Questions and Replies

Reply:

(a)(b)(c)(i) Members of the Traffic Legislation Technical Committee are officials or representatives of Provinces, NRCS, SAPS and all the Agencies, who have been nominated by their respective Authorities and Institutions to attend the Committee.

(ii) They represent the Provincial Departments responsible for transport, Agencies of the Department of Transport and those Institutions.

(iii) They have the required expertise in road traffic related matters, extensive experience in road traffic related legislation, road traffic management and process and procedures.

Reply:

The IDC has a confidentiality policy that applies to companies that it transacts with. The CEO of the IDC advised me that the requested information would be in breach of the current policy. The IDC has taken a decision to provide macro-data on the number of transactions involving politically exposed persons in future annual reports.

I have taken note of the IDC’s advice and have now requested the IDC to review the appropriateness of the current policy, having regard to relevant commercial considerations, the legitimate public expectations of transparency as well as the rights to privacy of individuals and the need to ensure – and be seen to ensure – integrity in all investment decisions; and to facilitate an engagement between me and the Board on the outcome of this review during the course of 2017.

Original proposed by: Mr MG Qhena, CEO IDC

Recommended/ Not Recommended

Comments:______________________________________________________

_______________________________________________________________

……………………………..

Mr Malcolm Simpson

Acting Director-General

Date: ………………………

Approved/ Not Approved

Comments:_____________________________________________________

______________________________________________________________

______________________________________________________________

………………………………..

Mr Ebrahim Patel

Minister of Economic Development

Date:………………………..

Reply:

(1) (a) and (b) The names and ranks for uniformed members of the SANDF who received performance bonuses cannot be provided as it might compromise individual’s confidentiality and this also includes the amount received in each case.

Total number of members who received bonuses 2013 – 2015: 305

(2) Yes, there are portfolios of evidence and motivations, by the line superiors to award bonuses to the specified persons and it is actually contained in each member’s PMDS Booklet, as follows:

• 1. Each individual score per KRA and GAF is motivated.

• 1. Each superior has to have at least two compulsory interviews with his/her member, in order to highlight good or bad performances.

• 1. Superiors also have the opportunity throughout the year of assessment to have performance related interviews with members, which can be captured in the PMDS Booklet.

(3) No, these PMDS booklets are not open for scrutiny by any persons other than the specific individual, the immediate supervisor, the Service Centre Manager, the Personnel Officer, members of the PMDS Moderating Board and the Officer Commanding. These PMDS Booklets are kept in filing cabinets in the office of the Warrant Officer in charge of PMDS Administration. These booklets can only be accessed by means of authority given by higher HQ via the Officer Commanding.

(4) No, Col M.R. Mongo did not receive a bonus in each of the specified financial years. He only received a bonus in 2012 and nothing since then. The Unit Officer Commanding is assessed by the GOC Support Formation, and nomination for a bonus comes from the GOC. The unit does not even capture the PMDS of the officer commanding.

Reply:

(1)What is the total amount that has been paid to date for expenditures incurred for,

(a) the bidding process for the Commonwealth Game to be hosted in Durban and

Sport and Recreation provided R1m for the bidding process. The other spheres of government and the National Lottery have made contributions to the total expenditure for bidding. The Closeout report which contains the audited financial statements of the Bidding Company will be tabled before the Inter-Ministerial Committee on the Games for approval prior to the figures being considered final.

(b) any capital projects undertaken to upgrade the Ethekwini precinct by each

(i) national

None

(ii) provincial and

None

(iii) local sport authority;

None by the local Sport Authority but the Municipality had long term plans for the renovation for the Rachael Finlayson Swimming Pool. They have taken the opportunity to enhance the upgrade to meet the requirements for the Commonwealth Games. This increased the cost by R2m bringing the upgrade to R3,5m. The renovations will be complete by March 2017.

(2) whether South Africa met the 30 November 2016 deadline to ensure that all securities have been put in place to host the specified games in 2022; if not, why not; if so, what are the relevant details?

South Africa met the deadline of 30 November 2016. South Africa responded to the issues raised by the Commonwealth Games Federation. All the information and supporting documents were uploaded onto the Commonwealth Games Knowledge Systems Portal and acknowledgement of receipt was received.

 

Reply:

The residents of Wards 20 and 22 in the Kgetlengrivier Local Municipality in North West will get clean water once the funds for the pipeline are confirmed.

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Reply:

(a) At Heyshope pump-station there are 4 pump-sets of which 2 pump-sets are currently functional and in operation. At Geelhoutboom pump-station there are also 4 pump-sets of which 2 are in operation. These two pump-stations are operating in series together with long sections of gravitational transfers.

At Heyshope refurbishment of the booster motor at pump-set 1 is underway and procurement for the mechanical motor and control valve refurbishment is in progress. At Geelhoutboom line 1 the motor refurbishment is being completed and it is anticipated that it will be back in operation by January 2017. The other pump-set is awaiting the replacement of bearings which is in progress and should be back in operation by December 2016.

(b)(i) The volume of water transferred in 2015 was 27, 9 million cubic meters

(b)(ii) The volume of water transferred in 2016 is 43, 7 million cubic meters.

(c) In 2015 Heyshope had 3 out of 4 pump-sets in operation and 2 out of 4 in 2016. At Geelhoutboom 1 out of 4 was operational in 2015 and this improved to 2 out of 4 in 2016.

(d) Since the rectification work is not completed as yet, a final figure is not available as yet. However to date R97.7million was spent at these two pump-stations.

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Reply:

(1) My Department released the total volume of water from Sterkfontein dam to the Vaal dam as per the operating rule developed by the National Water Resource Planning unit. The initial release in the 2015/2016 hydrological year of 320.48 million cubic meters was completed between October 2015 and January 2016. The second release is underway peaking at 70 cubic meters per second to ensure the planned volume of 203 million cubic meters to be transferred by end December 2016. To date the release is occurring according to plan.

(2)(a) The transfer of water from the Woodstock to Sterkfontein dam occurred 80% according to plan. This was due to mechanical and electrical failures experienced at some of the pump-sets at Drieland Kilburn pump stations. These two pump-stations are working in series to lift water at a maximum flow-rate of 20m3/s (should there be adequate run-off in the river leading into the Woodstock dam).

(2)(b) At Driel pump-station, there are two sections of which section 1 has 2 out of 3 pump-sets functional and at section 2, there are 4 out of 5 pump-sets available. The mechanical fault at Driel 1 was attended to by a previously appointed contractor but failed after commissioning. This particular pump-set has been problematic for more than a year, but contractual matters are being attended to. The electrical motor at Driel 2 is out of service for the past 3 weeks and repair is imminent as procurement is being finalized.

At Kilburn section 1, 4 out of 4 pump-sets are in operation. At Kilburn section 2, we have 3 out of 4 pump-sets in operation. The motor of one pump-set is in for repairs at a contractor after it became dysfunctional in March 2016. The lengthy repairing period was caused due to a contractual dispute with the contractor which has been resolved and it is expected to have this pump back in operation shortly.

(2)(c) If the equipment is not available, the filling of Sterkfontein Dam will be delayed.

(2)(d) The cost for the repair work is R5m for Driel and R1.5m for Kilburn.

(3)(a) At Driel section 1 there are 3 pumps with a transfer capacity of 1m3/s each. At Driel section 2 there are 3 pumps with a transfer capacity of 2.6m3/s each and 2 pumps with a capacity of 4m3/s each. At Kilburn section 1 there are 4 pump-sets of 3.3m3/s each and at section 2 there are 4 pump-sets of 4m3/s each.

(3)(b)(i) The first transfer took place in 2015 from October to January 2016 for which the total of 320.48 million cubic meters was transferred.

(3)(b)(ii) To date about 85 million cubic meters was transferred since 7 November 2016 of the planned 203 million cubic meters.

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Reply:

(a) The Department of Transport was not a party to the dispute between the Bombela Concession Company and the Gautrain Agency

(b) There is no implications for the Department of Transport

Reply:

Airports Company South Africa SOC Limited

Airports Company South Africa’s budget for external Forensic investigations is estimated at R1 200 000 for the 2016/17 financial year. The average spend for Forensic investigations has been around a million rand each year over the past five years. This year, to date, the entity has spent almost R900, 000.00. There are no investigations that have not been concluded from previous years.

South African Civil Aviation Authority

For the period 01 January 2009 until 31 October 2016, the South African Civil Aviation Authority spent an amount of R967 780.62 on external forensic investigations. The internal investigations were conducted in-house, therefore no consultants were utilised.

Air Traffic and Navigation Services (ATNS)

The amount spent on both investigations is R445 098.60.

Ports Regulator of South Africa Response:

No costs have been incurred by the Ports Regulator with reference to Question 2317, as there have not been any internal nor external forensic investigations within the period specified.

Railway Safety Regulator:

The Cost to the RSR amounts to: R129 791.37

South African Maritime Safety Authority

The SAMSA Board commissioned a Forensic Investigation in May 2016, the initial phase is almost complete, from what was reported, there was a need to do a second round of investigations, the whole investigation amounts to R1.2m.

