Questions and Replies

Reply:

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

The DSBD was established in 2014. All the investigations relate to programmes that were transferred from the Department of Trade and Industry (the dti) to the DSBD. All the investigations were conducted to completion by the Forensic Audit Unit of the dti. When these functions were transferred to the DSBD, the Department took over the responsibility for the implementation of recommendations. Only one investigation was conducted and concluded during 2016. The details are included below:

REFERENCE NUMBER (NAME)	SUBJECT MATTER	DATE OF CONCLUSION
NACH 162	Investigation into alleged corruption in the Black Business Supplier Development Programme.	May 2014
DFC 191	Alleged fraud and corruption relating to the Black Business Supplier Development Programme.	June 2014
DFC 200	Alleged fraud and corruption relating to the Black Business Supplier Development Programme.	September 2014
DFC 208	Fraud and corruption relating to the Co-operative Incentive Scheme.	May 2015
DFC 209	Alleged corruption in the Black Business Supplier Development Programme.	December 2014
DFC 216	Alleged irregularities on CIS funding.	May 2015
DFC 224	Alleged bribery at Co-operative Incentive Scheme involving the application for funding.	October 2015
DFC 227	Alleged corruption at CIS involving funding for a secondary cooperative	October 2015
DFC 300	Investigation into possible corruption involving BBSDP applications.	November 2016

(a)(ii) Entities – Internal forensic reports

Small Enterprise Development Agency (SEDA)

REFERENCE NUMBER (NAME)	SUBJECT MATTER	DATE OF CONCLUSION
01/01/15/1	Procurement Maladminstraton	Internal Audit completed the investigation (2015)
01/03/15/2	Fraud	Internal Audit completed the investigation (2015)
01/04/15/3	Procurement Maladminstraton	Internal Audit completed the investigation (2015)
02/04/15/4	Procurement Maladminstraton	08 December 2015
01/05/15/5	Abuse of Privilege Information	01 August 2016
02/05/15/6	Theft	18 February 2016
01/06/15/7	Forgery	Internal Audit completed the investigation (2015)
05/06/15/08	Abuse of Power	19 October 2015
02/06/15/9	Procurement Maladministration	01 March 2016
03/06/15/10	Unethical Behaviour	Internal Audit completed the investigation (2015)
01/07/15/11	Identity Fraud	08 September 2015
02/07/15/12	Procurement Maladministration	Closed due insufficient information (2015)
03/07/15/13	Procurement Maladministration	14 October 2015
01/07/15/14	Misuse of the Seda's resources	12 February 2016
01/07/15/15	Victimisation	19 August 2016
27/07/15/16	Theft	31 October 2015
21/07/15/17	Recruitment Irregularity	22 October 2015
01/08/15/18	Recruitment Irregularity	08 September 2015
04/08/15/19	Theft	08 September 2015
24/08/15/20	Abuse of Power	24 November 2015
03/09/15/21	Dishonesty	07 September 2015
06/10/15/22	Unethical Behaviour	11 December 2015
14/12/15/23	Nepotism, Favouritism & Victimisation	04 July 2016
14/12/15/24	Abuse of Power	17 May 2016
01/09/15/01	Procurement Maladministration	14 October 2016
01/07/16/02	Procurement Maladministration	15 November 2016
29/07/16/05	Recruitment and Procurement Irregularities	18 November 2016
05/08/16/06 NACH Ref: 9920160613034529	Procurement Irregularities	01 October 2016
22/08/16/07	Procurement Maladministration	02 November 2016

Small Enterprise Finance Agency (SEFA)

There were no forensic reports during the period 1 January 2009 – 31 March 2012, sefa was formed on 1 April 2012.

REFERENCE NAME (aa)	SUBJECT MATTER (bb)	DATE OF CONCLUSION (cc)
Gal Logistics	Client submitted a fraudulent Coca Cola contract in his loan application.	June 2013
Aloga Financial Services	Aloga is a financial intermediary of sefa. A client to Aloga submitted a fraudulent Purchase Order in an application for loan funding.	March 2015
Ethandwa Kan Ndlovu	A fraudulent letter was sent from sefa office to a Franchisor, stating that the loan application for the client had been approved, whereas that was not the case.	September 2014
Fraudulent Use of sefa Name	An independent consultant claimed to be working for sefa and solicited fees from potential clients claiming to have secured them loan funding from sefa.	March 2015
Yats Gopaul	A consultant claiming to be working for sefa solicited a fee from a potential client to assist him in obtaining a R5million loan.	September 2015
Public Works Purchase Order	Client submitted a fraudulent Purchase Order in loan application.	January 2016
Rand Water Purchase Order	Client submitted a fraudulent Purchase Order in loan application.	January 2016
Lesikho Human Capital	Client submitted a fraudulent BMW contract in loan application. Two sefa employees were implicated in the scheme and dismissed for gross negligence.	March 2016
Khaba Ya Sembo Trading & Projects (Pty)Ltd	Client submitted a fraudulent Transnet contract in loan application. Two sefa employees were implicated in the scheme and dismissed.	March 2016
Tasotone (Pty)Ltd	Client submitted a fraudulent BAUBA Platinum Mines contract in loan application. sefa employee was implicated in the fraud and dismissed.	July 2016
Brainwave Projects	Client submitted a fraudulent Purchase Order from Department of Energy in loan application.	October 2016
CHW&CNB Logistics	Client submitted a fraudulent Transportation and Delivery Agreement with Premier Fishing in loan application.	October 2016
FRENKSI (Pty)Ltd	Client submitted a fraudulent Purchase Order from Department of Trade and Industry in loan application.	October 2016
Matuesz Marketing Services and Products Supplier	Client submitted a fraudulent Purchase Order from Department of Agriculture, Forestry and Fisheries in loan application.	October 2016
Sharosca Construction & Projects	Client submitted a fraudulent Purchase Order from the Department of Trade and Industry and Fisheries in loan application.	October 2016
Triponza Trading 385 CC	Client submitted a fraudulent Purchase Order from the Department of Health in loan application.	October 2016
Lwenzhe Investment Holdings (Pty) Ltd	Client submitted a fraudulent Anglo American contract in loan application. A fraudulent Cession Agreement was also submitted to sefa.	October 2016

(b)(i) DSBD - There are no external forensic reports for the period

(b)(ii) Entities – External forensic reports

SEDA

Investigations conducted by Service Providers for Seda (Further Investigation requested by management)
05/06/15/08	Irregularities facing the Northern Cape	01 July 2016
03/09/15/21	Recruitment Irregularities	05 July 2016

For the below cases, they were commissioned on behalf of the incubators and performed by the external service providers. SEDA does not have the reference numbers but they are following up on the status of the recommendations emanating from the investigation findings.

Investigations conducted by Service Providers by STP on Incubators
Not applicable	Zenzele (Governance Issues)	January 2015
Not applicable	SoftstartBTI (Governance Issues)	February 2015
Not applicable	SARABI (Governance and Performance Issues)	2015

SEFA: There are no external forensic reports for the period

Reply:

(i) The Department does not have records on information relating to Trusts. Such information can be obtained from the Master of High Court.

(ii) The Department has registered 1513 CPAs to date.

(aa),(bb),(b) Please refer to Annexure A for details of CPAs per province.

Reply:

Refer to Annexure A for the age analysis of the Water User Association and Irrigation Board in each province that owe my Department money.

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Reply:

ITAC intends to finalise its investigation and findings during August 2017. Once the Commission has made its final determination, it will make a recommendation to the Minister of Trade and Industry, who is responsible for the process of negotiation with the EU in terms of the bilateral trade agreement in place. The Department of Trade and Industry will publicise the Minister’s final decision, after completion of the negotiation process that the Minister of a Trade and Industry oversees.

