Questions and Replies

Reply:

(1) (a) Since April 2016, the Department of Small Business Development (DSBD) programme in partnership with Department of Cooperative Governance and Traditional Affairs (CoGTA) and the South African Local Government Association (SALGA), begun the process of assessing the implementation of the Red Tape Reduction (RTR) guidelines by municipalities. This process is also supported by the International Labour Organisation (ILO). The assessment is based on reducing the regulatory and administrative burdens as experienced by small, micro and medium enterprises (SMMEs) and Co-operatives within the different municipalities. The assessment is based on the following seven indicators and associated legislation/regulations:

(i) Effectiveness of the complaints notification system as governed by the Municipal Systems Act;

(ii) Communication of relevant business information by municipalities to SMMEs and Co-operatives as governed by the Promotion of Access to Information Act;

(iii) Municipal building plan approval processes as governed by the National Building Standards Act, Spatial Planning and Land Use Management Act as well as Municipal Services Charter;

(iv) Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system). Relevant legislation would be PPPFA, MFMA and Preferential Procurement Regulations;

(v) Municipal business registration and permits relevant legislation includes: Business Act, National Health Act, National Building Regulations and Building Standards Act including various by-laws those which are relevant to the business licensing process e.g. municipal by-law on food or tourism regulations;

(vi) Development and enforcement of municipal by-laws that promote business development, some of the relevant legislation include the Municipal Systems Act and Local Government Transition Act;

(vi) Assessment of percentage spent in procurement on SMMEs and Co-operatives aligned to the PPPFA and MFMA and preferential procurement regulations.

(b) In terms of UMzimkhulu Local Municipality the total number of unnecessary (i) policies, (ii) by-laws, and (iii) regulations including associated administrative burdens considered for review regarding red tape reduction as guided by the above mentioned indicators and associated legislation/regulations are as follows: the turnaround times for invoice payments to SMMEs and Co-operatives, informal traders by-laws, turnaround times regarding availability and accessibility of land.

(c) The total amount of administration costs is determined by each municipality, however the examples mentioned under point (2) outline how the red tape reduction intervention by DSBD has supported the municipality. The total value of these administrative interventions have not been calculated by the municipality.

(2) The examples that outline improvement since April 2016 are as follows (i) the municipality has managed to develop an effective supply chain management process is now able to pay all outstanding invoices twice in a month. Every year, during the first quarter, a six month payment schedule is circulated from the Finance Department to all officials indicating the dates when invoices will be paid. (ii) the municipality has also reviewed Informal Traders Policy that are actively implemented and sets out all the requirements with respect to the business permit application process and procedures. The workshops to create awareness are also held. (iii) With the introduction of Spatial Land Use Management Act (SPLUMA) the municipality has made it easier for SMMEs and Co-operatives to access the available land for business usage in the area.

Reply:

(1) (a) Since April 2016, the Department of Small Business Development (DSBD) programme in partnership with Department of Cooperative Governance and Traditional Affairs (CoGTA) and the South African Local Government Association (SALGA), begun the process of assessing the implementation of the Red Tape Reduction (RTR) guidelines by municipalities. This process is also supported by the International Labour Organisation (ILO). The assessment is based on reducing the regulatory and administrative burdens as experienced by small, micro and medium enterprises (SMMEs) and Co-operatives within the different municipalities. The assessment is based on the following seven indicators and associated legislation/regulations:

(i) Effectiveness of the complaints notification system as governed by the Municipal Systems Act;

(ii) Communication of relevant business information by municipalities to SMMEs and Co-operatives as governed by the Promotion of Access to Information Act;

(iii) Municipal building plan approval processes as governed by the National Building Standards Act, Spatial Planning and Land Use Management Act as well as Municipal Services Charter;

(iv) Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system). Relevant legislation would be PPPFA, MFMA and Preferential Procurement Regulations;

(v) Municipal business registration and permits relevant legislation includes: Business Act, National Health Act, National Building Regulations and Building Standards Act including various by-laws those which are relevant to the business licensing process e.g. municipal by-law on food or tourism regulations;

(vi) Development and enforcement of municipal by-laws that promote business development, some of the relevant legislation include the Municipal Systems Act and Local Government Transition Act;

(vii) Assessment of percentage spent in procurement on SMMEs and Co-operatives aligned to the PPPFA and MFMA and preferential procurement regulations.

(b) In terms of Moses Kotane Local Municipality the total number of unnecessary (i) policies, (ii) by-laws, and (iii) regulations including associated administrative burdens considered for review regarding red tape reduction as guided by the above mentioned indicators and associated legislation/regulations are as follows: ineffectively and inefficiency channels to communicate relevant information to business people, supply chain management system and by-laws.

(c) The total amount of administration costs is determined by each municipality, however the examples mentioned under point (2) outline how the red tape reduction intervention by DSBD has supported the municipality. The total value of these administrative interventions have not been calculated by the municipality.

(2) The examples outline improvement since April 2016 are as follows (i) the municipality has hired additional staff in order to pay creditors on time and upgraded their financial software to fasten the processing of invoices as per National Treasury regulation. (ii) informal business by-laws has also been reviewed in order to address the business permits issuing.(iii) the municipality has developed the communication policy which entails the method of communication to externally stakeholders, the complaint process is aligned with number of hours. The Seda hotline also assist with unresolved issues that affect the non-payment of SMMEs and Co-operatives in the area.

Reply:

(1)(a)(i) I have issued a directive in terms of Section 41 (1) (a) (ii) of the Water Services Act and Section 73 (1) (d) to Sedibeng Water to carry over the operation and maintenance within the Ngaka Modiri Molema District Municipality (DM). At the moment, all local municipalities under the Ngaka Modiri Molema DM receive support from Sedibeng Water Board as the Water Service Provider. My Department has also appointed Sedibeng Water Board as the Implementing Agent for implementation of the Regional Bulk Infrastructure Programme and Water Services Infrastructure Programme in support of the provision of water and sanitation service delivery with a budget of R780 Million over the MTEF period.

(1)(a)(ii) My Department has allocated funding to the tune of R1,244 billion under Regional Bulk Infrastructure Programme and the total amount of R 77 million through the Water Services Infrastructure Programme in support of the provision of water and sanitation service delivery in Dr Ruth Segomotsi Mompati DM over the MTEF period.

(1)(b) My Department has also appointed Dr Ruth Segomotsi Mompati DM as the Implementing Agent and therefore will be responsible for the implementation of the latter support.

(1)(c) The work is envisaged to commerce in June 2017.

(2)(a)(i) During the financial year 2016/17, my Department through the National Water Resources Infrastructure (Construction West Unit) has rehabilitated the portion of the Wentzel Dam on the foundation for stabilization, fitting of the piece of a steel pipe and couplings to ease the maintenance. This work has already reduced loss of water through redundant structures and leaking valves. Since the dam is currently at full capacity, immediately when the dam level is low, my Department will resume with the removal of the silt in order to increase its capacity .The construction of the bulk pipeline from Bloemhof to augment the water supply in Schweizer Reneke will also commence in 2018 with the intention to complete the project within a year .The project cost on the pipeline is R222 million which will also bring relief to Wentzel Dam.

(2)(a)(ii) In the current financial year 2017/18, my Department has allocated R14 Million under Water Services Infrastructure Grant (WSIG) for the refurbishment of the Water Treatment Works and for the implementation of the Water Conservation and Water Demand Management programme in Schweitzer-Reneke.

(2)(b)(i) The project for the refurbishment of the Water Treatment Works and for the implementation of the Water Conservation and Water Demand Management programme in Schweitzer-Reneke is anticipated to be completed by end of June 2018.

(2)(b)(ii) The Dr Ruth Segomotsi Mompati as the Water Services Authority and as the Implementing Agent will be responsible for the implementation of this project.

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Reply:

1. The Gazelles programme approved 200 enterprises to be supported. Out of this number 40 of the enterprises were selected as the premier enterprise to be put under the acceleration strategies and the remaining 160 enterprises are integrated into the Small Enterprise Development Agency (seda) network support system.

TOP 40

(a) Progress from the National Gazelles Programme

1. The Top 40 cohort is showing average growth in turnover of 11% month on month.
2. Refer to (i) above.
3. Profitability fluctuates between 16% and 43% month on month. The reason for the huge fluctuation in profitability is mainly attributed to companies in the construction sector (short term contracts are more profitable than long term contracts).
4. Staff levels have increased by 4% over the 9 months to December 2016.
5. Points (i), (iii) and (iv) reflects the achievements.

(b) Drop-out rate from the programme

     (i) No business failure to date. One company was sold during the reporting period.

60 GROUP

(a) Progress from the National Gazelles Programme

A survey was conducted on the 160 group and the results are as follows:

1. 71 % of business increased their performance by 15%.
2. 43 % of businesses improved their cashflow by 15%. The turnover for the 160 gazelles is not measured yet since their programme exit is April 2017. Once the exit process is concluded the measure for impact on these variables including employees will be done.
3. As a result of the 71 % increase in performance by businesses, this resulted in R51m increase in combined business value.
4. Refer to (ii) above.
5. 65% of businesses increased their growth potential by 15%.