Road Accident Fund

With reference to the reply to question 2317 on 15 November 2016, the costs for the RAF to compile the forensic investigation reports, i.e. the annual budget related to the operations of the RAF’s Forensic Investigation Department, and the associated savings resulting from the identification of fraudulent claims which were then not paid, was:

Cost		Saving
FY2009/10	R 49 619 469		FY2009/10	Info not available
FY2010/11	R 37 909 502		FY2010/11	Info not available
FY2011/12	R 42 301 356		FY2011/12	R 461 758 646
FY2012/13	R 45 490 550		FY2012/13	R 243 281 011
FY2013/14	R 57 802 378		FY2013/14	R 113 178 482
FY2014/15	R 64 958 696		FY2014/15	R 178 702 835
FY2015/16	R 70 081 524		FY2015/16	R 423 727 844
FY2016/17	R 60 385 310		FY2016/17	R 407 665 631

Cross-Border Road Transport Agency

With reference to the Cross-Border Road Transport Agency’s reply to question 2317, the costs that were incurred on the internal forensic investigations are illustrated on the table below:

	Case	Costs incurred
(i)	Fraud that resulted in financial loss	R51, 068.24
(ii)	Misuse of the Agency’s credit card	R196, 832.87

Road Traffic Infringement Agency

The RTIA spent R110 431.14 on forensic investigation.

South African National Roads Agency Limited

Forensic Investigation Costs
2008/09	621 300.63
2009/10	403 916.78
2010/11	206 645.77
2011/12	901 171.52
2012/13	263 812.47
2013/14	-
2014/15	-
2015/16	349 530.84
2016/17	375 932.90
Total	3 122 310.91

Road Traffic Management Corporation

The costs were incurred as follows:

1. Ministerial Task Team 2010 – R492 560.02
2. Khuthele/PWC 2009 – R1 918 487.14
3. Nkonki 2012 – R497 000.10
4. Open Waters 2012 – R891 854.26

Passenger Rail Agency of South Africa (PRASA)

1. Fuel Fraud Investigation by Valuecorp CC, trading as, Sudesh Dayanand Forensic Investigators – the contract term for this investigation lapsed in 2015 – R37,9 million
2. Werksmans Attorneys – Investigations into various irregularities found by the Auditor-General SA in its 2014/15 audit and the irregularities found by the Public Protector in her report entitled “Derailed” issued in August 2015 – This investigation is ongoing - R119 million
3. National Treasury – Investigations into contracts that are above R10 million and concluded by PRASA between 2012 and 2015 – This investigation is ongoing – no cost to PRASA
4. Deloitte- Investigations into fraudulent transfer of funds in the Durban and Tshwane Regions which was terminated in 2010 and handover of the results to the South African Police Services- R 1 million
5. Deloitte - allegations of irregularities in appointment of officials in the Eastern Cape region, mismanagement of company assets and tender processes concluded in 2010/11 - R423 000.00
6. PricewaterhouseCoopers – Forensic Audit into Eastern Cape supply chain management processes and related outstanding invoices for payment conclude in 2013. - R 178 000.00 
7. Deloitte- Investigations into appointment of contractors, supply chain management processes and tenant revenue leakages concluded in 2013. R7,5 million
8. SizweNtsalubaGobodo - allegations of abuse of third party charter bus services concluded in 2013/14 - R180 000.00

Reply:

(a) The K53 revisions is currently being tabled at the Inter Provincial Policies and Procedures (IPPP) working group where after it will be tabled at the Traffic Legislation Technical Committee. Once approved by the Committee it will then be submitted to the Minister for endorsement to start with the consultations process. I am not at this stage able to provide definitive timelines as this would depend on how long the consultation processes take. It will probably take 18 months to conclude the entire consultative process.

(b) There were no special budget allocations for the K53 revision process.

(i) (ii) and (iii) Falls away.

(c) Falls away.

Reply:

(1) Yes, I am aware of the findings that are presented in the National Treasury Expenditure and Performance Review (EPR). Please note that the key purpose of the review is to understand the financial implications of water services delivery, not to reflect specifically on sector performance and propose solutions. The Review has also developed an expenditure performance Costing Model that will facilitate regular discussions with National Treasury on the relationship between government expenditure and performance. The model measures (and predicts) performance against current (and future) levels of financial expenditure. The Review confirms what my Department already knows with regards to the current constraints to performance within the water (services) value chain. In fact, my Department provided the consultant with this insight during the initial data and information collection phase, prior to the publication of the Review, but was never given the opportunity to comment on any of the draft versions. The Final Review has not been circulated within my Department for comment.

(2) The findings contained in the Review have not led to any new programme or measures being implemented. My Department, as sector leader and as part of its mandated responsibility, continues to monitor sector performance and intervenes when appropriate, and has recently developed a Regulatory No Drop System in support of Water Conservation and Demand Management, and is finalising a comprehensive and detailed Water Sector Investment Framework, which forms part of an overarching National Water and Sanitation Master Plan.

My Department is also implementing Municipal Water Master Plans within 27 Priority District Municipalities in support of the Water Services Development Planning process, which will ultimately emanate in a pipeline of projects, to address the water services delivery problems that might exist.

(3) Yes, I am aware of the current state of infrastructure in the water sector, and specifically the state of asset management, and associated problems with infrastructure operation and management within municipalities. My Department is busy finalising a detailed municipal investment requirements analysis, which is part of the sector Investment Framework, to confirm the actual extent of the problem, financially, within municipalities. The Investment Framework will be completed in 2017, and my Department will, in due course, make recommendations over what period of time the infrastructure should be replaced, refurbished or extended, while taking into account the current economic environment in the country. The 59% quoted in the Review is based on a preliminary Departmental estimate of infrastructure renewal. Other studies have also based renewal on accumulated depreciation which is only a financial provision for the renewal of infrastructure. This implies that there is shortfall in funding.

(4) Due to this identified shortfall, my Department has engaged with National Treasury and COGTA to establish a new refurbishment fund. The required funds to support the investment requirements have not yet been secured from National Treasury. This will only happen once the Investment Framework has been finalised and the findings and recommendations have been presented and discussed internally within my Department, and once other lead sector departments, who are involved with municipal water services delivery, have had the opportunity to make their inputs. The funding is critical to ensure that the pipeline of projects emanating from the Water Services Master Plans are implemented.

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Reply:

1.  (a) (b)

     E van HeerdenTransport           55 000.00

     Du Toit PC                             28 879.21

     Voicelogger                           734 503.04

     Binopath                               158 809.02

     Chuma Security                   10 508 897.69

     Sechaba Security                 14 758 654.40

     Supreme Security                 10 245 532.19

    Swart Hess Attorneys                 402 385.90

     Oricol Environment Service           13 328.92

     Oricol Environment Service             4 901.24

     Boshard Construction (PTY) Ltd    282 963.80.80

                                                       ----------------------

                                                      37 193 855.41

2. (a) Details not available yet

   b) Amount unknown

   (c) Please refer to (b).

   (d) Please refer to (b).

Reply:

1. I am informed that the furthermore, as the investigations are still underway and in putting the interest of the company first, the Board decided not to put Mr Maseko on suspension, but imposed stringent conditions during this period at work

2. (a)The Board has adopted the findings and recommendations of the Report to conduct further investigations on some of the allegations with a view to institute disciplinary proceedings. Where recommended, the Board is in the process of reporting any criminal acitivity to the South African Police Service. In addition, certain implicated individuals have been placed on suspension pending the said further investigation.

(b) (i) and (ii): The timelines and deadlines for the period of suspension and finalisation of the further investigations is 3 February 2017.

3. (a) and (b): Yes, there are processes and mechanisms in place to ensure recommendations are executed. Furthermore investigations into the recommendations are underway; the process of reporting criminal activity to the South African Police Services is underway and suspension of certain individuals, where warranted, has been executed. The Board has further delegated to some of its members some of the actions to be taken to ensure the execution of the findings and recommendations, subject to due process, and as per applicable legal prescripts.

4. (a) and (b): All recommendations have been adopted by the board save for one part regarding the City Lodge contract of 2007 to discipline the then Tender Board and Executives. The reason being that due to the passage of time, most of the individuals mentioned are no longer in the employ of the company and further, that the reversal of that contract would not be in the interest of the Company, nor will it make commercial sense to do so.

Reply:

(1) The Minister empowered in terms of section 81(1) of the National Road Traffic Act, 1996 (Act No. 93 of 1996) to grant exemptions to motor vehicle due to their designs that do not comply with the provisions of the Act. The “TRH11 Dimensional and Mass Limitations and Other Requirements for Abnormal Load Vehicles” and “TRH11 Administrative Guidelines for Granting of Exemption Permits for the Conveyance of Abnormal Loads” TRH 11 are guidelines document which are used in assisting me in making the decision.

