Questions and Replies

Reply:

(a) – (c) Yes, the process of reviewing the size and shape of the National Executive and government departments has begun.  

(i)   A Technical Task Team of officials from the following departments is currently reviewing the configuration of the national government: The Presidency; the Department of Public Service and Administration; the Department of Planning, Monitoring and Evaluation; the National Treasury; and the Department of Cooperative Governance.

(ii)  The Presidency is the lead department.

(iii)  A review of previous and current configurations is still in progress, with the view to establishing the synergy between the Constitution and legislation on one hand and the national macro-organisation of the national government, on the other. A preliminary analysis has been concluded.

(iv) The review will be concluded after due political consultations, in time for implementation in the sixth administration.

Reply:

The suggestion will certainly be given consideration. The views of various stakeholders will be sought.

Among others, this will include the Government Communications and Information System and State Protocol, who produces guidelines for the display of portraits of members of the executive in government buildings.

Reply:

No, I did not instruct anyone, nor was I informed of instructions given to anyone in The Presidency to assist with the identity change of the individual referred to by the Honourable Member.

I am, however, aware of a media enquiry to the Office of the Deputy President in August 2017 regarding an exchange of emails on this matter in which a staff member in the Office of the Deputy President had been involved. I was briefed on the circumstances of her involvement and have ascertained that at no point did she act improperly.

Should you require more detail on the matter, I will arrange for this information to be provided to your office.

Reply:

The judgment handed down in the Pretoria High Court in the matter of Fireblade Aviation (Pty) Ltd v Minister of Home Affairs contains statements about the Minister of Home Affairs that are of great concern and need to be given serious attention.

I am therefore giving the matter due and proper consideration.

Reply:

Government welcomes all suggestions on ways to popularise the Constitution and to advance public awareness about its values and intent.

The suggestion to read the Preamble of the Constitution at the beginning of all deliberative meetings of government will be considered alongside various other proposals, taking into account issues of practicability and impact.

Reply:

Clause 8(2) of the regulations governing the Commission of Inquiry into State Capture has been amended and published in the Government Gazette on 23 March 2018.

Clause 8(2) has been amended to read:

“A self-incriminating answer or a statement given by a witness before the Commission shall not be admissible as evidence against that person in any criminal proceedings brought against that person instituted in any court, except in criminal proceedings where the person concerned is charged with an offence in terms of section 6 of the Commissions Act, 1947 (Act No. 8 of 1947).”

Clause 8(1) has not been amended.

Reply:

The individual in question is no longer a member of the Executive.

Reply:

The Head of the Independent Police Investigative Directorate has not provided me with any information of the nature referred to in the question.

Reply:

I am always guided by the Constitution of the Republic of South Africa, 1996, when I appoint Ministers. Section 91 of the Constitution provides the prescripts by which I abide when appointing the members of Cabinet. 

Reply:

There was no member of the specified family that was part of the official delegation that accompanied the President to the State Visit to Zambia.

Reply:

No. The individual mentioned was not part of the official delegation accompanying the President to the successful State Visit to Zambia.

UNQUOTE

Reply:

The President of the Republic is remunerated in terms of Section 2(1) of the Remuneration of Public Office Bearers Act of 1998 and there is no provision for a bonus. The matter of the bonus was thus raised on a lighter note rather than in the literal sense.

Reply:

This matter is currently before the National Prosecuting Authority and I am taking legal advice.

Reply:

The appointment of Ministers is the prerogative of the President in terms of Section 91 of the Constitution of the Republic of South Africa, 1996. In exercising this power, I exercise discretion after careful consideration and the appointments are made public.

Reply:

My office has already publicly refuted the reports that suggest that I am intending to remove Mr Cyril Ramaphosa as the Deputy President of the country.

Reply:

The report is under consideration and will be released immediately after it has been finalised. The Inter-Ministerial Committee on Higher Education Funding and the Presidential Fiscal Committee are assisting the President to process the report.

Reply:

The remuneration of the advisors is regulated in terms of the Dispensation for the Appointment and Remuneration of Persons (Special Advisers) appointed to Executive Authorities on Ground of Policy Considerations issued by the Minster of the Public Service and Administration. The Dispensation is attached for the benefit of the Honourable Member.

Reply:

The Presidency does not incur costs for the President’s international trips.

When the President undertakes official international trips, host countries often extend courtesies for the President’s travelling expenses. In the absence of these courtesies, the Department of International Relations and Cooperation is responsible for the cost of the logistical arrangements with the Department of Defence being responsible for air travel.

Reply:

I have not yet received the Proclamation relating to ESKOM from the SIU.

