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19 June 2017 - NW1745

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Mackenzie, Mr C to ask the Minister of Women in the Presidency

Whether any staff of (a) her department and (b) each entity reporting to her were awarded any contracts or agreements to conduct business with any state entity in the (i) 2014-15, (ii) 2015-16 and (iii) 2016-17 financial years; if so, what are the (aa)(aaa) names and (bbb) professional designations of the staff members and (bb)(aaa) details of the contract(s) and/or agreement(s) awarded and (bbb) amounts in each case?

Reply:

Not applicable.

________________________

Approved by the Minister on

Date………………………..

19 June 2017 - NW1449

Profile picture: Grootboom, Mr GA

Grootboom, Mr GA to ask the Minister of Social Development

(a) What is the total number of persons who were employed at early childhood development centers in the (i) 2014, (ii) 2015, (iii) 2016 and (iv) 2017 academic years, (b) what number of the specified persons were assessed against the Child Protection Register and (c) what number of the specified persons were found not suitable to work with children in each case?

Reply:

(a) What is the total number of persons who were employed at early childhood development centers in the (i) 2014, (ii) 2015, (iii) 2016 and (iv) 2017 academic years,

The above Parliamentary Question has provincial implications and at the time of reply no response was received from Provinces.

(b) the Child Protection Register classifies organisations only as employers and not in terms of their functions, namely early childhood development centers. However, the number of employees screened in (i) 2014 were 30010, (ii) 2015 were 32780, (iii) 2016 were 39203 and 2017 were 3921 (April and May), and (c) No specified persons in respect of early childhood development centers were found not suitable to work with children in each case.

19 June 2017 - NW1391

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America, Mr D to ask the Minister of Higher Education and Training

(1)Have any officials in his department been implicated during an investigation by the Directorate for Priority Crime Investigation (Hawks) into a syndicate that offered acceptances for medical students at the University of KwaZulu-Natal in exchange for cash; if so, what are the relevant details; (2) does his department have any oversight mechanisms in place monitoring the fairness of the student application process at universities; if not, why not; if so, what are the relevant details?

Reply:

  1. The Minister is not aware of any official in the Department who has been implicated in the Hawks investigation into a crime syndicate offering acceptances for medical students at the University of KwaZulu-Natal.
  2. Public higher education institutions are governed in terms of the Higher Education Act (Act No 101 of 1997, as amended) and their respective statutes. The Act clearly stipulates that the public higher education institutions established in terms of this Act are juristic persons (section 20(4)); as such, they enjoy a large degree of autonomy. The Act empowers Councils to govern universities, which entails determining the admission policy, entrance requirements in respect of particular higher education programmes, number of students who may be admitted for a particular higher education programme, manner of their selection and minimum requirements for readmission to study at the public higher education institution concerned. As part of their governance role, Councils must exercise effective oversight over the implementation of these policies.

Currently there are no existing mechanisms to monitor the student application process at universities; however, the Department is in the process of developing the Central Applications Service.

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 1391 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE:

19 June 2017 - NW1144

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Marais, Mr S to ask the Minister of Defence and Military Veterans

(a) How many submarines does the SA National Defence Force have, (b) how many of the specified vessels are (i) operational, (ii) non-operational and serviceable and/or (iii) non-operational and unserviceable state, (c) how long has each vessel been in this state and (d) (i) what are the reasons for each vessel’s current state and (ii) how can this be prevented in the future?

Reply:

(a) How many submarines does the SANDF have?

Three.

(b) How many of the specified vessels are operational?

(i) At present two of the three are operational.

(b) How many of the specified vessels are non-operational and serviceable?

(ii) One of the submarines is non-operational and serviceable.

(b) How many of the specified vessels are non-operational and unserviceable state (sic)?

(iii) N/A.

(c) How long has each vessel been in this state?

Apart from the two operational submarines the third submarine has been in a refit period from 2014.

(d) What are the reasons for each vessels’ current state?

(i) A refit period normally takes 24 months. Delays when experienced are attributed to funding and long lead times for the delivery of spares.

(d) How can this be prevented in the future?

(ii) N/A.

19 June 2017 - NW1499

Profile picture: Matsepe, Mr CD

Matsepe, Mr CD to ask the MINISTER OF PUBLIC SERVICE AND ADMINISTRATION

Whether (a) her department and (b) each entity reporting to her procured any services from and/or made any payments to (i) a certain company (name furnished) or (ii) any other public relations firms; if not, in each case, why not; if so, in each case, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such payments?

Reply:

DPSA

The Department of Public Service and Administration has not procured any services and/or made any payment to Bell Pottinger. The Department never required any services from Bell Pottinger.

NSG

b)(i) The National School of Government (NSG) did not procure any services from Bell Pottinger

(ii) The NSG did not procure any services from any other public relations firms

The NSG did not have any need for such services.

CPSI:

(b) (i) No-the CPSI did not have any need to procure from the said company

(ii) No the CPSI did not have any need to procure from any other public relations firms

(aa) Not applicable

(bb) Not applicable

(cc) Not applicable

(dd) Not applicable

(ff) Not applicable

END

19 June 2017 - NW1583

Profile picture: Madisha, Mr WM

Madisha, Mr WM to ask the Minister of Mineral Resources

Whether, with reference to his replies to question 27 on 2 March 2016, question 287 on 14 March 2016 and question 1155 on 10 May 2016, and in view of the leaked e-mails that have been published in the media recently, which indicate that he had travelled to Switzerland with a number of members of a certain family (name furnished) and a certain person (named furnished), he travelled to Switzerland with the specified family members and the specified person in 2015; if not, how did he travel to Switzerland; if so, (a) what were the circumstances of the specified trip and (b) what is his relationship with the specified person?

Reply:

In confirmation and further to the responses to questions 287 on 14 March 2016 and question 1155 on 10 May 2016, the Minister and officials from the department made an official trip as part of his mandate and in keeping with the undertakings made to avoid job losses.

Approved/Not Approved

Mr MJ Zwane, MP

Minister of Mineral Resources

Date Submitted:-……………/………………/2017

19 June 2017 - NW1078

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Van Damme, Ms PT to ask the Minister of Communications

(a) From what date has the former Acting Chief Operation Officer of the SA Broadcasting Commission (SABC), (name furnished) been suspended from the SABC and (b) how much has he been paid since his suspension?

Reply:

The former Acting Chief Operation Officer of the (SABC) has been suspended in accordance with the SABC policy from 01 January 2017. The policy also makes provision for payment of suspended employees, an amount of R1 713 865.24 has been paid.

19 June 2017 - NW1462

Profile picture: Van Dyk, Ms V

Van Dyk, Ms V to ask the Minister of Communications

(1)With regard to a certain contract (name furnished), (a) what was the initial budget allocated for the outsourcing of the service to redesign the SA Broadcasting Corporation’s (SABC) website, (b) why did the service need to be outsourced and (c) how many staffers are employed in the SABC’s IT division; (2) whether a tender process was followed to appoint the specified company; if not, why not; if so, what are the relevant details of the tender process that was followed; (3) (a) who did the shortlisting, (b) who decided to appoint the specified company to provide this service, (c) what was the total value amount of the contract tendered, (d) what total amount has been paid to the specified company to date and (e) what was the quality of work delivered by the specified company?

Reply:

According to the SABC:

(1)  (a) an amount of R 4 550 000 excluding VAT was budgeted for redesign of the SABC seven websites, (b) due to lack of skills and requisite expertise, (c) the business unit (BIT) currently employes five (5) technical and development resources who have to develop and maintain/support 26 websites of the SABC.

(2) an unsolicited proposal was received from the service provider and the entitiy was appointed through deviation in line with the SABC Supply Chain Management Policy.

(3) there was no shortlisting, the appointment was endorsed by the three executive directors, the contract value amount to R4 550 000 excluding VAT, an amount of R4 550 000 excluding VAT has been paid to date, the New Metro FM website bears reference.

19 June 2017 - NW1797

Profile picture: Khawula, Ms MS

Khawula, Ms MS to ask the Minister of Women in the Presidency

(1)Which entities reporting to her (a) have a board in place and (b) do not have a board in place, (i) of those that have a board, (aa) when was each individual board member appointed and (bb) when is the term for each board lapsing and (ii) how many (aa) board members are there in each board and (bb) of those board members of each entity are female; (2) with reference to entities that do not have boards in place, (a) who is responsible for appointing the board and (b) when will a board be appointed? NW2005E

Reply:

Not applicable.

________________________

Approved by the Minister on

Date………………………..

19 June 2017 - NW1337

Profile picture: Redelinghuys, Mr MH

Redelinghuys, Mr MH to ask the MINISTER OF PUBLIC SERVICE AND ADMINISTRATION

Has the Public Service Commission (a) referred any potential conflicts of interest in terms of section 16(1) of the South African Police Service Employment Regulations of 2008 to the Minister of Police and (b) received any report from the Minister of Police in terms of section 16(2) of the specified regulations in the (i) the 2012-13, (ii) 2013-14, (iii) 2014-15, (iv) 2015-16 and (v) 2016-17 financial years; if not, in each case, why not; if so, what are the relevant details in each case?

Reply:

The PSC scrutinized financial interests of SMS members of the South African Police Service (SAPS)/Department of Police for the 2012/2013 to 2015/2016 financial years in terms of Chapter 3 G of the Public Service Regulations (PSR), 2001. Regulation 16(1) of the SAPS Employment Regulations of 2008 is a derivative of Chapter 3 of the PSR, 2001. Both PSR, 2001 and Regulation 16(1) provide that if the PSC is of the opinion that a registrable interest of a designated employee conflicts or is likely to conflict with the execution of any official duty of that employee, the PSC shall refer the matter to the relevant Executive Authority. Upon such referral, the EAs were expected to consult with the employee concerned and take appropriate steps. The EAs were also expected to report to the PSC within 30 days from the date of the referral, with information on actions taken subsequent to the referral. If no actions were taken, the EAs were supposed to provide reasons thereof.

(a)

(i) No. The PSC did not refer any matter to the Minister of Police (the Minister) relating to conflicts of interest during the 2012/2013 financial year. Due to capacity constraints, the PSC could not scrutinise all the financial disclosure forms that were submitted in respect of the 2012/2013 finical year.

(ii) Yes. The PSC consulted with the forty (40) officials within the SAPS, whose registrable for the 2013/2014 were construed to be posing potential conflicts. The purpose of the consultations was to determine the following:

  • The extent of the involvement of the officials in the companies.
  • Whether the officials perform any remunerative work outside their normal duties for the companies.
  • Whether the involvement of the officials in the companies could lead to actual conflicts of interest.

In terms of Chapter 3 G of the PSR, 2001 the PSC was supposed to refer matters to the relevant Executive Authority in cases where an opinion was held that a conflict of interest existed or was likely to occur. Subsequent to the consultations the PSC referred the forty (40) cases of potential conflicts of interests identified through the scrutiny of financial disclosure forms submitted for the 2013/2014 financial year to the Minister in terms of Chapter 3 G of these PSR, 2001. It was recommended to the Minister that the Minister should provide advice to the officials concerned on the following issues:

  • Manage potential conflicts of interest so that they do not lead to actual conflicts of interest.
  • Disclose all their registrable interests on an annual basis.
  • Seek prior permission to conduct Remunerative Work Outside the Public Service.
  • Refrain from conducting business with the State

A further recommendation was made that the Minister should consult with the employees who were found to have not disclosed all their registrable interests, to determine the reasons for not fully disclosing their registrable interests and thereafter, consider charging these officials with misconduct for not complying with Chapter 3 of the PSR. The Minister was requested to revert to the PSC within 30 days from the date of receipt of the letter from the PSC, with information on actions taken subsequent to the referral. If no actions were taken, the Minster was requested to provide the reasons thereof.

(iii) Yes. The PSC consulted with the twenty seven (27) officials within the SAPS, whose registrable for the 2014/2015 were construed to be posing potential conflicts. The purpose of the consultation was to determine the following:

  • The extent of the involvement of the officials in the companies.
  • Whether the officials perform any remunerative work outside their normal duties for the companies.
  • Whether the involvement of the officials in the companies could lead to actual conflicts of interest.

In terms of Chapter 3 G of the PSR, 2001 the PSC was supposed to refer matters to the relevant Executive Authority in cases where an opinion was held that a conflict of interest existed or was likely to occur. Subsequent to the consultations the PSC referred the twenty-seven (27) cases of potential conflicts of interests identified through the scrutiny of financial disclosure forms submitted for the 2014/2015 financial year to the Minister in terms of Chapter 3 G of these PSR, 2001. It was recommended to the Minister that the Minister should provide advice to the officials concerned on the following issues:

  • Manage potential conflicts of interest so that they do not lead to actual conflicts of interest.
  • Disclose all their registrable interests on an annual basis.
  • Seek prior permission to conduct Remunerative Work Outside the Public Service.
  • Refrain from conducting business with the State

A further recommendation was made that the Minister should consult with the employees who were found to have not disclosed all their registrable interests, to determine the reasons for not fully disclosing their registrable interests and thereafter, consider charging these officials with misconduct for not complying with Chapter 3 of the PSR. The Minister was requested to revert to the PSC within 30 days from the date of receipt of the letter from the PSC, with information on actions taken subsequent to the referral. If no actions were taken, the Minster was requested to provide the reasons thereof.

(iv) Yes. The PSC scrutinised the financial disclosure forms in terms of Regulation 21(1) of the PSR 2016. In terms of this Regulation, the PSC must assess compliance with the requirement to disclose all financial interests and also to establish whether the involvement of officials in any activities of the companies could lead to conflicts of interest. It was found that sixty-one (61) officials within the SAPS did not disclose all their registrable interests. The PSC advised the Minister to consult with the officials concerned to determine the reasons for not fully disclosing their registrable interests and thereafter, consider taking disciplinary action against these officials for not complying with the requirements of the Financial Disclosure Framework, in terms of the Disciplinary Code and Procedures, as contained in the SMS Handbook.

The scrutiny also revealed that there were ninety-one (91) officials whose financial interests could be construed as posing potential conflicts of interest. In view of the likelihood that these officials could use State resources to further their private interests, the PSC advised the Minister to consult with the officials concerned to discuss the steps to remove the conflicts of interest in terms of Regulation 21(1)(c). The Minister was also advised that should the officials fail to take appropriate steps to remove the conflicts of interests after such consultation had taken place, the Minister must, in terms of Regulation 21(1)(d) cause disciplinary action to be taken against the officials concerned.

There were officials within the SAPS, with whom the PSC had consulted in the previous financial years and was satisfied with the explanation given regarding the officials involvement in companies. The PSC advised that the involvement of these officials in companies must be tightly monitored to ensure that they do not lead conflicts of interest. The Minister was also advised that should it transpire that such involvement poses potential conflicts of interest, the Minister should take the necessary steps in terms of Regulation 21(1)(c) and (d) as indicated above.

The PSC also found that seven hundred and sixteen (716) officials within the SAPS complied with the Financial Disclosure Framework and are not involved in activities that could be construed as posing potential conflicts of interest. In view thereof, no further action was required from the Minister with regard to the said officials.