 

-END-

Reply:

The EDD, Competition Tribunal, ITAC and Competition Commission did not appoint any transaction advisors for any tenders in the period 01 January 2012 to 31 December 2016.

The IDC engages the services of transaction advisors in the execution of some of its strategic business related activities.

For the period 01 January 2012 to 31 December 2016, the following transaction advisors were appointed by the IDC:

No.	(i) Name of Transaction Advisor	(ii) Tender description	(iii) Tender pricing	(iv) Amount paid to date
1	Nedbank Capital and Basis Points Capital (Pty) Ltd Joint Venture	Financial Valuation of TargetCo	R 750,000	R 750,000
2	PriceWaterhouseCoopers Incorporated	Transaction Advisory Services for the Masorini Steel Project	R 3,506,800	R 3,049,919
3	PSG Capital (Pty) Ltd	Transaction Advisor for the UCW Transaction	R 2,351,114	R 2,351,114
4	Sasfin Bank Ltd	Independent financial valuation of United Carriage Wagons	R 200,000	R 200,000
5	Ernst & Young Advisory Services (Pty)	Transaction advisor on the Corporatisation of Scaw	R 17,256,155	R 13,520,721
6	Rothschild (South Africa) (Pty) Ltd and Identity Capital Partners (Pty) Ltd Joint Venture	Transaction advisory services to the IDC to identify strategic equity partners to its subsidiary, Scaw	R 17,500,000	R 7,579,905

-END-

Reply:

The following table reflects the details in this regard, as sourced from the Provincial Departments of Health

Table 1

PROVINCE	NUMBER OF TERMINATIONS OF PREGNANCIES PERFORMED FOR YEAR
	2014	2015	2016
Eastern Cape	12 830	12 846	14 479
Free State	5 896	6 022	5 767
Gauteng	18 814	16 272	22 942
KwaZulu Natal	9 785	11 359	14 395
Limpopo	8 515	9 244	10 625
Mpumalanga	2 501	1 851	2 744
North West	8 274	7 131	5 951
Northern Cape	1 725	1 505	1 366
Western Cape	18 346	19 603	19 212

END.

Reply:

1. (a) All four of the Public Entities that report to the Department of Public Works (DPW) have Boards in place. These Public Entities are:

• Construction Industry Development Board (CIDB)
• Independent Development Trust (IDT)
• Council for the Built Environment (CBE)
• Agrément South Africa (ASA)

(a)(i) Board Members of DPW Public Entities	(aa) Appointment Date	(bb) Term Expiry Date
Construction Industry Development Board
Mr L Nevhutalu (Chairperson)	13 April 2016	31 October 2017
Ms LT Myataza	01 August 2014	31 October 2017
Mr CS Jiyane	01 August 2014	31 October 2017
Ms NS Pandor	01 August 2014	31 October 2017
Mr G Muduray	01 August 2014	31 October 2017
Mr SA Mosai	01 August 2014	31 October 2017
Mr LL Makibinyane	01 August 2014	31 October 2017
Ms NC Skeepers	01 August 2014	31 October 2017
Mr SM Makhura	01 August 2014	31 October 2017
Ms VV Sidzumo	01 August 2014	31 October 2017
Ms M Fatyela-Lindie	01 August 2014	31 October 2017
Mr HL Patel	01 August 2014	31 October 2017
Mr N Maas	01 August 2014	31 October 2017
Independent Development Trust
Prof Fikeni Somadoda - Chairperson	04 November 2016	03 November 2020
Mr Biniza Siyaduma	04 November 2016	03 November 2020
Mr Adams Theo Charl *	04 November 2016	03 November 2020
Ms Nkomo Phelisa	04 November 2016	03 November 2020
Ms Makhado Andani Amandaline	04 November 2016	03 November 2020
Ms Matloa Octavia Matshidiso	04 November 2016	03 November 2020
Mr Motswaledi Tlhotse Enoch	04 November 2016	03 November 2020
Mr Patel Rashid Amod Sadeck	04 November 2016	03 November 2020
Ms Rakolote Nomvula	04 November 2016	03 November 2020
Dr Zitha Lulama	04 November 2016	03 November 2020
Mr. Zitha Zakhele Alex Tummy	04 November 2016	03 November 2020
Dr Zulu-Kabanyane Gcwalisile Cynthia	04 November 2016	03 November 2020
*’ NB: Mr TC Adams has resigned and the vacancy is in the process of being filled.
Council for the Built Environment
Mr Isaac Mzumara Nkosi - Chairperson	01 August 2014	31 July 2018
Mr Zukile Christopher Mvalo	01 August 2014	31 July 2018
Ms Martina Mapula Tshangela	01 August 2014	31 July 2018
Mr Itumeleng Sizwe Kgomo	01 August 2014	31 July 2018
Ms Christina Alida Breed	01 August 2014	31 July 2018
Ms Ancunel Anna-Lucia Steyn*	01 August 2014	31 July 2018
Prof Kathleen Anne Michell	01 August 2014	31 July 2018
Mr Thembinkosi Matunda	01 August 2014	31 July 2018
Ms Ezodidi Gugu Makongwana	01 August 2014	31 July 2018
Mr Jerry Leigh Margolius	01 August 2014	31 July 2018
Ms Anna-Marié Sassenberg	01 August 2014	31 July 2018
Dr Titus Mathe	01 August 2014	31 July 2018
Mr Nicolas Daniel Lombard	01 August 2014	31 July 2018
Mr Sithiwe Thubane	01 August 2014	31 July 2018
Mr Douglas Michelle	01 August 2014	31 July 2018
Mr Reginald Gaofitlhe Sefotlho	01 August 2014	31 July 2018
Ms Niniza Fortunate Sithole	01 August 2014	31 July 2018
Adv Nalini Maharaj*	01 August 2014	31 July 2018
Adv Derick Jeffrey Block*	01 August 2014	31 July 2018
Mr Clive Mtshisa	01 August 2014	31 July 2018
*’ NB: The following Board members have resigned and the vacancies are in the process of being filled: Ms Ancunel Anna-Lucia Steyn Adv Nalini Maharaj Adv Derick Jeffrey Block
Agrément South Africa
Mr Pepi Silinga (chairperson)	06 September 2010	Extended until new Board appointed
Dr Mahachi Jeffrey	06 September 2010
Mr Fredericks DC	06 September 2010
Mr Makamo Mandla Frank	06 September 2010
Mr Ittmann Hans W	06 September 2010
Ms Ranape Adelaide Ditsietsi	06 September 2010
Ms Ngcobo Ntebo	06 September 2010
Ms Marnaweck Mariana	06 September 2010
(a)(ii) DPW Public Entities	(aa) Total Number of Board Members	(bb) Number of Female Board Members
Construction Industry Development Board	13	5
Independent Development Trust	12	6
Council for the Built Environment	20	8
Agrément South Africa	8	3

(1) (b) Falls away.

(2) (a) and (b) Fall away.

