	2020-21	Lebone Litho Printers	150	R54,353.45
2.	2021-22	Litha Communications	150	R96,340.68
3.	2022-23	Lezmin 2771 CC	50	*R83,317.60

* Amount as per signed purchase order. As at 4 September 2023, the payment for the 2022-23 annual report has not been processed.

12. Office of the Pension Funds Adjudicator (OPFA)

Question	2020-21(aa)	2021-22(bb)	2022-23(cc)
(a)	R112 299.62	R99 690.05	R122 245.00
(b)	Broadsword Communication	Broadsword Communications	Seriti Printing Digital
(c)	100 printed copies (Including design and editing)	100 printed copies (Including design and editing)	100 printed copies (Including design and editing)

13. Office of the Tax Ombud (OTO)

14. Public Investment Corporation SOC Ltd (PIC)

(a)(ii)

(aa) 2020/21 Book one: Integrated Annual Report at a cost of R84 500 (excluding VAT); and Book two: Annual Financial Statements at a cost of R55 643.50 (excluding VAT).

(bb) 2021/22 Book one: Integrated Annual Report at a cost of R93 705 (excluding VAT); and Book two: Annual Financial Statements at a cost of R65 015 (excluding VAT).

(cc) 2022/23 Book one: Integrated Annual Report at a cost of R131 400 (excluding VAT); and Book two: Annual Financial Statements at a cost of R58 200 (excluding VAT).

(b)

(b) Msomi Africa Communications was the supplier for all three of the above-mentioned financial years.

(c)

(i) and (ii)

2020/21 700 copies printed

2021/22 500 copies printed

2022/23 800 copies printed

15. Sasria SOC Ltd

2020-2021: R29,500-00 (Exl VAT); Msomi Africa Communication (PTY) Ltd; 100 printed copies [R295-00/copy]

2021-2022: Quoted R11,800-00 (Exl VAT); Msomi Africa Communication (PTY) Ltd; 30 printed copies [R393-33/copy]

2022-2023: Not yet finalized

16. South African Revenue Service (SARS)

a) (ii) (aa) (bb) (cc) SARS did not print annual reports for the 2020 – 2021 financial years. The annual report was only printed for the 2022-23 financial year at the total amount of R140 000.

b) The supplier who was appointed for SARS annual report printing is Shereno Printers.

c) (i) (ii) The total number of copies that were printed was 250 for the 2022-23 financial year.

Reply:

Illicit financial flows (IFFs) take a variety of forms and are addressed by several bodies, including SARS. SARS takes action with respect to IFFs that have a tax or customs aspect in terms of the Income Tax Act, 1962, Customs and Excise Act, 1964, and other legislation it administers.

A General Anti-Avoidance Rule (GAAR) is included in the Income Tax Act, 1962, as Part IIA of Chapter III of the Act. The GAAR permits SARS to counter impermissible tax avoidance arrangements that would not be addressed by the other provisions of the Act. While impermissible tax avoidance arrangements may involve IFFs, they may also be restricted to purely domestic arrangements or involve cross-border flows that would otherwise be considered legitimate. Another GAAR is provided for in section 73 of the Value-Added Tax Act, 1991, which deals with schemes for obtaining undue tax benefits in that context. SARS may also make use of common law doctrines, such as “substance over form”, in challenging abusive arrangements.

In addition, a reportable arrangements system is included in the Tax Administration Act, 2011, as Part B of Chapter 4 of the Act. The reportable arrangements system provides for the reporting of arrangements that present a heightened risk of undue tax benefits by their participants or promotors to SARS.

Supplementing the GAAR, South Africa also has tax legislation dealing with more specific avoidance concerns. These include interest limitation rules (recently amended), thin capitalisation rules, controlled foreign company (CFC) rules, as well as transfer pricing rules.

Where SARS identifies IFFs with a tax or customs impact, either through its own efforts or in cooperation with other government entities, SARS applies the legislation and legal tools at its disposal to address the IFFs.

Addressing IFFs remains a consistent and key focus for SARS, the South African Reserve Bank, the Financial Sector Conduct Authority, the Financial Intelligence Centre, the National Prosecuting Authority, the Special Investigating Unit, the Hawks, South African Police Service, and the National Treasury. In this regard, South Africa is actively involved in international efforts aimed at mitigating the problem. Key steps taken in recent times include:

• Becoming a member of the Global Forum of transparency and exchange of information for tax purposes in 2009
• Signing the Multilateral Convention in 2011
• Introducing a Voluntary Disclosure Programme (VDP) in 2012
• Signature of the FATCA Intergovernmental Agreement in 2014
• Introduction of the temporary Special VDP in 2016
• First tax information exchange under the Common Reporting Standard (CRS) in 2017
• Agreeing to the proposal for a minimum global tax rate (Pillar 2) to minimise global financial flows to tax havens (2021)

Reply:

According to the information received from Eskom

1. On 27 July 2023, Ditsobotla Local Municipality (the Municipality) and other Eskom customers were affected by a loss of supply due to a pylon that fell onto the 88kV powerline between Watershed Transmission substation to the Lichtenburg Distribution substation.

2. As the fallen structure was being repaired, Eskom observed oil leakages on Transformer 2 at Lichtenburg substation. Upon investigation it was discovered that the transformer was damaged in order to steal copper. As a result, the transformer required replacement.

3. Supply was restored to the substation and surrounding areas via Transformer 1. However, during this period only 10 MVA out of the 17 MVA that is required for peak capacity was available to the municipality to supply its customers.