(2) Paragraph 2.2.2 of the TRH11 “Dimensional and Mass Limitations and Other Requirements for Abnormal Load Vehicles” clearly outlines the maximum allowable dimensions under permit of the load which may be carried by the vehicle for which principle approval have been issued.

(3) In terms Section 81 (2) of the Act the MEC may, after the applicant has paid the fees or charges referred to in section 7 (3) and subject to such conditions as he or she may determine, authorise in writing, either generally or specifically, the conveyance in a safe manner on a public road of passengers or any load otherwise than in accordance with this Act. Therefore, the MEC’s are empowered to prescribe any processes for the better management of these vehicles.

(4) As highlighted in paragraph 1 above and in accordance with Section 81(2) of the Act the MECs may use TRH11 and any other conditions in considering any applications.

(5) They may take into consideration the provisions of the TRH11 Administrative Guidelines for Granting of Exemption Permits for the Conveyance of Abnormal Loads in determining permit conditions..

Reply:

Road Accident Fund (RAF)

1.(a)(i) The RAF uses market research and benchmarking by reputable remuneration consultancy firms as well as guidelines issued by National Treasury to determine inflationary annual salary adjustments as criteria for the approval of salaries and salary increases respectively.

(ii) The RAF uses performance against specified performance indicators agreed in the respective annual performance contracts, which indicators are linked to the performance targets set in the Annual Performance Plan, as criteria to approve bonuses.

(b)(i)(ii)The Remuneration and Reward Policy and its associated procedure, which inter alia provides for benchmarking of salaries and auditing of the annual salary adjustments by the Internal Audit Department, and the Performance Management and Development Policy and its associated procedure, which inter alia provides for quarterly performance assessment of the CEO’s performance by the Chairperson of the Board. The annual performance assessment scores to be tabled at the REMCO and the Board; and the auditing of results by the Internal Audit Department, or Auditor-General where the Board so elects, exist to verify that the specified criteria were (i) used and (ii) followed in the (aa) 2013-14, (bb) 2014-15 and (cc) 2015-16 financial years.

Road Traffic Infringement Agency (RTIA)

1.(a)(i) The Registrar of the RTIA’s salary is determined in terms of DPSA framework and it is on salary level 16 (DG level).

(ii) The Registrar’s bonus is determined in terms of the approved performance management framework, where a performance bonus is based on a certain percentage obtained and it is approved by the Board.

(b)(i) The criteria and procedure used is outlined in the Agency’s Performance Management Framework.

(ii) The criteria and procedure used is outlined in the Agency’s Performance Management Framework

(aa) 2013/2014: As approved by the Board in its assessment in terms of the Performance Assessment criteria.

(bb) 2014/2015: As approved by the Board in its assessment in terms of the Performance Assessment criteria.

(cc) 2015/2016: As approved by the Board in its assessment in terms of the Performance Assessment criteria.

Passenger Rail Agency South Africa (PRASA)

1.(a)(i) Salaries are offered to employees at the time of their appointment to the organization according to their job level and the approved scales as per PRASA policies.

(ii) PRASA does not pay bonuses at the moment, but should the time come where bonuses have to be paid this will be guided by the relevant Human Capital Management Policies on Performance Management as well as Remuneration and Benefits.

(b)(i)(ii) This is guided by job evaluation and profiling as well as approved scales as per PRASA policies all the time.

PRASA does not pay any bonuses at the moment.

Road Traffic Management Corporation (RTMC)

1.(a)(i) The salary increase and the bonuses of the CEO of the Road Traffic Management Corporation are based on the contract of employment and organizational performance.

(ii) Performance bonus is only payable if the organization achieves the minimum of 75% of overall performance. Performance assessment is conducted by the Board and the amount payable is based on the performance achieved. Performance information is audited by the Auditor General.

(b)(i)(ii) (aa) 2013/14

There was no performance bonus paid to the CEO relating to 2013/14 financial year. This was due to the fact that the CEO’s contract of employment commenced in January 2014 which was three months before end of financial year. The organization had also under performed.

(bb) 2014/15

The Board report that The performance bonus paid was based on organizational performance achieved of 83%. A performance assessment was conducted by the Board and the amount paid was based on the performance achieved.

(cc) 2015/16

I am informed The CEO’s salary was adjusted during 2015/16 based on the following:

• Organizational growth occasioned by the decision of the Shareholders Committee to transfer the management of the e-NaTIS system from TASIMA to RTMC.
• Organizational performance achieved during 2014/15

The performance bonus relating to 2015/16 financial year was based on organizational performance achieved at 92%. The performance assessment was conducted by the Board and the performance information was audited by the Auditor General.

South African Civil Aviation Authority (SACCA)

1.(a)(i)(ii) The SACAA has Board approved remuneration and perfomance management policies which provide overall guidance of annual salary increases and bonuses. The Director Civil Aviation (DCA)’s salary and bonus was approved by the board in line with the remuneration and perfomance management policies.

The salary increase approved by the board was in line with the guidelines published by the National Treasury. The SACAA salaries including the DCA’s are benchmarked on a regular basis and the pay scales are approved by the board.

(b)(i)(ii) The percentage in respect of salary increases and the total amount payable in respect of Bonuses including the DCA’s are approved by the board and audited by the Internal Audit before implementation annually.

(aa) The DCA was appointed on 1 December 2013 and the salary was determined and approved by the Minister.

(bb) 2014/2015 salary increase was approved by the board and paid in accordance with the policy and national treasury guidelines. The bonus was also paid in accordance with the entity’s remuneration and perfomance management policies and was subjected to Internal Audit processes.

(cc) 2015/2016 salary increase was paid in accordance with the policy and national treasury guidelines. The bonus was paid in accordance with the entity’s remuneration and perfomance management policies and was subjected to Internal Audit processes.

Cross-Border Road Transport Agency (C-BRTA)

(1)(a)(i) In terms of the Cross-Border Road Transport Act, Act no. 4 of 1998, the CEO salary is determined by the Minister of Transport in consultation with Minister of Finance.

(ii) As per the terms and conditions of the employment contract, the salary package is structured as 80% fixed salary and 20% variable portion. The 20% is paid as a performance bonus on achievement of agreed target as stipulated in the performance agreement contract.

(b)(i) The Minister’s written approval is used as an input document to load the salary into the payroll system and this is reviewed at the executive level. The calculation of the performance bonus is based on the final performance assessment and the calculation is reviewed by Executive: Human Resources and the Chief Financial Officer before the payment is processed.

(ii) (aa) (bb) Yes criteria was followed for 2013/14 and 2014/15.

(cc) For 2015/16 not applicable as the performance bonus is not yet finalized for payment.

South African Maritime Safety Authority (SAMSA)

1(a)(i)

Criteria for approval of salary increases	2013/14	2014/15	2015/16
	*CPI+	CPI	CPI

*CPI+ was used as CEO had not received annual salary increases for 2 successive years (since 2011).

(ii)

Criteria for approval of bonuses	2013/14	2014/15	2015/16
	Organizational performance Employment contract which stipulated that up to 20% bonus will be payable based on organizational performance

(b)(i)

Procedures	2013/14	2014/15	2015/16
Used	Recommendation made by Exco, REMCO and approval by Board of Directors	Recommendation made by Exco, REMCO and approval by Board of Directors	Recommendation made by Exco, REMCO and approval by Board of Directors

(ii)

Procedures	2013/14	2014/15	2015/16
Followed	*There was no Board of Directors appointed at the time. As a result the decision was taken by Executive Committee (EXCO)	*There was no Board of Directors appointed at the time. As a result the decision was taken by Executive Committee (EXCO)	*There was no Board of Directors appointed at the time. As a result the decision was taken by Executive Committee (EXCO)

* The Board of Directors was subsequently appointed but members resigned/did not form a

quorum before it could ratify the decision.

(1)b(i) What procedures (for bonus) exist to verify that the specified criteria were used?

Procedures	2013/14	2014/15	2015/16
Used	Recommendation made by Exco, REMCO and approval by Board of Directors	No bonus was paid out	No bonus was paid out

(ii) What procedures (for bonus) exist to verify that the specified criteria were followed?

Procedures	2013/14	2014/15	2015/16
Followed	*There was no Board of Directors appointed at the time. As a result the decision was taken by Executive Committee (EXCO)	No bonus was paid out.	No bonus was paid out.

*The Board of Directors was subsequently appointed but members resigned/did not form a

quorum before it could ratify the decision.

Railway Safety Regulator (RSR)

(1)(a)(i) The organization submits for approval an inflationary increase percentage, based on the benchmarked rate each year and these increases are payable at the start of each financial year in April each year.

(ii) Performance Appraisal for the CEO will be assessed by all the Chairpersons of the Board Committees chaired by the Board Chairperson and organizational performance and key performance areas to arrive at a score which will determine the eligibility for a performance.

(b)(i) Performance contracts are entered into, which include Strategic performance objectives/Key Results Areas, weightings, Key Performance Indicators, Targets, Rating Descriptors, Source of Evidence, Observations and Score Ratings.