It should be noted that it is difficult to measure the effectiveness of high growth programmes over a short period of time. The experience from both the Organisation for Economic Co-operation and Development (OECD) and Developing Countries, shows that these programmes are measured over a 3 -5 year period. The first Gazelles Grants were paid in December 2016 and the impact of these grants hasn’t been felt yet by the entities.

(b) Drop-out rate from the programme

(i) No business failure to date.

2. The names and business profiles of the Top 40 and the 160 Group are attached as Annexure A and B respectively.

Reply:

(1)(a) Since 1 March 2017, 31 Cubans are still in the employ of my Department. 1 Cuban specialist resigned in April 2016 and the other 3 did not renew their contracts when they expired at the end of February 2017.

(1)(b) Their contracts will expire on 21 December 2017 but I have approved that their contracts should be extended up to 30 June 2018.

(2) My Department has not employed any additional Cuban specialists.

(3) The current costs for the financial year under review (2016/17) of contracting the engineers in terms of the line items requested are as follows:

	Items	Cost
(3)(a)	Salaries	R 19 132 905.00
(3)(b)	Accommodation	R 6 414 355.00
(3)(c)	Transport Cost	R 5 164 250.00
(3)(d)	Other Expenses (Cell phones, 3Gs and S&T claims)	R 447 080.00
	TOTAL	R 31 158 590

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Reply:

The responsibility of training programmes for municipalities is of the Department of Cooperative Governace and Traditional Affairs (CoGTA) and not of my Department. However my Department as a custodian of water resources and a sector leader has a significant role to play in supporting local government to fulfill this obligation. In this regard, my Department supported Water Services Authorities (WSAs) in developing the training programme for municipal operators of water and waste water treatment works.

My Department has conducted training needs assessments of water and waste water process controllers with the aim of identifying training gaps and ultimately assisted the Water Services Authorities (WSAs) to submit the funding proposals to the Local Government Sector Education Training Authority (LGSETA).

The programme will be implemented in the following 11 WSAs:

• Eastern Cape: Alfred Nzo District Municipality and Amathole District Municipality.
• Limpopo: Capricorn District Municipality and Polokwane Local Municipality.
• North West: Dr Ruth Segomotsi Mompati District Municipality, Madibeng Local Municipality, Moses Kotane Local Municipality, Moretele Local Municipality, Ventersdorp Local Municipality, Kgetlengrivier Local Municipality and City of Matlosana Local Municipality.

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Reply:

(1) (a) Since April 2016, the Department of Small Business Development (DSBD) programme in partnership with Department of Cooperative Governance and Traditional Affairs (CoGTA) and the South African Local Government Association (SALGA), begun the process of assessing the implementation of the Red Tape Reduction (RTR) guidelines by municipalities. This process is also supported by the International Labour Organisation (ILO). The assessment is based on reducing the regulatory and administrative burdens as experienced by small, micro and medium enterprises (SMMEs) and Co-operatives within the different municipalities. The assessment is based on the following seven indicators and associated legislation/regulations:

(i) Effectiveness of the complaints notification system as governed by the Municipal Systems Act;

(ii) Communication of relevant business information by municipalities to SMMEs and Co-operatives as governed by the Promotion of Access to Information Act;

(iii) Municipal building plan approval processes as governed by the National Building Standards Act, Spatial Planning and Land Use Management Act as well as Municipal Services Charter;

(iv) Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system). Relevant legislation would be PPPFA, MFMA and Preferential Procurement Regulations;

(v) Municipal business registration and permits relevant legislation includes: Business Act, National Health Act, National Building Regulations and Building Standards Act including various by-laws those which are relevant to the business licensing process e.g. municipal by-law on food or tourism regulations;

(vi) Development and enforcement of municipal by-laws that promote business development, some of the relevant legislation include the Municipal Systems Act and Local Government Transition Act;

(vii) Assessment of percentage spent in procurement on SMMEs and Co-operatives aligned to the PPPFA and MFMA and preferential procurement regulations.

(b) In terms of Ephraim Mogale Local Municipality the total number of unnecessary (i) policies, (ii) by-laws, and (iii) regulations including associated administrative burdens considered for review regarding red tape reduction as guided by the above mentioned indicators and associated legislation/regulations are as follows: (i) the reviewing of the informal sector by-laws: (ii) the non-payment of invoices within 30 days as per national treasury regulation 8.2.3, and (iii) reviewing of the building plan approval process .

(c) The total amount of administration costs is determined by each municipality, however the examples mentioned under point (2) outline how the red tape reduction intervention by DSBD has supported the municipality. The total value of these administrative interventions have not been calculated by the municipality.

(2) The examples that outline improvement since April 2016 are as follows (i) the municipality has been able to review informal sector by-laws approved by Council which among others” includes the processes and procedures for the establishment of hawkers and informal traders associations in the area. The informal traders associations will assist the municipality to have an accurate database on the numbers of hawkers in the area and also for the development of target driven programmes for business development and to support hawkers towards formalisation. (ii) The delegation of powers has been amended to allow divisional managers to authorise payments in order to fast track the processing of invoices to SMMEs and Co-operatives within 30 days or less.(iii) the building plans of less than 500 square meters are now assessed within 10 days of receipt.

Reply:

1. (a) The Memorandum of Understanding (MoU) will be signed as soon as the Department of Energy has completed the vetting process. It is anticipated that implementation will happen shortly after the MoU has been signed by both parties.

(b) The programme will benefit 200 small, micro and medium enterprises (SMMEs) and Cooperatives.

(c) The programme will utilise the existing pool of SMMEs and Cooperatives in the Department and its agencies databases. It is proposed that 70% of opportunities will be given to existing and experienced SMMEs, while 30% of opportunities will be afforded to start-up small enterprises.

(d) The estimated numbers are approximately 5000 jobs per SMME amongst which target groupings would include semi-skilled personnel (informal plumbers, artisans, etc) and qualified personnel from Technical and Vocational Education Training (TVET) colleges.

2. According to the Department of Energy (DoE), the last installation took place on 30 June 2015. Up to 30 June 2015, the DoE reported approximately 422 429 Solar Water Heater installations nationally. Since 1 April 2016, no installations have been recorded.

3. The programme will reduce energy consumption by about 55GWh per month which would potentially displace the use of expensive diesel by 12% every month.

Reply:

1. An order for the first and second respondents to vacate the property on or before 01 February 2015 was granted by the Judge on 01 August 2014.
2. No judgement was handed down in the matter. The record is available at the court.

 

Reply:

(1) (a) Since April 2016, the Department of Small Business Development (DSBD) programme in partnership with Department of Cooperative Governance and Traditional Affairs (CoGTA) and the South African Local Government Association (SALGA), begun the process of assessing the implementation of the Red Tape Reduction (RTR) guidelines by municipalities. This process is also supported by the International Labour Organisation (ILO). The assessment is based on reducing the regulatory and administrative burdens as experienced by small, micro and medium enterprises (SMMEs) and Co-operatives within the different municipalities. The assessment is based on the following seven indicators and associated legislation/regulations:

(i) Effectiveness of the complaints notification system as governed by the Municipal Systems Act;

(ii) Communication of relevant business information by municipalities to SMMEs and Co-operatives as governed by the Promotion of Access to Information Act;

(iii) Municipal building plan approval processes as governed by the National Building Standards Act, Spatial Planning and Land Use Management Act as well as Municipal Services Charter;

(iv) Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system). Relevant legislation would be PPPFA, MFMA and Preferential Procurement Regulations;

(v) Municipal business registration and permits relevant legislation includes: Business Act, National Health Act, National Building Regulations and Building Standards Act including various by-laws those which are relevant to the business licensing process e.g. municipal by-law on food or tourism regulations;

(vi) Development and enforcement of municipal by-laws that promote business development, some of the relevant legislation include the Municipal Systems Act and Local Government Transition Act;

(vii) Assessment of percentage spent in procurement on SMMEs and Co-operatives aligned to the PPPFA and MFMA and preferential procurement regulations.

(b) In terms of Greater Kokstad Local Municipality the total number of unnecessary (i) policies, (ii) by-laws, and (iii) regulations including associated administrative burdens considered for review regarding red tape reduction as guided by the above mentioned indicators and associated legislation/regulations are as follows: the municipality have an inadequate customer complaints system, cumbersome decision making process which affect the delivery time frame, the business permits issuing process has not been reviewed for past 3 years.

(c) The total amount of administration costs is determined by each municipality, however the examples mentioned under point (2) outline how the red tape reduction intervention by DSBD has supported the municipality. The total value of these administrative interventions have not been calculated by the municipality.

(2) The examples that can be referred to since April 2016 are as follows (i) the municipality has managed to develop an effective complaints management system and customer service policy, the monthly management reports are submitted to the Council on the nature of the complaints lodged, and the resolution of complaints. (ii) the municipality has reviewed the delegation of powers where applicable in order to address the decision making process(iii) the business permit issuing has been reviewed which assisted the municipality to process application within 21 days if all accompanying documents received on time.

