Questions and Replies

Reply:

The majority of coal supply agreements (CSA) are contracted on an energy basis (Giga joules). Some CSAs including the cost-plus, and a few fixed-price are already on a volume basis (Tonnes). In order to provide the quantity of coal, CSA’s on an energy basis had to be converted to tonnes, using the contracted and expected calorific value.

Furthermore, terms and conditions of the CSA provide flexibility in the volumes delivered to each power station, accommodating operational requirements such as the actual power station’s burn requirements.

Table 1: Names of the current coal suppliers for each of Eskom’s coal power station, quantities of coal assigned and the length of each contract.

(a) Supplier Name	(a) Power Station Name	(c) Contractual Volumes Per Annum (Mt)	(d) Length of the contract (Years)
Umsimbithi Mining (Pty) Ltd - Wonderfontein	Arnot	2.4	3
Exxaro Coal Mpumalanga (Pty) Ltd - NBC	Arnot/Komati/Tutuka	2.88	8
Vunene Mining (Pty) Ltd – Usutu	Camden	1.20	5
Silverlake Trading 447 (Pty) Ltd - Uitgevalen	Camden	0.60	5
Sudor Coal (Pty) Ltd - Halfgewonnen	Camden	2.16	10
South 32 (Pty) Ltd (BECSA) - Middelburg Mine Services	Duvha	10.00	41
Liketh Investments (Pty) Ltd - Tavistock/Tweefontein	Duvha/Komati	1.30	7
HCI Khusela Coal (Pty) Ltd – Palesa	Grootvlei	1.92	8
Optimum Coal Holdings – Optimum	Hendrina	5.50	26
Liketh Investments (Pty) Ltd - KK Pit 5	Hendrina	2.40	9
South 32 (Pty) Ltd (BECSA) - Khutala	Kendal	13.30	40
African Exploration Mining and Finance Company - Vlakfontein	Kendal	1.50	5
Tshedza Mining Resources (Pty) Ltd - Manungu	Kendal/Kusile	1.62	15
Lurco Mining Services (Pty) Ltd - VDD	Komati	0.48	7
Koornfontein Mines (Pty) Ltd - Koornfontein	Komati	2.40	7
Anglo American Inyosi Coal SA (Pty) Ltd - Kriel	Kriel	8.50	40
African Exploration Mining and Finance Company - Chilwavhusiku	Kusile	0.9	10
African Exploration Mining and Finance Company - Mzimkhulu	Kusile	2.48	10
Universal Coal Development I (Pty) Ltd - Wolvenfontein	Kusile/Kendal	2.00	9
Anglo American Thermal Coal SA (Pty) Ltd - New Vaal	Lethabo	17.80	40

(a) Supplier Name	(a) Power Station Name	(c) Contractual Volumes Per Annum (Mt)	(d) Length of the contract (Years)
Glencore (Xstrata) / African Rainbow Minerals JV - Goedgevonden	Majuba	2.80	17
Izimbiwa Coal (Pty) Ltd (previously Shanduka) - Graspan	Majuba	2.10	8
Kuyasa Mining (Pty) Ltd – Delmas	Majuba	1.68	8
Tegeta Exploration and Resources (Pty) Ltd - Brakfontein	Majuba	1.36	11
Wescoal Mining (Pty) Ltd - Elandspruit (Majuba)	Majuba	0.42	5
Ntshovelo Mining Resources (Pty) Ltd - Vlakvarkfontein	Majuba	1.20	3
Iyanga Mining (Pty) Ltd – Klipfontein	Majuba/Kendal/Kusile	1.80	3
Perisat Investments (Pty) Ltd - Rirhandzu	Majuba/Kusile	1.20	5
Exxaro Coal (Pty) Ltd – Grootegeluk	Matimba	15.30	45
Exxaro Coal (Pty) Ltd – Matla	Matla	10.10	40
Welgemeend Colliery (Pty) Ltd - Welgemeend	Matla	0.84	8
HCI Coal (Pty) Ltd – Mbali	Matla	0.24	4
Universal Coal Development (Pty) Ltd - New Clydesdale Complex	Matla	1.20	7
Izimbiwa Handling Systems (Pty) Ltd - Doornrug	Matla	0.60	5
Overlooked Colliery (Pty) Ltd - Overlooked	Matla	1.29	6
Exxaro Coal (Pty) Ltd – Grootegeluk	Medupi	15.10	49
Anglo American Thermal Coal SA (Pty) Ltd - New Denmark	Tutuka	5.10	40
Keaton Mining (Pty) Ltd - Vanggatfontein	Tutuka	1.92	11
Stuart Coal (Pty) Ltd - East Block	Tutuka	1.44	8
Wescoal Mining (Pty) Ltd - Elandspruit (Tutuka)	Tutuka	1.14	5

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(a)(b) Business Community, Traditional Leaders, Representative of Local and Provincial Government and Leaders of Local and Provincial Government. Amongst the guests, six (6) of them have personal relationship with the Minister and the rest professional.

(c) SAA.

(d) Economy.

(e) Department expenditure relating to Quarter (1) Financial year 2017/18 has been disclosed in the quarter one (1) report that has been tabled in Parliament Portfolio Committee for Public Service and Administration on 13 September 2017.

2. The Department paid for accommodation. The accommodation costs includes bed, breakfast and dinner; hence no additional costs were paid for food and beverages for any of the guests.

Reply:

No.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

 

Reply:

(1)(a) Yes.

  (i) DRDLR entered into a MoA with Okhahlamba Local Municipality on 20 December 2016.

  (ii) DRDLR has funded similar projects in previous financial years like the The Beaufort West Youth Hub in Western Cape; and the Jacobsdal Sport Complex and Community facility in the Free State province. The agreement stipulates that an amount of R20m will be made available over the 2016-2017 and 2017-2018 financial years based on invoices submitted; and based on physical progress onsite.

  (iii) Cabinet approved the Comprehensive Rural Development Programme (CRDP) in 2009 that provides the statutory grounds for supporting this project.

(b) Falls away

(2)   Yes. The Municipality requested project support directly from the DRDLR.

  (a) The Mayor of Okhamhlamba, formally requested support for the project on the 24 February 2016.

   (b) Falls away, answered in section 1(a)(ii) above.

(3) DRDLR signed the agreement with the Okhahlamba Local Municipality, not with a third party.

Reply:

(a),(b) There are no applications for boards/councils .Members are appointed by the Minister

Reply:

REGIMENTS	TRILLIAN
FY	Amount (R)	Authorised by	Purpose		Amount (R)	Authorised by	Purpose
2013/14	3 648 000.00	CEO/CFO	Funding plan and balance sheet optimisation.			CEO/CFO	Funding plan and balance sheet optimisation.
2014/15	1 777 123.00
2015/16	2 793 000.00			2016	5 700 000.00

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(a) 4345. Please refer to the table below for breakdown per province.

PROVINCE	YEAR	NO. OF LEASE AGREEMENTS
EASTERN CAPE	1999	5
	2000	6
	2001	3
	2002	3
	2003	3
	2004	7
	2005	4
	2006	4
	2007	14
	2008	42
	2009	37
	2010	24
	2011	26
	2012	25
	2013	27
	2015	5
	2016	12
EASTERN CAPE TOTAL		247
FREE STATE	2008	1
	2009	3
	2010	4
	2011	64
	2012	163
	2013	43
	2014	9
	2016	81
	2017	20
FREE STATE Total		388
GAUTENG	2004	1
	2006	2
	2007	59
	2008	29
	2009	24
	2010	101
	2011	31
	2012	36
	2013	44
	2015	23
	2016	13
	2017	2
GAUTENG Total		365
KWAZULU-NATAL	1995	1
	2003	15
	2005	1
	2006	6
	2007	27
	2008	26
	2009	18
	2010	29
	2011	21
	2012	11
	2013	6
	2016	15
KWAZULU-NATAL Total		176
LIMPOPO	1998	4
	2002	1
	2004	34
	2005	10
	2006	6
	2007	4
	2008	26
	2009	71
	2010	67
	2011	36
	2012	79
	2013	25
	2014	1
	2015	7
	2016	34
	2017	5
LIMPOPO Total		410
MPUMALANGA	1997	2
	2000	12
	2006	4
	2007	121
	2008	76
	2009	137
	2010	274
	2011	130
	2012	157
	2013	132
	2014	1
	2015	7
	2016	7
	2017	5
MPUMALANGA Total		1065
NORTH WEST	2002	3
	2003	1
	2004	1
	2005	5
	2006	13
	2007	68
	2008	62
	2009	141
	2010	167
	2011	239
	2012	158
	2013	108
	2014	11
	2015	48
	2016	82
	2017	42
NORTH WEST Total		1149
NORTHERN CAPE	2006	1
	2007	2
	2008	13
	2009	53
	2010	47
	2011	74
	2012	43
	2013	46
	2015	42
	2016	89
	2017	20
NORTHERN CAPE Total		430
WESTERN CAPE	2007	2
	2008	8
	2009	18
	2010	12
	2011	6
	2012	26
	2013	14
	2014	2
	2015	6
	2016	19
	2017	2
WESTERN CAPE Total		115
Grand Total		4345