Reply:

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

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

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

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

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

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

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

Reply:

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

Reply:

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

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

Reply:

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

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

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

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

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

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

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

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

Reply:

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

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

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

At an international context we have also signed multilateral agreements:

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

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

Reply:

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

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

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

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

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

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

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

Reply:

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

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

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

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

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

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

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

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

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

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

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

Reply:

1. (a) The Department of women’s budget for the 2017 National Women’s Day Celebrations held in Galeshewe, Kimberly was R1, 1million.

(b) The Department of women eventually spent R974, 698.46.

2. The National Women’s Day is a government function that is celebrated annually. The event is therefore opened to everyone to attend. It is for this reason that the event was well publicised through print and electronic media such as Posters, Newspapers, Radios, Television etc. There were no specific invitations sent to Political Parties. Instead, invitations were sent to Members of the Portfolio Committee: Women.

________________________

Approved by the Minister on

Date:……………………………

Reply:

The Public Protector's Report entitled State of Capture only makes inconclusive observations and does not make any findings against any person. The Report calls for further investigations of the allegations. As the Honourable Member may be aware, I have instituted review proceedings against the remedial action of the Public Protector and the matter is provisionally set down for a hearing in Court from 24 - 26 October 2017. A proper investigation on these allegations will be conducted once the Court has clarified the contentious issues.

I would like to reiterate the Government's position that any person, including the authors of the reports referred to in the Honourable Member’s question, who have information about any wrongdoing by any individual to inform the law-enforcement agencies so that investigations can be undertaken. 

It is my considered view that this is the proper and lawful way to deal with all the allegations of unlawful conduct.

Reply:

1. – (3) Please refer to the attached statement that my office issued responding to the allegations that were published in the Sunday Times newspaper article of 4 June 2017 alleging that I own a palace in Dubai in the United Arab Emirates. I would like to re-iterate that I do not own any property outside South Africa. Further, I have not requested anybody to buy a property for me or on my behalf abroad. I further confirm that I have not sought any residency outside South Africa, either for myself or my immediate family.

Reply:

(1). A copy of the Presidential Infrastructure Championing Initiative (PICI) Report that was tabled in the last meeting of the NEPAD Heads of State and Government Orientation Committee (HSGOC) in Addis Ababa, Ethiopia in 2016 is attached.

(2) The next Presidential Infrastructure Championing Initiative (PICI) Report will be tabled in the meeting of the NEPAD Heads of State and Government Orientation Committee (HSGOC), which will be held in Addis Ababa, Ethiopia in January 2018.

(3) (a) There has been a stated commitment by North-South Corridor Member States to move more freight from road to rail but no measurement metrics for tracking this have been agreed to by the Member States on the North-South Corridor.

(b) The revitalisation of the Gauteng to Angola rail route is not part of the PICI nor is it part of the North-South Road and Rail Corridor Project.

Reply:

1. The non-executive directorship was not declared before the specified company was awarded a R149 million contract to supply Eskom with wiring. The delegated Executive Authority is in engagement with the special advisor with regards to the declarations of interest.

2. Yes. The following business interests were declared by the specified Advisor:

 (i) Business Venture

 (ii) Vaal River City

 (iii) Titantrade

Reply:

My assumption is that the question by the Honourable Member is in relation to the investigation that was done by the Special Investigating Unit into the affairs of Mhlatuze Water Board in Richards Bay. The investigation by the SIU was not into a particular individual but it was in relation to Mhlatuze Water Board as an Institution and as such, no findings were made in relation to a particular individual.

Reply:

1. I established the IMC on Comprehensive Social Security in 2015 consisting of five Ministers (the first five Ministers listed under 2a below). Early this year, I took a decision to reconstitute this IMC to include other Ministers (as listed below).

 (a) Twice.

 (b) (i) & (ii) 9 September 2015 in Cape Town and 12 May 2017 in Pretoria.

 (c) The main agenda of the IMC is to address existing policy gaps by developing a responsive social protection system for South Africa as envisaged in Chapter 11 of the National Development Plan (Vision 2030). The IMC’s agenda also entails taking forward the Social Security Reform Discussion Paper.

2. (a) The following nine Ministers are Members of the IMC:

• Minister of Social Development
• Minister of Finance
• Minister of Labour
• Minister of Health
• Minister of Transport
• Minister of Home Affairs
• Minister of Telecommunications and Postal Services
• Minister of Communications
• Minister of State Security

 (b) The IMC was previously co-chaired by the Ministers of Finance and Social Development. However since its reconstitution, I am the Chairperson of the IMC.

Reply:

There are two separate cases currently pending in the Gauteng High Court and the Constitutional Court respectively. The issues to be considered by the Courts, amongst others, relate to Mr Gordhan in his capacity as the former Minister of Finance. It will therefore be inappropriate to comment on the question asked while these matters are before the Courts.