Reply:

There is a difference between illegal dumping sites and illegal/unlicensed landfill sites. Illegal dumping sites refer to sites in different provinces where illegal dumping  of waste is taking place whilst illegal dumps or landfill sites refer to sites that are used for waste disposal  without a permit or license issued by the Competent Authority (which is DEA for Hazardous waste and  Provinces for general waste). It is important to note that this Department has formalised a number of illegal dump sites into licensed landfill sites. Currently, the existing illegal dump sites which has to be formalised through the licensing process are as follows:

KwaZulu-Natal               4 illegal dump sites

Free State                     4 dump sites

Northern Cape               2 illegal dump sites

Eastern Cape                2 illegal dump sites

Reply:

(a) The Provincial Departments of Health plan and provide training to nurses to provide termination of pregnancy services;

(b) The Provincial Departments of Health plan and provide training to midwives to provide termination of pregnancy services;

(c) The Provincial Departments of Health plan and provide training to doctors to provide termination of pregnancy services

END.

Reply:

The Department of Health does not keep unsafe abortion statistics as most often patients who present at the health care facilities do not disclose that information to the healthcare workers. Also, unsafe abortions are not happening within the health care facilities.

END.

Reply:

I have been advised by the Department and entities reporting to me as follows:-

The Public Service Regulations, 2016 (Gazette no. 40167) which prohibits public service employees from doing business with the state were gazetted on 29 July 2016. These regulations are applicable to public service employees and not employees of state-owned entities.

a) No staff in the Department of Telecommunications and Postal Services did business with the state.

b) The regulation is not applicable. However it is in the individual policies of the entities to regulate disclosure of conflict of interest and requirements for relevant authorisation.

APPROVED / NOT APPROVED

Dr SC Cwele, MP

Minister of Telecommunications and Postal Services

Date:

Reply:

(a) The Department of Health does not collect disaggregated data by trimester.

(b) After 20 weeks of gestation, if a medical practitioner, after consultation with another medical practitioner or registered midwife, is of the opinion that continued pregnancy would endanger the woman's life or if the pregnancy would result in severe malformation of the foetus, the pregnancy can be terminated.

END.

Reply:

(1) The upgrading of the existing Edendale Accident & Emergency (A &E) is being done in phases in order to avoid the disruption of services:

• Phase 1: Resuscitation Area, SOPD & MOPD have been successfully commissioned and are fully operational.
• Phase 2: Construction is still underway for the rest of the OPD Area & Radiology Section, and it is projected for completion in this current 2017/18 Financial Year.

NB: It must be noted that no deaths of patients have o0ccured as a result of this on-going upgrading of the A&E, and in the event where the need arises, the Department continues make the necessary arrangements where patients are referred to other convenient and alternative facilities of care.

(2) (a) (i) The Department has put measures in place such as the utilisation of both the Provicnial and National Period Contracts/ Tender in order to fast –track the procurement of the outstanding medical equipment.

It is to be noted that the CT Scanner at Edendale is fully functional.

(ii) The commissioning of the A& E is projected for completion within the current 2017/18 Financial Year as per response 1 above.

(b) Steps by the Department -

• The Procurement of the Essential Equipment has been accommodated in the current 2017/18 Financial Year and a monitoring system has been put in place where progress is reported on a weekly basis.

• The Department has a Procurement Plan, Procurement Schedule and an Oversight Committee that oversees the procurement process.

• The Committee meets every month to track the progress of the Procurement Process.

• The Department of is in the process of engaging Service Providers for Service Level Agreements on Periodic Contracts to expedite maintenance/repairs to medical equipment.

END.

Reply:

(a) (i) The Minister does use security services for himself at the State owned house in Pretoria and in Cape Town, and when in transit that is paid for by the State

(ii) The Minister’s immediate family members use security services at the State owned house in Pretoria and in Cape Town that is paid for by the State.

(iii) None of the Minister’s staff members use security services that is paid for by the State

(b) (i) The Deputy Minister use security services for himself at the State owned house, and when in transit that is paid for by the State.

(ii) The Deputy Minister’s immediate family members use security services at the State owned house in Pretoria that is paid for by the State.

(iii) None of the Deputy Minister’s staff members use security services that is paid for by the State

(a)(b) (i) (ii) (aa) They are provided for by the South African Police Services in terms of SAPS policy.

(a) (b) (i) (ii) (bb) South African Police Services budget.

(a) (b) (i) (ii) (cc) The details can be obtained from SAPS

(c) None of the heads of entities reporting to the Department of Public Works made use of security services paid for by the State

(i) (aa), (bb), (cc): Not applicable

(ii) (aa), (bb), (cc): Not applicable

(iii) (aa), (bb), (cc): Not applicable

Reply:

Mifepristone is currently available to the provinces as a buyout product. The medicine will be available on tender after the currently published tender is awarded.

END.

Reply:

(a) & (b) Security Services for the Minister and Deputy Minister is provided by SAPS VIP Protection. These services comply with the provisions in the Ministerial Handbook.

(c) The Industrial Development Corporation (IDC); the Competition Tribunal and the International Trade and Administration Commission (ITAC) do not make use of any security services paid by the state for heads of the entities, their immediate family members or any staff members.

Three staff members of the Competition Commission are being provided with security services paid for by the Competition Commission.

As part of its risk Management processes, the Commission approached law enforcement agencies to conduct a risk assessment in a number of areas including the three Executive Managers. The Commission is still awaiting responses from the agencies that were approached.

In June 2017, the Commission decided to place the three Executives under private security protection as an interim precautionary measure whilst waiting for response from the law enforcement agencies, and also as a response to various incidents which included armed robbery resulting in the loss of Competition Commission devices and other important valuable, incidents of threats and stalking directed at one staff member.

 

-END-

Reply:

(a)

Launch site licencing, monitoring and compliance

The Department of Environmental Affairs (DEA) had on 27 June 2014 promulgated regulations under section 83 of the National environmental Management: Integrated Coastal Management Act, 2008
(Act No. 24 of 2008) for the management of the Public Launch Sites (PLS) in the Coastal Zone. These regulations empower the Members of the Executive Committees (MECs) to list public launch sites where a vessel may be launched and identify management bodies to manage such public launch sites.

(b)

Encroachments into the Admiralty Reserves

The Department of Public Works is responsible for the management of leases for any infrastructure or development within admiralty reserves. Any structure or infrastructure built within or encroaching onto the admiralty reserve without a lease or approval by the Department of Public Works is deemed illegal and therefore the necessary compliance and enforcement mechanism will come into effect. The Department of Environmental Affairs and the Department of Public Works have, through bilateral engagements and cooperative governance, established channels of communication whereby the Department of Public Works keeps the Department of Environmental Affairs informed of emerging issues relating to encroachment, through its representatives at Working Group 8 and the Geospatial Planning Sub-Committee.

(c)

Beach driving

The regulations on Control of Use of Vehicles in the coastal area list officials that are authorised to enforce these regulations as: all Environmental Management Inspectors, Fishery Control Officers, South African Police Services Officers and any official appointed/designated as a Peace Officer. This therefore allows all officials from municipalities, provinces and national departments based on their appointment status to enforce Off-Road Vehicle (ORV) regulations. Whilst this department issues permits for driving in coastal areas to those who qualify as per regulation 3 (permissible use), signboards prohibiting illegal beach driving were procured and distributed to all four coastal provinces for erection. To ensure compliance to these regulations and permit conditions as per issued permits, joint compliance and enforcement operations under Operation Phakisa focussing on illegal beach driving are planned and executed.

(d)

International Coastal Clean-up

The Integrated Coastal Management Act (ICMA), 2008 (Act No. 24 of 2008) does not require monitoring and enforcement of the international coastal clean-up. This is a voluntary event celebrated annually throughout the world in September. South Africa (government, private businesses, civil society and the non-governmental organisations celebrate this day by engaging in raising awareness of our coastal environment and embarking on clean-up operations. The Department of Environmental Affairs has been celebrating this event for 15 years and has, most recently, hosted and participated in several successful clean-up events that involved school learners and communities in Knysna, Port Elizabeth, Saldanha Bay, East London, Durban and Port St Johns.