(b) Rental amount collected by State Land Lease Debtors on specified Leases
	2011/2012	2012/2013	2013/2014	2014/2015	2015/2016	2016/2017	TOTAL
EC	89 071.07	123 996.34	178 248.40	94 396.00	48 779.90	249 056.60	783 548.31
FS	355 863.14	349 063.88	363 273.59	544 373.97	525 502.13	569 537.64	2 707 614.35
GP	90 831.91	109 548.38	121 140.40	29 012.20	271 444.94	451 614.52	1 073 592.35
KZN	112 129.50	14 383.75	152 107.73	144 233.39	153 913.33	198 573.08	775 340.78
LP	177 497.15	189 998.14	126 870.37	1 050 649.68	28 225.04	307 280.39	1 880 520.77
MP	64 666.99	55 931.29	68 657.62	13 112.54	446 701.19	7 210 705.23	7 859 774.86
NC	159 347.59	106 231.44	130 539.66	60 085.30	220 250.00	703 271.85	1 379 725.84
NW	1 304 415.45	1 390 498.52	1 164 881.64	381 455.01	549 388.42	1 285 256.43	6 075 895.47
Total	2 353 822.80	2 339 651.74	2 305 719.41	2 317 318.09	2 244 204.95	10 975 295.74	22 536 012.73

(b) (i )Rental amount collected by ALHA on specified Leases
Province	2011	2012	2013	2014	2015	2016	2017	TOTAL
EC	121 173	885 218	1 391 593	362 877	158 643	552 977	838 502	4 310 983
FS	-	53 157	505 285	725 981	263 345	838 905	1 008 345	3 395 018
GP	25 000	108 000	643 003	346 813	-	127 688	191 328	1 441 832
KZN	1 623 241	4 171 773	5 340 746	1 014 388	467 844	312 302	1 547 229	14 477 523
LP	-	77 795	414 162	196 552	142 068	97 012	244 406	1 171 995
MP	774 692	7 125 631	10 396 864	1 261 190	266 605	618 871	2 693 299	23 137 152
NW	87 087	509 699	1 029 662	753 918	680 688	169 996	1 309 277	4 540 327
NC	117 001	1 004 231	400 721	478 145	453 242	113 388	242 406	2 809 134
WC	603 561	323 119	354 009	1 021 715	193 747	599 801	862 972	3 958 924
Total	3 351 755	14 258 623	20 476 045	6 161 579	2 626 182	3 430 940	8 937 764	59 242 888

Reply:

Board positions become available when terms of Office come to an end, also when there are vacancies due to various reasons (including resignation and death). All Board positions are normally advertised in the various Media Platform..

Reply:

(1)(a) The Minister inherited the 26 post that were in the fixed establishment in the Ministry that was approved by her predecessor. All 26 positions were funded.

Six (6) (Staff) members were transferred from the Ministry of Communication to the Ministry for the Public Service and Administration following the reconfiguration of the Cabinet on the 31st of March 2017.

Seventeen (17) Staff Members were appointed to the Ministry to fill vacant positions in the already existing and approved Ministry establishment. These positions became vacant because:

• Number of staff members who were previously seconded to the Ministry from departments (DPSA & Stats SA) returned to their original positions
• Staff transfer from the Ministry for the public Service and Administration t the Ministry of Communications
• Resignation of staff from Ministry for the Public Service and Administration
• End of term of contracts of staff from Ministry for the Public Service and Administration.

The Minister appointed Staff members from Level 4 to Level 14 in terms of Section 66(2) of the Public Service Regulations, 2016

Financial information will be disclosed on the annual report submitted to Parliament as required by the PFMA.

Minister only have professional relationship with all staff members.

Reply:

IDC initiated the Masorini Iron and Steel Project (the “Project”) in 2010. The rationale for the project was to beneficiate local raw material and export semi-finished goods like steel products. The IDC completed a Project pre-feasibility study (“PFS”) for establishing a low cost iron and steel facility in South Africa based on the utilisation of high quality domestic raw material resources including Palabora magnetite (a by-product of copper mining) as the primary source of iron ore. In September 2014, HESTEEL (previously called Hebei Iron and Steel or “HBIS”), IDC and China Africa Development Fund (“CADFund”) signed a Memorandum of Understanding and started co-developing the Project.

I have been furnished with a reply by the CEO of the IDC, Mr Geoffrey Qhena, which provides additional details and a status report on the Project.

Update provided by IDC CEO:

(a) The project was put on hold in July 2016 due to the persistent unfavourable global economic climate and continued over-supply in the global steel market which are expected to persist in the medium to long term. This affected the viability of the Project.

(b) Total expenses incurred amounted to R129.2 million since inception of the project in 2010. In lieu of benefits and lessons learnt, the IDC derived in-depth understanding of the country’s resources required to establish a low cost steel making facility over and above access to international steel producers and technology providers. The IDC was also able to develop a better appreciation of the technology suited for our resources including an understanding of why our upstream sector was not competitive internationally. In addition we were also able to use the information to redirect our strategy towards modularised steel making facilities (mini mills) which has had a positive impact in the lowering of “long” steel product prices which are now closer to international prices.

Under the initial study, this Project comprises a fully integrated 2.5Mtpa Iron and Steel Plant which extends from the reclamation and beneficiation of secured magnetite ore from 2 sites in Phalaborwa, to the production of iron and steel in Middleburg. The capacity of the Middleburg site in the initial PFS was 1.35Mpta of flat steel and 1.15Mpta of long steel.

Subsequent to the conclusion of the PFS, an opportunity in the steel sector was identified which would allow for the production of steel on two separate sites. The combined capacity of the sites in the current thinking will result in an increase in capacity to 3.5Mpta, split between 2,5Mpta of flat steel products and a 1Mpta of long steel products.

The PFS provide a compelling case to those international steel producers who had expressed serious intent in entering the South Africa and regional markets.

The plan was supported by:

• The key attributes of the project, namely its ability to be the lowest cost steel producer in Sub Saharan Africa;
• Proximity to both local and regional markets;
• The availability of readily sourced stockpiled magnetite with a secure off take agreement;
• The use of Rotary Hearth Furnace (“RHF”) technology which did not require the importation of expensive coking coal and was well suited to utilise the low cost ore available;
• The location and availability of thermal coal to generate power and gas;
• Access to infrastructure and outsourcing of logistics, gas and power utilities;
• Market and Government support of modern lower cost facility operated by a new entrant, which would have been supported by downstream users of steel products, and offer an opportunity to acess new markets both within South Africa and the rest of Africa.

A Project Information Memorandum (PIM) was issued to invite participation from a selected group of global Companies to review the key findings, basis and supporting documentation on the PFS (herein referred to as the “Due Diligence”) with the specific objective of attracting participation with IDC in completing the Detailed Feasibility Study (“DFS”) phase.

A Participation Agreement was concluded with Heibei and signed to formalise the arrangements and commitments between the parties.

The Project formed part of the country’s strategic plan to reduce the local production costs of steel and thereby further stimulate economic growth.

South Africa is the natural choice for sourcing construction products, equipment and other manufactured goods in the SADC region and the Masorini enhanced this position.

Africa has proven to be relatively resilient during the recent global financial and economic crisis. Improved macro-fundamentals and increased intra-regional trade was major reason for this saturation of markets and low returns in many developed economies, driving growth in African economies. Neighbouring countries had experienced rapid economic growth in excess of the growth experienced in South Africa, and significant projects are either in progress or mooted in the continent.

This concluded:

• Reclamation and Beneficiation Plant (RBP) – Illustrating what beneficiation is needed on the magnetite ore;
• Iron and Steel Plant (ISP) – An in-depth study on the options available to produce iron and steel;
• Gas and Power Island (GPI) - Describing the gas and power production plant;
• Site Selection, Infrastructure and logistics – Explaining the site selection of the Masorini plant; and
• Environmental and Socioeconomic Impact.

The Project is significantly advantaged by the availability of readily sourced stockpiled magnetite, and abundant low costs and otherwise stranded coal resources, which will enable the Project to produce finished products at a cost that will be lower than the project cost of other South African producers.