Reply:

Requesting the Honorable Member to refer to the response provided in NA 579 of 10 March 2017.

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Reply:

The response is attached below.

NO	South African Nuclear Energy Corporation (NECSA	National Energy Regulator of South Africa (NERSA)	National Radioactive Waste Disposal Institute (NRWDI)	National Nuclear Regulator (NNR)	South African National Energy Development Institute (SANEDI
(a) (b) (c) 1 (i) 1(ii) (ii)	There are no vacant positions within NECSA. Not applicable. Not applicable	There is a vacant position of the Chief Financial Officer. The position has been vacant for a period of 5 months. The CFO position became vacant due to resignation. NERSA was awaiting the appointment of its CEO who assumed duty on 1 January 2017. The CFO position reports to the CEO hence the rationale to await the appointment of the CEO first.	There are no vacancies in the positions in question. Not applicable Not applicable	There are no vacancies in the positions in question. The institution does not have a position for a COO Not applicable Not applicable	The current CEO is on a month-to-month contract with effect from 1 April 2017. SANEDI does not have a position for a COO. The position has been vacant From 1 April 2017. The term of office for the CEO expired on 31 March 2017.
2	Not applicable.	Yes, the position was advertised and interviews were held on 8 March 2017. The psychometric assessments were completed on 30 March 2017. We anticipate the vacancy to be filled by 1 June 2017 at the latest	Not applicable as indicated above	Not applicable as indicated above	The board is in the process of filling the vacancy an advert for the position has not yet been issued.
3	Not applicable.	Mr. Nthupeni Ragimana is the Acting CFO. He has been acting for five (5) months in this position. (c) No. Mr. Ragimana did not apply for the CFO position.	Not applicable as indicated above	Not applicable as indicated above	Mr Nassip is the acting CEO and will be on a month-to-month contract effective from 01 April 2017.

NO	Central Energy Fund Group	PetroSA	Petroleum Agency of South Africa	Strategic Fuel Fund
1(a) (b) (c) 1 (i) 1(ii) (ii)	(a) (i) (ii) The position of the CEO has been vacant for 2 years. The previous incumbent resigned effective from December 2014. (b) (i) (ii) The position for CFO has been vacant for the past 4 months. The previous incumbent resigned effective from November 2016.	(i) (ii) The position for CEO is vacant and has been vacant for 1 year, 4 months as the previous incumbent resigned effective from November 2015. (b) (i) (ii) The position for CFO is vacant and has been vacant for 1 year, 4 months as the previous incumbent’s service was terminated by mutual agreement in 2015. (c) (i) (ii) The position for COO is vacant and has been vacant for the past 3 years. The previous incumbent resigned in 2014.	Yes. The position of CEO is vacant. The position has been vacant for 5 years The term of office for the previous CEO came to an ended.	The position for CEO is currently vacant. The position has been vacant for 1 year 10 months. The previous incumbent resigned effective from August 2015.
2	The vacancies of CEO and CFO were both advertised on 22 November 2016. (a) Interviews for the vacancy of CEO were done on the 27 March 2017 and 28 March 2017. Interviews for the position of CFO were held on 2 March 2017. (b) It is anticipated the position of CEO will be filled by 1 June 2017. The position of CFO was filled with effect from 01 April 2017.	a) The roles of the CEO and CFO was advertised and assigned to Executives Search companies to conduct a headhunting process on behalf of the company. The COO position will not be filled as it has been removed from the structure after approval of the new structure by the Board. (b) It is anticipated that this process (including interviews and required psychometric assessments) will be completed by the end of April 2017, when a recommendation will be made to the Board and Shareholder for appointment	The position for CEO was advertised but no interviews were held pending the finalisation to move PASA from the Department of Energy to the Department of Mineral Resources as envisaged in the MPRDA amendment bill.	The recruitment process commenced in February 2016. The recruitment process was placed on hold pending the CEF Group business model review. The acting CEF Group CEO is also managing the SFF role.
3	(a) 1 person. Mr. Mojalefa Moagi is currently the CEF CEO. 1 person. Mr. Lufuno Makhuba was appointed the Acting CFO. (b) Mr. Moagi has been acting CEO since July 2016 to date. Mr. Makhuba acted as the CFO from January 2016 – 31 March 2017. (c) Mr. Moagi has applied for the position of CEO and was interviewed on 28 March 2017.   Mr. Makhuba applied for the position of CFO and was successfully appointed as the CEF Group CFO effective 01 April 2017.	(a) 2 people. (b) The CEO has been acting from the 01 December 2016 to date and the CFO has been acting from 01 March 2016 to date, following the resignation of Ms. Lindiwe Bakoro on the 30 November 2015. (c) The recruitment for both CEO and CFO are currently managed by Executive Search Company. No internal candidates, including acting incumbents expressed interest in the roles when they were advertised previously.	Ms. Mekwe has been acting in the position since 22 October 2013 to date. (c) She has not applied for the position.	1 person. Mr. Mojalefa Moagi is the acting CEO of SFF. (b) He has been acting from the 16 September 2016, following the resignation of Mr. Sibusiso Gamede in July 2016. (c) The recruitment process has been placed on hold.

Reply:

Responses to the questions for each State Owned Company (SOC) within the DPE portfolio are recorded separately below as follows:

Alexkor

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

The Company has vacancies for the positions of Chief Executive Officer (CEO) and Chief Financial Officer (CFO). The position of Chief Operating Officer (COO) is not vacant. The CEO position has been vacant since 1 April 2016 with Mr Vimal Bansi appointed through an interim contract until the position is filled. The position of CEO became vacant after a restructuring process that was completed on 31 March 2016. The CFO position became vacant on 10 October 2016 and Ms Tsundzukani Mhlanga has been acting since. The position of CFO became vacant as a result of the resignation by the previous incumbent.

2. (a)(b)

Both positions were advertised on 15 January 2017. The interview and selection process for both positions has commenced and it is anticipated that the process will be finalised in the first quarter of the current financial year.

3(a)(b)(c)

As stated above, there are two people appointed to act in each position separately. The Acting CEO has been in place for a year, while the acting CFO for the past 6 months. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

Denel

(1)(a)(b)(c)(i)(ii)

The Company has vacancies for the positions of Group Chief Executive Officer (GCEO) and Group Chief Financial Officer (GCFO). The position of Chief Operating Officer (COO) is not vacant. The position of the GCEO became vacant on 9 November 2016 and Mr Z Ntshepe has been acting in the position since. The position of GCFO became vacant on 1 September 2016 and Mr O Mhlwana has been acting in the position since. Both positions became vacant as result of separation agreements with the previous incumbents.

(2)(a)(b)

The vacant positions have been advertised and it envisaged that these vacancies will be filled by the end of May 2017.

3(a)(b)(c)

As indicated above, there are two Executives acting in the positions of GCEO and GCFO, separately. Both acting incumbents have been acting for 1 year and 6 months, respectively. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

Eskom

(1)(a)(b)(c)(i)(ii)

The company has a vacancy for the position of Group Chief Executive Officer (GCEO). The Group Chief Financial Officer (GCFO) is Mr Anoj Singh. The Company does not have a position of Chief Operating Officer (COO) in its structure. Due to the resignation of the previous incumbent, the position of GCEO became vacant on 1 January 2017 and Mr Matshela Koko has been acting in the position since.

(2)(a)(b)

The advertisement for the position of GCEO was published on 5 March 2017 and the recruitment process is underway with the intent that the process will be finalised before the end of May 2017.

3(a)(b)(c)

As indicated above one Executive is acting in the position of GCEO. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

SA Express

(1)(a)(b)(c)(i)(ii)

The Company only has vacant position of a CEO. The position of CFO is held by Mr Mark Shelley and the organisational structure of SA Express does not have a COO. The position of the CEO has been vacant from 1 April 2017 as a result of the resignation by the previous incumbent.

(2)(a)(b)

Mr Victor Xaba has been appointed to act in the position of CEO. Now that the position is vacant I am taking cognisance of the announcement by the Minister of Finance in the National Budget on 22 February 2017 that Advisors are assisting government with a review of the state’s aviation assets with the goal of developing a stronger, more efficient and sustainable state aviation sector. The possibility of consolidation of SAA with SA Express, and introducing a strategic equity partner, will be considered. In light of these developments I am of the view that the position of CEO of SA Express will not be advertised pending finalisation of the government process.

3(a)(b)(c)

One person is acting in the position of CEO and it is envisaged that the recruitment process will be held in abeyance until the government process mentioned above is finalised.

SAFCOL

(1)(a)(b)(c)(i)(ii)

The Company has vacancies of Chief Executive Officer (CEO) and Chief Operating Officer (COO). Ms Trish Pillay is the Chief Financial Officer (CFO); hence the position is not vacant. The position of CEO has been vacant since 15 December 2015 and the position of COO has been vacant since 18 February 2016. Both positions became vacant as result of resignation by the previous incumbents.