4. A new replacement transformer was identified in Gauteng, with an estimated cost of R6.9 million inclusive of the transport, installation and commissioning.

5. Transformer 2 was installed but not energised, as the Municipality had not paid its current account in full since April 2022. By way of background, a court order in 2017 ruled for eight (8) applicants who are customers of the Municipality, to pay their electricity bills directly to Eskom. These eight consumers are embedded in the Municipality’s electricity network and Eskom relies on the Municipality, as the co-respondent in terms of the court order, for the availability of supply and billing for electricity.

6. Eskom therefore requested that the Municipality pays for the cost of replacing the transformer, their current account, and three months' accounts in advance before the transformer would be energised.

7. Whilst negotiations regarding payment arrangements were underway, it was discovered that Transformer 1 at Lichtenberg substation was experiencing oil leaks.

8. A decision was taken by Eskom to switch on Transformer 2 and remove Transformer 1 for repairs.

9. Engagements with various stakeholders were held and following the repair and commissioning of Transformer 1, the supply to the Municipality was restored.

10. Eskom confirmed that discussions are continuing with the Municipality, the North-West Province, organised business and other stakeholders to find a sustainable solution for electricity supply to the businesses and residents of the Municipality.

11. There is no evidence of “alleged unconstitutional practices” nor “unethical business practices”.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

(1)(a) Creditors with outstanding invoices have been encouraged to escalate matters to the National Treasury through the helpdesk facilities, [email protected], and [email protected], respectively. These are followed up with the respective Municipal Manager and Chief Financial Officer. Copies are also forwarded to the relevant provincial treasuries for their additional oversight, monitoring and facilitation of engagements with the relevant municipality, where required.

(1) (b) Section 65(2)(e) of the Local Government: Municipal Finance Management Act, 2003 (MFMA), requires the Accounting Officer to take all reasonable steps to ensure that all money owing by the municipality be paid within 30 days of receiving the relevant invoice or statement. The National Treasury has issued MFMA Circular 49 which includes a step-by-step approach to be adopted by municipalities to ensure that they consistently fulfil their financial obligations. Additionally, National Treasury has issued standard operating procedures for municipalities in relation to expenditure and liabilities management. These matters are also addressed when requested to develop Financial Recovery Plans.

(2) (a) The National Treasury publishes regular reports as required by section 71 of the MFMA. The latest publication of the Local Government Revenue and Expenditure: Fourth Quarter Local Government Section 71 Report, for the period 1 July 2022 to 30 June 2023, reflects amounts owed by municipalities to creditors for more than 30 days of R75,9 billion for the 4th Quarter of the financial year. The details of which, are available on the National Treasury website.

(2)(b) Accountability arrangements in the MFMA requires the Municipal Council and the Municipal Manager to take disciplinary action against officials responsible for non-compliance with internal control measures.

Reply:

One of the key components of the budget is the economic development function, through which funds are allocated to promote sustained and inclusive economic growth, and to address unemployment, poverty and inequality. The various areas of spending include economic infrastructure, industrialisation and exports, innovation, science and technology, agriculture and rural development and job creation. Details of the expenditure are included in the budget documents of the past three years.

The economic recovery plan announced in October 2020 links infrastructure investment and related institutional reforms to support higher economic growth. Government has made progress in implementing the economic recovery plan including in the electricity and transport sectors, roll out of critical infrastructure in water and sanitation, energy and transport as well as the presidential employment initiative.

Public-sector infrastructure expenditure increased from R187.4 billion in 2019/20 to R212.3 billion in 2021/22, and an estimated R255.2 billion in 2022/23. These funds were mainly used to expand power generation capacity, upgrade and expand the transport network, improve sanitation and water services and for social services infrastructure.

Since the inception of the budget facility for infrastructure, a total of R56.8 billion has been approved and allocated to the relevant infrastructure projects, including Limpopo Central Hospital, Gauteng Schools Programme, SA Connect, and Rural Bridges Programme. Since inception, the Infrastructure Fund has helped to package and approve 13 blended finance projects and programmes to the value of R48.8 billion.

Government is working on several reforms to strengthen public investment management and the associated value chain. Many of these involve pooling resources with the private sector in blended finance initiatives aimed at funding and implementing infrastructure projects more effectively.

Reply:

According to the information received from TRANSNET

Background:

Transnet prefers retaining the container corridor and to sell slots to third party operators whilst operating some slots but in the absence of immediate financial support for the maintenance of the infrastructure, both the current and the backlog, entering into a 20-year operating lease with a private company is the best option available to keep this important corridor open. Transnet approached the market for a partner to enter into an operating lease for 20 years in order to invest in and grow freight on the corridor that is the backbone of the country’s manufacturing sector. Careful consideration was given to the profile of the potential private partner for the planned Container Corridor Operating Lease. The ideal partner must have an established presence in the supply chain; the ability to leverage Transnet and other rail terminals in rail-based logistics solutions; have access to inexpensive capital and the ability to introduce more efficient procurement.

The Container Corridor is 100% electrified. The challenges with the electrified sections of the rail network are two-fold, namely energy insecurity and the increasing (high) levels of copper cable theft. Transnet has invested and will continue to invest in back-up power generation in areas of its business most affected, within its financial means.