(ii)(aa) (bb) (cc) A five point rating scale is used for the Strategic Performance Objectives which determines that an individual who has reached a Level 4 rating (80%- 85%) becomes eligible for a performance bonus incentive. The appraisal indicates that the employee has achieved all the performance aspects of the job and the performance is significantly higher than the expected performance standard.

Ports Regulator South Africa (PRSA)

1(a)(i) The starting salary was approved by Minister of Transport in consultation with cabinet, as the

CEO is appointed by the Minister of Transport in terms of the National Ports Act (12 of 2005) section 34, and thereafter increases were approved by the Regulator (board) as the same percentage annual salary increase as pertains to the staff as a whole.

(ii) The CEO performance is appraised by the Human Resources/ Remuneration Committee of the

Regulator (Board) in terms of an approved performance agreement, and the performance assessment and score is signed off by the Chairperson. If the overall score is above a minimum threshold of 3.1 out of a maximum of 5, a bonus is payable in terms of the Ports Regulator Short Term Incentive Policy which sets out the bonus calculation.

(b)(i) The CFO checks the performance bonus calculation and it is captured on the payroll and the

CFO and CEO approves every pay-run before payment as the CEO is the accounting officer as per the Ports Act. This is verifiable from signed pay-run records. The pay-runs and performance system, calculations and records are subsequently audited by internal audit and external audit by the Auditor General.

(ii) No internal or external auditor findings on CEO salary or bonus were incurred in each of the

listed years indicating that the specified criteria were followed in these financial years; (note

that the overall audit outcome in each year is specified in brackets.)

(aa) 2013-14, (unqualified audit)

(bb) 2014-15 (clean audit) and,

(cc) 2015-16 (clean audit)

Airports Company South Africa (ACSA)

(1)(a) criteria were used to approve

(i) salaries and

• Projected inflation i.e. based on CPI as determined by stats SA (CPI refers to the Annual Percentage Change in the Consumer Price Index excluding interest rates on mortgage bonds);

• External remuneration market analysis (Executive Remuneration Survey and Comparison Ratio Report);

• Supporting variables such as capability and performance; and

• Company financial affordability.

(ii) bonuses,

• The incentive remuneration policy and scheme rules of the company, a matter falling inside the discretion of the Board of Directors.’ - The CEO performance contract and assessment rating as concluded by relevant members of the Board of Directors;

• The Company’s key performance framework score card approved by the Board of Directors;

• The On-target bonus percentage which is 50% of the CEO’s annual salary.

(b) procedures exist to verify that the specified criteria were

(i) used and (ii) followed in the (aa) 2013-14, (bb) 2014-15 and (cc) 2015-16 financial years;

• An internal audit is conducted on an annual basis prior to the payment of incentive remuneration to ensure compliance with company policy and scheme rules;

• The remuneration increase and bonus payment schedule is signed-off by relevant authorized company officials

Air Transport Navigation Systems (ATNS)

1(a) The criteria within the Company’s Performance Management and Short Term Incentive Policies were used to determine the eligible rate.

The application of the criteria is audited by an External Auditing Company, every financial year.

South African National Roads Agency Limited (SANRAL)

1(a) criteria were used to approve

(i) salaries

• The Board uses comprehensive Market Surveys to determine the appropriate level for each pay grade, with a minimum and maximum per grade. The grade and adjustments includes consideration for inflation (including medical aid inflation), scarce skills, qualification and experience. Individual pay adjustments are based on performance or merit ratings.

(ii) bonuses

The current SANRAL Short Term Incentive (STI) policy, was introduced and approved by the SANRAL Board in 2012, after the pilot in 2011. This policy specifically abandoned the subjective discretionary bonus regime used since 1998. The policy takes the following principles into account:

a. The organisation as a whole has to perform above a specified minimum in terms of the Annual Performance Plan, in order to be eligible.

b. An individual has to score at least a 3 (5 point scale) merit rating to be eligible for a bonus

c. Four tiers of measurable performance was identified: Organisation, Region, Cluster and individual.

d. Each region and cluster has to perform above a specified level, per their identified measurable criteria, in order for that region or cluster to qualify for a score in that tier. The criteria is directly linked to the SANRAL strategic objectives.

e. Each grade participates in various weighting on the tiers depending on their opportunity to influence the tier.

This formula and all the supporting documentation or proof to determine the scores for each performance rating is reviewed in detail by Internal Audit before the payment is made. Once payment is made, this is checked against the calculated values for errors. The Auditor General then reviews during their normal annual audit the same process. On every tier, each performance criteria has to comply with the principles of “SMART” criteria, which leaves little room for subjectivity.

Individual performance contracts, which also includes performance criteria, signed annually between each individual and his/her line manager and submitted to HR for recordkeeping. This process is also audited by the AG in great detail. An individual will receive a merit rating, annually, which is then used as follows:

a. Adjust annual salary (also formula based), effective from 1 March each year.

b. Included in the formula to determine STI bonus, which is paid after the Annual Financial Statements and Performance information is signed off by the AG, normally in September.

(b) procedures exist to verify that the specified criteria were (i) used and (ii) followed in the (aa) 2013-14, (bb) 2014-15 and (cc) 2015-16 financial years;

The processes are audited internally and externally by the AG.

Reply:

The department has not paid out any reimbursements for Mr. Esethu Hasane for the:

1. Cell phone and (b) Data, for the financial years:
2. (aa) 2014-15

(bb) 2015-16, and

(ii) since 01 April 2016 to date.

(c) The travel claims for Mr. Esethu Hasane for the:

(aa) 2014-15 Financial year

Date of Reimbursement	Purpose of the claim	Amount
28 August 2014	Parliamentary session	R141.62
28 August 2014	Parliamentary session	R1,120.12
28 August 2014	Budget Vote	R223.16
19 March 2015	Commonwealth 2022 Bid Lodgement-London	R4,731.14
TOTAL		R6,216.04

(bb) 2015-16 Financial year

Date of Reimbursement	Purpose of the claim	Amount
25 September 2015	Rugby world Cup 2023 Briefing Sessions & meetings	R4,470.68
25 September 2015	Official kilometers travelled for the month of August 2015	R2,777-76
19 November 2015	Official kilometers travelled for the month of September 2015	R5,041.28
07 December 2015	Official kilometers travelled for the month of October 2015	R6,802.32
07 December 2015	Rugby World Cup Semi-Finals- London	R9,365.91
17 March 2016	Official kilometers travelled for the month of November 2015	R6,354.43
17 March 2016	Official kilometers travelled for the month of December 2015	R2,452.68
TOTAL		R37,265.06

(ii) Since 01 April 2016 to date

Date of Reimbursement	Purpose of the claim	Amount
19 May 2016	Official kilometers travelled for the month of April 2016	R2,268.17
19 May 2015	Rural Sport Development Programme-Umtata	R388.12
19 May 2015	Official kilometers travelled for the month of March 2016	R973.43
17 June 2016	Rural Sport Development Programme-Umtata	R373.74
17 June 2016	Official kilometers travelled for the month of May 2016	R2,282.84
19 September 2016	Accompany Minister to Rio Olympics 2016	R9,097.26
22 September 2016	Accompany Minister to Rio Paralympics 2016	R8,096.70
27 October 2016	Official kilometers travelled for the month of July 2016	R1,758.19
27 October 2016	Official kilometers travelled for the month of September 2016	R2,451.48
27 October 2016	Official kilometers travelled for the month of August 2016	R2,328.57
TOTAL		R30,018.50

Reply:

(a) No funds have been allocated for the construction of permanent new police stations in Gauteng for the current financial year. However, parkhomes have been placed at four police stations namely Ennerdale, Garankuwa, Boschkop and Hercules to alleviate the accommodation challenges in the province.

(b) None.

Reply:

It must be noted internal or external forensic investigations within the State-Owned Companies that report to me mainly relate to operational matters and therefore where relevant, may fall within the ambit of the Board and/or Executives of the SOC.

In this regard, it is crucial to note that the Honourable Member’s request has to be considered against provisions of Promotion of Access to Information Act 2 of 2000 (PAIA). The Act has specific provisions that regulate disclosure of the nature of information requested hence the Honourable Member is implored to consider submitting specific PAIA application(s) with relevant authorities to access the information required.