(e)

Coastal resource monitoring

Through Operation Phakisa, the Department of Environmental Affairs is currently addressing the challenge of unknown water quality due to different analytical methods employed by the establishment of a National Water Quality Lab in the Eastern Cape, which will act as a reference lab to produce reliable data and information. Mobile laboratories are also to be established as these are important for remote areas as microbial samples require very short time-frames for analysis. This also provides opportunities for coastal municipalities and other government departments to send samples for analysis.

Furthermore, the department is also in the process of developing the National State of the Coast report and is currently in discussion with coastal provinces for the development of provincial and national indicators that will contribute to the national report.

---ooOoo---

Reply:

Yes, a signed inventory for each hospital will be provided but this will take us a long time to compile. The Honourable Member will then have to be patient.

END.

Reply:

a) 2 033 199 hectares.

b) 1 979 966 hectares.

c) 1 160 065 hectares.

(d),(e) 698 226 hectares. It is assumed that the honourable member is referring to the Settlement Land Acquisition Grant (SLAG).

Reply:

Studies have been done in areas of known or suspected high alcohol consumption by women. Studies in South Africa have found the following rates in these areas:

• Northern Cape

• • Upington 75/ per 1000 population
  • Kimberley 64/ per 1000 population
  • De Aar 119/ per 1000 population

• Western Cape

• • Saldanha Bay 67/ per 1000 population
  • Witzenberg sub-district 96/ per 1000 population
  • Aurora 100/ per 1000 population
  • Wellington 89/ per 1000 population.

• Gauteng

• • Parts of Johannesburg 26/ per 1000 population

END.

Reply:

The National Department of Health has not participated in any such programme. The Integrated Community Registration Programme (ICROP) is relevant to the Department of Social Development.

END.

Reply:

The municipal debt of March 2015 as published by National Treasury in terms of Section 71 of the Municipal Finance Management Act (MFMA) was calculated to be at a value of R 96 billion. Of this debt, National and Provincial departments owed R 5.2 billion and the difference was owed by commercial and households groups.

Following the publishing of this debt and its impact on service delivery, Government embarked on a process to verify with a view to settle it. In this regard, the National Inter-Governmental Task Team (NIGTT) was established to oversee the project. The project was spearheaded by the Department of Public Works and includes various departments such as: the Department of Performance and Monitoring in the Presidency, the Department of Cooperative Governance, National and Provincial Departments of Public Works, National Treasury, the Department of Rural Development and Land Reform and the South African Local Government Association.

The main objective of the project was to verify arrear debt (which was based on a 7 year period) for property rates and municipal service charges pertaining to immovable assets owned/vested, leased and used by National and Provincial Government Departments and make recommendation for payment.

The table below indicates the reported R 5.2 billion as per the Section 71 report and the subsequent payments made since the pushing of the Section 71 report.

 

PROVINCE	SECTION 71	VERIFIED	SIGNED-OFF	PAYMENTS POST 31 MARCH 2015
Eastern Cape	R 439,020,000	R 255,132,647	R 232,356,083	R 81,748,672
Free State	R 806,719,000	R 509,967,685	R 516,299,163	R 283,045,017
Gauteng	R 1,207,654,000	R 982,028,535	R 983,633,032	R 506,614,846
Kwazulu-Natal	R 795,855,000	R 391,792,787	R 333,095,484	R 56,343,807
Limpopo	R 254,920,000	R 353,550,025	R 252,843,667	R 288,208,696
Mpumalanga	R 647,918,000	R 539,042,992	R 534,939,846	R 98,251,890
North West	R 570,062,000	R 438,309,396	R 369,746,117	R 290,830,397
Northern Cape	R 400,360,000	R 428,801,716	R 431,706,006	R 29,362,844
Western Cape	R 118,564,000	R 101,811,335	R 101,700,081	R 48,238,106
Total	R 5,241,072,000	R 4,000,437,118	R 3,756,319,478	R 1,682,644,276

The analysis and verification process uncovered the fact that the amount published in terms of Section 71 report was overstated by about R1.2 billion as the actual verified amount was R4 billion. After the verification process, the Municipal Managers and the CFOs from 256 municipalities signed-off the verification report depicting the verified debt. The rest of municipalities were not fully cooperative in the process.

After engagements with debtor departments to settle the verified and signed-off municipal debt, there were concerns that the debt was not accurate according to their records. Departments decried the debt picture painted by municipalities and requested that a settlement process be undertaken for them to confirm the verified debt. This was as a result of a number of issues they raised which ranged from, amongst the others: the uncorroborated opening balances, misallocated payments, incorrect billings, unfair interest charges, incorrect property ownership records, etc.

Based on the concerns, a settlement process was undertaken and departments were given an opportunity to either confirm or dispute the debt with clear reasons and detailed records of the debt (i.e. account numbers and property details). By the end of the project, most departments were still struggling to sign-off reports in terms of their confirmation or disputing of the debt.

The table below further highlights challenges experienced by both municipalities and government departments:

From Municipalities Side

From Departments Side

Municipalities failing to invoice departments timeously Invoices sent to incorrect addresses (and attracting interest) Failure to allocate receipts – (recorded in suspense accounts) Overcharges by municipalities (charging more than approved tariffs) or not in line with the category of a property Municipalities billing departments on properties that should be exempted in terms of the Municipal Property Rates Act (MPRA) such as Churches, SANParks, etc) Consolidated bills which made it difficult for custodian departments and user departments to pay separately Duplicated Rates (i.e. levying two customers using one account)  Reporting incorrect debt on Section 71 of the MFMA Incorrect billing (i.e. bills sent to departments on municipal or non-state land) Declaring debt on inactive accounts Capacity constraints

Non-updated Consolidated and subdivided properties Non-payment for debt on unregistered/non-vested properties Slow or non-completion of property transfers, vesting, surveying.   Lack of policies on the treatment of debt relating to State Domestic Forums (SDFs). Misalignment of Chief Surveyor General, Deeds, Departments’ and Municipal property registers leading to unpaid accumulating debt Failure by departments/regions to submit proof of payments to municipalities to properly allocate receipts Budget constraints (leading to unpaid confirmed debt) Lack of participation by the departments during general valuation and objection period leading to unreasonable tariffs approved by municipal councils Failure to sign-off reports Capacity constraints

Unfortunately, whilst the departments are still struggling to confirm the debt owed, municipalities on the other hand continue with the practice of reporting incorrect debt to National Treasury. Currently, the debt owed to municipalities has increased to R6.5 billion and engagements are being made with various stakeholders and forums to ensure that the root causes of the spiralling debt are addressed.