As indicated during the SONA 2023 address, Transnet must implement the following actions to comply with the approved National Rail Policy:

Introduction of an Infrastructure Manager, independent of the Train Operating Companies by October 2023 is a prerequisite to allow network access for private train operating companies by April 2024, and

Set up the necessary structures and processes to comply with impending regulation of the Infrastructure Management function as set out in the Economic Regulation of Transport Bill.

In accordance with the terms of the Operating Lease agreement that Transnet will enter into with the private sector partner, it will allow Transnet to ensure operating and efficiency standards are maintained with requisite penalties for non-performance. The Infrastructure Manager will be responsible for ensuring compliance with the conditions of the lease.

Notwithstanding the above, the Board of Transnet will review the appropriate responses to the challenges of the container corridor.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date:

Reply:

1. In line with the findings and recommendations of the Nugent Commission of Inquiry, SARS has implemented an improved integrated and collaborative enforcement approach to address issues related to Illicit Financial Flows (IFFs). Various units operating collaboratively have been established to provide a credible response to the threat/risk brought about by IFFs in line with the SARS strategy, to make it hard and costly for taxpayers and traders who do not want to comply. They include:

• STCC, which deals with Syndicated Tax and Customs Crime;
• CI, which deals with criminal investigations involving tax and customs crimes;
• LBI dealing with Large Business and International;
• PIRE dealing with Priority Individuals and Related Entities;
• HWI dealing with High Wealth Individuals and;
• Specialised Audit.

2. All allocations are determined as part of the budget process. If a court decides that recovered money must go into the Criminal Assets Recovery Account (CARA), then funding is allocated in terms of Section 69A of the Prevention of Organised Crime Act of 1998 (POCA) that provides for the allocation of funds to law enforcement agencies and organisations rendering assistance in any manner to victims of crime.

Section 65 of POCA establishes a Criminal Assets Recovery Committee (CARC), which is responsible for providing Cabinet with recommendations on the utilisation of money deposited into CARA and providing advice on specific issues related to the criminal assets recovery process. It consists of the Ministers of Justice and Correctional Services (MoJCS - Chairperson), Police and Finance, the National Director of Public Prosecutions, and, if necessary, two other persons designated by the MoJCS.

3. (a) SARS, like any other entity/department which requires funding from the fiscus, participates in the budget process through which funds are allocated for different priorities and programmes of government.

(b) In 2019, SARS established the Liaison Unit with the aim to strengthen whole-of government collaboration but, particularly, with the law enforcement agencies, the FIC, the AFU, and SARB. This includes:

• Exchanging taxpayer and customs information lawfully;
• Collaboratively executing investigations and prosecutions;
• Sharing resources like people, data, and technology to enhance efficient and effective expenditure by agencies in support of national compliance generally and tax compliance in particular.

 

Reply:

a) What is the total number of transactions that have been concluded since the launch of the blended finance with the Land Bank in October 2022?

The total number of approved transactions as at 31 Aug 2023: 71

Total value of approvals as at 31 Aug 2023: R591.3 million (R279.9 million of loans, and R311.4 million of grants)

Total disbursements amount as at 31 Aug 2023: R153 million (R77 million of loans, and R76 million of grants)

b) For which commodities were the transactions?

Commodities of Approved Transactions as at 31 August 2023
Avocados	Nuts (Macadamia and pecan nuts)
Bananas	Poultry
Dry Beans	Raisins
Citrus	Sugarcane
Grains and Oilseeds	Table Grapes
Livestock (Red meat)	Vegetables

 

(c) What are the reasons that there have been delays in finalising incomplete transactions, including those of acquiring livestock farms?

(i) Reasons for delays in finalizing applications

1. Clients not submitting all the required application information simultaneously. The quality and accuracy of business and financial information contributes to the waiting time during which the processing of the transactions are paused until all the critical information is submitted.

2. Applications not viable and financial projections indicative of the business’s inability to service the loan – at times this leads into the submissions being reworked by the clients.

3. Lack of adherence to environmental and regulatory requirements such as environmental impact assessments, sufficient water volumes and water licenses. These issues generally take long to resolve, and are handled externally by the client through the relevant government departments. The application cannot be finalised without these matters being confirmed.

4. Poor credit records where clients need to resolve defaults and judgements prior to the application being taken forward.

5. Insufficient grazing capacity or applications with overgrazing where access to additional parcels of land are not easily accessible. The application will therefore be delayed as a result.

6. Intermittent capacity constraints and high volume of applications. Some of the Bank’s provincial offices were constrained to turn the transactions around at speed due to vacancies that are currently being field.

(ii) Delays in processing disbursements

Delays in clients meeting the funding conditions which need to be fulfilled prior to disbursement of funds. These include the following: Delays experienced in clients obtaining licences for additional water rights from the Department of Water and Sanitation. Delays in obtaining the condition for provision of DALRRD’s written consent to cede all and any of the rights of the Borrower under the 30-year lease agreements. There are often delays where the client is required to provide Life Cover / Credit Life as clients undergo medical examination, and in some instances the clients may not qualify. The conversion of letters of intent to the required off-taker agreements may take longer to obtain. Title deeds in some of the provinces have restrictive clauses on selling to external buyers that are not from the location.

Reply:

ESKOM REPLY:

In January 2022, Eskom’s Forensic and Anti-Corruption Department received a complaint via email from an anonymous whistle-blower, which highlighted concerns regarding a procurement transaction for Electrostatic Precipitators (ESP) at Tutuka Power Station.