With regard to my Department, I am aware of the following investigations that have been concluded:

No.	Details	Lodged with	Date reported	Status
1.	IT forensic investigation allegations of a possible fraudulent email	DDG: CM	29 August 2014	Investigation concluded in October 2014.
2.	Allegations of maladministration, fraud and corruption	Auditor General	12 Feb 2015	Investigation concluded in August 2015.
3.	Allegations of maladministration, fraud and corruption	Public Service Commission	23 Feb 2015	Investigation concluded in August 2015.
4.	Allegation related to recruitment processes: Junior Technician in IT Unit DD:IM ASD:SPME	DPE Whistle Blowing Box	23 Oct 2015	The investigation was concluded in November 2015.
5.	Allegations of possible irregular expenditure – Photo-copiers	Acting Director-General	March 2015	Investigation concluded in August 2015
6.	Allegations of irregularities with regards to bursary awards	Acting Director-General	March 2015	Investigation concluded in August 2015
7.	Allegations of possible irregular expenditure - Korwe	Acting Director-General	March 2015	Investigation concluded in August 2015
8.	Allegations of irregularities with regard to petty cash replenishment	Acting Director-General	March 2015	Investigation concluded in August 2015

 

Reply:

1. (a) What was the total value in rand of Old Mutual's sponsorship for Athletics South Africa's (ASA) licence numbers for races in the past three financial years,

R5,000,000.00 – as from 2016

b) for what period was each of the sponsorships allocated and

2016 and 2017

(c) what is the name of each board member and/or official of ASA that secured the sponsorships;

Mr Aleck Skhosana and James Moloi

(2) whether the specified board members and/or officials of ASA were awarded

(a) Commissions and/or

No commission were awarded

(b) any other incentives for securing the sponsorships; if not, what is the position in this regard; if so,

No other incentives to be awarded and no future prospects of incentives or commission to be awarded

(i) what amount in commission and/or other incentives did each of the board members and/or officials receive in each of the specified financial years and

None

(ii)What are the further relevant details in this regard?

None

Reply:

(a)(b) Deloitte was contracted to serve as a member of the Ministerial Task Team (MTT) and to work alongside the Department of Justice and Constitutional Development (DoJ) to investigate all the cases reported to the Department and through the media for the duration of the first phase of the MTT.

Deloitte was not contracted to work on the second phase of the forensic investigation, the services of the forensic team from the DoJ have been rendered pro bono, except for the payment of the subsistence and travelling allowances as and when required. It made a sound financial sense to use the human resources drawn from a Government Department such as the DOJ to complete the work rather than to enter into a new financially binding contract with a service provider for another six (6) months.

Reply:

The department spent as follows for advertising:

1. -16 Since 1 April 2016

Africa News Network 7 Channel R0.00 R0.00

SA Broadcasting Corporation

• Television channel R1 569 408.15 R0.00
• Radio channel R0.00 R0.00

National Commercial Radio Stations R0.00 R0.00

Community

• Television R0.00 R0.00
• Radio Stations R60 310.00 R0.00

Reply:

(a) Arrests	(b) Successful prosecutions (found guilty)
(i)(aa) 2014-15	(i)(bb) 2015-16	(iii) 1 April 2016 to 31 Oct 2016	(i)(aa) 2014-15	(i)(bb) 2015-16	(iii) 1 April 2016 to 31 Oct 2016
22	28	43	5	17	5

Reply:

The Micro Agricultural Financial Institutions of South Africa (MAFISA) is a scheme that provides loans to smallholder farmers in the agriculture sector. The loans are provided through intermediaries and not directly by the department. To get the loan, the applicant must meet a set of requirements. The applications for funding are handled by intermediaries and not by DAFF. The intermediaries report to the Department on a monthly basis.

From the inception of MAFISA to date a total of R 408 million has been loaned out to smallholder farmers. Of this amount a total of R187 million has been repaid. The amount repaid account for 45.8% of the total disbursements (repayments are linked to the farming activity e.g. cattle farmers take a longer time to repay whereas cash crop farmers repay in a short period depending on the income cycle).

(b) The repayment timeframe of the loans differs according to the commodity financed. With the effect of drought some clients need extended time to fully settle their loans and this has an impact on repayments. The Department has been involved in discussions with intermediaries on how to handle the situation so that the smallholder farmers can continue to produce on their farms despite the effect of drought.

MAFISA funds are not supposed to be repaid to National Treasury within a given timeframe; they revolve for purposes of continuously granting loans to smallholder farmers. The recalling of MAFISA funds was not because DAFF failed to repay funds to National Treasury. The reason was that the introduction of the Wholesale Finance Facility (WFF) led National Treasury to conclude that it is better to phase out MAFISA and therefore recalled MAFISA funds. Practically the target market of the WFF is not the same target market served by MAFISA.

Reply:

The Strategic Fuel Fund compiles its Annual Financial Statement in accordance with the International Financial Reporting Standards (IFRS) that prescribes that an entity must account for transactions not only on a cash basis but also on an accrual basis.

Therefore the Transfer in question is an accrued expense as a result of the application of the provisions of Section 3(A)(c) of the CEF Act applicable to the sale of Strategic Stock and that was yet to be transferred to the Equalisation Fund.

Reply:

1. The information is provided in the table below:

CUSTOMER	CRUDE OIL (BASRAH)	(b) CRUDE OIL (BONNY)	(c)TOTAL REVENUE (US$ )
	Volume sold (bbls)	Volume sold (bbls)
Venus/Glencore	-	3 000 000	$90 224 970
Vitol	3 000 000	-	$78 606 000
Taleveras	2 000 000	2 000 000	$112 000 000
TOTAL		$280 000 000

2. Yes all the payments for the products sold have been made.

Customer	Payment receipt date
Venus/Glencore	04 March 2016
Vitol	11 March 2016
Taleveras	25 February 2016

3. The contract review currently underway will assist in determining the options for SFF.

Reply:

1. (a) Yes. Two staff members were suspended.

         (i) One staff member was suspended for 29 months and the other for 33 months.

         (ii) Cost of remuneration was R1 342 291.59 and R1 026 838.97 respectively.

(b) No, since none were implicated.

2. The matter of legal practitioners who could be implicated was referred to the Special Investigating Unit (SIU) and HAWKS for further investigation.

3. (a) The Department is the current legal owner of the farms.

(b) Some of the cattle have been sold in order to keep operations going on the farm (purchase of cattle feed, licks, vaccine, fixing of tractor, maintenance of fences, paying wages and burning of firebreaks). Apart from the cattle, movable assets such as farm equipment, household furniture and appliances were accounted for and the assets are still on the farm except for one vehicle that was taken for repairs by the previous caretaker and has not been returned to the farm.

(c) Currently, there are two families of labour tenants occupying the farm houses, namely Mtshali and Mabaso families, who are also in control of the movable assets.

4. Yes, on 27 May 2013, when the farm was handed over from the curator to the Department, all movable assets were accounted for and are still on the farm except for one vehicle that was taken for repairs by the previous caretaker and has not been returned to the farm. The latest inspection was done on 24 August 2016 and all assets were accounted for. The Department will institute legal action against the caretaker for the vehicle since negotiations for the return of the vehicle have failed. The assets are available for inspection on the farm.

5. No movable assets were sold except for cattle to continue operations on the farm. The amount received was R443 825.82 paid over to the curator.

Reply:

1. The question posed by the Honourable Member was answered during the Oral Questions session on 16 November 2016.

For the record, herewith reply provided:

Yes, government through its law enforcement agencies of the security cluster knows the context and the actors involved.

Government has positioned education as one of its apex priorities, and the issues raised by students are genuine and deserves the support of all of us.

However, in the right to protest, just like any other right, has obligations; it is not unfettered.

Section 36 of our Constitution provides for limitation of rights.

We thereof must condemn the violence and wonton destruction of property that we have witnessed as it is setting back the country and is impacting negatively on our planning trajectory and will be felt by many generations to come.

(a) The genuine struggle of students has been hijacked by certain NGOs who come under the guise of “humanitarian support” while they are wolves in sheep skin. In addition, certain political parties here have become opportunists and used this noble struggle for their narrow political agendas.

(b) Students have been offered various forms of “humanitarian support” in the form of funds, refreshments, logistic and legal assistance amongst other things, exploiting genuine struggles

The security services of this country have stabilised the situation in institutions of higher learning. Lectures were completed and exams are underway in some institutions. The criminal justice system is also processing those students who were arrested.

Education is a societal matter. Whatever difficulty and challenges that we are confronted with, we must know that these are not insurmountable. As the Freedom Charter taught, we must be in a position to sit down and resolve these through peaceful negotiations.

2. As per the doctrine of intelligence tradecraft, operational matters and plans are not discussed.

Reply:

1. The Land in Ward 30 Ten Rooms informal settlement situated on P52 and P88 of the farm Rietfontein 485JQ, jurisdiction Madibeng Local Municipality, belongs to the Department of Public Works (DPW).

2. No. The Department of Rural Development and Land Reform does not deal with land administered by the Department of Public Works, nor was it approached for assistance in this matter.

Reply:

Honourable van Dalen is requested to direct the question to the Minister of Public Enterprises as the information requested belongs to Eskom which reports to the Minister of Public Enterprises.

Reply:

(1) Yes, Management is aware of the incident that took place on 01 April 2016 between inmates (perpetrator details furnished) and (victim details furnished)

(2) Yes, a departmental investigation was instituted.

(2)(a) N/A

(2)(b) The Investigation was concluded on 28 April 2016.

(2)(i) The nature of injury according to medical register G336 entry (2016/04/01) ref (50/16) inmate (victim details furnished) suffered deep laceration on his forehead to the nose.