(2)(a)(b)

The CEO position will be advertised by the end April 2017, whereas the COO position was advertised on 15 February 2016. As part of the CEO recruitment plan, it is anticipated that interviews with potential candidates will be held during May and June 2017. Applicants were initially interviewed for the COO vacancy but no suitable candidate was found. SAFCOL is taking further steps in the recruitment process to identify suitable candidates. It is anticipated that the CEO vacancy will be filled by July 2017 and COO vacancy will be filled by June 2017.

3(a)(b)(c)

There are two Executives acting in the positions of GCEO and GCFO, separately. The acting CEO, Mr Harvey Theron has been acting in this position since 16 December 2015 to date and Mr Klaas Makobane has been acting COO from 19 February 2016 to date. Given that the recruitment processes are still underway, it is against good labour practice to disclose the details of any applicant at this stage.

Transnet

(1)(a)(b)(c)(i)(ii)

Transnet does not have vacancies in these positions. The Group Chief Executive is Mr Siyabonga Gama, the Group Chief Financial Officer is Mr Garry Pita and Group Chief Operations Officer is Mr Mlamuli Buthelezi

(2)(a)(b)

Not applicable

3(a)(b)(c)

Not applicable

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

Reply:

The matter was enrolled in the Motion roll and heard on the 28 March 2017.

a) The draft order filed by the applicant and agreed to by all parties, was granted by the judge and was made an order of court.

b) There is no judgement handed down in the matter. The order of the court was issued by the judge and provided to the parties on the 28 March 2017.

 

Reply:

No, the assessment is still in progress and will be completed in May 2017. Once the assessment report is finalised, a full copy will be submitted.

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Reply:

(1) (a) Since April 2016, the Department of Small Business Development (DSBD) programme in partnership with Department of Cooperative Governance and Traditional Affairs (CoGTA) and the South African Local Government Association (SALGA), begun the process of assessing the implementation of the Red Tape Reduction (RTR) guidelines by municipalities. This process is also supported by the International Labour Organisation (ILO). The assessment is based on reducing the regulatory and administrative burdens as experienced by small, micro and medium enterprises (SMMEs) and Co-operatives within the different municipalities. The assessment is based on the following seven indicators and associated legislation/regulations:

(i) Effectiveness of the complaints notification system as governed by the Municipal Systems Act;

(ii) Communication of relevant business information by municipalities to SMMEs and Co-operatives as governed by the Promotion of Access to Information Act;

(iii) Municipal building plan approval processes as governed by the National Building Standards Act, Spatial Planning and Land Use Management Act as well as Municipal Services Charter;

(iv) Lengthy and inefficient supply chain management processes (which ultimately affects the 30-day payment system). Relevant legislation would be PPPFA, MFMA and Preferential Procurement Regulations;

(v) Municipal business registration and permits relevant legislation includes: Business Act, National Health Act, National Building Regulations and Building Standards Act including various by-laws those which are relevant to the business licensing process e.g. municipal by-law on food or tourism regulations;

(vi) Development and enforcement of municipal by-laws that promote business development, some of the relevant legislation include the Municipal Systems Act and Local Government Transition Act;

(vii) Assessment of percentage spent in procurement on SMMEs and Co-operatives aligned to the PPPFA and MFMA and preferential procurement regulations.

(b) In terms of Elias Motsoaledi Local Municipality the total number of unnecessary (i) policies, (ii) by-laws, and (iii) regulations including associated administrative burdens considered for review regarding red tape reduction as guided by the above mentioned indicators and associated legislation/regulations; (i) the building plans approvals processes has been developed and land use by-laws has also been reviewed which aligned with both the National Building Regulations and building Standard Act and Spatial Land Use Management Act).(ii) Additional staff was allocated within supply chain unit on contract basis. (iii) Poor communication of relevant business information to SMMEs and Co-operatives.

(c) The total amount of administration costs is determined by each municipality, however the examples mentioned under point (2) outline how the red tape reduction intervention by DSBD has supported the municipality. The total value of these administrative interventions have not been calculated by the municipality.

(2) The examples that outline improvement since April 2016 are as follows (i) the municipality has reviewed the building regulation and land use by-laws which positively contributed to commercial land being accessible for local SMMEs and Co-operatives and also to fast track building plan approvals for small businesses and co-operatives.(ii) The additional staff which were previously employed on contract basis, they are now placed permanent within the finance unit which assisted the municipality to pay creditors twice in the month. (iii) The municipality pay its creditors twice in the month including SMMEs and Co-operatives in order to comply with 30 days payment policy.

Reply:

1. See the link: https://pmg.org.za/files/RNW885PRE-170418.docx
 

(2) The local government equitable share allocation for LIM368 for 2016/17 in the 2016 Division of Revenue Act was R92.5 million. In the 2017 Division of Revenue Bill the allocation to LIM368 is R93.4 million; and the indicative allocations for 2018/19 and 2019/20 are R100.8 million and R107.3 million respectively.

(3)(a) The Explanatory Memorandum to the Division of Revenue (available at www.treasury.gov.za and printed in the 2017 Division of Revenue Bill) sets out in detail how the local government equitable share allocations are calculated.

The Local Government Equitable Share (LGES) mainly funds free basic services for poor households in each municipality. For the purposes of the LGES formula, a poor household is defined as a household with an income less than the value of two state old age pensions. The number of poor households used in the LGES formula is based on the 2011 Census but is updated each year based on estimated household growth. The LGES also includes allocations for the institutional costs of municipalities and to subsidise other community services. Funds for community services and institutional costs are only allocated to municipalities with less ability to fund these costs from their own revenues.

The household numbers used to allocate the LGES since 2016 reflect the new municipal boundaries. The changes to municipal boundaries resulted in some significant changes to municipal allocations in 2016/17. To cushion the impact of these changes, all municipalities received at least 95 per cent of the equitable share formula allocation indicatively allocated to them in 2016/17 in the 2015 Division of Revenue Act. For merged municipalities, this guarantee was based on the sum of the equitable share allocations to the previously separate municipalities.

Additional funding was also allocated to the newly formed municipalities to support them with the costs of implementing the new demarcations. LIM368 was allocated R13.4 million in 2016/17 through the Municipal Demarcation Transition Grant. In 2017/18 the municipality is allocated R4.6 million through this grant.

(3)(b) The dates on which the local government equitable share is transferred to each municipality are prescribed in section 5(3) of the annual Division of Revenue Act. In 2016, local government equitable share transfers took place on 4 July 2016, 31 August 2016, 1 December 2016 and 17 March 2017. The 31 August 2016 transfer was made in terms of section 38 of the 2016 Division of Revenue Act which allowed for an additional transfer date for re-demarcated municipalities.

Reply:

a) The Office of the Chief Procurement Officer (OCPO) has an approved structure of 141 positions. Only 93 posts are funded. As at 31 March 2017, there are 91 permanent staff appointed on the OCPO establishment of which 28 are senior managers. (The said numbers do not reflect terminations, transfers or retirements from the department for the period 1 April 2013 to date.) Currently, the office component is 93, with 91 permanent and 2 contract employees.

(i) Since the inception of the OCPO on 1 April 2013, 47 appointments were made and 95 were absorbed from the establishment of the Specialist Function Division which was previously responsible for Supply Chain Management in the National Treasury.

(ii) No permanent employees are allocated to the OCPO call centre. The Black Business Council in the Built Environment (BBCBE) is funding thirteen (13) resources for queries on 30 day payments and ten (10) resources for the Central Supplier Database (CSD) funded by the South African Local Government Association (SALGA), for a period ending 31 March 2017. Call centres for CSD are also available at the Provincial Treasuries and the number of personnel are allocated as follows:

• Eastern Cape Provincial Treasury: 10 people
• Northern Cape Provincial Treasury: 8 people
• Western Cape Provincial Treasury: 4 people
• Free State Provincial Treasury: 5 people
• Limpopo Provincial Treasury: 18 people
• Gauteng Provincial Treasury: 15 people
• Mpumalanga Provincial Treasury: 7 people
• KwaZulu-Natal Provincial Treasury: 11 people
• North West Provincial Treasury: 6 people

b) The OCPO has only one office based in the National Treasury, Pretoria.

Reply:

1. I am advised that the Workers Association Union (WAU) has since been deregistered

2. Not that I am aware of;

3. Not that I am aware of;

4. Not that I am aware of;

Reply:

1. South Africa National Parks (SANparks)

1.

(a) No

(b) Yes

(c) No

(i) CFO vacant since 1 April 2017

(ii) Resignation

2) Yes

a) No

b) No specific date as the post just been vacated, however, once the advertisement has been closed , short-listing and interviews will follow immediately.