A detailed preliminary investigation was conducted, and the preliminary findings revealed that the matter warrants a full investigation. The matter is currently outsourced to an external service provider, and it is envisaged that the investigation will be completed by the end of November 2023. Eskom will share the findings and recommendations of the investigation with the DPE. If the investigation uncovers fruitless and wasteful expenditure, Eskom will initiate proceedings to recover losses. Eskom will also further engage with law enforcement agencies if any criminality is uncovered.

DPE REPLY

The department has a process in place to oversee that recommendations emanating from forensic reports are implemented. The department shall monitor that the commitment made by Eskom to finalise the investigation. Accordingly, the department shall apply itself to the report to ensure that all recommendations are fully implemented should the allegations be confirmed; and that relevant parties are held accountable in line with the laws of the country. Furthermore, the department shall through the Shareholder Compact, hold the board accountable in ensuring that whistle-blower reports Eskom receives are addressed speedily; that forensic investigations are initiated and completed within a reasonable timeline and that recommendations are fully implemented within reasonable timelines.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

Recently released data by Eskom suggests that from March 2022 until the first quarter of 2023, the amount of electricity generated by Small-scale Embedded Generation (SSEGs), in the form of solar panels, has risen 350%. This increase in reliance on renewable energy is a welcome development for the environment, but poses a significant challenge to municipalities, which derive the majority of their income from electricity sales. Figures from Buffalo City Metropolitan Municipality reveals that SSEGs have cost the municipality R350 million in electricity sales.

The City of Cape Town is currently at the forefront of exploiting this situation for maximum public benefit, by implementing feed-in tariffs, which pays private owners of SSEGs for electricity redirected into the grid, which can then be sold to other consumers at a profit. Energy experts suggest that feed-in tariffs, along with the installation of smart-meters, are the most feasible strategy to overcome the potential losses to municipal income. Much of the Energy Action Plan’s recent (although questionable) successes hinge upon a decline in electricity demand. Reliance on SSEGs significantly drive down demand, and therefore also account for progress made in the fight against nation-wide load shedding.

(a)

The uptake for embedded generators including small-scale systems like rooftop photo voltaic (PV) systems, has been driven largely by customers seeking alternative energy sources due to loadshedding, followed by those wanting to buffer against the upward annual electricity tariff trends, and those that are pursuing greener options aligned with climate change objectives.

The current year’s uptake has been further accelerated by incentive programmes like the SARS tax rebates, attractive distributor feed-in-tariffs as is the case with the City of Cape Town, and the National Treasury energy bounce-back loan guarantee scheme making funding more accessible.

The uptake of small scale embedded generators (SSEGs) has resulted in the displacement of traditional grid-supplied energy volumes. The Eskom Transmission System Operator has established models that estimate the installed capacity of PV on the national grid (i.e. include the SSEGs but exclude government independent power producer programmes) to be 4 841 MW at the end of August 2023 which is estimated to be 2 500 MW more than the previous 12 months window. This translates into an erosion of 2.3% (4.5TWh) of the sales base and 1% (R3.3bn) erosion in the margins (i.e. retail revenue less wholesale purchases) in the window period. The uptake is on an upward trajectory and the Gauteng Province is the largest adopter of SSEGs in the country.

(b)

Eskom Distribution pursues an SSEG framework that is attractive to customers and will ensure network safety, recovery of network costs through unbundled tariffs, retention of customers with new grid services (i.e., net-billing, wheeling and banking) and will offer the Standard Offer Programme which is a form of Feed-In-Tariff that seeks to procure customers’ electricity generation in a competitive manner.

Customers with SSEG installations realise a reduction of about 39% on their overall electricity bill, which translates into a 21% impact on the Eskom margin (i.e. retail revenue less wholesale purchases). This impact on margins is projected to improve from a 21% decline to an 18% decline on average through grid services revenue generated via administration charges (i.e. use of system, offsetting and banking) and ancillary charges.

As the penetration of SSEGs increase, it will necessitate a more dynamic Distribution System Operator (DSO) capabilities to manage supply and demand in real-time through the trading of flexibility energy services (FES) and virtual power plants (VPP).

While there are mechanisms to contain revenue and margin decline due to lost sales and volumes resulting from SSEGs, there are plans to enable and harness the DSO and trading capabilities to offset these revenue losses into the evolving energy future.

 

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date:

Reply:

a) The historical student loan book value:

As at year ended 31 March 2022, the nominal value of the student loan book was R41.0bn (2021: R40.3bn). The net/carrying value of the student loan book, after considering the adjustments in respect of the actuarial valuation, is R5.1bn (2021: R6.4bn).

b) Debt that has been settled:

During the year ended 31 March 2022 the entity recovered R303m (2021: R388m). The recoveries including debtors that has partially and fully settled their NSFAS debts.

c) Debt written off:

Write offs during the year ended 31 March 2022 because of debtors being deceased amounted to R120m (2021: R114m). This is included in the total aggregated valuation adjustments processed.

Reply:

The visa waiver for Palestinian ordinary passport holders was implemented on 15 September 2023. Negotiations with Palestinian counterparts on the Agreement to waive visa requirements for Diplomatic passport holders only, are at an advanced stage.

END

Reply:

a) For the period under review, approximately 701 suspected cases of fraud cases were detected, investigated, involving 40 SASSA who were implicated to the potential loss of R50 515 541.34. It is important to note that this figure represents a cumulative potential loss documented for the said period involving various other parties not limited to SASSA officials.

These cases ranged from fraudulent collection of grant funds intended for deceased individuals, the submission of disability grant applications with falsified medical information, and the illicit collection of child support grants.