(2)(ii) It was evident that inmate (perpetrator details furnished) has committed a disciplinary infringement as stated by Correctional Services Act, Act 111 of 1998, as amended and Section 23(1)(h) by committing an assault on a fellow inmate. The investigation recommendation was that disciplinary action be taken against the perpetrator.

(3)(a) The victim was taken to maximum correctional centre hospital for medical treatment and he was assisted to open a criminal case against the perpetrator.

(3)(b) The perpetrator is currently undergoing psychiatric sessions for unacceptable behaviour. Further interventions will follow after the recommendations by the Psychologist and the Case Officers. The search for unauthorized items has also been intensified, supervisors are promoting the maintenance of security awareness at centre level and Management functionaries must inculcate security awareness in all officials by means of a scheduled programme (daily/weekly/monthly) in order to ensure that every official realizes the importance of his/her role in ensuring the safe custody of prisoners. Lastly, identified tendencies/frequencies must be approached in a spirit of participative management.

(3)(c) The Case Management Committee degraded the privileges of the perpetrator from B category to C category with applicable restrictions of amenities.

Reply:

(1) Currently there are two families of Labor Tenants that are using the farm houses namely, Mtshali and Mabaso)

(2)(a),(b),(c) Since the farm was returned to the state no members of the Sewpersad, Armmarchand, Roshen and/or Nersha families have benefited in any way.Prior to the farm being forfeited to the state, it was occupied by the Sewpersad, Armmarchand, Roshen and Nersha families. They benefited to the extent of occupation only. The Department is not aware of any financial benefits from operating the farm and does not have access to their financial statements.

(i), (ii) Falls away.

(3) (a) Total cost to the Department was R36 999 732.82

(b) - Purchase price for Land – R27 244 556.00

- Total Livestock costs- R 6 136 400.00

- Agricultural implements- R 574 500.00

- Developmental costs- R 2 500 000.00

- Conveyancing costs - R 100 451.00

- AFU costs- R 443 825.82

Reply:

1. There is no limit on the number of times funding is allocated to a small community print media project through the Media Development and Diversity Agency (MDDA). Funding is allocated after a detailed assessment has been conducted on the basic needs of the applicant and a situational analysis by the MDDA. Consideration is taken based on available budget in each financial year.

 a) There is no limit on the number of times funding is allocated to a small community print media project through the Media Development and Diversity Agency (MDDA). The current funding cycle is allocated to cover a period of 12 months, however the grant agreement is signed to cover 18 months in order to allow ample time for reporting, capacity building and compliance.

 b) Details are covered in the grant in aid agreement and a sample of an existing agreement can be made available on request. Funding is allocated in tranches to ensure compliance and monitoring.

 c) Projects that are recommended for additional support must have demonstrated good management practices and have complied with the previous grant agreement. Monitoring is an ongoing process taking place in various forms, including desktop and telephonic assessment, validation of reported information and site visits.

2.

a) Yes, the MDDA has in instances in the past five financial years allocated more funding to small community print media projects than what the applicants requested.

b) Yes, the MDDA has in instances since 1 April 2016 allocated more funding to small community print media projects than what the applicants requested.

  (i) The MDDA Board considers and approves additional support to that requested by the project based on an in depth assessment of the needs of the applicants, and taking consideration amongst others the socio economic challenges of the applicant.

(ii)

(aa) For Q1 and Q2 of 2016/2017, the MDDA did not allocate more funding to the small community print media projects than what the applicants requested. However, the Board approved increases to the recommended budgets submitted by the project team in the following cases: Seipone News, Ikhwezi News, Seipone Times, Glimpse Magazine, Disability Magazine, Amandla Magazine, and Lekunutu News. The Board approved these increased amounts based on needs assessment during adjudication.

(bb) The amounts (aaa) requested and (bbb) allocated and (iii) motivation for the variance in each case are provided in the table below.

	Project Name	District Municipality	Province	Amount Requested (aaa)	Amount Approved (bbb)	Board Motivation for the variance in each case (iii)
Small Commercial (Strengthening)	Seipone News	Capricorn District	Limpopo	R1 306 000	R 663 400	Include stipends for 2 journalists
Small Commercial (Strengthening)	Ikhwezi News	OR Tambo District Municipality	Eastern Cape	R645 695.04	R 557 312	Include stipends for 2 journalists
Small Commercial (New)	Seipone Times	Thabo Mofutsanyane District	Free State	R818 000	R 659 600	Include stipends for 2 journalists
Small Commercial (New)	Glimpse Magazine	Ngaka Modiri Molema District	Northwest	R1 307 340.01	R 414 176	Include stipends for 2 journalists
Community Print (Strengthening)	Rise & Shine Disability Magazine	Buffalo City	Eastern Cape	R758 430	R 427 700	Include stipends for 2 journalists
Community Print (Strengthening)	Amandla Magazine	City of Cape Town	Western Cape	R1 495 000	R 547 000	Include Social Media Platform @ R12,000 requested include Reading Groups/Amandla Forum (the project to choose to implement any) @ R120,000
Community Print (New)	Lekunutu News	Waterberg District	Limpopo	R1 056 600	R 467,561.64	Include stipends for 2 journalists
Small Commercial Print (New	Ganyisa	Dr Ruth Mompati District	North West	R778 6000	R536 600	Approved as recommended
Small Commercial Newspaper (New)	KZN Community Newspaper	City of Ethekwini	Kwazulu Natal	R 1 582 620	R 843 000	Approved as recommended
Community Print (New)	Malatsi Media	City of Tshwane	Gauteng	R 2 000 000	R 700 000	Approved as recommended
Small Commercial Newspaper (Strengthening)	Winelands Echo	Cape Winelands District	Western Cape	R1 219 524.74	R 723 696	Approved as recommended
Small Commercial Newspaper (Strengthening)	Nthavela News	Capricorn District	Limpopo	R1 169 300	R 765 600	Approved as recommended

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

In terms of a detailed breakdown of the Department’s budget for universities in terms of the size of each component of the (a) block grants, (b) earmarked grants and (c) any other relevant grant awarded (i) in each of the past 10 financial years, please refer to the 2015 Public Report on the State Budgets for Universities (Annexure A). As seen in the report, the state budget for universities, including allocation for the National Student Financial Aid Scheme (NSFAS) increased from R9.878 billion in 2004/05 to R30.338 billion in 2015/16.

(ii) For the financial year starting 1 April 2016, the following table reflects the updated budget from National Treasury for 2016/17 as per the updated Ministerial Statement issued in July 2016 (Annexure B). As seen in the table below, the block grant increased from R19.561 billion in 2014/15 to R25.3 billion in 2017/18, earmarked grants increased from R4.589 billion in 2014/15 to R6.241 billion in 2017/18, and grants to institutions such as NSFAS increased from R3.914 billion in 2014/15 to R7.551 billion in 2017/18.

see the link for the table: http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW2628TABLE.pdf

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 2628 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE:

Reply:

1. (a) (i), (ii), (iii), (iv) and (v) The MDDA publishes advertising revenue generated by each small community print media project which is supported by the Media Development and Diversity Agency (MDDA) via the Milele Group and the Government Communication Information System (GCIS) in its annual report. These are available on request. The MDDA does not have direct access to detailed advertising income until it receives annual reports from media buyers and the GCIS. To provide a comprehensive breakdown per community print project requires a survey in order to give justice in responding to this question as we do not have readily available information within the specified time.

(b) Information on advertising revenue generated by each small community print media project which is supported by the MDDA via the Milele Group and the GCIS is consolidated on an annual basis for publication in the MDDA annual report. The MDDA does not have direct access to detailed advertising income until it receives annual report from media buyers and the GCIS. To provide a comprehensive breakdown on advertising revenue generated per community print project since 1 April 2016 requires a survey in order to give justice in responding to this question as we do not have readily available information within the specified time.

2. (a) Yes, the MDDA has succession plans in place to assist small community print media projects in mitigating instabilities affecting the delivery of planned targets, via established partnerships to capacitate the print sector on content development. These partnerships include arrangements with Soul City, AIP, SAASTA and SEDA, ongoing engagement with the Big4, ongoing engagement with the GCIS on media buying and planned engagement with SALGA and all state organs on media buying.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE:

Reply:

1) The Annual Performance Plan of the DMV for 2015/16, which was adopted by Parliament, set the target of providing 8000 military veterans with access to health care. As of 31st March 2016, 8 264 military veterans were authorised to access health care services adding to a total accumulative number of 14 666 as from the 2013/14 financial year to the 2015/16 financial year. This is the indicator the department reports on in the Annual Report and is aligned with Section 5 (1)(i) of the Military Veterans Act, Act 18 of 2011, which of speaks to “access to health care.” As part of its strategic planning processes the department is discussing other indicators which can be used to measure access to health care.

2): The expenditure incurred is for military veterans who have received the healthcare services.

Reply:

(1) with reference to the summary report which indicates that her department is still busy with investigations of irregular expenditure that occurred in 2015-16 financial year, (a) how far have the specified investigations gone and (b) by what date can a report on the specified investigations be expected;

Response:

(1)(a) The Financial Misconduct Committee of DMV is busy considering each of the incidents. They will be reported to the Accounting Officer for action.