The following have been agreed as root causes:

• Historical legacy (Pre and Post 1994 property ownership dispensations)
• State Properties on the Deeds Records (RSA properties)
• Vesting and Transfer process
• Facilities on non-state land (SDF’s)
• Un-surveyed properties
• Immovable Asset Registers challenges
• Agreements (MoA/Us and Lease) or lack thereof for the occupation of properties and payment of municipal charges
• Non-payment of State properties (due to unclear vesting)
• Incorrect application of tariff charges
• Incorrect reporting
• Misallocations
• Budget Constraints
• Resource capacity challenges (Insufficient skilled staff, systems, and policies)

The following are proposed as Key Practical Solutions:

• Naming conventions – Enhancing name records of State Properties to reflect Custodian names
• Fast tracking the vesting process by forming more committees and updating delegations (Formalizing Substance Over Form)
• Fast tracking the transfer process
• Signing agreements with owners of land and agreeing on clear terms and municipal charges responsibilities

• Quantifying surveying costs, requesting/reprioritizing funding and appointing surveyors
• Enhancement of Immovable Asset Registers by ensuring alignment with Deeds, MVRs and CSG.
• Applying fair values on SDFs and paying rates based thereon
• Issuing a clear policy on payment for deemed State properties
• Close oversight of municipalities by DCoG and SALGA on the compliance with MPRA
• Issuing an instruction to all municipalities who signed the verified reports to adjust their debt reports accordingly
• Issues an instruction for municipalities to clear their Suspense Accounts and properly allocate receipts from departments
• Once the Immovable Asset Register is enhanced/completed, request budget allocation on rates and municipal charges proportional to the assets owned
• Fill critical vacancies that deal with municipal payments, municipal revenue departments, and property registers
• Develop clear policies and introduce effective billing systems

Since the project has come to an end, monthly progress reports are being requested from departments on how they are addressing the root causes and settlement of arrear debt. The NIGTT and the Steering Committee continues to have meetings to record progress being made.

With specific reference to the Public Works portfolio, the Department is the custodian of, and manages an extensive property portfolio that comprises 29 070 registered and unregistered land parcels (on 5,4 million hectares of land) on which 93 928 buildings (measuring 36,8 million square meters in extent) are located across 52 client departments countrywide. Given the enormity of the portfolio, it is a complex task to determine what is rateable and non-rateable. For example: The Pollsmoor prison has different types of land (agricultural, residential, commercial), however the municipality provides its billing using one rate - the commercial rate. This happens to be the highest rate, therefore charging the Department a lot of money in the process.

The interventions by the Department to remedy the historical problems that exists includes the Due Diligence Quality Review of Departments Immovable Assets Register. The scope of work addresses identification, verification, validation and ownership of all land parcels that are and should form part of Departments Immovable Asset Register. The current scope of work extends to linking accounts in Departments Property Management Information System (PMIS) to the verified Immovable Asset Register. The linking process entails the collection of all municipal rates invoices (from 234 municipalities) associated with the National Department of Public Works. To date, invoices from 55% of the municipalities have been collected and are being analysed. The analysis entails linking the rates invoices collected from the municipality to the existing Immovable Asset Register masterfile. Once the linking reconciliation has been verified and completed the Department will be in the position to investigate and determine its complete municipal rates liability or contingent liability. This will also enable Department to conduct an in depth analysis of tariffs, valuations and land use applied in the municipal bills.

Reply:

During the recent Economic Development Budget Vote, I set out the key steps that will be taken by the Department and agencies reporting to it, to address the economic challenges and to contribute to government’s overall response to the recession. These include specific steps on industrial funding, infrastructure investment, competition policy and social partnership spelt out in the Budget Vote speech, a copy of which is available at www.economic.gov.za. Additional announcements on key projects will be made as and when they are confirmed and implemented.

I wish to emphasise the importance of boosting confidence within communities and among investors, which require among others that issues of governance and integrity within state-owned companies and public institutions be fully and expeditiously addressed.

-END-

Reply:

1. (a) The Environmental Management Inspectorate did not allocate any budget for the illegal land invasion in the green belt of the Magaliesberg in Tshwane for the (i) 2014-15, (ii) 2015-16, (ii) 2016-17 and (iv) 2017-18 financial years. The Environmental Management Inspectorate (EMIs) did not budget for the financial years stated above because they are not mandated to deal with any illegal land invasions. The mandate to deal with illegal land invasion in the green belt is vested in Tshwane Metropolitan Municipality.

(b) Given that no budget was allocated by the National Department of Environmental Affairs (DEA) for the illegal land invasion in the green belt of the Magaliesberg in Tshwane, no amount was spent in this regard.

2. (a) The current vacancy rate in the EMI-Green Scorpions unit in Gauteng is 12.68%.

(b) The total number of vacant positions in the unit is 9.

3. The national Department’s inspection unit at OR Tambo International Airport is still operational.

(a) 2015-16: In terms of a sentence handed down by the court as a consequence of a criminal investigation by DEA EMIs, a monetary penalty of R20 000.00 was paid by the accused. This amount was, on application by the prosecutor upon conviction, specifically paid into the account of the Department in the 2015-16 financial year. Environmental Management Inspectors do not, currently, issue fines themselves, but all non-compliances with biodiversity legislation detected at OR Tambo are investigated, and administrative or criminal action is taken against the transgressor, which may then lead to either a fine or another criminal sanction.

(b) 2016-17: No revenue was received from fines during this financial year.

---ooOoo---

Reply:

During the Economic Development Budget Vote, I noted the following:

“To address obstacles to investment projects, the Department will target 22 investment and infrastructure projects it will help to unblock.”

The target was derived from the Department’s Annual Performance Plan tabled in parliament earlier this year.

The actions consist of identifying investment and infrastructure projects that are not proceeding to schedule due to reasons that can be addressed by the Department. These may include, for example, lack of regulatory approvals by a municipality or national agency, access to energy and delays in approvals of incentives or funding.

Most of these kind of challenges are brought to the attention of the Department and its agencies by users or project initiators and thus no prior list exists at the start of the financial year.

Progress with this target for the current financial year will be reported on a quarterly basis to the Portfolio Committee on Economic Development.

Details of actions taken in the past year will be included in the Department’s Annual Report due to be tabled in parliament in due course.

 

-END-

Reply:

(1) Provide safe terminations as part of comprehensive Sexual and Reproductive Health services which includes providing the full range of contraceptives.

(2) The Provincial Departments of Health are working together with the South African Police Service in dealing with illegal abortions in the country. However, the people who offer illegal abortions do not operate in clinics, they operate as mobile service providers where they make appointments with their clients to meet along the streets then take them to a house or a structure that is not easily identifiable and which are not permanent sites at which they offer these services.

END.

Reply:

1. (a) According to the Syrian Embassy in South Africa, during the period under discussions, 27 South Africans visited Syria;

(b) Fourteen (14) government officials, eight (8) individuals attended a wedding, two (2) visited relatives, two (2) agricultural and technical experts and one (1) normal visit.

2. According to the South African Embassy in Syria, there are 9 South Africans residing in Syria.

3. (a) From both the South African and Syrian governments, no South African’s has been reported dead.

(b) Not applicable.

UNQUOTE

Reply:

The Security Services paid for by the State falls under the responsibility of the South African Police Service and is not for our personal use. Hence, neither the Deputy Minister nor I use the service for our personal use. Staff members also do not use the service for their personal use.

I am reliably informed by our public entities that they do not use such services for their personal use.

END.

Reply:

Surgically designated facilities for the provision of terminations of pregnancy services comprise of 84% of all hospitals in South Africa.

END.

Reply:

1.(a) (b) (i) (ii) (iii)

There is currently no regulation, which requires the phasing-out of all defibrillators and replacing them with AEDs. The Automated External Defibrillators (AEDs) are the recommended cardiac resuscitation equipment in areas where there is high possibility of witnessed cardiac arrest and can be used by a trained lay rescuer. That is why the department is ensuring that they are acquired for clinics and identified areas in hospitals. However, defibrillators continue to be the preferred cardiac resuscitation equipment in other medical sections in hospitals as they offer more options including pacing and pulse monitoring.

The department acknowledges the proven advantages of using Biphasic defibrillators over monophasic defibrillators and therefore continue to replace monophasic defibrillators with biphasic defibrillators, which provide results with less energy and are more efficient. The department has also ensured that those life support equipment are available on transversal contracts (RT4 and RT2) through National Treasury to provide end-users easy access to acquire. I.e. AEDs and Biphasic defibrillators (with AED mode).