The Minister was requested, in terms of Regulation 21(1)(e) of the PSR, 2016, to revert to the PSC within 30 days of receipt of the letter from the PSC with an indication as to whether any steps were taken regarding the PSC’s findings. If steps were taken, a description of those steps was to be provided. If no steps were taken, the Minister was requested to kindly provide the reasons thereof.

(v) No. The due date for the submission of financial disclosure forms in respect of the 2016/2017 financial year was 31 May 2017. The PSC is currently capturing statistics relating to the submission of these forms. The scrutiny of the financial disclosure forms has not been commenced with yet.

(b) No. The PSC has never received any report from the Minister of Police in terms of Chapter 3 G of the PSR, 2001 or in terms of Regulation 21 of the PSR, 2016.

END

19 June 2017 - NW1419

Profile picture: Steenkamp, Ms J

Steenkamp, Ms J to ask the Minister of Social Development

(a) What is the total number of cases of (i) fruitless, (ii) wasteful and (iii) irregular expenditure that were identified by the Auditor-General in her department in the (aa) 2014-15, (bb) 2015-16 and (cc) 2016-17 financial years and (b)(i) what was the total amount involved in each case and (ii) how much has been recovered in each case?

Reply:

 
  1. Total number of cases that were identified by the Auditor- General

(b)(i) what was the total amount involved in each case

b (ii) how much has been recovered in each case?

(aa)2014/2015)

(a)(i)Fruitless Expenditure

0

R0.00

R0.00

(a)(ii) Wasteful Expenditure

0

 

R0.00

R0.00

(a)(iii) Irregular Expenditure

9

R1 604 877.32

R0.00

(bb)2015/16

(a)(i)Fruitless Expenditure

1

R485 000.00

R0.00

(a)(ii) Wasteful Expenditure

0

R0.00

R0.00

(a)(iii) Irregular Expenditure

6

R3 063 101.94

R3 063 101.94

(cc)2016/17

(a)(i)Fruitless Expenditure

0

R0.00

R0.00

(a)(ii) Wasteful Expenditure

0

R0.00

R0.00

(a)(iii) Irregular Expenditure

1

R414 105.00

R414 105.00

(cc) 2016/2017 The Auditor-General is still busy with the 2016/2017 audit in the Department and it is not known what the final outcome will be until the final management report is issued on 14 July 2017.

19 June 2017 - NW1082

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Alberts, Mr ADW to ask the Minister of Health

(1)Whether he has been informed of the situation where opportunities for placements for nursing students who are not bursars and who completed their degrees in nursing have been withdrawn and/or rejected by the South African Internship and Community Service Programme and that they are therefore prevented from starting their compulsory community service year, whereas opportunities for placements for students who are bursars have been accepted and their community service year started on 2 January 2017 already; if so, (2) whether he can provide a full explanation as to why a distinction is made between nonbursar nursing students who completed their studies and those who paid for themselves when placements are made for community service; if not, (3) whether he will investigate the specified practice; if not, why not; if so, what are the relevant details?

Reply:

(1) During the 2016/17 cycle for community service placements, there was a challenge in placing all Professional Nurses eligible for community service as some provinces had incorrectly stated their available posts. This impacted both provincial bursary holders as well as privately funded graduates.

(2) In accordance with Public Service Regulations, all provincial departments are compelled to contractually obligate bursars to serve their respective departments for a stipulated period of time. Failure to redeem the bursary obligation results in the money having to be paid back by the bursar. Approximately 76% of all Professional Nurses who required a community service placement in 2016/17 had a contractual obligation to serve in a particular public health facility, district or province.

(3) The National Health Council has reviewed the matter in-depth and has requested provinces to urgently avail the posts required for the remaining group. The National Health Council resolved on 12 May 2017 that this process should be completed by 31 May 2017. I, in consultation with the provincial Members of the Executive, has written to each province to request a specific number of posts per province, to accommodate all the waitlisted individuals.

The National Department of Health has also been tasked to investigate how to improve post co-ordination and funding to avoid such challenges going forward.

 

END.

19 June 2017 - NW1178

Profile picture: Hunsinger, Dr CH

Hunsinger, Dr CH to ask the Minister of Communications

(1)(a) What is the total number of cases that were investigated by the forensic unit of the SA Broadcasting Corporation (SABC) since 1 May 2014, (b) what are the amounts involved in each case and (c) how many cases resulted in (i) disciplinary action, (ii) criminal procedures and (iii) no action whatsoever; (2) what is the stated deadline for conclusion of each case where disciplinary procedures were instituted; (3) with regard to the cases that resulted in no action being taken, (a) why has no action been instituted in respect of the specified cases and (b) when will the investigation be concluded in this regard; (4) how many of the SABC employees who are currently being investigated by the forensic unit have been identified in other reports, including the Special Investigating Unit report, the Auditor-General's report of 2009 and other similar investigations by audit firms; (5) how does her department intend to resolve the matter of unethical conduct at the SABC?

Reply:

(1), (2), (3) and (4) Thirty-seven (37) reports were issued, table herewith below provides a summary of all reports issued for the period 01 May 2014 to 31 March 2017.

(5) The SABC has been directed to (i) review relevant policies including human resource policies, (ii) ensure participation of all employees during the review process, (iii) ensure awareness of all policies,(iv) and ensure compliance thereof, amongst others.

REPORTS ISSUED

January 2014 – March 2014

AREA OF REVIEW/

PROJECT NAME & REPORT ISSUED DATE

TASK

SUMMARY OF FINDINGS

RECOMMENDATION

MANAGEMENT ACTION

RESPONSIBLE MANAGER

IMPLEMENTED/ NOT IMPLEMENTED/ ACTION IN PROGRESS

Airtime Outside Broadcasts

Missing Petty Cash

(TECH14/1123)

05 December 2014

Allegations of missing petty cash

(Non-Compliance to Policies and Procedures)

Accounting Officer and Financial Manager failed to comply with Cash Transactions Policy in that they did not record all cash movements, did not issue receipt, did not do cash counts and balance floats.

Disciplinary Action to be instituted against the Line Manager and the Employee.

Disciplinary Action

Dennis Harold

Awaiting Management Action

Procurement

Security Tender review

(PRO14/1154)

02 December 2014

Review into security tender processes

(Non-Compliance to Policies and Procedures)

Irregularities in the current security tender process.

New security tender process to be started.

Rectification of control environment

Madoda Shushu

Awaiting Management Action

Radio

Metro FM

(GSM14/1127)

28 November 2014

Allegation of unauthorised broadcast of a Campaign

(Non Compliance to Policies and Procedures)

Elements of the campaign were broadcast on Metro FM without authorisation.

Disciplinary Action to be instituted against employees involved.

Disciplinary Action

Hazel Tlhabanyane

Awaiting Management Action

Technology

BIT – Missing Equipment

(TECH14/1120)

19 November 2014

Alleged missing equipment at BIT

(Non Compliance to Policies and Procedures)

Allegations were found to be unsubstantiated.

BIT should implement a proper system of control for all items purchased.

Rectification of control environment

Lorraine Sefolo

Awaiting Management Action

Content

Unethical Behaviour

(CON14/1138)

04 November 2014

Commissioning Editor allegedly performing additional work without permission

(Non Compliance to Policies and Procedures)

Allegations of additional work being performed were found to be unsubstantiated.

No evidence could be found to substantiate the allegations; therefore we could not recommend any corrective action.

No Action required

Jacqueline Setai

No action required

Procurement

Verification of qualifications

(PRO14/1139)

28 October 2014

Alleged misrepresentation of qualifications

(Non Compliance to Policies and Procedures)

Allegations that the qualifications were misrepresented were found to be unsubstantiated.

No evidence could be found to substantiate the allegations; therefore we could not recommend any corrective action.

No Action required

Anton Heunis

No action required

TV

GM: Channels

(TV14/1142)

21 October 2014

Allegations leveled against GM: Channels

(Non Compliance to Policies and Procedures)

The GM: Channels failed to disclose his Business Interests.

Disciplinary action to be instituted against GM: Channels

Disciplinary Action

Verona Duwarkah

Awaiting Management Action

Lotus FM

Telethon

(PBSR14/1133)

29 September 2014

Alleged misrepresentation pertaining to the funds raised during the Warm Hearts Campaign

(Unethical Behaviour)

No proper documentation of shoes bought and distributed, were kept for reconciliation and audit purposes.

Progressive disciplinary action to be instituted against former Marketing Manager and the Programmes Manager.

Progressive Disciplinary Action

Zolisile Mapipa

Vincent Tsoenyane

Awaiting Management Action

North West Province

Executive Producer – News and Current Affairs

(REG14/1132)

25 September 2014

Alleged irregular appointment of the Executive Producer – News and Current Affairs

(Non compliance to Policies and Procedures)

Candidates were interviewed by a panel and the successful candidate was selected by the panel.

Human Resources failed to keep all the interview packs on record.

Human Resources must ensure that all interview documentation is kept for record purposes.

Recruitment Policy to be reviewed.

Rectification of control environment

Dingaan Feliti

Completed.

Radio 2000

Irregular claims

(PBSR14/1120)

16 September 2014

Irregular claims submitted by On Air Radio Presenter

(Non compliance to Policies and Procedures)

No new contract in place for 2015 after changes were made to the contract amount and an overpayment of R400.00 in October 2013.

Progressive disciplinary action to be instituted against the Programmes Manager

The amount of R400.00 to be recovered from the On Air Radio Presenter.

Progressive Disciplinary action and Recovery

Carlito Sheikh

Completed. Progressive hearing held.

Free State & Northern Cape Province

Abuse of vehicles - Kimberley

(REG13/1098)

25 August 2014

Misuse of SABC Vehicle at the News offices in Kimberley

(Non compliance to Policies and Procedures)

Assignment Editor used a SABC Vehicle for private purposes and without completing the necessary ML4 forms.

Disciplinary action to be instituted against Radio Assignment Editor and Acting Regional Editor.

Disciplinary action

Mamontha Motaung

Action in progress

Commercial Enterprises

Review of RAP Studios Payments

(GSM13/1075)

25 August 2014

Review of payments made at RAP Studios

(Fraud)

An artist submitted invoices for work which was never performed.

The amount of R29,400.00 to be recovered from an artist and her contract to be terminated.

Recovery

Maekanya Morotoba

Recovery in progress

Procurement

Head of Procurement

(PRO14/1119)

19 August 2014

Allegations levelled against the Head of Procurement

(Non Compliance to Policies and Procedures)

One deviation was referred to BAC and the other was under the R2 million thresholds. It was common cause that the Head of Procurement and GM: Procurement Operations knew each other and previously worked together.

The Procurement Policy and DAF is in contradiction pertaining to the referral of deviations below R2 million, this should be addressed.

Recruitment Policy is silent on if and how acquaintances should be declared, this should be addressed.

Rectification of control environment

Tian Olivier

Action in progress

Procurement

Cover Quoting

(PRO14/1111)

01 August 2014

Alleged cover quoting during a bid for catering services

(Fraud)

Service Provider intentionally misrepresented facts to the SABC.

Disciplinary action to be instituted against the Buyer who failed to verify information submitted to the SABC.

Disciplinary action

Mamontha Motaung

Completed. Progressive hearing held

Group Services

SABC Medscheme

(GRP13/1100)

23 July 2014

Employees colluding with a Psychologist to bill SABC Medscheme for fictitious consultations

(Fraud)

Twenty four employees colluded with a Clinical Psychologist to bill SABC Medscheme for fictitious consultations. In return the practitioner paid the employees a cash amount.

Disciplinary action to be instituted against the twenty four employees.

Disciplinary action

  • Bongane Mabaso
  • Theresa Geldenhuys
  • Oupa Mahlangu
  • Dennis Harold
  • Lesetja Lekgotho
  • Tankiso Mothebe
  • Tumiso Radebe

In progress

(Another 192 incidents were identified and the matter was put on hold pending finalisation of the remaining matters)

Procurement

Desktop RFI

(TECH14/1109)

15 July 2014

Procurement irregularities pertaining to the Desktop Request for Information

(Non-compliance to Policies and Procedures)

Technology requested deviation from normal Procurement processes. This was supported by the Head of Procurement and approved by the BAC Round Robin Members.

New deviation request form applicable from 1 March 2014 must be used for future deviation requests.

Rectification of Control environment

Madoda Shushu

Completed.

News

Unruly Behaviour

(NEWS14/1119)

11 July 2014

Unruly behaviour of employee at a hotel

(Unethical Behaviour)

Unruly behaviour at a hotel brought the name of the SABC into disrepute and damaged the image of the SABC.

Disciplinary action

Disciplinary action

Simon Tebele

Completed. Employee received a written warning.

Commercial Enterprises

Media Agency

(GSM14/1113)

08 July 2014

Irregularities pertaining to the account held by a Media Agency

(Non-compliance to Policies and Procedures)

We established that a SABC Marketing Executive had an undeclared interest in a company owned by his spouse which was doing business with the SABC. The spouse on whose name the company was registered, took SABC direct clients.

Progressive action and

Disciplinary action to be instituted.

The Marketing Executive to be recalled from the Eastern Cape offices to Johannesburg.

Disciplinary action- Management resolved that no further action is warranted.

Disciplinary action

Thabile Dlamini

Eugene Zwane

Completed.

In Progress

Ikwekwezi FM

Ikwekwezi FM Dramas

(PBSR13/1099)

03 July 2014

Allegations levelled against the Drama Producer at Ikwekwezi FM

(Fraud)

Drama actor at Ikwekwezi claimed payment of the same episode twice. Abuse of power by the Drama Producer.

Disciplinary action to be instituted.

An amount of R11,000.00 to be recovered

Disciplinary action and recovery

Philip Mahlangu

Action in progress.

THE DISCIPLINARY HEARING WAS COMPLETED.

TV Operations

Alleged theft of SABC Property

(CON13/1095)

12 June 2014

Unauthorised removal of SABC Property

(Theft)

SABC décor items were allegedly stolen whilst kept at the private storage facility outside the SABC. A register was not kept by TV Operations of the items, housed during transportation from the SABC to the storage facility. Stolen items could not be identified as no proper records were kept.

TV Operations should ensure that a register is kept for all items under their control.

Rectification of Control environment

Oupa Mahlangu

Completed.

Ukhozi FM

Ukhozi FM Drama

(PBSR13/1092)

03 June 2014

Fictitious invoices being submitted by actors to Ukhozi FM

(Fraud)

Freelance actors submitted fictitious invoices in collusion with the Drama Producer at Ukhozi FM.

Disciplinary Action to be instituted and recovery of R 22, 650 from the Freelancers

Disciplinary action and recovery

Bonga Mpanza

Action in progress.

Henley TV Facilities

Invasion of Privacy

(TECH14/1110)

29 May 2014

Allegations of invasion of privacy

(unethical behaviour)

An employee at Henley TV Facilities alleged that his line manager accessed and downloaded emails from his computer without his permission. According to the records from BIT, only email logs were downloaded by BIT on request by the line manager for a disciplinary matter against the employee for various transgressions he committed. This was done in line with SABC policies and procedures

No evidence could be found to substantiate the allegations; therefore we could not recommend any corrective action.