3)

a) One

b) As at 1st April 2017.

c) No

2. South African National Biodiversity Institute (SANBI)

1)

(a) No

(b) No

(c) No

   (i) Not applicable

   (ii) Not applicable

2)

(a) Not applicable

(b) Not applicable

3)

(a) No

(b) No

(c) No

3. iSimangaliso Wetland Park

1)

(a) No

(b) No

(c) No

   (i) Not applicable

   (ii) Not applicable

2)

(a) Not applicable

(b) Not applicable

3)

(a) No

(b) No

(c) No

4. South African Weather Services (SAWS)

1)

(a) Yes

(b) No

(c) Not Applicable

1. 5 Months - while there was an acting senior Manager
2. The board released the former CEO earlier from her contract which was ending March 2017

2)

(a) Yes (October 2016) and Interviews was held in November 2016

(b) Cabinet approved appointment on the 29 March 2017 and the new incumbent will commence duty on the 1st May 2017.

3)

(a) 1

(b) 5 Months

(c) Yes – However, substantive appointment has already been done through Cabinet. A Cabinet announcement has also been done.

---ooOoo---

Reply:

a) The National Development Plan (NDP) identifies various conditions that are necessary for its successful implementation. An enabling condition is to ensure that the Department of Home Affairs can efficiently facilitate the entry and stay of migrants with skills that are scarce and critical for economic growth.

In the chapter under Research and Development (R&D), the NDP places a responsibility on the Department to retain students from abroad who graduate from South African universities with a seven-year work permit to encourage them to stay and work here. While the Immigration Act 13 of 2002 in its current form does not allow for a work visa that exceeds 5 years, the Minister of Home Affairs issued a Directive in 2016 which allowed students who graduate in any of the fields listed in the Critical Skills List to apply for Permanent Residence.

Students who graduate and obtain their PHD at South African universities are also eligible for permanent residence on condition that there is no obligation attached to their studies which requires them to return to their country of origin.

b) Chapter 3 of the NDP on “Economy and Employment” lists a number of actions that should be taken in order to achieve the objectives of the NDP. Action 10 requires the country to “Adopt a more open immigration approach to expand supply of high-level skills” and Chapter 9, Action 67 requires that the country should “Relax immigration requirements for highly skilled science and mathematics teachers, technicians and researchers”.

Concerning implementation, it should be noted that the Department is already in the process of reviewing its Immigration Policy. To this end the Department has submitted its Draft White Paper on International Migration to Cabinet for approval before 31 March 2017. This revised policy framework makes provision for attraction of skilled migrants.

Applications for critical skills work visas are being processed within an accelerated turnaround of 4 weeks from date of application to issuance. In the 2015/16 financial year, 84.7% of critical skills applications were finalised within 4 days to 4 weeks. This represents half the time required for all other categories of temporary residence visas (8 weeks).

Critically skilled migrants are also allowed to sojourn in South Africa for a period of 12 months prior to securing employment in order to determine whether they will be interested in working and staying in the Republic on a longer term.

Reply:

1. (a) No

(b) No

(c) No

   (i) Not vacant

   (ii) Not vacant

2. (a) No vacant position to be advertised

(b) No vacant position to be advertised

3. (a) Not Applicable

(b) Not vacant

(c) Not vacant

Reply:

It is not the duty of the National Treasury to collect any taxes, including fringe benefit tax. In terms of the Income Tax Act 58 of 1962 and the Tax Administration Act 28 of 2011, the South African Revenue Service (SARS) Commissioner is responsible for collecting taxes, including fringe benefit tax.

In terms of section 69 of the Tax Administration Act 28 of 2011, SARS is prohibited from disclosing taxpayer information.

Reply:

a) Vredefort Dome will be proclaimed as soon as consensus is reached with the landowners on critical issues around governance and management models, and in particular the establishment of the Management Authority. Landowners have demanded that proclamation and governance issues be addressed simultaneously. This is despite a previous arrangement that the proclamation of the Site be processed while the resolution of the governance issues is underway; and

b) Government is not delaying the proclamation of the site as a heritage site. As indicated above, the differences in governance modalities need to be resolved with the landowners associations prior to the proclamation being effected. The Department of Environmental Affairs (DEA) has made efforts to create the space for these to be addressed. However, the declarations of dispute by the landowners contribute to the slow pace in finalising the proclamation process. Failure to address these issues may lead to the undesirable withdrawal of the site from the UNESCO.

---ooOoo---

Reply:

1. The Small and Medium-sized Enterprises Fund was started by business and is driven through the CEO initiative as a show of solidarity and contribution towards growing the economy in a manner that creates more business and work opportunities for the people of South Africa. Government fully supports the initiative. While no “new money” is allocated to this initiative in the 2017 budget, Government is assessing the most appropriate vehicle and means through which to support SMME development, given the fiscally constrained environment.

2. As and when a decision has been made in this regard, government will then follow its process to set aside additional resources to further support SMMEs and announcements will then be made in either the Medium Term Budget Policy Statement or the Budget.

Reply:

The following response was submitted by South African Airways (SAA).

a) SAA did not procure any services from and / or make payments to Mr Mzwanele Manyi. There was no requirement for SAA to procure any services from the identified individual.

b) SAA did not procure any services from and / or make payments to the Progressive Professionals Forum. There was no requirement for SAA to procure any services from the identified organisation.

c) SAA did not procure any services from and / or make payments to the Decolonisation Fund. There was no requirement for SAA to procure any services from the identified organisation.

d) SAA did not procure any services from and / or make payments to the Black Business Council. There was no requirement for SAA to procure any services from the identified organisation.

(i) – (vi) Not applicable.

Reply:

Minister’s Responses in Matrix;

	1) Whether there is any position of (a) chief executive officer, (b) chief financial officer and/or (c) chief operating officer that is currently vacant in each entity.
ENTITIES REPORTING TO THE MINISTER	(a) – CEO.	(1)(b) – CFO.	(1)(c) – COO.
NEDLAC.	No current vacancy.	No current vacancy	No current vacancy
(1)(i).	N/a.	N/a.	N/a.
(1)(ii).	N/a.	N/a.	N/a.
(2)(a) & (b).	N/a.	N/a.	N/a.
(3) (a), (b) & (c).	N/a.	N/a.	N/a.
CCMA.	No current vacancy.	No current vacancy	No current vacancy
(1)(i).	N/a.	N/a.	N/a.
(1)(ii).	N/a.	N/a.	N/a.
(2)(a) & (b).	N/a.	N/a.	N/a.
(3) (a), (b) & (c).	N/a.	N/a.	N/a.
PRODUCTIVITY SA.	No current vacancy.	No current vacancy.	No current vacancy.
(1)(i).	N/a.	N/a.	N/a.
(1)(ii).	N/a.	N/a.	N/a.
(2)(a).	N/a.	N/a.	N/a.
(2)(b).	N/a.	N/a.	N/a.
(3)(a), (b) & (c).	N/a.	N/a.	N/a.
COMPENSATION FUND.	No current vacancy.	No current vacancy.	Currently vacant.
(1)(i).	N/a.	N/a.	6 months.
(1)(ii).	N/a.	N/a.	Resignation.
(2)(a).	N/a.	N/a.	Advertised & interviews done.
(2)(b).	N/a.	N/a.	01 June 2017.
(3) (a), (b) & (c).	N/a.	N/a.	No acting appointment.
UNEMPLOYMENT INSURANCE FUND.	No current vacancy.	No current vacancy.	Currently vacant.
(1)(i).	N/a.	N/a.	4 months.
(1)(ii).	N/a.	N/a.	Promotion.
(2)(a).	N/a.	N/a.	Advertised & Interviews – 04 May 2017.
(2)(b).	N/a.	N/a.	01 July 2017 – anticipated.
(3)(a).	N/a.	N/a.	01 person acting.
(3)(b).	N/a.	N/a.	04 months.
(3)(c).	N/a.	N/a.	Yes – person acting has applied for this post.

Reply:

In order for progress to be made on this matter various regional blocks within the continent as well as the African Union (AU) are considering the terms of Agenda 2063 to see how the objectives can be realised. Currently various experts on immigration from within the region and continent are discussing the technical aspects and other matters in relation to this. It is envisaged that a harmonised position will eventually be considered at a heads of state summit level.