The information contained in the PFS is being used and will be used in some of the other projects that the IDC is developing.

-END-

Reply:

(a) (i) and (ii) EMS is established in the Provinces as a mobile health facility and as such has infrastructure specifically for EMS which may or may not be attached to a health facility. The number of ambulances operating from health facilities and those operating from independent ambulances stations are detailed below.

(b) Given that this is not standard practice for EMS to be attached to a specific health facility, it is not possible to advise on the extent of shortage of ambulances at fixed health facilities

Table 1

PROVINCE	Number of ambulances operating from EMS Stations attached to hospitals and clinics which are managed by EMS	Number of ambulances operating from EMS Stations not attached to hospitals and clinics
Eastern Cape	58	28
Free State	133	11
Gauteng	275 and a further 100 new ambulances will be available.	52
		402 are operated from Metropolitan Municipalities
KwaZulu-Natal	344	191
Limpopo	292	97
Mpumalanga	0	98
North West	66	0
Northern Cape	80	55
Western Cape	137	135

Going forward, it is recommended that future planning and construction of hospitals and clinics should include provisions for EMS Stations to enhance integrated healthcare.

END.

Reply:

The total number of transactions approved between January 2000 and March 2016 is 4450.

The IDC offers the following financing products:

• term debt,
• revolving credit facilities,
• guarantees,
• working capital loans,
• business support loans and
• quasi-equity (e.g. preference shares or subordinated loans).

The IDC may also take direct equity investments in companies at times.

The products and terms are structured in a way that will suit the business’ needs most appropriately and may be used on their own or in combination depending on the clients’ requirements.

Debt facilities have fixed repayment terms (monthly, quarterly, semi-annually or annually) determined by the cash flow of the company whereas equity-type transactions have longer terms and do not necessarily have fixed repayment terms, rather milestone or event based repayment terms and /or a bullet payment at a future date.

In respect of loan financing, IDC offers a discount when achieving the development objectives as determined by IDC from time to time.

Over the years the IDC has managed a range of different funds in an effort to respond to various needs in the economy, each with customised pricing. For example, the Gro-E Youth programme for youth-empowered enterprises (more than 25% equity held by youth) has a loan cost of prime less 3% and an equity cost-structure based on a 6% Real After Tax Internal Rate of Return and where jobs are created at a cost of below R500 000 per employment opportunity.

Prior to April 2017, the IDC had a client confidentiality framework in place that is typical for a financial institution. Since 1 April 2017, the IDC provides information on business partners that it funds, on the IDC website. Approvals for the first quarter of the 2017/18 financial year are available on the website.

In accordance with the above, the IDC assures me that it has mechanisms in place to ensure that in any transaction appropriate consideration is taken in terms of amounts approved, interest charged, and requisite security taken over and above the provision of post investment support provided to IDC funded clients.

Additional details may be accessed from the IDC Annual Reports, copies of which are tabled in parliament and which may also be accessed at www.idc.co.za

-END-

Reply:

1. The Competition Commission is not required to have a board. In accordance with Section 22 of the Competition Act 89 of 1998, The Minister appoints the Commissioner and Deputy Commissioner.
2. The Competition Tribunal is not required to have a board. In accordance with Sections 29 and 30 of the Competition Act 89 of 1998, The President, on the recommendation of the Minister, appoints the Tribunal Chairperson, Deputy Chairperson, full-time and part-time Tribunal members.
3. ITAC does not have a board, but consists of a full-time Chief Commissioner and part-time Commissioners.
4. IDC has a board in place and board members are reappointed, appointed or retired at the Annual General Meeting. The next AGM to consider board membership will take place in 2018.

-END-

Reply:

(1) EMS in Ekurhuleni Metropolitan Municipality is provided at provincial level by Gauteng Emergency Medical Services as well as at local government level by Ekurhuleni Metropolitan Municipality.

(i) An average of 25 of a total pool of 45 ambulances owned and managed by Gauteng Department of Health Provincial EMS are operational per shift for specific functions within Ekurhuleni Metropolitan Municipality.

(ii) An average of 63 of a pool of 167 ambulances are operational per shift within the boundaries of Ekurhuleni Metropolitan Municipality - 83 of the 167 ambulances are owned by Gauteng Department of Health Provincial EMS and 84 of the 167 are owned by Ekurhuleni Metropolitan Municipality. The day-to-day operations of these vehicles are managed by Ekurhuleni Metropolitan Municipality.

The total combined fleet available for operations within Ekurhuleni Metropolitan Municipality is 212.

(2) (a) The national normative ratio (which is used as a guide) is one ambulance per 10 000 people (1:10 000);

(b) The number of people in Ekurhuleni Metropolitan Municipality is estimated at 3 178 470 as per StatsSA June 2016

(3) (a) (i) The minimum number of registered EMS personnel to work on an ambulance is two (2);

(ii) The basic equipment that is supposed to be on an ambulance at all times is as per Annexure A;

(b) In terms of the Health Professions Act of 1974 all personnel are required to practice within their respective scopes of practice as per their registration categories. All personnel must hold a valid Professional Driving Permit (PDP) and all ambulances are required to be registered as such in terms of the National Road Traffic Act. Furthermore, all Emergency Medical Service providers will be required to comply with the Emergency Medical Services Regulations when promulgated by the Minister of Health. The EMS Regulations prescribe the application and accreditation processes, as well as the minimum standard of staffing and equipments for all categories of pre-hospital vehicles in South Africa in both public and privates services.

END.

Reply:

Neither the Health Professions Training and Development Grant (HPTDG) nor the National Tertiary Services Grant (NTSG) in the Division of Revenue Act (DORA) makes provision to fund Higher Education Institutions, but rather funds hospitals under the Department of Health.

There is no allocation made to KwaZulu-Natal Medical School through either direct or indirect Conditional Grants transfers. This is due to the fact that there is currently no provision in any health sector conditional grant framework allowing the Health Department to fund the medical schools.

Medical Schools are funded from other funding streams, currently the Equitable Share.

END.

Reply:

(1) The World Health Organisation (WHO) provides a guideline threshold of 2:10 000 ratio of health workers (doctors, nurses and midwives) per population. Countries with a density below this threshold generally fail to achieve a targeted 80% coverage rate for skilled birth attendance and child immunisation. A population-based threshold for doctors has been extrapolated from the WHO of 0.55 doctors per 1000 population, but this cannot be applied to hospitals;

(2) (a) 1,939 is the total enrolled students studying towards medical qualification in eight medical institutions across the country;

(b) See attached spreadsheet (please note that this is only public sector data).

(3) There are no published WHO guidelines to adhere to. For the public health sector, the National Department of Health has adopted the Workload Indicator for Staffing Norms (WISN) methodology for determining staffing norms, which has been applied across Primary Health Care facilities. The methodology has not yet been launched at hospitals.

END.

Reply:

(1) Adv. Mosotho Petlane holds the position as the Chairperson of Magalies Water Board.

(2)(a) Yes, Adv. Petlane was charged in 2005 for fraud. However, the case was dismissed by the Court of Law.

(2)(b) No, my Department is not aware of any allegation that was leveled against Adv. Petlane.

(2)(b)(i)Magalies Water does not have the details of the allegations.

(2)(b)(ii)Yes, the case was dismissed by the Court of Law.

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Reply:

(1)(a) The position of the Chief Executive Officer (CEO) of Overberg Water has been vacant since May 2015 to date.

(1)(b) My Department seconded Ms ONV Fundakubi as the acting CEO at Overberg Water. The secondment was effective from 1 July 2015 and terminated on
22 June 2017.

(2) Yes, the current acting CEO, Mr Phakamani Buthelezi, was recommended by the selection panel for permanent appointment as CEO at Overberg Water.

(2)(a) On 9 March 2016, the panel recommended to the Overberg Water Board the approval of the appointment of Mr Buthelezi for the position of CEO at Overberg Water.

(2)(b) My Department wanted the Board and former Acting CEO, Ms Fundakubi to deal with all outstanding issues related to the finalisation of the Annual Report of 2016/17 before processing the appointment of the new CEO.

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Reply:

a) The internal audit function at Magalies Water is outsourced because the entity currently does not have an established internal audit division.

b) The duration of the period is three (3) years. The contract commencement date is 01 October 2015 and will expire on 30 September 2018.

c) The internal audit function is outsourced to PRICEWATERHOUSECOOPERS.