No action required

Lesetja Lekgotho

Completed.

Procurement

Catering Services

(PRO13/1105)

21 May 2014

Alleged improper inducement from a service provider

(Corruption / bribery)

A service provider gave a SABC employee in the procurement division, money on two occasions as a gift. The service provider had submitted a tender for canteen services at the time of the incident. The employee reported the matter to her line manager.

The contract of the service provider was terminated

Rectification of control environment

Madoda Shushu

Completed.

Human Capital Services

Gold coin verification

(GRP13/1074)

19 May 2014

Verification of long services awards

(Non-compliance to Policies and Procedures)

  • Long service coins were allocated to staff members who did not qualify for such coins incorrectly; e.g. a staff member received a ½ ounce coin instead of a 1 ounce. No proper documentation / records were kept when coins were issued.
  • Coins were ordered for staff in advance, as long service awards. Some of the coins were not collected due to staff retiring or resigning prior to qualifying for long service awards. Some of the unclaimed coins were not returned to Treasury thus exposing the coins to potential theft.

All coins not collected with four months, should be returned to Treasury to avoid them being exposed to theft.

Rectification of control environment

Jabulani Mabaso

Completed.

Group Services

SABC Tours

(GRP13/1088)

14 May 2014

Irregular appointment of a temporary staff member at SABC Tours

(Non-compliance to Policies and Procedures)

Temporary Tour Facilitator was appointed based on a motivation. Three interns were appointed at Tours during 2013.

Recruitment Policy should include temporary recruitment. SOP for Interns should be communicated.

Rectification of control environment

Jabulani Mabaso

Action in progress

April 2015 – March 2016

AREA OF REVIEW/

PROJECT NAME & REPORT ISSUED DATE

ALLEGATION

SUMMARY OF FINDINGS

RECOMMENDATION

MANAGEMENT ACTION

RESPONSIBLE MANAGER

IMPLEMENTED/ NOT IMPLEMENTED/ ACTION IN PROGRESS

             

Procurement

News and Current Affairs Portable Recorders

(PRO15/1243)

14 March 2016

UK company claimed to be a reseller of Marantz products in SA that were distributed by another SA company.

(Non Compliance to Policies and Procedures)

HOP did not refer complaints received from clients regarding the tender at News and Current Affairs to the GCEO to resolve as per the SCM Policy.

Disciplinary action against HOP, Procurement should verify supplier letters before appointment of a service provider.

DC against HOP for failure to comply with the provisions of the SCM Policy.

James Aguma

Completed: Communication was send to Procurement staff regarding the verification of supplier letters.

Awaiting Management Action: Investigation against Mr. Shushu still in progress by external service provider.

 

Radio

Xitsonga Music Awards

(RAD15/1232)

24 December 2015

Allegations that the musician who received the best male and best collaboration award bribed two individuals at the station, with an amount of R15 000 each.

(Corruption)

The allegation of bribery was unsubstantiated.

Most popular song of the year results were misrepresented by the station manager in that he mentioned Song B by another artist when in truth and fact, based on the number of votes, Song C was the winner of the category.

Disciplinary action against the Station Manager of Monghana Lonene FM.

Disciplinary action against Group Internal Audit Portfolio Manager.

Draft and implement a Policy and SOP for Music Awards.

Disciplinary action and improvement of internal control.

Zolisile Mapipa

Action In Progress: DC against the Station Manager to commence on the 11th May 2016.

Completed: Progressive action against the Portfolio Manager has been completed (Verbal Warning).

Technology

Protection Services

(TECH14/1159)

15 December 2015

Alleged irregular appointments at Protection Services.

(Non Compliance to Policies and Procedures)

Protection Services appointed persons who did not meet the requirements as per advertised

position(s). We further established that applicants who met the requirements as per the advert were not shortlisted and interviewed.

Disciplinary action should be instituted against Chief Security Officer.

Progressive action should be instituted against HR Consultants.

Disciplinary action

Kubendhran Padayachee

Mzu Ndlovu

Completed: the Security Manager was requested to provide proof of qualifications which were not reflected on his CV at the time of his application and interviewing.

Human Resources updated the personnel files accordingly.

The then acting GE Risk and Governance considered the report and determined that there would not be further action taken by management

No further action required.

Sport

SABC Sport

(CON14/1140)

15 December 2015

Various allegations at SABC Sport.

(Fraud)

Independent Contractor claimed for hours not worked. Independent contractor submitted duplicate claims as well.

Specialist Producer failed to verify production registers and invoices prior to approving and for further signing as both Producer and Executive Producer as both these functions carries different controls/ responsibilities.

Operations Manager failed to exercise due care when approving payments to MOP.

GM Radio Productions engaged the supplier to render a service without a written contract.

Terminate the contractual relationship with the Independent Contractor.

Recover the amount of R1,059,200.00 from the Independent Contractor.

Disciplinary action against the employees implicated.

Disciplinary action and recovery

Bessie Tugwane

Action In Progress:

Group Executive of Sport is meeting with Employee Relations on 10 May 2016 to finalised a date for the formal sitting of the DC panel to deal with the internal candidate. This will further assist in determining how to proceed with the external / independent contractor.

Procurement

Tshwane Radio Studios

(PRO15/1227)

04 December 2015

A Service Provider who responded to a tender, claimed to be the UK reseller of studio equipment.

(Non Compliance to Policies and Procedures)

We established that the Service Provider is not a reseller of Telos products in SA, they can only sell in the UK.

Letter of Intent for should be cancelled.

In future, Procurement should confirm with Original Equipment Manufacturer (OEM) if a SA supplier is one of their resellers/ distributors.

Rectification of control environment

Zakir Rawoot

Completed: Letter of Intent was cancelled and Procurement staff was informed to verify the authenticity of sole supplier letters. No further action required

News

Various Irregular Claims- Integration in the newsroom

(NEWS15/1225)

01 December 2015

Alleged irregular claims for hours not work by Independent Contractors.

(Fraud)

Independent Contractor’s access card records and the time sheets revealed that some of the Independent Contractors claimed for hours which they did not work, i.e. they claimed for a full eight (8) hour shift even on days that they did not work a full shift.

Line Management failed to verify hours worked prior to approving payments.

Recover a total amount of R4,708.32 from all Independent Contractors identified consider terminating the agreements.

Disciplinary action against three (3) Line Managers.

Disciplinary action and recovery

Nothando Maseko

Completed :

Three (3) Independent Contractors have paid back the overpayments.

Two (2) have made the necessary arrangements with payroll to deduct.

The five (5) remaining Independent Contractors have not made any arrangements for payment. The Line Manager took a decision not to schedule them for work.

Procurement

Security Tender Auckland Park and TVOB’s

(PRO15/1214)

01 December 2015

It is alleged that there had been inconsistencies in applying the established bid evaluation criteria to bidders.

(Non Compliance to Policies and Procedures)

The BEC did not evaluate the security companies as per the established criteria as stipulated in the BID documentation.

A re-run of this security tender.

Rectification of control environment

Zakir Rawoot

Re-evaluation process has been completed. Matter on the Agenda for a decision by the BAC (Bid Adjudication Committee) scheduled for 11 May 2016.

Radio

Motsweding FM- Various Allegations

(RAD15/1200)

17 November 2015

Various allegations at Motsweding FM

(Unethical Behaviour)

Two Producers claimed for days they were not in studio. This resulted to Fruitless and wasteful expenditure amounting to R313, 250.

R46 852 to be recovered from Producers.

Disciplinary action against the Programmes Manager.

Region should install automated access control system.

Disciplinary action and recovery

Katlego Mokhele

Action In Progress: DC against employee will take place on the 26th and 27th of May 2016.

Group

Profounder Training Provider

(GRP15/1211)

10 November 2015

Staff members alleged that they never received their free gifts which were part of a package when they registered for a workshop with Profounder.

(Fraud)

Staff members received their gifts.

The allegation was unsubstantiated.

Learning & Development Management should ensure that the delegates who attended training and received gifts, declared these gifts accordingly.

Rectification of control environment

Theigasen Govender

Completed: Staff declared their gifts. No further action required

Group

Fictitious contract of employment

(GRP 15/1217)

27 October 2015

Alleged fraudulent offer of employment to student at UJ

(Fraud)

The contract was not legit and wasn’t provided by an SABC employee.

Money was accepted from the student for training which he never received.

Protection Services should create awareness to all security personnel and report the matter to SAPS for fraud and pretending to be SABC employee.

Management should create awareness to members of the public regarding SABC recruitment processes / employment opportunities, training.

Rectification of control environment

Kaizer Kganyago

Simon Mathebula

Completed :

Group Communication issued a statement informing members of the public about the SABC recruitment processes.

The complainant was advised to lay criminal charges at the Brixton SAPS

No further action is required from the SABC.

Group

DTT Migration Training RFQ(GRP15/1203)

21 October 2015

Alleged irregularities pertaining to RFQ for DTT Migration Training

(Unethical Behaviour)

Technical Training Practitioner failed to obtain relevant signatures and future exposed forwarded internal confidential to suppliers.

The Buyer accepted ‘Approval to Proceed with the Tender Process’ document without relevant signature and proceeded with the evaluation process prior to the finalisation of the Pre-Qualifying report.

Disciplinary action against the employees implicated.

Disciplinary action

Theigasen Govender

Zakir Rawoot (Acting)

Completed: Final written warning was issued against the Technical Training Practitioner.

Action In Progress: A new acting Head of Procurement has been appointed. He still needs to peruse the report and determine the action required.

Group

Fraudulent Producer for Skeem Saam

(GRP15/1216)

07 October 2015

Non SABC employee held TV auditions under false pretends by and introduced himself as an employee of the SABC.

(Fraud)

A non SABC employee held auditions under false pretends in Klerksdorp and charged members of the public a total amount of R250 per person.

Create public awareness pertaining to auditions and processes that are followed by the SABC.

Management should consider reporting the matter to SAPS.

Rectification of control environment

Kaizer Kganyago

Completed :

Members of the community opened a criminal case against the suspect in Klerksdorp.

The SABC issued a statement, advising members of the public about SABC processes regarding auditions.

No further action required from the SABC.

Radio

Metro FM

Conflict of interest - Metro FM – Programme Complier

(RAD15/1197)

15 October 2015

Alleged conflict of interest by Metro FM employee and Independent Contractor.

(Unethical Behaviour)

Producer and On Air presenter at Metro FM rendered services to Castle Milk Stout in their personal capacity which was in conflict with their duties at the station.

Disciplinary action against employee.

Terminating of Independent Contractors Agreement of the On-Air presenter.

Disciplinary action

Sibongile Mtyali

Completed: SABC employee’s contract has been terminated.

Completed :

Termination of Independent Contractor Completed

             

Metro FM

Trade Exchange

(RAD15/1201)

30 September 2015

Employees misused Trade Exchange Agreement with a service provider

(Non Compliance to Policies and Procedures)

Employees used Trade Exchange Agreement with a service provider to order gifts for their personal use.

Disciplinary action to be instituted against the former Marketing Manager, Events Coordinator and Marketing Assistant.

The amount of R47,217.35 to be recovered from the former Marketing Manager.

Disciplinary action and recovery

Sibongile Mtyali

Puleng Thulo

Completed

The Former Marketing Manager was found not quality.

The Events Coordinator and Marketing Assistant received warnings.

Radio

Ikwekwezi FM and Metro FM Music Compilers

(RAD15/1215)

30 September 2015

Music compilers allegedly accepted undue benefit from music artists in order to have their music played / included in the Station’s playlist.

(Corruption)

An employee at Ikwekwezi FM accepted undue benefit to have music scheduled and played on air.

The employee resigned with immediate effect.

No Disciplinary action as the employee resigned.

Management to reiterate to all Stations’ music compilers that action will be instituted against those who solicit bribe/accept any undue benefit which may impair/influence their decision making, from musicians, record labels and members of the public.

Disciplinary action

Mr Zolisile Mapipa

Mr Leuba Ramakgolo

Completed

News

Freelancers in the Sesotho/Sepedi/Setsana desk

(NEWS15/1210)

21 September 2015

It was alleged that Independent Contractors claimed for eight (8) hour shifts, yet they were not present in the SABC buildings for eight (8) hours

(Fraud)

During the month of May 2015 Independent Contractors claimed shifts of eight (8) hours each. An analysis of their access records revealed that they were not present for eight (8) hours on all the occasion that they claimed eight (8) hours for.

Recovery amount of R5,775. And R4,875.00 from Independent Contractors involved, respectively.

Management should consider terminating the agreements of the Independent Contractors based on dishonesty.

Progressive disciplinary action the Supervisor / Executive Producer for failure to exercise due when approving payments.

Management should revisit Independent Contractor’s Agreements and their contributions, to determine whether these are in line with the Labour Relations Act regarding supervision and working hours.

Recovery

Progressive disciplinary action

Jimi Matthews / Nothando Maseko

Completed

News

News Software

(NEWS15/1192)

18 September 2015

Alleged non adherence to processes when procuring software for news.

Non Compliance to Policies and Procedures)

Deviation process was not followed as no approval was obtained from the BAC / Head of Procurement.

Disciplinary action

Disciplinary action

James Aguma

Action In Progress

Technology

Corporate Storage Solution

(TECH15/1209)

15 September 2015

It was alleged that information pertaining to the procurement process was leaked to bidder(s)

(Unethical Behaviour)

The BEC members, who were approached by the prospective suppliers for comment, demonstrated ethical values by declining to comment on the progress / status of the process.

We could not find any evidence to substantiate the allegations.

No action required

Kuben Padayachee

No Action

Radio

Lotus FM

Dramas

(PBSR14/1145)

24 August 2015

It was alleged that the Drama Producer at Lotus FM signed and submitted tax invoices and timesheets on behalf of an independent contractor

(Fraud)

The Drama Producer’s husband is a freelance writer for the Independent Contractor and she did not declare it.

The Drama Producer had unsigned tax invoices for the Independent contractor on her computer, which she claimed the Independent contractor gave to her.

The Drama Producer submitted tax invoices and timesheets on behalf of the Independent contractor.

The Drama Assistant allegedly witnessed the Drama Producer signing the tax invoices for the Independent contractor.

Various documents were submitted to the Forensic Analysis. It was concluded that the Drama Producer could not be excluded from having forged the signatures as the invoices were not signed by the Writer.

 

Signatures could not be linked to the Drama Producer as there was an element of deception on the signatures.

The Drama Producer could not be conclusively linked to the disputed signatures.

Disciplinary action against the Drama Producer.

Management should terminate the contract of the Independent contractor

Drama Producers should declare their relationships with prospective writers

.