Reply:

Firstly, the former Minister of Transport, Ms Dipuo Peters met with staff members of PRASA. The staff members shared concerns that emerged from when SARCC became PRASA. The consolidation process of the various passenger rail entities into a single passenger entity, namely PRASA, did not also pay attention to cultivating a specific culture within the new organization. As result, hence the challenges that are now being experienced within PRASA. Secondly, the recruitment process for the Group CEO was compromised through the leaking of information to the public. The former Minister impressed upon the Board Chairperson to consider putting the appointment process on hold in light of the above developments. She emphasised that organisational stability was critical and had to be reached before a new CEO can be appointed. This would enable the incoming new CEO to focus on performance and gearing the organization for delivery.

a) The process to appoint the Group CEO of PRASA was terminated within the context of the above background. The credibility of the recruitment process was compromised.

b) The former Minister together with the Board Chairperson agreed and both took the matter to the Board for discussion and decision making

c) The amount spent on the process was R 1 767 000.00

Reply:

a) SAPO debt which has been long outstanding due to a dispute with SAPO over proof of service. The details are as follows:

a(i) Service provider / Invoice holder	Invoice number	Invoice dates	a(ii) Reason for non-payment	b) Settlement date
South African Post office (SAPO)	19034GS3030 8069862335 8069862334 8069880768 8069889842 8069906437 8069917673 8069906423 8069906421 8069906420 8069906422 15050007 8069949634 8069949636 8069949635 8069977529 8069977533 8069988717 8069988723 8069988722 8069988714 8069988720 8069988721 4060019 4060010 10060010 8070019964 8070019966 10060008 8070039169 8070039168 8070039170 8070039171 19060029 8070055661 8070055662 8070055658 8070055667 8070055663 8070055666 8070055665 8070055664	01/04/2015 – 24/06/2015	Dispute with SAPO over service delivery not within legislated timeframes as required by AARTO regulations	Envisaged end of April 2017

 

(c) (i), (ii), (iii) Internal checks and balances to prove service on a monthly basis. Monthly SAPO service reports between SAPO and RTIA. A new SLA is in place to deal with proof of service mechanisms and how each party responds to instances outside of SAPO’s control.

Reply:

a) The Turnaround Strategy was tabled on 28 &29 November 2016 at a Board Strategy Workshop and it was tabled formally at the Board of Control meeting on the 27th February 2017.

b) The Board supported the Turnaround Strategy and made the following amendments:

    (i) That Management must refine the implementation dates as these were un-realistic.

    (ii) That Management get the assistance of external experts to assist management with the implementation of the Turn Around Strategy

Reply:

a) DAFF was first informed on 19 January 2017 by the ARC Grain Crops Institute through Grain SA that they had collected larvae (caterpillars) that resemble Fall Armyworm.

b) DAFF was informed by the ARC Biosystematics Division on 3 February 2017 of the positive identification of the larvae collected at various areas (which had at that passed through the pupa stage of their lifecycle and emerged as adult moths) that the pest is indeed the Fall Armyworm (FAW) (Spodoptera frugiperda).

c) (i) DAFF received no loss reports from role players, i.e. of losses due to FAW, but FAW was reported by role players to be detected in planted maize of about 11000ha.

(ii) & (iii) No FAW cases have been confirmed in South Africa from Soya or Sugarcane.

Reply:

1. (a)The toll tariffs were adjusted for Consumer Price Inflation (CPI) effective 3 March 2017. The average of the CPI headline year-on-year rates, for the period November 2015 to October 2016, as published by Statistics-SA, was calculated and applied to the previous year’s tariffs for the tariff adjustment. The average CPI as applicable to the adjustment effective 3 March 2017 was 6.0417%.

This CPI adjustment is to retain the real value of the toll tariffs - there is no increase of the tariffs in real terms.

(b) No other criteria were used.

 

(2) The processes to be followed as directed by the South African National Roads Agency Ltd and National Roads Act, No.7 of 1998 were undertaken by SANRAL. The tariffs were calculated and recommended by SANRAL for approval by the Minister and then published in the Gazette for 14 days following signature by the Director General. The Act directs the processes to be followed for the amendment of toll tariffs as follows:

S 27 (2) clarifies that the amendment of toll tariffs “will become effective only 14 days after a notice to that effect by the Agency has been published in the Gazette”.

S 27 (3) (a) specifies that the amendment “is determined by the Minister on the recommendation of the Agency”.

S (3) (c) specifies that the amendment “must be made known by the head of the Department by notice in the Gazette”.

Further, Clause 5.19 of the applicable Gazette no. 40623 of 16 February 2017 states that: “The tariffs and amounts displayed in this notice may be adjusted by a determination of the Minister annually: Provided that such adjustment shall not exceed the Consumer Price Index calculated for the preceding 12 months”.

 

Reply:

1.(a) None. Board fees are determined by the Minister of Transport on consultation with the Minister of Finance.

(b) Not applicable

(c) Not applicable.

2. (a) Not applicable.

(b) Not applicable.

(c) Not applicable.

 

Reply:

For the period 1 April 2016 to 31 March 2017, SANRAL had 10 suppliers being owed R318 810.23 in total, with 127 average outstanding days. The total payments for the same period was R19.8 billion. Therefore the total outstanding was less than 0,002% of the total amount paid.

(a)(i)Service Provider	Invoice Number	Invoice Date	a(ii)Reason for non-payment	(b)Settlement date
Waterkloof Farm	VR146/02-15/16A	17/02/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
AL Te Ver Trust	VR404/10-16/17A	10/10/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
M Dzutsu	VR518/12-16/17Q	06/12/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
Ultimate Consumable (Pty) Ltd	INV282312	02/03/2017	Awaiting for the statement before payment is made	Will be done before 14 April 2017
Locksmith	201301535	01/11/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided

(a)(i)Service Provider	Invoice Number	Invoice Date	a(ii)Reason for non-payment	(b)Settlement date
Ethekwini Municipality	883377330019Dec 03608009769Oct	13/12/2016 22/10/25016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
University of Stellenbosch	282585	06/05/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
Express Employment	20160407	04/07/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
Modern Frames	S2318	03/06/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided
ARQ Consulting Engineers	17726	08/11/2016	Payment rejected by the system, the supplier changed the banking details without updating the banking with SANRAL	Depends on correct banking details being provided

(c)(i)(ii)(iii) In order to prevent fraudulent transactions or changes to banking details, SANRAL’s internal control measures requires the supplier to submit changes to banking details on a registration form accompanied by an original bank statement/letter/cancelled cheque, confirming the new account number or correct account number. These suppliers have been notified of the problem. SANRAL will pay as soon as it receives correct bank account numbers in a prescribed format. The suppliers have been informed of the prescribed format for changing banking details

Reply:

Railway Safety Regulator (RSR)

Yes, the Railway Safety Regulator (RSR) had unpaid debts for 30 days and more at 31 March 2017.

a) (i)

Supplier	Amount
21st Century Pay Solutions Group	7,410.00
Armani Office Supplies	7,530.40
Baupa Trading Enteprise	50,200.00
Enovative Technologies Africa	24,582.96
GIBB Engineering & Science	224,093.10
Khula Fleet Solutions	328,885.90
Metrofile	5,677.31
Times Media	37,613.16
Vox Telecommunications (Pty)	111,670.18
Vukile Property Fund Ltd	54,060.71
Work dynamics (pty) Ltd)	79,800.00
YSA Developments Leadership	229,647.81

1,161,171.53

ii) Inadequate cash, Delays In collections of debtors.

b) April 2017

c) (i) To improve cash flow, operators are required to apply for renewal of their permit three months before expiry of their permits. This allows safety assessment to take place before the expiry of the permit. After the assessment has been completed, an invoice is issued to the operator. This process ensures that revenue is generated and collected in time.

(ii) According to (RSR) debtors Management Policy, debtors must be collected within 30 days of issuing an invoice. After operators have been invoiced, regular follow up is made with the debtors to ensure that payment is received.

(iii) Communication with debtors takes place through telephone, email and by sending statement of accounts. This is done to ensure that cash flow of the organisation is improved so that creditors could be paid within 30 days

Reply:

The amount reflected below relates mainly to legal fees on social assistance appeals.

(a) Full Amount	(b)(i)Year
R10 297 837.54	(aa) 2013-2014
R12 994 173.95	(bb) 2014-2015
R3 382 845.97	(cc) 2015-16
R3 568 041.93	(ii) since 1 April 2016

Reply:

1. With reference to my recent response to question no. 2718 in this regard, I wish to confirm that the matter is receiving Government’s attention. It is anticipated that the Cabinet will be approached during the current financial year (2017/18) with a recommendation.

2. No. As indicated in my response above, the methodology of using pre-existing legislation to give effect to subsequent treaty obligations was adopted in the case of South Africa’s ratification of the International Covenant on Economic, Social and Cultural Rights (ICESCR). This is in accordance with section 231(4) of the Constitution and widely accepted international practice.

Using this method, the substance of the ICESCR provisions can be deemed to be incorporated and are part of the South African law (if regard is had to relevant pre-existing legislation, regulations and codes on education, water, health, social security, housing, labour, amongst others). Furthermore the Bill of Rights entrenched in Chapter 2 of the Constitution of the Republic of South Africa, 1996, draws its inspiration from the Universal Declaration of Human Rights (1948) and the two United Nations International Covenants on Civil and Political Rights as well as Economic, Social and Cultural Rights.

Reply:

ALEXKOR SOC LTD
(a)	None
(b)	R NIL

DENEL SOC LTD
(a)	None
(b)	R NIL

ESKOM SOC LTD

(a)	None
(b)	R NIL

SAFCOL SOC LTD
(a)	None
(b)	R NIL

SAX SOC LTD

(a)	None
(b)	R NIL

TRANSNET SOC LTD

(a)	None
(b)	R NIL

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

Reply:

The process of sharing the findings and recommendations of the report of the South African Human Rights Commission with the key structures of the sector commenced as soon as the DBE received the report in September 2016. Flowing from this, the DBE has constituted an internal multidisciplinary team that will not only respond to events, but that will also develop and institutionalise proactive mechanisms to ensure the protection of the right to a basic education. To guide the work of the team, the DBE has developed terms of reference of which consultations are currently underway within the Department.