(d) Terms of the contract are as follows:

1. Provision of Internal Audit Services:

• Evaluating adequacy and effectiveness of controls and advising managers at all levels in determining key control indicators and develop recommendations for enhancement or improvement of these controls;
• Assisting the Chief Executive Officer in achieving the objectives of the institution by evaluating and developing recommendations for the enhancement or improvement of processes through which —
• Objectives and values are established and communicated;
• The accomplishment of objectives is monitored;
• Accountability is ensured; and

2. Corporate values are preserved:

• • • Analysing operations and conformity to organisational mandate; and
    • Reviewing the Internal Audit Charter for the approval by the Audit and Risk Committee and Magalies Water Board, and thereafter adhere to the Charter;
    • Liaising with the Risk Specialist in the development of a risk-based 3-year rolling internal audit plan;
    • Conducting forensic audits as and when required;
    • Evaluating specific operations at the request of the Board or management, as appropriate;
    • Maintaining professional audit staff with sufficient knowledge, skills, experience and professional certification to meet the requirements of the internal audit charter;
    • Evaluating adequacy and effectiveness.

(e) The total amount paid is R4 213 594.28

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Reply:

My Department did not implement any emergency Waste Water Treatment Plants (WWTP) projects in the 2014/15 and 2015/16 financial years. The amount spent on emergency works at waste water treatment plants in each province in the 2016-17 financial years is detailed in the table below:

PROVINCE	LOCATION	MUNICIPALITY	PROJECT NAME	NATURE OF INTERVENTION	PROJECT COST
Free Sate	Oranjeville	Metsimaholo	Refurbishment of Oranjeville Waste Water Treatment Works.	Refurbishment of WWTW and Pump Stations (Mechanical and Electrical)	R8 012 848.39
Free Sate	Deneysville	Metsimaholo	Refurbishment of Deneysville Waste Water Treatment Works.	De-sludging of WWTW ponds	R2 468 343.42
Free Sate	Vrede	Phumelela	Refurbishment of Vrede Waste Water Treatment Works.	Refurbishment of WWTW and Pump Stations (Mechanical and Electrical)	R42 457 532.10
Free Sate	Harrismith	Maluti-A-Phofung	Refurbishment of Wilge Waste Water Treatment Works.	Refurbishment of WWTW (Mechanical and Electrical)	R11 853 659.90
Free Sate	Reitz	Nketoana	Refurbishment of Reitz Waste Water Treatment Works.	De-sludging of WWTW ponds and the refurbishment of Mechanical and Electrical components.	R24 409 008.78
Free Sate	Viljoenskroon	Moqhaka	Refurbishment of Viljoenskroon Waste Water Treatment Works.	Refurbishment of WWTW (Mechanical and Electrical)	R15 058 146.26
Free Sate	Bothaville	Nala	Refurbishment of Bothaville Waste Water Treatment Works.	Refurbishment of WWTW and Pump Stations (Mechanical and Electrical)	R17 163 326.86
Free Sate	Frankfort	Mafube	Refurbishment of Frankfort Waste Water Treatment Works.	De-sludging of WWTW ponds and the refurbishment of Mechanical and Electrical components.	R8 816 442.23
Free Sate	Villiers	Mafube	Refurbishment of Villiers Waste Water Treatment Works.	De-sludging of WWTW ponds and the refurbishment of Mechanical and Electrical components.	R8 217 708.53
Free Sate	Qalabotjha	Mafube	Refurbishment of Qalabotjha Waste Water Treatment Works.	De-sludging of WWTW ponds and the refurbishment of Mechanical and Electrical components.	R16 634 295.75
Free Sate	Namahadi	Mafube	Refurbishment of NamahadiWaste Water Treatment Works.	De-sludging of WWTW ponds and the refurbishment of Mechanical and Electrical components.	R27 685 929.09
Free Sate	Parys	Ngwathe	Refurbishment of ParysWaste Water Treatment Works.	Refurbishment of WWTW (Mechanical and Electrical)	R2 450 308.16
Northern Cape	Warrenton	Magareng	Refurb of Warrenton WWTW	Refurbishment	R 10 77 712
Northern Cape	Barkly West	Dikgatlong	Refurb of Barkly West WWTW	Refurbishment	R 14 592 052
Northern Cape	Douglas	Siyancuma	Refurb of Douglas WWTW	Refurbishment	R 23 367 715
Northern Cape	Olifantshoek	Gamagara	Refurb of Olifantshoek	Refurbishment	R 12 925 769
Northern Cape	Dibeng	Gamagara	Refurb of Dibeng WWTW	Refurbishment	R 10 108 813
Mpumalanga	Ermelo	Ermelo (Mpumalanga)	Refurb of Ermelo WWTW	Upgrade	R 44 275 029.44
Gauteng	Leekuil	Leekuil(Vaal)	Refurb of Leekuil WWTW	Refurbishment	R 36 417 498.79
Mpumalanga	Standerton	Standerton	Refurb of Standerton WWTW	Refurbishment	R 14 502 308.22
Gauteng	Vaal Marina	Vaal Marina	Refurb of Vaal Marina WWTW	Refurbishment	R 7 951 441.09

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Reply:

Land bank and DBSA responses are provided below, however, IDC does not report to the National Treasury.

LAND BANK RESPONSES:

(a) (b) (iii)

Distinction between current and non – current assets:

The Group presents the assets and liabilities in decreasing order of liquidity as it provides information that is more reliable and relevant than a current/non-current presentation because the Group does not supply goods or services within a clearly identifiable operating cycle.

Gross Loans by Maturity Value
	Group 2017 R’000	Group 2016 R’000	Bank 2017 R’000	Bank 2016 R’000
< 3 Months	7 685 650	6 209 050	7 685 650	6 209 050
3 – 6 months	4 793 132	4 606 878	4 793 132	4 606 878
6 – 9 months	3 533 562	1 506 583	3 533 562	1 506 583
9 – 12 months	1 004 508	545 831	1 004 508	545 831
1 – 5 years	4 351 860	9 082 557	4 351 860	9 082 557
> 5 years	21 655 326	16 873 417	21 655 326	16 873 417
TOTAL	43 024 038	38 824 315	43 024 038	38 824 315

(aa) Listed Investments:

(aaa) Held directly:

Listed investment (1)
	Group 2017 R’000	Group 2016 R’000	Bank 2017 R’000	Bank 2016 R’000
Rhodes Food Group Holdings Limited	197 000	-	197 000	-

(bbb) Held indirectly:

Assets earmarked for medical aid liabilities Listed investments
	Group 2017 R’000	Group 2016 R’000	Bank 2017 R’000	Bank 2016 R’000
Local equity	242 749	230 734	242 749	230 734
Local bonds	53 187	33 594	53 187	33 594
Foreign equity	49 582	63 794	49 582	63 794
TOTAL	345 518	328 122	345 518	328 122

The assets earmarked for medical aid liabilities are managed through a mandate by Coronation Asset Managers.

(bb) Unlisted investments:

(aaa) Held directly:

Unlisted investments (2)
	Group 2017 R’000	Group 2016 R’000	Bank 2017 R’000	Bank 2016 R’000
Capespan Capital (Pty) Ltd	1 288	849	1 288	849
Acorn Agri (Pty) Ltd	75 000	-	75 000	-
TOTAL	76 288	849	76 288	849

Investments in Land Bank 100% owned subsidiaries
	Group 2017 R’000	Group 2016 R’000	Bank 2017 R’000	Bank 2016 R’000
Land Bank Life Insurance Company (Life Insurer)	-	-	30	30
Land Bank Insurance Company (Short term Insurer)	-	-	350 000	200 000
TOTAL	-	-	350 030	200 030

(bbb) Held indirectly:

Assets earmarked for medical aid liabilities Unlisted investments
	Group 2017 R’000	Group 2016 R’000	Bank 2017 R’000	Bank 2016 R’000
Commodities – Local ETF	2 514	3 563	2 514	3 563
Cash – Local	11 834	25 272	11 834	25 272
TOTAL	14 348	25 835	14 348	28 835

The assets earmarked for medical aid liabilities are managed through a mandate by Coronation Asset Managers.