(1)(b) Scopa has given the Department till the middle of January to report on the investigations and consequent management actions taken. The Accounting Officer is aiming to complete these actions by the 15 January 2017.

(2) what steps has she taken with regard to her department’s disregard of the recommendations of the Auditor-General and concerns of the Portfolio Committee on Defence; if not, why not; if so, what are the relevant details;

Response:

(2) I am not aware of what issues the Honourable Member is referring to. However the Portfolio Committee has developed a dashboard of issues for the department to report on and the department is following this plan.

Question (3)

What steps is her department taking to ensure that there is no poor performance with regard to rendering services to the destitute military veterans whilst the officials of the department receive performance bonuses; if not, why not; if so, what are the relevant details;

Response: I have ensured that a full complement of DDGs, a new CFO and an acting DG have been appointed. They have entered into performance agreements to which they are being held responsible.

The department is in the process of reviewing the organisational structure to address capacity issues. In addition to that the department has developed its service delivery model to enhance service delivery.

(4) does her department have a policy to hold officials personally responsible for delinquency or dereliction of duties; if not, why not; if so, what are the relevant details;

Response:

(4) The Department utilises the Public Service Prescripts; Public Service Act, SMS Handbook and Public Service Regulations to hold officials accountable. Regarding Finance and Supply Chain Management the PFMA and National Treasury Regulations are utilised.

(5) how does her department justify the approval of bonuses while there are outstanding performance contracts?

Response: The level 1-12 employees were paid performance bonuses after being assessed by their respective managers and supervisors. The department did not award performance bonuses for SMS Members. By direction of the then Acting Director-General employees were instructed to submit their Performance Agreements. All except one SMS member have submitted Performance Agreement by 1 December 2016.

NW2714E

Reply:

(a) The SABC monitors television audiences in terms of monthly audience share.

(b) Advertising revenues are presented excluding Agency Commission, Credit Notes, and Compensation. The revenues received by the organisation fluctuate according to seasonality and available spend by advertisers.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

(a) NexTV CEO Africa 2016, was an exclusive event that brought together the Anglophone and Francophone markets of Sub Saharan Africa to discuss strategic ventures, regulatory issues and will be a fantastic accelerator for business and for lobby in the broadcasting industry going forward. Minister Faith Muthambi was invited to participate and give a keynote address at the opening session of the two-day summit, where she addressed delegates on the digital television revolution in Africa.

(b) (i) & (ii)

• Ms Basani Baloyi: Chief of Staff;
• Mr Sandile Nene: Special Advisor to the Minister; and
• Mr Nthambeleni Gabara: Assistant Director: GCIS SANews Unit.

(c) (i) R 184 420.44

    (ii) Accommodation: R44 949.50

        Flights: R 121 459.66

        Travel allowance: R18 011.28

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

Response

Question (1):

The department is busy with an employee satisfaction survey in order to identify issues affecting morale amongst employees. The department is also conducting a skills audit to ensure that employees are placed appropriately according to their skills. These will be reported once they are completed.

The newly appointed Acting Director-General has begun a process of interacting with employees to inform them key developments in the department engage in team building and improve morale.

Question (2) Given the reported lack of relevant expertise on skills in the specified report, does her department have a policy regarding the recruitment of senior managers; if not, why not; if so, what are the relevant details;

Response

The Department has a Recruitment Policy and it is implemented in line with Public Service Commission requirements for Public Service Recruitment practices.

Question (3) Does her department have a fair and transparent recruitment policy that prevents patronage and allows capable candidates to be appointed; if not, why not; if so, what are the relevant details

Response

All appointments within the department are done through the Public Service Regulations, Part VII. Procedures for Appointment, Promotions and Termination of Service. Our recruitment policy is transparent and fair.

Question (4): (a) By what date will existing vacancies be filled and (b) what is the cause of the delay in the appointment of permanent director-general

Response

(a) The department is in a process of filling all the posts and priority is being given to the two service delivery branches – Socio-Economic Support and Empowerment and Stakeholder Management. It is hoped this will be completed by the end of the financial year.

(b) The interview and evaluation processes for the appointment of the Director-General was completed. However, due to administrative challenges between DPSA and DMV the process was stalled. It is hoped that this post will be permanently filled soon.

Reply:

1. Brand South Africa

2014/15
	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	35	36	15 business 20 economy	29 business 7 economy	R 1 023 666	R 210 257
Board Members	4	8	Business	Business	R 585 067	R 465 491

2015/16
	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	26	53	12 business 14 economy	17 business 36 economy	R 787 680	R 354 074
Board Members	N/A	N/A	-	-	-	-

2. Film and Publication Board

2014/15
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	7	64	7 business	All domestic	R1 394 568	R602 755
Board Members	4	13	4 business	All domestic		R99 885

2015/16
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	9	81	8 business 1 economy	All domestic	R1 533 248	R644 238
Board Members	6	18	6 business	All domestic		R123 396

3. Independent Communications Authority of South Africa

2014/15
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	18	59	13 business 5 economy	59 economy	R 637 984	R 399 444
Board Members	29	40	29 business	40 economy	R 806 054	R 254 697

2015/16
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	35	100	20 business 15 economy	100 economy	R 764 140	R 536 455
Board Members	14	26	14 business	26 economy	R 617 475	R 203 923

4. Media Development and Diversity Agency

2014/15
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	0	90*	-	Economy	-	361,839.38
Board Members	0	53*	-	Economy	-	249,010.22

*These numbers are subject to verification

2015/16
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	2	82*	Economy	Economy	65,663.74	328,164.42
Board Members	1	91*	Economy	Economy	61,304.72	366,308.68

*These numbers are subject to verification

5. South African Broadcasting Association

2014/15
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	35	36	Business X 15 Economy X 20	Business X 29 Economy X 7	1,023,666	210,257
Board Members	4	8	Business	Business	585,067	465,491

2015/16
Delegation	International trips	Domestic trips	Class International trips	Class Domestic trips	Cost International trips	Cost Domestic trips
Senior Managers	12	179	Business	Business x 60 Economy x 119	1,091,146.67	1,971,593.75
Board Members	0	33	N/A	Business x 32 Economy x 1	N/A	312,996.73

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

(a) Radio audiences are measured quarterly and not monthly. There was a significant change in radio audience research methodology during the period in question (from previous SAARF RAMS to BRC RAM) and the findings are thus not comparable. The following graphic was derived from the first BRC RAM research released in August 2016.

 

(b) Advertising revenues are presented excluding Agency Commission, Credit Notes, and Compensation. The revenues received by the organisation fluctuate according to available spend by advertisers.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

The SABC has not provided any funding assistance and sponsorships to the above-mentioned entity.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DEPARTMENT OF COMMUNICATIONS

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

Due to the security implications of this question, a response can only be provided in a closed session of the Joint Standing Committee on Defence.

Reply:

(1) What steps has she taken to (a) monitor and (b) correct (i) the tangible capital asset register (ii) irregular expenditure (iii) organogram and (iv) reported failures as indicated by the Auditor-General in respect of the corporate services branch of her department;

Response:

(i) Assets Management:

(a) Monitoring: A permanent assets management unit has been approved by the Executive Committee. This unit will ensure that all assets of the department are fully accounted for all the times.

(b) Correction: During 2015/16 Financial Year, the assets register was reconstructed and reconciled with annual financial statement. The remaining item is the finalisation of the verification process which is currently at 80% completion.

(ii) Irregular expenditure:

(a) Monitoring: The registers have been compiled for each of the years and these are reconciled to the annual financial statements.

(b) Correction: The Irregular and Fruitless and Wasteful expenditure dates back to 2013/2014 financial year. The Financial Misconduct Panel has been formed and approved by the Accounting Officer. The Panel has been tasked to expedite the investigations. The timeline given by Executive Authority is 15 January 2017.

(iii) Organogram

(a) Monitoring: The organogram is closely monitored by HR with continuous engagements with branches concerned.

(b) Correction: The ideal organogram has been developed by the Department and continuous engagements with DPSA are in place.

(iv) Reported failures by AGSA

General failures as noticed by AGSA are as follows:

• Percentage of staff attending training
• Lack of consequence management to staff without Performance Agreements.
• Vacancy Rate on funded posts
• Non adherence to 30 days payment rule

(a) Monitoring: All of the above are presented at monthly management meetings. Where gaps may exist, action plans are put in place to correct such.

(b) Correction: The skills audit will be completed by the end of quarter four. All SMS performance agreements except for one, are in place. With the current funded structure where posts favours administration, a rebalancing exercise is being undertaken by the Department to address capacitation of Service delivery branches. This is being done whilst a consultative process is in place with DPSA. The issue of 30days payment rule is being addressed by re-looking and changing the invoice handling exercise.

Reply:

Details as to the member’s medical condition cannot be disclosed as it would be a violation of doctor and patient privilege.