Disciplinary action

Zolisile Mapipa

Awaiting Management Action

News

Alleged Producer (NEWS15/1205)

24 August 2015

A member of the public attended functions at different events purporting to be a Producer for News. Further promised that he will make inserts / footage available in order to gain undue benefit

(Unethical Behaviour)

we received complaints from Public Relations & Events Company, alleging that a Mr. Tumi Moatshe attended various events purporting to be a SABC News Producer and received undue benefits

Group Communication should create public awareness about people purporting to be from SABC for personal gain, using the good name of the SABC

.

Rectification of control environment

Kaizer Kganyago

Completed

News

Irregular claims

(NEWS15/1194)

23 July 2015

Freelance employee claimed for hours not worked

(Fraud)

Freelance employee claimed for a full shift whilst he was not at the SABC.

Consider termination of freelance employee’s contract.

Disciplinary action to be instituted against Executive Producer: TV News and Bulletin Editor: Sepedi, TV News.

The amount of R8,850.00 to be recovered from the Freelance employee.

Disciplinary action and recovery.

Nothando Maseko

Completed

Procurement

Non Disclosure

(PRO15/1189)

22 July 2015

Alleged non-disclosure

(Non Compliance to Policies and Procedures)

Supplier and spouse failed to disclose their relationship to SABC.

Supplier to update his marital status with the Vendor Master office.

Disciplinary action to be instituted against Supervisor: Tours

Disciplinary action.

Tumiso Radebe

Hosea Jiyane

Completed

Procurement

Mixing Consoles Tender

(PRO14/1184)

10 July 2015

Irregularities pertaining to Mixing Consoles Tender

(Non Compliance to Policies and Procedures)

Employees did not comply with the Procurement Policy in that they requested three bidders to resubmit their quotations.

Disciplinary action to be instituted against Sourcing Specialist.

Disciplinary action.

Madoda Shushu

Action In Progress

Technology

Grievance – Building Technology

(TECH15/1193)

08 July 2015

Various allegations at Building Technology

(Unethical Behaviour)

Allegations were found to be unsubstantiated.

No action recommended as no evidence of wrongdoing was found.

No action recommended as no evidence of wrongdoing was found.

Liketso Mashigo

Completed

KwaZulu-Natal

Medscheme - KZN

(REG15/1191)

07 July 2015

Alleged fraudulent claims

(Fraud)

Higher claims for certain employees were as a result of chronic medication.

No evidence was found of wrongdoing by the employees.

No action recommended as no evidence of wrongdoing was found.

No action recommended as no evidence of wrongdoing was found.

Frans Matlala

Completed

             

Technology

Missing iPads

(TECH14/1146)

09 June 2015

Missing iPads

(Theft)

No proper system is in place over the procuring and movement of iPads.

Adequate and effective system to be developed to manage movement of iPads procured by SABC.

Rectification of control environment

Dennis Herold

Completed

Television

Fraudulent Pension Fund Claim

(TV15/1187)

25 May 2015

Misrepresentation to unduly benefit from the Pension Fund and Group Life Assurance of a deceased employee

(Fraud)

Employee intentionally and knowingly submitted false/fraudulent information on SABC nomination forms in order to unduly benefit.

Disciplinary action to be instituted against the Programme Acceptance Officer.

Disciplinary action

Jabulani Mabaso

Completed

Transport

After Hours Transport Vouchers

(TECH14/1148)

19 May 2015

Abuse of After Hours Transport Vouchers

(Unethical Behaviour)

No evidence of wrongdoing was found against the employee.

No action recommended as no evidence of wrongdoing was found.

No action to be taken.

King Matshaba

Completed

Henley TV Facilities

Theft of steel

(TECH14/1183)

18 May 2015

Theft of steel at Henley TV Facilities

(Theft)

Project Coordinator signed out SABC property without the authority to do so.

Disciplinary action to be instituted against the Project Coordinator: Henley TV Facilities

Disciplinary Action

King Matshaba

Completed

SABC Sport

Gift Registry

(SPORT15/1186)

04 May 2015

Receiving of undue benefit from an Independent Contractor

(Unethical Behaviour)

Employee received an undue benefit from an Independent Contractor which was in contravention of SABC Policies and Governance protocols.

Disciplinary action to be instituted against the former General Manager: Sport Productions.

The contracts of the Independent Contractor to be terminated.

Disciplinary Action

Bessie Tugwana

Action In Progress

Motsweding FM

Funeral Contribution

(RAD14/1185)

24 April 2015

Unethical Behaviour by former Station Manager

(Unethical Behaviour)

The former Station Manager utilised funds meant for the funeral contribution to purchase groceries for the office.

Disciplinary action to be instituted against the former Motsweding FM Station Manager.

Disciplinary Action

Zolisile Mapipa

Completed

Henley TV Facilities

Service Outages

(TECH14/1179)

April 2015

Staff members intentionally caused blackouts on Air

(Unethical Behaviour)

No evidence of wrongdoing was found against the employees.

No action to be taken.

No action to be taken.

Lesetja Lekgotho

Completed

January 2017 – March 2017

AREA OF REVIEW/

PROJECT NAME & REPORT ISSUED DATE

ALLEGATION

SUMMARY OF FINDINGS

RECOMMENDATION

MANAGEMENT ACTION

RESPONSIBLE MANAGER

IMPLEMENTED/ NOT IMPLEMENTED/ ACTION IN PROGRESS

Procurement

Various allegations at Media Technology Infrastructure

(PRO16/1283)

27 March 2017

We received a request to investigate allegations of non-compliance to SABC procurement processes for the appointment of a Licensing Service Provider

(Non-compliance to policies and procedures)

An employee at BIT appointed a Licensing Service Provider without following proper procurement processes.

Disciplinary action against Manager Service Desk for Failure to comply with the provisions of clause 12.1 of DAF and Contravention of the provisions of clause 57 (a) and (c) of the PFMA.

Disciplinary action

Mr. Tseliso Ralitabo

Action in progress

Limpopo Operation

failure to adhere to a lawful instruction

(REG16/1303)

22 March 2017

Alleged sharing of confidential information by the panel members pertaining to the interviews conducted for the Munghana Lonene FM presenter position.

(Non-compliance to policies and procedures)

An employee at Human Capital services failed to execute a lawful instruction pertaining to the engagement of an Independent Contractor.

Disciplinary action against Manager, Human Resource Capital, Limpopo Province for failure to adhere to a lawful instruction.

Disciplinary action

Mr. Mohlolo Lephaka

Ms. Makuya now dealing with the matter

Action in progress

HR is in the process to submit a motivation to seek approval to proceed with a disciplinary process.

Governance

Project Qinisa (Special request)

(GOV16/1308)

17 March 2017

We received a special request conduct a review on Project Qinisa to determine whether payments to the service provider were done in accordance to the payment schedule and deliverables

(non-compliance to policies and procedures and the provisions of DAF)

We established that payments were not linked to deliverable as per the contract. Payments were made as per the schedules and not linked to monthly deliverable

Management to implement contract management controls

No disciplinary action

Recommended in our review

Ms. Theresa Geldenhuys

No Action required

GE: Governance and Assurance has the prerogative to institute corrective actions were deemed necessary based on findings presented in the report

Kwa-Zulu Natal Operation (Radio)

Free utilisation of studios

(REG16/1279)

14 March 2017

Singer and Producer altered a song belonging to another artist and submitted it to Lotus FM as his own; and

 

Station Manager Ukhozi FM authorised the use of SABC studio without payment.

(Non-compliance to policies and procedures)

Station Manager Ukhozi FM allowed the Singer and Producer to use SABC Studios without a written contract. Committing him to the delivery of music in return for free utilisation of the studios to record music for the SABC to capacitate the station with 90%local content/ music.

Disciplinary action against Station Manager Ukhozi FM for Contravening the PFMA and DAF and the amount of R98, 040.00 should be recorded as fruitless and wasteful in respect of the utilisation of the studio with no benefit as no music was delivered to the station.

Disciplinary action

Ms. Zamambo Mkhize

Completed

No disciplinary action will be taken.

PGM is of the view that the Station Manager acted on an instruction by an Executive Member. This is despite the fact that the SABC has policies and procedures that needs to be adhered to. There was further no benefit to the SABC for the utilisation of the studio due to failure by Management in the Province to ensure that a contract with the Music Producer was in place for delivery of music to meet the 90% requirement for local content / music.

Radio

Alleged corruption and nepotism at Ukhozi FM

(RAD15/1245)

22 February 2017

We received allegations of nepotism against Programmes Manager, at Ukhozi FM increased salaries of the Ukhozi FM breakfast team in the middle of January 2016, Content Producer on the Afternoon Drive show received preferential treatment and she employed her friends in key positions.

(Non-compliance to SABC policies and procedures)

The former acting Station Manager increased the rate for one of the Ukhozi FM On Air Presenters without obtaining the necessary approval from Radio Management.

We further established an Outside Broadcast vehicle was dispatched for an Event without following proper processes.

Disciplinary action against Programmes Manager, at Ukhozi FM for Contravening Clause 12.1 of SABC Delegation of Authority Framework.

Disciplinary action against Station Manager - Ukhozi FM for increasing the salary without the necessary authorisation/approval from line Management.

Disciplinary action

Ms. Zamambo Mkhize

Action in progress

The matter was referred to the G.E. Corporate Affairs to approve that disciplinary measures be instituted against the Station Manager at Ukhozi. Currently awaiting approval.

Technology

Alleged sharing of confidential information

(TECH16/1296)

9 February 2017

We received a complaint that Project Manager, Henley TV Facilities, and Studio Operation shared information relating to the engagement of an Independent Contractor with third parties without following proper procedures

Non-compliance to SABC policies and procedures)

We established that an employee at Henley TV Facilities hosted an individual from an external company to serve summons to appear before a disciplinary inquiry at his place of employment. Security protocols were not observed such that the person was left to proceed to the studios where the independent Contractor was rendering services to the SABC.

Disciplinary action against Project Manager, Henley TV Facilities, and Studio Operation for breach of Physical Security Protocols and non-compliance to SABC policies and procedure

Disciplinary action

Mr. Buti Seipei

Completed

Manager, Henley TV Facilities, and Studio Operation received a written warning on 14 April 2017.

The security officers who failed to perform his/her duties have been reprimanded.

Group

Learning and Development

(GRP16/1273)

8 February 2017

We received allegations that Skills Development Manager at Learning and Development changed the criteria for appointing a prospective service provider to provide Film and Television learning material for the Learning and Development Department.

(Non-compliance to policies and procedures)

We established that two employees at Learning and Development negotiated a deal with a prospective service provider outside the procurement process. The Service Provider was privy to the specifications of a tender prior to this been released to the market.

Disciplinary action against General Manager: Learning and Development and Skills Development Manager; Learning and Development for, Failure to comply with the provisions of clause 12.1 of DAF, Contravention of the provisions of clause 57 (a) and (c) of the PFMA, Failure to comply with the Procurement Process and causing of Irregular expenditure for procuring without a valid contract.

Financial Manager: Supply Chain Management for Gross negligence in that he approved a BEC report without verifying the authenticity of the content recorded. Dereliction of duties in that he failed to oversee the work of his subordinates.

Tender Supervisor: Tender Administration Office – Supply Chain Management for Contravening the Procurement Policy.

Acting Supply Chain Manager for contravening the Procurement Policy; Dishonesty and

Dereliction of duties.

Disciplinary action

Mr. Mohlolo Lephaka & Mr. Simon Molaudzi

Action In Progress

Disciplinary of Learning and development staff is on hold due to an ongoing investigation which is pending.

Acting Supply Chain Manager was put on precautionary suspension pending finalisation of her matter.

Further discussion with Forensics necessary to understand the reasons for the recommendation against Financial Manager: Supply Chain Management and Tender Supervisor: Tender Administration Office – Supply Chain Management

North West Operation

Alleged unauthorised removal of equipment

SABC North West

(REG15/1262)

1 February 2017

We received allegations that the former RBF Provincial Manager removed SABC Broadcast equipment from the SABC Premises, without proper authorisation and rented same to Community Radio Stations.

(Non-compliance to SABC policies and procedures)

SABC broadcast equipment was used in during the Marikana inquiry by the SABC News team and Motsweding FM to report on the proceedings of the hearing. The Commission subsequently relocated to Centurion and the equipment was due to be returned to the SABC premises. Instead, the Provincial RBF Manager instructed his team to install the equipment at various Community Radio Stations without authorization.

  • Disciplinary action against the Provincial RBF Manager.
  • Recovery of equipment from the various Community Radio Stations.
  • Withholding of the Managers’ benefits subsequent to his immediate tendering of resignation.

Management consulted with legal to draft letters to the Community Radio Stations for the return of SABC equipment

Mr. Dennis Herold & Mr. Simon Mathebula

Action In Progress

SABC Legal has instructed attorney to draft and serve letters of demand to the various Community Radio Stations

Mpumalanga Operation (Radio)

Ligwalagwala 34th Birthday Bash

(REG16/1278)

24 January 2017

We received a request to investigate allegations pertaining to the Ligwalagwala FM 34th Birthday -Bash Deviation from the approved Business Plan regarding entrance fees for the Station’s pre – and after party events.

Revenue split 70/30 between the service provider and the Station, as per the Business Plan.

Unauthorised airtime granted to a local Biker’s Club.

(Non-compliance to policies and procedures)

We established the following:

  • No formal written agreements concluded with sponsors,
  • Free exposure given and staff members
  • Did not declare business interest.

Disciplinary action and recovery of value of the free exposure amounting to R169, 365.00

Disciplinary action and recovery

Mr. Quinton Lenyai

Action In Progress

Charges have been drafted for both employees. A panel has been selected

Date of hearing has been diarised for the 24- 25 April 2017.

12 April 2017, a briefing meeting will be held with the Initiator and implicated employees will be served with charges.

Procurement

Music Tracking and reporting tender

(PRO16/1284)

24 January 2017

We received a request to conduct a review of the Music Reporting and Tracking Technology Bid. This was after the BEC was requested to re-visit the scoring.

(Non-compliance to policies and procedures)

Allegations were found to be unsubstantiated.

None

No action to be taken.

N/A

No Action required

Technology

Unauthorised use of rented vehicle

(TECH16/1286)

24 January 2017

We received allegations that Music Compiler at Motsweding FM, was off duty and not authorised to be a driver of a SABC rented vehicle on 27 June 2016. He was allegedly involved in an accident with the above mentioned vehicle.

(Non-compliance to policies and procedures)

Music Compiler, Motsweding FM, used a SABC rented vehicle from 24 to 27 June 2016 to attend the Motsweding FM Birthday event without the necessary approval to use the vehicle.

Disciplinary action against Music Compiler: Motsweding FM and Digital Specialist, Motsweding FM.

Progressive action against Marketing Assistant, Motsweding FM and Driver, Transport Department, North West Province and possible recovery of R27,409.07 from Music Compiler: Motsweding FM.

Disciplinary action and Recovery

Mr. Daniel Mongale

Action In Progress

The report has been handed over to HR Mafikeng to action accordingly.

Sport

Alleged fraudulent claims SABC Sport - Info Hub

(SPORT16/1288)

20 January 2017

Allegations that Independent Contractors at Info Hub submitted claims for non-existing calendar days, e.g. 29 February 2015, 31 September 2015 and 31 June 2016.