Investments held by subsidiaries (LBIC)
	Group 2017 R’000	Group 2016 R’000
Equities	412 151	474 424
Commodities	35 568	33 064
Collective investment schemes	370 893	354 568
Bonds	247 763	259 810
Cash deposits and similar securities	146 564	178 045
Investment Policy	13 980	33 986
TOTAL	1 226 920	1 333 897

The above listed investments held by subsidiaries are managed through mandates by with the following Asset Managers:

• Coronation Fund Managers Limited
• Momentum Asset Management
• Argon Asset Management
• Investec Asset Management
• Old Mutual Investment Group (South Africa) (Pty) Ltd Group

DBSA RESPONSE:

2. Equity Investment YE 2016/2017
Unlisted	Beyond 12 months
Direct Investments
Ohorongo	81 313 764
Proparco	452 956 708
The Currency Exchange Fund	578 411 113
Indirect Investments - Private Equity Investments
African Agriculture Fund (Phatisa)	176 917 010
AgrieVie (Strategy Partners)	152 856 925
African Health Fund (Aureos)	243 667 465
African Infrastructure Investment Fund	394 847 707
Convergence Partners	82 385 417
Emerging Capital Partners	615 555 323
Ethos	1
HIFSA	1 867 607 518
International Housing Solutions	190 242 204
Medu Capital	18 699 500
PAIDF	882 236 100
PAIDF 2	21 936 838
PAIP	-
Shanduka	-
Trinitas	76 847 532
Vantage Capital	136 027 906
Frandevco	-
One and only Cape Town Holdings	-
StarSat	-
Development Bank of Zambia	-
Total equity investments	5 972 509 032

Reply:

NATIONAL ASSEMBLY

WRITTEN REPLY

QUESTION 2250

DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 07/08/2017

INTERNAL QUESTION PAPER: 25/2017

2250. Mr R K Purdon (DA) to ask the Minister of Basic Education:

What steps has her department taken to ensure that appropriate career guidance is offered to deaf learners in each (a) full-service school and (b) school for the deaf in each province? NW2484E

RESPONSE: 2250

(a) and (b) The Department of Basic Education (DBE) offers the following career guidance to all learners in the system regardless of the school they attend and barriers to learning they experience:

1. Through the National Curriculum and Assessment Policy Statement (CAPS) for Life Orientation.
2. Through the Khetha programme, the Department of Higher Education and Training, offers career information, advice and counselling services through publications, platforms and campaigns including:

• training and support through exhibitions / career services;
• a National Helpline which is manned by trained career advisers fielding calls from learners and students and providing information, advice and counselling;
• an online platform namely the National Career Advice Portal (NCAP) – to assist users to make three main decisions focusing on subject choice, career decisions, and determining job fit;
• the Apply now campaign which focuses on distributing information booklets; and
• the radio programme which provides career information on national as well as community radio stations in 12 languages.

Reply:

(a)  According to the Sector Plan provided to provinces by the Department of Basic Education, the deadline for placement of orders is 30 June 2017. Provinces are to adhere to the deadline to place orders for their schools hence the Parliamentary Question has been forwarded to provinces to provide the details for the question at hand. The Department of Basic Education is not in possession of the detail. The Honourable Member is advised to direct these questions to the National Council of Provinces or directly to the Provincial Education Departments.

Reply:

(a) Provinces and schools procured Braille titles for learners with visual difficulties in the 2016/17 financial year according to the resources and budget available to them. Out of nine (9) provinces, six (6) provinces procured resources for their visually impaired learners. One (1) of the three (3) provinces that have not procured centrally, Limpopo, indicated that they are working with Braille Production houses within their province to produce Braille Master copies for each subject in each grade. The Department is waiting for responses from other two provinces (Free State and Kwa Zulu-Natal) that did not order Braille textbooks centrally; and will provide such information once it is received.

(b) It has to be noted that Braille books, by their nature, are resources that can be repeatedly utilised, and that schools and provinces are mostly required to procure top-ups for learners with visual impairment. The number of resources procured by all schools and provinces during the 2016/17 financial year is 2941, procured according to the needs of individual learners and schools. The list of titles of the books procured per title per province is attached as Annexure A.

(i) & (ii) The Department of Basic Education (DBE) is not in possession of information on the number of learners with visual impairment who do not currently have their own copy of the required large print books for learning at each school and in each province. The honourable member is advised to direct such a question to the National Council of Provinces or the Provincial Education Departments as it is a provincial competency.

Reply:

(a) has funding been set aside for the initiative?

The Revitalisation of the Agriculture and Agro-Processing Value Chain (RAAVC), as a pillar of the 9 Point Plan was subjected to the Operation Phakisa methodology. The purpose was to deepen the implementation planning and management of RAAVC. Operation Phakisa initiatives are therefore not necessary new, but by and large the up-scaling and fast tracking of existing programmes and projects where applicable. However, there are a few initiatives which are new or calling for the overhauling of existing programmes.

Furthermore, Operation Phakisa is a method through which the private sector, civil society and government are enjoined through the development of 3-feet deep plans of initiatives agreed upon at the five-week Lab. Funding and implementation of the Phakisa initiatives are thus a joint venture between the private, civil and public sector.

Public funds committed to Phakisa are the existing funds within the Department of Agriculture, Forestry and Fisheries as well as the Department of Rural Development and Land Reform, used in a manner to leverage greater private sector buy-in, and investment.

(b) what progress has been made to date in giving effect to the initiative?

The Operation Phakisa Lab outcomes must firstly be wholly owned by all stakeholders and role players within Agriculture, Land Reform and Rural Development. The DAFF and DRDLR have invested a lot of time in communicating and syndicating with industry and civil role players through workshops, closed and open meetings. These engagements are also intended to lead to the finalisation of agreements for implementation among key role players, which will be pronounced on through a public event, namely the Open Day. We are 65% though this phase of Operation Phakisa.

The date for the Open Day will be determined by the Office of the President.

(a) has funding been set aside for the initiative?

The Revitalisation of the Agriculture and Agro-Processing Value Chain (RAAVC), as a pillar of the 9 Point Plan was subjected to the Operation Phakisa methodology. The purpose was to deepen the implementation planning and management of RAAVC. Operation Phakisa initiatives are therefore not necessary new, but by and large the up-scaling and fast tracking of existing programmes and projects where applicable. However, there are a few initiatives which are new or calling for the overhauling of existing programmes.

Furthermore, Operation Phakisa is a method through which the private sector, civil society and government are enjoined through the development of 3-feet deep plans of initiatives agreed upon at the five-week Lab. Funding and implementation of the Phakisa initiatives are thus a joint venture between the private, civil and public sector.

Public funds committed to Phakisa are the existing funds within the Department of Agriculture, Forestry and Fisheries as well as the Department of Rural Development and Land Reform, used in a manner to leverage greater private sector buy-in, and investment.

(b) what progress has been made to date in giving effect to the initiative?

The Operation Phakisa Lab outcomes must firstly be wholly owned by all stakeholders and role players within Agriculture, Land Reform and Rural Development. The DAFF and DRDLR have invested a lot of time in communicating and syndicating with industry and civil role players through workshops, closed and open meetings. These engagements are also intended to lead to the finalisation of agreements for implementation among key role players, which will be pronounced on through a public event, namely the Open Day. We are 65% though this phase of Operation Phakisa.

The date for the Open Day will be determined by the Office of the President.

Reply:

(1) (a) (b) Yes, the Appeal Board was appointed in terms of Section 23 of Animal Improvement Act, 1998 (Act No. 62 of 1998). The Appeal board, under chairmanship of Advocate S Phaswane concluded its assignment on the 29th of June 2017. In its conclusion, the Appeal Board set aside the decision of the Registrar; however the board decided to not consider the scientific process. (Copy of the report is attached as requested).

(2) (a) (b) Yes the department was informed of such instances where breeders have sold and/or illegally exported boerboels as Black Boerboels, even without official registration as a breed with the department. At this stage the matter (s) is under investigation.

Reply:

a) Relevant Degree or BTech in Civil Engineering, Master Degree advantageous (The job advert of the position is attached).

b) The current incumbent is Ms Tsakane Radebe.

c) The position is a 5-year contract and the successful candidate assumed her duties effective from the 01 May 2016.

d) The details of the specified person’s qualifications are as follows:

• Matric
• National Diploma: Mechanical Engineering
• Bachelor of Technology: Mechanical Engineering
• Project Management Professional
• Certified Associate in Project Management

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Reply:

We record our undertaking as that the questions relate to Rand Water Zuikerbosch Pumping Station. We also respond with understanding that stripping refers to demolition of infrastructure for the purpose of constructing the new infrastructure, upgrade refers to augmentation. We refer to augmentation when we upgrade our infrastructure to meet water supply demands.

Rand Water implemented augmentation programmes at Zuikerbosch pumping station to provide additional capacity of 200 Ml/d. Annexure A shows augmentation projects implemented at Rand Water Zuikerbosch pumping station in the last five years. The balance of the other contracts at Zuikerbosch pumping station over the last five years is shown in Annexure B.

(1)(a) Refer to Item 7 on Annexure A regarding what was a demolition work which entailed demolition of an old pilot filter house 2B. Demolition was necessary so that new filter house 2B to provide additional 100 Ml/d could be constructed. Refer to Item 11 on Annexure A was the construction of a new sedimentation tank to provide additional 100 Ml/d. The contractor could not achieve contractual obligations and some structures had to be demolished and reconstructed properly.