Reply:

ALEXKOR SOC LIMITED
(a)	None, cost containment measures
(b)	None, cost containment measures
(c)	None, cost containment measures
(d)	None, cost containment measures
(e)	None, cost containment measures
	(i)	R NIL
	(ii)	R NIL
	(iii)	R NIL
	(iv)	R NIL
	(v)	R NIL
	(vi)	R NIL

DENEL SOC LIMITED
(a)	None
(b)	Yes
(c)	None
(d)	None
(e)	None b(i)-(vi)

Year	Description	Amount
2014	Annual Membership fees Denel SOC Ltd	R 96 300.00
2015	Annual Membership fees Denel SOC Ltd	R 101 115.00
2016	Annual Membership fees Denel SOC Ltd	R106 200.00
TOTAL AMOUNT		R 303 615.00

ESKOM SOC LTD

(a)

No, Eskom has not procured any services from the Afrikaanse Handelsinstituut. However Eskom has made payments to the Afrikaanse Handelsinstituut.

Eskom has not raised a need that would require Commercial to procure services from the entity.

(a)(i)

No applicable

(a)(ii)

Not applicable

(a)(iii)

Not applicable

(a)(iv)

Eskom is a member of the Afrikaanse Handelsinstituut and from time to time supports events by the organisation.

(a)(v)

Total payments is R74 563

(a)(vi)

Year	Description	Amount
2016	Annual Corporate Membership Fee	R66 863
2016	Annual Conference and Gala Dinner	R7 700
TOTAL AMOUNT		R 74 563

(b)

No, Eskom has not procured any services from the SA Chamber of Commerce and Industry. However Eskom has made payments to the SA Chamber of Commerce and Industry.

Eskom has not raised a need that would require Commercial to procure services from the entity.

(b)(i)

No applicable

(b)(ii)

Not applicable

(b)(iii)

Not applicable

(b)(iv)

Eskom is a member of the SA Chamber of Commerce and Industry and from time to time supports events by the organisation.

(b)(v)

Total payments is R563 000

(b)(vi)

Year	Description	Amount
2016	Annual Corporate Membership	R113 000
2016	Gala Dinner	R450 000
TOTAL AMOUNT		R 563 000

(c)

No, Eskom has not procured any services from the Black Management Forum. However Eskom has made payments to the Black Management Forum.

Eskom has not raised a need that would require Commercial to procure services from the entity.

(c)(i)

No applicable

(c)(ii)

Not applicable

(c)(iii)

Not applicable

(c)(iv)

Eskom is a member of the Black Management Forum and from time to time supports events by the organisation.

(c)(v)

Total payments is R74 200

(c)(vi)

Year	Description	Amount
2016	Annual Corporate Membership	R34 200
2016	Annual Conference and Gala Dinner	R40 000
TOTAL AMOUNT		R 74 200

(d)

No, Eskom has not procured any services from the Black Business Council. However Eskom has made payments to the Black Business Council

Eskom has not raised a need that would require Commercial to procure services from the entity.

(d)(i)

No applicable

(d)(ii)

Not applicable

(d)(iii)

Not applicable

(d)(iv)

Eskom is a member of the Black Business Council and from time to time supports events by the organisation.

(d)(v)

Total payments is R 350 000

(d)(vi)

Year	Description	Amount
2016	Annual Corporate Membership	R200 000
2016	AGM and Gala Dinner	R150 000
TOTAL AMOUNT		R 350 000

(e)

No, Eskom has not procured any services from the Business Unity South Africa. Eskom did not make any payments in 2016. Eskom has not raised a need that would require Commercial to procure services from the entity.

(e)(i)

No applicable

(e)(ii)

Not applicable

(e)(iii)

Not applicable

(e)(iv)

Not applicable

(e)(v)

Not applicable

(e)(vi)

Not applicable

SAFCOL SOC LIMITED
(a)	None, cost containment measures
(b)	None, cost containment measures
(c)	None, cost containment measures
(d)	None, cost containment measures
(e)	None, cost containment measures
	(i)	R NIL
	(ii)	R NIL
	(iii)	R NIL
	(iv)	R NIL
	(v)	R NIL
	(vi)	R NIL

SAX SOC LTD

South African Express Airways did not procure any services from and/or make any payments to the

(a)	None, cost containment measures
(b)	None, cost containment measures
(c)	None, cost containment measures
(d)	None, cost containment measures
(e)	None, cost containment measures
	(i)	R NIL
	(ii)	R NIL
	(iii)	R NIL
	(iv)	R NIL
	(v)	R NIL
	(vi)	R NIL

The airline is presently facing challenges pertaining to both its liquidity and profitability. As a result, the airline is currently not in a financial position to support expenditure that does not directly support the airline’s core functionality.

TRANSNET SOC LTD

a) Transnet has not procured any services from and/or made any payments to the Afrikaanse Handelsinstituut. The company is not in the list of Transnet’s service providers.

b) Transnet has made payments totaling R2 859 009 (excl. VAT) to SA Chamber of Commerce and Industry in the past three years.

 (i) Detailed breakdown of costs, refer to table below:

Year	Description	Amount
	SPONSORSHIPS	ANNUAL /GALA DINERS	MEMBERSHIP/ SUBSCRIPTION	MARKETING	STAKEHOLDER ENGAGEMENT	CONFERENCES	TRAINING
	1 994 182	129 839	550 079	81 589	30 996	57 368	14 965	2 859 009
2014	438 596	-	27 337	81 579	8 996	57 368	702	614 578
2015	482 456	51 066	-	-	22 000	-	-	555 523
2016	531 902	33 750	366 147	-	-	-	8 298	940 097
2017	541 228	45 023	156 595	-	-	-	5 965	748 811
Total Amount								R 2 859 009.00

(c) Transnet has made payments totaling R1 077 193.00(excl. VAT) to Black Management Forum in the past three years.

(i) Detailed breakdown of costs, refer to table below:

YEAR	DESCRIPTION	AMOUNT
2014	Sponsorship	R 200 000.00
2016	Sponsorship	R 877 193.00
TOTAL AMOUNT		R 1 077 193.00

(d) Transnet has made payments totaling R700 000 (excl. VAT) to the Black Business Council amounting in the past three years.

(i) Detailed breakdown of costs, refer to table below:

YEAR	DESCRIPTION	AMOUNT
2014	Annual/ Gala Dinners	R 500 000.00
2015	Annual/ Gala Dinners	R 50 000.00
2017	Stakeholder Engagement	150 000.00
TOTAL AMOUNT		R 700 000.00

(e) Transnet has made payments totaling R22 800 (excl. VAT) to Business Unity South Africa in the past three years.

(i) Detailed breakdown of costs, refer to table below:

YEAR	DESCRIPTION	AMOUNT
2014	Annual/ Gala Dinners	R 22 800.00
TOTAL AMOUNT		R 22 800.00

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

Reply:

(1)

Solenta: see the link: https://pmg.org.za/files/RNW585Solenta-170411.docx

SKA: see the link: https://pmg.org.za/files/RNW585SKA-170411.docx

 

(2) Yes there are contracts in place for both entities and the SLA’s are contained in both contracts.

Solenta: Contract Period: 01 Feb 2017 to 31 July 2017

SKA: Contract Period: 06 December 2016 to 31 March 2017

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

a) How many volunteers have been investigated for fraud to date?

The Department has been investigating alleged cases of fraud that were reported.

90 volunteers were allegedly involved in fraud and corruption. All reported cases of fraud have been dealt with decisively.

The Department continuously updates its internal controls which assists in strengthening the validation processes and financial management of the campaign.

(b) Was any volunteer found guilty?

Yes, 90 volunteers were found guilty through the Departmental internal processes.

(c) What amount of money was involved?

90 volunteers were identified to have been paid an amount of R282 297.22 without any learners.

(d) Will the volunteer be criminally charged, and

The identified volunteers were removed from the Campaign and the monies deducted.

(e) What steps have been taken to recover the amount in each case?

The Department has recovered R 281 838.53 (99.84%) to date.

To recover monies, the Department deducted the funds owed from the stipend payments due to volunteers. The Department employs volunteers in a hierarchical structure, which are; Monitors, Coordinators, Supervisors and Volunteer Educators.

Detailed Steps:

Deceased Learners registered in the Campaign

Step 1: Once the deceased learners have been identified by the Department of Home Affairs, the volunteers who submitted list of deceased learners are identified.

Step 2: The actual stipend is determined as per the sliding scale.

Step 3: The determined amount of stipend related to the fraudulent transactions is then deducted.

Step 4: The identified volunteers are removed from the Campaign.

 

Reply:

(1)(a) Transnet awarded the tender on 01 December 2016.