Reply:

The disclosure of employee remuneration is against employee regulation. Any payments made in the current financial year will be disclosed in the 2016/17 Annual Report.

MR NN MUNZHELELE

DIRECTOR GENERAL [ACTING]

DATE:

MS AF MUTHAMBI (MP)

MINISTER OF COMMUNICATIONS

DATE

Reply:

Question 1: Whether, in respect of the AG’s 2015-2016 Annual Financial Report and with specific reference to her department, and in view of the general perception that public servants find it easy to be involved in fruitless litigation cases mainly because the State funds the cases and not the individuals behind them, there is a policy regulating the management of litigious matters of her department; if so, who is responsible for litigation processes within the department?

Answer 1:

Yes, the department has a “Policy on the Management and Administration of Civil Claims (Including Legal Representation and Legal Opinion) in the Department of Military Veterans”. The Director Legal Services is responsible for litigation processes within the department.

Question 2: How does her department account for the amount of R205 million regarding potential liability?

Answer 2: It is reported as a contingent liability in Note 16.1 to the 2015/16 Annual Financial Statements.

Question 3: How many court cases is the DMV involved in?

Answer 3: The DMV is involved in eight court cases; Of the eight cases, two relate to labour relations and six are contract related.

Question 4: Whether the department does conduct a risk profiling of the cases to assess chances of success?

Answer 4: Legal Services does determine the merits of each case and also attempts to mediate a matter in order to resolve it amicably without having to resort to litigation. This is done in conjunction with the State Attorney, where applicable.

Question 5: Whether there is a cost benefit analysis done when cases are allowed to go to Court, if so, what are the relevant details, if not, why not?

Answer 5: Yes a cost benefit analysis is done for all cases involving the department. The cost benefit analysis is also addressed in the mediation process where the department attempts to settle matters amicably without resorting to court. When a letter of demand is received the process starts to resolve the matters without court processes. Where summons was issued and parties have entered into a settlement agreement, the settlement agreement is then made an Order of Court. It is only in exceptional cases where matters are referred to Court for a decision.

Reply:

Response

The matter is sub judice and therefore no further comment is possible at present in terms of Rule 89 of the National Assembly which says, “No member may reflect upon the merits of any matter on which a judicial decision in a court of law is pending.”

(2) whether a certain person (name furnished) or any official of her department involved in the alleged irregular contract has been called to any disciplinary enquiry given the devastating consequences of the dispute; if not, why not; if so, what are the relevant details;

Response

The Public Service Commission is busy with an investigation into this contract and the processes followed in awarding it. DMV is awaiting the outcome of the investigation.

(3) whether she has found that corruption might be the real reason behind the dispute and these serious allegations levelled against a certain person (details furnished); if so,

Response

DMV is awaiting the outcome of the Public Service Commission investigation and will act on its recommendations.

(4) has her department investigated these serious allegations of corruption; if not, why not; if so, what are the relevant details;

Response

DMV is awaiting the outcome of the Public Service Commission investigation and will act on its recommendations.

(5) whether her department provided protection for the whistle-blower in this matter as provided for in the Protected Disclosures Act, Act 26 of 2000; if so, (a) what steps has her department taken to ensure that the whistle-blower is not targeted and (b) what are her department’s plans to fight corruption? NW2708E

Response (5)

The investigation into the Zeal contract arises from internal processes of the department and steps I took as the Executive Authority in October 2015, after the matter was brought to my attention, to request the Public Service Commission to begin an investigation.

The Public Protector has confirmed in writing that an official of the DMV lodged a complaint to their office on 3 June 2016. As this disclosure was made long after I asked the Public Service Commission to investigate the matter, I am taking advice as to whether this can be considered a protected disclosure in terms of the Protected Disclosure Act of 2000.

Reply:

(1) (a) MVHPA is the Military Veterans Health Professional Association, a network of service providers which provided military veterans with access to primary healthcare services prior 2014.

(b) The Department of Military Veterans signed a Memorandum of Understanding with Military Veterans Health Professional Association (MVHPA) on the 23rd May 2013. This was followed by a partnership between DMV, South African Military Health Services (SAMHS) and MVHPA on a program to conduct healthcare assessment for all qualifying military veterans in order to obtain their disease profile as well as provision of related treatment and referral for appropriate level of healthcare. An agreement existed between MVHPA and SAMHS but no Service Level Agreement was in place to formalize the arrangement between DMV and MVHPA and hence the finding by the Auditor-General that the relationship was illegal, which rendered all payment transactions made to MVHPA irregular.

However the service still had to be rendered until another service provider was appointed.

Question (2)

What is her department’s position with regard to the perception of double standards on how it deals with perceived or actual irregular service provider contracts, given the dispute on the current service provider contract that is currently in court;

Response (2): The question refers to matter that is currently in court and is consequently sub judice. In terms of Rule 89 of the National Assembly, “No member may reflect upon the merits of any matter on which a judicial decision in a court of law is pending.”

Question (3)

whether she has found that there are personal relationships between theowners or managers of the company and current senior managers of (a) her department and/or (b) her Ministry; if so, (i) what is the nature of the relationship and (ii) has this been disclosed in any way;

Response (3):

No personal relationships have been disclosed and the department is not aware of any. The department is awaiting the outcome of a Public Service Commission investigation into this matter.

Question (4)

(a) what amount was paid to the MVHPA and (b) when was the last payment made to them;

Response (4):

(a) Total amount paid is R14 883 532.00. (b) The last payment was made on 17 October 2014.

Question (5)

whether she has found that there are military veterans who might have died as a result of lack of access to health care services; if not, what has been done to investigate whether the lack of access to health care contributes to the deaths of military veterans; if so, how many military veterans have died as a result of lack of access to health care services? NW2711E

Response (5):

The Department entered into an MoU with SAMHS to afford military veterans access to health care. The department is not aware of any cases where Military Veterans have died as a result of lack of access to health care services. If the honourable member knows of such cases he is encouraged to report them to the Minister.

Reply:

At the end of 2014/15, the Safety and Security Sector Education and Training Authority (SASSETA) had an over commitment of R292 million and an operational deficit of R174 million. There were also serious problems regarding non-compliance with the Skills Development Act in the awarding of Discretionary Grants. As part of the administration process, policies and standard operating procedures were developed to govern the awarding of Discretionary Grant funding. As a result, SASSETA only began to implement most of its Discretionary Grant awards in the last two quarters of 2015/16, and as a result most of the learners will only complete their courses in 2016/17.

a) 47 Grants were awarded.

b) The following institutions were awarded grants:

• Mopani South East TVET College
• Department of Defence in partnership with the Tshwane South TVET College
• Department of Defence in partnership with the Northlink TVET College
• Department of Correctional Services
• Umfolozi TVET College
• Department of Justice and Constitutional Development
• National Prosecuting Authority
• Umgungundlovu District Municipality
• Independent Police Investigative Directorate
• Majuba TVET College
• NPA with Kalideen Management Services (Pty) Ltd as the accredited training provider
• Empower Training Services with Enforce as the accredited training provider
• Servest Security (Pty) Ltd
• NPA with Ramazwi Security Services and Training Agency (Pty) Ltd as the accredited training provider
• EEL Protection Services
• Nomaduku Security Services
• Vuco Security and Umgungundlovu Municipality
• OR Tambo District Municipality with PE Traffic College as the accredited training provider
• Department of Justice and Constitutional Development with in house accredited Justice College as the accredited training provider
• Fidelity Security
• Popo Protection Services
• Department of Correctional Services in partnership with North West University
• Mapheto Business Enterprise
• Department of Correctional Services in partnership with North West University
• NPA in partnership with University of Pretoria.
• Romula Security
• Department of Correctional Services with Lesedi Guarding & Training Services as the accredited training provider
• Sharks Protection
• Department of Justice in partnership with University of Pretoria
• Security for U
• SAPS in partnership with University of Pretoria
• Department of Home Affairs
• Various Accredited Institutions of Higher Learning
• Various Public Tertiary Institutions
• University of Pretoria
• UNISA
• National School of Government
• University of Witwatersrand
• University of Witwatersrand
• Various TVETS and at SAPS, DOJ and Home Affairs

c) 1 589 Learners completed their training programmes.

d) The following qualifications were received:

• 1 year NQF
• 3 year NATED Levels to N1 - 3
• 1 year Learnership NQF Level 4
• Service Certificates
• University WIL Service Certificate
• National Certificate Road Traffic Law Enforcement
• University Certificate as a module in post graduate diploma
• Firearm certification in terms of the Firearm Control Act
• Degrees and Diplomas
• National School of Governance Certification
• University Certification in Defence and Security Management
• Diploma in Nursing
• Postgraduate Diploma

COMPILER/CONTACT PERSONS:

EXT:

DIRECTOR – GENERAL

STATUS:

DATE:

QUESTION 2444 APPROVED/NOT APPROVED/AMENDED

Dr BE NZIMANDE, MP

MINISTER OF HIGHER EDUCATION AND TRAINING

STATUS:

DATE: