Questions and Replies

Reply:

South Africa was not the Chair of the Southern African Development Community (SADC) Organ on Politics, Defence and Security Cooperation from 2016 to August 2017. 

It should be noted that SADC through the Organ on Politics, Defence and Security Cooperation remains seized with the political developments in the DRC. The Organ on Politics, Defence and Security Cooperation works on the basis of the Troika which at the time comprised of the Current Chair which was the United Republic of Tanzania, the Republic of Angola as Incoming-Chair and the Republic of Mozambique as Outgoing Chair.

Following the demonstrations led by the opposition parties in the DRC on 19 and 20 September 2016 which resulted in violence, deaths and destruction of property, the Chairperson of the Organ on Politics, Defence and Security Cooperation, H.E. Dr. John Pombe Joseph Magufuli, President of the Republic of the United Republic of Tanzania mandated the deployment of an Organ Troika Ministerial Assessment Mission to the DRC from 10 to 13 October 2016. The Assessment Mission was led by the Hon. Dr. Augustine P. Mahiga, Minister of Foreign Affairs and East African Cooperation of the United Republic of Tanzania as Chairperson, who was accompanied by Hon. Georges R. Chikoti, Minister of External Relations of the Republic of Angola and Deputy Chairperson and  Hon. Patricio Jose, Deputy Minister of National Defence of the Republic of Mozambique representing the Outgoing Chairperson  of the  Ministerial Committee of the Organ (MCO) on Politics, Defence and Security Cooperation.

The Organ Troika Assessment Mission made the following observations and conclusions:

1. The political situation in the DRC remained volatile, thus necessitating the need for SADC to remain closely seized with the DRC situation and required deployment of  regular follow-up missions and continued expression of SADC support of the DRC;
2. The Inclusive National Political Dialogue and the implementation of the outcomes thereof remains paramount in terms of garnering popular support to the electoral process, and the need to ensure the conduct of peaceful credible elections;
3. The process of updating the voters’ register should be expedited and finalised within the time line to be agreed upon by the stakeholders;
4. The regular deployment of follow-up SADC missions, including the SADC Electoral Advisory Council (SEAC), has been prioritised and will remain a priority in order to enhance the visibility of SADC’s continued involvement and to demonstrate  SADC’s support to the DRC peace, security and electoral processes;
5. SADC to ensure that there is high level engagement with the Government of the DRC, especially within the current period up to December 2016, in order to encourage the Government and other stakeholders to refrain from resorting to violence, and instead continue to dialogue with opposition groups with a view to addressing the outstanding issues; and
6. The International Community should be encouraged to support the DRC National Independent Electoral Commission (CENI) financially and materially in relation to the on-going voters’ registration process that will facilitate the conduct of combined presidential, parliamentary, and provincial elections, to be followed by local elections.

A Double Troika Summit of Heads of State and Government was also held in Lozitha, Kingdom of Swaziland on 17 March 2017 and noted that the political and security developments in the DRC and:

1. commended the President of the DRC H.E. Joseph Kabila Kabange, the Government of the DRC, the National Episcopal Conference of Catholic Bishops for the DRC (CENCO), political parties and other stakeholders for the continued  efforts in addressing the political security challenges;
2. noted and commended CENCO for the renewed meditation efforts, and urged the DRC stakeholders to finalise the Specific Arrangements for the Implementation of the 31st December 2016 Political Agreement, in particular the nomination of the Chairperson of the National Monitoring Committee, and encouraged the opposition to expeditiously submit the nominees for the position of the Prime Minister (now appointed);
3. called upon the International Community to support the DRC in the electoral processes that are expected to facilitate peaceful and successful elections; and
4. mandated the Organ Ministerial Troika to immediately conduct a follow-up mission to the DRC, on a date to be agreed upon in consultation with the Chairperson of the Organ and the Government of the DRC.

These efforts demonstrate that SADC remains committed in ensuring that the situation in the DRC is resolved in order for peace and security to prevail.  South Africa will play her role as SADC chairperson to ensure that the peace and stability goals of SADC in the region are achieved.

Reply:

The death of more than 40 mineworkers in Marikana in August 2012 is a tragedy that should never be allowed to happen again in our country.

We should remember those who lost their lives by improving the living conditions of the people in Marikana.

On 26 August 2012, I appointed a Commission of Inquiry to investigate matters of public, national and international concern arising out of the tragic incidents at the Lonmin Mine in Marikana. In total 44 people lost their lives and many others were injured. Government is busy implementing the findings of the report.

I established an Inter-Ministerial Committee (IMC), which is convened by the Minister in the Presidency for Planning, Monitoring and Evaluation. The IMC comprises of the Departments of Human Settlements, Mineral Resources, Social Development, Police, Justice and Correctional Services, and Cooperative Governance and Traditional Affairs in order to manage the efforts to address the short and medium term challenges in the relevant areas.

The Inter-Ministerial Committee on the Revitalisation of Distressed Mining Communities, through its work, leadership and intervention, has achieved commendable results, which include:

• Approximately 522 housing units that have been completed to date;
• Planning for Phase 2 of the housing development in Marikana Extension 5 is already underway and measures 144 hectares in extent, owned by Lonmin. The site has capacity to cater for 5 000 housing units.  Lonmin has commenced with the pre-feasibility study for this development;
• Lonmin completed the conversion of all their hostels, namely 776 family units and 1 908 single apartments by December 2014, as per the Mining charter requirements
• Lonmin has also submitted a new second Social and Labour Plan for the period 2014 until 2018. It undertook to build 4 000 infill apartments which are not meant to replace homeownership but to provide decent accommodation for employees.  
• Phase 1 at the Karee Housing Estate has been completed, comprising 100 family units and 225 bachelor units. The next phase is in progress and should be finalised by the end 2017 comprising another 120 single units and 48 family units.
• The Revitalisation of Distressed Mining Communities has been mainstreamed into the Government Programme of Action.

Government continues to engage business, labour and communities to seek sustainable solutions that resolve the concerns of mine workers and distressed mining communities and transform the mining sector to broaden the benefits of our country’s rich mineral wealth.

The Revised Mining Charter also seeks to address some of the medium to long-term challenges through the provision that mining license-holders should, as part of Broad-based Economic Empowerment, provide 8% free carry to the mining communities in their area of operations.

Government encourages all society to commemorate tragedies such as the one of Marikana in every manner possible.

Furthermore, government remains on track with regard to implementing the recommendations of the Commission of Inquiry which was led by retired Judge Ian Farlam.

We appeal to all social partners to use the lessons from the Marikana tragedy to honour the memory of the victims through practical measures to improve the living and working conditions of mining communities, which is the most effective way to honour them.

Reply:

The negotiations towards establishing the Continental Free Trade Area (CFTA) are building on the trade liberalisation progress and achievements of the Regional Economic Communities such as our own, the Southern Africa Development Community, (SADC) and others.

The aim is to enhance intra-regional trade and ensure that African countries trade with each other on better terms than third countries. A free trade area implies granting parties thereto preferential access in terms of tariff duties, which has implications for revenue. Each negotiating party makes its own sovereign assessment about the benefits of entering into the CFTA negotiations and whether they potentially outweigh the negative considerations that arise. It is therefore not possible to predict with any degree of precision, how the CFTA will impact on the revenue base of the negotiating state parties. This will depend on the export profile of each negotiating state party to the CFTA.

The overriding imperative of the CFTA is to boost intra-Africa trade, promote market integration and industrialisation in Africa. A bigger market will improve the prospects of African countries to attract investment, promote the development of regional value-chains thus increase the potential of diversifying the economic base. We believe that this will contribute positively to economic growth and development in Africa. 

South Africa takes the CFTA negotiations very seriously, as the intervention has the potential to contribute positively to economic growth and development in Africa. Our commitment to the CFTA is evidenced by the fact that South Africa hosted the meeting of the AU Assembly of Heads of States that launched the CFTA negotiations. The CFTA is also one of the priorities of Agenda 2063 and the African Union Assembly of Heads of States receives regular feedback on progress. To demonstrate our commitment to the expeditious finalisation of the CFTA negotiations, South Africa recently hosted meetings of the CFTA technical working groups and the negotiating forum from 20 August to 2 September 2017, in Durban. Further, South Africa has made specific proposals, towards the conclusion of the CFTA negotiations.

In addition, the CFTA negotiations are receiving the highest political attention in South Africa, to provide the necessary guidance to speedily move towards the conclusion of the CFTA. South Africa is represented at all AU Trade Ministers meetings wherein the CFTA is discussed and direction given by AU Ministers of Trade to the negotiators. The International Trade and Economic Development Division of the dti advances and defends South Africa’s trade interests in the CFTA negotiations. The positions that South Africa advances in the CFTA negotiations are an outcome of consultations that take place in NEDLAC.

South Africa has advanced the development integration approach to the CFTA that combines market integration, industrial and infrastructure development. This approach ensures that Africa addresses the fundamental constraints to intra-Africa trade and Africa’s integration into the global economy, which include productive and supply-side constraints. This approach has been adopted by the Continent as a good basis to advance regional integration. This ensures that the benefits of the CFTA are broadened through the diversification of the export base and promoting inter-connectivity through infrastructure development.

Having said that, South Africa advances the retention of the policy space for development, particularly for Least Developed Countries. We defend the retention of policy space in any free trade agreement for the advancement of national development objectives such as industrialisation, access to affordable public health and the introduction of other development advancing measures in all free trade negotiations that we are party to, including the CFTA. South Africa supports free trade agreements that expressly recognise differentials in levels of development, and accordingly create differentiated obligations. South Africa is therefore committed to ensuring that the CFTA benefits all AU member states.

Reply:

Refer to table below:

No.	Name of Entity	(a) Opening for the board positions	(b) Closing for board positions
1.	Amatola Water	The Board of Amatola Water was appointed in February 2016.	The term of office of the Board expires in 2020.
2.	Bloem Water	The Board of Bloem Water was appointed in April 2014.	The term of office of the Board expires in 2018.
3.	Lepelle Northern Water	The Board of Lepelle Northern Water was appointed in April 2016	The term of office of the Board expires in 2020.
4.	Magalies Water	The Board of Magalies Water was appointed in April 2014.	The term of office of the Board expires in 2018.
5.	Mhlathuze Water	The term of office of the Board was terminated in April 2017. The acting Chief Executive was appointed as the Accounting Authority in terms of Section 49(2) of the Public Finance Management Act, 1999 (Act No.1 of 1999) as amended.	The process for the appointment of a new Board has commenced.
6.	Overberg Water	The term of office of the Board was terminated in June 2017. The acting Chief Executive was appointed as the Accounting Authority in terms of Section 49(2) of the Public Finance Management Act, 1999 (Act No.1 of 1999) as amended.	Process for the appointment of a new Board has commenced.
7.	Rand Water	The Board was appointed in April 2014.	The term of office of the Board expires in 2018.
8.	Sedibeng Water	The Board was appointed in April 2017.	The term of office of the Board expires in 2021.
9.	Umgeni Water	The term of office of the Board was terminated in June 2017. The acting Chief Executive was appointed as the Accounting Authority in terms of Section 49(2) of the Public Finance Management Act, 1999 (Act No.1 of 1999) as amended.	The process for the appointment of a new Board has commenced.
10.	Trans-Caledon Tunnel Authority (TCTA)	The Board of the TCTA was appointed in December 2015.	The term of office of the Board expires in 2018.
11.	Water Research Commission (WRC)	The Board of the WRC was appointed in 2016.	The term of office of the Board expires in 2020
12.	Inkomati-Usuthu CMA	The Board of Inkomati-Usuthu CMA was appointed in 2014	The term of office of the Board expires in 2018
13.	Breede-Gouritz CMA	The Interim Board of Breede-Gouritz CMA was appointed in 2014	The term of office of the Board expires in 2018

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Reply:

a) The number of Mikondzo events held in 2016-017 financial year is 31 Mikondzo events.

b) The events date stared in April 2016 – March 2017 financial year.

c) (i) in all nine regions of the Agency (Provinces)

(ii) Municipality names are attached.

(iii) The events took place in the indicated municipal wards

d) The average cost of each event was R2 500 000.00

Reply:

(1) No (a) Not Applicable (b) Not Applicable (c) Not Applicable

(2) No. Refer to 1

(3) The employment contract was terminated by way of mutual agreement

Reply:

Requesting Honorable Member to refer to the response provided in NA 1666 of 9 June 2017.

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Reply:

The Government of South Africa accepts the outcome of the Summit on the admission of Morocco to promote unity and coherence within the Continent. Member states expressed strong views that by virtue of acceding to the Constitutive Act, Morocco should abide by all provisions of the Act and immediately resolve its relations with the Western Sahara to ensure territorial integrity between the two nations. South Africa also supports the Summit’s decision that the African Union should prioritise the resolution of the impasse between the two countries to change the status quo, failing which the principles on which the African Union was constituted, as articulated in the Constitutive Act, would be undermined. We fully support the right of the people of Western Sahara to self-determination.

South Africa supports the adoption of the Kagame Report as its general thrust seeks to strengthen the African Union (AU) and improve its functioning and effectiveness.  South Africa will continue to safeguard the values of the AU Constitutive Act, and in this regard will continue to engage in AU discussions on the implementation of the report in a sustainable manner.

Reply:

The issues raised in the question may form part of the Judicial Commission of Inquiry recommended by the Public Protector in her Report of “State of Capture”. As such, I cannot go into the details of the issues raised in the question.

Reply:

The accreditation was awarded to Azande Consulting and Vee El Promotions on 23 June 2016. In total SASSA has paid R80.7 million for Mikondzo Project since the accreditation to date i.e. R52.4 million for Azande consulting and R28.3 million for Vee El Promotions.

The details below are a list of events held and the payments made to the above mentioned companies.

Table A: Azande Consulting

No	Name of Region	(a) What payments have been made to Azande Consulting In Rand value	(b) (i) For which events and/or services	(b)(ii) On what dates were the payments made in each case
1	Eastern Cape	484 969,40	Mikondzo : Zwide	13-Jul-16
2	Eastern Cape	489 500,30	Mikondzo - Dan Qeqe	13-Jul-16
3	Eastern Cape	470 000,00	Mikondzo - Uitenhage	05-Jul-16
4	Eastern Cape	450 000,00	Mikondzo: Motherwell	30-Jun-16
5	Free State	4 452 550.32	Mikondzo : Mangaung Metro	15-Feb-17
6	Limpopo	3 932 794,07	Mikondzo - Botlokwa on 04 Dec 2016	13-Dec-16
7	Mpumalanga	3 648 000,00	Mikondzo:Nkomazi (Kwamhlutshwa) 22 October 2016	22- Nov-16
8	Northern Cape	3 021 445,82	Mikondzo: Kuruman	23-Jan-17
9	North West	15 390 000,00	Mikondzo - Magogwe	02-Aug-16
10	North West	3 880 907,45	Mikondzo:Ratlou (Mareetsane) (28 August 2016	29-Sep-16
11	North West	519 456,45	Deputy Minister’s old persons Christmas lunch	17-Jan-17
12	North West	4 215 206.23	Mikondzo: Swartruggens (Borolelo)Mikondzo 12 May 2017	26-May-17
13	Kwazulu Natal	476 320,00	Mikondzo:Qhudeni 19/7/2016	02-Aug-16
14	Kwazulu Natal	495 000,00	Mikondzo:Qhudeni 19/7/2016	04-Aug-16
15	Kwazulu Natal	489 000,00	Mikondzo:Ntambanana 15/7/2016	04-Aug-16
16	Kwazulu Natal	492 689,10	Mikondzo: Qhudeni 19/7/2016	09-Aug-16
17	Kwazulu Natal	170 850,00	Mikondzo: Qhudeni 19/7/2016	11-Aug-16
18	Kwazulu Natal	4 332 889,20	Mikondzo:Mtubatuba 31/7/2016	14-Sept-16
19	Kwazulu Natal	4 959 000,00	Mikondzo: Mnyakanya kwaShange – 27-29 Dec 2016	17-Jan-2017
	TOTAL AMOUNT	52 370 578.36

Table B: Vee El Promotions

No	Name of Region	(a) What payments have been made to Vee-El Promotions In Rand value	(b) (i) For which events and/or services	(c) (ii) On what dates were the payments made in each case
1	Eastern Cape	4 800 500,00	Mikondzo: Sterkspruit	28-Dec-16
2	Eastern Cape	385 609,13	Mikondzo : Motherwell	19-Jul-16
3	Eastern Cape	484 568,02	Mikondzo: Uitenhage	28-Jul-16
4	Eastern Cape	4 495 154,46	Mikondzo: Alice	13-Dec-16
5	Gauteng	484 568,02	Mikonzo: Presidential visit to Atteridgeville- 1 June 2016	27-Jul-16
6	Mpumalanga	2 494 889.00	Mikondzo - Kwamhlanga 09 October 2016	31-Oct-16
7	North West	3 095 695,22	Mikondzo at Mareetsane(28 August 2016)	26-Oct-16
8	Kwazulu Natal	3 814 471,84	Mikondzo: Ixopo	14- Sept-16
9	Kwazulu Natal	3 560 132,52	Mikondzo: Umhlabuyalingana 15/12/2016	23-Dec-16
10	Kwazulu Natal	3 267 769,78	Mikondzo: Matshensikazi 21/12/2016	12-Jan-17
11	Kwazulu Natal	1 442 230,22	Mikondzo: Matshensikazi 21/12/2016	16-Jan-17
	TOTAL AMOUNT	28 325 588.21

Reply:

(a)

Eskom has provided this detail in the Annual Financial Statements issued for the year ended 31 March 2017. Please refer to Note 52 on page 113.

(b)

Please refer to the attached note for details of the irregular expenditure.

(c)

A recovery plan has been developed, which includes instituting disciplinary measures and is in the process of execution.

(d)

Eskom has developed an improvement plan with the aim of addressing PFMA compliance. Please refer to Directors report on Page 13 to 14 of the Annual Financial Statements issued for the year ended 31 March 2017.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Annexure to PQ 2162 (B)

52. Information required by the Public Finance Management Act

Any losses due to criminal conduct or irregular or fruitless and wasteful expenditure that individually (or collectively where items are closely related) exceed R25 million must be reported in terms of the significance and materiality framework agreed with the shareholder.

52.1 Irregular expenditure

Group and company

Note	2017 Rm	2016 Rm
Balance at beginning of the year	348	418
Current year expenditure	4 043	106
Amounts condoned	(1 084)	(146)
Amounts not recoverable (not condoned)	(311)	(30)
Balance at end of the year	2 996	348
Age analysis	2 996	348
Current year	2 992	38
Prior years	4	310
Comprising	–	310
B2B engineering tools expenditure incurred without PFMA approval (a)
Balance at beginning of the year	310	310
Amounts not recoverable (not condoned)	(310)	–
Purchase of land without investment committee approval (b)	–	–
Balance at beginning of the year	–	108
Amounts condoned	–	(108)
Breach of PPPFA: monetary thresholds – incorrect tender process applied (c)	92	11
Balance at beginning of the year	11	–
Current year expenditure	95	41
Amounts condoned	(13)	–
Amounts not recoverable (not condoned)	(1)	(30)
Breach of the NEMA (d)	–	7
Balance at beginning of the year	7	– 7 –
Current year expenditure	–
Amounts condoned	(7)
Use of labour broker – internal processes not followed (e)	–	10
Balance at beginning of the year	10	–
Current year expenditure	–	10
Amounts condoned	(10)	–
Professional services contract – internal processes not followed	–	–
Current year expenditure	–	36
Amounts condoned	–	(36)
Tender processes not adhered to – commitments made before approval (f)	56	1
Balance at beginning of the year	1	–
Current year expenditure	549	3
Amounts condoned	(494)	(2)
Procurement of services – incorrect classification as an emergency (g)	8	4
Balance at beginning of the year	4	– 4
Current year expenditure	4
Quality management – tender process not followed and insufficient delegation of authority	1 560	–
Current year expenditure (h)
Breach of PPPFA – tax clearance certificates (i )	987	–
Current year expenditure	1 453	–
Amounts condoned	(466)	–
Non-compliance with CIDB regulations ( j)	8	–
Current year expenditure	97	–
Amounts condoned	(89)	–
Breach of PFMA – use of sole source	96	– – 5
Current year expenditure (k)
Breach of PFMA – tender processes not adhered to
Current year expenditure (l)	189
Various other instances	–
Balance at beginning of the year	5	– 5 –
Current year expenditure	–
Amounts condoned	(5)

52.1 Irregular expenditure (continued)

a) B2B engineering tools expenditure incurred without PFMA approval

The matter regarding the expenditure incurred on the B2B Engineering Tools project of R310 million before PFMA approval was reported in 2015. The expenditure was subsequently derecognised by the board in accordance with the National Treasury Guideline issued on 19 April 2016.

b) Purchase of land without investment committee approval

The matter regarding the purchase of land without investment committee approval was reported in 2015. The irregular expenditure incurred has been condoned by the relevant authority and has therefore been removed from the register of irregular expenditure.

c) Breach of PPPFA: monetary thresholds – incorrect tender process applied

Irregular expenditure of R95 million was incurred in breach of the Preferential Procurement Policy Framework Act (PPPFA) as follows:

• • the PPPFA requires that monetary thresholds to determine the appropriate point-scoring criteria applicable to specific transactions be considered inclusive of VAT. Eskom erroneously applied the thresholds exclusive of VAT. Certain procurement was therefore done using the incorrect point-scoring criteria and resulted in a breach of PPPFA. Irregular expenditure incurred on affected transactions amounted to R95 million (2016: R11 million) of which R13 million was condoned in 2017, including R11 million reported in 2016. An amount of R92 million was awaiting condonation at 31 March 2017. Eskom is ensuring that regular reviews are conducted and that buyers are made aware and retrained on the supply chain management procedure
  • Eskom’s exemption from the PPPFA expired on 7 December 2012. Eskom paid R0.4 million (2016: R30 million) during the year on contracts that were entered into between 8 December 2012 and 31 March 2013 that were inconsistent with the requirements of the PPPFA. These contracts were not recalled or corrected at the time and Eskom continued to meet its obligations in terms of these contracts. All the affected transactions took place in the normal course of business and were subject to Eskom’s approved procurement policy in force at the time

d) Breach of NEMA

Eskom unlawfully commenced with construction activities for a 132 kV power line in the Eastern Cape Province along a route that was not authorised by the Department of Environmental Affairs (DEA). An amount of R7 million was incurred on the portion of the line constructed in contravention of the National Environmental Management Act (NEMA). Eskom rectified the breach and received the required authorisation from DEA on 2 September 2016. Eskom paid a penalty of R1 million imposed by DEA. Disciplinary action was concluded against three employees involved.

e) Use of labour broker – internal processes not followed

Eskom processes were not followed for the procurement of certain goods and services through a labour broker. The senior managers concerned were disciplined and the labour broker instructed to discontinue sundry payments. The expenditure was condoned and no further action is required.

f) Tender processes not adhered to – commitments made before approval

Irregular expenditure of R549 million comprising 245 incidents was incurred as a result of non-adherence to internal procurement processes and employees contravening the Eskom Delegation of Authority. Incidents totalling R56 million are awaiting condonation.

g) Procurement of services – incorrect classification as an emergency

Services procured to the value of R4 million (2016: R4 million) were incorrectly classified as an emergency in the procurement process. This matter will be submitted for condonation in 2018.

h) Quality management – tender process not followed and insufficient delegation of authority

Irregular expenditure estimated at R1 560 million was incurred because of the placement of contracts without proper delegation of authority or without following established processes during the 2008-2015 financial years.

Multi-disciplinary investigations were conducted into indications of mismanagement and allegations of irregularities in the quality management department. Possible fruitless and wasteful expenditure of R886 million regarding this matter was reported in 2016.

A further investigation was recently finalised by an independent external company with the following outcome:

• • identification of irregular expenditure of R1 560 million because of the placement of contracts without proper delegation of authority or without following established processes during the 2008-2015 financial years with the bulk of the payments made on these contracts occurring in the 2013 and 2014 financial years
  • estimated fruitless and wasteful expenditure of R510 million compared to the original estimate of R886 million reported in 2016. Refer to 52.2(a)
  • losses due to criminal conduct of R2 million. Refer to 52.3(b)

Actions taken to date include the following:

• • two employees have been dismissed (one is a senior manager)
  • a criminal case was opened with the South African Police Service to investigate possible fraudulent transactions
  • civil action against Eskom by one of the main suppliers is being defended
  • a fidelity claim has been lodged in terms of a commercial crime insurance policy with a cover limit of R3 billion for losses arising from fraudulent or dishonest acts committed by employees. This claim will be concluded once the legal matters have been finalised

Further disciplinary, civil and/or criminal action as appropriate will be considered against other parties involved, including action to recover losses.

The following contract management process improvements have been implemented:

• • improvement in the monitoring of performance by the SHEQ panel service providers with regular inspections and enforcement of consequence management for poor or ineffective delivery
  • effective segregation of duties
  • reconciliation of task orders to scope, budget, timesheets, invoices and payments, with approval of timesheets by project managers on site
  • limiting of long-term task orders and close monitoring of performance to ensure resources are not idle nor unproductive
  • training of employees on effective electronic documentation management

i) Breach of PPPFA – tax clearance certificates

PPPFA regulations require that tenders may only be awarded to a person whose tax matters have been declared to be in order by SARS. SARS only issues such a confirmation to a person registered as a taxpayer. Three contracts with an award value of R340 million were reported as being under investigation in 2016. A further R126 million was incurred on these contracts during the year. They were confirmed as irregular in 2017 since no SARS declaration was found to be obtained at the time of award and were condoned during the year. There were 59 contracts that were similarly affected during 2017. Irregular expenditure of R987 million was incurred on these contracts during the year and is awaiting condonation.

j) Non-compliance with CIDB regulations

Construction Industry Development Board (CIDB) regulations specify the different levels of grading that contractors must have based on the value of the contracts to be awarded (not a requirement for World Bank-funded contracts). Expenditure of R89 million was identified and condoned during the year on two foreign contracts awarded in terms of World Bank funding where the grading level was not in line with CIDB regulations. A further R8 million was incurred on a contract for which tender invitations were not advertised on the CIDB website as per the CIDB Regulation 24.

k) Breach of PFMA – use of sole source

There were three incidents of irregular expenditure totalling R96 million where the use of sole sources could not be adequately justified.

l) Breach of PFMA – tender processes not adhered to

There were 11 incidents of irregular expenditure totalling R189 million where approved supply chain management processes were not adhered to.

m) Irregular expenditure under investigation

There are numerous additional instances of procurement that are subject to investigation, namely:

• • tender processes not adhered to including breaches of delegation of authority
  • incorrect PPPFA points thresholds applied
  • non-compliance with CIDB regulations
  • lack of supporting documentation including tax clearance certificates
  • award made to a company on a sole source basis which might not comply with the criteria of sole source and contract amount determined on a contingency fee basis
  • non-declaration of conflicts of interest by employees and tenderers giving rise to a risk of undue influence
  • contract information not reflected correctly in the reporting system

These matters are being investigated and will be disclosed in a subsequent period should they prove to be irregular.

n) Relevant authority for condonations

Condonations are currently approved by the relevant internal governance committee unless it is specifically required to be approved by National Treasury. Eskom is awaiting clarification from National Treasury on whether a relevant government department responsible for a particular piece of legislation must approve condonation of a breach relating to that legislation.

 

52.2 Fruitless and wasteful expenditure

a) Incidents of fruitless and wasteful expenditure above the materiality threshold

There was one (2016: one) major incident of fruitless and wasteful expenditure incurred by the group during the year that exceeded the materiality threshold of R25 million. This matter is carried forward from 2016.

Fruitless and wasteful expenditure incurred by the quality management department

An investigation by an independent external party confirmed fruitless and wasteful expenditure estimated at R510 million compared to the original estimate of R886 million reported in the previous financial year. Refer to 52.1(h).

b) Incidents of fruitless and wasteful expenditure below the materiality threshold

Total fruitless and wasteful expenditure which individually or collectively (where items are closely related) were below the materiality threshold was R37 million (2016: R93 million) comprising 210 (2016: 655) incidents of which 10 incidents accounted for R22 million. Management continues to institute preventive and corrective measures, including disciplinary action, as considered appropriate.

c) Fruitless and wasteful expenditure under investigation

There are currently 84 incidents of alleged fruitless and wasteful expenditure under investigation, of which none is expected to exceed the materiality threshold of R25 million. The nature and extent of potential losses incurred cannot be reasonably ascertained at this stage. It is important to note that these are allegations and many of these occurrences may not qualify as fruitless and wasteful expenditure upon conclusion of the investigations.

 

52.3 Criminal conduct

a) Theft of conductors, cabling and related equipment

Losses due to conductor theft, cabling and related equipment totalled R70 million (2016: R85 million), involving 5 734 incidents (2016: 5 161 incidents). Actions to combat these losses are managed by the Eskom Network Equipment Crime Committee in collaboration with other affected state-owned companies and the South African Police Services. The combined effort resulted in 235 (2016: 229) arrests and R5 million (2016: R5 million) worth of stolen material was recovered.

b) Fraud

Eskom concluded 15 (2016: 14) investigations into fraud during the reporting period involving R24 million (2016: R33 million), including a R2 million loss due to criminal conduct on the quality management matter. Refer to note 52.1(h). The existing internal control measures in the affected areas as well as similar areas have been reviewed and enhanced. Disciplinary, criminal as well as civil proceedings have been instituted against those involved.

c) Non-technical revenue losses

Non-technical losses are estimated at R1.3 billion (2016: R1.2 billion). These arise mainly from meter tampering and bypasses, illegal connections to the electricity network and illegal vending of electricity.

Interventions to reduce non-technical energy losses:

• • implementation of technologies in the form of smart/split meters with protective enclosures to prevent access to the meter
  • disconnection of illegal connections, meter tampers and imposition of penalties (tamper fines)
  • estimation and recovery of revenue for historic unaccounted energy where tampered metering installations are encountered
  • revision of supply group codes on prepaid meters to prevent the use of illegal prepaid vouchers
  • investigations and prosecution of criminals perpetrating electricity theft through the sale of illegal prepaid vouchers, illegal electrification and meter tampering services
  • customer education, social mobilisation and partnership campaigns to drive behaviour change

Reply:

In terms of the governance framework, particularly the Significance and Materiality Framework which cascades into each Company’s Delegation of Authority Framework, qualitative and quantitative thresholds are set and may be delegated to a Committee by the main Board.

ALEXKOR SOC LIMITED

The Alexkor Board is responsible for final decisions on tenders, as recommended by the Tender committee for Tenders above R 10 million.

DENEL SOC LIMITED

The Sub Committees of the Denel SOC Ltd Board do not make final decisions on tenders.

ESKOM SOC LTD

Yes, the Eskom Board Tender Committee (BTC) makes final decisions on tenders.

Eskom BTC assists Board in discharging their duties regarding procurement. This authority is delegated to the Eskom Board Tender Committee (BTC) by Eskom Board, in terms of the Eskom Delegation of Authority Policy as well as the mandate as contained in the Terms of Reference of the Committee approved by the Board.

SAFCOL SOC LIMITED

The South African Forestry Company SOC Limited has as at date of this response not had any Board Subcommittee carrying this responsibility.

SAX SOC LIMITED

The Procurement Committee/ Board Sub-Committee recommends all tender submissions to the Board for final approval.

TRANSNET SOC LTD

There are delegated authorities relating to limits that can be approved at various levels.

Remarks: Reply: Approved / Not Approved

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

1 (a).The Department’s mandate for 2017/18 financial year was to reprioritise the completion of the project elements such as the multipurpose cultural dome (amphitheatre). The focus was to complete the amphitheatre with its elements for it to be functional.

(b). The financial obligation set for 2017/18 financial year is R28.1 million budget for the completion of the multipurpose amphitheatre facility subject to confirmation by Bill of Quantities (BOQ). Not completing the project may lead to further wasteful and fruitless expenditure and the incomplete structure, as it becomes increasingly disused, and will reflect badly on the government of the day.

2.(a). The Department is working towards meeting and realising the mandate of what has been planned for through engaging and consulting National Treasury for advice as well as all relevant key stakeholders by holding on-going engagements on the attainment of the objective.

(b). At present the department is working on consolidating cost estimates for the outstanding project elements to be submitted to National Treasury to advise on the best option that could be considered as a way forward for this project.

Reply:

Refer to the table below for the amount of litres of water lost annually in each province due to leaks:

Province	Volume of water lost (Mega Litres/Annum)	Volume of water lost (Litres/Annum)
Western Cape	64 788	64 788 000 000
Easter Cape	121 589	121 589 000 000
Northern Cape	34 534	34 534 000 000
Gauteng	295 187	295 187 000 000
Free State	76 793	76 793 000 000
KwaZulu Natal	238 614	238 614 000 000
Limpopo	124 013	124 013 000 000
Mpumalanga	93 239	93 239 000 000
North West	84 462	84 462 000 000
Total	1 133 219	1 133 219 000 000

---00O00---

Reply:

As I have indicated in my response to question No: 1077 of 15 May 2017, that:

“Schedule 5A of the Constitution of the Republic of South Africa, Act No 108 of 1996, which stipulates that libraries, other than national libraries, are an exclusive provincial legislative competence”. The status quo is still the same.

Reply:

Radical economic transformation is government policy. The policy of our government is informed by the policy of the governing party, the African National Congress (ANC). The ANC at its National Conference in Mangaung in December 2012, declared that we had begun a second decisive phase of our long transition from Colonialism of a Special Type to a National Democratic Society, and that this second phase would be characterised by more radical policies and decisive action to effect socio-economic change and continued democratic transformation.

When I was inaugurated as President of the Republic for the second time on 24 May 2014, I began to give effect to the resolution in my inauguration address, when outlining the focus of the fifth democratic administration for the years 2014-2019. I said: “Today marks the beginning of the second phase of our transition from apartheid to a national democratic society. This second phase will involve the implementation of radical socio-economic transformation policies and programmes over the next five years”. The speech is attached for the Honourable Member’s perusal.

The ANC January 8 statement this year further outlined the governing party’s focus on radical socio-economic transformation, and also specifically radical economic transformation with a focus on the economy.

Radical socio-economic transformation was declared a priority for 2017/18 for government in the 2017 State of the Nation Address (SONA). In the SONA government sets out a Policy Framework and an Action Plan within which we will prioritise the allocation of resources and actions for a particular year. We defined radical economic transformation referring to fundamental change in the structure, systems, institutions and patterns of ownership, management and control of the economy in favour of all South Africans, especially the poor, the majority of whom are African and female.

We are already busy with the implementation of many aspects of the policy through our Nine Point Plan, ensuring that work done in the priority sectors that we have targeted for attention in order to reignite growth, include the meaningful participation of black people who were excluded in the past.

These sectors include mining, manufacturing, agriculture, energy, tourism, ICT, water and sanitation, industrialisation and others. We are working hard to enhance the compacts between business, labour and government as one part of effective transformation. Together we need to broaden the ownership, management and control of the economy so that we build a more sustainable future, with an economy in which the majority plays a meaningful role and in which they benefit, as it must happen in any country. The current situation where the income of white households remains at least six times higher than that of black households as per the last Census cannot be left unchallenged and must be corrected by all of us, especially business, government and labour working together.

I am not aware of a conspiracy to poison me because of the decision of South Africa to join BRICS or because of the radical economic transformation policy of government.

Reply:

a) I did not know of the specified person.

b) Please refer to the answer (a) above. The person was identified through the Board appointment process specified in (d).

c) Please refer to the answer (a) above. The person was recommended/nominated by Mr Bayanda Qiniselani Mzoneli.

d) The Board appointment process is as follows:

(i) An advertisement is issued inviting nominations of suitable persons for appointment to the Boards of the SOC within the DPE portfolio. In this instance, the advertisement went out in October 2014.

1. Suitable candidates are decided on the basis of qualifications and expertise, skills, experience and business acumen.
2. A nomination form must be filled in with personal information, qualifications, skills, experience, and the sector of interested indicated.
3. All people that have responded are put on a database maintained by the Department. The database is consulted whenever a vacancy arises on any of the DPE SOC Boards. The list is updated every two years through a call for nominations, in the media.

(ii) The advertisement is followed by evaluation of the candidates against the criteria of qualifications, skills and experience specified and a long list is determined to determine the people who qualify for consideration.

(iii) The short list is then presented to the Minister for her consideration and approval. In this regard, the list can be revised depending on the Minister’s satisfaction with list provided.

(iv) Finally, the proposed short list of candidates approved by the Minister is presented to Cabinet for approval.

 

Remarks:			Reply: Approved / Not Approved
Mr Mogokare Richard Seleke			Ms Lynne Brown, MP
Director-General			Minister of Public Enterprises
Date:			Date:

Reply:

There was no requirement for South Africa to submit a report to the January AU Summit.  However, South Africa has taken several measures and has acted strongly against the scourge of illicit financial flows, both at domestic and international levels.

Domestically, we have taken several steps to tighten the existing laws. These include:

• Signing into law the Financial Intelligence Centre Amendment Act, 2017. This Act addresses, amongst others, a full range of customer due diligence (CDD) requirements which are focussed on understanding customers better; Beneficial ownership, which requires institutions to know and understand the natural persons who ultimately own or exercise control over legal entities or structures; Prominent (influential) Persons, which requires institutions to better manage risks relating to relationships with prominent persons; and Freezing of assets, in terms of targeted financial sanctions against persons identified by United Nations Security Council in terms of various sanctions regimes.
• The Financial Intelligence Centre (FIC) and the National Treasury are undertaking a review of the list of scheduled (accountable and reporting) institutions to strengthen reporting from such institutions in sectors susceptible to being abused for the laundering and illicit financial flows.
• The FIC is also partnering with the Department of Home Affairs, SARS Customs and the South African Police Services, in a Task Team which has been established to conduct a pilot project for the cash declaration reporting at ports of entry and exit.
• The National Treasury is also chairing a forum consisting of the SA Reserve Bank, FIC, Financial Services Board and SARS to improve coordination and sharing of information on illicit financial flows. It is envisaged that this forum will be formalised under the Anti-Money Laundering and Combating of Terrorist Financing (AML/CFT) Inter-Departmental Committee that the Director-General of National Treasury is in the process of establishing as a replacement of the Counter Money-Laundering Advisory Council, which was abolished by the amendments to the FIC Act.

At an international context we have also signed multilateral agreements:

• Automatic Exchange of Financial Accounts Information, also known as Common Reporting Standard, which forms basis for automatic annual exchange information on offshore accounts to tax authorities of the residence country of account holders. It is intended to make it more difficult for taxpayers to hide their assets abroad. South Africa is amongst the first 60 countries that have commenced the first automatic exchanges on 1 September 2017 and has already activated bilateral exchange relationships with 48 of the 60 countries;
• Transfer Pricing Country-by-Country (CbC), which provides tax administrations a global view of the operations of multinational enterprises and provide tax authorities with necessary information to enable them to make a high level risk assessment and to determine whether they should conduct a tax audit.  South Africa will receive the first CbC Reports on 31 December 2017; and
• To date South Africa has over 79 tax treaties in place and the signing of the Multilateral Instrument (MLI) by South Africa automatically amended 44 of the 79 tax treaties and this number is expected to grow as more countries sign the MLI.
• Currently, 71 countries have signed the MLI, with Nigeria, Mauritius and Cameroon being the latest to sign. The MLI will swiftly implement a series of tax treaty related Base Erosion and Profit Shifting (BEPS) measures to update the existing network of bilateral tax treaties and reduce opportunities for tax avoidance by multinational enterprises.

This responsibility lies with the African Union and its 2015 Summit decision, on the report of the High Level Panel, directed the AU Commission to mount a diplomatic and media campaign for the return of illicitly out-flown assets.

Reply:

(1)The employment contract of the former CEO was terminated by way of mutual consent.

(2) Refer to 1.

Reply:

1. (a) The table link below provides details of the total cost incurred by the Department of Justice and Constitutional Development, the amounts excludes information of the National Prosecuting Authority:

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2711TABLE.pdf

(b) The information on the costs incurred by the National Prosecuting Authority for each official international trip undertaken by the National Director of Public Prosecutions and each person that accompanied him is attached at Annexure A.

2. Yes, the NDPP has informed me that he was accompanied by his bodyguard.

a) Three (3) trips.

b) Confidential information.

c) Please refer to Annexure A.

Reply:

The Department and the entities responded as follows:

(i) Department of Home Affairs

(a-b) The breakdown and valuation of current and non-current assets held by Department of Home Affairs as at 31 March 2017 are as follows:

Asset type	0-3 months	3-6 months	6-12 months	Beyond 12 months (non- current assets)	Total
Staff debt	R1 616 079.85	R735 604.71	R242 576.06	R10 107 125.60	R12 701 386.22
Other debtors	R791 636.58			R330 558.59	R1 122 195.17
Recoverable expenditure (disallowance accounts)	R3 388 15.46		R2 781 994.10	R21 002 032.44	R24 122 842.00
Claims recoverable	R234 930.10		R173 7997 310	R843 334.20	R1 739 075 574.30
Total	R2 981 461.99	R735 604.71	R1 741 021 880.16	R32 283 050.83	R1 777 021 997.69

(bb) There are no investments held by Department of Home Affairs, listed or unlisted.

(ii) Government Printing Works

(a-b) The Government Printing Works (GPW) has an asset base of R3 228 752 000.57. A detailed breakdown and valuation of current and non-current assets is listed below:

Non-current assets:

Fixed assets	Net value
Land	R20 128 625.42
Buildings	R25 189 570.56
Lease Improvements	R80 503 178.75
Office furniture	R3 453 048.73
Computer equipment	R3 437 878.85
Machinery and equipment	R251 817318.80
Vehicles	R15.16
Computer software	R12 489 488.12
Asset in production	R455 345 950.10
Sub-total	R852 365 074.49
Intangible assets
Intangible software	R23 331 123.13
Total	R875 696 197.62

Current assets

Inventories*	R242 936 477.69
Trade and other receivables	R98 442 286.16
Cash and cash equivalents*	R2 011 677 039.10
Total	R2 353 055 802.95

*Inventories and cash and cash equivalents represent the balance as at 31 August 2017 and cannot be broken down by months.

The breakdown of trade and other receivables is as follows:

Period	Balance
0-3 months	R88 155 067.26
Greater than 3 months	R10,287,281.90
Total	R98 442 286.16

(bb) The GPW does not have any investments, both listed and unlisted.

(ii) Electoral Commission

(a-b) The breakdown and valuation of current and non-current assets of the Electoral Commission as at 31 March 2017 are as follows:

Current assets

Cash and cash equivalents	R14 078 042.00
Trade and other receivables from exchange transactions	R22 352 490.00
Inventories	R11 911 915.00
Total	R48 342 447.00

Non-current assets:

Property, plant and equipment	R197 705 422.00
Heritage assets	R1 663 664.00
Intangible assets	R94 809 947.00
Total	R294 179 033.00

(aa-bb) The breakdown period of current assets and investments is tabulated hereunder:

Current Assets	0 - 30 Months	3 - 6 Months	6 - 12 Months	Beyond 12 Months	Totals
Cash and Cash Equivalents	R14 078 042	-	-	-	R14 078 042
Trade and other receivables	R21 760 156	R8 874	R105 220	R478 240	R22 352 490
Accrued Interest	R36 682	-	-	-	R36 682
Cash collateral provided: property rentals	R12 634 488	-	-	-	R12 634 488
Prepayments	R7 984 858	-	-	-	R7 984 858
Sundry receivables	R1 104 128	R 8 874	R105 220	R478 240	R1 696 462
Inventories	R11 911 915	-	-	-	R11 911 915
Total Current Assets	R47 750 113	R8 874	R105 220	R478 240	R48 342 447

 

Remarks: Reply: Approved / Not Approved

J W Mckay Prof. Hlengiwe Mkhize, MP

Acting Director-General Minister of Home Affairs

Date: Date:

Reply:

(a) No, I did not receive any (i) applications, (ii) requests and/or (iii) proposals to withdraw the national parks declaration of any portion(s) of the West Coast National Park.

(b) No, I did not consider any (i) applications, (ii) requests and/or (iii) proposals to withdraw the national parks declaration of any portion(s) of the West Coast National Park.

(c) No, I did not approve any (i) applications, (ii) requests and/or (iii) proposals to withdraw the national parks declaration of any portion(s) of the West Coast National Park.

(d) No, I did not reject any (i) applications, (ii) requests and/or (iii) proposals to withdraw the national parks declaration of any portion(s) of the West Coast National Park.

---ooOoo---

Reply:

(a) As the concerned person was born in Namibia before independence, he was a South African citizen and therefore has the rights to Permanent Residence from date of birth. In terms of SA law he can never lose his right to permanent residence.

(b)(i-ii) Should he wish to obtain a letter confirming the above, he is advised to apply for it at the local Home Affairs’ office.

(c)(i) Not applicable

(c)(ii) Not applicable

Remarks: Reply: Approved / Not Approved

Mkuseli Apleni Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

a) The National Director of Public Prosecutions has informed me that he undertook 15 international trips since 16 June 2015.

b) The tables link below give details of the international trips undertaken by the NDPP and accompanying persons:

 

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2710TABLE.pdf

Reply:

The entities responded as follows:

Electoral Commission

(a-b) The Electoral Commission does not have a Board. It has a Commission whose composition is described in section 6 of the Electoral Commission Act (51 of 1996). The Commission is not the equivalent of a Board.

Government Printing Works

(a-b) The Government Printing Works does not have a Board. GPW is currently a National Government component established as such in 2009 in accordance with section 7(5)(c) of the Public Service Act, 1994 (Proclamation No. 103 of 3 June 1994) (“Public Service Act”) and listed in Part A of Schedule 3 to that Act.

Remarks: Reply: Approved / Not Approved

Mkuseli Apleni Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

(1) The new anticipated date for opening of the office in Bronkhorstspruit is 1 October 2017.

(2)(a) No. Consultation with staff took place during April 2017 upon which the affected staff were given a three (3) month period to prepare for the relocation. Not all officials at the Cullinan Local office - Medium will be affected by the move and this office will still be operating with a reduced number of staff to deal with applications of birth, marriage and death only. The Cullinan and Bronkhorspruit communities were also consulted on the intended opening of the new office in Bronkhorstspruit.

(2)(b) The relocation will not impact negatively as the Cullinan Local Office - Medium remains open and staff will be available to render service delivery, whilst the Bronkhorstspruit community will benefit with the opening of the new office.

Remarks: Reply: Approved / Not Approved

Mkuseli Apleni Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

The Department of Home Affairs is not responsible for the clearance of any flights.

Remarks: Reply: Approved / Not Approved

Mkuseli Apleni Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

No, the Department of Small Business Development (DSBD) has not set targets for the country to achieve a particular rate using the Global Entrepreneurship Monitor’s (GEMS) index known as the Total Entrepreneurial Activity rate, which measures start-up activity in a country’s entrepreneurship ecosystem.

a) The Global Entrepreneurship Monitor is not the only source of data which can be used to determine early stage entrepreneurial activity. The DSBD is therefore, not only limited to this source of data as a tool to measure nor determine the entrepreneurial activity rate. The DSBD will continue to consider other relevant research available to enhance its work.

b) The DSBD is in the process commissioning a “2016 Annual Review on the status of Small Business and Cooperatives in South Africa”. The findings from this research will determine a decision whether there is a need for target setting of early stage entrepreneurial activity.

Reply:

1. The National Director of Public Prosecutions has informed me that the National Prosecuting Authority (NPA) is not investigating this matter. The power to investigate this case resorts with the South African Police Service (SAPS), who are investigating the matter.

The SAPS investigating docket was handed to the National Prosecuting Authority (NPA) on 3 May 2017 after which guidance was provided to the investigating officer on aspects relating to the investigation after which the docket was returned to the SAPS. The docket has not yet been resubmitted to the NPA as the investigation is yet to be concluded.

2. The SAPS approached the Senior Public Prosecutor with concerns regarding the manner in which the matter was dealt with. The Chief Prosecutor subsequently investigated the allegations and was satisfied that the prosecutors had provided the necessary guidance and had taken the appropriate steps in the circumstances of that matter. The Chief Prosecutor advised that no further steps were warranted.

Reply:

(a) and (b) The Report on Adult Prostitution (Project 107) of the South African Law Reform Commission (the Report) was released into the public domain on 26 May 2017. The public and interested parties may consider and comment on the Report. The Department of Justice and Constitutional Development is embarking on the consultation process with internal governmental stakeholders on the legislative and non-legislative interventions due to the cross cutting impact of the recommendations. This internal process will consider the recommendations in a holistic and coordinated manner. A public participation process will be followed to facilitate debate and input from members of the public.

(c) The Department has indicated that this process of internal consultation will begin in October 2017. This process will be extensive as it must delve into all aspects of the implementation of the non-legislative recommendations. I will thereafter receive a report from the Department which will enable me to make a decision on the introduction of legislation.

Reply:

In respect to the entities reporting to me, I have been informed as follows:

1. Legal Aid South Africa:

There are no application dates for members. The members of the Board are appointed by the Minister in terms of the Legal Aid South Africa Act, 2014 (Act No. 39 of 2014). The Board of Legal Aid South Africa is fully constituted. As a result, there are no Board vacancies currently.

2. Council for Debt Collectors:

There are no applications dates set for positions on the Council for Debt Collectors. In terms of the Debt Collectors Act, 1998 (Act No. 114 of 1998), 10 Council members are appointed by the Minister of Justice and Correctional Services, of which 7 members are appointed based on nominations received from the debt collection industry, law society of South Africa, Magistrates commission and an institution representing consumer interests. The Chairperson and 2 remaining members are appointed in the Ministers discretion.

In terms of section 3(4) of Act No. 114 of 1998, a member of the Council holds office for a term, not exceeding three years, determined by the Minister at the time of the member's appointment. The section also provides that a member may be reappointed at the expiration of his or her term of office.

3. South African Law Reform Commission:

Section 3 of the South African Law Reform Act, 1973 (Act No. 19 of 1973) provides for the appointment of the Commissioners by the President and does not require the prospective Commissioners to apply for these positions.

4. Special Investigating Unit

The Special Investigating Unit does not have a Board as it is a Schedule III Public entity, with the Accounting Authority fulfilling the role of the Board.

5. Rules Board for Courts of Law

There are no applications dates set for positions of the Rules Board as the Board is accountable to the Minister in terms of the Act. The Minister appoints when there is a vacancy and/or prior to the expiry of the terms of the Board.

Reply:

When are the application dates (a) opening and (b) closing for the board positions of all entities and councils reporting to him?
		(a)	(b)
b)Entities	CGS	7 September 2016	21 September 2016
	MINTEK	21 February 2016	06 March 2016
	SDT	21 February 2016	06 March 2016
	SADPMR	21 February 2016	06 March 2016
	MHSC	9 September 2016	23 September 2016

Approved/Not Approved

Mr MJ Zwane, MP

Minister of Mineral Resources

Date Submitted:-……………/………………/2017

Reply:

(a) & (b) (i) Department of Justice and Constitutional Development including National Prosecuting Authority

Breakdown	Valuation (R’000)		(aa) (R’000)	(aaa) (R’000)	(bbb) (R’000)	(bb) (R’000)
Current	855 883		Zero	855 883	Zero	Zero
Non-current	445 170		Zero	445 170	Zero	Zero
Investments: 0-3 months 3-6 months 6-12months	Zero		Zero	Zero	Zero	Zero
Total	1 301 053		Zero	1 301 053	Zero	Zero

A. The President Fund

Breakdown	Valuation (R’000)		(aa) (R’000)	(aaa) (R’000)	(bbb) (R’000)	(bb) (R’000)
Current	57 551		Zero	57 551	Zero	Zero
Non-current	Zero		Zero	Zero	Zero	Zero
Investments: 0-3 months 3-6 months 6-12months Beyond 12months	476 197 523 224 350 151 57 678		Zero	Zero	476 197 523 224 350 151 57 678	476 197 523 224 350 151 57 678
Total	1 464 801		Zero	57 551	1 407 250	1 407 250

B. The Guardian Fund

Breakdown	Valuation (R’000)		(aa) (R’000)	(aaa) (R’000)	(bbb) (R’000)	(bb) (R’000)
Current	894 430		Zero	894 430	Zero	Zero
Non-current	Zero		Zero	Zero	Zero	Zero
Investments: 0-3 months 3-6 months 6-12months Beyond 12 months	5 000 668 2 424 495 4 351 694 62 524		Zero	Zero	5 000 668 2 424 495 4 351 694 62 524	5 000 668 2 424 495 4 351 694 62 524
Total	12 733 811		Zero	894 430	11 839 381	11 839 381

C. The Third Party Fund

Breakdown	Valuation (R’000)		(aa) (R’000)	(aaa) (R’000)	(bbb) (R’000)	(bb) (R’000)
Current	805 972		Zero	805 972	Zero	Zero
Non-current	Zero		Zero	Zero	Zero	Zero
Investments: 0-3 months 3-6 months 6-12months	Zero		Zero	Zero	Zero	Zero
Total	805 972		Zero	805 972	Zero	Zero

(ii) The following entities have reported as follows:

A. Legal Aid South Africa:

(a) Breakdown of current, non-current assets and investments

(aa) and (bb) Legal Aid SA neither has listed assets nor unlisted investments

(aaa) Legal Aid SA directly holds the following assets:

	Current assets
1.	Trade and other receivables
2.	Prepayments
3.	Deposits
4.	Inventories
5.	Cash and cash equivalents
	Non-current assets
1.	Land
2.	Buildings
3.	Building improvements
4.	Computer equipment
5.	Furniture and equipment
6.	Fittings and fixtures
7.	Leasehold improvements
8.	Motor vehicles
9.	Finance leased assets
10.	Intangible assets
	Investments held
1.	None held

(bbb) Legal Aid SA has no assets held indirectly.

 

(b) Valuation of current, non-current and investments held.

Legal Aid SA directly held the following assets as at 31 March 2017:

	Current assets	Amount
1.	Trade and other receivables
	0 – 3 months	R5 902 188
	3 – 6 months	R54 667
	6 – 12 months	R136 166
	Beyond 12 months	R527 790
		R6 620 810
2.	Prepayments
	0 – 3 months	R1 244 889
	3 – 6 months	R21 891 440
	6 – 12 months	R495 094
	Beyond 12 months	R936 897
		R24 568 320
3.	Deposits
	Beyond 12 months	R1 661 651
		R1 661 651
4.	Cash and cash equivalents
	0 – 3 months	R245 971 703
	(cash set aside for creditors and provision for external legal practitioners who have been briefed.	R245 971 703
5.	Inventories
	0 – 3 months	R1 664 789
		R1 664 789
	TOTAL	R280 487 273
	Non-current assets	AMOUNT
1.	Land	R3 556 000
2.	Buildings	R24 143 169
3.	Building improvements	R8 955 909
4.	Computer equipment	R58 544 938
5.	Furniture and equipment	R4 381 060
6.	Fittings and fixtures	R439 675
7.	Leasehold improvements	R10 690 249
8.	Motor vehicles	58 929 637
9.	Finance leased assets	R1 099 255
10.	Intangible assets	R5 684 942
	TOTAL	R176 424 834

	Investments held
1.	None held

B. Special Investigating Unit: see table link below:

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/Doc1RNW2888SIU_TABLE.pdf

Reply:

The National Small Business Advisory Body (The Council) is being established in terms of Section 2 of the National Small Business Amendment Act, 2003 (Act No. 26 of 2003) and the members of the Advisory Body are appointed by the Minister of Small Business Development in terms of Section 3(1) of the Act.

The Minister of Small Business Development invited nominations from the general public, small business organisations and interest groups in terms of Section 3(1) of the National Small Business Amendment Act to serve on the Advisory Body. From the nominations received, the Minister of Small Business Development is mandated to select amongst the list of nominees and appoint the members of the Small Business Advisory Body for a period of three years.

To date, the Panel approved by the Minister has finalised the process of shortlisting. All relevant documents and a shortlist of verified names by the DSBD Human Resource Directorate were submitted to the Minister for consideration of the appointment to the Council.

Reply:

Assets held by the Department and each of the entities are disclosed on the Annual Financial Statements. Information required can therefore be obtained on the annual report tabled by the Department in September 2017 to Parliament. The annual report are the key reporting instruments for departments and its entities to report against the performance targets and budgets outlined in the strategic plans, read together with the ENE.

Approved/Not Approved

Mr MJ Zwane, MP

Minister of Mineral Resources

Date Submitted:-……………/………………/2017

Reply:

1. The investigation is a two-pronged process, i.e. an institutional investigation and probe by law enforcement agencies. The internal process at the University of KwaZulu-Natal is expected to be completed by end of the year.
2. The decision to make the internal investigation findings public rests with the Council of the university.

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 2865 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE:

Reply:

At the time, I was undergoing a medical procedure that disfigured my face. I was advised by my medical practioner to avoid high profile public events. The President agreed that, under the circumstances, the Ministry could be represented by the Deputy Minister.

Reply:

1. I have been informed that there is only one (1) reported case since 2010 (For National and Provincial Departments).
2. The Honourable Member should note that the Department of Justice and Constitutional Development has reported that: No data was collected during 2010/11 to 2014/15 financial years. The table below provides details of information captured from 2015/16 and 2016/17 financial years as well as the first quarter of the current (2017/18) financial year:

Verified data 2015/16 to 2016/17 for both National and Provincial Departments:

Year	No. of matters settled	Amount Claimed	Amount Awarded
2015/16	969	R1 330 597 548.02	R453 750 543.47
2016/17	787	R815 767 876.25	R347 354 310.86

Unverified data 2017/18 for both National and Provincial Departments:

Year	No. of matters settled	Amount Claimed	Amount Awarded
Quarter 1	275	R251 194 125	R112 552 023

Reply:

I have been advised that the Master is not in a position to appoint Trustees, and the reasons for not issuing the letters of authority are as follows:

a) The judgment and order have been taken on appeal, hence the operation and execution of the latter have been suspended; and

b) The application by the Trustees Elect in terms of Section 18 (3) of the Superior Courts Act 10 of 2013, to allow the order to be operational and executable pending the outcome of the appeal, was dismissed by the Full Bench of the Western Cape High Court.

  

Reply:

1. No, the office is not authorised to close at 15h00 as the Department’s offices official hours are 08h00 to 16h00 on weekdays. The Office Manager however, has discretion to decide on the queue cut off time depending on the number of clients on the day to be served. This depends on the number of clients already inside the office before closing time. This minimises the risk of clients refusing to leave the office at knock-off time and thus forcing the staff to perform unpaid overtime.

2. The office is short-staffed by one official currently and is operating with four officials. The standard norm for the staff compliment for a modernised office is a minimum of five officials. An additional post was approved for the office recently and the process of recruitment of the fifth official for the office has been completed and is awaiting approval of the appointment.

Remarks: Reply: Approved / Not Approved

Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

(1) By 30 March 2018 as a pilot phase.