Of the total suspected cases of fraud detected for the period in question, 698 were finalised while 3 are still under investigation. A total of 37 cases were referred to law enforcement agencies for criminal investigation and prosecution.

The notable surge in detection of fraudulent cases can be attributed to SASSA’s anti-corruption strategy.

b) Disciplinary processes in the public service are guided by Chapter 7 of the SMS Handbook (March 2021) as well as the Disciplinary Code (Resolution 1 of 2003). Several sanctions may be issued such as warning letters, suspension, demotion etc. However; the regulations preclude financial recovery of a loss which occurred as a result of fraud that may have arisen through the conduct of the official.

c) The table below provides information on consequence management:

REGION	NUMBER OF CASES	CONSEQUENCE MANAGEMEMENT MEASURES IMPLEMENTED AGAINST IMPLICATED OFFICIALS AND SANCTIONS
Eastern Cape	19	4 x Withdrawn 3 x Pending 1 x Not Guilty 1 x Demotion + Final Written Warning 2 x Suspension without pay + Final Written Warning 8 x Written Warning
Free State	3	2 x Pending 1 x Written Warning + Referral to Employee Assistance Programme
Gauteng	3	2 x Dismissal 1 x Written Warning (Informal discipline)
KwaZulu Natal	15	10 x Pending 2 x Final Written Warning 1 x Dismissal 1 x Written Warning 1 x Not Guilty
Limpopo	10	1 x Withdrawn 5 x Suspension without pay + Final Written Warning 1 x Dismissal 1 x Demotion + Final Written Warning 1 x Not Guilty 1 x Resigned
Mpumalanga	17	1 x Written warning 9 x Final Written Warning 7x pending
North West	5	1 x Withdrawn 1 x Written Warning 2 x Financial Written Warning + Counseling 1 x Suspension without pay + Final Written Warning
Northern Cape	2	2 x Suspension without pay + Final Written Warning
Western Cape	10	1 x Written Warning 9 x Pending

Disciplinary actions were instituted against 74 officials, and 10 officials. Sanctions vary from written warning to dismissal. A total number of 62 cases have been finalised and 22 are in progress. It should also be noted that some fraud cases are being investigated or handled by external or third parties like SIU, Public Protector, National Treasury and SAPS.

Reply:

1. The Justice, Crime Prevention and Security Cluster (JCPS), which the Department is part of and which now also includes the Border Management Authority (BMA), has developed a strategy to deal with countering illegal mining throughout the country. There is special focus on four provinces namely Gauteng Province, North-West Province, Mpumalanga and Limpopo Province due to the history of mining.

2. The counter-return operations include other law enforcement agencies.

3. The JCPS Cluster is working on additional funding requests for counter-return operations.

END

Reply:

1. (a) There is no application that was submitted in terms of the Draft Regulations Published on 19 May 2023. The Regulations published on 19 May 2023 are not yet implemented because they were issued only for public comments.

(b) Refer to the response above.

(2) The total number of Licences received and issued to HDIs from 2019 – 2023 August is 457.

2019	2020	2021	2022	2023
84	60	141	117	55

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Reply:

Find reply here

 

Reply:

a) How has the One Global Brand Activation aligned the work of:

`I have been informed by South African Tourism that a number of global brand activations were delivered across various markets and platforms in collaboration with key stakeholders. Some of the key platforms that were activated include World Travel Market in London, ITB in Berlin, Arabian Travel Market in Dubai and BRICS Outreach programme in Nigeria.

(i) Brand SA in the international markets

Where the opportunity for collaboration exists, SA Tourism works with Brand SA for joint activations. For the period under review, the BRICS outreach platform presented an opportunity for collaboration with Brand SA and BRICS Business Council. The activation included a stakeholder engagement with both government and business counterparts in Nigeria to forge relations. Furthermore, the platform presented a leveraging opportunity to promote the BRICS Summit.

(ii) Provinces in the international markets and (iii) Municipalities in the international markets

In terms of collaboration with provinces and municipalities, the activations were delivered in a form of showcasing destination experiences at the strategic platforms abroad. This was done through exhibitions and further showcasing of SMMEs arts and crafts to enhance the destination showcase.

(b) What are the planned summer campaigns for the coming summer season in the Republic.

The Sho’t Left “Gimme Summer That Sho’t Left” summer campaign was launched in the Eastern Cape on 19 September 2023. The campaign creates a good platform to promote an inclusive South Africa as an appealing and must-experience tourism destination for both Domestic and International travellers while showcasing a wide variety of experiences including Hidden Gems, during the Festive season.

This is also an opportunity for South Africa to showcase how welcoming and inclusive we are to our Regional and International Tourists. Therefore, through this campaign, the Hub teams will leverage and showcase South Africa’s season readiness to welcome visitors in line with their insights for their respective markets.

Underpinning this campaign will be the rollout of the “Make Someone’s Day” initiative which is part of the overall Welcome Programme that drives inclusivity to mitigate unpleasant incidents. The Welcome Program seeks to inspire and educate South African tourism role players and ordinary South Africans to exceed tourist expectations.

The “Make Someone’s Day” campaign, is positioned to showcase and highlight the importance of trade in the tourism value chain. We create and sustain sector partnerships with the trade through information sharing, toolkit developments, training and fact sharing. Through these we developed inclusive Welcome Training modules to help our partners upskill their frontline service staff.