(1)(b) The tender was awarded to Mossel Bay Waterfront (Pty) Ltd.

(1)(c) 01 January 2017, however, occupation was not taken because the current operator, MBYBC refused to vacate the premises.

(2)(a) The current operator at the time was up to date with no arrears.

(2)(b)(i) Its business operations were and remain vitally important to Transnet.

(2)(b)(ii) Transnet appreciates the contribution of this business operation in growing the domestic economy, attracting tourism and creation of employment opportunities for the community of Mossel Bay.

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

DEPARTMENT OF PUBLIC ENTERPRISES

(1)	(b)	Department of Public Enterprises did not participate in the event
(2)	(b)	Department of Public Enterprises did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL
ALEXKOR SOC LTD
(1)	(b)	Alexkor did not participate in the event
(2)	(b)	Alexkor did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

DENEL SOC LTD
(1)	(b)	Denel did not participate in the event
(2)	(b)	Denel did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

ESKOM SOC LTD

(1)	(b)	Eskom did not participate in the event
(2)	(b)	Eskom did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

SAFCOL SOC LTD
(1)	(b)	SAFCOL did not participate in the event
(2)	(b)	SAFCOL did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

SAX SOC LTD

(1)	(b)	SA Express did not participate in the event
(2)	(b)	SA Express did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

TRANSNET SOC LTD

(1)	(b)	Transnet did not participate in the event
(2)	(b)	Transnet did not participate in the event
		(i)	R NIL
		(ii)	R NIL
			(aa)	R NIL
			(bb)	R NIL

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

Reply:

The Director-General, Mr Z Dangor cited a breakdown in the working relationship with the Minister of Social Development, Ms BO Dlamini, in his resignation.

Reply:

The list does not include schools with access to only improved ventilated pit latrines.

The requested information can be found on the link to the following webpage: http://www.education.gov.za/Newsroom/ParliamentaryQuestions/2017NA670.aspx containing the Annexure of the list of schools with Ventilated Pit Latrines.

Reply:

(a)(i) & (a)(ii) Ms Verna Durand is both the Director and Shareholder of this company.

(b) The monthly rental paid by the current operator is R108 628.51

(c) The successful bidder will pay a monthly rental fee of R118 200.00

Mogokare Richard Seleke Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

(1)(a) Yes. For the 2015/16 financial year, 99.2% of the employees required to declare completed declarations of interest. The 0.75% did not declare, because they were on suspension or extended sick leave. Employees from TASK grade 09 and above are required to complete annual declaration forms either electronically or manually (depending on the circumstances). Employees from TASK grade 08-04 must declare interest if there is a conflict.

1(a)(i) Line managers check the declarations.

1(a)(ii) Employees are required to declare interests every financial year, whether an

interest exist or not. Employees are also required to immediately declare whenever a conflict arises, the annual declaration for that employee will then be amended.

1(b) Yes

1 (b)(i) The Chairman, assisted by the Group Company Secretary, administers the filing

of declarations of interest for Board members. The annual declarations are presented to the shareholder at the AGM.

1(b)(ii) Directors are required to declare interests every financial year, whether an

interest exist or not. Directors are also required to immediately declare whenever a conflict arises, the annual declaration for that directors will then be amended.

1(c) Yes

1(c)(i) Declarations of interest submitted by the Executive Management Committee

Members (EXCO) is approved by the Group Chief Executive and administered by the Group Company Secretary.

1(c)(ii) All Eskom Executive Committee (EXCO) members are Eskom Employees.

Employees are required to declare interests every financial year, whether an interest exist or not. Employees are also required to immediately declare whenever a conflict arises, the annual declaration for that employee will then be amended.

(2) Yes, for Board and EXCO

The management of conflict of interest is governed by the Eskom Conflict of Interest (COI) Policy and Procedure, which is applicable to the Board and employees. The Policy and Procedure address noncompliance and the consequences of noncompliance.

Further to this for Board and EXCO meetings probity checks in respect of commercial transactions are conducted prior to circulation of meeting agendas. In the event that there is a potential, perceived or actual conflict of interest, the chairman of the meeting and the Group Company Secretary are advised. Should a conflict be identified the member will not be provided with the information pertaining to that matter and will be required to recuse him/herself from the proceedings when the matter is discussed.

The attending members are required to declare that they do not have any conflict in relation to matters being discussed in the meeting.

Declaration of interest is a standing agenda item of all Board and EXCO meetings. Any conflicts are recorded as part of the proceedings. The relevant member is then required to recuse him or herself at the time when the particular agenda item is discussed.

Yes, for employees.

Where there is a conflict of interest, the employee must refrain from being part of any deliberations, document preparation, execution or meetings and must not have access that deals with that particular matter.

In addition, cases reported through the Forensic Investigation department, the Eskom disciplinary process was followed. For the 2015/16 financial year, there were 10 cases of actual conflict emanating from the outcome of forensic investigations.

(3) Emanating from the results the forensic investigations for the 2015/16 financial for employees (including Exco), there were 10 cases where actual conflict was identified.

(4) The Eskom Sponsorship Committee is delegated to approve all sponsorship up to

R3 million with sponsorships above R3 million being approved by the Executive Committee (EXCO). During the previous and current financial year all approved sponsorships were less than R3 million and was therefore approved by the Eskom Sponsorship Committee in the Corporate Affairs Division. 

Sponsorships are proactively planned and targeted on an annual basis, with input from all Divisions, as it enables the organisation to meet its strategic objectives.

Table 1 and Table 2 below presents the name and designation of the Eskom employees who decide on sponsorship allocations.

Table 1Name and designation of Executive Management Committee Members (EXCO) who decide on sponsorship allocations

Group Executives​ ​ ​
Name	Designation
​Mr Matshela Koko	Interim Group ​Chief Executive
​Mr Anoj Singh	​Chief Finance Officer
Mr Willy Majola	​Group Executive Generation (Acting)
Mr Thava​ Govender	​Group Executive Transmission
​Mr Mongezi Ntsokolo	​Group Executive Distribution
Ms ​Ayanda​ Noah	​Group Executive Customer Services
​Mr Abram Masango	Group Executive Group Capital
Ms ​Elsie Pule	​Group Executive Human Resources
​Mr Sean Maritz	​Group Executive Information Technology
​Mr Freddy Ndou	Divisional Executive Strategy Support
​Brigadier General (Ret.) Tebogo	​Divisional Executive Security
Mr ​Chose Choeu	​Divisional Executive Corporate Affairs
​Ms Suzanne Daniels	Group Company Secretary

Table 2 Name and designations of the Sponsorship Committee

Sponsorship Committee
Name	Designation
Chose Choeu	​ Divisional Executive Corporate Affairs
Ruwaida (Ra’eesah) Waja	General Manager: Internal and External Communication
Marion Hughes	General Manager: Stakeholder Relations
Pieter Pretorius	General Manager Strategic Marketing and Branding (Acting)
Cecil Ramonotsi	CEO Eskom Development Foundation (Acting)
Natasha Sithole	Senior Manager: Business Enablement
Nto Rikhotso	Eskom Media Desk Manager

Remarks: Reply: Approved / Not Approved

Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP

Director-General Minister of Public Enterprises

Date: Date:

Reply:

1. Whether there is any position of (a) chief executive officer, (b) chief financial officer and/or (c) chief operating officer that is currently vacant in each entity reporting to her; if so, (i) how long has each specified position been vacant and (ii) what is the reason for each vacancy;

Entity	Chief Executive Officer (CEO)	Chief Financial Officer (CFO)	Chief Operating Officer (COO)
	(a)	(i)	(ii)	(b)	(i)	(ii)	(c)	(i)	(ii)
Council for Scientific and Industrial Research	No	N/A	N/A	No. However, the CFO tendered his resignation and his last day is 30 April 2017.	N/A	N/A	No	N/A	N/A
Human Sciences Research Council	No	N/A	N/A	Yes	January 2017	Resignation	Yes	16 March 2017	Mutual termination of agreement

2. Have the vacancies been advertised; if so, (a) were interviews done and (b) on what date will the vacancies be filled;

Entity	(a)	(b)
Council for Scientific and Industrial Research	Yes. The interviews are scheduled for 03 May 2017.	1 July 2017.
Human Sciences Research Council	Yes. The CFO position was advertised. However, interviews not yet done.	The date is not confirmed.
	No. The position of the Deputy CEO: Management Support is yet to be advertised.	The process is underway.

3. (a) what is the total number of persons who are currently employed in the specified positions in an acting capacity, (b) for what period has each person been acting in each position and (c) has any of the specified persons applied for the positions?

Entity	(a)	(b)	(c)
Council for Scientific and Industrial Research	N/A	The Acting CFO will act until the new CFO is appointed and start on 1 July 2017.	N/A
Human Sciences Research Council	CFO: One Deputy CEO: Management Support: One	Acting CFO: since January 2017 Acting Deputy CEO: Management Support: since 16 March 2017.	Acting CFO: No Acting Deputy CEO: not yet advertised.