(2) Application specialist training is arranged for every life-support equipment procured by the department therefore employees are trained on the current biphasic defibrillators in hospitals.

END.

Reply:

a) Kimberley Mental hospital project is a priority to National and Provincial department of Health. In 2017/18 financial year the department put aside R279, 7735, 062 million from Health Facility Revitalisation Grant.

b) The budget indicated in (a) will take the project to practical completion which is expected to be reach in November 2017.

END.

Reply:

This question should be redirected to the Ministry of Transport, as the competent authority.

Reply:

The Department of Health does not collect data on medical and surgical procedure separately.

END.

Reply:

(a) No

1. iSimangaliso Wetland Park

(b) No

(i) 2014-2015 No

(ii) 2015-2016 No

(iii) 2016-2017 No

(aa)(aaa) Not applicable

(bbb) Not applicable

(bb)(aaa) Not applicable

(bbb) Not applicable

(2) South Africa National Parks (SANParks)

(b) No

(i) 2014-2015 No

(ii) 2015-2016 No

(iii) 2016-2017 No

(aa)(aaa) Not applicable

(bbb) Not applicable

(bb)(aaa) Not applicable

(bbb) Not applicable

3. South African National Biodiversity Institute (SANBI)

(b) No

(i) 2014-15 No

(ii) 2015-16 No

(iii) 2016-17 No

(aa)(aaa) Not applicable

(bbb) Not applicable

(bb)(aaa) Not applicable

(bbb) Not applicable

4. South African Weather Services (SAWS)

(b) No

(i) 2014-2015 No

(ii) 2015-2016 No

(iii) 2016-17 No

(aa)(aaa) Not applicable

(bbb) Not applicable

(bb)(aaa) Not applicable

(bbb) Not applicable

---ooOoo---

Reply:

The South African Government was not aware of any genocide on Indonesian territory. The Department of International Relations and Cooperation will continue to monitor developments in this regard. The issue was not on the agenda of the 34th Session of the Human Rights Council in March 2017.

Reply:

(a) Department of Public Works

(i) Yes, one case

(ii) and (iii) No.

(aa) (aaa) Mr Xolisa Yakobi

(bbb) Project Manager

(bb) (aaa)

The company TP Construction tendered for a contract for the refurbishment of existing houses into office accommodation for the South African Police Service (SAPS) in Mqanduli, Eastern Cape Province. An investigation conducted revealed that Mr X Yakobi, a Project Manager of the Department of Public Works, was still registered on the Companies and Intellectual Property Commission (CIPC) records as a member of TP Construction. The official was subsequently subjected to disciplinary action and was dismissed from the Department of Public Works.

(bbb) R7, 738, 258.00

(b) No, i.e. in respect of the four Public Entities that report to the Department of Public Works, namely the Construction Industry Development Board (CIDB), the Independent Trust (IDT), the Council for the Built Environment (CBE) and Agrëment South Africa (ASA).

(i), (ii) and (iii) and (aa) (aaa) and (bbb) and (bb) (aaa) and (bbb) Fall away.

Reply:

a) I am advised that the management of the Department (EDD); the Industrial Development Corporation (IDC); International Trade Administration Commission (ITAC) and Competition Tribunal are not aware of any contracts that were awarded to staff members in the above mentioned financial years, and to the best of their knowledge, no contracts were awarded to staff members.

b) Mr Nkhumeleni, a Case Administrator at the Competition Commission, provided stationery to the Department of Forestry and fisheries in the 2016/17 financial. The amount involved amounted to R41 000.

 

-END-

Reply:

Since the psychiatric unit at Tshilidzini Hospital was burnt down and declared uninhabitable by the architects, mental health services at this hospital have been scaled down to provide only emergency admissions and 72 hour assessment of involuntary mental health care users. Designated cubicles in the medical ward (eight male and four female beds) are utilized for this purpose. Following the 72 hour assessment process, where further inpatient care treatment and rehabilitation is required, patients are transferred to hospitals that have functional mental health units such as Donald Fraser, Siloam, and Malamulela Hospitals.

The re-development of the entire Tshilidzini Hospital is in the planning phase and provides for the construction of a full psychiatric unit.

END.

Reply:

(a) Department of Public Works

No, the Department of Public Works did not appoint transaction advisors for tenders in the period 1 January 2012 to 31 December 2016

Therefore;

(i), (ii), (iii), (iv) and (v) Fall away.

(b) Department of Public Works (DPW) Entities

Three of the DPW entities namely;

The Council for the Built Environment (CBE), Construction Industry and Development Board (CIDB) and Agrement South Africa (ASA) did not appoint transaction advisors for tenders in the period 1 January 2012 to 31 December 2016 except Independent Development Trust (IDT).

(b)	(i)	(ii)	(iii)	(iv)
Yes, the IDT did appoint a transaction advisor for tenders in the the period 1 January 2012 to 31 December 2016.	The Appointed transaction advisor was Manyeleti Consulting SA (Pty) Ltd	Manyeleti Consulting SA (Pty) Ltd - was appointed to provide professional services for the Security Fencing Tenders linked to the Department of Correctional Services.	Procurement of Contractor : R 476,519,029.78 Procurement of Engineers: R 58,348,737.04 Total Programme Cost: R 534,867,766.82	R 21 402 503,98 was paid to Manyeleti Consulting SA (Pty) Ltd for transaction advisory services rendered

Reply:

I am advised by the IDC that Start-Up Nations South Africa is a platform for the IDC to assist in establishing and developing a conducive environment for entrepreneurs and the promotion of entrepreneurship in South Africa, particularly in support of increasing youth enterprise applications. The IDC is a founding member of the programme. The IDC has motivated its participation in this programme as providing support to develop the IDC’s bankable pipeline of businesses to be supported and financed with regards to youth, women, Black Industrialists, B-BBEE, localization, rural development and township economy projects amongst others. Ms Mmodi Rambau-Nesengani is the appointed IDC representative to the Start-Up Nations SA programme.

 

-END-

Reply:

The Department is leasing the building situated between Brander and Henshall Street in Mbombela on behalf of Department of Home Affairs. The building is required and the space was procured in line with the needs of the Department of Home Affairs. The leased building was procured as there was no owned property suitable and available to meet the needs of the Department of Home Affairs. It must be noted that the Department of Public Works has plans to develop a precinct in Nelspruit, which will meet the requirements of User Departments.

Reply:

(1) (a) The following entities reporting to the Minister of Health have a board in place, namely;South African Medical Research Council (MRC), Office of Health Standards Compliance (OHSC),Council for Medical Schemes (CMS) and National Health Laboratory Service (NHLS);

(b) The South African Health Products Regulatory Authority does not have a board in place. The entity is newly established and the enabling legislation in this regard was proclaimed effective 01 June 2017.