The main objectives of the campaign are as follows:

• To inspire South Africans to travel and spend more during this coming Festive Season.
• To invite and inspire travellers from outside of South Africa to choose to come visit

South Africa during the festive season and beyond

• To encourage South Africans to explore more provinces (Geographic Spread)
• To showcase the wide variety of tourism experiences on offer in South Africa for both

domestic and international travellers through engagements with the travel trade and

deals loaded on the South African Tourism trade platform.

• To ensure increased collaboration between SAT and Private Sector/Other Stakeholders
• To ensure the destination is inclusive, warm and welcoming to all travellers

The campaign, co-created with provinces and the private sector, will be rolled out across all media platforms including TV, Radio, Out of Home, digital and will be supported through activations in provinces. This deal driven campaign will run from 1 October 2023 to 14 January 2024.

Reply:

a) According to the records of the Department of Water and Sanitation (DWS), there is no authorisation that has been issued for water use activities associated with a chrome wash plant located on Portion 71 of Farm Groenkloof 464-JQ in Madibeng Local Municipality, North West.

The DWS has taken steps to address the alleged unlawful development of a chrome wash plant on Portion 71 of Farm Groenkloof 464-JQ and has taken the following actions:

• Site investigation was conducted on 19 September 2023
• The DWS is in the process of issuing a Notice of Intention to issue a Directive in terms of National Water Act to the company responsible for the unlawful water use through development of the chrome wash plant.

b) Further administrative action to be taken and compliance with the stipulated timeframe will be guided by the response of the owners of the chrome wash plant. Should the owners of this wash plant fail to comply with the prescripts of the Notice to be issued by DWS, the Department will proceed with further enforcement actions.

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Reply:

Yes, as an asset owner the Department had some of the national water resource infrastructure declared as National Key Points, dependent on the criticality of specific government water schemes. All of these National Key points are guarded by qualified armed security guards which are officials in the department whereas non-strategic assets are guarded by private security companies. It must be noted that due to the nature of conveyance systems (including canals, pipelines and tunnels), it would be challenging to have sufficient security measures in place to completely mitigate the risk of vandalism.

However, there are operating and maintenance agreements with water boards and water user associations for government water schemes that are remotely located. These institutions assist with the safeguarding of these assets.

Water Boards have taken similar steps to have some of their critical infrastructure declared as National Key Points, but more is to be done for similar classification strategies to be followed at the municipal level; regarding local water and sanitation assets (owned by municipalities).

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Reply:

(1)

a) The project to erect a fence surrounding the land declared as the Meerkat National Park, which includes the core site of the SKA, is managed by the South African Radio Astronomy Observatory (SARAO). A tender for the construction of the fence was published on 13 June 2023 and closed on 11 August 2023. SARAO is currently evaluating the submissions received. The project is expected to be completed approximately 30 months after the award of the tender.

b) SANParks was appointed to manage the NRF land acquired for the purpose of hosting the SKA project. The NRF concluded a management agreement with SANParks and the land was subsequently declared as a national Park. SANParks has developed a park management plan which sets out the long-term vision, objectives and strategies for the park. The Park Management Plan was approved by the Minister of Forestry, Fisheries and Environment on 29 September 2022.

c) The area declared as the National Park is currently under the management of SANParks. The following management measures are being implemented:

1. putting in place the necessary physical, human and financial resources required to run the Meerkat National Park;
2. introducing measures and mechanisms for water management;
3. rolling out general security measures through demarcation and identification of the park, and enhanced infrastructure such as inspection roads;
4. implementing an alien invasive species management programme through the Extended Public Works Program (EPWP) resources;
5. implementing a ‘cleaning and greening’ initiative which employed up to 120 youths from the local communities; and
6. assisting farmers to maintain their boundary fences as an interim mitigation measure whilst the Meerkat National Park fence is being erected.

2.  As part of its socioeconomic development initiatives in the SKA area the South African Radio Astronomy Observatory (SARAO) continues to provide internet connectivity to the people in the area, including the farmers. To date, 368 individuals are receiving subsidised broadband internet services via commercial satellite service providers. These programs continue to be reviewed on an ongoing basis to ensure competitive service offerings and pricing.

Reply:

INFRASTRUCTURE PROJECTS NOT IMPLEMENTED BY DBSA

(aa) 2020-21

(a)(i) What are the processes, procedures, mechanisms and timelines to monitor the progress of each tourism project

I have been informed by the Department that it appointed various entities to implement its tourism infrastructure projects. The relationship between the Department and these entities is regulated through Memoranda of Agreement (MOAs).

Each project has a Project Steering Committee (PSC) established to oversee the implementation of the project.

• The Department receives monthly progress and expenditure reports from entities.
• Entity coordination meetings are held with entities individually and collectively.
• The Departmental Project Managers conduct site visits on a monthly basis.
• The Department issues management letters to non-performing entities where outputs are not satisfactory.
• Entities with their appointed service providers have a contract in place which outlines processes and procedures.
• The entity is expected to issue a default notice to an underperforming contractor according to the contract being utilised.
• If the contractor has been delayed, they will claim for Extension of Time based on the event and contract.
• A contractor will be requested to put in place a Recovery /Catch up Plan to be strictly monitored.
• The entity may terminate contracts of contractors who continuously fail to remedy non-performance.
• Where necessary, constant monitoring, supervision and also site visits are conducted by Principals to projects with persistent challenges delaying project completion.

(a)(ii) What are the processes, procedures, mechanisms and timelines to monitor the status of each tourism project

Refer to (1) (i) (aa).