Reply:

Reply:

The issue of Tax is a confidential matter between the South African Revenue Services and the Tax payer.

Reply:

I am empowered by Section 178(1) (j) of the Constitution of the Republic of South Africa, 1996, (the Constitution) as Head of the National Executive to designate four persons to serve on the Judicial Service Commission (JSC), after consulting the leaders of all the parties in the National Assembly.

Members of the JSC that I have designated serve until I replace them in terms of Section 178(3) of the Constitution. The three members served in that capacity since 2009 and I decided to replace them to enable others a chance to also serve on the JSC. I would also like to once more express my gratitude to the three members for the immeasurable contribution they have made during their tenure.

Reply:

The Honourable Member will recall that the DA approached the Cape Town High Court on this matter. I am therefore not in a position to comment further on it. The Court must be given an opportunity to deal with the matter.

Reply:

1. I was briefed by the Minister of Health on Life Esidimeni on 1 February 2017, which was immediately after the release of the report on the matter by the Health Ombud, Professor Malegapuru Makgoba. Immediately after this briefing, on behalf of the government, I extended our deepest condolences to the families of psychiatric patients who died so tragically in Gauteng.

2. The investigation that was conducted by the Health Ombud was comprehensive and sufficient with regard to assisting government with information to deal with the matters at hand. As such I am not intending to establish a Commission of Inquiry.

Reply:

Mr PJ Gordhan is no longer the Minister of Finance.

The Minister of Finance, Mr Malusi Gigaba and the SARS Commissioner, Mr Tom Moyane, have a good working relationship. There is no longer a need for mediation.

Reply:

The status of the so called intelligence report is a subject of litigation in Court proceedings, in which the Democratic Alliance is a party. I therefore cannot comment on the matter.

Reply:

1. The Conditions of Appointment are derived from or are linked to the salaries and conditions of service which apply to comparable (identified) Senior Management positions in the Public Service. Due to this link, I will be able to issue the 2017 Annual Determination once the cost of living adjustment for Members of the Senior Management Service for 2017 has been determined by the Minister for Public Service and Administration, after consultation with the Minister of Finance.

2. The Conditions of Appointment, inclusive of remuneration and conditions of service, applicable to members of the Public Service Commission are derived from or are linked to the salaries and conditions of service which apply to comparable (identified) Senior Management positions in the Public Service. The conditions of service of Senior Managers in the Public Service are determined by the Minister for the Public Service and Administration. Despite the linking of the salary dispensation of Members of the Public Service Commission with the Senior Management Service, the salary progression measures (notch increases) introduced for the SMS in 2002 for implementation with effect from 1 April 2003 were not extended to Commissioners.

(3) The Conditions of Appointment applicable to Members of the Public Service Commission provide for an Inclusive Flexible Remuneration Package for members of the Public Service Commission. This package consists of the basic salary (70% of the package), the State’s contribution to the Government Employees Pension Fund (13% of the pensionable salary) and a flexible portion. The flexible portion can be used for a motor car allowance, 13th cheque, medical assistance, housing allowance or non-pensionable cash allowance. It should however be noted that the total amount structured for these benefits must equal the amount available in the flexible portion of the Member’s package.

Reply:

I have on several occasions, including in a reply to a written Parliamentary Question (No. 347), publicly stated that South Africa indeed nominated Mr Nhlanhla Nene for the position of Head of the African Regional Centre of the New Development Bank, also known as the BRICS Bank. No further action is being taken in this regard as Mr Nene subsequently accepted a position in the private sector.

Reply:

1. (a) No

    (b) No

2. (a) & (b): Over the years, before the removal of the former Minister of Finance Mr Pravin Gordhan from office, the Department of Energy has been undertaking the preparations for the rollout of the Nuclear New Build Programme (NNPB). As part of these preparations, the Government has entered into Intergovernmental Agreements (IGAs) with nuclear vendor countries. These IGAs cover a broad range of areas for potential cooperation. Amongst others, the IGAs cover the use of nuclear energy for electricity generation including the design, construction, operation and decommissioning of nuclear power plants in South Africa.

It should however be noted that the Western Cape High Court has recently reviewed and set aside the decision of the Minister of Energy of 10 June 2015 to table some of these Intergovernmental Agreements before Parliament in terms of Section 231(3) of the Constitution.

(i) South Korea, USA, China, France and Russia.

(ii) The IGAs have no financial implications attached to any of them because they are cooperation agreements.

Reply:

No. The two Ministers represented the National Executive in these proceedings. As the Honourable Member clearly points out in his question, this was a Government decision, based on legal advice from highly competent lawyers.

Reply:

1. Mr PJ Gordhan is no longer the Minister of Finance.

The Minister of Finance, Mr Malusi Gigaba and the SARS Commissioner, Mr Tom Moyane, have a good working relationship. There is no longer a need for mediation.

2. In light of the response under (1), this question is no longer relevant.

Reply:

1. No
2. Please refer to the attached media statement that was issued by the Ministry of Public Works on 23 April 2017.
3. See the reply above (2).

Reply:

(a)(i) As part of the overall turnaround strategy of the Department of Public Works, the Department has concluded a detailed review of its business processes which resulted in extensive business process reengineering to vastly improve the Supply Chain Management (SCM), operations and procurement system. The revised SCM business process to put the Department’s SCM on a 7 year reform path began with a phase of correction of inefficiencies to stabilization (2014 – 2017) and ultimately to standardization, integration and optimization of the SCM business process (2017 – 2020). This will ensure that the Department’s SCM is fully compliant with the regulatory framework governing SCM and will also be able to meet its business requirements effectively and efficiently. The SCM reform initiatives are pursued in collaboration with National Treasury’s Chief Procurement Office. The Department was selected by the Minister of Finance as a pilot site for the implementation of general procurement reforms in the public sector.

The Department has reviewed and reissued its SCM Policy which promotes stricter governance and compliance. This policy now places the Department in good stead from a compliance perspective. The SCM policy is now reviewed annually. For every SCM activity that is performed, there is a mapped out process flow with activity checklists, templates and reports. Utilisation of the mentioned documentation now enhances compliance, thereby contributing to reducing irregular expenditure.

The organizational structure of SCM has also been reviewed and a new structure was developed to meet business requirements. The structure is geared to focus on the support of the various functional streams of the Department through the correct mix of skills sets and competencies. The new structure provides for adequate segregation of duties and thus conflicts of interest will be eliminated.

The Department’s Inspectorate and Compliance Unit is now a key role player in SCM processes prior to the award of every bid or quotation. This unit verifies that every SCM activity leading up to the recommendation of the bid has been complied with. Only upon receipt of the approved compliance checklist, will the bid be forwarded to the relevant committee for approval.

The Department has further developed a zero tolerance to deviations and issued a circular which enforces that any deviation is tabled with delegated authority and/or submitted to National Treasury.

The Department has also enforced consequence management against transgressors of SCM policies. Further, the Department has embarked on a process to restrict suppliers that have been found to have breached the SCM policy, committed fraud and/or colluded with staff or other suppliers.

The above initiatives have had a profound effect in curbing fraud and corruption, and which has reduced the element of irregular and fruitless and wasteful expenditure.

(a) (ii) Proclamation No. R. 59 of 2013 was issued by the President and published in the Gazette on 20 December 2013. The Special Investigating Unit (SIU) issued their Report on the investigation that they conducted in terms of the mentioned Proclamation on 20 August 2014. Emanating from their investigation, the SIU referred:

• evidence that indicated that 12 officials of the Department might be guilty of misconduct to the Director-General of the Department and recommended disciplinary action against them;
• Evidence that indicated possible criminal transgressions in respect of three former acting Directors-General to the relevant Prosecuting Authority and recommended that they be prosecuted. Evidence of an apparent false Tax Clearance Certificate submitted by one of the contactors, was also referred to the Prosecuting Authority;
• Evidence that indicated that Tax Clearance Certificates in respect of 14 of the consultants and contractors were possibly fraudulent or invalid to the South African Revenue Service (SARS).

The SIU has instituted a civil claim against Minenhle Makhanya Architects CC for the damages or losses they have allegedly caused the Department to suffer.

(a)(iii) As indicated above, the SIU made criminal referrals to the relevant Prosecuting Authority.

(b) Regarding the commitments referred to in (a)(i), the status appears from the reply given above in (a)(i). Regarding the disciplinary referrals, one of the employees admitted guilt and was found guilty of misconduct, after plea bargaining. The sanction was two month’s suspension without pay and a final written warning. The disciplinary hearings of the other employees are scheduled to commence in mid-March 2017. One of the employees has since passed on. The Prosecuting Authority declined to prosecute in the matters referred to them. SARS is apparently still considering the matters referred to them.

(c) The commitment referred to in (a)(i) is work in progress. The SIU investigation has been completed. The criminal referrals have been finalised as the Prosecuting Authority declined to prosecute. The delay in finalizing the disciplinary matters was caused by several court processes whereby the media requested permission to be present at the departmental disciplinary hearings. Several appeals were lodged before the media was eventually granted permission to be present at the hearings. The implicated employees appealed that decision, but the court ruled against them at the end of 2016.

Reply:

Having considered the submission received from the National Director of Public Prosecutions, I decided not to suspend the National Director (and his two colleagues) and also not to hold an inquiry into his fitness to hold office.