(i)

Entity	Board Members	Date of Appointment	Expiry of term of office
South African Medical Research Council	Prof Mike Sathekge	1 November 2016	31 October 2019
	Prof Quarraisha Karim
	Dr Rachel Chikwamba
	Prof Mark Cotton
	Ms Nafeesa Kadwa
	Dr Zilungile Kwitshana
	Prof Johnny Mahlangu
	Prof William Rae
	Prof Brandon Shaw
	Prof Linda Skaal
	Prof Tholene Sodi
	Prof Sithembiso Velaphi
	Dr Patricia Hanekom
	Prof Lindiwe Zungu
	Prof Elizabeth Bukubisi
Office of Health Standards Compliance	Prof Lizo Mazwai	1 January 2017	31 December 2019
	Dr Ethelwynn Stellenburg
	Prof Stuart Whittaker
	Mr Abdul Kariem Hoosain
	Ms Audrey Montshiwa
	Mr Bada Pharasi
	Dr Bandile Masuku
	Ms Sheila Barsel	29 May 2017	31 December 2019
	Ms Keitumetse Mahlangu
Council for Medical Schemes	Prof Yosuf Veriava	14 November 2014	30 November 2017
	Dr Loyiso Mpuntsha
	Ms Lunah Nevhutalu
	Prof Bonke Clayton Dumisa
	Prof Sadhasivan Perumal
	Ms Maboye Mosidi
	Mr Johan Van der Walt
	Mr Matlodi Steven Mabela
	Adv Harshila Khoosal Kooverjie
	Dr AquinaThulare	14 February 2017	30 November 2017
National Health Laboratory Service	Prof Eric Buch	29 November 2016	29 April 2018
	Dr SibongileZungu	20 April 2017	30 April 2018
	Prof Barry Schoub	20 April 2017	29 April 2018
	Prof Lawrence Obi	20 April 2017	19 April 2020
	Ms SphiweMayinga	20 April 2017	19April 2020
	Dr GerhardGoosen	1 November 2015	31 October 2018
	Mr MichaelManning	30 April 2015	29 April 2018
	Dr BalekileMzangwa	18 November 2016	17 November 2019
	Mr Stanley Harvey	1 February 2015	31 January 2018
	Ms NtombikayiseMapukata	1 February 2015	31 January 2018
	Prof Haroon Salojee	1 September 2015	31 August 2018
	Prof Mary Ross	1 September 2015	31 August 2018
	Prof Willem Sturm	1 September 2015	31 August 2018
	Ms NelisiweMkhize	1 September 2015	31 August 2018
	Mr Andre Venter	2 January 2015	1 January 2018
	Dr Patrick Moonasar	1 February 2015	31 January 2018
	Dr Timothy Tucker	1 January 2016	31 December 2019
	MrLungaNtshinga	1 January 2016	31 December 2019
	Mr Ben Durham	1 November 2014	31 October 2017
	Ms ZwelibanziMavuso	21 December 2016	20 December 2020
	Mr Michael Shingange	1 February 2015	31 January 2018
	Prof ShabirMadhi	10 April 2017	Acting CEO

(ii)

Entity	Total number in each board	Total number of females in eachboard
SAMRC	15	9
OHSC	9	4
CMS	10	5
NHLS	22	5

(2) (a) The Board of the South African Health Products Regulatory Authority is appointed by the Minister of Health and (b) will be appointed not later than October 2017.

END.

Reply:

(a)(b) Yes, the Department received a list of names of officials conducting business with organs of state from the Department of Public Service and Administration. The Department is currently conducting an investigation whether the officials have disclosed their interests and whether they have resigned as a directors of the companies or ceased conducting business with the organ of state.

(aa)(aaa)Name	(bbb)Designation
CJ Smidt	Ambassador
CS Machaba	Clerk
ME Kobe	Administration Officer
FS Magubane	Ambassador
SG Ntanzi	Foreign Service Officer
TM Mogorosi	ICT 1st Secretary
SE Mcinziba	Assistant-Director
LS Ngonyama	Ambassador
BA Mfengwana	Assistant-Director
MB Dombo	Assistant-Director
L Mancoba	Foreign Service Officer

(bb) (aaa) and (bbb) The investigation is ongoing and further details are not available- will be made available as we progress following legal prescripts.

Reply:

The Competition Tribunal, ITAC, and Competition Commission did not make any payments to the Black Management Forum for its Corporate Update dinner hosted on the 09 June 2017.

The IDC purchased one table at the Black Management Forum (BMF) dinner at a cost of was R40 000 excluding VAT. The sponsorship included one corporate table, branding for the IDC and allowance for a total of 10 attendees.

-END-

Reply:

(a) 

The latest cost projection for the completion of all units at the Kusile Power Plant is R161.4 billion (excluding Interest During Construction), based on P80 costs.

P80 schedule is a risk-adjusted schedule that caters for the major risks that the projects are currently facing. It is based on the current contractor performance and risk provision for risks outside the control of the project (e.g. industrial action), based on historical events. P80 refers to an 80% chance of these risks materialising.

(b) 

The amount spent on the construction of the specified power plant to date, as at 30 April 2017 is R113.07 billion (excluding Interest During Construction).

(c)(i)

The expected time frames for commercialisation of Kusile Units are based on a P80 schedule, as follows:

Kusile Units	P80 Commercial Operation Dates
Unit 1	31-Jul-18
Unit 2	31-Jul-19
Unit 3	31-Aug-20
Unit 4	31-Mar-21
Unit 5	30-Nov-21
Unit 6	30-Sep-22

(c)(ii)

The expected installed capacity of each of the 6 units at Kusile is 800MW, with a total combined installed capacity of 4,800MW.

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(a) The post of director-general was advertised in the media, interviews were held, request for appointment was submitted to Minister for Public Service and Administration and Cabinet concurred with the appointment;

(b) Yes, the person (name furnished) formally apply for the position;

(c) No

(d) Motivation as per Cabinet Memorandum submitted to Minister for Public Service and Administration:

“Mr Mogokare Richard Seleke displayed excellent understanding of the role and mandate of the Department of Public Enterprises. He possesses 17 years’ experience in the public service which is needed to be successful in the position. He demonstrated the ability to successfully engage with all relevant stakeholders as required from the incumbent of the position of Director-General of the Department of Public Enterprises. Furthermore the Interview Panel agreed that he will be able to manage relationships between the political leadership and the Department in a mature manner.

The Interview Panel is of the opinion that he will be able to provide excellent leadership to the Department of Public Enterprises on a strategic level.  Mr Seleke understands the compliance matters and processes required in the public service. He also demonstrated the required competencies for the position and during the interview demonstrated innovative ideas, the ability to think out of the box and strong leadership capabilities.”

Remarks: Reply: Approved / Not Approved

Ms. Benedicta Mogaladi Lynne Brown, MP

Act DDG: Corporate Management Minister of Public Enterprises

Date: Date:

Reply:

(1)(a)(i)  

	(1)(a)(iii)(aa)	(1)(a)(i)	(1)(b)
Name	Period	Contract Purpose	Status
TFR Bridging plan	01-Jun-09	30-Nov-10	TFR Bridging plan	Complete
Corridors and Hubs	01-Jan-09	30-Jun-11	Corridor and Hub strategy and execution	Complete
Delivering MDS	01-Jan-12	30-Sep-12	Delivery of the Market Demand Strategy	Complete
TFR Operating model	01-Apr-12	30-Aug-13	Implementation of TFR new operating model	Complete
SWAT 1	02-Feb-13	31-Jan-14	Group capital Integration and optimisation	Completed
Maputo Corridor	01-Nov-13	31-Aug-14	Strategy, design and evaluation of Maputo Corridor	Complete
Capital Rooms and affordability	01-Apr-14	30-Dec-14	Capital structuring and affordability	Complete
TCP - Capital Room	01-Apr-14	31-Mar-15	TCP Project Factory, War Room, Business Case and Resourcing	Complete
Iron Ore	09-Apr-14	08-Apr-15	Renegotiating Iron Ore contract	Complete
Coal	09-Apr-14	30-Sep-15	Support services for coal line increase with a breakthrough of 2mt per week for a period of 17 months	Complete
NMPP	09-Apr-14	08-Oct-15	De-risking and acceleration of the New Multi-Product Pipeline (NMPP) for a period of 18 months	Complete
Defined Benefit Fund	23-Jan-14	30-Jan-16	Defined benefit consulting services	Complete
Results Management Office	15-Jan-13	13-Mar-16	Implementing and embedding a RMO facility	Complete
SWAT II	09-Apr-14	08-Apr-16	Capital optimisation and implementation support services	Complete
Transaction Advisory	15-Jan-13	18-May-16	Acquisition of 1064 locomotives tender	Complete
Manganese	09-Apr-14	08-Oct-16	Manganese execution support for a period of 30 months	Complete
General Freight Business	19-May-15	15-Nov-16	Support Transnet in increasing General Freight Business	Terminated
Liquid Fuel and Gas demand	24-Mar-15	23-Mar-18	Gas demand forecasting	Complete