(b) Who is responsible for such monitoring

Project Managers

(c) How is monitoring conducted

• Site visits
• PSC meetings
• Progress reports

(d) To whom are project status reports presented and/or submitted

• Director
• Chief Director
• DDG: Destination Development

(aa) 2021-22 (a)– (d) same as above

(aa) 2022-23 (a)– (d) same as above

(bb) 1 April 2023 (a)– (d) same as above

Reply:

Find reply here

 

Reply:

a)  The total number of applications that were received in terms of section 21(a) and (b) and section 21(d) from farmers or farming and/or agriculture entities in the past three financial years are indicated in the table below:

Year	Number of received applications
2020	395
2021	355
2022	393
Total	1143

b) The number of the specified applications that were issued with licences in each specified year (i) within 30 days, (ii) within 60 days, (iii) within 90 days and (iv) after 90 days of receipt thereof?

Licences issued
Year of application Submission	30 days	60 days	90 days	over 90 days	Total
2020	0	0	1	165	166
2021	3	15	26	113	157
2022	8	15	11	168	202
Total	11	30	38	446	525

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Reply:

1. (a) The political parties of the respective BRICS Plus countries were invited by South Africa’s governing party, the African National Congress, to attend the BRICS Political Party Plus Dialogue. The South African Government was not involved in organising the BRICS Political Party Plus Dialogue. (b) The South African Government was not involved in the selection nor the extending of invitations to any political party.

2. (a) The Departmental contribution to the BRICS Ministerial of 1st and 2nd June hosted in Cape Town amounted to ZAR 9 848 909.51 (b) The South African Government and the Department of International Relations and Cooperation did not contribute to the BRICS Political Party Plus Dialogue. (c) The Department will only be able to provide information once the reconciliation of accounts has been completed.

3. (a) The full and cumulative costs for the BRICS Ministerial were ZAR 9 848 909.51.(b) The South African Government and the Department did not contribute financially to the 2023 BRICS Political Party Plus Dialogue. (c) The Department will only be able to provide the full and cumulative costs once the reconciliation of accounts has been completed.

Reply:

The National Conventional Arms Control Committee (NCACC) administers the Prohibition of Mercenary Activities and the Regulations of Certain Activities in a country of Armed Conflict Act (Act 27 of 2006) that regulate and control matters related to the question posed. However, the competency and responsibility to enforce the law, gather intelligence, investigation and prosecutorial discretion, regarding the breach of the abovementioned laws does not reside with DIRCO but other Government departments such as the Departments of Justice and Constitutional Development, Defence and Military Veterans, State Security and the National Prosecution Authority.

Reply:

a) The core responsibility of a Sector Education and Training Authority (SETA) is to develop a Sector Skills Plan (SSP) as mandated by the Skills Development Act (Act No. 97 of 1998). SETAs facilitate the delivery of sector-specific skills interventions that enable the achievement of the outcomes of the National Skills Development Plan (NSDP) and other applicable policy instruments. Research is critical in this regard, as SETAs are required to conduct research to identify occupations/skills in demand in their respective sectors.

The Department develops (and annually updates) the Sector Skills Plan Framework, guiding the SETAs, which takes into account amongst others, change drivers such as : regulatory and policy issues such as government legislation (i.e. White Paper for Post School Education and Training, National Plan for Post School Education and Training, etc); national and provincial plans which drive growth and development; economic growth or decline in a sector; changes to the nature of work such as changes in technology, work organization, production and process innovation; the business environment such as export markets, consumer preferences, and competitiveness in the market, globalization and others; immigration and emigration and social issues such as poverty, HIV/AIDS, health and safety issues, etc. The SSPs include chapters such as Sector Profile; Key Skills Drivers; Occupational Shortages and Skills Gaps; SETA Partnerships and SETA Monitoring and Evaluation. Other Labour Market Intelligence Instruments such as National List of Occupations in High Demand; Critical Skills List; Economic Reconstruction and Recovery Plan Skills Strategy guide the implementation of skills development interventions. Subsequently, each SETA develops an Annual Performance Plan and Strategic Plan (as tabled in Parliament) and is monitored through the Portfolio Committee on Higher Education, Science and Innovation and other parliamentary processes. Annual Reports are compiled and tabled to Parliament, monitoring the performance of the SETAs. Consequently, the Department as directed by the Skills Development Act (Act No.97 of 1998) also enters into Service Level Agreements with the SETAs.

(b)

Year 2020/21: (b) Total number of programs have been implemented in the provinces and beneficiaries trained and completed programs
Province	(aa) Beneficiaries trained	(bb)Beneficiaries completed
Eastern Cape	18 944	12 500
Free State	7 101	5 546
Gauteng	57 167	43 038
KwaZulu Natal	22 243	18 389
Limpopo	20 384	19 805
Mpumalanga	8 862	8 804
North West	7 247	7 192
Northern Cape	4 787	3 835
Western Cape	18453	14 620
Total	165 188	133 729

Year 2021/22: (b) Total number of programs have been implemented in the provinces and beneficiaries trained and completed programs
Province	(aa) Beneficiaries trained	(bb)Beneficiaries completed
Eastern Cape	28 929	13 963
Free State	18 210	28 020
Gauteng	60 591	43 362
KwaZulu Natal	33 069	19 919
Limpopo	20 752	14 580
Mpumalanga	12 291	9 196
North West	11 422	8 649
Northern Cape	5 890	4 804
Western Cape	23377	15 250
Total	214 531	157 743

Year 2022/23: (b) Total number of programs have been implemented in the provinces and beneficiaries trained and completed programs
Province	(aa) Beneficiaries trained	(bb)Beneficiaries completed
Eastern Cape	23159	13115
Free State	11630	5581
Gauteng	79105	46643
KwaZulu Natal	41827	21865
Limpopo	27749	19929
Mpumalanga	17731	10585
North West	9957	6951
Northern Cape	8450	4061
Western Cape	30531	14748
Total	250 139	143 478

(c)(i) The SETAs and the Department conduct tracer studies, to track the beneficiaries of the SETA skills development interventions on a regular basis, one of these studies was conducted by Rhodes University, and its outcomes are summarised as follows.