(1)(b) Refer to the Items 1, 2, 3, 4, 5, 6, 8, 9, 10, 12, 13 and 14 on Annexure A regarding all upgrades forming part of augmentation projects at Zuikerbosch pumping station as part of additional 200 Ml/d added to the infrastructure to meet water supply demands. Items 7 and 11 on Annexure A refer to demolition work (stripping) and the rest of the items refer to augmentation (upgrades).

(2)(a) Demolition work as referred to in Item 7 on Annexure A shows Jampe Construction being the contractor that failed to demolish an old pilot filter house 2B. They were appointed for R1, 736,009 and were paid R342, 510 at the time of terminating their contract due to non-performance. The termination was referred to mediation as per the provisions of contract and the termination was upheld by the mediator. After they were terminated, their remaining scope of work was added to the work awarded to Superway (Pty) Ltd. In addition to demolition of an old pilot filter house 2B, Superway was appointed for the construction of the new filter 2B.

(2)(b) Refer to Item 11 on Annexure A regarding upgrade workshows Dipcivils (Pty) Ltd being the contractor that failed their contractual obligations to construct a new sedimentation tank. They were appointed for R103, 349,955.00 and were paid R57, 911,310.90 at the time of terminating their contract due to non-performance. As of part recouping the costs, Rand Water has held the surety (R10.3m) and retention (R5.8m) from the contractor. The total amount held is R16.1m which is the sum of surety and retention. Furthermore, Rand Water's Legal Service Department has been pursuing claim for damages. Dipcivils had undergone business administration in the process.

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Reply:

(a) The total number of persons who were given early naturalisation according to the available information is twenty-two (22).

(b) The relevant details for cases which were regarded as exceptional included people who were bringing investment in the country, United Nations representatives, global sports bodies’ executives and executives of multi-national companies. Members will be given a full lists of these cases.

Reply:

The investigation into the death of Mr Herbert Nkabiti is underway and has not yet been completed. The investigation has been commissioned by the board of Boxing South Africa. Once the investigation is complete and the report is submitted to the Department of Sport and Recreation South Africa, the Minister will apply his mind as to the next course of action.

Reply:

(a)(b)(i) (aa)(aaa)(bb)(bbb)

All current and non-current assets form part of the audited Annual Financial Statements and are included in the Department’s and Entities 2016/17 Annual Reports.

Reply:

Chapter Six of the of the Tax administration Act regulates the confidentiality of taxpayer information. In terms of Section 69 (2) of the Tax Administration Act, a SARS official may not disclose “Taxpayer information” to any person who is not a SARS official. Although there are certain exceptions to this general prohibition none of these exceptions permit SARS to disclose detail in the course of answering the questions posed to SARS. 

The Commissioner does not discuss taxpayer information with the Minister.

Reply:

The Lounges are facilities operated by SAA and offer selected passengers, comfort beyond that that is afforded in the airport terminal. Such comfort includes comfortable seating, quieter environment, and often better access to customer service representatives. Other offers include wireless internet access and other business services.

The Lounges mainly serve as a service offering to premium passengers, those flying business class, and to frequent fliers who are Voyager members and have achieved a prescribed voyager membership status.

During financial year 2016/17 SAA’s eight (8) Lounges generated a revenue totaling: (a) R74, 867, 946 at the operating costs of: (b) R106, 519, 595

Philosophy of an Airline Lounge:

An Airline Lounge is more of a differentiating factor than a profit/revenue making stream, for the following reasons:

• The market is seeing increased ground services activity as operators strive to compete on quality provision. The business/first class lounge is an especially important part of the ground service experience, and one of the most critical branding elements for an airline.

• To meet the needs of First Class, Business Class and Airlines Frequent Flyers customers, airlines seek to offer a complete airport to airport experience, not only in the air but also on the ground. Well-designed lounges provide a refuge from a very busy airport and an opportunity for airlines to demonstrate their character, qualities and service level.

• For the airline, the quality of their lounge and lounge services are an extension of their brand and a way of enhancing customer relationships. As passengers spend more time at the airport, due to increased security, congestion and delays, the lounge experience has become a powerful differentiator in airline selection.

Reply:

a) Currently, the Department of Transport does not have any agreement with the Ivory Coast

b) (i) (ii) (c) (d) (e) (i) (ii) Falls away

Reply:

The application dates for Boxing South Africa were as follows:

(a) opened on: 28 July 2017

(b) closed on: 13 August 2017

In the case of the South African Institute for Drug-Free Sport, the advertisement is still to be published, as quotations were awaited from the Government Gazette and the National Press. It is expected that the advertisement will be issued shortly before he end of September 2017 and the closing date for the nominations shall be 30 days from the publication of the advertisement.

Reply:

(a) Since the inception of the contract in October 2009, the toll operator has been paid R3 840 million up to August 2017 for toll operational costs. This amount includes the amount of R476 million paid under provisional sums for amongst others, rates and taxes of all properties related to the project, rental costs of customer services centers, purchasing of e-tags, printing of invoices and other correspondence to violators and posting of these invoices. The honorable member is invited to view the monthly information at the offices of SANRAL.

(b) The contractor participated in a tender process during which the contractor provided rates for the provision of services in terms of the requirements of the Contract. These rates are fixed for the contract period and only adjusted for inflation in accordance with the published CPI. At the end of every month, measurement of the quantity of services performed by the contractor takes place. The contractor is then compensated for these services in accordance with the tendered rate. For example the contractor is required to record each toll transaction. The end of month payment will be calculated by multiplying the actual number of toll transactions recorded, with the tendered rate as was provided at the tender stage. Provisional sums are paid in terms of invoices produced e.g. municipal accounts, postage costs, etc. The toll operator therefore does not receive the toll revenue, but is compensated for services provided in terms of tendered rates.

(c) The current e-toll operations contract comes to an end in December 2019 and has an option to be extended for a further 2 years. SANRAL will review its options and the performance of the current contractor before making a decision whether to extend the contract for such an extension or retender.

(d) R645 million.

Reply:

(a) The Draft National Minimum Norms and Standards for Resourcing an Inclusive Education System have been completed and will be presented to the Heads of Education Committee (HEDCOM) on 14-15 August 2017. HEDCOM recommended that the Draft document be presented to the Council of Education Ministers (CEM) in September 2017, for approval to be published for public comment as Guidelines. A cost analysis for the implementation of the norms in the 2018 Medium Term Expenditure Framework has also been completed and submitted to National Treasury for consideration of an increase in baseline funding.

(b) Provinces have always reported on specific expenditures relating to inclusive education on a quarterly basis and will continue to do so.

Reply:

1.  The Honourable Member is advised to source the information from the National Council of Provinces and/or directly from the Provincial Education Departments as this is a provincial competency.

Reply:

(a)

1. African lion (Panthera leo) is included on Appendix II to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). In 2016 at the 17th Conference of the Parties to CITES, the Parties adopted an annotation to this listing in relation to the growing international trade in lion bones:

“A zero annual export quota is established for specimens of bones, bone pieces, bone products, claws, skeletons, skulls and teeth removed from the wild and traded for commercial purposes. Annual export quotas for trade in bones, bone pieces, bone products, claws, skeletons, skulls and teeth for commercial purposes, derived from captive breeding operations in South Africa, will be established and communicated annually to the CITES Secretariat”.

2. The South African National Biodiversity Institute (SANBI), in its role as the scientific co-ordinator of South Africa’s CITES Scientific Authority was requested to advise the Department of Environmental Affairs (DEA) on the setting of this quota. The problem statement was formulated as the following question: “What is the current annual sustainable supply of lion bone from captive breeding operations?”