(Fraud)

General Manager Radio Sport and Managing Editor Info Hub approved shift lists with incorrect dates

No payments were made to freelancers for claims put in for non-existing dates.

Management should verify authenticity of invoices prior to approval of payments and ensure that shift lists are aligned to calendars.

Rectification of control environment

Ms. Sully Motsweni

No Action required

             
  1. Special Request

AREA OF REVIEW/

PROJECT NAME & REPORT ISSUED DATE

TASK

SUMMARY OF FINDINGS

RECOMMENDATION

MANAGEMENT ACTION

RESPONSIBLE MANAGER

IMPLEMENTED/ NOT IMPLEMENTED/ ACTION IN PROGRESS

Procurement

KZN Security Tender

(REG15/1244)

14 March 2016

Forensics was requested to conduct a proactive assurance by evaluating the KZN Security Tender process to ensure that the evaluation process was conducted in a fair and transparent manner and in compliance with Procurement Policy.

Procurement adhered to the Procurement Policy and processes for the sourcing of a physical security service provider

Procurement should continue with the tender and request the latest compulsory documents from the preferred supplier.

Finalise tender

Zakir Rawoot

No action

  1. Cases reported to SAPS
    1. The following cases were reported to the South African Police Service:

No

Date reported to SAPS

Project Code

Case Description

SAPS Case No.

Police Station

Status

Comments

1

11 November 2015

TV15/1187

Pension Fund Fraud

279/11/2015

Brixton

in progress

The matter has been re-allocated from Sergeant. P Zidaya to WO LL Mokhanedi at Johannesburg Commercial Crimes Unit

2

27 June 2016

REG15/1262

North West Equipment

258/6/2016

Mmabatho

in progress

RBR Manager removed broadcast equipment from SABC premises without permission

3

06 July 2016

REG15/1253

Ukhozi M - Payola

99/07/2016

Kempton Park

in progress

Ukhozi FM Presenter solicited undue benefit for interviews and to play music on Ukhozi FM platform.

19 June 2017 - NW1471

Profile picture: King, Ms C

King, Ms C to ask the Minister of Communications

(1)For each of the past three financial years, (a) what number of local productions has the SA Broadcasting Corporation (SABC) sold, (b) what are the names of the productions that have been sold and (c) what amounts are charged by the SABC for each production; (2) whether, in line with clause 7 of the SABC Freelance Artists’ Agreement, performers are being paid commercial exploitation fees; if not, will she facilitate the process to ensure that actors are appropriately compensated for productions, which have been exploited for their commercial value; if so, what are the relevant details; (3) what formula does the SABC use to calculate commercial exploitation fees?

Reply:

According to the SABC;

1. no local productions were sold,

2. in terms of the aforementioned clause 7, the SABC is currently engaged in discussions with actors on an individual basis and through representative organisations to expedite payment. In order to facilitate the payment process, the SABC has made lists of material sold available on its website and would encourage legitimate claimants to lodge claims using the email address [email protected].

3. the formula for the payment of commercial exploitation fees is specified in the SABC standard agreements with production companies and principal actors:

 (a) The producers are entitled to 15% of the revenue, less SABC expenses, generated through content sales and licencing agreements

(b) The scriptwriters are entitled to 10% of the revenue, less SABC expenses, generated through content sales and licencing agreements

(c) Principal actors are entitled to a negotiated lump sum payment on the basis of a content sales and licencing agreements. Should the SABC and the principal actors fail to reach an agreement, the principal actors shall collectively receive two per cent of the revenue, less SABC expenses, on a pro-rata basis.

(d) The provisions regarding scriptwriters and principal actors do not apply to non-drama productions.

19 June 2017 - NW1475

Profile picture: Mhlongo, Mr P

Mhlongo, Mr P to ask the Minister of Communications

Whether the SA Broadcasting Corporation has granted any licences to boxing promoters (a) in the 2016-17 financial year and (b) since 1 April 2017; if so, (i) how many licences were granted, (ii) what are the names of the boxing promoters/companies and (iii) what are the relevant costs involved in each case?

Reply:

Acoording to the SABC:

(a) and (b), Yes, (i) 7 Licenses were granted during the period 2016/17, (ii) Names of the Consortium of African Promoters are as follows;

  • Sibongile Matiti
   
  • Maxhoba Mabuti
   
  • Mxolisi Jamani
   
  • Lukhanyo Ndubane
   
  • Phathutshedzo Dongola
   
  • Ayanda Lennox Matiti
   
  • Alban-Cedric Wilson
   
  • Vuyani Bungu
   
  • Samuel Tshele Kometsi of TK Promotions – May 2016
  • Victory Sport Promotions - June 2016
    • Victor Roger Roberts
    • Shanell Winlock Pailman
  • Ayanda Lennox Matiti of Xaba Promotions – July 2016
  • Lebo Mohoko of Roomus Trading – October 2016
  • Dean Lonergan of Duco Promotions – December 2016
  • Samuel Tshele Kometsi of TK Promotions – April 2017
   

(iii) Auditing process on the cost has not not been concluded

19 June 2017 - NW1472

Profile picture: Walters, Mr TC

Walters, Mr TC to ask the Minister of Rural Development and Land Reform

What are the full details of each state-owned farm managed by (a) the SA Fruit Exporters (SAFE) and (b) Bono Farm Management in each province; (2) (a) on what date was his department’s database detailing its strategic partners established, (b) what are the details of his department’s strategic partners and (c) where was the database established; (3) is the database a central or provincial facility; (4) on which dates were (a) SAFE and (b) Bono Farm Management first registered as strategic partners with his department?

Reply:

(a) The SA Fruit Exporters (SAFE) doesn’t manage any state owned farm.

(b) Please refer to Annexure A.

2. (a) 30 March 2011.

(b) Please refer to Annexure B.

(c) At the National Department of Rural Development and Land Reform.

3. The database is both national and provincial.

4. (a) Falls Away.

     (b) 7 September 2010.

ANNEXURE A TO NA-QUES 1472 of 2017

Province

Project name

Property Description

Programme/Grant type

Hectares

Strategic Partner/ Mentor

Eastern Cape

Commando Kraal

COMMANDO KRAAL ESTATE - AGRI-VILLAGE COMMONAGE

PLAS

117.2778

Strategic Partner

Eastern Cape

Sunlands Farms

Sunlands Farms - Portion 15,16,18,20,21,23,24-27,150-1,156,159,171 and 195 Farm Selborne No.115;

PLAS

409.7492

Strategic Partner

Eastern Cape

Nebraska

Nebraska 558/15,33 (Buck Kraal)

PLAS

19.2720

Strategic Partner

Western Cape

Ronald Van Schalkwyk

Portion 55,56.58 of farm Bergvallei no 408

PLAS

286

Strategic Partner

Western Cape

Nirwanda

Ptn 53(Ptn of 28) of De La Haye No.92

PLAS

39.1

Strategic Partner

Western Cape

Rietkloof 2 PLAS

Portion 33 of the Farm Rietkloof No. 144

PLAS

320

Strategic Partner

Western Cape

Rietkloof - Mount Piguet

Portions 8, 15, 16, 21, 22 and 23 of Farm No 144, Rietkloof in Piketberg Registration Division

PLAS

981

Strategic Partner

Western Cape

Plateau Farms - Dassiesfontein

The Farms Dassiesfontein - Portion 6 of South, Portion 5 of North and Portion 1 of Farm No. 73

PLAS

3 281

Strategic Partner

Western Cape

Plateau Farms - Rondawel

The Farms Rondawel - Portion 1 & 2 of the Farm Grasplaats No. 113, Portion 2 of Farm Taaibosch Hoek No. 75 & Portion 5 of Farm Bok Poort No. 54 & Portion 4 of Dassiesfontein No. 73

PLAS

4 934

Strategic Partner

Western Cape

Plateau Farms - Melrose

The Farms Melrose- Portion 2 of Farm ADJ Driekop No. 48, Ptn 1 of Farm Taaibosch Hoek No. 75 and Rem Ext of Farm Bonkers Valei No. 76

PLAS

4 860

Strategic Partner

Western Cape

Plateau Farms - Willemskraal

The Farms Willemskraal - Portion 1 of Farm Bonkers Valei No. 76

PLAS

1 662

Strategic Partner

Western Cape

Plateau - Matjieskloof

Portion 1 of the farm Bonkers Valei No. 76

PLAS

4 740

Strategic Partner

19 June 2017 - NW1029

Profile picture: Robinson, Ms D

Robinson, Ms D to ask the Minister of Communications

With regard to the Report of the Ad Hoc Committee on SABC Inquiry and in light of the overwhelming evidence of external interference and noncompliance with the Broadcasting Act, Act 4 of 1999, the Companies Act, Act 71 of 2008, and other relevant legislation, (a) what is the progress on the implementation of the recommendations of the specified ad hoc committee that the (i) new board takes reasonable steps to regularise previous decisions that may pose a financial or legal risk and (ii) interim board investigate the validity of the memorandum of incorporation that was signed in October 2014 and (b) what is the set deadline for achieving each recommendation?

Reply:

Progress Report on the Implementation of the Recommendations of the Report of the Ad Hoc Committee on the SABC Board Inquiry has been presented to the Parliament Portfolio Committee on Communications on Tuesday, 13 June 2017. The Interim SABC Board is working with speed for achieving each recommendation.

19 June 2017 - NW1480

Profile picture: Kalyan, Ms SV

Kalyan, Ms SV to ask the Minister of Basic Education

Whether (a) her department and (b) each entity reporting to her procured any services from and/or made any payments to (i) a certain company (name furnished) or (ii) any other public relations firms; if not, in each case, why not; if so, in each case, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such payments?

Reply:

(a) Department

(i)

Procured any services from Bell Portinger.

The Department has not procured any services from or made any payments to the Bell Portinger.

 
 

(ii)

Make any payments to the Bell Portinger.

   
 

(aa)

Services that were procured

N/A

 
 

(bb)

The total costs

N/A

 
 

(cc)

Detailed breakdown of the costs

N/A

 
 

(dd)

The total amount paid

N/A

 
 

(ee)

Purpose of the payments

N/A

 
 

(ff)

Detailed breakdown of the payments

N/A

 

(b) Entities

       

SACE

(i)

Procured any services from Bell Portinger.

SACE has not procured any services from or made any payments to the Bell Portinger. SACE makes use of its own internal resources for related services

 

(ii)

Made any payments to the Belll Portinger.

 
 

(aa)

Services that were procured

N/A

 

(bb)

The total costs

N/A

 

(cc)

Detailed breakdown of the costs

N/A

 

(dd)

The total amount paid

N/A

 

(ee)

Purpose of the payments

N/A

 

(ff)

Detailed breakdown of the payments

N/A

       

UMALUSI

(i)

Procured any services from the Bell Portinger

Umalusi has not procured any services from or made any payments to the Bell Portinger. Umalusi makes use of its own internal resources for related services.

 

(ii)

Made any payments to the Decolonisation Foundation

 
 

(aa)

Services that were procured

N/A

 

(bb)

The total costs

N/A

 

(cc)

Detailed breakdown of the costs

N/A

 

(dd)

The total amount paid

N/A

 

(ee)

Purpose of the payments

N/A

 

(ff)

Detailed breakdown of the payments

N/A

 

 

19 June 2017 - NW1452

Profile picture: Hadebe, Mr TZ

Hadebe, Mr TZ to ask the Minister of Social Development

How many (a) persons employed at cultural organisations were assessed against the Child Protection Register in the (i) 2014, (ii) 2015, (iii) 2016 and (iv) 2017 calendar years and (b) of the specified persons were found not suitable to work with children in each case?

Reply:

The Child Protection Register does not categorise organisations in terms of their activities such as cultural, but as employers. However, (a) the number of employees screened in (i) 2014 were 63664, (ii) 2015 were 94552, (iii) 2016 were 103350 and 2017 were 3921 (April and May), and (b) persons were found not suitable to work with children in (i) 2014 were 87, (ii) 2015 were 300, (iii) 2016 were 281, and there no records for first quarter of 2017.

19 June 2017 - NW1453

Profile picture: Hadebe, Mr TZ

Hadebe, Mr TZ to ask the Minister of Social Development

What is the annual cost of implementing the means test for old age pensions?

Reply:

SASSA has not conducted a formal study into the cost of applying the means test. However, research conducted by the Economic Research Policy Institute (EPRI) in 2011, when working with UNICEF on a paper regarding the Universalisation of the Child Support Grant, noted “The means test does impose administrative and time costs on SASSA employees and beneficiaries, but more significant costs occur during the monitoring of the grant.” The same will hold true for the older persons grant.

In an internal exercise conducted by SASSA in 2013, the direct average cost of completing an application for a social grant (excluding the disability related costs, where the direct costs are much higher, as the cost of the medical assessment must be factored in) was R89,73. This is largely driven by the amount of time it takes to complete an application, and does not factor in costs incurred by the beneficiary. This amount will require review, given the increase in staff costs since this time.

Based on trends over the past financial years, an average of approximately 200 000 new applications for grants for older persons are processed. If a unit cost of R89,73 per application is taken into account, then the cost for administering these applications is R17 946 000. While this total cost cannot be attributed to the cost of administering the means test, it does contribute a large portion of the costs.

19 June 2017 - NW1450

Profile picture: Grootboom, Mr GA

Grootboom, Mr GA to ask the Minister of Sport and Recreation

How many (a) persons employed at government-sponsored sports clubs were assessed against the Child Protection Register in the (i) 2014, (ii) 2015, (iii) 2016 and (iv) 2017 calendar years and (b) of the specified persons were found not suitable to work with children in each case?

Reply:

(a) Government has and continues to support sport clubs. Clubs directly supported by Government are community based clubs and are normally run by volunteers. The aforesaid volunteers are not paid by Government and thus have not been subjected to an assessment against the Child Protection Act by the Department of Sport and Recreation. Although the requirement for such an assessment may be considered in future, it will require capacity from the relevant agencies, in a programmatic fashion, thus necessitating assessments of the volunteers from the same clubs more regularly. Due consideration must be given to the communication on the purpose of conducting the assessments, as the retention of the volunteers is quite low.

(b) There was no screening done.

19 June 2017 - NW1539

Profile picture: Kohler-Barnard, Ms D

Kohler-Barnard, Ms D to ask the Minister of Public Works

(1)How many permanent employees of each municipality were found to have been recipients of Extended Public Works Programme jobs while in the employ of the specified municipalities (a) in the (i) 2014-15, (ii) 2015-16 and (iii) 2016-17 financial years and (b) since 1 April 2017; (2) have any of the specified employees (a) been (i) suspended, (ii) arrested and (iii) dismissed or (b) faced any other form of sanction as a result; if not, in each case, why not; if so, what are the relevant details in each case?

Reply:

The information required involves a lot of stakeholders whom we are still engaging. Therefore in order for us to provided accurate information we will need more clarity from them. A comprehensive reply will follow soon.