(2)(a) Countries and Cities where Visa Facilitation Centers are opened as per the table below:

(i) Countries	(ii) Cities
1. India	Delhi/ Mumbai/ Kolkata/ Gurgaon/ Pune/ Ahmedabad/ Goa
2. Nigeria	Lagos/ Abuja/ Port Harcourt
3. China	Beijing/ Shanghai/ Chengdu/ Guangzhou/ Wuhan/ Xi’an/ Shenyang/ Hangzhou/ Jinan
4. Angola	Luanda
5. Democratic Republic of Congo	Kinshasa/ Lubumbashi
6. Kenya	Nairobi
7. Ghana	Accra
8. Uganda	Kampala
9. United Kingdom	London/ Edinburgh/ Manchester
10. Zimbabwe	Harare/ Bulawayo
11. Botswana	Gaborone
12. Iran	Tehran
13. United Arab Emirates	Dubai
14. Mongolia	Ulaanbaatar
15. Senegal	Dakar
16. Pakistan	Karachi/ Lahore/ Islamabad
17. Philippines	Manila
18. New Zealand	Wellington/ Auckland

(2)(b)(i) The information is as follows:

(aa) Countries	(bb) Cities
Egypt	Cairo

(2)(b)(ii) January 2018

Remarks: Reply: Approved / Not Approved

Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

Small Enterprise Development Agency (SEDA) board positions

The Department issued call for nominations for members to serve on board of SEDA in the various print media from 31st July 2016 and the advert closed on 26 August 2016.

Small Enterprise Finance Agency (SEFA) board positions

Call for nominations for members to serve on board of SEFA was issued in various print media from 12th of July 2015 and the advert closed on 27 July 2015.

All board vacancies are filled, however a need for appointment of additional SEFA board members was recently identified. The Department of Small Business Development (DSBD) initiated the recruitment process of same in accordance with Cabinet approved Handbook for the appointment of persons to boards of state and state controlled institutions, section 31 (f) consulting with the parent department and (h) using departmental databases. The process is underway.

National Small Business Advisory Council

  a) The call for nominations was published on 23 August 2015.

   b) The closing date was 3 September 2015.

Reply:

a(i): A summary of funds received and repaid is reflected in the table below, as per the records in the annual financial statements:

Financial Year	Funds Received or Paid
	Initial capitalisation R3 137 million
2003/4	R6 089 million shareholder loan advanced
2004/5	R 4 000 million shareholder convertible loan
2005/6	R 1 600 million of shareholder convertible loan repaid (balance of R2 400 million remained)
2006/7	R 8 450 million of above loans was capitalised
2007/8	R1 564 million subordinated loan raised. Capitalised in 2009/10
2017/18	R2 208 million recapitalisation (30 June 2017)

a(ii): A summary of the Going Concern guarantees and utilisation towards loans or other purposes as is listed in the table below:

Guarantee Awarded	Amount	Utilisation	Balance
	R’m	R’m	R’m
Subordinated Loan – Nedbank (Mar 2007)	1 300	1 300	Nil
Going Concern Guarantee (Sep 2009)	1 600
(Allocated to ATL, Sep ‘16)		541
Working Capital Utilisation (Dec ’14)		1 055	4
Going Concern Guarantee (Sep 2012)	5 006
Working Capital Utilisation (Jul ’14)		1 300
Working Capital Utilisation (Jul ’14)		1 500
Working Capital Utilisation (Dec ’14)		1 700
Working Capital Utilisation (Dec ’14)		295	211
Going Concern Guarantee (Dec 2014)	6 488
Working Capital Utilisation (Dec ’14)		450
Working Capital Utilisation (Apr ‘15)		1 500
Working Capital Utilisation (Jun ‘15)		1 500
Working Capital Utilisation (Jun’16) Bridge		1 000	2 038
Going Concern Guarantee (Sep 2016)	4 720
General Short Term Banking Facilities (Dec’16)		830
Working Capital Utilisation (Dec’16) Bridge		1 292
Working Capital Utilisation (Mar‘17) Bridge		757
LC and Guarantee Facilities (Mar’17)		522
ATL Credit Card Exposure (Apr’17)		768
Working Capital Utilisation (May‘17) Bridge		104	447
TOTAL	19 114	16 414	2 700

Reply:

The legal instruments relating to the implementation of the aspects of Vision 2063 relating to Free Movement are still being negotiated by the African Union Member States. Upon adoption by the African Union, the Member States will have to sign and, in accordance with their constitutional requirements, ratify and domesticate the legal instruments.

In the case of South Africa, if the legal instruments are ratified and domesticated, all relevant Departments and their entities or agencies will have to implement them as it would be the law in the Republic.

Remarks: Reply: Approved / Not Approved

Mkuseli Apleni Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

A. Whether an Official from department was present at Waterkloof Airport On its arrival on 16 August 2017 at 19:11 pm

Officials from the Department of Home Affairs were present during the embarking of the Aircraft carrier Z-WPE on its arrival

B. Whether an Official of the department was present during the departure of Z-WPE on 20 August 2017 at 01:19 am.

Officials from the Department of Home Affairs were also present during the departure of Z-WPE on 20 August 2017 at 01:19 am

(aa) Full name

Full names: David Dihele

Full names: Busi Nkambule

Full names: Molefe Machaba

(bb) Professional designation:

As per (aa) above, the professional designations are:

Professional Designation: Chief Immigration Officer

Professional Designation: Chief Immigration Officer

Professional Designation: Immigration Officer

(cc) The nationality of every individual whose passport or travel documents were processed

All individuals processed were Zimbabwean Nationals on arrival we processed 45+1=46 Pax and on departure it was 57+ 1 =58 Pax

(iv) When was the officials notified that his presence at the airport is required?

The Officials have been part of planning for the SADC Summit. The Office has been planning the summit from June.2017. There was a permanent deployment of immigration Officers for the duration of the summit from 11-22 August.2017.

 

Remarks: Reply: Approved / Not Approved

Mkuseli Apleni Prof. Hlengiwe Mkhize, MP

Director-General Minister of Home Affairs

Date: Date:

Reply:

JM Aviation was, as at the time of the tender submission, and still is a BEE partner of AAR. SAA is not privy to the commercial agreement between AAR and JM Aviation and thus is not in a position to respond to the specifics around each party’s role with regard to the contract concluded between SAAT and AAR/JM Aviation. SAAT’s interactions in accordance with the contract are through a dedicated individual who is tasked with the client liaison and quarterly contract review.

a.(i) Not applicable.

a.(ii) Not applicable.

b.(i) Miss M.V. Sokhulu

       Miss I.N. Louw

       Mr V.A. Ndzeku

       Mr J. Aires

b.(ii) Miss M.V. Sokhulu: 35%

        Miss I.N. Louw: 30%

        Mr V.A. Ndzeku: 20%

        Mr J. Aires: 15%

Reply:

NO	PROVINCES	NUMBER OF SCHOOLS ROOFED WITH ASBESTOS SHEETS
1	EASTERN CAPE	1 139
2	FREE STATE	5
3	GAUTENG	29
4	KWAZULU-NATAL	918
5	LIMPOPO	39
6	MPUMALANGA	0
7	NORTH WEST	10
8	NORTHERN CAPE	30
9	WESTERN CAPE	892

Reply:

a)  A budget of R 69 364 000.00 has been allocated for the construction of New Birch Acres Primary School.

b) (i) It is anticipated that construction will commence on 24/10/2017.

(ii) Anticipated opening date for the completed school is 12/01/2019.

c) The capacity of the school is 1 200 leaners.

d) A Primary School.

Reply:

1. 

(a) No, construction has not commenced due to budgetary constraints.

(b) The current project status is at feasibility stage and the start date is estimated for 01 April 2020 and completion date is estimated for 20 April 2022.

2. 

(a) The estimated start date for the construction of New Birch Acres Primary is 24/10/2017 and the project is on target to commence on the said date.

(b) Construction for Clayville Primary School is estimated to start on 15/02/2020.

(i) Commencement date for New Birch Acres has not changed and for Clayville Primary School start date is 15/02/2020.

(ii) Opening dates cannot be confirmed at this stage; however, the completion dates are estimated for 31 June 2019 for New Birch Acres and 15 May2022 for Clayville Primary School.

Project name	Project Status	Date: Start	Date: Finish
New Birch Acres Primary School	Procurement	24/10/2017	31/06/2019
Clayville Primary School	Project Inception	15/02/2020	15/05/2022
Esselenpark Primary School	Feasibility	01/04/2020	20/05/2022

Reply:

The Department currently employs 206 staff members excluding interns. Of the 206 employees, 76 are non-permanent employees (NPE). Therefore the Department has 130 permanent employees on its establishment.

Of the 130, there are 24 former MK members constituting 18% of the permanent employees. They hold the following positions:

• 1 x Deputy Director General
• 2 x Chief Directors
• 4 x Directors
• 13 x Deputy Directors
• 4 x Assistant Directors

Of the 76 NPE’s, four (4) are from former MK members constituting 5% and they hold the following positions:

• 1 x Acting Director General
• 1 x Director
• 1 x Deputy Director
• 1 x Assistant Director

In total the Department has 28 employees from former MK constituting 14% of the entire Department workforce.