3. In setting the quota, the following issues were considered:

•  

  a) The need to avoid the creation of a monopoly in the supply of lion bones to Asia;

   b) the need to incentivise compliance with the quota and avoid stimulating illegal trade;

   c) the need to anticipate any unintended consequences;

  d) possible confounding effects of the United States of America’s (USA) January 2016 listing of Panthera leo as threatened on the Endangered Species Act;

   e) the fact that South Africa has a healthy wild lion population of approximately 3 500 individuals which is currently experiencing no major threats and persists alongside a large captive population of approximately 7 000 individuals in around 260 lion breeding/captive facilities in South Africa. Within this context, illegal use and/or trade in wild lion in South Africa is considered small to negligible based on available information;

  f) the existing trade in lion bone between South Africa and eastern and south-eastern Asia which emerged in 2008 and has since shown an increasing trend. The supply of Felidae bones and skeletons from the Southern African Development Community region is sourced mostly from captive produced lions from South Africa as a by-product of the lion trophy hunting industry; and 

   g) submissions from a public consultation process managed by the Department of Environmental Affairs in which various parties argued for a zero quota whereas representatives of captive lion facilities argued that far greater numbers could be sustainably harvested and this would reduce demand for bones from wild lion. Despite claims of positive or negative impacts associated with trade, there is considerable uncertainty about the outcomes of either approach or very little objective evidence to guide decision making. Outcomes of past prohibitions or forced limitations in the supply of wildlife products to Asian markets is the subject of considerable debate both nationally and internationally, as demonstrated in three case studies below:

   (i) The increased poaching of rhinos in South Africa and potential links to the domestic moratorium on the trade in rhino horn;

   (ii) the increased poaching of elephants in Africa which some commentators have ascribed to the one off sales of ivory permitted by CITES whereas others have ascribed to perceived future scarcity of ivory because of the 2007 CITES moratorium on ivory sales; and

   (iii) the switch to the utilisation of and trade in lion bones and bones of other felids subsequent to the 2007 CITES Decision to phase out tiger farms.

The uncertainty regarding the impact (on wild lion) of a trade ban for lion bone derived from captive bred animals partly informed the annotation adopted at the 17th Conference of the Parties (CoP17) to CITES. It should also be noted that the annotation formed part of a broader set of Decisions (17.241 – 17.245) that focused on lion conservation in general and the need to obtain additional information on legal and illegal trade and the effects of international trade on lion population trends.

4. In advising the Department of Environmental Affairs on the current annual sustainable supply of lion bone from captive breeding operations in South Africa, it was recognised that there is at present insufficient data to determine sustainable production of lions in all lion breeding facilities throughout South Africa. The export records for captive produced lion trophies were therefore interrogated on the assumption that lion breeding operations would have been managed wisely in order to ensure the sustainable production of adult trophy lions.

5. In 2016, SANBI collaborated with the United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC) to undertake an analysis of CITES trade in the SADC countries between 2005 and 2014. In relation to the export of Panthera leo trophies from SADC, the following was established and formed the basis for the recommended quota of 800 skeletons per year:

• On average 1 080 lion trophies were exported from SADC every year; and
• of these, 80% were direct exports from South Africa (864 individuals per year) and were comprised of predominantly captive produced lion trophies (less than 10 wild lion were hunted per year over this time period).

6. The recommended quota accords well with a study conducted by WildCRU (Oxford University, UK) and TRAFFIC (July 2015) which estimated that the skeleton resource base from trophy hunting was up to 833 skeletons per year over the period 2008 to 2010. Information provided by DEA indicated that 651 lion skeletons and 69 sets of bones were legally exported from South Africa between October 2015 and September 2016 which is consistent with the numbers estimated by UNEP-WCMC and the WildCRU/TRAFFIC report.

7. The rationale for setting the lion bone export quota was discussed at the 13th meeting of the South African Scientific Authority held in February 2017. Based on the issues outlined in section 3 (above) the Scientific Authority reasoned that the correct approach would be to establish a quota based on the best estimates of current supply and to immediately initiate studies to address some of the uncertainties so that future quotas can be informed by better evidence. As a result, the recommended quota of 800 skeletons was approved for submission to me and SANBI was requested to initiate the required studies as budget permitted (see under Part (b) below).

(b)

1. It should be noted that there are no wild tigers in South Africa and lion poaching in South Africa has been and is currently negligible. There has been some recent reports of captive lions being killed for traditional purposes (medicine or for bones in divination sets).

2. The South African National Biodiversity Institute (SANBI) has initiated a three-year collaborative project with the University of the Witwatersrand, Oxford University and the University of Kent entitled “Analysing and monitoring the lion bone trade in South Africa”.

The aims of the project are to:

a) increase our understanding of the captive lion breeding industry and the lion bone trade in South Africa;

b) investigate how the trade in captive produced lion bone under a quota system affects wild lion populations; and

c) strengthen the evidence base for the annual review of the quota in order to ensure it is sustainable and not detrimental to wild populations.

3. This project will form the basis of an adaptive management approach towards the lion bone export quota. Should poaching of wild lion occur as a direct result of the trade in captive produced lion skeletons, the quota will be adjusted accordingly.

4. A system involving random testing of DNA samples collected from lion skeletons at ports of exits has been devised to ensure skeletons originate from captive breeding operations and also to verify that no tiger skeletons are being exported.

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Reply:

During the late afternoon of 9 November 2016 flash flooding resulted in sections of the national road network in Gauteng being flooded. SANRAL initiated an investigation by a Specialist Engineering Company for the meteorological, hydrological and hydraulic assessment of the R24/N12, Linksfield and Gillooly’s interchanges to understand the underlying causes of the flooding. A final report was tabled on 12 September 2017 by the investigating Specialist.

The report reflects on the event of 9 November 2016 and explored reasons for the flooding which occurred at specifically three sites (see Figure 1):

• R24/N12 interchange
• Linksfield Road interchange
• Gillooly’s Interchange

Figure 1 – Three main problem areas investigated

It was established that an exceptional rainstorm of 1:200 intensity occurred on 9 November 2016.

From the conducted hydrological and hydraulic analyses the following can be concluded:

• Storm water drainage is a complex phenomenon as the magnitude changes with time and it is a dynamic process where it could be affected by specific conditions up- or downstream.

• The Linksfield interchange flooding can be attributed to the excessive high rainfall resulting in peak floods exceeding the hydraulic capacity of the drainage systems. A blockage at one of the culvert inlets further exacerbated the problem resulting in water overtopping the embankments and spilling onto the N3. The flow phenomenon was interesting and unexpected. In cases where debris however blocks a hydraulic structure flooding can occur.

The median barrier in the case of the N3 flooding probably prevented further loss of life as it prohibited water from crossing the N3 which would have washed vehicles into the Little Jukskei River. It further resulted in the N3 north bound being accessible during the event and providing an escape route.

• The R24/N12 culvert system is inadequate to handle the recommended design flood (1:80). The inlet configuration, changes in catchment area and proximity of the commercial developments all played a role in the problems experienced at this site.

• Various scenarios have been analysed to find a workable solution for conveyance of the floods downstream. The suggested solution would be to provide an additional four 3 X 1.8m culverts underneath the R24/N12 and create a retention/stilling pond upstream, linking the existing channel to the new culvert system. The existing structure underneath the N12 consists of two 1.2 x 3.1m culverts. The situation here is that if the capacity of the culverts under the N12 is increased the houses on the northern side of the N12 is flooded. A rough estimate of the cost of these works is R30 to R40 million.

• Increasing of the capacity of stormwater conduits and the inlets at the Gillooly’s interchange is required to drain water from the freeway. The existing pipe system is made of 600mm diameter pipes and it is proposed to supplement them with a 900mm pipe. This needs to be jacked and a rough estimate of the cost is R4 to R5 million.

The recommendations of this report need to be further detailed and the proposed improvements need to be further developed, including detailed designs before it can be implemented. These improvements should be able to handle a 1:80 year rainstorm.

Reply:

The NEXUS report is a provincial report of the investigation undertaken by the North West province before the formation of the Ministerial Task Team (MTT). It was presented to the Chairperson of the MTT for its investigation. The Minister will determine if this provincial report should be tabled in the National Assembly for referral to members of the Portfolio Committee on Basic Education.

Reply:

Country	2016-2017	YTD August	Sector
Angola		155 119 582
Angola Ministry of Finance	-	155 119 582	Transportation
Ghana	1 576 372 369	343 879 518
Cenpower Generation Company Limited	24 732 369	60 647 143	Energy
Karpower International	1 551 640 000		Energy
Ghana Airports Company Limited		283 232 374	Transportation
Kenya	220 562 054	45 381 516
Kenya Pipeline Company Limited	220 562 054	45 381 516	Commercial -  Transportation
Madagascar		99 725 954
Ravinala Airports, S.A.		99 725 954	Transportation
Zambia	1 803 965 113
Itezhi-Tezhi Power Corporation (ITPC) Lusaka	158 009 192	-	Energy
Maamba Collieries Limited	217 955 921		Energy
Zambia Electricity Supply Corporation Limited	1 428 000 000	-	Energy
Zimbabwe	49 061 705 *	-
*Infralink (Private) Limited	49 061 705	-	Roads And Drainage
Total Disbursement	3 649 961 241	644 106 570

* This disbursement was a short term loan in respect of the insurance premium paid on behalf of Infralink (Private) Limited with the view of ensuring that the insurance cover on the loan does not lapse.