 

19 June 2017 - NW1520

Profile picture: Grootboom, Mr GA

Grootboom, Mr GA to ask the Minister of Arts and Culture’

With reference to the allocations of funds by his department for orchestras in each province, on which projects and/or initiatives was the funding allocated to the (a) North West and (b) Limpopo spent

Reply:

The DAC did not allocate funds directly to orchestras, rather funds were ring fenced within the budget of the National Arts Council and transferred to 3 orchestras based on submitted proposals and contracts in 2016/17 in the Western Cape and KwaZulu-Natal. No orchestras were directly funded in Limpopo or North West in the year under review. The Limpopo Youth Orchestra will however be provided with an opportunity to participate in a cultural programme in Kuwait in October 2017 as part of a cultural exchange programme. In this regard, the DAC will cover the international flights, per diems and performance fees, while the government of Kuwait will cover domestic hosting costs.

19 June 2017 - NW1530

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Hoosen, Mr MH to ask the Minister of Communications

(a) From what date has a certain person (name furnished) been employed at the SA Broadcasting Corporation (SABC) and (b) what amount has been paid to the specified person since the commencement of his employment at the SABC in terms of (i) salaries, (ii) benefits, (iii) bonuses and (iv) any other payments?

Reply:

According to the SABC, date of the persons’ semployment is 01 March 2013 as General Manager: Strategic Support and on 05 January 2015 employed as Chief Financial Officers. Total income for the period 1 March 2013 – 31 May 2017 is reflected in the table link herewith below:

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW1530Table-170619.pdf

19 June 2017 - NW1463

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James, Ms LV to ask the Minister of Communications

(1)With regard to the Imagine Communications Landmark radio booking system contract, (a) what was the initial budget allocated for the outsourcing of the SA Broadcasting Corporation’s (SABC) radio booking system, (b) why did the service need to be outsourced and (c) how many staffers are employed in the SABC’s radio division; (2) whether a tender process was followed to appoint the specified company; if not, why not; if so, what are the relevant details of the tender process that was followed; (3) (a) who did the shortlisting, (b) who decided to appoint the specified company to provide this service, (c) what are the full details of the processes followed to appoint the specified company, (d) what was the total value amount of the contract tendered, (e) what total amount has been paid to the company to date and (f) what was the quality of work delivered by the company? NW1605E

Reply:

According to the SABC:

1. (a) R7.3 million were budget for Imagine Communications Landmark booking system (Radio and TV) for over a three year period, (b) the service was not outsourced, (c) 126 Radio Sales staffers have been employed of which 58 are employed at Head Office and 68 employed at Provincial Offices across South Africa.  

2. and (3) Not fully compliet, Bid Evaluation Committee (BEC) did the shortlisting, made recommendation to Bid Adjudication Committee (BAC), the process followed include; drafting of business case, budget recommendation and approval by the business unit, approval of the business case by the Group Executive Committee, tender publication, shortlisting by Bid Evaluation Committee, evaluation by Bid Adjudication Committee and then awarding. Value and amount paid is R7.3 million, however, after Radio Implementation and in line with SABC procurement and governance structures, R4.7m was approved for Radio Landmark Licence Fee and Maintenance as part of a three-year agreement with Imagine Communications (formerly Harris) from January 2017 to December 2019.

Imagine Communications has delivered the output, benefits derived by SABC Radio Sales to date are that previously-identified significant "revenue leakages" have been addressed, and that broadcast accuracy for radio advertisements has increased to more than 90%.

19 June 2017 - NW1086

Profile picture: Mashabela, Ms N

Mashabela, Ms N to ask the Minister of Rural Development and Land Reform

Whether, with reference to his reply to question 638 on 1 April 2016 regarding the settlement of the land claims lodged by the communities of Lower and Upper Zingcuka in Keiskammahoek, Eastern Cape, the specified land claims have been settled before 31 March 2017, if not, by what date will the land claims be settled; if so, what are the relevant details?

Reply:

(a) No. Verification for the Zingcuka could not be completed due to the dispute between the Upper Zingcuka and Amakhuze communities, as there are overlapping boundaries of the claimed land. The Commission on Restitution of Land Rights (CRLR), Department of Agriculture Forestry & Fisheries and Amathole Forestry Company have jointly scheduled meetings during 2017/18 financial year in order to resolve the disputes. Upon resolving of the dispute, the CRLR will proceed with the finalization of the verification process, and the restitution processes will unfold in order for this claim to be settled.

 

19 June 2017 - NW986

Profile picture: Vos, Mr J

Vos, Mr J to ask the Minister of Basic Education

(1)With reference to her reply to question 490 on 31 March 2017, has any attempt been made by her department to settle on a working definition of decolonisation as it pertains to the school curriculum; if not, why not; if so, what are the relevant details; (2) (a) how have colonial powers influenced the Curriculum Assessment Policy Statement (CAPS) curriculum since it was introduced in 2011, (b) why is decolonisation of the curriculum a process and not an event and (c) what is a fully transformed curriculum policy regime; (3) since indigenous knowledge systems are already taught as part of the science curriculum, what steps need to be taken to ensure that learners are fully immersed in the indigenous knowledge systems; (4) will Newton’s Laws and Application of Newton’s Laws remain part of the physical science syllabus in a decolonised curriculum?

Reply:

1. The Department of Basic Education has not formulated a definition of the term “decolonisation”, nor has it settled on a “working definition” of it as it pertains to the school curriculum. The reason for this is that decolonisation as a concept or term is not mentioned in the Curriculum and Assessment Policy Statement. However, Section 1.3 (c) of the policy does point out the principles that the policy is based on and includes, for example, social transformation; human rights, inclusivity, environmental and social justice; and valuing indigenous knowledge systems.

2. (a) The Curriculum and Assessment Policy statement was crafted by South African education experts and stakeholders, upholding the values of the Constitution of the Republic of South Africa, and colonial powers have not influenced this process of development or its implementation in the education sector.

(b) Decolonisation of the curriculum is a process and not an event, as the development, review, assessment and strengthening of Curriculum in itself cannot be a once-off event. South Africa has developed and then reviewed several school curricula since 1998 as a process and the current CAPS of 2011, whilst hailed by many as the best Curriculum Statement to date, is also currently being subject to a process of review and strengthening.

(c) A fully transformed curriculum policy regime was referred to and explained in response to Internal Question Paper 09/2017, Question 490(c). It refers to a fully transformed policy reflecting the principles of CAPS and incorporating relevant policy documents that direct the content of all subjects, direct the assessment thereof and stipulate the requirements for promotion and progression of learners.

3. Steps to be taken to ensure that learners are fully immersed in the indigenous knowledge systems;

  • Indigenous knowledge advocacy in the form of expos, heritage site visits etc.
  • Inclusion of indigenous knowledge holders in local communities to link indigenous knowledge and school knowledge.
  • Promotion of play based learning through indigenous games.
  • Integration of indigenous knowledge in the social cohesion programmes.
  • Collaboration with Department of Arts and Culture, Heritage Councils and other relevant stakeholders.

4. A number of scientific laws, for example Newton’s Laws and applications thereof are part of the Physical Sciences curriculum. Scientific laws and applications thereof will remain part of any future curriculum as they provide foundational knowledge in science.

19 June 2017 - NW1390

Profile picture: America, Mr D

America, Mr D to ask the Minister of Higher Education and Training

How many students waited (a) less than one month, (b) between one and two months, (c) between two and three months and (d) more than three months for a decision about funding after applying for funding from the National Student Financial Aid Scheme for the 2017 academic year?

Reply:

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

Application Type

30 Days

(b)

60 Days

(c)

90 Days

(d)

120 Days

Total

Manual

76 836

38 939

14 077

11 270

141 122

Online

53 883

49 612

48 211

108 621

260 327

Total Students

130 719

88 551

62 288

119 891

401 449

 

33%

22%

16%

30%

100%

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 1390 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE:

19 June 2017 - NW1245

Profile picture: Van Damme, Ms PT

Van Damme, Ms PT to ask the Minister of Communications

Whether (a) her department and (b) each entity reporting to her (i) procured any services from and/or (ii) made any payments to the Black Empowerment Foundation; if not, in each case, why not; if so, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such programmes in each case.

Reply:

  1. (b) No.

19 June 2017 - NW1476

Profile picture: Mhlongo, Mr TW

Mhlongo, Mr TW to ask the Minister of Sport and Recreation

(a) What is the current status of the National Training Centre, (b) what are the funding details of the specified centre and (c) what is the total amount that the SA Sports Confederation and Olympic Committee committed in funds to the specified centre since its inception

Reply:

(a) The National Training and Olympic Preparatory Centre (NTC) emanates from the South African Sport Academies Strategic Framework and Policy Guideline. In 2013, the South African Sport Confederation and Olympic Committee (SASCOC) having earmarked the Free State Sport Science Institute (FSSI) approached the Free State (FS) Provincial Government to develop the FSSI to be the NTC. The Department of Sport and Recreation South Africa (SRSA) further made a commitment to the project and looked at a number of funding options to fund the establishment of the NTC. In 2014 five percent of the Conditional Grant was ring-fenced for the development of the NTC. This occurred after further engagements with the National Treasury to amend the Conditional Grant Framework to provide for construction of sport infrastructure. A project management company with a team of consultants was appointed to develop a Master Plan, which was approved by the NTC Steering Committee (represented by all provinces) overseeing the development of the NTC.

The first assignment was to establish the additional high-performance training facilities that can complement the current facilities. The Table below represents the list of proposed facilities to be constructed, with a phased-guide.

List of Facilities

sub-project 

Number

Phase of Development

 

 

1

2

3

4

5

6

NTC Entrance Gates

1

X

X

       

High Performance Training: Athletics

2

X

X

X

X

   

High Performance Training: Swimming

3

X

X

X

X

   

High Performance Training: Martial Arts

4

X

X

       

High Performance Training: Basketball

5

X

X

       

Accommodation Facilities & Sports Hotel

6

X

X

       

High Performance Training: Squash

7

X

X

       

High Performance Training: Hockey

8

X

X

       

After consultation with the NTC Steering Committee it was decided to commence with the construction of the indoor swimming and athletics facilities, because South African athletes are stronger and more competitive in these two-sporting codes. However, since this decision, the Central University of Technology (CUT) approached the Free State Department of Sport, Arts, Culture and Recreation with an offer of exchanging land earmarked for the FSSI that was planned for the development and construction of the NTC for Cecilia Park, which belongs to the CUT.

The Department (SRSA) considered the offer of the CUT and resolved that the Free State Provincial Government should accept it with the condition that it be Cecilia Park land with the replacement cost of all the existing buildings. The CUT agreed to the land swap and an additional R112 million for the replacement of the existing infrastructure. The exchange of the land is currently underway and is in its final stages. We have adjusted the original master plan to fit the new sit. As soon as the exchange of land is finalised we will immediately commence with the construction.

 

(b) The development and construction of the NTC is through the conditional grant. In 2015/16 to 2016/17 five percent of the grant was made available for the purpose which amounted to R24 million and R23 million respectively. In 2017/18, the conditional grant was increased to ten percent of the total grant allocation, which amounts to R58 million a year.

(c) National Lottery Distribution (Lotto) funded SASCOC to the tune of R10 million, which was for upgrading of the existing accommodation facility.

**************************************

15 June 2017 - NW1441

Profile picture: Mackenzie, Mr C

Mackenzie, Mr C to ask the Minister of Telecommunications and Postal Services

(1)    Why has the implementation of the Rapid Deployment Guidelines, inserted into the National Integrated ICT Policy White Paper, been delayed until after March 2019; (2) has a study been conducted by her department to determine (a) the impact of this delay on broadband rollout across government jurisdictions and (b) the knock-on effect of the delay on the cost to communicate and in rolling out South Africa Connect; if not, why not; if so, what are the relevant details in each case?

Reply:

I have been advised by the department as follows:

1. When the Electronic Communications Act was amended in 2014 it replaced the requirement to develop Rapid Deployment Guidelines with the requirement to develop a National Rapid Deployment Policy. As a result of this amendment, the National Rapid Deployment Policy was included in the National Integrated ICT Policy White Paper. The rationale for the replacement of the guidelines with a policy is that a large proportion of the key stakeholders that are affected by the Rapid Deployment Policy are not subject to the provisions of the Electronic Communications Act (ECA), and, consequently, their behaviour cannot be regulated through the ECA.

2.(a)-(b) The Department has not carried out any study to determine the impact of a delay in implementing the Rapid Deployment Policy as there is no delay as yet in the implementation.

15 June 2017 - NW425

Profile picture: Malatsi, Mr MS

Malatsi, Mr MS to ask the Minister of Human Settlements

(1)What is the (a) total number of housing projects that are over the value of R250 million in each province, (b)(i) date of commencement, (ii) current status and (iii) targeted date of completion of each project and (c) name of the contractor in charge of each project as of 1 February 2017 in each case; (2) what (a) are the names of the companies which have been awarded the top ten lucrative tenders for her department’s projects, (b) is the actual value of each tender and (c) was the total number of houses or residential units that were to be built in each province in the (i) 2014-15 and (ii) 2015-16 financial years?

Reply:

Honourable member, in accordance with the document titled, “Guide to Parliamentary Questions in the National Assembly”, which prohibits Members of Parliament, including the Executive, from divulging names of persons, bodies when asking or responding to parliamentary questions, I am unable to provide names of the companies as requested above. The document referred to states the following:

Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

The information received from the provinces in response to the Honourable member’s question is provided below:

EASTERN CAPE

(1) The Province has one (1) project with the value of over R250 million and details are provided as in the Table below:

No.

Commencement Date

Current status

Targeted Date of Completion

Service contracted for

Contract Amount

   

R'000

   

R'000

1

13 October 2015

In progress/running

13 October 2018

PE-Joe Slovo West 4000 BNG: Erection of 2 000 Top Structures

263 074 520

(2) (a) & (b) The amounts of top ten tenders awarded are outlined in the table below:

Number

(b) Value of Each Tender

 

R'000

1

263 074 520

2

247 851 335

3

226 931 150

4

225 129 836

5

204 297 380

6

203 858 485

7

200 207 852

8

199 890 000

9

181 021 815

10

175 731 667

(c) (i) 13 609.

(ii) 13 768.

FREE STATE

(1) The Province has a total of two (2) projects with the value of over R250 million as illustrated in the table below.

No.