One of the key measures of interest in any tracer study of graduates or completers is the employment rate. If the percentages of completers in Workplace Based Learning Programs (WBL) programs in self-employment and employment are added together, the result is an employment rate of roughly 80% for learnership completers and 60% for those who have recently completed apprenticeships. Therefore, the employment rate among the sample of SETA-funded WBL completers is very high. A key difference between the completers of apprenticeship and learnership programs, however, is that a third of apprentices were not working at the time of the survey compared with about 17% of learnership completers. Based on this alone, one conclusion is that learnership programs appear to be more closely associated with a smooth transition into employment. At the same time, only very small numbers of WBL completers reported studying further after the completion of their training program (6% of apprentices and 3% of learnership completers).

WBL completers who are employed, one of the key findings is that nearly all completers (who were employed at the time of the survey) within each WBL program found employment within six months after the completion of their WBL program. There were only slight differences in the percentage of apprenticeship (89.5%) and learnership (96.3%) completers who found employment within a six-month period. In terms of employment characteristics, the findings suggest that apprenticeship completers were more likely (43.6%) to be employed in a permanent position relative to learnership completers (22.3%). The vast majority (58.4%) of learnership completers were employed in fixed-term positions at the time of the survey. While this would suggest that an apprenticeship is a more direct route to stable employment, about 29.3% of apprenticeship completers were in casual employment (compared with just under a fifth of learnership completers). Therefore, while permanent employment was the modal form of employment for the completers of apprenticeships, a substantial group was also in the most unstable type of employment relationship (casual employment).

(c) (ii) Notably, in the tracer study by Rhodes University, is that the share of WBL completers in self-employment is less than one percent. One of the artisan tracer studies conducted by the Department indicated that 2% (whilst 79% were employed) were self-employed. About 15% of those self-employed individuals indicated that they saw an opportunity for self-employment.

(c) (iii) see as referred above.

Reply:

1. (a) 2020-21

1.(i) What are the processes, procedures, mechanisms and timelines to monitor the progress of each project.

• I have been informed by the Department that the National Department of Tourism has an existing Memorandum of Understanding (MOU) with the Development Bank of Southern Africa (DBSA). The MOA is valid from November 2020 to November 2023.
• The Department uses the terms and conditions of the MOA to ensure compliance by the DBSA. The MOA is accompanied by an Infrastructure Programme Implementation Plan (IPIP) which is informed by the National Treasury’s Framework for Infrastructure Delivery and Procurement Management (FIDPM).
• The IPIP compels the DBSA to seek concurrence / sign off from the Department in order to move on to the next stage of the project.
• The Department will then sign off or concur at each project stage for DBSA to move on to the next stage.
• The Department has wel- established governance structures to manage and monitor the implementation of its infrastructure programme through the DBSA; namely, Programme Management Meetings, chaired by the DDG: Destination Development and Steering Committee Meetings, chaired by the DG.
• The Minister also meets Quarterly with the DBSA .
• The Department receives monthly and quarterly progress and expenditure reports from the DBSA.
• The Departmental Project Managers conduct site visits on a monthly basis.

(1)(ii) What are the processes, procedures, mechanisms and timelines to monitor the status of each project

Refer to (1) (i) (a).

(2)(a) Who is responsible for such monitoring?

• Departmental Project Managers
• Directors
• Chief Directors
• DDG
• DG

(2)(b)(ii) How are project status reports reported

• Presentations at Progress and Steering Committee meetings
• Monthly Progress Reports
• Quarterly Progress Reports

(2)(b)(iii) To whom are project status reports reported

• At Progress Meetings - to NDT DDG: Destination Development and Head of Infrastructure Delivery: DBSA.
• At Steering Committee Meetings - to DG and Group Executive: Infrastructure Delivery, DBSA.

(2)(c) What processes, procedures and/or mechanism are in place should a project not meet what is required or when deadlines are not met.

• DBSA and the appointed service providers have a contract in place which outlines processes and procedures.
• A default notice will be issued to an underperforming Contractor according to the Contract being utilised.
• If the Contractor has been delayed, they will claim for Extension of Time based on the event and Contract.
• A Contractor will be requested to put in place a Recovery /Catch up Plan to be strictly monitored.
• DBSA offers loans to contractors with cash-flow challenges which are affecting project progress.
• DBSA may terminate contracts of contractors who continuously fail to remedy non-performance.
• Where necessary, constant monitoring, supervision and also site visits are conducted by Principals to projects with persistent challenges delaying project completion.

(1) (a) and 2 (a-c) 2021-22 Same as above

(1) (a) and 2 (a-c) 2022-23 Same as above

(1) (b) and 2 (a- c) April 2023 Same as above