Reply:

(a)

Provincial Education Departments (PEDs) only report on the number of schools which did not receive meals on quarterly basis. The records of schools affected are kept at district offices. A process is underway to collect this data.

i. 2014	ii. 2015	iii. 2016
117 schools (60 schools in EC and 57 in LP)	115 schools (85 in LP, 29 in EC and 1 in GP	400 schools (32 in GP,111 in LP,145 in EC, 112 in FS)

(b)

2017

109 schools in KZN and EC

(2) what are the relevant details in each case with regard to the (a) name of the school, (b) date(s) on which meals were not received, (c) number of learners affected, (d) reasons for non-delivery and (e) steps taken by her department to address the issue?

NW2468E

Response:

(2)(a) (b)(c) and (d)

The 2014 – 2017 records of schools, number of learners affected, the dates and reasons are kept at the Districts while the Provincial Education Departments (PEDs) submits a composite record of schools that did not receive NSNP meals in the quarterly reports. The Department is in the process of collating this data from the PEDs which is anticipated to be completed at the end of September 2017.

(2)(e)

Generally, the following steps are taken:

If there is continuous or persistent non-delivery, the Department of Basic Education deploys a Response Team to the province to monitor and help address challenges in the affected schools. On the occasion that non-feeding is reported by the media or member of the public, DBE will immediately consult the province to intervene and provide a report on how it was addressed. Further steps that were taken include:

 a) Identifying training needs if there are shortcomings in the management and control of NSNP funds;

 b) Meetings with Service Providers/Suppliers on quality and non-delivery of food items;

 c) Liaison with Department of Health in terms of alleged food contamination;

 d) Termination of a contract in cooperation with PED where there is gross sub-standard delivery.

All these cases were resolved within reasonable time frames.

Reply:

(a) (i)The Department of Basic Education is not in possession of such information. The Honorable member is advised to direct such question to provinces.

(ii) In light of the fact that the South African Council for Educators (SACE) does not have jurisdiction over learners in a school, and does not implement the code of conduct for learners; no cases of physical assault on educators by learners have ever been reported to the SACE over any of the periods mentioned.

.

Reply:

(a) (i)In csaes of teachers found guilty of sexual abuse follwing a disciplinary hearing, these teachers are automatically placed on the Child Protection Register by Provincial Departments of Education.

(ii)Any teacher found guilty of sexual abuse is dismissed from their post.

(b) (i)In the case of physical abuse of learners, the teacher is not automatically placed on the Child Protection Register. Only if the nature of the abuse is a criminal offence, will the teacher be placed on the Child Protection Register.

(ii) Physical abuse is a form of corporal punishment and is a dismissable offence.

Reply:

(a) The Department of Small Business Development (DSBD)

The DSBD has not funded any institution of Research and Development (i) domestically nor (ii) internationally and does not have a discretionary fund in place.

(aa)(aaa) Not applicable.

(aa)(bbb) Not applicable.

(aa)(bb) Not applicable.

(aa)(cc) Not applicable.

(b) The Small Enterprise Finance Agency (SEFA)

SEFA does not fund any institution of research and development (i) domestically nor (ii) internationally.

(aa)(aaa) SEFA, however, acknowledges the importance of research and has established research collaborations with some of the South African Universities. SEFA has established research collaboration with the University of South Africa (Unisa), North West University (NWU), University of Free State (UFS) and University of Stellenbosch.

(aa)(bbb) The scope of the research collaboration with the universities focuses on cooperative research between SEFA and the institutions on issues relating to access to finance for SMMEs and Co-operative Enterprises.

(aa)(bb) Not applicable.

(aa)(cc) Not applicable.

(b) Small Enterprise Development Agency (SEDA)

SEDA has not funded any Research and Development institutions.

(aa)(aaa) Nonetheless, SEDA has Service Agreements with Global Entrepreneurship Monitor (GEM) and Bureau Economic Research (BER).

(aa)(bbb)(i) SEDA partnered with GEM South Africa through University of Cape Town to participate in the research study that support SMMEs products and policy developments); and

(aa)(bbb)(ii) BER is the research partner housed at the University of Stellenbosch – assist with compiling Economy Sector update to tract the development in the SMME Sector).

(aa)(bb) Not applicable.

(aa)(cc) Not applicable.

Reply:

a) There is no public funding paid directly from National Revenue Fund to Political Parties, Independent public representatives in local government and independent election candidates from each sphere of government. Funds are administered by the IEC and allocated for represented political parties at national and provincial legislatures.

b) The total amount appropriated from 2014/15 to 2016/17 financial years, Represented Political Parties Fund (RPPF) amounts to R383 million administered by the IEC and Parliament appropriated amounts to R1.1 billion. Political party funding through Parliament comes as a transfer made by Parliament.

Year	RPPF	Parliament
2014/15	122 096 000	352 173 000
2015/16	127 394 147	371 033 000
2016/17	134 480 800	385 478 000
2017/18	141 204 000	414 438 000

In 2017/18 financial year only RPPF and Parliament appropriated amounts to R141.2 million and R414.4 million respectively.

c) The Constitution stipulates the funding for political parties to enhance multi-party democracy and the national legislation provide for the funding of political parties participating in national and provincial legislatures on an equitable and proportional basis. The Public Funding of Represented Political Parties Act 103 of 1997 provides a broad framework for the public funding of represented political parties at national and provincial legislatures. The allocations from the Represented Political Parties Fund (RPPF) are paid to each political parties calculated as follows:

i) Allocating 90% of the total amount of funding available from the Fund during a particular financial year paid proportionally. The proportional allocation is determined by dividing the amount (90% from the total funding available during a financial year) proportionally among the participating parties in any legislative body in accordance with the number of seats awarded to each participating party in the National Assembly and the Provincial Legislatures jointly.

ii) The remaining 10% of the amount of funding available from the Fund during a particular financial year is paid equitably meaning it is divided equally among the participating parties in the provincial legislatures.

The allocations from Parliament to political parties is provided by Parliament and regulated by Section 34 of the Financial Management of Parliament and Provincial Legislatures Act of 2009.

d) Funds allocated are transferred quarterly to RPPF and Parliament. Further details on when allocations are made should be obtained from the relevant transferring authority.

e) RPPF funds are allocated to political parties for any purposes compatible with its functioning as a political party in a modern democracy, whereas Parliament allocations are for political party support, constituency support and also for party leadership support. Again further details on what funds are used for can be obtained from the transferring authority and or the annual report of each receiving political party.

Reply:

1. Interim requirements have been developed and accepted by the acting CEO of the National Regulator for Compulsory Specifications in accordance with Section 22 (2) (c) of the Legal Metrology Act. The remainder of the question is therefore not applicable.

2. The system is currently undergoing type approval evaluation in accordance with the interim requirements.

Reply:

a) No, the Department has not awarded any tenders to (i) Sahara Computers, (ii) Sahara Systems, (iii) TNA Media (Pty) Ltd, (iv) Infinity Media Networks (Pty) Ltd, or (v) any subsidiary of any of these entities since 1 January 2002.

b) This information is only available at the Provincial Departments of Education and can be obtained through the NCOP or directly from provinces.

Reply:

a) The Department requires Provincial Education Departments to report on vacancies in their respective departments on a quarterly basis. The latest information available is for the quarter April to June 2017. As at the end of June 2017, there were 15 888 vacancies of educators at schools.

PROVINCE	PRINCIPAL	DEPUTY PRINCIPAL	HOD	TEACHER	TOTAL
Eastern Cape	496	294	1 241	151	2 182
Free State	124	154	499	0	777
Gauteng	100	376	1 181	0	1 657
KwaZulu-Natal	312	310	1 030	0	1 652
Limpopo	856	490	1 515	2 102	4 963
Mpumalanga	1 222	97	81	622	2 022
Northern Cape	70	56	208	274	608
North West	87	79	232	380	778
Western Cape	191	247	811	0	1 249
Total	3 458	2 103	6 798	3 529	15 888

Source: PED Report of vacancies as at June 2017

b) The table below shows the salary notch for each post level and the number of vacant posts.

POST LEVEL (PL)	PL1 (Teacher)	PL2(Head of Department)	PL3 (Deputy Principal)	PL4 (Principal) from (P1 to P5)
MINIMUM NOTCH	R 185 769	R 308 877	R 367 773	R 308 877 (P1) R 367 773 (P2) R 439 914 (P3) R 508 422 (P4) R 626 559 (P5)
NUMBER OF VACANCIES	3 529	6 798	2 103	3 458

Source: PED Report of vacancies as at June 2017

c) All the vacant posts indicated above are funded as part of the compensation of employees budget for the 2017/18 financial year.