Commencement Date

Current Status

Targeted Date of Completion

Service Contracted for

Contract Amount

         

R'000

1

19 June 2012

Practical Completion Reached

31 March 2016

1 700 Subsidies

284 228

2

06 March 2013

in Progress

31 December 2017

Hostel Upgrading

265 509

(2) (a) & (b) The amounts of top ten tenders awarded are outlined in the table below:

Number

(b) Value of Each Tender

 

R'000

1

265 509

2

241 935

3

238 866

4

194 979

5

150 970

6

131 055

7

128 898

8

126 453

9

124 765

10

123 420

(c) (i) 12 298

(ii) 8 505

GAUTENG

(1) The Province has a total of eight (8) projects with the value of over R250 million as illustrated in the table below:

No

Date of Commencement

Current status

Targeted Date of Completion

Service Contracted for

Contract Amount

         

R'000

1

01 April 2014

123 units completed

30 June 2015

Jabulani Ext, 1 Housing Development, 112 CRU and 508 housing units

240 166

2

02 July 2012

208 fully subsidised houses and 334 backyard rentals completed

31 March 2017

Servicing and Construction of 5 523 residential units,(1324 fully subsidised houses, 2 172 Backyard Rentals and 669 Flisp)-Cosmo City

253 710

3

05 September 2014

1 832 fully subsidised houses(2012/13), (2016/17)-112 fully subsidised houses

30 June 2023

Lufhereng mixed housing project-24 142 houses

1 322 769

4

01 September 2015

280 services completed and bulk link services is 30% complete

31 March 2017

Installation of 2 842 services and construction 2 842 through IRDP, construction of 205 houses through FLISP and 823 social housing-Sebokeng

607 185

5

04 August 2014

all the 2 905 stands have been completed and issued with service certificates

31 March 2016

Construction of water and sewer network for 2 905 units at Hammanskraal

260 946

6

01 April 2014

The project is 30% complete

31 March 2017

Construction of overall sewer network in Bekkersdal for 50km

317 144

7

01 April 2013

420 houses completed,74 at 90%, 200 FLISP complete, 2 008 stands complete and 900 wall plates and foundations

31 March 2021

Construction of 6 470 houses through IRDP and 6 470 FLISP-Savanna City

1 395 057

8

01 January 2016

260 RDP houses completed,834 RDP houses at 95% and 49 MV,354 RDP wall plates and foundations and 69 MV

31 December 2016

Mixed Development Project-1 232 low cost houses, 98 military veterans houses and 550 units of rental stock

416 631

9

01 June 2015

192 units at 95% completion

30 June 2018

Refurbishment of 672 hostel units and the fixing of leaks on the 3 hostel sections at KwaMasiza Hostel-Sedibeng

197 903

10

01 July 2015

811 houses and 256 Social Housing Units

31 March 2019

Fleurhof construction of 2 216 houses and servicing stands in Fleurhof Ext,2

237 850

(2) The amounts of top ten tenders awarded are outlined in the table below:

Number

(b) Value of Each Tender

 

R'000

1

240 166

2

253 710

3

1 322 769

4

607 185

5

260 946

6

317 144

7

1 395 057

8

416 631

9

197 903

10

237 850

(c) (i) 25 417

(ii) 40 106

KWAZULU-NATAL

The Province has a total of ten (10) projects over the value of R250 million as illustrated in the table below:

Number

Commencement Date

Current Status

Targeted Date of Completion

Service provided for

Contract Amount

   

R'000

   

R'000

1

06 January 2015

52 546

06 January 2022

KwaMashu, Umlazi and Klaarwater Rehabilation of 23 517 units(rectification)

2 575 077

2

19 February 2014

1793 374

01 March 2018

Edendale (Msunduzi) Rural Housing(EPHP)-25 000 units

2 543 241

3

11 March 2015

112 011

10 September 2016

KwaMashu and Umlazi Rehabilation of 9003 units

611 692

4

11 March 2015

54 682

10 September 2017

Newlands:Rectification-7 933

524 630

5

07 January 2013

354 640

31 December 2016

KwaMashu, Umlazi and Glebelands Hostel Upgrade-100

455 640

6

18 August 2015

398 548

18 September 2017

Cornubia phase 1B Housing Project-2 263

448 558

7

01 November 2016

89 705

31 March 2022

Mandeni:Inyoni slums clearance initiative-3 020

447 083

8

18 January 2016

80 595

30 September 2018

Umbumbulu:Rural Housing Project-2 850

357 969

9

25 March 2014

241 264

25 March 2017

EThekwiuni (various sites)Storm damaged-5 329

300 216

10

01 July 2016

21 378

31 July 2021

Maphumulo: Rural Housing-2 000

260 408

(2) The amounts of top ten tenders awarded are outlined in the table below:

Number

(b) Value of Each Tender

 

R'000

1

611 692

2

448 558

3

180 749

4

178 724

5

166 610

6

166 344

7

153 890

8

148 347

9

141 097

10

132 042

(c) (i) 35 847

(ii) 29 951

LIMPOPO 3A below.

Number

Commencement Date

Current status

Targeted Date of Completion

Service Contracted for

Contract Amount

         

R'000

1

07 December 2016

Site establishment

07 December 2018

Marapong CRU ( Lephalale)

298 000

(2) (a) The names of the Companies that have been awarded the top ten tenders are outlined as per the table below:

Number

(b) Value of Each Tender

 

R'000

1

12 619 219

2

11 814 858

3

6 395 364

(c) (i) 3 082

(ii) 13 845

MPUMALANGA

(1) (a) The province does not have projects over the value of R250 Million

(b) and (c)

Number

(b) Value of the Tender

 

R'000

1

173 696

2

112 784

3

59 225

4

58 590

5

55 946

6

54 333

7

34 975

8

34 742

9

29 613

10

28 400

(c) (i) 11 491

(ii) 10 661.

NORTHERN CAPE

(1) (a) None

(b) Not applicable

(c) Not applicable

(2) (a) Contractors are changed yearly

(b) Not applicable

(c) (i) 2 133

(ii) 1 337.

NORTH WEST

(2) (a) The Province has two (2) projects over the value of R250 million as illustrated in Table below:

No.

Commencement Date

Current status(units completed)

Targeted Date of Completion

Service Contracted for

Contract Amount

1

27 July 2004

in progress

10 October 2017

Meriting ext. 4 & 5:Rustenburg:building of houses-1590 units

293 299

2

10 February 2015

complete

07 January 2017

Vryburg ext. 28 (Dr Ruth Mompati Municipality) building of houses-1500 units

269 241

(a) The names of the Companies that have been awarded the top ten tenders are outlined as per the table below:

Number

(b) Value of Each Tender

 

R'000

1

269 241

2

212 000

3

166 000

4

155 000

5

128 000

6

103 000

7

96 101

8

95 333

9

94 427

10

86 853

(c) (i) 11 49

(ii) 10 661.

WESTERN CAPE

The Province indicated that it does not have any projects over the value of R250 million. The highest bid awarded was R228 284 427.

(b)(i) 24 August 2016

(ii) Contractor on site

(iii) 23 August 2021

 

Number

(b) Value of Each Tender

 

R'000

1

2 052

2

100 877

3

78 761

(c) (i) 16 678

(ii) 20 558

15 June 2017 - NW1507

Profile picture: Mokgalapa, Mr S

Mokgalapa, Mr S to ask the Minister of Telecommunications and Postal Services

Whether (a) his department and (b) each entity reporting to him procured any services from and/or made any payments to (i) a certain company (name furnished) or (ii) any other public relations firms; if not, in each case, why not; if so, in each case, what (aa) services were procured, (bb) was the total cost, (cc) is the detailed breakdown of such costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of such payments?

Reply:

I have been advised by the department and entities as follows:

(a) No

(b) No

15 June 2017 - NW1442

Profile picture: Groenewald, Mr HB

Groenewald, Mr HB to ask the Minister of Telecommunications and Postal Services

What (a) is the budget allocated to the process of researching, writing and conducting (i) socio economic impact assessments and (ii) public hearings pertaining to the (aa) Digital Development Fund Bill, (bb) ICT Economic Regulator and Tribunal Bill, (cc) Electronic Communications Amendment Bill and (dd) Electronic Communications and Transactions Amendment Bill, arising from the National Integrated ICT Policy White Paper as outlined in the 2017-20 Medium Term Expenditure Framework, (b) proportion of the projected expenditure will be spent on (i) departmental resources and (ii) external resources such as specialist consultants and (c) is the timeline drawn up to complete the drafting and submission to Cabinet of each piece of legislation?

Reply:

I have been advised by the department as follows:

(a) Internal human resources capacity will be utilised to research, write and conduct socio economic impact assessments. The Department will, with the assistance of the Department of Performance Monitoring and Evaluation and Office of the Chief State Law Advisor conduct this area of work.

No public hearings will be conducted in the current financial year. The Minister will consult the public through the publication in the Gazette of the draft Bills for public comment, as required by PAJA. The estimated expenditure for publication of each Bill in the Gazette is R150, 000.00.

(b) An amount of R2, 5 million has been budgeted for the procurement of external specialist consultants for the development of Business Cases for the establishment of these new institutions in line with the Treasury Guidelines.

(c) In line with the approved Annual Performance Plan, the Department will submit the draft Bills to Cabinet to approve for public consultation in third quarter of the 2017/18 financial year.

15 June 2017 - NW1443

Profile picture: Groenewald, Mr HB

Groenewald, Mr HB to ask the Minister of Telecommunications and Postal Services

What (a) is the budget allocated to the process of researching and writing all envisaged new legislation and amendments to existing legislation pertaining to the (i) Postal Services Amendment Bill, (ii) South African Post Office SOC Ltd Amendment Bill and (iii) Ikamva National e-Skills Institute (iNeSI) Bill, (b) proportion of the projected expenditure will be spent on (aa) departmental resources and (bb) external resources, such as specialist consultants and (c) is the timeline drawn up to complete the drafting and submission to Cabinet of each piece of legislation?

Reply:

I have been advised by the department as follows:

(a) There is no budget allocation for researching, writing and conducting socio economic impact assessments or public hearings, since such processes will be conducted internally with the assistance of the Department of Performance Monitoring and Evaluation and Office of the Chief State Law Advisor.

(b) The only estimated expenditure is for the publication of each Bill in the Gazette amounting R150, 000. 00.

(c) In line with the approved Annual Performance Plan, the Department will submit the draft Bills to Cabinet for approval and for public consultation in third quarter of the 2017/18 financial year.

15 June 2017 - NW1440

Profile picture: Mackenzie, Mr C

Mackenzie, Mr C to ask the Minister of Telecommunications and Postal Services

Whether his department has audited the use of funds given to certain municipalities from his department’s 2015-16 budget to implement free wifi hotspots; if not, why not; if so, what (a) reports have been submitted by each municipality indicating effective implementation and service delivered from this allocation and (b) are the further relevant details in this regard?

Reply:

I have been advised by the department as follows:

(a) During the implementation of WiFi networks by the Metros, Project offices from Metros provided the Department with weekly and Monthly progress reports. Subsequently the Department conducted physical site audits and verification on a sample of connected Wi-Fi sites as part of network performance monitoring. Around 150 live sites were audited in Tshwane, Ekurhuleni, Nelson Mandela Bay and Cape Town.

(b) City of Johannesburg and Mangaung have connected some sites but have not completed their WiFi roll out programs. The Department is constantly engaging with these Metros to ensure that all sites are connected as per the agreed plans. The process to appoint WiFi service providers for both Metros is underway.

15 June 2017 - NW677

Profile picture: Malatsi, Mr MS

Malatsi, Mr MS to ask the Minister of Human Settlements

What was the total amount in rand spent by the (a) Estate Agency Affairs Board, (b) Social Housing Regulatory Authority, (c) National Housing Builders Registration Council, (d) Housing Development Agency, (e) National Urban Reconstruction and Housing Agency, (f) Rural Housing Loan Fund, (g) Community Schemes Ombud Service and (h) her department on gifts, donations and sponsorships, including the (i) full names of the beneficiaries and (ii) reasons in each of the past three financial years?

Reply:

Honourable member, from the onset I wish to bring to your attention the document titled, “Guide to Parliamentary Questions in the National Assembly”, which prohibits Members of Parliament, including the Executive, from divulging names of persons, bodies when asking or responding to parliamentary questions. This document states the following:

Questions are to be framed as concisely as possible. All unnecessary adjectives, references and quotations are omitted. Names of persons, bodies and, for example, newspapers are only used in questions if the facts surrounding the case have been proven. As the mere mention of such names could be construed as publicity for or against them, it should be clear that this practice is highly undesirable. If a question will be unintelligible without mentioning such names, the Departments concerned are notified of the name (-s) and this phrase is used: ".......a certain person (name furnished)”

Accordingly, in the reply below, I will not provide names of persons or bodies for whom gifts were bought or donations/sponsorship given to.

Further, in the reply provided below we include purchases of flowers for staff members who are hospitalised and their bereaved families, which does not necessarily qualify to be regarded as gifts. The Department also purchases gifts when the Minister meets with foreign delegations or her counterparts.

DEPARTMENT AND ITS ENTITIES

2013/2014

2014/2015

2015/2016

Estate Agency Affairs Board

None

None

None

Social Housing Regulatory Authority

R 25 000.00

None

R61,306.00

National Home Builders Registration Council

R506 033.50

R234 582.00

R195 000.00

Housing Development Agency

R25,405.00

R26,039.00

R41,532.00

National Urban Reconstruction and Housing Agency

R31,489.07

R89,926.14

R12,056.00

Rural Housing Loan Fund

R87,500

R34,999.50

R181,642.10

Community Schemes Ombud Service

None

None

None

Department of Human Settlements

R 10 241 089.23

R 497 076.69

R 452 18.89.89

14 June 2017 - NW1516

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

Whether Government imposed any conditions on the SA Airways (SAA) Board when each Government guarantee was granted to SAA in each of the past three financial years; if not, in each case, why not; if so, what (a) are the details of each condition and (b) progress has the SAA Board made to comply with the conditions in each case?

Reply:

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

Legend:

Condition complied with

 

Condition partially complied with

 

Condition not complied with

 

Table 1: SAA Guarantee Conditions

Conditions related to the R6.88 billion guarantee issued on 22 December 2014

Within 1 month, SAA to provide a comprehensive implementation plan for the 90 Day action plan interventions outlining the milestones and timelines for delivering the targeted savings and responsible person.

SAA submitted the 90 Day Action plan implementation dashboard.

 

SAA together with the Government will review and stress test the financial model and refined LTTS.

SAA provided a financial model which was stress tested by government and the airline.

 

Within 3 months, SAA to develop proposals on the network structure, fleet strategy and structure of the airline for consideration by Government.

SAA appointed InterVistas to assist the airline in developing a new Network and Fleet Plan which was considered by government.

 

Within 3 months, SAA to identify areas where it intends reducing operational costs and develop implementation plans to reduce such costs

SAA identified cost compression initiatives and developed an implementation plan.

 

Within 3 months, SAA to strengthen its governance, internal controls and working capital management, develop an implementation plan in this regard and provide monthly progress reports to government.

SAA has indicated that it has strengthened its governance and has included a detailed summary in the 90 Day Action Plan report. No monthly progress is given in this regard.

 

SAA to provide weekly reports to NT on its utilisation, cash position and daily cash forecasts.

SAA provides weekly reports of its daily cash forecast and utilisation thereof.

 

Conditions related to the R4.72 billion guarantee issued on 08 September 2016

The primary focus of the Board must be to return the airline to financial sustainability.

This condition has been included in SAA’s 2016/17 Shareholder compact The SAA Board has finalised its five year Corporate Plan, which represents the airline’s turnaround strategy.