(1)(a)(ii) Professional business and consulting services to support the short to medium term requirements of Transnet in the delivery of the various strategies over this timeframe, the strategies included the Four Point Turnaround plan, the Quantum leap program and now the Market Demand Strategy (MDS) as well as the Earnings Before Interest, Taxes, Depreciation and Amortization (EBIDTA) risks to the MDS as a result of the economic conditions in the past 3 years.

(1)(a)(iii)(bb) and (1)(b)(ii)

Whilst Transnet is committed to providing as transparent an account of the information requested, Transnet is bound by contractual obligations it owes to these suppliers and the disclosure of the values would be in breach of the confidentiality clauses of the contracts Transnet has with these suppliers and the disclosure of the financial information regarding these contracts would prejudice the commercial interests and rights of these suppliers. Such unauthorised disclosure may expose Transnet to legal proceedings and its directors and officers to charges of failing to comply with their fiduciary duties to the company.

(2)(a) To the best of our knowledge, it appears Transnet complied with the Public Finance Management Act, Act 1 of 1999 in all cases.

(2)(b) Transnet complied with its internal procurement policies and procedures in each case.

(3)(a) In all cases, the contracts were necessary as a result of internal resourcing constraints and the requirement for specialised skills.

(3)(b) The specialised nature of the contracts required specialist skills which were not available within Transnet. These specialised skills were only required for the duration of the contracts.

The appointment complies with paragraph 15.8 of the Transnet Procurement Procedures Manual which refers to the appointment of consultants.

 

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

There a number of state banks that are already operating, including the Land Bank, Development Bank of Southern Africa (DBSA), Postbank and many other Development Finance Institutions (DFIs). The Minister of Finance is responsible as the executive authority for the Land Bank and DBSA, and the Minister of Telecommunications and Postal Services for the Postbank. The province of KwaZulu-Natal also owns Ithala Bank. Aside from the Postbank and Ithala, none of the other banks are retail deposit-taking banks, and none of these banks are registered in terms of the Banks Act, as they are often established in terms of their own legislation, or by an exclusion or exemption from the Banks Act (a practice we intend to phase out). Hence, both the Postbank and Ithala have submitted applications for a bank license to the Registrar of Banks at the South African Reserve Bank (Registrar of Banks).

The National Treasury has no plans to establish a new state bank. Neither can any province establish a new state bank in terms of section 125(2)(b) of the Constitution (which only permits provinces to engage in functional areas which are listed in Schedule 4 and Schedule 5 of the Constitution), and we are only dealing with legacy provincial banks like Ithala (which is the only remaining one) in terms of Schedule 6 the Consitution. Rather, the initiatives around Postbank and Ithala are to ensure that all state deposit-taking banks operate in future in terms of a bank license in terms of the Banks Act, and the National Treasury assists the relevant departments to remove some legal and structural impediments that currently prevent them from applying for a bank license.

Whilst there is an initiative to review and possibly consolidate some of the DFIs, there is no intention to consolidate the different banks into one ‘one’ state bank, as they serve different markets (e.g. agriculture and land, municipal infrastructure and retail banking). The Department of Human Settlements is in the process of merging the three DFIs under its watch (National Housing Finance Corporation (NHFC); National Urban Reconstruction Housing Agency (NURCHA) and the Rural Housing Loan Fund (RHLF), to create one Human Settlements DFI. There is also the process of merging the National Empowerment Fund (NEF) into the Industrial Development Corporation (IDC). All these consolidating initiatives are led by other national departments, and do (and should) involve consultations with the National Treasury before such plans are finalised, and submitted to Cabinet for approval.

Major South African State Banks and DFIs

Institution	Sector	Funding Model
IDC	Industrial/SMME	Wholesale/Self-Funded
SEFA (Small Enterprise Finance Agency)	SMME and BEE	Government transfer (via IDC)
NEF		Government transfers and self-funded
DBSA (Development Bank of Southern Africa)	Infrastructure	Wholesale/ Self-Funded
NHFC	Housing	Wholesale/Government transfer/ Multilateral and bi-lateral loans
NURCHA		Wholesale/ Government transfers/ Self-Funded
RHLF		Government transfer/ Self-Funded
Land Bank	Rural Development	Wholesale/ Self-Funded
Ithala	Savings/transactional	Government transfers/ Deposits
Postbank		Deposits

*Smaller or provincial DFIs are not included in the table

2. The National Treasury has been working together with the Department of Telecommunications and Postal Services to establish the Postbank division of the South African Post Office (SAPO) as a stand-alone state bank with its own governance structures separate from the SAPO. The Postbank was granted authorisation to establish a bank by the Registrar of Banks in July 2016, and it submitted its application for registration as a bank to the Registrar of Banks on 26 June 2017.

However, decisions relating to the institutional form have not been finalised, and will depend on regulatory requirements as required by the Registrar of Banks at the SARB, taking into account the possible costs for the fiscus (both current and future) associated with various institutional arrangements.

3. (a-b)There is no intention to fund any equity holding in any state bank from the Government Employees Pension Fund or any other state pension or provident fund. The National Treasury is still engaging with the Department of Telecommunications and Postal Services on the funding of the Postbank, the expectation is for the Postbank to be funded or capitalised from its own resources, as we want to minimise any funding from the fiscus or via the sale of government assets. It is anticipated that all state banks will operate on a commercial basis, and profitably, and will not need to have recourse to the fiscus.

4. (a-c) Minister of Telecommunications and Postal Services, who is the executive authority for the Post Office (of which the Postbank is a division).

Defining the specific market failure or gap in the market that the state bank is to address will be an important policy decision. Any bank that lends to retail customers opens itself to great risks, and that is why we want all such banks to be regulated in terms of the Banks Act and properly supervised by the Registrar of Banks at the SARB, to ensure that we minimise any lending and other risks to the fiscus.

5. (a-b) Not applicable, as there are no new state banks that are to be created. With regard to the Postbank, I refer you to the Minister of Telecommunications and Postal Services, who is the executive authority for the Post Office (of which the Postbank is a division).

Reply:

The following responses were received from the National Student Financial Aid Scheme (NSFAS):

(a) (i) 2014-15: 228 639 students

(ii) 2015-16: 235 522 students

(iii) 2016-17: 225 933 students (unaudited)

(b) NSFAS has the data for each student funded at Technical and Vocational Education and Training (TVET) colleges for the respective years in question. However, this data is not descriptive per category of support, but rather provides the total amount allocated to a student. The Department’s TVET Branch specifies for each academic year, the maximum value for class fees, accommodation, transport, books and other expenses. These maximum values are contained in the Bursary Guidelines published by the Department.

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 1620 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE:

Reply:

(a-b) No.