 

SAA's strategy must be strengthened and alignment with other state owned airlines ensured.

The SAA Board has reviewed and revalidated the airline’s strategy which forms part of the approved turnaround strategy and informs the 5 year Corporate Plan. The next step is aligning the strategy with other State Owned Airlines.

 

SAA must implement more aggressive cost cutting initiatives as recommended by the Aviation expert (Deloitte) in areas of fuel, aircraft ownership, labour, maintenance, repair and overhaul and procurement.

Initiatives identified by Deloitte have not been implemented. However, Seabury has identified additional cost compression initiatives in SAA’s 5 year Corporate Plan.

 

The network fleet plan must be refined based on a sound business case so that the airline takes advantage of opportunities to scale back the operations of the airline to focus only on operating routes which positively contribute to the profitability of the airline, closes routes that have been making losses for longer than one year, and ensures that the network plan is aligned with other state owned airlines.

The SAA Board has reviewed and revalidated the airline’s strategy which forms part of the approved turnaround plan strategy and informs the 5 year Corporate. The next step is for SAA to close routes that have been loss making for more than a year and aligning the network plan with other State Owned Airlines.

 

The airline's strategy must better differentiate the airline, enabling it to continue to compete effectively, inter alia through addressing customer value proposition.

The SAA Board has reviewed and revalidated the airline’s strategy which forms part of the approved turnaround strategy and informs the 5 year Corporate Plan. NT is in the process of assessing SAA’s turnaround strategy and 5 year Corporate Plan to determine whether the airline has addressed this condition.

 

The airline must work with National Treasury (NT) and the Department of Public Enterprises (DPE) in giving consideration to the possible merger of SAA with South African Express (SAX) airlines and the potential introduction of a strategic equity partner.

SAA has availed itself and its subsidiaries to work with the consultant, Bain and Company SA. SAA officials availed themselves in engaging with DPE and NT officials on a regular basis during the time that Bain and Company SA was conducting the Study.

 

The Board is required to appoint a permanent Chief Executive Officer (CEO), Chief Financial Officer (CFO) and other key executives in consultation with the Minister of Finance.

In progress. The CFO has been appointed. Candidates for the CEO position have been shortlisted. It is anticipated that after the CEO is appointed then he/she will then fill other key executive positions.

 

Funding must be secured to meet the airline's liquidity requirements.

SAA has secured funding for its liquidity requirements and is in the process of refinancing.

 

The Board is required to ensure that the AFS for both 2014/15 and 2015/16 are finalized.

SAA’s 2014/15 and 2015/16 AFS have been finalised and tabled in parliament.

 

SAA is required to report progress on a weekly basis to NT until such a time that the Minister of Finance determines.

NT and SAA convene weekly monitoring meetings.

 

SAA must share all media communication with the Minister of Finance or his designated representative prior to the issuance of media communication and only communicate on issues that require shareholder approval where approval has been obtained from the Minister of Finance to do so.

This matter is dependent on media communication by SAA. Currently, NT is not aware of any non-adherence to this condition.

 

Source: National Treasury

14 June 2017 - NW1083

Profile picture: Shivambu, Mr F

Shivambu, Mr F to ask the Minister of Finance

Whether the National Treasury conducted an investigation into the sale of strategic oil reserves; if not, why not; if so, on what date (a) was the investigation completed and (b) will he table the report in the National Assembly?

Reply:

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

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

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

14 June 2017 - NW1531

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

Whether the Financial Intelligence Centre referred any cases to law enforcement agencies (a) in each of the past six financial years and (b) since 1 April 2017; if so, what is the total number of cases that were referred to (i) law enforcement agencies and (ii) each law enforcement agency in each of the specified financial years?

Reply:

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

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

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

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

Year on year statistics are tabulated below:

Year

Total referred

To law enforcement

2011/2012

761

108

2012/2013

883

200

2013/2014

883

64

2014/2015

870

61

2015/2016

511

89

2016/2017

1,322

211

2017/2018 (April, May)

49

21

Total

5,279

754

End.

14 June 2017 - NW1219

Profile picture: Macpherson, Mr DW

Macpherson, Mr DW to ask the Minister of Finance

Whether (a) the National Treasury has (i) procured any services from and/or (ii) made any payments to the Decolonisation Foundation; if not, in each case, what is the position in this regard; if so, what (aa) services were procured, (bb) were the total costs, (cc) is the detailed breakdown of the costs, (dd) was the total amount paid, (ee) was the purpose of the payments and (ff) is the detailed breakdown of the payments in each case?

Reply:

National Treasury

(a)(i) None

(a)(ii) N/A

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

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

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

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

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

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

 

ASB

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

CBDA

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

DBSA

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

FIC

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

FSB

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

GEPF

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

GPAA

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

IRBA

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

PFA

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

LAND BANK

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

FAIS OMBUD

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

PIC

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

SAA

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

SARS

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

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

SASRIA

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

TAX OMBUD

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

14 June 2017 - NW976

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

(1)What is the (a) first name, (b) last name, (c) identification number, (d) designation, (e) job description, (f) date of commencement and (g) remuneration level of each person employed in the National Treasury; (2) what is the total number of persons employed in the National Treasury (a) before 31 March 2017 and (b) after 31 March 2017?

Reply:

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

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

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

14 June 2017 - NW1518

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

(1)With reference to the revelations made in court that the former SA Revenue Services (SARS) Group Executive of Business Intelligence (name furnished), remained employed by the (a) National Intelligence Agency (NIA) and (b) State Security Agency (SSA), while she was employed by SARS, was the Commissioner of the SARS aware that the specified person was still employed by the NIA and SSA while in the employ of SARS; if not, why not; if so, what are the full details of the reasons why SARS permitted this arrangement; (2) whether the specified person received any compensation from the NIA and SSA during her employ at SARS; if so, what are the details of all compensation received in each case; (3) what are the full details of the (a) specified person’s deployment to SARS as a spy and (b) persons the specified person spied on; (4) whether there are other SARS employees who (a) are currently or (b) ever were employed by the SSA in a covert capacity; if not, what is the position in this regard; if so, what are the full details in each case?

Reply:

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

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

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

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

14 June 2017 - NW1557

Profile picture: Lorimer, Mr JR

Lorimer, Mr JR to ask the Minister of Mineral Resources

(1)(a) When did his department become aware of illegal sand mining at Agate Terrace in the Eastern Cape and (b) what steps (i) have been taken and (ii) will be taken by his department to stop the illegal mining practices; (2) whether he has found that the steps taken have proven effective in combatting illegal sand mining; if not, why not; if so, what are the relevant details; (3) (a) how many cases of illegal sand mining has his department acted upon (i) in each of the past three financial years and (ii) since 1 April 2017 and (b) what is the detailed breakdown of the number of cases in respect of each province?

Reply:

1.(a) The Department became aware of illegal sand mining at Agate Terrace in the Eastern Cape on 14 October 2015.

(b) (i) The area of concern was visited 6 times, on 09 December 2015, 22 and 23 November 2016, 09 February 2017, 14 February 2017 and 18 May 2017.

On 9th of December 2015, a certain Mr Zizi Gwele was found loading sand into his truck with spades, he refused to give his full contact details and was given a verbal warning and instructed to leave the site, which he did.

During the follow up inspections conducted between 22 and 23 November 2016 to 18 May 2017 no person was found mining sand in the area mentioned above.

(ii) The Department is in the process of identifying the landowners in order to ensure that access to the site is controlled. The site will be continuously monitored until such time the transgressors are found and the relevant enforcement action will be taken against them.

2. In this particular case, the steps taken have proven to be effective as Mr Zizi Gwele, who was previously found on site and given a warning, was not present or seen on site in all occasions. In addition, no any other person was found mining sand between 22 and 23 November 2016 until 18 May 2017 when we conducted follow up site visits.

3. Below is a breakdown of reported cases of illegal sand mining that the department acted upon (i) in each of the past three financial years and (ii) since 1 April 2017 and (b) and the detailed breakdown of the number of illegal sand mining cases in respect of each province.

Province

2014-2015

2015-2016

2016-2017

1 April 2017 to date

Total per province

Gauteng

0

9

1

0

10

Mpumalanga

7

5

8

0

20

Eastern Cape

0

7

13

1

21

Limpopo

1

6

23

5

35

North West

0

0

0

1

1

Free State

0

0

0

2

2

Kwazulu Natal

0

26

31

6

63

Western Cape

0

0

0

0

0

Northern Cape

0

0

0

0

0

Total

8

53

76

15

152

Approved/Not Approved

Mr MJ Zwane, MP

Minister of Mineral Resources

Date Submitted:-……………/………………/2017

14 June 2017 - NW1250

Profile picture: Topham , Mr B

Topham , Mr B to ask the Minister of Finance

(1)Why were members of the Standing Committee on Finance not invited by the National Treasury to attend the 2017 World Economic Forum on Africa held in Durban between 3 and 5 May 2017; (2) whether he will make a statement on the matter?

Reply:

The Presidency is responsible for invitations to the World Economic Forum on Africa meetings and not the National Treasury. Only the Presidency has the prerogative to extend invitations. The National Treasury is delegated by the Presidency to organise logistics for the convening of the conference, however invitations do not form part of the delegated mandate.

14 June 2017 - NW1115

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

(a) What number of cases relating to the Prevention and Combating of Corrupt Activities Act, Act 12 of 2004, as amended, have been referred to the SA Police Service by the Financial Intelligence Centre for further investigation since the specified Act was assented to and (b) what number of the specified cases have (i) been investigated and (ii) resulted in a conviction in (aa) total and (bb) each specified financial year since 2004?

Reply:

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

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

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

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

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

2012/2013: 9

2013/2014: 8

2014/2015: 6

2015/2016: 40

2016/2017: 24

Total: 87 referrals.

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

14 June 2017 - NW1113

Profile picture: Maynier, Mr D

Maynier, Mr D to ask the Minister of Finance

(1)Whether he has ever met with certain persons (names furnished); if not, in each case, why not; if so, what are the relevant details in each case; (2) whether he has ever received any (a) gifts or (b) payments from certain persons (names furnished); if not, in each case, why not; if so, what are the relevant details in each case; (3) will he make a statement on the matter?

Reply:

1.I have never had formal meetings with them.

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

3. No statement will be made.

14 June 2017 - NW1383

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

Whether, with reference to his reply to oral question 29 on 12 May 2017, Government has investigated the possibility of using the Government Employees’ Pension Fund (GEPF) through the Public Investment Corporation (PIC) as a possible public entity partner for SA Airways (SAA) as one option in Government’s review of SAA’s long term turnaround strategy; if not, what is the position in this regard; if so, (a) how will the interests of beneficiaries of the GEPF be protected from possible future losses incurred by SAA and (b) what are the further relevant details in this regard?

Reply:

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

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

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

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

14 June 2017 - NW1112

Profile picture: Bergman, Mr D

Bergman, Mr D to ask the Minister of Finance

What (a) amount was spent by the National Treasury on e-government services in the 2016-17 financial year and (b) is the projected expenditure for the 2017-18 financial year?

Reply:

a) R21 442 522.93

b) R28 313 315.54

14 June 2017 - NW1517

Profile picture: Lees, Mr RA

Lees, Mr RA to ask the Minister of Finance

Whether any lenders imposed any conditions on the SA Airways (SAA) Board when each loan was granted to SAA in each of the past three financial years; if not, in each case, why not; if so, what (a) are the details of each condition and (b) progress has the SAA Board made to comply with the conditions in each case?

Reply:

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

 

Financial Covenants

Complied with (Y/N)

Non-Financial Covenants

Complied with (Y/N)

Project Phoenix Loans

 

1. Non-payment

SAA does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable

Y

1. Illegality / unlawfulness

It is or becomes unlawful for SAA or the Guarantor to perform any of its obligations under the Finance Documents

Y

 

2. Maintenance of insurance on assets

SAA maintains insurances with insurance companies to such an extent and against such risks as companies engaged in similar business normally insure.

Y

2. Change of control

SAA’s reporting lines change from the current reporting line, being National Treasury and the Minister of Finance, to another party.

Y

 

3. Negative pledge

SAA shall not unless otherwise agreed to in writing by the Lenders, create permit to subsist any Security over any of its assets.

Y

3. Misrepresentation

Any representation or statement made or deemed to be made by SAA or the Guarantor in the Finance Documents or any other document delivered by or on behalf of SAA or the Guarantor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.

Y

 

4. Disposals

SAA will not enter into a single transaction or a series of transactions and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset.

Y

4.Audit qualification

The Auditors of SAA qualify the audited annual consolidated financial statements of SAA or any of its Affiliates.

Y

 

5.Taxes

SAA will maintain its status as a statutory body established in accordance with laws of South Africa and will maintain its tax residence in South Africa and ensure that it is not resident or liable to tax in any other jurisdiction.

Y

5. Government Guarantee

The guarantee ceases to be legal, valid, binding and enforceable or otherwise ceases to be effective.

Y

 

6. Merger

SAA shall not, unless otherwise agreed to by the Lenders in writing, enter into any joint venture, amalgamation, demerger or corporate reconstruction.

Y

6. No breaching of laws

SAA has not breached any law or regulation which breach has or might reasonably be expected to have a Material Adverse Effect.

Y

 

7. Acquisition

SAA shall not unless otherwise agreed to by the Lenders in writing, acquire or subscribe for shares or other ownership interest in or securities of any company or other person, or acquire any business, assets or incorporate any company or other person.

Y

7. Material adverse effect

No material adverse effect has occurred.

Y

 

8. Cross default

Any financial indebtedness of SAA which is not paid due nor within any originally applicable grace period, or declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default, or cancelled or suspended by a creditor of SAA which as a result of an event of default.

Y

8. Constitutional documents

SAA will ensure that no change is made to its constitutional documents without prior written consent of the Lenders where such change has or is reasonably likely to have a Material Adverse Effect.

Y

   

Y

9. Sanctions

SAA and to the best of knowledge of SAA having made due and careful enquiry, its Affiliates, are not Sanctioned Entities, to the extent applicable, or have not participated in a Sanctioned Transaction or have not contravened and Sanctions or are not targeted under any Sanctions.

Y

   

Y

10. Compliance to anti-corruption laws

SAA to the best knowledge of SAA having made due and careful enquiry, and each of its Affiliates, has conducted its businesses in compliance with Applicable Anti-Bribery Law and has instituted and maintains policies and procedures designed to promote and achieve compliance with such laws.

Y

     

11. Change of business

SAA shall procure that no substantial change is made to the general nature of the business of SAA from that carried on at the signature date.

Y

     

12. Financial year end

SAA shall not change its Accounting Reference Date.

Y

     

13. Change in Auditors

SAA may only replace its Auditors with the prior approval of the Lenders, such approval not to be unreasonably withheld or delayed.

Y

     

14. Expropriation

The authority or ability of any affiliate of SAA to conduct its business is wholly or substantially curtailed by any seizure, expropriation, nationalisation, intervention, restriction or other action by or on behalf of any governmental, regulatory or other authority or other person.

Y